WORLD TRADE WT/MIN(98)/ST/60
18May1998
ORGANIZATION(98-2058)
Original: English MINISTERIAL CONFERENCE
Second Session
Geneva, 18and20May1998
BANGLADESH
Statement Circulated byMr.Tofail Ahmed,
Minister forCommerce andIndustry
WTO Ministers metinSingapore inDecember 1996 fortheFirstWTO Ministerial andnow
theymeetfortheSecond Ministerial inGeneva. While recognizing thesuccession ofMinisterials as
ahealthy signforglobal trade wewould liketobegin thisstatement bysaying thatourperception of
theMinisterial isprimarily based onArticle 4oftheAgreement, which States thataMinisterial is
expected to"...further strengthen theWTO astheforum fornegotiation, thecontinuing liberalization
oftrade within arules-based system andthemultilateral review andassessment oftrade policy ...".
Wearealsoconscious that50years ofwork wentbehind theestablishment ofWTO, theOrganization
entrusted withthesupervision oftherule-based Multilateral Trading System.
Atthismoment oneofthepreambular objectives oftheAgreement thatcomes tomind is
"...conducting ourtrade relations withaview toraising standard ofliving worldwide". Wein
Bangladesh believe thatasadirect consequence oftrade liberalization alarge partofthisobjective
hasbeenachieved through creation ofmore andbetter-paid jobsinmany countries. Achievements
inthisareareflect ourstrong commitment inliberalization andpromotion ofsustainable growth while
contributing toamore stable andsecure climate ininternational relations.
2. LDCs andMultilateral Trading System (MTS)
However, despite these splendid achievements itisstilltruethatallofushavenotbenefited
equitably from therule-based Multilateral Trading System. Condition inthe48LDCs, where more
than1/5th ofhumanity lives, continues todeteriorate. During 1997, while totalglobal tradeamounted
toahugeUS$6 trillion, theLDCs generated amere 0.03percentshare ofthisoutput.
3. Trade andgrowth
Weagree thatliberalized trade isaprime source ofnewwealth which iscreated through
realization ofinternational division oflabour andglobally optimal resource allocation. Hence ithas
beenassumed thataliberalized global trading regime would attheendoftheday,benefit everyone.
Indeed driven bythisnotion, GATT negotiators, agreed thatthedeveloping countries, particularly
theLDCs, needed shelter ofspecial provisions forsome timetointegrate fullyintotheglobal trading
system. Anumber ofprovisions under therubric ofSpecial andDifferential Treatment (SDT) were,
therefore, builtintotheFinal Act. However, despite these goods intentions, LDCs havenotreaped
much oftheexpected benefit. Their trade share hasprogressively declined leading toadeepening
ofpoverty inmostLDCs. TheUNCTAD World Investment Report 1997refers tosome oftheseLDCs
aseconomies inregression, meaning acondition ofcollapse ofthestateasasocial institution. Thus
adownward slidefrom poverty toindigence isclearly discernible inmany LDCs.WT/MIN(98)/ST/60
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4. Special andDifferential Treatment (SDT) provisions
TheSpecial andDifferential Treatment (S&DT) provisions oftheAgreement aredeemed to
beapplicable autonomously. Consequently unlike other provisions oftheAgreement theylacklegally
binding force. Onarecent occasion when WTO submitted abriefing paper (No.WT/COMTD/W/35
dated 9February 1998) toitsCommittee onTrade andDevelopment (CTD), itdidnotgiveareport
onSDTprovisions as,initswords, theseautonomous intervention needed noreporting andmonitoring
obligation onthepartoftheimplementors andWTO. Werequest thatWTO notonlymonitor the
progress ofimplementation oftheSDTprovisions butalsoreport itsfindings totheGeneral Council.
5. Poverty alleviation
With theriseofdemocracy following therecent thawincoldwar,LDCs arecoping withthe
rising expectations oftheirpeoples. They nowaspire foranddemand more political liberty, wider
franchise, freer press, guaranteed human rights, among other "new" freedoms. Therising tideof
democracy inLDCs havealsogiven birthtonumerous NGOs inthem. They arenowinthefore-front
ofrudimentary development programmes based primarily onmicro-enterprise andskilldevelopment.
Specially inmycountry, Bangladesh, theflourishing oftheGrameen BankwithitsMicro-Credit strategy
hasattracted world-wide interest andisnowamong themore popular development concepts around
theworld. Despite allthese achievements, thespread ofpoverty continues unchecked. Thiscallsfor
more coherent andbolder institutional approaches. Weconsider theWTO Ministerial tobeanapt
occasion todraw theattention oftheMembers tothisreality.
6. Official Development Assistance (ODA)
Another matter, which hasaggravated poverty intheLDCs istherecent decline ofODA.
