WORLD TRADE WT/LDC/HL/12/Add.1
24October 1997
ORGANIZATION(97-4675)
High-Level Meeting onIntegrated Initiatives for
Least-Developed Countries 'Trade Development
COUNTRY-SPECIFIC ROUND TABLES: DOCUMENTATION
Bangladesh
Addendum
Documentation fortheRound Table Meeting forBangladesh.WT/LDC/HL/12/Add.1
Page2
CHECK-LIST FOR CONDUCTING TRADE-RELATED TECHNICAL
COOPERATION NEEDS ASSESSMENT
A. Trade Policy
(a) What arethesectors thatyoubelieve haveunexploited orunder-exploited export potential?
1. Unexploited Sectors
(i) Jewellery, diamond cutting andpolishing
(ii) Electric andelectronics
(iii) Luggage andfashion goods
(iv) Computer software anddataentry/processing
(v) Spectacle frames
(vi) Cutflower andorchid
(vii) Furniture
(viii) Fruits (fresh aswellascanned/preserved)
(ix) Food processing
(x) Engineering consultancy andservices
2. Under-exploited Sectors
(i) Textiles, particularly yarn, woven andknitfabrics, andspecialized
textiles including silkfabrics andclothing
(ii) Leather andleather goods
(iii) High fashion ready-made garment andknitwear
(iv) Frozen food(mainly shrimps including cooked/semi-cooked shrimps)
(v) Artificial flowers
(vi) Toys (stuffed, electronic andmechanical)
(vii) Agricultural products (processed)
(viii) Jutegoods (diversified items)
(ix) Handicrafts (made from cane, bamboo, leather, textile, etc.)
(x) Tea(packet tea,teabagandcanned tea)
(xi) Engineering products
(xii) Chemical products (e.g.pharmaceuticals, cosmetics, toiletries, etc.)
(b) Could youplease define yourcountry 'sperspective ofthereasons foranychanges inthe
structure anddirection ofexports andimports?
Adistinctive feature ofBangladesh 'sexports hasbeenadecline (inbothabsolute andrelative
terms) intraditional exports likerawjute,jutegoods andtea,andaspectacular increase innon-traditional
exports likeready-made garments, frozen fishandshrimps, andleather andleather goods. Inreal
terms, traditional exports haveexperienced negative growth ratesthroughout theentire period FY1981-
FY1994. Bycontrast, thegrowth rateofnon-traditional exports (asagroup) was33.9percentduring
theperiod FY1981-FY1986, which declined sharply to10.7percentduring theperiod FY1987-FY
1991, butthenrecovered to24.8percentduring FY1992-FY 1994. Asaresult ofthesustained growth
ofnon-traditional exports, tileshare ofthisgroup ofexports intotalexport rosefrom 31percentin
FY1983 to87percentinFY1995. Theshare oftraditional exports intotalexport fellfrom69per
centto13percentduring theabove period. Thechanging commodity composition ofBangladesh 'sWT/LDC/HL/12/Add.1
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exports isalsoreflected bythefactthatmanufactured exports haveincreased significantly andconstituted
87percentoftotalexports inFY1996.
Therather impressive shiftinBangladesh 'sexports fromtraditional tonon-traditional goods
(andfromprimary tomanufactured commodities) palessomewhat when itisnoted thattherapid growth
registered bynon-traditional exports (andforthatmatter manufactured exports) islargely attributable
tothephenomenal growth experienced byready-made garments andknitwear exports. These twoitems
comprised nearly 67percentoftotalexports ofBangladesh 63inFY1996. Itisimportant tonote
thatfourcommodities, viz.,ready-made garments, knitwear, leather andjutemanufactures make up
over90percentofmanufactured exports from Bangladesh. These dataindicate tilecommodity
concentrationofBangladesh'sexports;theGini-Hirschmanexportconcentrationindexhasrisensecularly
from 0.558 inFY1992 to0.622 inFY1996.
Inaddition tocommodity concentration, Bangladesh 'sexports arealsocharacterized bymarket
concentration. Three countries, viz.USA, UKandGermany, werethedestination foroverone-half
ofBangladesh 'stotalexport inFY1996; inthisyear, tencountries accounted forabout two-third of
thecountry 'stotalexport. TheGini-Hirschman market concentration index forBangladesh 'sexports
was0.32inFY1995.
Ready-made garments andknitwear werethemajor export items destined forthemajor export
marketsnotedabove.Thisindicatesthelinkbetweencommodityconcentrationandmarketconcentration
ofBangladesh 'sexports. Diversification oftheexport basket istherefore needed toachieve asustainable
highrateofexport growth. Theneedforexport diversification assumes critical importance when note
istaken ofthefactthattheMFA-quota system, which hasbeenamajor factor behind therapid growth
ofgarments export fromBangladesh, willbecompletely phased outby2005andthereafter thecountry 's
export ofgarments willfacestiffcompetition fromhitherto quota-restrained apparel exporting countries.
While commodity diversification islikely toleadtosome degree ofmarket diversification for
Bangladesli 'sexports, more direct measures would have tobetaken toachieve greater market
diversification, andthiswould include obtaining uptodatemarket information, aggressive marketing
policy, etc.
Capital andintermediate goods havedominated imports intoBangladesh. However, their
combined share intotalimport hasdeclined from68.7percentinFY1992to60.1percentinFY1996.
Bycontrast, theshare ofprimary goods (which includes foodgrains andother food) intotalimport
hasrisensecularly from24.7percentinFY1992to28.5percentinFY1996. Anincrease inimport
offoodgrains waslargely responsible fortheacceleration ingrowth ofprimary goods import. The
share offinalconsumer goods import hasincreased from 6.6percentinFY1992 to11.4percent
inFY1996. Thedeclining share ofimport ofproducer goods isofsome concern since investment
isstrongly import-intensive inBangladesh. Arevival ingrowth ofimport ofcapital goods since
FY1995, which raised theshare ofthisimport category intotalimport from20percentinFY1994
tonearly 24percentinFY1996, hashowever beenaredeeming feature. Anincrease incapital goods
import hasresulted from increased levels ofinvestment intheeconomy.
Thesources ofBangladesh 'simports havebeenmuch morediversified thanherexport markets.
TheGini-Hirschman market concentration index forimports wasonly0.079 inFY1995. USA, Japan,
Singapore andRepublic ofKorea havetraditionally beenthemajor sources ofBangladesh 'simports.
Thispattern haschanged inrecent years withIndia emerging asthemajor source ofimports. The
share ofIndia intotalimport ofBangladesh hasdoubled from6percentinFY1991 to12.2percent
inFY1995.WT/LDC/HL/12/Add.1
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(c) What havebeentheobjectives oftrade policy inthemost recent period, compared tosay,
twodecades ago?
Upuntiltheearly1980s, tradepolicy inBangladesh hadserved asahandmaiden ofaninward-
looking growth strategy thatwasfollowed withthebelief thatindustries would grow rapidly ifthese
operated behind highprotective walls. Consequently, theoverriding objective oftrade policy ofthat
period wastopromote import-substituting industries through erecting hightariffandnon-tariff barriers
against imports. coupled withexchange control measures. There wasalarge number oftariff slabs,
tariff rateswerehigh, import bansandquantitative restrictions onimports wereubiquitous, andthere
wasaproliferation ofend-user based tariff concessions.
Themid-eighties marks awatershed inthetrade regime ofBangladesh. Disenchantment with
theimport-substitution strategy ledtotheadoption ofanoutward-looking growth strategy wherein the
objectiveoftradepolicywastopromoterapidexportgrowththroughreducingandultimatelyeliminating
theanti-export biasprevalent intheeconomy. Keeping thisobjective inview, theimport regime has
beencontinuously liberalized andsimultaneously direct export incentive schemes havebeenputinplace.
More specifically, inthemostrecent period thenumber oftariffslabshasbeenbrought down toseven,
thehighest tariff ratehasbeenbrought down to42.5percent,onlyahandful ofitems aresubject to
quantitative restrictions fortradereasons, thesalestaxonimports hasbeenreplaced byatrade-neutral
value-addedtaxonbothimportsandlocalproduction,theimportlicensingprocedurehasbeenabolished,
exchange controls havebeenconsiderably relaxed andtheTakahasbeenmade convertible oncurrent
account, andvarious export incentive schemes havebeenimplemented withtheobjective ofproviding
exporters withimported inputs atworld market prices.
(d) What aretheMinistries incharge oftrade policy matters, including formulation,
implementation enforcement andmonitoring? Howiscoordination made? What aretherespective
rolesoftherelevant Ministries (giveparticular attention totariff policies andother policies directly
affecting exports andimports ofgoods andservices)?
TheMinistry ofCommerce isprimarily responsible forformulating, implementing, enforcing
andmonitoring tradepolicy matters through itsagencies theBangladesh Tariff Commission, theExport
Promotion Bureau, andtheOffice oftheChief Controller ofImports andExports. Thetaskofdesigning
thetariff policy isentrusted withtheTariff Commission, theImport Policy isdrawn upandenforced
bytheChief Controller ofImports andExports, while theExport Policy isformulated bytheExport
Promotion Bureau. TheNational Board ofRevenue under theMinistry ofFinance isresponsible for
implementing thetariff ratesaswelldetermining assessable values ofimports forimposing customs
duty. TheMinistries ofIndustries, Jute,Textiles, Agriculture andFisheries andLivestock arealso
involved intheprocess offormulating trade policy. Coordination ismade through inter-ministerial,
cabinet sub-committee andcabinet meetings.
(e) Howaretheprivate sector andacademic institutions associated withtheformulation and
conduct oftrade policy?
Theprivate sector isclosely associated withtheformulation andconduct oftradepolicy through
itsparticipation inofficial meetings relating totrade policy andbyproviding written
comments/suggestions ondraftpolicies inthisarea. Representatives ofvarious chambers ofcommerce
andindustry aremembers ofconsultative committees formed bytheGovernment fordesigning trade
policy, themost important ofwhich arethefollowing:
(i) National Committee forExports headed bytheHonourable Prime Minister.
(ii) Export Promotion Council headed bytheHonourable Minister forCommerce.WT/LDC/HL/12/Add.1
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(iii) Task Force intheMinistry ofCommerce headed bytheHonourable Minister for
Commerce.
(iv) Import Consultative Committee headed bytheHonourable Minister forCommerce.
(v) National Board OfRevenue Consultative Committee headed byMinister forFinance.
(vi) Industrial Development Council headed byMinister forIndustries.
Monitoringandperiodicreviewsarealsoheldtoexamineimplementationofsuggestionsreceived
from theprivate sector.
Theinvolvement ofacademic institutions intheformulation oftradepolicy isensured through
often including eminent academician inthecommittees noted above. Furthermore, inputs fortrade
policy formulation often emanate from research studies andseminars organized byUniversities and
leading professional institutions/organizations liketheBangladesh Institute forDevelopment Studies,
theCentreforPolicyDialogue,theBangladeshEconomicAssociation,theBangladeshUnnayanParishad,
etc.
(f) What aretheinstitutions inyourcountry thatcanplayaroleinimplementation oftrade-
related project atthelocal level? State their respective roles.
(i) Public Sector Institutions
- Bangladesh Tariff Commission (itsprimary roleistoformulate tariffpolicy andmake
recommendations regarding import policy, andtoinitiate investigations regarding
adoption ofunfair trade practices byforeigners exporting toBangladesh and,onthis
basis, make recommendations totheNational Board ofRevenue tolevyanti-dumping
andcountervailing duties).
- Export Promotion Bureau (itsroleistopromote exports).
- National Board ofRevenue (implements tariff policy).
