No decision on Dhaka’s plea on trade at WTO talks

The general conference of the World Trade Organization (WTO) Wednesday did not make any decision on preferential trade facilities, service waiver and Trade-Related Aspects of Intellectual Property Rights (TRIPS) for Bangladesh after its graduation from the least developed status.

However, there were talks on submissions by the least developed countries (LDCs) seeking the preferential trade facilities, said Md Hafizur Rahman, director general at WTO Cell, Ministry of Commerce. 

He told The Business Standard that the USA during the WTO talks asked whether the LDCs were seeking changes to the graduation terms.   

Hafizur Rahman said the USA expressed its concern over allowing the facilities to the LDC graduating countries, noting that some developing countries, who have socio-economic conditions similar to the LDCs, may question the approval of the benefits in the future.   

"Except the USA, no other nation neither talked on it nor raised any objection. It is positive that our submission did not get dropped from the agenda. We will try to carry it on to the WTO ministerial conference," he told TBS.

The WTO ministerial conference is scheduled to be held in Geneva in November. Prior to that, a meeting of the WTO general council could be held, said commerce ministry officials.

The LDCs for their exports enjoy duty-free access to developed and developing countries under preferential trade facilities. Besides, they are allowed to subsidise export items.

The LDCs have the TRIPS facility until 2033 and service waiver until 2030 for products including pharmaceutical items. Once Bangladesh graduates from the LDC club to a developing country in 2026, it will lose those facilities.

Against the backdrop of the pandemic situation, graduating LDCs including Bangladesh proposed the WTO continuing the preferential trade facilities for 12 more years from the graduating year.

The proposal submissions also include TRIPS facility continuation until 2033 and service waiver until 2030.

Commerce ministry officials said the USA, the European Union and Japan had agreed in principle to a proposal to waive drug patents until 2033. The three countries have discussed the issue separately with the LDC group. A report of the Centre for Policy Dialogue (CDP) also recommends the facility be continued for the LDCs.

So, the officials are positive about continuing the benefit in the pharmaceutical sector.

However, Abdul Muktadir, managing director of Incepta Pharmaceuticals, told TBS that it is not yet certain if Bangladesh would be able to enjoy the TRIPS facility beyond the graduation.

"Therefore, we are adopting a business plan assuming that the facility will no longer be available after 2026."

Dr Debapriya Bhattacharya, distinguished fellow of CPD and member of the United Nations Committee for Development Policy (CDP), said, "It is very positive that the agenda has been addressed. The LDCs group, particularly Bangladesh, made their case significant by engaging the USA in the discussion."

The economist also said, "It also opened up a number of new challenges or new working programmes for the LDCs. The LDCs should seriously take note of the counterpoints made by the trading partners. It is now time to go back and prepare the logical grounds and also anchor it on the WTO rules, procedures and precedence to address the issues raised as a group."

Dr Debapriya believes Bangladesh should pursue its own national strategy to get exemption as a country if the group approach fails.

"The issue is Bangladesh should not push from the defensive strategy, but should take the position of strength," he added.