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V. AID FOR TRADE 
(1) OVERVIEW  
1. The Government decided to reinstate the five -year development plans, replacing the Poverty 
Reduction Strategy Paper (PRSP) approach to articul ate its development strategies.  The current five-
year plan (2011-15) is the sixth of its kind and is guided by long-term goals and objectives set out in 
the Perspective Plan (2010-21), this contains qua ntifiable targets, with the ultimate objective of 
transforming Bangladesh into a middle-income count ry and becoming "digital Bangladesh" by 2021.  
Trade is mainstreamed into Bangladesh's long or me dium-term development strategies.  In spite of 
delays encountered with the Enhanced Integrat ed Framework process, completion of the on-going 
Diagnostic Trade Integration Study (DTIS) should he lp Government and donors alike in the coherent 
articulation and response to Bangladesh's trade-related needs. 
2. Most of the foreign aid to Bangladesh comes in thre e forms:  (i) food aid;  (ii) commodity aid;  
and (iii) project aid;  the latter constituting the lion's share, with 95%.  Commitment of foreign aid has 
substantially increased in recent fiscal years, re aching US$5.97 billion in fiscal year 2010-11.  Also, 
in the same fiscal year, grants constituted 42% of tota l aid flows.  With an average yearly aid flow of 
US$1.3 billion during 2000-10, aid accounts for roughly 2% of gross national income (GNI).   
3. Reliance on foreign aid for the implementati on of country's development programmes has 
decreased over the years and at present around 60% of Bangladesh's annual development programme 
(ADP) is domestically financed.  The sluggish rate of  foreign direct investment (FDI) over the review 
period, which remained below US$1 billion mark, has been a concern.   
4. According to OECD data, Bangladesh was the sixth largest recipient of Aid-for-Trade 
resources between 2002 and 2009, and second la rgest among LDCs, totalling approximately 
US$7 billion.1  The Aid-for-Trade needs of the country ar e mainly threefold:  broad infrastructure, 
including deficient energy supply and poor road transport, requiring massive investment;  sector-specific interventions to enhance their competitiv eness;  and human and institutional strengthening, 
including WTO-capacity building to gain expertise to  deal with WTO rules and disciplines.  Recently, 
delays in the design, approval and implementation of infrastructure projects have become onerous, 
demonstrating the need for the Government to im prove its human and institutional aid capacity.   
5. The government authorities, as well as the private sector, share the view that more attention 
must be given to economy-wide efficiencies rath er than sector-specific interventions.  Productive 
capacity is severely affected by lack of infr astructure services such as electricity.  Regional 
cooperation is an important element in addressing en ergy and infrastructure constraints, but progress 
here has been slow.  Despite huge potential, trade is not viewed in the regional context.
2   
6. Several development partners are present in  Bangladesh, with three predominating - the 
World Bank, ADB and Japan.  Together, these accoun t for 65% of external assistance.  Non-OECD 
development partners are also coming forward, w ith India in 2010 announcing a line of credit worth 
US$1 billion for a range of projects, especially in ra ilway and road infrastructure.  Most of the donors 
                                                      
