Dhaka may get assistance from EIF in second phase

FE Report
Bangladesh may get support from the Enhanced Integrated Framework (EIF), a multilateral arrangement for extending assistance to the Least Developed Countries (LDCs), under a new phase of the latter.
The first phase of the EIF is going to expire by the end of this year, without much success in assisting the recipients.
"But the EIF is starting the second phase of the programme from January 1, 2016," said Dr Ratnakar Adhikari, executive director at the executive secretariat of EIF.
"During this phase, the EIF will continue to support poor countries, including Bangladesh, in trade mainstreaming," he added in an email reply to the FE from Geneva.
The new phase of EIF will be officially announced on July 1 in Geneva. Director-General of the WTO Roberto Azevêdo will open the event.  
Currently, the EIF Board is chaired by the Ambassador of Sierra Leone, with Board Members from the LDCs, represented by Bangladesh, Benin and Tanzania.
The donor side is represented by Denmark, Norway and Saudi Arabia. Multilateral agencies like the IMF, ITC, UNCTAD, UNDP, the World Bank and WTO. UNIDO and UNWTO are now observers on the board.
"To better facilitate the EIF Board discussions, Bangladesh was appointed LDC Coordinator, Sweden as Donor Coordinator and WTO as the Agency Coordinator," said Dr Adhikari.
He also said the World Bank has finalised the Diagnostic Trade Integration Study (DTIS) of Bangladesh and it will be released soon. "This will help Bangladesh to avail support from EIF."
When contacted, Amitava Chakraborty, additional secretary of the Ministry of Commerce, told FE that after finalisation of DTIS, it would be easier for Bangladesh to negotiate the aid-for-trade package.
Chakraborty, also director-general of the WTO cell in the Ministry of Commerce, was of the view that finalisation of the country's comprehensive trade policy would also help avail assistance under EIF framework.   
The draft DTIS, in this regard, says a 'neutral trade policy needs to correct not just the anti-export bias but also take due account of consumer interests, since those are linked to welfare'. It also says currently 'distortions affect critical areas that affect consumer welfare, such as medicines and consumer products, and producer interests have tended to dominate over consumer interests'.
Under the Integrated Framework (IF), an earlier version of the EIF, Bangladesh benefited from a project in the leather sector executed by the International Trade Centre (ITC).  Later in November 2009, Bangladesh formally joined the EIF. The National Steering Committee (NSC) was set up and serves as inter-ministerial coordinator on trade issues. The DTIS process began in 2011.
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