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Way forward beyond MC13 & Bangladesh

Manzur Ahmed | April 30, 2024 00:00:00


Almost two months after the end of the 13th Ministerial Conference (MC13) of the World Trade Organization (WTO), there is still not adequate efforts in the country, as a graduating LDC, to move ahead and look beyond the MC13. Some critical areas need to be pushed up, however.

It is to be noted that MC13 took place in Abu Dhabi, United Arab Emirates (UAE), on 26 February-01 March, 2024. The conference took place with growing divergence among major members regarding some critical issues like Fisheries Subsidies, E-Commerce and Peace Clause concerning Public Stock Holding (PSH). The rise of the plurilateral initiatives was also a matter of concern. Some important issues for the graduating Least Developed Countries (LDCs) were also there.

Looking beyond the outcomes of the MC13, it is important to strive for expediting and ensuring ‘affordable medicine and health care service’ including life-saving drugs and vaccines must be made available for all specially for the poor and low-income people around the world. The WHO-WIPO-WTO Platform, NGOs and other global institutions and UN bodies must expedite global policy cohesion by adopting appropriate Intellectual Property Rights (IPR) measures ensuring sustainable production and supply of ‘affordable medicine and health care service’ including life-saving drugs, vaccines as well as other support equipments.

On the issue of WTO Dispute Settlement, Bangladesh may call for reconstitution of the Appellate Body as under: (a) Nominations of members for the constitution of the Appellate Body following the procedure to appoint WTO DG; (b). Approve the nominations for the membership of the Appellate Body in the WTO General Council Meeting passed under negative consensus.

WTO General Council should continue negotiations for an agreement on the necessary rules to build trust in the procedures and operation of the Appellate Body for adoption by the subsequent WTO Ministerial Conference.

Bangladesh should remain integrated with mainstream global trade regimes by joining: (a) WTO Plurilateral Agreements including Government Procurement; (b) the plurilateral agreement adopted in MC13 on domestic services regulation finalised by 70 countries accounting for over 90 per cent of services trade—including the United States, China, and the European Union—aims to reduce unintended trade-restrictive consequences of measures relating to licensing requirements technical standards, and qualification requirements; (c) Joint Initiatives on e-commerce (86 members); (d) E-commerce Capacity Building Framework’ launched by Australia, Japan, Singapore, and Switzerland is a key step to strengthen digital inclusion and to help harness the opportunities of digital trade. The Framework will offer a wide range of technical assistance, training, and capacity building to support the participation of developing countries in the e-commerce negotiations; (e) The Investment Facilitation for Development (IFD) Agreement with support from 123 WTO Members and adopted in MC13; (f) Joint Initiative on MSMEs (91 members); and (g) Joint Multi-Party Interim Appeal Arbitration Arrangement (MPIA) which is an alternative system for resolving WTO disputes that are appealed by a Member in the absence of a functioning and staffed WTO Appellate Body.

WTO members can resort to the use of the MPIA under Article 25 of the WTO Dispute Settlement Understanding, as an alternative mechanism for dispute settlement. The MPIA embodies the WTO appellate review rules and in a dispute between members, it will supersede the previous appeal processes and also apply to future disputes between members. Any member can join the MPIA by notifying the Dispute Settlement Body and a range of members have done so.

The extension of the e-commerce moratorium and its potential economic effects need to be reviewed carefully. Some developing countries argue that the moratorium is detrimental to raising customs revenue. Studies estimate the amount of lost revenue between $280 million and $10 billion per year. On the other hand, developed and many developing countries argue that any extra tariff revenue would be outweighed by negative economic consequences that country would see in the form of higher prices and reduced consumption, which would slow down GDP growth and shrink tax revenues.

To address the gap between these two positions in MC13 Bangladesh may propose that IT products originating from LDCs including Graduating LDCs should be exempted from customs duty as and when applicable until their respective market share of e-commerce exceed the agreed threshold.

The harmonisation of trade regulations and facilitation measures is another are where Bangladesh needs to pay attention.

Mutual Trade Facilitation. To take up a proactive action plan with the trading partners for respective Customs Cooperation Agreement to facilitate mutual trade as envisaged in the WTO Trade Facilitation Agreement and WCO protocols and annexes including gradual harmonisation of customs documentation and clearance procedure for transit and trans-shipment of goods across the borders.

Establishment of mutual Institutional Cooperation. To take up joint action plan for harmonisation of mutual trade rules, regulatory measures and streamline bilateral institutional cooperation in the respective fields including the Central Banks, Customs Authority, Quality and Standards Body and others;

Technical Regulations and Standards. To actively engage with the trading partners to ensure harmonization of TBT and SPS measures and signing of MRA to streamline flow of traded goods and services so that Certificates on Technical Regulations & Standards issued by the respective accredited national bodies are accepted on basis of MRA mutually agreed upon;

Reciprocal Participation in Public Procurements. Bangladesh has kept open its public procurements for foreign participation on MFN basis and in turn Bangladesh should ask for reciprocal treatment from the trading partner countries;

Integration of CMSMEs with Global Value Chain. To boost the process of integration of CMSMEs with the global market and compete with global e-commerce, Bangladesh, Like China, India and Vietnam and others, may strive to set up warehouses and distribution network in destination markets for easy and regular delivery of products to the wholesalers, retailers and consumers.

Manzur Ahmed is Advisor, FBCCI.

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