1 Data on Aid for Trade is taken from the OECD Credito r Reporting System (CRS) database broken down into 
categories of Aid for Trade that most closely match the definitions developed by the WTO Task Force in 2006.  The 
Government of Bangladesh does not maintain  separate record for Aid for Trade flow s, as defined in OECD database. Trade-
related aid is often indistinguishable part of foreign aid flows into the country.  As a result, the Government is unable to 
comment on the Aid-for-Trade figures provided in the report.  
2 The EU and the US absorb more than 80% of Bangladesh exports, while  SAARC countries only 
receive 2% of its exports. Bangladesh WT/TPR/S/270 
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have country-strategy documents, on which they base their response strategy to the needs of the 
Government.  The country-level-aid effectiveness ag enda is guided by the Joint Co-operation Strategy 
(2010-15) adopted by donors and the Government in  2010.  The long-term plans of the Government, 
its reform initiatives and development cooperation priorities are discussed under the aegis of the 
Bangladesh Development Forum (BDF). 
7. The Government attaches special importance to  Public-Private Partnership (PPP) projects, 
and has made institutional arrangements to facilitate  implementation of such projects.  A non-bank 
financial company, "Bangladesh Infrastructure Fi nance Fund Ltd. (BIFFL)" has been established to 
provide a long-term financing facility for infrastru cture projects under PPP.  Some pilot projects are 
being selected under PPP arrangements, including im provements to road transport.  While the 
intention of the Government is to attract i nvestment from the private sector, especially in 
infrastructure, the efficacy of this endevaour is yet to be tested.   
8. Export diversification and improved competitiveness  of the private sector are essential for the 
country to further integrate global trade.  The ga rment sector has flourished with its low-cost labour 
advantage, but may lose competitive strength if this is not accompanied by a lowering of lead-time.  
The Government also needs to focus on long-term skills training to increase manpower exports and 
take advantage from the GATS waiver  which opens up the possibility to receive preferential market 
access for its service suppliers.   
(2) TRADE AND BANGLADESH 'S NATIONAL DEVELOPMENT STRATEGY  
9. Trade is key to Bangladesh's national develo pment strategy. The "Perspective Plan of 
Bangladesh 2010-21: Making Vision 2021 a Reality" (her eafter the Perspective Plan) clearly spells 
this out.3  Vision 2021 envisages Bangladesh achieving an annual GDP growth rate of at least 8%, 
driven by accelerated growth in th e industrial and service sectors, diversification of export markets, 
increasing global market access for Bangladeshi firms and high foreign exchange earnings from the 
export of semi-skilled and skilled labour.    
Table V.1 
Macroeconomic indicators and targets from the Perspective Plan of Bangladesh  
 Benchmark FY2009 Target FY2015 Target FY2021 
Annual Real GDP growth rate % 6.1 8.0 10.0 
As a percentage of GDP: 
Gross investment 
Gross national savings 
Total Government revenue Total Government expenditure  
24.4 
30.0 
10.9 14.6  
32.5 
32.1 
14.6 19.6  
38.0 
39.1 
20.0 25.0 
Exports (US$ billi on) 16.2 38.8 82.0 
Imports (US$ billi on) 21.4 52.8 110.5 
Remittances (US$ billion) 10.9 17.8 38.5 
CPI Inflation (%) 7.5 6.0 5.2 
Unemployment rate 30.0 20.0 15.0 
Poverty (head count %) 31.5 22.5 13.5 
 
Source:  Perspective Plan of Bangladesh 2010-21:  Making Vision 2021 a Reality. 
10. In both the Perspective Plan and the Sixth Five -Year Plan (hereafter th e "Sixth Plan"), the 
focus is on export diversification.  The Sixth Plan accords priority to several emerging export sectors, 
notably:  agro-products and agro-processing produc ts, light engineering products, footwear and 
                                                      
3 The Perspective Plan sets out a strategic articulation of the Vision 2021.  The Plan will be 
implemented through two five-year plans (the Sixth Five Year Plan 2011-15 and the Seventh Five Year Plan (2016-21)).   WT/TPR/S/270 Trade Policy Review 
Page 98 
  
leather products, pharmaceutical products, software and ICT produc ts, home textiles, ocean-going 
shipbuilding industries and toiletry products.  The st rengthening of key trade support institutions is 
also envisaged.4   The Sixth Plan is also specific about ar eas requiring attention, such as the need to 
revamp the legal framework and compliance relate d to intellectual property rights, standards and 
metrology, trade facilitation, among others. 
11. While the ready-made garments (RMG) sector h as witnessed some diversification in terms of 
market destinations in recent years, the expor t base of Bangladesh remains narrow, Table V.2 
provides an indication of the export performance of major products.   
Table V.2 
Export Performance of Major Products (in US$ millions) 
 Jute Goods Leather Frozen Food Engineering Products  Pharmaceuticals RMG 
FY2008 318  284  534  220 43  10,700 
FY2009 269 398  454  189 45  12,348 
FY2010 540  226  445  311 41  12,497 
 
