Bangladesh and other least developed countries (LDCs) have requested the EC to provide them with 30 per cent quota facility for readymade garments, rice, sugar and some other low technology based export items.

During a two-day meeting of Bangladesh-EC Joint Commission on November 19-20 in Brussels, Bangladesh also proposed a flexibility in the rules of origin of its export items in line with the one offered by Canada.

Canada allows zero-tariff entry of Bangladeshi export items having 25 per cent local value addition. However, there was no such assurance from the EC in this regard.

"We have given a proposal about quota so that small and underdeveloped countries like ours can survive in the quota-free trade regime," said Suhel Ahmed, secretary of the commerce ministry who headed a five-member delegation at the Brussels meeting.

"In the next 13 months till 2004 when the multi-fibre arrangement (MFA) will expire, we will have to pursue this proposal further in order to make the EC agree," the commerce secretary told The Daily Star.

With the expiry of MFA, the World Trade Organisation (WTO) rules will be applied in international trading. It means the quota system that ensures a certain level of export for Bangladesh will also go.

Bangladesh feels that without the quota system, Bangladeshi exports will be severely hit by countries like India, China and Mexico. Currently Bangladesh heavily depends on import of raw materials. So this will put Bangladesh in a disadvantageous position.

Bangladesh discussed with the EC how, without violating the WTO rules and regulations, to develop an alternative quota system. They also discussed this issue with Peter Curl, EC trade director general.

Besides the quota issue, the EC discussed other problems and prospects of Bangladesh.

The EC committed 450 million Euros aid till 2005. Bangladesh sought this aid to develop its trade capacity and export diversification.

Bangladesh also requested the EC to vest more power to EC's Dhaka office to speed up mutual decision-making.

The EC asked Bangladesh to speed up separation of judiciary, forming of independent anti-corruption commission and other non-economic issues.