- Office oftheChief Controller ofImport andExport (itsroleistoregulate import trade).
- Board ofInvestment (promotes investment ingeneral andforeign investment in
particular).
(ii) Private Sector Institutions
- TheFederation ofBangladesh Chambers ofCommerce andIndustry.
- LeadingChambersofCommerceandIndustrylikeMetropolitanChamberofCommerce
andIndustry, Dhaka Chamber ofCommerce andIndustry, Bangladesh Chamber of
Industry, andChittagong Chamber ofCommerce andIndustry.
- LeadingExporters'associationslikeBangladeshGarmentsManufacturers'andExporters'
Association, Frozen Foods Exporters '.Association, Finished Leather andLeather
Goods Exporters 'Association etc.
- Theroleoftheprivate sector institutions istoprovide support services toproducers
andexporters primarily byestablishing linkages between theprivate sector the
Government andexternal actors (e.g.foreign chambers)WT/LDC/HL/12/Add.1
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(g) What arethemain lawswithtrade policy -onexports andimports? Please provide a
short description ofeach.
Themain lawsandregulations dealing withtrade policy are:
(i) Imports andExports (Control) Act,1950
(ii) Importers, Exporters andIndentors (Registration) Order, 1981
(iii) Customs Act,1969
(iv) TheReview, Appeal andRevision Order, 1977
(v) TheForeign Exchange (Regulation) Act,1947
TheImports andExports (Control) Act,1950empowers theGovernment toregulate, bylaw,
importation andexportation ofgoods andservices intoandfromBangladesh. Theprimary responsibility
forimplementing thisActlieswiththeOffice oftheChief Controller ofImports andExports. The
responsibility ofenforcing theprovisions oftheCustoms Act,1969isvested withtheNational Board
ofRevenue andCollectorate ofCustoms andExcise. Bangladesh Bank, theCentral Bankofthecountry,
implements theprovisions oftheForeign Exchange (Regulation) Act,1947which interaliaregulates
thepurposesforwhich,andtheproceduresthroughwhich,foreignexchangemaybetakenoutorbrought
intoBangladesh. These three cardinal Actsinthefieldofforeign trade arecomplementary innature,
andinfringement ofoneActmayinvolve infringement ofanother Act.
(h) What arethemain instruments oftrade policy -onexports andimports? Please elaborate
(e.g.oilimport restrictions, thequestions might be:onwhat products arethere anyimport bans;
onwhatproducts arethere quantitative restrictions; licensing requirements etc.;whatisthehighest
tariff ratecurrently inuse;arethere anyexcise taxes, other "domestic" taxes thatareapplied
differentially toimported goods, ortogoods ofatypethatareprincipally imported?)
Major trade policy instruments ontheimport sideinclude import tariff (orcustoms duty),
supplementary duty(insome cases) onbothimports andlocalproduction, 15percentadvalorem value-
taxoilimports aswellaslocal products, direct controls onimports which include import bansand
qualificative restrictions, andfixation of‘tariff values '.
Currently there areseven tariff slabs(including thezeroratewhich isapplicable toanumber
ofproducts) andthehighest operative tariffratestands at42.5percent. Avariable ratedtrade-neutral
supplementary excise duty, which isinthenature ofaconsumption tax,isimposed onsome imported
products andtheircorresponding locally produced substitutes. InFY1991theimport-discriminatory
salestaxwasreplaced bya15percentadvalorem value-added taxonbothimports andcorresponding
locally produced goods (with some exceptions), andthisisstillinoperation; thevalue-added taxis
atrade-neutral consumption tax.Thevalue-added taxloses itstrade-neutral character when applied
totextile products; while textile imports aresubject tothe15percentvalue-added tax,theirlocally
produced substitutes areexempted fromthistaxandinstead anexcise taxof2.5percentadvalorem
isapplicable. Tariff concessions based onend-use ofthesame product areallowed insome cases with
theobjective ofstimulating growth ofdomestic industry. Aninfrastructure development surcharge
of2.5percenthasbeenintroduced inFY1998, butthisistrade-neutral incharacter. Asystem of
fixed ‘tariff value'isinoperation (alongside avoluntary PSIvaluation scheme) wherein tariff values
aredetermined bytheNational Board ofRevenue forcertain imported products tocheck thepractice
ofunder-invoicing orover-invoicing ofimports byunscrupulous importers.
Elimination ofquantitative restrictions (QRs) onimports andtheirreplacement bytariffs has
beenthestrategy which hasbeenpursued zealously bytheGovernment ofBangladesh. InFY1996
only2percentofH.S.-8 tarifflinesweresubject totrade-related QRs. Inabsolute terms, thenumberWT/LDC/HL/12/Add.1
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oftrade-related QRswasreduced to23intheImport Policy Order 1995-97; ofthese, 11werebanned
items while import oftheremaining 12items wasrestricted (i.e.importable subject tofulfilment of
specified conditions). Thetextile sector currently enjoys theheaviest protection fromQRs, withabout
aquarter ofHS-8 linesinthissector stillremaining under QRs. Some ofthetextile goods whose import
arecurrently banned arewoven fabrics ofsilk,cotton-synthetic blended suiting fabrics above 60inches
width, shirting andsuiting fabrics ofsynthetic orman-made fibers, allknitted orcrocheted fabrics,
etc.Some textile products whose import arerestricted aredrillandcellular dyedfabrics, 'khaki'fabrics,
combat fabrics, greyfabrics etc.Nolicence isrequired forimportation under theImport Policy Order,
1995-97.
Apart fromimport liberalization which aimstostimulate export growth byremoving anti-export
bias,major policy instruments applied toexports include direct measures tofacilitate exports andexport
controls. There areanumber ofexport support measures inoperation. TheSpecial Bonded Warehouse
(SBW) scheme aimsatenhancing export competitiveness through providing exporters access toduty-free
inputs, all100percentexporters and"deemed" exporters (i.e.localfirms supplying inputs to100per
centexporters) areeligible forgetting SBW benefits. TheDuty Drawback scheme provides 100per
centexporters and"deemed" exporters withrebates ofduties andtaxespaidonimported inputs. These
exporters areeligible toget25percentcashcompensation iftheyrefrain fromusing Duty Drawback
facilities. Theexport Development Fund andtheExport Credit Guarantee Scheme provides finance
toexporters.
Afewexportcontrolsremaininoperation.Untilrecently,re-exportswererestricted.Atpresent,
however, re-export ofgoods other thanready-made garments isallowed onacase-bycase basis. Export
ofsome agricultural commodities isbanned. These include wheat, pulses, onions, juteseeds, prawns
andshrimp (except frozen), whole bamboo andcane. Export ofmolasses, de-oiled ricebran, andwheat
brain arerestricted. Export ofseveral manufactured goods isalsorestricted. These include ferrous
andnon-ferrous metals, petroleum andpetroleum products (except naphtha), ‘gur'(indigenous sugar),
rawandwetblueleather, andurea.
(i) IncaseyouareaWTO Member orareintheprocess ofacceding, howisyour country
preparing itself tocomply withWTO Agreements?
Bangladeshisafounding-MemberoftheWTOandhasbeentakingactiveinterestintheactivities
oftheGATT (now WTO) since herindependence inDecember 1971. Asaspokesman fortheleast-
developed countries, Bangladesh played aleading roleinthemultilateral negotiations heldunder the
Uruguay Round. Sosheisfullyaware ofherobligations tocomply withthevarious WTO Agreements,
andthissense ofawareness hasmotivated theGovernment ofBangladesh totakesome preparatory
actions inthisregard.
Amajor objective oftheWTO Agreements istoachieve increased tradeflows among Member
countries through theadoption ofmore liberal trade policies. Bangladesh hasunilaterally liberalized
hertraderegimesubstantiallyinpursuanceofitsStructuralAdjustmentProgramme,andtheGovernment
iscommitted tofurther liberalization inthefuture. Astrategy ofprivate sector-led growth isbeing
pursued withvigour, andthishasresulted inwidespread deregulation anddenationalization, adoption
ofmeasures toattract private foreign investment, andlaunching oflegal, institutional andother reforms
tostrengthen market forces.
TheGovernment ofBangladesh iscognizant ofthefactthatreform ofthelegalandinstitutional
framework relating totheexternal sector would havetoconform totherules oftheWTO system.
Inother words, inthemost-Uruguay Round trading environment, trade willhavetobeconducted in
amanner consistent withtherules andregulations laiddown inthevarious WTO Agreements, andWT/LDC/HL/12/Add.1
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thiscallsfordeveloping, strengthening andreshaping theextant administrative, legalandinstitutional
set-up. However, before thistaskcanbeundertaken, itisimperative toidentify andpin-point
institutional andother changes thatwillberequired tobring theoverall trade policy framework in
Bangladesh intoconformity withvarious WTO Agreements. With thisaiminview, astudy project
manned bylocalandexpatriate consultants wasmounted ontheFinal ActoftheUruguay Round by
tileMinistry ofCommerce withUNDP assistance in1996. TheReport ofthisstudy hasidentified
areas where necessary changes havetobemade inorder tocomply withWTO Agreements. The
recommendations ofthisReport areunder active consideration ofrelevant Ministries forpurposes of
implementation. Meanwhile, some changes have already been made intherules andregulations
governing international trade. Thus, forinstance, Ministry ofFinance hasalready enacted rulesand
regulations relating toimposition ofanti-dumping andcountervailing duties.
(j) What isthestate offamiliarity withtheWTO framework:
- among government andgovernment-related agencies?
- intheprivate sector?
TheMinistryofCommerceandtheagenciesunderitsadministrativecontrol(e.g.theBangladesh
Tariff Commission) areconversant withtheoverall WTO framework, although there isroom for
improvement inthestateofknowledge. Other concerned Ministries aregenerally aware ofthespecific
Uruguay Round Agreement thatisapplicable totheirareaofwork, butagain theknowledge baseis
rather weak. Intheprivate sector, leaders ofvarious chambers ofcommerce andindustry aremore
orlessfamiliar withWTO rulesandregulations, buttheirknowledge isfarfromsatisfactory. Itmay
benoted herethattheMinistry ofCommerce hasbeenmaking efforts todisseminate knowledge relating
totheWTO framework through holding seminars agencies.
(k) What areyour technical assistance requirements withregard toyour compliance with
theWTO Agreements?
TheWTO Agreements arenotonlycomplex butalsodemanding, interms oftheirintellectual
rigour aswellisinterms oftheirinstitution building requirements forleast-developed countries. Hence,
tocomply withthese Agreements, Bangladesh needs technical assistance forinstitutional development
aswellasforhuman resource development intheareaoftrade policy administration andtrade
facilitation. More specifically, Bangladesh needs technical assistance inthefollowing areas tocomply
withtheWTO Agreements:
- Tosetupcellsorlocalpoints intherelevant Ministries tocarry outwork related totheWTO
Agreements. Thiswillinteraliaensure thatnotification andother WTO obligations arefully
implemented.
- Tostrengthen theMinistry ofCommerce anditsaffiliated agencies (liketheBangladesh Tariff
Commission andtheExport Promotion Bureau) toenhance theircapacities toeffectively handle
theincreasing volume ofWTO related work.
- Totrainofficials inrelevant Ministries, particularly Ministry ofCommerce, andthevarious
chambers ofcommerce andindustry toenable them tofullycomprehend thecomplexities of
theWTO Agreements andthereby effectively dealwiththem.WT/LDC/HL/12/Add.1
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(l) Inwhich specific areas oftheWTO Agreements doyouhave technical assistance needs
(e.g.market access, agriculture, rules (anti-dumping, subsidies, import licensing, rules oforigin,
safeguards etc.), TBT andSPS, Services, TRIPS)?
