‘Continue agri subsidies after LDC graduation under WTO schemes’
After that, average tariffs on Bangladesh’s agri exports might increase in overseas markets in absence of Duty-Free Quota-Free facilities
Bangladesh should pursue with the World Trade Organization (WTO) to be included in the list of net food-importing developing countries after LDC graduation to continue providing subsidies on agriculture exports, experts said at an event on Sunday.
The country should also develop export assistance schemes in compliance with WTO provisions, they added at the seminar titled "Impacts of LDC Graduation on the Agriculture Sector and the Way Forward".
As chief guest, Minister of Agriculture Muhammad Abdur Razzaque said Bangladesh can mitigate the impact of LDC graduation by enhancing the production and quality of its agricultural products.
State Minister for Planning Shamsul Alam said, "The withdrawal of LDC-specific facilities after LDC Graduation will create the compulsion for enhancing our internal capacities."
ERD Secretary Sharifa Khan, who chaired the event, put emphasis on policy continuity for maintaining the growth in the agricultural sector.
"The government is pursuing with WTO to be included in the list of net food-importing developing countries after LDC graduation," she informed.
Support to Sustainable Graduation Project (SSGP) of the Economic Relations Division (ERD) and the US Department of Agriculture (USDA)-financed Bangladesh Trade Facilitation project jointly organised the event in the capital, said a press release.
Farid Aziz, additional secretary of ERD, said the government has taken various measures to ensure a smooth and sustainable transition from LDC status.
Chairman of Research and Policy Integration for Development (RAPID) Mohammad A Razzaque presented the keynote paper on the findings of the USDA-financed study titled "Implications of LDC Graduation for Bangladesh's Agricultural Exports: Issues and Policy Options."
The average tariffs on Bangladesh's agricultural exports might increase in major overseas markets after LDC graduation in the absence of Duty-Free Quota-Free (DFQF) facilities, he said.
The RAPID chairman emphasised proactive engagement with trading partners to negotiate extended preferences, enhance the capacity of domestic firms, and reduce the cost of doing business to address the LDC graduation challenges.
As the domestic support provided for agricultural production is much lower than the allowable limit set by the WTO, the country will not face issues in widening the volume of domestic subsidy.
Former Member of Bangladesh Trade and Tariff Commission Mostafa Abid Khan delivered a presentation on "Bangladesh's Obligation under WTO Agreement on Agriculture: Before and After Graduation from LDC Status".
Experts at the seminar also observed that the government should continue its domestic support for agricultural production and export incentives under different schemes that are aligned with domestic demand and harmonised and compliant with the WTO after graduation.
They also called for improving the business environment and addressing compliance issues in the agriculture sector.
The necessity of production subsidies in the context of climate change and the vulnerability of poor and marginal farmers was also highlighted.
Michael J Parr, project director of the USDA-financed Bangladesh Trade Facilitation Project, said the USDA would provide necessary technical assistance to Bangladesh in facilitating agricultural trade through process simplification, management process automation, and capacity building of food and chemical laboratories, and encouraging investment to improve the cold chain system.