Dhaka looks to WTO meet to win African LDCs' support

Bangladesh is now in talks, both bilateral and multilateral, with the
African least developed countries (LDCs) to drum up support from them
in winning a zero tariff facility for its major exportable items in
the US market. Officials said it targets the WTO mini-ministerial
meeting in Tanzania on October 14-16 to unite all 49 LDCs to mount
pressure for such duty-free access. The Tanzania meet will be, in
fact, a groundwork for the Bangladesh team joining there to have
positive responses from the Africans to the country in the upcoming
WTO Summit. The summit is due in Geneva on November 30- December 2.
"The US duty-free access is on top of our agenda in the Tanzania meet
for which we have finalised the drafts to be put up there," said
Amitava Chakraborty, director general of the WTO Cell at the
commerce ministry. Progress in MODE-4 or free movement of natural
persons to facilitate human resource exports to developed countries
is another topic Bangladesh wants to put forward in the talks,
Chakraborty pointed out. Tariff Commission Chairman Dr Mujibur Rahman
points his fingers at Bangladesh's advantageous position in the
negotiation table that major products it exports are different from
those exported by African LDCs, which enjoy US preferences. "The
Tanzania meet opportunity might be availed to make the Africans
understand that erosion of the preferences they enjoy in the US is
unlikely as Bangladesh's products are not similar," Rahman said. "If
a common declaration comes out from Tanzania meet, it will help
Bangladesh get a duty-free benefit from the US," he maintained.
Moreover, India, a neighbouring developing country, recently offered
Bangladesh and other LDCs a greater cooperation in the WTO Geneva
Summit, he said. Such Indian step will help raise voice in favour of
Bangladesh in the WTO Summit as Sri Lanka and Pakistan--two other
developing countries -- now also lobby for tariff cut on exports to
US, Bangladesh's tariff body chief said. Although Bangladesh is an
LDC, it will seek the benefits, as it fears to lose out
competitiveness to Sri Lanka and Pakistan. These two developing
countries enjoy US privileges because of their embattled political
situation, Dr Rahman said. Parleys are on to bring down tariffs at
five percent for five selected Lankan and Pakistani garment items
within five years. At present, Bangladesh, Sri Lanka and Pakistan are
paying 15 percent duty on apparel exports to US market. A senior
official of Bangladesh Garment Manufacturers and Exporters
Association ( BGMEA) said the country paid $576 million as duty
against its nearly $3 billion exports to US in 2008. Bangladesh
mainly exported woven and knitwear to the market during the year, the
official said. He said France, being an advanced economy, also paid
the same amount of duty although it exported 15 times higher than
Bangladesh to the US during the period.