Bangladesh hastechnical assistance needs inalltheWTO Agreements specified above, viz.,
market access, agriculture, anti-dumping, subsidies, customs valuation, rules oforigin, safeguard
measures, TBT, SPS, services, TRIPs, TRIMs, environment, etc.Thisisbriefly justified below.
Liberalization commitments, intheform oftariff reductions andremoval ofQRsandother
non-tariff measures, made byMember countries intheUruguay Round havewidened access toexport
markets forbothindustrial andagricultural products. Inorder toderive thefullbenefits ofsuch
liberalization, Bangladesh hastodevelop newexport products, satisfy product standard requirements
inimporting countries, collect themostrecent market information available indifferent markets, etc.
Bangladesh needs technical assistance inallthese areas. Inproviding access toforeign suppliers of
goods andservices toherdomestic market, Bangladesh would benefit from technical assistance in
designing theextent, sequence andtiming ofliberalization which willbeinconformity withher
liberalizationobligationsundertheUruguayRoundAgreement,takingduenoteofthetransitionalperiods
provided forunder some Agreements andtowhich sheisentitled asaleast-developed country.
TheAgreement onAgriculture aims atliberalizing trade inagricultural goods. Since
liberalization isexpected toleadtoanincrease inprices ofagricultural goods including foodgrains,
asanetfoodgrain importing country Bangladesh islikely tobefaced withanincrease inherfoodimport
bill. Theimplication ofthisisthatfoodgrain production inBangladesh hastobeenhanced through
achievingarapidincreaseinproductivity.Bangladeshneedstechnicalassistancetoenhranceagricultural
production andalsotoexamine theissueofsubsidizing agricultural production inthecountry without
violating WTO rules.
Thetrade regime ofBangladesh hasbeencontinuously liberalized since themid-1980s and
thereform process ison-going. Asistobeexpected inanLDC undertaking tradeliberalization, local
industries inBangladesh arefacing stiffcompetition from imports andmany ofthem arereportedly
facing extinction. TheAgreement onSafeguards permits aMember country toresort tosafeguard
action torestrict imports ofaproduct foratemporary period byeither increasing tariffs orimposing
QRs. However, atemporary safeguard measure canbeadopted onlywhen ithasbeenestablished
through properly conducted investigations thatasudden increase inexports (both absolute andrelative
todomestic production) hascaused orthreatens tocause serious injury tothedomestic industry.
Bangladesh needs technical assistance toestablish anadministrative procedure andset-up toconduct
investigations mentioned above which willbeinconformity withWTO rules andregulations.
Local producers inBangladesh often complain thatforeign suppliers areresorting tounfair
trade practices, either intheformofdumping orintheformofsubsidized exports. Theadoption of
unfair tradepractices byforeign suppliers results inextremely lowprices ofimported products which,
inturn,isthreatening theveryexistence ofmany localindustries inBangladesh, soitisalleged. Under
theAgreement onAnti-Dumping Practices theimporting country canlevyanti-dumping duties on
products thatarebeing dumped. Iftheforeign supplier isresorting toexport subsidization thenunder
theAgreement onSubsidies andCountervailing Measures, thegovernment oftheimporting country
isauthorized tolevycountervailing duties onimported products thathavebenefited from subsidies.
Thus,incaseunfairtradepracticesarebeingadoptedbyforeignsuppliers,theGovernmentofBangladesh
isauthorized byWTO rules tolevyanti-dumping orcountervailing duties, asthesituation demands.
However,theimpositionofanti-dumpingorcountervailingdutyrequiresthefulfilmentoftwoconditions.
First, investigations mustbecarried outatthenational leveltoestablish beyond anydoubt thatincreased
imports arecausing material injury. Second, suchinvestigation canbe"ordinarily" initiated onlyafterWT/LDC/HL/12/Add.1
Page10
thesubmission ofapetition bytheaffected domestic industry, andfurthermore, evidence hastobe
furnished totheeffect thatmaterial injury isbeing caused toproducers accounting foratleast25per
centoftotaldomestic production. Bangladesh needs technical assistance tosetupandstrengthen her
administrative machinery inorder tofulfiltheabove-mentioned twoconditions forlevying anti-dumping
and/or countervailing duties.
Bangladesh needs technical assistance intheareaofcustoms valuation. Valuation ofgoods
forcustoms purposes inBangladesh atpresent isbased ontheBrussels Definition ofValue. Thecountry
ishowever under theobligation tochange overtotheWTO Valuation System (aslaiddown inthe
Agreement onCustoms Valuation by1January 2000. Thischangeover willinvolve bringing about
changes inrelevant rules andprocedures, further modernization andcomputerization ofcustoms
procedures andtraining ofofficials. There istherefore needfortechnical assistance tofacilitate change-
overtotheWTO Customs Valuation System inBangladesh.
TheAgreement onTechnical Barriers toTrade laysdown international rulesrelating toproduct
standards aswellastechnical regulations, compliance withwhich ismandatory insome cases and
voluntary inothers. Bangladesh 'sexports would havetomeetthesestandards andtechnical regulations
togainaccess toforeign markets, particularly inthedeveloped countries. Theobtaining ofISO9000
registration byBangladesh 'sexporters isanexample inthisregard. TheAgreement alsorequires each
Member Country toestablish "enquiry point" from which information onstandards andtechnical
regulationsapplicableinthecountrycouldbeobtainedbyinterestedbusinessenterprises.Atthemoment,
Bangladesh neither hastheexpertise northeinstitutional machinery thatisneeded formeeting standards
andtechnical regulations requirements ascontained intheAgreement. Theneedfortechnical assistance
inthisareaistherefore obvious.
TheAgreement onSanitary andPhytosanitary Measures, somewhat similar inintent tothe
Agreement onTechnical Barriers toTrade, specifies principles andrules which Member countries
mustfollow inapplying SPSregulations toimported andexported products inorder toprotect their
human, animal, plantlifeorhealth fromtheriskofdisease. LiketheAgreement onTechnical Barriers
toTrade, theprovisions oftheAgreement onSanitary andPhytosanitary Measures alsorequire that
"enquiry points" should beestablished from which information onregulations could beobtained by
interested exporters toBangladesh andbyimporters. Agricultural exports fromBangladesh liketea,
jute,shrimps andfrozen food, vegetables etc.havetocomply withsanitary andphytosanitary regulations
applicable intheimporting counties. Hence, information onsuchregulations applicable inBangladesh 's
export markets hastobedisseminated toexporters tofacilitate market access. Furthermore, "enquiry
points" havetobesetup.Finally, SPSregulations havetobefirmed upinBangladesh inorder to
protect herhuman, animal, andplant lifeorhealth. Technical assistance isrequired totakeallthese
steps.
TheAgreement onTrade Related Aspects ofIntellectual Property interalialaysdown standards
foreachofthefollowing intellectual property rights: patents, copyright andrelated rights, trademarks,
industrial designs, layout designs ofintegrated circuits, undisclosed information including tradesecrets
andgeographicalindicationincludingappellationoforigin.TheAgreementlaysemphasisonenforcement
ofitsstandardsandrulesbyMembercountries.Asaleast-developedcountryBangladeshhasan11years
transitional period (i.e.upto1January 2006) tomeetherobligations under thisAgreement. Even
though Bangladesh hassome timetomeetherTRIPs obligations, alotofwork needs tobedonesince
significant changes would havetobemade intheexisting national legislations intheareaofintellectual
property righttobring themintoconformity withtheprovisions oftheAgreement onTRIPS. Technical
assistance isrequired forreviewing andappropriately changing national lawsandregulations relating
totheprotection ofintellectual property rights. Furthermore, theadministrative machinery requiredWT/LDC/HL/12/Add.1
Page11
forenforcement ofintellectual property rights needs tobeputinplace before theendofthetransitional
period. Technical assistance willalsobeneeded forthispurpose.
Theprovisions oftheGeneral Agreement onTrade inServices donotimpose anymandatory
obligations onBangladesh tomake anymajor changes initspolicies intheservice sector. However,
theservice sector orBangladesh isweak andnotveryefficient. So,inorder tobeabletoface
competition fromforeign suppliers astradeinservices isgradually liberalized intilefuture, theservice
sector inBangladesh needs tobestrengthened. Itisinthiseffort thatBangladesh could welldowith
technical assistance. Moreover, technical assistance could beusedtodevelop computer skills inthe
country sothatcompute services likeaccounting anddoing simple administrative workcould beexported
toforeign companies, particularly airandinsurance companies. whoarelooking todeveloping and
least-developed countries togetsuchwork doneatlower cost.
Theforegoing paragraphs havebriefly delineated some ofthetechnical assistance needs of
Bangladesh withrespect tospecific WTO Agreements. Needless tomention, thisisnotanexhaustive
listoftechnical assistance requirements, since further study mayreveal theneedforassistance with
respect tosome oftheother WTO Agreements andevenincaseofAgreements noted above.
B. Obstacles totrade expansion
Obstacles totrade encompassing problems inexport markets, infrastructure, human capacities,
institutional bottlenecks, trade financing problems andgapsintrade information caninhibit
aleast-developed country fromtaking fulladvantage oftrading opportunities.
Supply constraints, including institutional bottle-necks
(a) What arethemain bottlenecks inhibiting thedevelopment ofsustained export capacity
ofgoods andservices (e.g.customs facilitation, freight charges, quality management, elimination
ofcumbersomelegalandadministrativeprocedures,paucityofhumanskills,accessatinternational
prices toimported inputs, orinadequate telecommunication, portandtransport facilities etc.)?
- Land-locked countries mayfaceadditional problems, suchashaving toshipusing
costly orunreliable transport mdports systems. Incasethisapplies toyour
country, please indicate suchproblems. What kindoftechnical assistance would
helpyouwork outthese problems?
Themain bottlenecks inhibiting thedevelopment ofsustained export capacity ofgoods and
services are:-
(i) narrow industrial baseresulting innarrow export base;
(ii) lengthy andcomplicated customs clearance procedures;
(iii) relatively highfreight charges forexport byair,andtosome extent bysea;
(iv) inadequate facilities forquality management;
(v) time-consuming legalandadministrative procedures;
(vi) constraints inexport production caused byshortage ofskilled management personnel
andskilled labour, andabsence oftraining facilities forskilldevelopment;
(vii) inadequate supply andcomparatively highcostoftelecommunication services, port
andtransport facilities, anderratic power supply;
(viii) shortage ofinformation onexport markets;
(ix) inadequate export finance; andWT/LDC/HL/12/Add.1
Page12
(x) market access problems.
(b) Arethere anyinstitutional bottlenecks, which mayimpede theefficient conduct ofyour
country 'strade policies? Provide details. Forexample, what aretheproblems perceived
bythedifferent actors, e.g.exporters, producers, service providers (banks, insurance
companies, quality control, transporters etc.), professional associations andMinistries?
Areproblems mainly perceived intheareaof:
(i) human resources
(ii) management oftheinstitution
(iii) financial andmaterial resources
(iv) communication
Yes,there areinstitutional bottlenecks impeding theefficient conduct ofthecountry 'strade
policies. Tostartwith, attheofficial levelthereisalackofcoordination among theagencies/institutions
dealing withtradepolicy, andthis,together withincomplete understanding oftheobjectives andworking
oftradepolicy onthepartofofficials, hasoften resulted insluggish implementation ofpolicies. This,
coupled withrent-seeking behaviour ofsome officials ofthese agencies/institutions, hasoften ledto
costescalation ofproducers andexporters. Toalargeextent, theprivate sector isnotwellconversant
withthefinerdetails oftrade policy, andthishassometimes adversely affected export performance.