Asaresult, inmany LDCs critically needed investment insocio-economic infrastructure, could not
bemade. Transfer ofappropriate technology andODA funds forbuilding vitalinfrastucture inroads,
ports, power, human resources, etc.intheLDCs should beeffected quickly. Despite commitments,
almost alldeveloped countries havefailed tofulfil theirobligations ofgiving ODA at0.7percentof
theirrespective GNPs. Therefore, thepresumed capacity ofless-developed countries tocompensate
ODA fallthrough "expanded" trade isunrealistic.
7. Capacity building inLDCs
Most LDCs havethinexport base. Besides, theyareusually short onfoodsupply andlack
start-up capacity toexploit theirownnatural resources. Occasionally exploitation oftheirnatural
resourceshasbeenpossiblethroughdisadvantages,profit-sharingagreementswithTNCs.Suchextractive
enterprise addsverylittlevalue totheproducts, doesnottrigger linkage industries andoften endin
degradation ofthenative environment.
8. Technical assistance: Integrated Framework (IF)
Therecently adopted "Integrated Initiatives forTrade-Related Technical Assistance, Including
forHuman andInstitutional Capacity-Building, toSupport Least-Developed Countries inTheir
Trade-RelatedActivities"attheWTOorganizedHigh-LevelMeetinginOctober1997atGenevaprovides
acoherent framework ofcooperation among thedeveloped countries andIGOs (UNCTAD, WTO,
ITC, World Bank andUNDP). Through thisframework theIGOs cancombine efforts andatleast
begin toaddress issues, which plague LDC economies.WT/MIN(98)/ST/60
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9. Technical assistance resources
TheTechnical Assistance resources ofWTO isinadequate compared toitsneedanddepends
ongenerous donor support. Weurgeforthestrengthening ofTechnical Assistance Wing ofWTO
withadequatefundfromWTO'sbudgetarysources.TheIntegratedFrameworkprovidesajointplatform
forallagencies andfulluseofthisopportunity should bemade.
10. TRIPS
Thelong-termimplicationsoftheprovisionsoftheTrade-RelatedAspectsofIntellectualProperty
Rights (TRIPS) ontheeconomy andtechnological evolution ofdeveloping countries, particularly the
LDCs, remain uncertain. Owing toageneral lackoftechnological attainments inthesecountries, their
prospects ofcontribution inthisareaintheforeseeable future aredim. Hence theprospects of
detrimental application ofpatent rights relating particularly toseeds, plantvarieties, pharmaceuticals,
biotechnology, etc.raiseimportant questions fortheLDCs.
Wecallupon Ministers toreview theprovisions ofthisAgreement andfindways toensure
participation inanequitable TRIPS regime byallMembers inthenewrounds ofnegotiation which
isscheduled toopeninthenearfuture.
11. Rules oforigin
WedrawMembers 'attention totheAgreement onRules ofOrigin andexhort theirapplication
particularly ontheexport regime oftheLDCs. Inlinewiththeintentions oftherules oforigin as
setoutinitspreamble wherein itisstated interaliatoestablish aclear, predictable transparent and
trade-friendly rules oforigin, which donotnullify orimpair rights ofMembers under GATT 1994,
weurgeMembers tofurther relax therules oforigin obligations forthebenefit oftheLDCs. Such
astepwould encourage export growth ofLDCs assisting atthesame timetheirintegration inthe
Multilateral Trading System.
12. Market access
Thetechnical assistance through theintegrated framework willhowever, needtobecombined
withsympathetic measures inpreferential market access forLDC products indeveloped countries.
Particularly zerotariffaccess intothedeveloped economies forLDCgoods andservices should receive
urgent consideration. Bangladesh believes thatmarket access forcompetitive LDC goods atzerotariff
intodeveloped markets would enable LDCs toreapbenefit oftheirnatural advantage based oncheap
labour. Once suchgenerous market access wasavailable inthedeveloped economies areverse access
forsophisticated developed country products andservices intoLDCeconomies would become feasible.
Thiswould result inmutually beneficial trading relationship between thetwotypes ofeconomies.
TheEUandeight other economies, announced improved market access fortheLDCs inthe
HLM inOctober 1998. However, onlyEUandTurkey havemeanwhile notified WTO about their
"offers". Weurgeothers tonotify theiroffers early.
13. Debt overhang intheLDCs
Theheavy debtburden ofLDCs, requires imaginative review bycreditors. Therecent Africa
Initiative infavour ofsome HIPCs iscommended. Wewould recommend thattheentire debtburden
oftheLDC community beeliminated through oneboldandswiftpolicy intervention fromthecreditor
club. Realistic conditionalities maybeimposed ondebtors before theyareabletoreapthebenefits
ofthedebtrelief initiative.
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