Source : Bangladesh Bank (Table 2.2 of Sixth Plan Accelerating Gr owth and Reducing Poverty Part-2:  Sectoral Strategies, 
 Programs and Polices). 
12. Three trade policy objectives have been underlined  in the Sixth Plan - ensuring sector wide 
export competitiveness, reducing anti-export bias, as well as anti-diversification bias.  The Sixth Plan 
also identifies some of the reasons for the inabilit y of the country to capitalize on its success in RMG 
exports, which are also indicative of the interventions  required to drive forward the trade-led growth:  
(i) Anti-export bias of trade policy which still fa vours the production of domestic import substitutes 
and creates barriers for new export industries;  (ii)  chronic power shortages due to the exponential 
growth in electricity demand which has outpaced the av ailable supply;  (iii) shortage of serviced land, 
as well as difficulties with titling and registration;  (iv) inadequate access to  commercial credit;  (v) 
low labour productivity and shortages of skilled labour ;  (vi) low participation rates among female 
workers due to gender bias;  (vii) weak innovati on and low investment in technology;  (viii) 
constraining government regulations and enforcement in the areas of tax, contract enforcement and 
red tape;  and (ix) slow pace of priva tization of state-owned enterprises.   
13. In the current economic crisis, and in light of the limited amount of FDI in recent years, the 
Government may consider strategies to attract more investment.  The Doing Business Indicator 
rankings suggest that access to electricity, registeri ng property and enforcing contracts stand out as 
particular areas where Bangladesh lags behind in  comparison with neighbouring countries (Table 
V.3).  The Government has taken initiatives to simp lify the property registration process as well as to 
establish Alternative Dispute Resolution (ADR) for in ternational dispute settlement with regard to 
foreign investment.   
                                                      
4 The Sixth Plan identifies the followi ng institutions as needing support, inter alia :  Board of 
Investment, Privatization Commission, Chamber of Commerce and Industries, Export Promotion Bureau, 
Bangladesh Tariff Commission, Bangladesh Standard Tes ting Institute, Bangladesh Institute of Management, 
Bangladesh Industrial Technical Assistance Centre and the National Productivity Organization. Bangladesh WT/TPR/S/270 
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Table V.3 
Doing Business Indicator Rankings for Bangladesh  and other SAARC members (ranking out of 183) 
 Bangladesh Bhutan India Maldives Nepal Pakistan Sri 
Lanka 
Ease of doing 
business 122 142 132 79 107 105 89 
Starting a business 86 83 166 59 100 90 38 
Dealing with 
construction permits 82 
135 181 20 140 104 111 
Getting electricity 182 145 98 132 99 166 95 
Registering property 173 83 97 152 24 125 161 
Getting credit 78 126 40 166 67 67 78 
Protecting investors 24 147 46 79 79 29 46 
Paying taxes 100 67 147 1 86 158 173 
Trading across 
borders 115 
169 109 137 162 75 53 
Enforcing contracts 180 35 182 92 137 154 136 
Resolving 
insolvency 107 
183 128 41 112 74 42 
 