Exporters frequently complain ofshortage andtimely availability ofworking capital supplied bybanks
which, byandlarge isattributable toashortage offinancial resources andweak andinefficient
management ofthebanks, particularly thenationalized banks. There isavirtual lackofquality control
facilities intheGovernment aswellastheprivate sector.
Theefficiency ofconducting tradepolicy, andthence itseffectiveness inBangladesh, hasthus
beenadversely affected byproblems existing intheareasofhuman resources, organization management,
financial andmaterial resources andcommunication.
(c) What arethemain bottlenecks toexport diversification?
Themain bottlenecks toexport diversification are:-
(i) inadequate information regarding thenature andpattern ofdemand obtaining invarious
export markets;
(ii) inadequate investment innewareas ofproduction having export potential;
(iii) lackofcapital andtechnology;
(iv) lackofentrepreneurial drive;
(v) lackofinfrastructural facilities; and
(vi) shortage ofother support facilities.
(d) Ifinvestment intheproduction ofgoods andservices isinadequate, what arethemain
reasons? Please elaborate them (e.g. structural constraints, difficulties inattracting foreign
investment, limited enterprise development, financing, lackofappropriate technology, etc.)
Asnoted in(c)above, inadequate investment isamajor problem constraining export
diversification. Themain reasons behind inadequacy ofinvestment are:
(i) structural constraints likeshortage ofenergy, lackoftelecommunication facilities,
inadequate transport andportfacilities, etc.;WT/LDC/HL/12/Add.1
Page13
(ii) difficulty inattracting foreign investment, primarily duetolack ofadequate
infrastructural facilities, shortage ofskilled labour andlabour disturbances, lackof
continuity ineconomic policies from onepolitical regime toanother etc.;
(iii) limitedenterprisedevelopmentemanatingfromrelativeshortageofentrepreneurs,market
uncertainties, shycapital, relatively quicker andoften higher return frominvestment
intrade activities, labour problem, etc.;
(iv) shydomestic investment attributable tofactors mentioned above;
(v) inadequate bankfinancing inbothlocalandforeign currencies; and
(vi) Lack oftransfer andindigenous development ofappropriate technology.
(e) Isthere anational policy toencourage export-related investment opportunities? Please
elaborate. What arrangements areinplace forreviewing, drafting andnegotiating contractual
arrangements withforeign investors?
Inkeeping withherstrategy ofexport-oriented growth, Bangladesh hasgotanumber ofpolicies
inplace which havebeendesigned toencourage export-related investment. Inaddition tothepursuit
ofimportliberalizationpolicywhichaimsatstimulatinginvestmentinproductionforexportbyremoving
theanti-export bias, direct export incentive schemes areinoperation toencourage export-related
investment. These incentive schemes include Special Bonded Warehouse facilities, Duty Drawback
facilities and25percentcashcompensation inlieuofDutyDrawback; theobjective oftheseincentive
schemes istoencourage export-related investment byproviding exporters access toduty-free imported
inputs. Export Processing Zones (EPZ) havebeensetupinDhaka andChittagong toencourage
investment inexport production; notonlyareinfrastructural andother support facilities much better
inEPZs compared toother areas, firms operating inEPZs alsohaveaccess toduty-free inputs. The
Government hasrecently granted permission tosetupprivate EPZS. Aliberal Foreign Investment
Policy isinplace toattract private foreign investment, particularly withtheaimofpromoting export-
relatedinvestment.Variousincentiveslikeprovidingnationaltreatmenttoforeigninvestment,protection
offoreign investment bylaw,duty-free import facilities forexport production, unhindered repatriation
ofcapital andprofit, taxholiday; etc.areavailable forforeign investors. Foreign investors canhave
100percentownership orcanform jointventures withlocalpartners; inthelatter casepartners are
freetodecide about terms andconditions. Contractual arrangements withforeign investors are
negotiated, drafted andreviewed bytheBoard ofInvestment within theframework oftheForeign
Investment Policy.
(f) What arethemain obstacles tothetransfer, development andacquisition oftechnology?
Isthere anynational policy/strategy inthisarea? Please elaborate.
Thetransfer, development andacquisition oftechnology (process/product) requires:
(i) regularandappreciableinteractionamongUniversities/R&DOrganization/Entrepreneurs;
(ii) media (e.g.TIFAC- Technology Information, Forecasting andAssessment Council
ofIndia); and
(iii) commercialization of(process/product) R&D results (e.g.NRDC- National Research
Development Corporation ofIndia andNCTT -National Centre forTransfer of
Technology ofPakistan).
Atthemoment, Bangladesh hasnoinstitutional set-up toruntheabove three processes/steps
smoothly. Thisisthemain obstacle tothetransfer, development andacquisition oftechnology in
Bangladesh. Thisisnotsurprising since theNational Science andTechnology Policy wasenacted on
25February 1986 andhasnotbeenrevised andupdated since then. However, theGovernment is
considering toestablish aNational Centre forTransfer ofTechnology inthenearfuture.WT/LDC/HL/12/Add.1
Page14
(g) What areyour technical assistance orother assistance needs with respect tosupply
constraints?
Technical assistance needs withrespect tosupply constraints are:
(i) investment promotion, particularly providing funds forfinancing export;
(ii) development ofphysical infrastructure (e.g., telecommunication services, portand
transport facilities, etc.);
(iii) human resources development through providing training onskilldevelopment for
government officials serving intrade-related organizations aswellasmanagement
personnel andproduction workers intheprivate sector;
(iv) streamliningandsimplifyinglegalandadministrativeproceduresrelatingtotradethrough
undertaking legalandadministrative reform;
(v) advisory andsupport services intheareaofdeveloping newexport products and
improving thequality ofexisting export products, product design improvement,
packaging, etc;
(vi) developing trade information network system;
(vii) establishing aninstitutional set-up which willfacilitate transfer, development and
acquisition ofappropriate technology
(viii) labour market development; and
(ix) multilateral donor agencies maypersuade Governments ofdeveloped anddeveloping
countries toencourage theirinvestors through fiscal andother incentives toinvest in
least-developed countries likeBangladesh.
Trade Promotion andTrade Support Services
Trade promotion comprises anintegrated setoftechnical andfinancial services toenhance
theglobal competitiveness ofenterprises andthusfacilitate theirentry andincreasing participation in
international trade.
(h) Doyour enterprises, especially small andmedium enterprises, experience difficulties in
expanding their exports? What arethese problems inthemajor export sectors?
Small andmedium enterprises experience difficulties inmany areasinexpanding theirexports.
Themain difficulties SMEs faceare:
(i) dearth oftrade-related market information andcommunication facilities;
(ii) lackoftechnological capacity andtechnical know-how;
(iii) inadequacy ofskilled manpower andinstitutional capacities;
(iv) weak infrastructure;
(v) shortage ofenergy;
(vi) lackoffinance; and
(vii) poormarketing capability.
These problems asfaced inthemajor export sectors, arebriefly described below:
Ready-made Garments
There isalackofbackward linkage industries andconsequently value addition isonlyabout
25percent. Heavy dependence onimported rawmaterials leadstolonger leadtime. Stringent (3-stageWT/LDC/HL/12/Add.1
Page15
transformation) Rules ofOrigin inEUGSPScheme hasrestricted inmarket access forhighvalue-added
items.
JuteandJuteGoods
These goods facesevere competition fromsynthetic substitutes. Lackofproduct development
anddiversification isamajor problem inthissector. Other problems areinadequate finance, poor
management, andlabour inefficiency andunrest.
Leather andLeather Goods
Expansion ofthissector isconstrained byuseofout-dated technology, lackofproduct
diversification, weak physical andinstitutional infrastructure, inadequate capital, shortage ofskilled
workers, andinadequate export market information.
Frozen Food
Inadequate finance hashindered scientific culture ofshrimp andgrowth ofadequate hatcheries.
Asaresult, traditional method ofshrimp cultivation ispractised resulting inlowlevels ofoutput.
There isalackofadherence tothestrictquality standard requirements ofexport market; consequently,
market access hasbeenrestricted.
Agricultural andHorticultural Products
Problems inthissector areabsence ofprocessing facilities, lackoftechnology, weak
infrastructural andinstitutional support, inadequate finance, andupper-end market entry problem.
(i) Whataretheproblemsforyourenterprisesinobtainingreliableandup-to-dateinformation
onexport/import business opportunities?
Problems include lackofinstitutional infrastructure andskills toaccess, collect, store, process
anddisseminate tradeinformation fromabroad byusing modem information technology (Internet, for
example). Theproblem iscompounded bynon-availability ofrelevant journals/ publications.
TheGlobal Trade Point Network (GTPN) introduced byUNCTAD facilitates trade allover
theworld through quick andsmooth electronic dissemination ofup-to -datetrade-related information.
Much oftheexisting gapinglobal trade information inBangladesh canbefilled upthrough the
introduction ofTrade Point inthecountry.
(j) Canyour enterprises offer products ofinternationally acceptable design, quality and
packaging toforeign buyers? Ifnot,what aretheproblems ?
Design,qualityandpackagingareofacceptableinternationallevelinalimitednumberofproduct
lines, e.g.,ready-made garments, ceramic andmelamine tableware, leather products, etc.However,
themajority ofproducts suffer from shortcomings indesign, poorquality andinferior packaging.
Absence ofdesign development centres andlackoffacilities forensuring product quality aremajor
obstacles inthisarea. Furthermore, there isneedforup-to-date information relating toconsumer
preferences inexport markets.WT/LDC/HL/12/Add.1
Page16
(k) What problems, other thaninterms oftrade policy, doyouanticipate indeveloping the
export ofservices (e.g.computer software, tourism)?
Other thantrade policy, themain problems indeveloping export ofservices likecomputer
software andtourism arisefrom lackofinfrastructure, finance andtrained manpower.
(l) What arethetechnical/professional problems encountered bytrade support institutions
(e.g.trade promotion council, chamber ofcommerce, exporters association etc.)inyourcountry
inproviding their services toexport/import enterprises?
Technical/professional problems encountered bythenational tradepromotion organization (the
Export Promotion Bureau) areunder-developed human resources, lackofaccess torelevant technology
andhighly inadequate research anddevelopment. Development ofhuman resources willinvolve
improvement ofknowledge relating toproduct development, diversification, marketing, etc.There
isalsoample scope forimparting training topersonnel onkeyissues ofinternational trade, trade
information, etc.There isalsoaneedforprocurement oftraining equipment, trade-related publications,
etc.forstrengthening theinstitutional set-up.
Bangladesh has55chambers and135trade associations. Outofthese onlyabout 6chambers
and10trade associations areinaposition toprovide trade promotion services. Butthese alsolack
finance, human resources, up-to-date information technology, training equipment, etc.torender
satisfactory services.
(m) What problems anddeficiencies areexperienced byenterprises intheir international
purchasing andinventory management?
Theproblems are:limited access toworld market, lackoftrade information inrespect of
availability, price, quality, etc.ofgoods, andlackofwarehouse/port facilities tostoreimported goods
andmaintain proper inventory.
(n) What arethepresent availability andarrangements fortrade finance facilities (e.g.export
credit guarantees, etc.)? Arethere anyperceived deficiencies inthisarea?
Trade finance facilities, particularly intheareaofexport, areasfollows:
(i) pre-shipment financing inlocalcurrency bycommercial banks;
(ii) pre-shipment financing inforeign currency bycommercial banks through Export
Development Fund,
(iii) post-shipment financing bycommercial banks; and
(iv) export Credit Guarantee Scheme administered bySadharan Bima Corporation (i.e.
