Preparing for the upcoming WTO Ministerial Conference
Sunday, 13 September 2009
Ferdaus Ara Begum
The Seventh WTO Ministerial Conference will be held at a time when the world is passing through a crisis which has direct and indirect impact on trade and economic development of LDCs. WTO economists predict a 10 per cent decline of trade and demand across major world economies this year in volume terms. Pascal Lamy, the director-general of WTO, has recently observed that the current global financial crisis threatens to undo economic development achieved by many countries and to erode people's faith in an open multilateral trading system (MTS).
Some countries are introducing protectionist tariff and no-tariff measures and are also taking anti-dumping actions to stimulate growth of domestic goods and services at the expense of imports. These have weakened LDC economies.
The Seventh Ministerial Conference (MC), which was scheduled to be held much earlier, will now be held in Geneva in the end of November. The structure of the 7th MC is different from the earlier MCs in the sense that it will not be a negotiating conference but will be based on three basic principles, full participation, inclusiveness and transparency (FIT). The Doha development agenda may not be the main focus of discussion.
The inaugural session of the 7th MC will be held in the afternoon of Nov 30 at the International Conference Centre of Geneva (CCIG).
The attending ministers will make their general statements in this session. Larger statements may be submitted to the conference secretariat for circulation.
The first day of the conference will be devoted to the review of WTO activities, including the Doha Round. WTO's contribution to recovery, growth and development will be discussed on the second day. Ministers will be allowed to raise specific issues but may not make any formal speech.
The 7th MC may cover eight areas: reports on specific areas, small and vulnerable economies (SVEs); trade debt and finance; trade and transfer of technology; work under Doha paragraph 19 on TRIPS issues; coherence; moratorium on E-commerce duties and TRIPS Non-violation complaints. Accession of some new WTO members like Montenegro, Vanuatu, Samoa is a possibility.
Work under paragraph 19 of Doha (Review of Article 27.3(b), review of implementation of the TRIPS Agreement under Article 71.1, relations of trade-related aspects of intellectual properties and convention of biological diversity, protection of traditional knowledge and folklore etc. may come up for discussion. Meanwhile, LDC Ministerial is scheduled to be held in Tanzania in October and it is likely that these issues will be discussed there with a view to formulating a common LDC position.
A strong committee has been formed for the preparation of Bangladesh's position paper. Duty- free and quota-free (DFQF) market access for at least 97 per cent tariff lines of LDCs, the full implementation of Hong Kong Declaration, preferential rules of origin, addressing the issue of disproportionately affected countries, special priority for LDC in case of services and market access under mode-4 etc are priority issues for Bangladesh.
ADB's review: According to ADB's second global review on Aid for Trade (AFT), smaller economies in Asia improved over the past several decades their total share of world exports slightly from 2.2 per cent to 2.9 per cent in 2008. The global financial crisis has further shaken the foundation of these countries. The report mentioned that while the first wave of the crisis hit industrialised and emerging markets through the collapse of trade channels, and business and consumer confidence, the full shock of the downturn is now rumbling through Asia's LDCs.
Another estimate of ADB says that more than 60 million individuals, who would have been lifted out of extreme poverty in 2009 had the region's trend of high growth rates continued, will remain mired in poverty instead.
The report also mentioned that the collapse of export in terms of both value and % change proved how export pattern has been changed. Export of Bangladesh in 2009 in terms of percentage changed to 10.6 per cent against 12.55 per cent in the 4th quarter of 2008. In some countries like China (-19.7 per cent), India (-24.1 per cent), Malaysia (-22.2 per cent), Thailand (-16.2 per cent), Philippines (-39.9 per cent), Pakistan (-17.9 per cent), Sri Lanka (-10.7 per cent) export had shown negative growth.
LDCs are suffering from chronic infrastructural weaknesses. Trade restrictive measures in the wake of the global financial crisis will make their situation more vulnerable. While preparing for the Seventh Ministerial Conference we need to map out our strategies carefully to face the changed situation. Along with the routine issues, the LDCs should try to get their legitimate share of global economic recovery stimulus to save their exports from further downturn.