Source : World Bank Doing Business Indicators (2012).  
(3) BANGLADESH AND THE REGIONAL DEVELOPMENT CONTEXT  
14. Vision 2021 shows how Bangladesh’s strategi c geographical location presents it with a 
unique opportunity to become a regional economi c and commercial hub.  With neighbouring India 
and China "soon to be the world’s largest and second largest markets", the Vision argues that 
Bangladesh's geo-strategic position, low labour cost s and large domestic market should make it an 
attractive regional manufacturing and export hub.  The Government recognizes the importance of 
regional connectivity, although the potential of  its location remains largely untapped. 
15. Although information on regional Aid-for-Trade  assistance is limited, Appendix Table AV.1 
provides an indication of areas of involvement of some donors, mainly in the South Asia region.  
SAARC has matured as an institution and BIMSTEC has immense potential; yet the promise of these initiatives has remained largely unfulfilled.  Coope ration has advanced more cautiously than other 
comparable regional cooperation and integration initiatives, such as the Central Asia Regional 
Economic Cooperation which disbur sed loans and grants worth almost US$17 billion between 2001 
and 2011 or the Greater Mekong Delta Sub-Region thr ough which the ADB had, by the end of 2011 
extended loans and grants totalling US$5.1 billion. for 56 investment projects with a total project cost 
of US$15 billion.  A positive development was the establishment of the SAARC Development Fund 
in 2010, but it has yet to be put into operation.  
16. During the 17
th SAARC Summit in 2011, a number of agreements were reached.  This 
included a Regional Railways Agreement, the ear ly demonstration run of a container train 
(Bangladesh - India - Nepal), preparatory work on an Indian Ocean Cargo and Passenger Ferry 
Service, and preparation of an Inter-Governmental  Framework Agreement for Energy Co-operation.  
The Summit Declaration touches on priority areas id entified within the Sixth Plan, notably railways 
and energy.  Bangladesh railways need modernizati on through investment in rolling stock, modern 
traffic and safety equipment, and the conversion of  narrow gauge to broad gauge track to harmonize 
with neighbouring countries and allow regional rail connectivity.   
17. The Sixth Plan also identifies the potential for energy trade to reduce Bangladesh's long-term 
energy constraints in a cost-effective manner, in cluding the regional energy trade with Bhutan and 
Nepal through India.  South Asia's North East sub-region has untapped hydro-power potential which, 
if exploited through grid connectivity and transm ission lines, would help relieve Bangladesh's severe WT/TPR/S/270 Trade Policy Review 
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energy constraints.  Some moves have been ma de to open up power suuplies with India, notably 
through Bheramara-Behrampur grid connectivity.   
18. Bangladesh joined the Intergovernmental Ag reement on the Asian Highway Network in 
July 2009.  Divisions over proposed routes for the Asian Highway had held back Bangladesh's joining 
the Agreement which entered into force in July  2005.  Under the Agreement, two routes are 
considered as the "international trade route" c onnecting Bangladesh, India and Myanmar.  These are 
the Benapole-Dhaka-Sylhet-Tamabil route and Banglabandha-Panchargarh-Hati Kamrul-Dhaka-
Kachpur and Tamabil.  Another route linking Mongla-Khulna-Jessore-D haka- Chittagong-Teknaf has 
sub-regional status.  
19. The investment needed for upgrading the networ k to the requirements of Asian Highway is a 
daunting challenge for Bangladesh.  Road transport,  the most dominant mode accounting for 80% of 
freight traffic, remains vulnerable.  Priority pr ojects on this network include construction of the 
Padma Bridge, "four lane" roads for Dhak a-Chittagong Highway, second Meghna and Meghna-Gumti 
bridges on Dhaka-Chittagong highway. 
20. Emerging countries such as China and India are not only making efforts to enhance market 
access opportunities for its regional trading partners, but  have also come forward with Aid-for-Trade 
resources.  In 2010, India announced a line of credit (LoC) worth US$1 billion to support infrastructural development, including building railw ay bridges, supply of locomotives and assistance 
in dredging.  The Indian LoC is the largest amount ever offered by India to any country.  China continues to provide significant resources, incl uding enhancing productive capacity.  For instance, a 
preferential buyer's credit loan agreement of US$325 million has recently been signed with the 
Government for setting up Shahjalal fertilizer factory. 
(4) 
AID-FOR-TRADE FINANCING  
(i) Aid for Trade and financing Bang ladesh’s development strategy 
21. The Sixth Plan foresees accelerating economic grow th on the basis of a substantial increase in 
the rate of investment from the present 24.4% of GDP  level to 32.5% of GDP by 2015 - with much of 
the extra investment directed at addressing infr astructure constraints (primarily in power and 
transport).  Total investment needs are estimated at BDT 13.5 trillion (ca. US$170 billion) of which 90.7% is projected to come from domestic financ ing (with public investment accounting for 22.8% 
and private sector investment 77.2%).  External fina ncing (of which Aid for Trade is part) is estimated 
to account for 9.3% of planned investment, of whic h foreign investment is projected to account for 
3.1%.   
22. Bangladesh remains one of the most vulnerabl e countries to climate change and natural 
calamities.  As a result, the Government adopted a Climate Change Strategy and Action Plan in 2009.  
It had set up a Climate Change Fund with its own resources to mitigate climate-change-related 
challenges.  For fiscal years 2009/10 to 2011/12, the Government has allocated US$300 million for 
climate change activities, with donors starting to come forward with assistance.  Bangladesh has 
already received US$170 million under the Bangladesh  Climate Change Resilience Fund with grants 
from Australia, Denmark, the EU, Sweden, Switzerland, UK and the U.S. 
23. Regarding financing for developm ent flows, expansion in domestic  public investment is clear 
in the rising figures for gross national capital formation (Table V.4).  The most important source of financing for development is migrant remittances.  The Perspective Plan set s a target to increase 
remittance flows fivefold by 2021 from 2009 levels.  Hence the Government intends to extend the Bangladesh WT/TPR/S/270 
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current policy of exporting low-skilled labour to in clude semi-skilled and well-trained workers to new 
and existing destinations. 
Table V.4 
Bangladesh: Selected financing for deve lopment flows 2008-10 in US$ millions  
 2008 2009 2010 
Gross national capital formation 19,258 21,778 24,500 
Remittances 7,914  9,689 10,987 
Foreign Direct Investment 1,086 700 913 
Net ODA  
Of which :  
Aid for Trade (commitments) 2,071 1,226 1,417 
337 532 289 
 