General Insurance Corporation).
Shortage offunds isamajor deficiency inthisarea. Furthermore theExport Credit Guarantee
Scheme isbedevilled withproblems likedelay insettlement ofclaims, premium payment controversy
andpoorrecovery. Established explorers normally donotfaceanyproblem butnewexporters face
problems ingetting funds asthebanks usually insist onsubmission ofcollateral.WT/LDC/HL/12/Add.1
Page17
(o) What arethemain problems inthewayofimproving export/import management skills
ofyour business enterprises? Doyouhave training programmes inthecountry? What arethe
deficiencies?
Most oftheexporters/importers arenewentrants andsome areintheprocess ofentering.
Theyneedtobeinformed andtrained inrespect oftradelaws, procedure, documentation, procurement
oftradeinformation regarding export, import, indenting andinvestment. Onlylimited training facilities
inthese areas areavailable nthecountry. EPB, BMDC andBIBM inthepublic sector andDCCI
andBASC intheprivate sector areproviding some training. Training facilities available arehowever
notsufficient tocopewiththedemand. These facilities needtobeexpanded onanurgent basis, and
forthispurpose finance, skilled manpower andtechnology arenecessary. Actual training needs are
tobeassessed, target groups aretobemade aware, professional resource persons arctobedeveloped
andattracted, andcoordination hastobeachieved among thetrade promotion bodies.
(p) Does your trade representation service actively promote your trade? What arethe
weaknesses?
Although trade representation service ispresently being actively oriented towards promotion
oftrade, there aresome difficulties which persist. Available trade representation services arelimited
duetolackoffund. Moreover, training oftrade representatives needtobeimproved.
(q) Briefly describe yourtechnical assistance needs intheareaoftrade promotion andsupport
services.
(i) Establishment ofaTrade Point;
(ii) building uptheresearch capability ofvarious trade promoting organizations and
establishing linkage among them;
(iii) strengthening training programmes forskilldevelopment inthepublic aswellasprivate
sector;
(iv) setting upandstrengthening design development centres andquality management
institute/organization;
(v) improving trade finance facilities; and
(vi) building upmodern information technological capability inthecountry.
Market Access
(r) What areyour main market access problems?
Themain market access problems are:
(i) non-tariff andpara-tariff barriers;
(ii) stringent quality andstandards requirements;
(iii) stringent Rules oforigin requirements; and
(iv) strict environmental standards.
(s) What specific problems orbarriers, andinwhich countries, aremost troublesome for
your exporters?
Specific problems faced inmajor export markets areasfollows:WT/LDC/HL/12/Add.1
Page18
USA andCanada
- Quota restriction onRMG
- Stringent quality requirements likeHACCP forfrozen food
- Eco-labelling requirement forRMG
- Useofchild labour
EU
- Stringent (3-stage transformation) Rules ofOrigin requirements forknitted garments
under GSPscheme
- Stringent quality requirements forfrozen food
- Eco-labelling requirement forwoven andknitted garments
- Useofchild labour
India
- Non-tariff andpara-tariff barriers onvarious exports
Other countries
SimilarproblemsarefacedinJapan,AustraliaandNewZealand.Itisapprehendedthattechnical
barriers totrade andsanitary andphytosanitary measures willposeserious market access difficulties
forBangladesh 'sexports inthenearfuture.
(t) Regional andsub-regional trading arrangements (RTAs); please listRTAs towhich your
country belongs. Areyousatisfied withtheperformance withthese RTAS? Please state the
problems ofeach. Doyouhave suggestions onhowtosolve these?
Bangladesh isamember ofthefollowing RTAS:
(i) Bangkok Agreement
(ii) SAARC Preferential Trading Arrangement (SAPTA)
(iii) Bangladesh -India -SriLanka -Thailand Economic Cooperation (BISTEC)
(iv) Developing Countries -8(D-8)
Bangladesh 'sexports toother contracting states havenotincreased significantly under the
Bangkok Agreement. Tariff Concessions exchanged under thisAgreement havebeenconfined toa
limited number ofproducts. Ifthecoverage oftariff concessions isexpanded, thenpositive results
interms oftrade expansion maybeexpected.
Tworounds oftradenegotiations havebeenconducted under SAPTA. Total number ofitems
onwhich tariff concessions havebeenexchanged tillnowexceeds 2000. Efforts havealsobeenmade
forwithdrawal ofnon-tariff barriers inmember states. InsofarasBangladesh isconcerned, the
beneficial impact ofSAPTA onherexport expansion hasbeenverylimited. Amajor reason forthis
hasbeentheinclusion ofalargenumber ofitems oflittleexport interest toBangladesh intheNational
Schedule ofConcessions oftheother member states, andthefactthattariff cutshavenotbeendeep
enough. Stringent Rules ofOrigin havealsohindered export expansion ofBangladesh. Thesituation
canbeexpected toimprove provided thereisgreater political commitment toregional tradeexpansion
within theSAARC region which willhopefully result intheremoval oftheimpediments tointra-regional
trade expansion.
Since D-8andBISTEC havebeenformed onlyveryrecently, itisnotpossible tocomment
onthere performance atthispoint intime.WT/LDC/HL/12/Add.1
Page19
(u) Arethere anyproblems inutilizing theexisting market access preferences, suchasGSP,
GSTP? Please state thenature ofproblems relating toeachofthese.
Yes,thereareproblemsinutilizingmarketaccesspreferencesundertheGSPandGSTPschemes.
These arenoted below:
GSP
- Limited product coverage; someoftheGSPschemes exclude products ofexport interest
toBangladesh;
- stringent Rules ofOrigin criteria which isdifficult forBangladesh tomeet;
- procedural complexities; and
- frequent changes inthescheme.
GSTP
- Product coverage andmargin oftariff preferences arelimited;
- existence ofnon-tariff barriers forsome products;
- stringent Rules ofOrigin criteria; and
- complicated procedures tobefollowed foravailing thescheme
(v) What areyour technical assistance needs withrespect tomarket access?
- In-depth analysis ofthepresent market access problems inmajor export markets andfinding
ways ofovercoming them;
- advisory support forproduct development &product diversification;
- sponsoring product-wise marketing missions andparticipation ininternational trade fairs;
- strengthening institutions andprocedures relating toquality control;
- establishing design development centres andfashion institutes; and
- lobbyingsupportforrationalizingGSPandGSTPschemesinfavourofleast-developedcountries
(e.g.increasing theproduct coverage, relaxing Rules ofOrigin criteria, etc.).
C. Technical Assistance
Technical assistance isnormally provided todeveloping andleast-developed countries tobuild
orenhance theirhuman resources andinstitutional capacities, provide trade information and
trade-related legalsupport, aswellasimprove theirsupply capabilities inorder tomake them
more active players inthefieldofmultilateral trade.
(a) Totheextent thiskindofinformation iseasily available, could youplease briefly describe
what trade-related assistance youhave received over thepastfiveyears from bilateral and
multilateral sources andwhatprojects/programmes arepresently under consideration inthisarea?
Major trade-related assistance received along withtheirsources arelisted below:
(i) Institutional Development ofBangladesh Tariff Commission (Phase-1) -World Bank
(ii) Institutional Development ofBangladesh Tariff Commission (Phase-2) -World Bank
(iii) Uruguay Round Study Project -TJNDP
(iv) Excise, Taxes andCustoms DataComputerization (ETAC) -World Bank
(v) Export Development Project -World Bank
(vi) Export Development Fund -World Bank
(vii) Export Credit Guarantee Scheme -USAIDWT/LDC/HL/12/Add.1
Page20
(viii) Export Development andPromotion -UNDP/ITC
(ix) DCCI -ZDH Partnership Project (forproviding training toSMES) funded byGerman
Federation ofSmall Business
(x) DCCI -GTZ Business Advisory Service Project
(xi) Technical Assistance totheBangladesh Finished Leather andLeather Goods Exporters '
Association -European Union
(xii) Technical Assistance toBangla -Craft (Handicraft industry) -European Union.
(b) Please summarize your technical assistance needs aswellasother needs asreflected in
thischeck-list. Please rank them interms ofpriority.
Technical assistance needs aswellasother needs aresummarized andpresented below interms
oftheirpriority (number indicates rank):
1. Institutional strengthening andhuman resource development inrelevant Ministries and
Government agencies, particularly Ministry ofCommerce anditsaffiliated agencies, to
effectively handle work relating tocompliance with various WTO Agreements. More
specifically, thiswillinvolve beefing upnational capacity formeeting product standards and
technical regulations requirements inmajor export markets ofBangladesh, establishing the
administrative mechanisms required toconduct investigations andcomplete other formalities
related tothelevying ofsafeguard measures, anti-dumping duties andcounter-veiling duties,
establishing "enquiry points", changing existing national legislation intheareaofintellectual
property righttobring themintoconformity withtheprovisions oftheAgreement onTRIPS,
strengthen selected service sub-sectors (e.g., telecommunications financial services, etc.),
stepping upresearch efforts toenhance agricultural productivity, etc.
2. Development ofphysical infrastructure.
3. Advisory andsupport services fordeveloping newexport products andimproving thequality,
design andpackaging ofexisting export products.
4. Developing amodern trade information network including establishment ofaTrade Point.
5. Investment promotion withparticular emphasis onimprovement oftrade finance facilities.
6. In-depth analysis ofmarket access problems faced inmajor export markets andfinding ways
ofovercoming these.
7. Strengthening theexisting institutional set-up anddeveloping human resources tofacilitate
transfer, development andacquisition ofappropriate technology.
8. Training forskilldevelopment ofofficials serving intradepromotion organizations inthepublic
andprivate sectors.
9. Building upinstitutional capability informulation andimplementation oftradepolicy matters.
10. Sponsoring product-wise marketing missions abroad andparticipation ininternational trade
fairs.WT/LDC/HL/12/Add.1
Page21
(c) Inthelight oftheinformation youhave been abletoprovide sofarinresponse tothe
questions inthischecklist, what types ofinformation are,inyourview, stillmissing orcould be
improved upon? Inorder toassist youinproviding thismissing information, would youneed
technical assistance?
Questions inthischeck-list havecomprehensively covered allrelevant areas andhence, inour
view, noinformation ismissing.
(d) Does your country have thetechnological capacity andhuman resources tomake useof
thenewinformation/communication technology toolssuchasCD-ROM, theInternet etc.? What
assistance would youneedtoenable yourcountry tousethese toolsinthecontext oftraining and,
more generally, inthecontext oftrade development?
Bangladesh haslimited technological capacity andhuman resources tomake useofthenew
information/communication technology tools suchasCD-ROM, theInternet, etc.
Assistance isneeded forundertaking extensive training programmes inthisareaaswellasfor
making trade-related software andinfrastructural facilities easily available.WT/LDC/HL/12/Add.1
Page22
Integrated Response
Technical assistance needs identified
inthequestionnaireOrganization Response
Inresponse toquestion A(k):
Technical assistance requirements as
regards compliance withWTO
Agreements
Bangladesh needs technical assistance
forinstitutional development aswell
asforhuman resources development
intheareaoftrade policy
administration andtrade facilitation.
More specifically, Bangladesh needs
technical assistance inthefollowing
areas tocomply withtheWTO
Agreements:
-Tosetupcellsorfocal points inthe
relevant Ministries tocarry outwork
related totheWTO Agreements.
Thiswill,interalia,ensure that
notification andother WTO
obligations arefullyimplemented.