The writer is Additional Secretary (R&P) and former ED, SCCI
The Seventh WTO Ministerial Conference will be held at a time when the world is passing through a crisis which has direct and indirect impact on trade and economic development of LDCs. WTO economists predict a 10 per cent decline of trade and demand across major world economies this year in volume terms. Pascal Lamy, the director-general of WTO, has recently observed that the current global financial crisis threatens to undo economic development achieved by many countries and to erode people's faith in an open multilateral trading system (MTS).
Some countries are introducing protectionist tariff and no-tariff measures and are also taking anti-dumping actions to stimulate growth of domestic goods and services at the expense of imports. These have weakened LDC economies.
The Seventh Ministerial Conference (MC), which was scheduled to be held much earlier, will now be held in Geneva in the end of November. The structure of the 7th MC is different from the earlier MCs in the sense that it will not be a negotiating conference but will be based on three basic principles, full participation, inclusiveness and transparency (FIT). The Doha development agenda may not be the main focus of discussion.
The inaugural session of the 7th MC will be held in the afternoon of Nov 30 at the International Conference Centre of Geneva (CCIG).
The attending ministers will make their general statements in this session. Larger statements may be submitted to the conference secretariat for circulation.
The first day of the conference will be devoted to the review of WTO activities, including the Doha Round. WTO's contribution to recovery, growth and development will be discussed on the second day. Ministers will be allowed to raise specific issues but may not make any formal speech.
The 7th MC may cover eight areas: reports on specific areas, small and vulnerable economies (SVEs); trade debt and finance; trade and transfer of technology; work under Doha paragraph 19 on TRIPS issues; coherence; moratorium on E-commerce duties and TRIPS Non-violation complaints. Accession of some new WTO members like Montenegro, Vanuatu, Samoa is a possibility.
Work under paragraph 19 of Doha (Review of Article 27.3(b), review of implementation of the TRIPS Agreement under Article 71.1, relations of trade-related aspects of intellectual properties and convention of biological diversity, protection of traditional knowledge and folklore etc. may come up for discussion. Meanwhile, LDC Ministerial is scheduled to be held in Tanzania in October and it is likely that these issues will be discussed there with a view to formulating a common LDC position.
A strong committee has been formed for the preparation of Bangladesh's position paper. Duty- free and quota-free (DFQF) market access for at least 97 per cent tariff lines of LDCs, the full implementation of Hong Kong Declaration, preferential rules of origin, addressing the issue of disproportionately affected countries, special priority for LDC in case of services and market access under mode-4 etc are priority issues for Bangladesh.
ADB's review: According to ADB's second global review on Aid for Trade (AFT), smaller economies in Asia improved over the past several decades their total share of world exports slightly from 2.2 per cent to 2.9 per cent in 2008. The global financial crisis has further shaken the foundation of these countries. The report mentioned that while the first wave of the crisis hit industrialised and emerging markets through the collapse of trade channels, and business and consumer confidence, the full shock of the downturn is now rumbling through Asia's LDCs.
Another estimate of ADB says that more than 60 million individuals, who would have been lifted out of extreme poverty in 2009 had the region's trend of high growth rates continued, will remain mired in poverty instead.
The report also mentioned that the collapse of export in terms of both value and % change proved how export pattern has been changed. Export of Bangladesh in 2009 in terms of percentage changed to 10.6 per cent against 12.55 per cent in the 4th quarter of 2008. In some countries like China (-19.7 per cent), India (-24.1 per cent), Malaysia (-22.2 per cent), Thailand (-16.2 per cent), Philippines (-39.9 per cent), Pakistan (-17.9 per cent), Sri Lanka (-10.7 per cent) export had shown negative growth.
LDCs are suffering from chronic infrastructural weaknesses. Trade restrictive measures in the wake of the global financial crisis will make their situation more vulnerable. While preparing for the Seventh Ministerial Conference we need to map out our strategies carefully to face the changed situation. Along with the routine issues, the LDCs should try to get their legitimate share of global economic recovery stimulus to save their exports from further downturn.
The writer is Additional Secretary (R&P) and former ED, SCCI