Source : Net ODA and Aid for Trade (OECD), (UNCTAD), Remittances (Sixth Plan), Foreign Dire ct Investment and Gross 
 Capital Formation (World Bank). 
24. Concessional financing predominates among exte rnal financing flows.  Net Official 
Development Assistance (ODA) is estimated by th e OECD at US$1,417 million in 2010 or 1.3% of 
GNI.5  FDI levels were higher than Aid-for-Trade commitments in 2008 and 2009, but well below 
total ODA receipts.  FDI tends to predominate in some sectors, e.g. transport, communications and 
finance, while Aid for Trade is important in others , e.g. agriculture, forestry and fishing, and the 
energy sector (Table V.5).  In the transport, storage and communication sectors, FDI and  
Aid-for-Trade receipts are more balanced (with the exception of 2008).  A few sectors not captured in 
the figures are textiles, clothing and leather whic h received a total of US$443 million in investment 
between 2006-09 (according to UNCTAD figures).  
25. Comparing Aid-for-Trade commitments against disbursements, data suggest difficulties in 
disbursement of Aid-for-Trade funds, notably in  the years 2006-07 and again in 2009 (Chart V.1).  
Overall, Aid-for-Trade disbursements over the period 2002-10 have been approximately 54% of the 
value of commitments, as compared with 64% of ot her non-Aid-for-Trade sector allocable ODA.  The 
ratio is lower in the energy sector (39%), although  the complex nature of the projects may be one 
explanatory factor.6   
 
                                                      
5 Aggregate aid data for Bangladesh can be vi ewed at:  http://www.oecd.org/dataoecd/56/21/ 
1867292.gif. 
6 WTO Secretariat calculations on the basis of OECD data.  Viewed at:  www.aid4trade.org. WT/TPR/S/270 Trade Policy Review 
Page 102 
  
02004006008001,0001,2001,400
2002 2003 2004 2005 2006 2007 2008 2009 2010USD millionChart V.1
Aid-for-Trade commitments and disbursements to Bangladesh, 2002-10
Source :       OECD QWIDS database.Commitments Disbursements
 