-Tostrengthen theMinistry of
Commerce anditsaffiliated agencies
(liketheBangladesh Tariff
Commission andtheExport
Promotion Bureau) toenhance their
capacities toeffectively handle the
increasing volume ofWTO related
work.UNCTAD UNCTAD willprovide training and
advisory services withaviewto
responding tothepriority needs of
selected Government andcreating
capacities inselected institutions. It
willorganize training seminars for
trainers ontrade policy matters.*
(ICP, Obj.2.1)
(These activities areplanned tobe
undertaken under theGovernment 's
Integrated Country Programme -ICP
-ForStrengthening theSupply
Capacity ForExportable Goods and
Services. (1997-2002). ThisICPhas
beendeveloped following an
UNCTAD ledinter-agency mission
involving ITC, UNDP, andESCAP,
which visited Bangladesh inMay-
June1997).
*Funds arerequested.WT/LDC/HL/12/Add.1
Page23
Technical assistance needs identified
inthequestionnaireOrganization Response
Question A(k)(cont.) :
-Totrainofficials inrelevant
Ministries, particularly theMinistry
ofCommerce, andthevarious
chambers ofcommerce andindustry
toenable them tofullycomprehend
thecomplexities oftheWTO
Agreements andthereby effectively
dealwiththem.UNDP Through itsExport Development and
Promotion project, UNDP is
currently strengthening thecapacity
oftheoftheExport andPromotion
Bureau (byproviding itwith
adequate legalandfunctional
powers) toeffectively discharge its
roleasthenational co-ordination
agency forexport development and
export promotion. Although WTO
wascreated afterthedesign ofthis
project, itisnotexcluded thatinthe
framework ofitsimplementation
some training activities becarried
outspecifically tostrengthen the
capacity oftheEPBtohandle WTO
related work.
World Bank TheWorld Bank intends thatthe
project currently being negotiated
willbecome operational in1998. It
willprovide stafftraining and
outside consultants toaugment the
capacity oftheCommerce Ministry
toanalyze trade policy issues andof
theBTC toconduct investigations
under thesafeguard, anti-dumping
andcountervailing dutyprovisions of
theWTO agreements. Other
elements oftheproject are
mentioned under A(l), A(m), B(g),
B(q)andB(v).
*Funds arerequested.WT/LDC/HL/12/Add.1
Page24
Technical assistance needs identified
inthequestionnaireOrganization Response
Question A(k)(cont.) :
WTO 1.With respect tostrengthening
human resources thefollowing
willbeundertaken bytheWTO :
-Regional specialized workshops
onspecific WTO agreements
willbeorganized forEnglish-
speaking Least-Developed
countries inAsiaandinthe
Pacific (1998 and1999).
-Athree-week trade policy
course forEnglish-speaking
Least-Developed countries
(including Bangladesh) willbe
held(1998 and1999).
Thiscourse willcontain general
training forenhancing negotiating
skills forparticipation inmultilateral
trade negotiations.
2.With respect toimplementation of
theWTO Agreements :
-Assistance willbeprovided to
Bangladesh forthedrafting /
alignment ofitsownlegislation
toWTO obligations intheareas
ofanti-dumping, safeguards
andcustoms valuation aswell
asTRIPS (seeA(l)) aswellas
foritsnotification requirements
(1998-2000)
ITC Training ofofficials and
management personnel hasbeenand
willcontinue tobeprovided by
means ofdissemination seminars on
URagreements under theITC
Uruguay Round Follow-up
Programme.
*Funds arerequested.WT/LDC/HL/12/Add.1
Page25
Technical assistance needs identified
inthequestionnaireOrganization Response
Inresponse toquestion A(l):
Technical assistance needs asregards
specific WTO Agreements
Bangladesh hastechnical assistance
needs inalltheWTO Agreements
specified:
Market Access: Bangladesh would
benefit from technical assistance in
designing theextent, sequence, and
timing ofliberalization which willbe
inconformity withherliberalization
obligations under theUruguay Round
Agreement, taking duenoteofthe
transitional periods provided forunder
some Agreements andtowhich sheis
entitled asaleast-developed countryWTO Please refertoA(k)
Agreement inAgriculture:
Bangladesh needs technical assistance
toenhance agricultural production and
alsotoexamine theissue of
subsidizing agricultural production in
thecountry without violating WTO
rules
Safeguards: Bangladesh needs
technical assistance toestablish an
administrative procedure andset-up to
conduct investigations -thatasudden
increase inexports (both absolute and
relative todomestic production) -has
caused orthreatens tocause serious
injury tothedomestic industry, which
would beinconformity withWTO
rules andregulations.World Bank Please refertoA(k)
*Funds arerequested.WT/LDC/HL/12/Add.1
Page26
Technical assistance needs identified
inthequestionnaireOrganization Response
Question A(l)(cont.):
WTO Assistance willbeprovided to
Bangladesh during theperiod
1998/2000; thisassistance will
consist intraining national
administration staffresponsible for
theimplementation ofthis
Agreement.
Anti-Dumping: Technical assistance
isneeded tosetupandstrengthen the
administrative machinery inorder to
fulfil twoconditions. First,
investigations which would establish
beyond anydoubt thatincreased
imports arecausing material injury.
Second, suchinvestigation canbe
"ordinarily" initiated onlyafterthe
submission ofapetition bythe
affected domestic industry, and
furthermore, evidence hastobe
furnished totheeffect thatmaterial
injury isbeing caused toproducers
accounting foratleast25percentof
totaldomestic production.World Bank Please refertoA(k)
WTO Assistance willbeprovided to
Bangladesh during theperiod
1998/2000; thisassistance will
comprise: a)assessment ofthe
requesting country needs inthe
contingent trade remedies area; b)on
thebasis oftheresults ofthis
assessment,technical assistance will
beprovided on:
(i)drafting national legislation;
(ii)establishing domestic trade
remedy system
(iii)training national administration
staffresponsible forthe
implementation ofthetrade remedy
system
*Funds arerequested.WT/LDC/HL/12/Add.1
Page27
Technical assistance needs identified
inthequestionnaireOrganization Response
Question A(l)(cont.):
Customs Valuation: Technical
assistance isneeded tofacilitate the
change-over totheWTO Customs
Valuation System -which willinvolve
bringing about changes inrelevant
rules andprocedures, further
modernization andcomputerization of
customs procedures, andtraining of
officials.IMF IMFtoprovide assistance:
1)Toreview andupdate customs
legislation andregulations toalign
them toWTO rules andstandards
including aligning thecustoms
valuation system toWTO
requirements and,
2)Torationalize theimport tariff
andcoordinate itwiththe
domestic indirect taxsystem, to
assure efficient collection of
revenues (1998: commitment in
principle)
UNCTAD ASYCUDA hasalready been
installed inBangladesh. Inthe
future, UNCTAD willreview the
current customs operations witha
viewtostrengthening custom
management andfacilitating
procedures inareas notincluded in
thefirstASYCUDA project.
UNCTAD willtraincustoms staff
andbrokers tomake maximum use
oftheASYCUDA++ system and
willassist inimplementing
ASYCUDA++ inanation-wide
coverage.* (ICP, Obj.3.5)
World Bank Theproject under development will
identify operational, monitorable
programs thatwillimprove the
efficiency ofcustoms administration
(seeA(k)).
WTO Assistance willbeprovided to
Bangladesh during theperiod
1998/2000 foraligning customs
valuation legislation withWTO
Agreement.
*Funds arerequested.WT/LDC/HL/12/Add.1
Page28
Technical assistance needs identified
inthequestionnaireOrganization Response
Question A(l)(cont.):
Agreement onTechnical Barriers to
Trade: Bangladesh neither hasthe
expertise northeinstitutional
machinery thatisneeded formeeting
standards andtechnical regulations
requirements ascontained inthe
Agreement.World Bank Theproject willinclude assistance to
develop enterprise andindustry level
capacity tomeetISO9000 standards.
Emphasis onsupport atthe
enterprise andindustry level.
(seeA(k))
Agreement onSanitary and
Phytosanitary Measures: Technical
assistance isrequired foragricultural
products tocomply withsanitary and
phytosanitary regulations applicable in
theimporting countries tofacilitate
market access. Furthermore,
"enquiry points" havetobesetup.
Finally, SPSregulations havetobe
firmed upinBangladesh inorder to
protect herhuman, animal, andplant
lifeorhealth.ITC Atechnical workshop onthissubject
willbeorganised under the
Integrated Country Programme for
Strengthening Supply Capacity for
Exportable Goods andServices of
Bangladesh (ICP).*
World Bank Theproject willinclude assistance to
enterprises andtoindustry
associations tomeetproduct
standards inmajor export markets --
toconduct thetestsnecessary to
demonstrate compliance; also
assistance todevelop anational-level
standards accrediting agency
(seeA(k)).
Agreement onTRIPS: Technical
assistance isrequired forreviewing
andappropriately changing national
lawsandregulations relating tothe
protection ofintellectual property
rights. Furthermore, the
administrative machinery required for
enforcement ofintellectual property
rights needs tobeputinplace before
theendofthetransitional period.WTO Assistance willbeextended to
Bangladesh inaccordance withthe
Cooperation Agreement between
WIPO andWTO providing for
WIPO legal-technical assistance
relating totheTRIPS Agreement.
*Funds arerequested.WT/LDC/HL/12/Add.1
Page29
Technical assistance needs identified
inthequestionnaireOrganization Response
Question A(l)(cont.):
Agreement onTrade inServices:
Technical assistance could beusedto
develop computer skills inthecountry
sothatcompute services like
accounting anddoing simple
administrative work could beexported
toforeign companies, particularly air
andinsurance companies, whoare
looking todeveloping andleast-
developed countries togetsuchwork
doneatlower cost.ITC Atechnical workshop willbe
organised inlate1997 toenhance the
awareness oftheexport potential of
services attheGovernment, trade
association andenterprise levels and
toprovide training inhowto
approach newmarkets.
*Funds arerequested.WT/LDC/HL/12/Add.1
Page30
Technical assistance needs identified
inthequestionnaireOrganization Response
Inresponse toquestion A(m):
Assessment oftheexisting trade
analysis andnegotiating capacities
Bangladesh, likemany LDCs, suffers
seriously from constricted access to
current andcomprehensive trade
related information. Technical
assistance interms ofsetting upofa
trade databaseandalsodeveloping
adequate human resources capable of
using thefacility maygenerate a
number ofpositive externalities.ITC Thetrade information services ofthe
institutions concerned willbe
strengthened under theIntegrated
Country Programme* mentioned
under A(l)bymeans ofconsultancy
andtraining.
ITC/
UNCTADATrade Point hasbeenestablished
inDacca. TheTrade Point willbe
made operational toserve the
business community andthe
Government incooperation withthe
chambers ofcommerce. (ICP, Obj.
2.5)
UNCTAD Assistance totrade analysis will
continue tobeprovided through the
TRAINS CD-ROM.
Assistance initsusewillbeprovided
through advisory missions and
workshops.*
*Funds arerequested.WT/LDC/HL/12/Add.1
Page31
Technical assistance needs identified
inthequestionnaireOrganization Response
Question A(m) (cont.):
UNDP Under theExport Development and
Promotion project, UNDP istoset
upanetwork ofmarket intelligence
andtrade information onselected
markets andproducts ofspecific
interest toBangladesh andavailable
tomanufacturers/exporters. Itis
alsostrengthening theChittagong
Trade information Centre andplans
toestablish trade information units in
EPBbranch offices inKhuna and
Rajshahi. EPBstaffwillbetrained
incollection, processing, analysis
anddissemination oftrade
information, including management
ofelectronic database andsources.
World Bank Theproject willprovide support for
enterprises andforindustry
associations toidentify theproblems
theyface, todevelop remedies for
those problems thatarebestresolved
atanenterprise levelandto
effectively represent theirviews to
government onnegotiating and
general policy issues (seeA(k)).
