Graduating LDCs having minimal extension of trade benefits

Little comes out of hard bargains so far about deals on major areas like agriculture, fisheries subsidies, e-commerce moratorium and reform in dispute-settlement mechanism as the WTO ministerial nears its close.
The ongoing ministerial conference of the World Trade Organization (WTO) is getting into the finale today (Thursday) in this Arab city.
There is also a move not to extend the four-day 13th Ministerial Conference (MC13) although extension is not unusual as is evident from some previous ministerial meets when member-countries failed to break the deadlock in final-day negotiations.
On Wednesday, the third-day of the conference, delegates and negotiators were busy doing hectic conversations and discussions to minimise their differences over global trade regime. There had been no visible progress until the filing of the report at 6:00pm in Abu Dhabi.
Though India and some other members are pushing for a permanent solution to public stockholding (PSH) for food security along with some other demands, indication is rife that MC13 may not reach any conclusion on the much-sought-after permanent solution.
In that eventuality, the so-called peace clause will continue, which means an interim arrangement giving flexibility to procurement of grains from farmers at minimum support prices, and building a stockpile will be there.
In the MC12, the first part of the fisheries-subsidy agreement banned the subsidisation of illegal fishing. In MC13, the second part intends to expand the ban on subsidies that contribute to overfishing and fishing-sector overcapacity at large.
Regarding the e-commerce moratorium, European Union (EU) officials reassert their position to continue the cessation on grounds that by imposing customs duties on electronic transmission, digital innovation and activities will be disrupted.
Meantime, hectic efforts of the Least Developed Countries (LDCs) to get extensions of various trade benefits and international-support measures for the graduating LDCs, including Bangladesh, have been subdued by now.
This is reflected in the revised draft 'ministerial decision on WTO smooth transition support measures in favour of countries graduated from the LDC category.' The revised communication was submitted by Djibouti on behalf of the LDC Group before the start of the 13th minister conference here on Monday.
The first message of the revised draft is that graduating LDCs will be eligible to get three years as an extra time after their graduation to adjust with the WTO rules and provisions regarding the dispute-resolution system.
"A Member that graduates from the LDC category shall continue to benefit from the application of the Special Procedures Involving LDCs set out in Article 24 of the Dispute Settlement Understanding for a period of three years after the date on which the decision of the UN General Assembly to graduate that Member from the LDC category becomes effective," reads the revised text.
In the first draft, six years of additional time was proposed.
The Article 24 requires WTO members to give special consideration to LDC members in deciding whether to invoke and pursue dispute-settlement procedures. Those members may request the WTO Director-General or Chairman of the DSB to provide good offices, conciliation, or mediation to help resolve disputes.
Similarly, graduating LDCs will also be eligible for LDC-specific technical assistance and capacity building provided by the WTO for three years after the graduation. In the first draft, the time was six years.
Moreover, graduating LDCs are unlikely to get even three years' flexibility regarding implementing the relevant obligations regarding Agreement on Subsidies and Countervailing Measures (ASCM).
The revised text, however, requests the Sub-Committee on LDCs to continue work on the matter and make recommendations, if any, by December 2024.
An insider says that the WTO members will follow 'due restraint' approach during the three-year period for the graduating LDCs who will not comply with various WTO rules applicable to non-LDCs. In other words, they will not bring any graduating LDC to the dispute-settlement mechanism seeking remedy.
Prof Musatfizur Rahman, distinguished fellow of the Centre for Policy Dialogue (CPD), told FE that the possible outcome of the conference is still unclear.
"It appears that multilateralism will prevail, multilateral trade measures and benefits will also be there," he added. "But, the implementation of these measures and realisations of these benefits will require more bilateral efforts."
In this connection, he mentions that Bangladesh has already taken some steps to move ahead securing its business interests.
State Minister for Commerce Ahasanul Islam Titu, who heads the Bangladesh delegation to the MC13, has already met with a number of trading partners bilaterally on the sidelines of the conference.
Regarding the extension of market access for graduating LDCs, Prof Mustafiz says it is likely that the ministerial decision will follow the stance taken by the European Union (EU) and the United Kingdom (UK).
The EU and the UK have already agreed to continue the existing market- access facilities for three years to any graduated LDC. It means, Bangladesh will enjoy the benefit up to 2029, after having graduated in 2026.

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[The writer is in Abu Dhabi at the invitation of the Secretariat of the World Trade Organization (WTO) and Friedrich-Ebert-Stiftung (FES), Geneva.]