26. There are a number of national programmes of aid assistance for some of the leading donors 
in Bangladesh which have aligned their support to th e Joint Co-operation Strategy (Table V.5).  This 
Table illustrates the diversified portfolio of donors' assistance and also gives an indication of how the 
Aid-for-Trade component - which is only a part of overall aid - competes with other priorities in social sector.  The Joint Co-operation Strategy adopt ed by the Government and development partners 
in June 2010 provides the platform for the Gove rnment to ensure aid coordination and aid 
effectiveness on the ground.  Under this Strategy, 19  working groups have been created.  The private 
sector development and trade working group - led by the Ministry of Commerce - has met seven times 
since June 2010.    
Table V.5 
Overview of national aid programmes of key donors 
Donor Programming 
Strategy Focus areas Funding Links 
World Bank Country 
Assistance 
Strategy  
2011-14  Accelerated growth, 
sustainable growth, 
inclusive growth, stronger 
governance, etc.  Indicative allocations for FY 
2011/14 to be around 
US$1.3 billion per annum http://www.worldbank.org.bd 
Asian 
Development 
Bank Country 
Partnership 
Strategy  2011-15 Energy, transport; urban;  
education, agriculture and 
natural resources;  and finance  US$2.4 billion from ADB 
and US$2.1 billion from 
Ordinary Capital Reserves.   http://beta.adb.org/documents/bangla
desh-country-partnership-strategy-
2011-2015 
Japan Country 
assistance programme Social development, 
economic growth, governance JICA technical co-operation 
support was US$39.37 million in 2010  http://www.bd.emb-
japan.go.jp/en/assistance/index.html 
Table V.5 (cont'd) Bangladesh WT/TPR/S/270 
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Donor Programming 
Strategy Focus areas Funding Links 
U.S. USAID 
Bangladesh Strategy  
2011-16  Good governance, food 
security, health, climate change USAID will provide close to 
US$1 billion in assistance to Bangladesh (FY2011/16) http://www.usaid.gov/bd/index.html 
Canada Canadian 
International Development 
Agency Children and youth; 
sustainable economic growth; gender equality, 
environmental 
sustainability, good governance  CAD 81.94 million 
disbursed in 2010-11.  http://www.acdi-cida.gc.ca/acdi-
cida/ACDI-CIDA.nsf/eng/JUD-12915389-S7Y#a2 
Denmark DANIDA  Business partnership 
programme, good governance;  water and sanitation;  agriculture and 
fisheries  Denmark has a disbursement 
target of DKK 190 million in 2011 http://www.ambdhaka.um.dk 
European 
Union Country 
Strategy Paper 
(2007-13) and 
National Indicative 
Programme 
(2007-10)  Social sectors, good 
governance and human 
rights, economic and trade 
related technical assistance  Country Strategy Paper has 
total envelope of EUR 385 
million with EUR 50 million 
for trade. http://www.eudelbangladesh.org/en/p
rojects/index.htm 
Germany German 
Development 
Co-operation Health sector, energy 
sector, governance and 
local development Germany has pledged EUR 
60.8 million for 2010-11 http://www.dhaka.dip lo.de/Vertretun
g/dhaka/en/07/Entwicklungszusamm
enarbeit__Hauptbereich.html 
Netherlands Multi Annual 
Strategic Plan 
(2012-15)  Water, reproductive health, 
food security Information not available http ://bangladesh.nlembassy.org/new
s/2012/02/netherlands-development-
cooperation.html 
United 
Kingdom DFID 
Operational 
Plan 2011-15  Governance, wealth 
creation, education, health, 
poverty, climate change, water and sanitation GBP 869 million is budgeted 
for the Operational plan 
 http://www.dfid.gov.uk/Documents/p
ublications1/op/Bangladesh-2011.pdf  
UN agencies UNDAF Action 
Plan 2012-16.   Governance, economic 
growth, social services, food security, climate 
change and disaster 
reduction, pro-poor urban development, gender equality  US$1.8 billion resources to 
deliver 56 outputs and 12 outcomes under the 
Action Plan http://www.un-bd. org/undaf.php 
 
Source:  WTO secretariat compilation.  
27. The World Bank remains the biggest donor in the country, including Aid-for-Trade support.  
Its current lending to the industry and trade sector accounts for 15% of total lending.  The Bank remains the major financier of infrastructure projects.
7   
28. Besides infrastructure support, the Bank is curre ntly financing a private sector development 
support project to facilitate investment in growth centres and to further generate employment, with a 
budget of US$138 million, out of which US$18 million is  a UK-DFID grant.  One of the components 
of this project is the current endeavour to establish the first ever hi-tech park at Kaliakoir, Gazipur - 
                                                      