*Funds arerequested.WT/LDC/HL/12/Add.1
Page32
Technical assistance needs identified
inthequestionnaireOrganization Response
Inresponse toquestion B(g):
Technical assistance needs asregards
supply constraints
(i)Investment promotion, particularly
providing funds forfinancing exportUNCTAD UNCTAD willreview the
Bangladesh investment environment,
including policies, laws, incentives,
andinstitutional structures (including
EPZs), usedtoattract foreign
investment, taking intoaccount the
experience ofneighbouring countries
andinternationally established best
practices ininvestment promotion.*
World Bank Astudy isunder waytodetermine
howserious problems oftrade
financing areandhowtosolve them.
(ii)Development ofphysical
infrastructure (e.g.telecommunication
services, portandtransport facilities,
etc.)UNCTAD TheRail-Tracker component of
UNCTAD 'sAdvance Cargo
Information System (ACIS) has
already beeninstalled inBangladesh
Railways. Itcould beextended to
linkthephysical points toother
transport modes onthebasis of
existing software.*
*Funds arerequested.WT/LDC/HL/12/Add.1
Page33
Technical assistance needs identified
inthequestionnaireOrganization Response
Question B(g)(cont.):
World Bank TheWorld Bank willsupport astudy
ofportmodernisation.
TheWorld Bank willsupport astudy
toidentify andquantify needs.
TheWorld Bank willsupport astudy
onroadrehabilitation and
maintenance: improving roads,
bridges essential forefficiency inthe
transport ofindustrial, agricultural,
export andimport goods.
TheWorld Bank willsupport astudy
ontelecommunications sector
reform.
Allofthese studies areintended to
develop specific investment
programs.
(iii)Human resources development
through providing training onskill
development forgovernment officials
serving intrade-related organizations
aswellasmanagement personnel and
production workers intheprivate
sectorITC Please refertoA(l). Training
opportunities willbeoffered toboth
government officials andpersonnel
concerned intheprivate sector by
means ofdirect training, training of
trainers andcurricula development.
UNCTAD Through theTraining forTrainers
(TFT) programmes, UNCTAD will
increase themanagement skills of
private operators aswellasthose of
officials intrade-related public
organizations. (ICP, Obj.2.4)
UNDP Through itsExport Development and
Promotion project, UNDP is
assisting theTrade Representation
Service inupgrading itscapacity for
promoting Bangladesh exports.
World Bank Please refertoA(l)
WTO Please refertoA(k)
*Funds arerequested.WT/LDC/HL/12/Add.1
Page34
Technical assistance needs identified
inthequestionnaireOrganization Response
Question B(g)(cont.):
(iv)Streamlining andsimplifying legal
andadministrative procedures relating
totrade through undertaking legaland
administrative reformUNCTAD UNCTAD willcarry outatrade
efficiency assessment withaviewto
simplifying trade formalities,
procedures andoperations.
World Bank Theprojects listed under A(k)above
willprovide assistance toidentify
procedural constraints onexport.
WTO Please refertoA(k)
(v)Advisory andsupport services in
theareaofdeveloping newexport
products andimproving thequality of
existing export products, product
design improvement, packaging, etc.ITC Newproducts willbeidentified for
product development andadaptation
under theICP.*
UNDP Oneoftheobjectives oftheUNDP
Export Development andPromotion
project, istopromote theexpansion
anddiversification ofexport product
baseandmarkets forselected
product groups (ready-made
garments, knitwear/hosiery, leather
andleather product, electronic,
vegetable andfresh fruits, ceramic
Tableware, stuffed Toys, Jewellery).
Thiswilldonebyimproving product
development andadaptation, quality
control, design andpackaging at
enterprise level; enlarging their
existing export market shares and
disseminating thefindings and
recommendations within theindustry
forobtaining multiplier effect within
theindustry, andgovernment for
appropriate policies andmeasures.
World Bank Theprograms listed under A(k)
above willsupport private sector
expenditures toimprove design,
packaging, marketing, etc.
(vi)Developing trade information
network systemITC/
UNCTADPlease refertoA(m)
*Funds arerequested.WT/LDC/HL/12/Add.1
Page35
Technical assistance needs identified
inthequestionnaireOrganization Response
Question B(g)(cont.):
UNDP Please refertoA(m)
World Bank Theprograms listed under A(k)
above willsupport development of
non-governmental information
systems, e.g.,among enterprises,
industry associations.
(vii)Establishing aninstitutional set-
upwhich willfacilitate transfer,
development andacquisition of
appropriate technologyUNCTAD UNCTAD willprepare anintegrated
project oninvestment,
entrepreneurship development and
technology, withasitsmain
objectives:
(a)theenhancement ofthelegaland
institutional environment relating to
investment flows. SeealsoB(g)(i)
(b)thefacilitation oftheintegration
ofscience, technology and
innovation policies withdevelopment
strategies and
(c)enhancing thetechnological
capacity building andstrengthening
theirrelevance totherestofthe
economy.* (ICP, Obj.3.4)
World Bank Theprograms listed under A(k)
above willinclude sub-sector
programs tosupport technology
acquisition attheenterprise, industry
level.
(viii) Labour market development
(ix)Multilateral donor agencies may
persuade Governments ofdeveloped
anddeveloping countries toencourage
theirinvestors through fiscal and
other incentives toinvest inleast-
developed countries likeBangladesh.
*Funds arerequested.WT/LDC/HL/12/Add.1
Page36
Technical assistance needs identified
inthequestionnaireOrganization Response
Inresponse toquestion B(q):
Technical assistance needs inthearea
oftrade promotion andsupport
services
(i)Establishment ofaTrade Point ITC/
UNCTADTheExport Promotion Bureau will
beassisted tostrengthen the
functions tobecarried outbythe
Trade Point under ICP(Obj. 2.5).
Please refertoA(m)
(ii)Building uptheresearch capability
ofvarious trade promoting
organizations andestablishing linkage
among themITC Training andconsultancy willbe
provided totheinstitutions
concerned under theICP.*
World Bank Projects listed under A(k)above will
support development of
non-governmental information
systems, e.g.,among enterprises,
industry associations
(iii)Strengthening training programs
forskilldevelopment inthepublic as
wellasprivate sectorITC Please refertoB(g).
UNCTAD Thiswillbeundertaken under the
TRAINFORTRADE program.*
(ICP, Obj.2.4)
*Funds arerequested.WT/LDC/HL/12/Add.1
Page37
Technical assistance needs identified
inthequestionnaireOrganization Response
Question B(q)(cont.) :
World Bank Projects listed under A(k)will
include:
Ingovernment ministries: support to
increase capacity tomanage
WTO-related policy matters
IntheBangladesh Tariff
Commission: support toincrease
capacity todoeconomic analysis of
tariffs andother trade instruments,
toconduct safeguard andother
WTO-sanctioned trade remedy
investigations.
Intheprivate sector: support to
increase capacity toidentify andto
analyze business opportunities
WTO Please refertoA(k)
(iv)Setting upandstrengthening
design development centres and
quality management
institute/organizationITC Please refertoB(g)
World Bank Please refertoB(g)(v)
(v)Improving trade finance facilities World Bank Please refertoB(g)(i)
(vi)Building upmodern information
technological capability inthecountryWorld Bank Please refertoB(g)(vi)
WTO Onecomputer willbeprovided by
theWTO tothefocal point onWTO
matters intheTrade Ministry .This
includes alinkuptoInternet (1998).
Training onaccess anduseof
Internet resources andofCDRoms
willbeprovided toBangladesh
(1998).
*Funds arerequested.WT/LDC/HL/12/Add.1
Page38
Technical assistance needs identified
inthequestionnaireOrganization Response
Inresponse toquestion B(v):
Technical assistance asregards market
access
-In-depth analysis ofthepresent
market access problems inmajor
export markets andfinding ways of
overcoming themITC Under ICP,market demand studies
willbecarried out,onbasis of
which export strategies topenetrate
target markets willbeformulated.
UNCTAD Thecountry willbenefit from the
GSPProgramme which aimsat
increasing GSPutilization witha
better understanding oftrade laws
governing market access conditions
inmajor markets. Information on
GSPandother preferential tariffs are
available intheTRAINS CD-ROM
which isavailable toBangladesh.
UNDP Through itsExport Development and
Promotion project, UNDP isalso
assisting thegovernment andthe
private sector increase their
knowledge ofmarket access
requirements, competition and
conditions intarget export markets.
Itisalsosupporting activities
designed totestthetarget market for
export opportunities.
World Bank Please refertoB(g)(v) andB(g)(vi)
-Advisory support forproduct
development &product diversificationITC Please refertoB(g)andB(q)
World Bank Please refertoB(g)(v) andB(g)(vi)
-Sponsoring product-wise marketing
missions andparticipation in
international trade fairsITC Please refertoB(g)andB(q)
World Bank Theproject listed under a(k)above
willinclude support forproduct-wise
marketing missions, withemphasis
onprivate sector participation.
*Funds arerequested.WT/LDC/HL/12/Add.1
Page39
Technical assistance needs identified
inthequestionnaireOrganization Response
Question B(v)(cont.) :
-Strengthening institutions and
procedures relating toquality controlITC Please refertocomments under B(g)
World Bank Theproject willinclude assistance to
enterprises andtoindustry
associations tomeetproduct
standards inmajor export markets --
toconduct thetestsnecessary to
demonstrate compliance; also
assistance todevelop anational-level
standards accrediting agency
(seeA(k)).
-Establishing design development
centres andfashion institutesITC Please refertocomments under
B(g).
World Bank Please refertoB(g)(v) andB(g)(vi)
-Lobbying support forrationalizing
GSPandGSTP schemes infavour of
least-developed countries (e.g.
increasing theproduct coverage,
relaxing Rules ofOrigin criteria, etc.)UNCTAD UNCTAD willprovide support in
GSP/GSTP through studies, advisory
services, andtraining programs.
Additional resources needed to
complement existing programs.*
*Funds arerequested.WT/LDC/HL/12/Add.1
Page40
Technical assistance needs identified
inthequestionnaireOrganization Response
Inresponse toquestion C(b):
Summary oftechnical assistance needs
according topriority
1.Institutional strengthening and
human resources development in
relevant Ministries andGovernment
agencies, particularly Ministry of
Commerce anditsaffiliated agencies,
toeffectively handle work relating to
compliance withvarious WTO
Agreements. More specifically, this
willinvolve beefing upnational
capacity formeeting product
standards andtechnical regulations
requirements inmajor export markets
ofBangladesh, establishing the
administrative mechanism required to
conduct investigations andcomplete
other formalities related tothelevying
ofsafeguard measures, anti-dumping
duties andcounter-veiling duties,
establish "enquiry points", changing
existing national legislation inthearea
ofintellectual property rights tobring
them intoconformity withthe
provisions oftheAgreement on
TRIPs, strengthen selected service
sub-sectors (e.g.telecommunication,
financial services, etc.), stepping up
research efforts toenhance
agricultural productivity, etc.IMF IMFtogiveassistance:
1)Toreview andupdate customs
legislation andregulations toalign
them toWTO rules andstandards
including aligning thecustoms
valuation system toWTO
requirements and,
2)Torationalize theimport tariff
andcoordinate itwiththe
domestic indirect taxsystem, to
assure efficient collection of
revenues (1998: commitment in
principle)
*Funds arerequested.WT/LDC/HL/12/Add.1
Page41
Technical assistance needs identified
inthequestionnaireOrganization Response
Question C(b)(cont.) :
ITC Training hasbeenandwillcontinue
tobeprovided bymeans of
dissemination seminars onUR
agreements under theITCUruguay
Round Follow-up Programme.
