Dhaka for bigger bite of global trade pie
LDCs get down to hard bargain to bring about new world order
Star Desk
Hammering on increased share of global trade for the least developed countries (LDCs), Commerce Minister Amir Khosru Mahmud Chowdhury yesterday demanded duty- and quota-free market access to markets of developed countries at the Cancun ministerial meet in Mexico. Also, opposing attempts to revive issues of Singapore round, he sought free movement of skilled and semi-skilled labour from the developing countries. Placing the demands, Khosru said steps should be taken to increase share of LDCs' trade. A despatch from the Prothom Alo reporter Saugat Ali Sagor says the minister demanded flexible rules of origin that match the industrial capacity of the LDCs and make duty- and quota- free market access meaningful. The minister also demanded compensation against possible loss, which the LDCs will sustain as a result of tariff cuts. He said the LDCs' present share of world trade is marginal, around 0.5 per cent of the volume. According the United Nations Conference on Trade and Development (UNCTAD), the market share of the LDCs in global trade declined from 2 per cent in 1960 to 1 per cent in 1970. The share further declined from 0.8 per cent in 1980 to 0.4 per cent in 2001. Speaking for the LDCs as their coordinator, the minister said there is a general consensus on agriculture under which the LDCs will not have to make new commitments to reduce duty on it. Under this draft agreement, the LDCs will enjoy duty-free access to developed markets, which the minister said should be incorporated in the final declaration. Khosru said farm subsidy by developed nations is hurting export from the LDCs and therefore, should be addressed on the priority basis. The minister called upon the developed states to open up their markets to LDCs by providing free access. Talking to The Daily Star late last night, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Quazi Moniruzzaman and Director Annisul Huq criticised the Cancun draft, saying it appears to be different from the proposals made in the Dhaka Declaration. "In the Dhaka Declaration it was specified that quota- and duty-free access needs to be awarded to the LDCs in general. But now it seems that developed countries are trying to bypass the issue by vaguely saying that they will study the possibility very objectively. So, to me, this is very ambiguous," said the BGMEA director. The BGMEA president said the Dhaka Declaration demanded point blank the facility of duty- and quota-free access. "But we hear from different sources here that the US is not very much with our (LDCs) demand and quite clearly refuses such facilities in this forum. The draft resolution does not ensure our demand," the BGMEA president said. Exports from the LDCs have been hit hard due to compliance requirements of the developed countries and their protectionist measures in the name of the environment, labour and workplace standards. The WTO trade ministers' meetings at Marrakesh, Singapore, Brussels and Doha committed to allowing duty-free market access of the LDC products to the developed nations and integrate them into a multilateral trading system, but little has been done so far. At the Doha Ministerial Conference in November 2001, the WTO member nations renewed their commitment to help the least developed countries. Concretely, they promised greater free market access for products from the countries. Prior to the meeting, the WTO decided that the LDCs could produce and export medicines patented with foreign companies. Such a decision is expected to boost medicine export from the LDCs. But the LDCs would want to see a cut in farm subsidy and fair trade to improve their access to wealthier markets. Meanwhile, no issues concerning the LDCs came up for discussion at the talks. So far, farm subsidy issues, backed by the US and EU and opposed by 21 developing countries including India and China, were at the centre of discussion. AFP reports the US is threatening to shelve the trade talks if things do not move towards its desired goals. It yesterday warned two blocs of agricultural exporters that unless they ease their demands the WTO Cancun meeting will collapse. US Trade Representative Rober Zoellick asked countries that have bilateral trade accords with Washington, including Mexico and Chile, to act as mediators during a closed-door meeting. Delegates of the 146-member WTO are moving ahead with a plenary session and closed-door consultations, as well as preparations for welcoming Cambodia and Nepal as new members. Sources in Cancun said after the opening session on Wednesday, both formal and informal negotiations began with ministers meeting one another on the sidelines.
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