7 Financing the Padma Multipurpose Bridge Project:  The Government has accord ed high priority to 
constructing a bridge (6.2 km) over the Padma River to establish a direct road and railway link to the South-Western region to the rest of the country, with the potential to benefit nearly 60 million people.  To implement 
the Padma Bridge Project, the Government approved a budget of US$2.97 billion in January 2011, and signed 
loan agreements with major development partners of the project - World Bank (USD1.2billion of IDA), JICA 
(US$415 million), ADB (US$615million) and IDB (US$140 million).  The Bank on 30 June 2012 cancelled its 
IDA credit of US$1.2 billion.  In view of the uncertainty  in external funding, the Government is examining the 
possibility of constructing the bridge with its own domestic resources.  At the same time, alternate sources of funding are also being considered and a number of countries have shown interest. WT/TPR/S/270 Trade Policy Review 
Page 104 
  
an attempt by the Government to attract foreign as well as domestic investors to target industries such 
as IT, telecoms, electronics, biotechnology, etc.  In  fact, the IT sector, which has been designated a 
thrust sector has recently witnessed steady growth  of exports.  Bangladesh earned nearly US$35 
million in 2010 from IT outsourcing.  While there is a cost advantage, more attention is needed to 
ensure an adequate supply of human resources,  with high language and technology skills.  
29. While the EU is not among the top three donors,  it remains actively engaged in the area of 
trade policy where there are few active donors.  Building on its past support in this area, the EU is currently funding the Bangladesh Trade Policy Sup port Programme (TPSP), with a total funding of 
EUR 6 million, for the development of a coherent trade policy through capacity-building of key trade-
related institutions.  The programme has two ma in components:  (i) the policy-related capacity-
building in the Ministry of Commerce;  and (ii) support to policy research and training capacity at 
BFTI.  TPSP assistance to the Bangladesh Foreign Tr ade Institute has facilitated the provision of 
specialized WTO-training considerably (most nati onal events being organized by the BFTI).   
30. One of the three key focal/strategic areas of the EU's cooperation under its country strategy 
for 2007-13 is economic and trade development.  In th e past couple of years, the EU had put a special 
focus on strengthening the legal and institutional fra mework in the area of standards and conformity 
assessment.  During 2006-10, the EU supported a EUR 10 million programme entitled "Bangladesh 
Quality Support Programme" (BQSP) aimed at improving the legal environment for quality and 
conformity assessment infrastructure for standard s, technical regulations and accreditation.  The 
project has proved to be the catalyst for some important developments in the field of quality 
assurance, including the establishment of the Bangl adesh Accreditation Board and the creation of a 
public-private governing body for th e National Institute of Textile Training, Research and Design 
(NITTRAD).   
31. As a follow-up project of the BQSP a fisheries s ector project is currently being implemented, 
to enhance the national quality infrastructure for fish  and fishery products to meet safety and quality 
requirements in export markets.
8  In fact, the country's shrimp sector - the second biggest export 
industry after garments, employing nearly 1 million people - has suffered in the past, with several 
periods of export bans to the EU due to quality issues.   
32. Figures on aid assistance from non-OECD partners are not readily available, but the 
impression received is that non-OECD partners ar e expanding their operations and becoming an 
important source of funding for Bangladesh.  The Is lamic Development Bank is a signatory to the 
Joint Co-operation Strategy (Appendix Table AV.3). 
(ii) Trade-Related Technical Assistance  
33. In its questionnaire reply to the Aid-for-Tra de 2011 monitoring exercise, the Government 
indicated that the Aid-for-Trade agenda is yet to be fully operationalized in Bangladesh.  The 
suggestion was made to establish a database on Aid -for-Trade flows and an aid management policy to 
increase the scope for targeted aid.  A concern w as that Bangladesh's remarkable performance in the 
trade sector did not justify the low volume of aid and that LDCs should receive special priority in 
Aid-for-Trade funding.  Bangladesh cited the EU funded Trade Support Programme (TSP) as an example of a successful Aid-for-Trade programme and provided a case history on its experience with that programme.  Two further case histories of assistance were submitted on the Quality Support 
                                                      