Atechnical workshop onSanitary
andPhytosanitary Measures willbe
organised under theIntegrated
Country Programme for
Strengthening Supply Capacity for
Exportable Goods andServices of
Bangladesh (ICP).*
UNCTAD UNCTAD willprovide training and
advisory services withaviewto
responding tothepriority needs of
selected Government andcreating
capacities inselected institutions. It
willorganize training seminars for
trainers ontrade policy matters.*
(ICP, Obj.2.1)
(These activities areplanned tobe
undertaken under theGovernment 's
Integrated Country Programme -ICP
-ForStrengthening theSupply
Capacity ForExportable Goods and
Services. (1997-2002). ThisICPhas
beendeveloped following an
UNCTAD ledinter-agency mission
involving ITC, UNDP, andESCAP,
which visited Bangladesh inMay-
June1997.)
UNCTAD willimplement the
TRAINFORTRADE program.*
*Funds arerequested.WT/LDC/HL/12/Add.1
Page42
Technical assistance needs identified
inthequestionnaireOrganization Response
Question C(b)(cont.) :
World Bank TheWorld Bank intends thatthe
project currently being negotiated
willbecome operational in1998. It
willprovide stafftraining and
outside consultants toaugment the
capacity oftheCommerce Ministry
toanalyze trade policy issues andof
theBTC toanalyze tariff issues, to
conduct investigations under the
safeguard, anti-dumping and
countervailing dutyprovisions ofthe
WTO agreements.
C(b)1 (Continued...) WTO 1.With respect tostrengthening
human resources thefollowing
willbemade bytheWTO :
-Regional specialized workshops
onspecific WTO agreements
willbeorganized forEnglish-
speaking Least-Developed
countries inAsiaandinthe
Pacific (1998 and1999).
-Athree-week trade policy
course forEnglish-speaking
Least-Developed countries
(including Bangladesh) willbe
held(1998 and1999).
Thiscourse willcontain general
training forenhancing negotiating
skills forparticipation inmultilateral
trade negotiations.
2.With respect toimplementation of
theWTO Agreements :
-Assistance willbeprovided to
Bangladesh forthedrafting /
alignment ofitsownlegislation
toWTO obligations aswellas
forits
notification requirements (1998-
2000).
*Funds arerequested.WT/LDC/HL/12/Add.1
Page43
Technical assistance needs identified
inthequestionnaireOrganization Response
Question C(b)(cont.) :
Assistance willbeprovided to
Bangladesh onthesubject of
Safeguards during theperiod
1998/2000; thisassistance will
consist intraining national
administration staffresponsible for
theimplementation ofthis
Agreement
Assistance willbeprovided to
Bangladesh onAnti-Dumping issues
during theperiod 1998/2000; this
assistance willcomprise: a)
assessment oftherequesting country
needs inthecontingent trade
remedies area; b)onthebasis ofthe
results ofthisassessment,technical
assistance willbeprovided on:
(i)drafting national legislation;
(ii)establishing domestic trade
remedy system
(iii)training national administration
staffresponsible forthe
implementation ofthetrade remedy
system
Assistance willbeprovided to
Bangladesh during theperiod
1998/2000 foraligning customs
valuation legislation withWTO
Agreement.
Assistance willbeextended to
Bangladesh inaccordance withthe
Cooperation Agreement between
WIPO andWTO providing for
WIPO legal-technical assistance
relating totheTRIPS Agreement.
*Funds arerequested.WT/LDC/HL/12/Add.1
Page44
Technical assistance needs identified
inthequestionnaireOrganization Response
Question C(b)(cont.) :
2.Development ofphysical
infrastructureUNCTAD TheRail-Tracker component of
UNCTAD 'sAdvance Cargo
Information System (ACIS) has
already beeninstalled inBangladesh
Railways. Itcould beextended to
linkthephysical points toother
transport modes onthebasis of
existing software.*
World Bank TheWorld Bank willsupport astudy
ofportmodernisation.
TheWorld Bank willsupport astudy
toidentify andquantify needs.
TheWorld Bank willsupport astudy
onroadrehabilitation and
maintenance: improving roads,
bridges essential forefficiency inthe
transport ofindustrial, agricultural,
export andimport goods.
TheWorld Bank willsupport astudy
ontelecommunications sector
reform.
Allofthese studies areintended to
develop specific investment
programs.
3.Advisory andsupport services for
developing newexport products and
improving thequality, design, and
packaging ofexisting export productsITC Training opportunities willbe
offered topersonnel concerned inthe
private sector bymeans ofdirect
training.
Newproducts willbeidentified for
product development andadaptation
under theICP.
World Bank Theprograms listed under A(k)
above willsupport private sector
expenditures toimprove design,
packaging, marketing, etc.
*Funds arerequested.WT/LDC/HL/12/Add.1
Page45
Technical assistance needs identified
inthequestionnaireOrganization Response
Question C(b)(cont.) :
Theprograms listed under A(k)
above willsupport development of
non-governmental information
systems, e.g.,among enterprises,
industry associations.
4.Developing amodern trade
information network including
establishment ofaTrade PointITC/
UNCTADATrade Point hasbeenestablished
inDacca. TheTrade Point willbe
made operational toserve the
business community andthe
Government incooperation withthe
chambers ofcommerce. (ICP, Obj.
2.5)
5.Investment promotion with
particular emphasis onimprovement
oftrade finance facilitiesUNCTAD UNCTAD willreview the
Bangladesh investment environment,
including policies, laws, incentives,
andinstitutional structures (including
EPZs) usedtoattract foreign
investment, taking intoaccount the
experience ofneighbouring countries
andinternationally established best
practices ininvestment promotion.*
*Funds arerequested.WT/LDC/HL/12/Add.1
Page46
Technical assistance needs identified
inthequestionnaireOrganization Response
Question C(b)(cont.) :
UNCTAD willprepare anintegrated
project oninvestment,
entrepreneurship development and
technology, withasitsmain
objectives:
(a)theenhancement ofthelegaland
institutional environment relating to
investment flows. SeealsoB(g)(i)
(b)thefacilitation oftheintegration
ofscience, technology and
innovation policies withdevelopment
strategies and
(c)enhancing thetechnological
capacity building andstrengthening
theirrelevance totherestofthe
economy.*
(ICP, Obj.3.4)
World Bank Astudy isunder waytodetermine
howserious problems oftrade
financing areandhowtosolve them.
6.In-depth analysis ofmarket access
problems faced inmajor export
markets andfinding ways to
overcome theseITC Under ICPmarket demand studies
willbecarried out,onbasis of
which export strategies topenetrate
target markets willbeformulated.
UNCTAD Thecountry willbenefit from the
GSPProgramme which aimsat
increasing GSPutilization witha
better understanding oftrade laws
governing market access conditions
inmajor markets. Information on
GSPandother preferential tariffs are
available intheTRAINS CD-ROM
which isavailable toBangladesh.
UNCTAD willprovide support in
GSP/GSTP through studies, advisory
services, andtraining programs.
Additional resources needed to
complement existing programs.*
*Funds arerequested.WT/LDC/HL/12/Add.1
Page47
Technical assistance needs identified
inthequestionnaireOrganization Response
Question C(b)(cont.) :
World Bank Theprograms listed under A(k)
above willsupport private sector
expenditures toimprove design,
packaging, marketing, etc.
7.Strengthening theexisting
institutional set-up anddeveloping
human resources tofacilitate transfer,
development andacquisition of
appropriate technology.UNCTAD UNCTAD willprepare anintegrated
project oninvestment,
entrepreneurship development and
technology.
(a)theenhancement ofthelegaland
institutional environment relating to
investment flows. SeealsoB(g)(i)
(b)thefacilitation oftheintegration
ofscience, technology and
innovation policies withdevelopment
strategies and
(c)enhancing thetechnological
capacity building andstrengthening
theirrelevance totherestofthe
economy.*
(ICP, Obj.3.4)
World Bank Theprograms listed under A(k)
above willinclude sub-sector
programs tosupport technology
acquisition attheenterprise, industry
level.
8.Training forskilldevelopment of
officials serving intrade promotion
organizations inthepublic andprivate
sectorsITC Training opportunities willbe
offered tobothgovernment officials
andpersonnel concerned inthe
private sector bymeans ofdirect
training, training oftrainers and
curricula development.
UNCTAD Through the"Training forTrainers"
Programme, UNCTAD willincrease
themanagement skills ofprivate
operators aswellasthose ofofficials
intrade-related public organizations.
(ICP, Obj.2.4)
*Funds arerequested.WT/LDC/HL/12/Add.1
Page48
Technical assistance needs identified
inthequestionnaireOrganization Response
Question C(b)(cont.) :
World Bank Projects listed under A(k)above will
support development of
non-governmental information
systems, e.g.,among enterprises,
industry associations
9.Building upinstitutional capability
informulation andimplementation of
trade policy mattersUNCTAD UNCTAD willprovide training and
advisory services withaviewto
responding tothepriority needs of
selected Government andcreating
capacities inselected institutions. It
willorganize training seminars for
trainers ontrade policy matters.*
(ICP, Obj.2.1)
(These activities areplanned tobe
undertaken under theGovernment 's
Integrated Country Programme -ICP
-ForStrengthening theSupply
Capacity ForExportable Goods and
Services. (1997-2002). ThisICPhas
beendeveloped following an
UNCTAD ledinter-agency mission
involving ITC, UNDP, andESCAP,
which visited Bangladesh inMay-
June1997.)
UNCTAD willimplement the
TRAINFORTRADE program.*
*Funds arerequested.WT/LDC/HL/12/Add.1
Page49
Technical assistance needs identified
inthequestionnaireOrganization Response
Question C(b)(cont.) : World Bank Projects listed under A(k)will
include:
Ingovernment ministries: support to
increase capacity tomanage
WTO-related policy matters
IntheBangladesh Tariff
Commission: support toincrease
capacity todoeconomic analysis of
tariffs andother trade instruments,
toconduct safeguard andother
WTO-sanctioned trade remedy
investigations.
Intheprivate sector: support to
increase capacity toidentify andto
analyze business opportunities
10.Sponsoring product-wise
marketing missions abroad and
participation ininternational trade
fairsITC Under ICPmarket demand studies
willbecarried out,onbasis of
which export strategies topenetrate
target markets willbeformulated.
World Bank Theprograms listed under A(k)
above willsupport private sector
expenditures toimprove design,
packaging, marketing, etc.
Theprograms listed under A(k)
above willsupport development of
non-governmental information
systems, e.g.,among enterprises,
industry associations.
*Funds arerequested.WT/LDC/HL/12/Add.1
Page50
Technical assistance needs identified
inthequestionnaireOrganization Response
Inresponse toquestion C(d):
Technical assistance needs inthearea
ofinformation technology including
training ofhuman resources
Bangladesh haslimited technological
capacity andhuman resources tomake
useofthenew
information/communication
technology tools suchasCD-ROM,
theInternet, etc.Assistance isneeded
forundertaking extensive training
programmes inthisareaaswellasfor
making trade-related software and
infrastructural facilities easily
available.UNCTAD Assistance willcontinue tobe
provided through theTRAINS
CD-ROM. Assistance initsusewill
beprovided through advisory
missions andworkshops.*
WTO Onecomputer willbeprovided by
theWTO tothefocal point onWTO
matters intheTrade Ministry .This
includes alinkuptoInternet (1998).
Training onaccess anduseof
Internet resources andofCDRoms
willbeprovided toBangladesh
(1998).
*Funds arerequested.