WORLD TRADE WT/MIN(96)/ST/12
9December 1996
ORGANIZATION(96-5183)
MINISTERIAL CONFERENCE Original: English
Singapore, 9-13December 1996
BANGLADESH
Statement byH.E. Mr.Tofael Ahmed,
Minister forCommerce andIndustry
Iampleased tobeabletoparticipate inthefirstconference oftheMinisters fromWTO Member
countries inthisbeautiful andmodern cityofSingapore, apride ofourregion. Onbehalf ofmy
delegation Iwishtothank theChairman oftheConference, HisExcellency Mr.TeoChow Tong,
Minister ofTrade andIndustry oftheRepublic ofSingapore andhisGovernment fortheexcellent
arrangements aswellasforthehospitality andcourtesies extended tous.ThisConference willbe
alandmark inoureffort toachieve anintegrated, andfullyglobalized economy through ourshared
platform intheWorld Trade Organization.
Itgoeswithout saying thatthereisadirect relationship between tradeanddevelopment. Trade
andgrowth related issues needtobedealtwithintotality. ThisConference, therefore, reflects this
realization onourpart.
Thesuccess ofthenewtrading arrangement, which hasbeenidentified asaspringboard for
growth is,contingent upon support from bothdeveloped anddeveloping countries. Inspiteofthe
lurking fearthatliberalization mayoverwhelm them through asurge inimports, theLDCs adopted
liberalization, prompted mainly byhopes ofabetter future.
TheUruguay Round wasfinalized afterassurances andpledges thatdeveloping countries would
becompensated foranyinitial adverse economic fallout. TheLDCs havenotreceived thepromised
benefits assumed inherent intheUruguay Round.
TheUruguay Round poses challenges andprovides opportunities fortheLDCs. Thepreference
regime willgradually beeliminated butsupply-side constraints willcontinue tolimittheirexport base.
Their obligations under theUruguay Round Agreement including thoserelating totariffreduction would
increase theirburden, unless theycanreapcompensatory benefits ofinternational trade.
Until recently, alarge partofforeign investment inLDCs, came through ODA andsoft-term
loans from multilateral financial institutions. Recently however, ODA grants havebecome smaller
andaidconditionalities havebecome stiffer. Consequently, there isalooming crisis ofconfidence
inmany ofourMember countries.
Weareconcerned thatintheearly1990s, theLDCs share inglobal exports andimports shrunk
byafurther 50percentand30percentrespectively onthealready meagre levels of0.6and1per
cent. Also, theratioofLDCs exports totheirGDP, dropped from 17to14percent. Thisisan
indication thattheLDCs continue tobemarginalized ininternational trade.WT/MIN(96)/ST/12
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Intherecent past, lessthan1percentoftheFDIwent tothe48LDCs including myown
country. Therefore, theclaim thatFDIcanbeasubstitute forODA isnotsupportable. Thisneeds
tobelooked into.Theattempt todirect FDIbyprodding changes intaxation, labour standards, company
lawsandother legislations ofhostcountries would, Iamafraid, backfire andfurther marginalize the
LDCs.
Thetotaloutstanding debtofLDCs hasbeenestimated atUS$127 billion in1994, which is
notatallsustainable. Ameaningful relief ofLDCs 'debtburden, therefore demands quick and
courageous measures, including complete debtcancellation forallLDCs.
Forthedeveloping countries supply capacity andmarket access impediments continue tobe
limiting factors. Complementary andsupportive actions, bothfinancial andtechnical, fromdeveloped
andtrading partners areneeded toalleviate theirsupply-side constraints andensure diversification and
competitiveness.
Acomprehensive planofaction iscalled forwhich willinvolve:
(a) Adequate reflection oftheinterest ofLDCs inWTO;
(b) ensuring market access byproviding dutyandquota-free entry, andremoval ofall
non-tariff barriers;
(c) providing technical assistance toenable LDCs tomeettheirobligations;
(d) specific programme toensure implementation ofspecial anddifferential measures
accorded toLDCs including thepledges attheMarrakesh Declaration foraidflow
andcompensatory measures, Ministerial decision infavour ofLDCs onmeasures
concerning possible negative effects ofareform programme onleast-developed and
net-food-importing countries;
(e) considering theproposal oftheLDCs placed during theMid-term review tosetup
asafety net;and
(f) areview ofcomplex rulesoforigin, which reduce ourcapability toenterintodeveloped
markets.
Bangladesh isahugeandasyetlargely underactive country ofa120million people. Thespeed
andvolume ofexchange insuchateeming market, oncestarted, isbound tobeveryintense. The
present Government ofBangladesh, under theenergetic leadership ofourPrime Minister Sheikh Hasina,
which came intooffice inJune1996, hasbeenworking hardtobring backtobalance theinstitutions
ofgood governance through establishment ofruleoflawandcivilstability.
Poverty alleviation andhuman resource development remain ourhighest priority objective.
Commerce andtrade-related lawsandrulesarebeing relaxed, inmany casesevenremoved andrewritten
toenable themarket forces tooperate freely. Thelarge public sector isbeing rolled backthrough
privatizationandfurtherstoppageofinvestmentinuneconomicstate-ownedenterprises.Eveninvestment
byforeign entrepreneurs insectors likeenergy androads hasbeenopened.WT/MIN(96)/ST/12
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We,theseven countries ofourregion haveformed theSouth Asian Association forRegional
Cooperation (SAARC).1Wehaveagreed recently tosteerourefforts towards establishing theSouth
Asian FreeTrade Area(SAFTA). Astrong wind ofchange blows inourregion infavour ofamore
openandmutually beneficial partnership among ourpeoples. Thisisinlinewiththecurrent global
integration process that,webelieve, hasbeensetinmotion byanunstoppable historical process.
Thisisthetime, topause andponder overtheachievements ofglobalization. Theintroduction
ofnewissues atthisstage makes many ofusfeelsomewhat uncertain andhesitant.
Iamconfident thatameeting oftherepresentatives ofhumanity asisgathered here, cannot
failtoagree onmeasures aimed atensuring abetter future forall.Time andagain atUruguay, Paris,
Lyons, Marrakesh etc.where prospects forsettlement appeared bleak, thenobler sideofmankind
reasserted itself, given thefundofgoodwill thatexists between nations. Thisinspires me,tohope
thatourjointefforts willensure abigger pieofdevelopment sothateachofuscanhavealarger and
equitable share.
1Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan andSriLanka.