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Implications for Bangladesh in 13th WTO ministerial conference

Published : Friday, 22 March, 2024 at 12:00 AM  Count : 932
Sauid Ahmed Khan
Amidst the flurry of activities regarding international trade, the 13th World Trade Organization Ministerial Conference (MC13) was an event of great expectation and intense scrutiny. As an island nation whose burgeoning economy is heavily reliant on foreign commerce, Bangladesh may considerably benefit from the decisive decisions adopted inMC13. Policymakers and stakeholders from Bangladesh followed the proceedings with rapt attention, thinking about the possibilities and consequences that may arise as the agendas were unveiled and delegates gathered.

The highest decision-making body of the World Trade Organization is the WTO Ministerial Conference, which is represented by trade ministers and other high-ranking officials from the organizations 164 member states. Historically, the Marrakesh Agreement that constituted the WTO mandates that the Ministerial Conference must be convening every two years. Aiming to increase multilateralism, trade opportunities, the multinational organization has been mediating discussions among its member nations on a range of issues related to trade.

The MC13 took place in Abu Dhabi, United Arab Emirates (UAE), from February 26 to March 2, 2024.In sum, MC13 provides a chance to chart a direction for the WTOs function in promoting equitable, inclusive, and resilient global trade, which is crucial, as countries deal with the economic aftermath of the COVID-19 pandemic and inter-state conflicts as well as looking for collective remedies for sustainable development. The MC13 agenda included a wide range of topics, including fisheries subsidies, agriculture, e-commerce, and the development agenda for LDCs, TRIPS waivers, and WTO reform.

As Bangladesh is aiming to graduate from Least Development Countries (LDCs) in 2026, the13th Ministerial Conference (MC13) was crucial for Bangladesh. From the beginning of the conference Bangladesh urged WTO members to extend duty-free market for countries who are graduating from the LDCs to developing country in 2026. Its a matter joy that in terms of duty-free market, Bangladesh as well as other LDCs are granted for continue to get benefit from duty-free market access for an additional three years until 2029. Additionally, support tailored to LDCs, including duty-free market access, technical assistance, and capacity-building programs, will be provided to these nations for three years after graduation.

Another crucial issue was the resumption of the suspension of the taxes on e-commerce, which is an area in which Bangladesh has several interests. In this regard in MC13 conference WTO decided that the customs taxes won be imposed on digital communications until MC14, or March 31, 2026. Expectations as well as concerns, it may work as a revenue booster for the countries like Bangladesh who are investing in freelancing and e-commerce.

Consequently, emphasizing the necessity to prioritize development, technology transfer, and other issues faced by developing and LDCs, Bangladesh along with India, Colombia, and Egypt have requested a re-evaluation of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement under the WTO. All WTO members are required to adhere to certain fundamental standards for the protection of intellectual property rights as outlined in the TRIPS Agreement, which went into force on January 1, 1995. The proposal aims, among other things, to hasten the long-desired investigation into the relationship between the TRIPS Agreement, the Convention on Biological Diversity (CBD), and the preservation of folklore and traditional knowledge, as Bangladesh and its counterparts have desired. Shockingly, re-evaluation of the agreement has not come to light. However, these countries involvement to lobbying with the TRIPS Council to complete the assessment quickly may be brought in the forthcoming MC14, which is expected to be held in Cameroon in 2026.

Notably, a plurilateral agreement on investment facilitation has been adopted by 123 WTO members; however, Bangladesh has chosen to refuse to join the initiative since the nation is oblige to maintains the principle of the spirit of multilateralism. Plurilateral agreements, which extend beyond the WTOs multilateral framework, allow member nations to establish fresh norms and accomplish reciprocal tariff reductions. Needless to say, these countries attempting to pass this at the MC13 are in violation of the fundamentals of WTO regulations, which Bangladesh gently refused.

Ironically, deciding on fisheries subsidies at MC12, the WTO made history by making environmental sustainability as its central tenet. They committed to finalize additional guidelines at MC13 to completing a historic accord for sustainable development on a global scale. It is heartening to note that, neither an agreement on agricultural nor fisheries subsidies was reached. As a result, countries like Bangladesh who are highly dependent on agriculture and fisheries are denied from fair shares from global market.

It is a classic illustration running with the hare and hunting with the hounds that Bangladeshs development prospects might take a hit if it lost access to concessional assistance that is only available to LDCs. As a result of this economic shift, the official development aid (ODA) grants and soft loans that Bangladesh has received since 1971 will no longer be considered. As though it may be a draconian task for Bangladesh, its reputation will be boosted on the global stage following its graduates from the LDC category, which will be effectively gaining a stamp of approval for development excellence. As a result, this would create scope for boosting Foreign Direct Investment (FDI) by conveying signals to potential investors about the countrys business-friendly atmosphere. Moreover, graduation will bring a greater tax-to-GDP ratio due to rising FDI, unavoidable policy, and structural adjustments.

For Bangladesh, graduate smoothly from LDC status, preferential market access is of utmost importance. The textile and garment industry, considered the backbone of Bangladeshs export strength, may benefit from any efforts to lower trade barriers and increase market access. If trade agreements could streamline customs processes and reduce tariffs, Bangladeshi exporters would have a better chance of competing in important markets. Nevertheless, there is no legally binding promise that ensures the continuation of this support after 2029 once these countries have graduated. In order to stay competitive by 2029, its industries must ensure that they are equipped with satisfactory global standards.

Now Bangladesh is in the transition phase, it must guarantee competitiveness, diversity, and skill development. The government should make an effort to increase the exports of jute, leather, fisheries and pharmaceuticals as well as ready-made garments and textile, as example. To achieve this goal, collaboration between the public and the business community is essential. Ultimately, they need to see the WTOs expansion as an opportunity to fortify our sectors in preparation for future success. Prioritizing specific policy imperatives would help Bangladesh take advantage of fresh opportunities and avert threats while it plots its route beyond the WTO Ministerial Conference.

It must be pointing out that, following the MC13 conference, Bangladesh finds itself at a crossroads in its trade route. Bangladesh needs to plot a path to follow grounded in realism, foresight, and resilience, fuelled by a sophisticated comprehension of the consequences and requirements stemming from the conference discussions and advice from policymakers.

Again, considering its status as a key player in the LDC group, Bangladesh needs to take the lead in pursuing and furthering the goals of graduating LDCs. This must be accomplished with the backing of the LDC group, together with developing WTO members, and by pursuing the members of the developed nation group.

In conclusion, with the intention to successfully navigate the complicated global trade environment, Bangladesh must maintain its unwavering commitment to fair and inclusive growth as it attempts to capitalize the potential of global commerce to drive economic development. Through adopting this initial step, Bangladesh could accomplish its goal of becoming an influential and robust global economic participant, which will provide subsequent generations with more opportunities and wealth.

The writer is a Freelance Contributor



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