8 The Better Fisheries Quality project is a compone nt of Better Work and Standards Programme which 
is the successor to the BQSP. Bangladesh WT/TPR/S/270 
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Export Diversification Programme (funded by ITC)  and Support to the Bangladesh Ready-Made 
Garments Sector (with funding from UNIDO).9 
34. The Economic Relations Division (ERD) under the Mi nistry of Finance acts as the aid arm of 
the Government.  While the Ministry of Commerce the focal point for WTO matters - takes an active 
interest in the Aid-for-Trade initia tive, the awareness in the ERD is more limited, largely due to the 
fact that trade-related aid data are not distinguished  or differentiated from other types of aid flows.  
Aid is neither tracked according to the OECD defi nition, nor does the Government have a mechanism 
to follow and verify the data compiled by the OECD.   
35. In 2009, Bangladesh joined the Enhanced Integrated Framework (EIF) - a catalytic 
mechanism which can help mainstream LDCs' Aid -for-Trade needs and develop bankable projects.  
The World Bank was designated in early 2010 to prepare the Diagnostic Trade Integration Study 
(DTIS) - a concept note which has lately been en dorsed by all EIF stakeholders.  The DTIS is 
expected to be completed by December 2012.  Some projects under the EIF process are being 
implemented.  A pre-DTIS project to support nati onal implementation arrangements is under way.  
The Government aspires to enlarge its resource  pool on trade-capacity-building through the EIF 
process.   
36. Trade-Related Technical Assistance offered by the WTO during the review period has been 
well-aligned with the needs identified in Bangladesh's  national development stra tegy.  Bangladesh has 
enjoyed of a broad range of assistance offered by WTO over the review period.  A total of 12 national 
activities have been organized in Bangladesh.  Also of  importance has been the direct assistance to the 
mission in Geneva, notably in the context of its role as LDC coordinator in 2007 and 2011.  The 
Permanent Mission of Bangladesh in Geneva bene fited from the Mission Internship Programme in 
2006, 2008, 2009 and again in 2010.  Government offici als have also participated in a broad range of 
other training and technical assistance activities offered by the WTO, including:  (i) 28 e-training 
courses;  (ii) 3 university outreach activities;  (iii) 10 regional or Geneva-based trade policy courses;  
(iv) 31 regional workshops;  (v) 6 advanced trai ning courses;  (vi) 12 Geneva-based workshops and 
meetings (including 3 trade facilitati on negotiation meetings in 2010-11). 
37. WTO training has helped officials to better understand the WTO agreements, helped them 
participate in the Doha negotiations and also contri buted to the appreciation of the role of trade in 
Bangladesh’s national development strategy.  Wh ile much progress has been made in updating the 
legal regime, there is still much to do in the area of compliance.  In such areas as Intellectual Property 
assistance, WTO's support, in tandem with other dono rs, has achieved some tangible results.  In 2010, 
Bangladesh submitted its Priority Needs for Tec hnical and Financial C ooperation (contained in 
document IP/C/W/546), identifying areas for technical and financial assistance with a view to ensuring a TRIPS-compliant IP regime.
10   
38. At the request of the Government, a trade f acilitation needs-assessment exercise was carried 
out in 2007, together with the World Bank and other partners.  Bangladesh has made impressive 
developments in trade facilitation, in particular  in the area of customs administration, through 
computerization and automation, including simplif ying trade documentation and procedures.  Full 
                                                      
9 The Government has established a result based management strategy to monitor implementation of 
the Sixth Plan by the Implementation, Monitoring and Evaluation Department (IMED).  IMED monitors more 
than 1200 projects under the Annual Development Program and evaluates around 200 projects on an annual basis.  Tracking trade impacts within  these projects would advance the Aid for Trade monitoring agenda, both 
nationally and multilaterally. 
10 The document also makes a list of some ten project s for funding, with an estimated cost of US$71 
million. WT/TPR/S/270 Trade Policy Review 
Page 106 
  
automation of customs clearance has been done th rough various projects, including ASYCUDA, with 
almost 90% of the total volume of trade (import and export) fully automated.11  One of the largest e-
government projects is the automation of the Chittagong Customs House, done under the "Public-Private" partnership.  The operational efficiency of the Chittagong port has also improved 
considerably with modernization, such as the instalment of container scanners.
12  However, 
sustainability of the computerized system remain s a concern.  The Government also aspires to 
establish a wide area network for bringing all stak eholders under one computerized system, including 
customs, port authorities, customs agents, shippers, traders and banks.   
 
                                                      
11 The computerization and automation process include major customs stations such as Chittagong, 
Dhaka, Benapole and Mongla. 
12 The Chittagong Custom House, the biggest customs station in the country, handles more than 50 per 
cent of total volume of import and more than 80 per cent of total volume of export of the country. Bangladesh WT/TPR/S/270 
 Page 107 
 
 
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