Basic information about the World Trade Organization (WTO). Establishment, evolution and formation of the final act in 1994. The Result of Uruguay Round negotiation for a multilateral Trading System.

1. 1
WTO
Overview and Basic Principles
Md. Hafizur Rahman
Director General (Additional Secretary)
WTO Cell, Ministry of Commerce
hafiz_maisoon@yahoo.com
Mobile: +8801711861056

2. 2
Background: Initiation of GATT 1947
•After the Second World War, when two other
organizations World Bank and IMF were created, an
initiative was taken to create an International Trade
Organization (ITO) to ensure fairness in world trade
•At that time 23 countries among those who were
negotiating for ITO concluded the General Agreement on
Tariffs & Trade (GATT)
•The GATT was in fact a provisional agreement

3. 3
Initiation of GATT
•However, since the initiative of establishing ITO was
failed, the GATT continued to exist as the multilateral
instrument governing international trade from 1948
until the establishment of the WTO in 1995
•The GATT developed rules for a multilateral trading
system (MTS) through a series of trade negotiations or
rounds.
•From 1947 to 1994, the GATT Members organized
eight rounds of negotiations.

4. 4
GATT ERA
•The early rounds dealt mainly with tariff
reductions on goods, but later rounds
included other areas, such as, anti-dumping
and non-tariff barriers.
•The last round lasted from 1986 to 1994 and
is generally known as the "Uruguay Round"
which led to the creation of the WTO in
1995

5. 5
GATT Rounds Negotiations
Year Place/Name Subjects covered Countries
1947 Geneva Tariffs 23
1949 Annecy Tariffs 13
1951 Torquay, UK Tariffs 38
1956 Geneva Tariffs 26
1960-61 Geneva
Dillon Round
Tariffs 26
1964-67 Geneva
Kennedy Round
Tariffs and anti-dumping
measures
62
1973-79 Geneva
Tokyo Round
Tariffs, non-tariff measures,
“framework”
agreements
102
1986-1994 Geneva
Uruguay Round
Tariffs, non-tariff measures, rules,
services, intellectual property, dispute
settlement, textiles, agriculture,
creation of WTO, etc
123

6. 6
WTO
The WTO is :
(1) An Organization for trade liberalization
(2) A forum for trade negotiations
(3) A set of international trade rules
(4) A place for settling disputes

7. 7
Objectives of the WTO
• Raising living standards
• Ensuring full employment
• Ensuring a large and steadily growing
volume of real income and effective demand,
and
• Expanding the production of trade in goods
and services, while allowing for the optimal
use of the world’s resources in accordance
with the objectives of sustainable
developments

8. 8
Functions of the WTO
• Administering trade agreements
• Serving as a forum for trade negotiations
• Settling trade disputes
• Reviewing members’ trade policies
• Ensuring greater coherence in global
economic policy-making, including
cooperation between IMF and World Bank
• Providing technical assistance (TA) to
developing country members

9. 9
Principles of the WTO
(i) Most-Favoured-Nation Principle:
Treating all countries equally
(ii) National Treatment Principle : Treating
foreign goods and local goods equally
(iii) General Prohibition of Quantitative
Restrictions (QRs)
(iv) Transparency

10. 10
WTO Members
• Currently 164 countries are members of the
WTO and many more are in the process of
accession
• All the Members are divided into three
groups – developed, developing and least
developed countries (LDCs)
• LDCs are those which are designated so by
the United Nations
• In the WTO context, developed countries are
self designated as developed countries and
rest are developing countries

11. 11
Differences between GATT and WTO
 The GATT was a temporary system
without any definite organizational
structure
 The WTO is a permanent body with
specific structural organization
 GATT covered only trade in goods
 The WTO system included trade in
services, IPR and an well-defined dispute
settlement system.

12. 12
WTO Agreements
• WTO has agreements can be categorized as:
(i) Umbrella Agreement
(ii) Trade in Goods (GATT)
(iii) Trade in Services (GATS)
(iv) Trade Related Intellectual Property Rights TRIPS)
(v) Dispute Settlement Understanding
(vi) Trade Policy Review Mechanism

13. Marrakesh
Agreement
Annex
IA
-
GATT
1994
Agriculture
SPS
Textiles
and
Clothing
TBT
TRIMs
Antidumping
(GATT
VI)
Customs
valuation
(VII)
PSI
Rules
of
Origin
Import
Licensing
Subsidies
&
Couterv.
M
Safeguards
Annex
IB
-
GATS
List
of
specific
commitments
List
of
MFN
Exemptions
Annex
IC
-
TRIPS
Agreement
Annex
II
-
DS
Understanding
Schedule
of
Tariff
Concessions
Annex
III
-
TPR
Mechanism
Decisions,
Declarations
Umbrella Agreement Establishing
the WTO
1. Basic Principles
2. Decision Making process
3. Accession
4. Amendment process
5. Waiver
6. Secretariat etc.

14. Marrakesh
Agreement
Annex
IA
-
GATT
1994
Agriculture
SPS
Textiles
and
Clothing
TBT
TRIMs
Antidumping
(GATT
VI)
Customs
valuation
(VII)
PSI
Rules
of
Origin
Import
Licensing
Subsidies
&
Couterv.
M
Safeguards
Annex
IB
-
GATS
List
of
specific
commitments
List
of
MFN
Exemptions
Annex
IC
-
TRIPS
Agreement
Annex
II
-
DS
Understanding
Schedule
of
Tariff
Concessions
Annex
III
-
TPR
Mechanism
Decisions,
Declarations
1. Rues for Trade in Goods
2. Exception
3. Renegotiation
4. Basic Rules for other goods
related agreements

15. Marrakesh
Agreement
Annex
IA
-
GATT
1994
Agriculture
SPS
Textiles
and
Clothing
TBT
TRIMs
Antidumping
(GATT
VI)
Customs
valuation
(VII)
PSI
Rules
of
Origin
Import
Licensing
Subsidies
&
Couterv.
M
Safeguards
Annex
IB
-
GATS
List
of
specific
commitments
List
of
MFN
Exemptions
Annex
IC
-
TRIPS
Agreement
Annex
II
-
DS
Understanding
Schedule
of
Tariff
Concessions
Annex
III
-
TPR
Mechanism
Decisions,
Declarations
Agreement on Agriculture
Rules for Agricultural Product
Mainly:
Market Access
Domestic Subsidy,
Export Competition

16. Marrakesh
Agreement
Annex
IA
-
GATT
1994
Agriculture
SPS
Textiles
and
Clothing
TBT
TRIMs
Antidumping
(GATT
VI)
Customs
valuation
(VII)
PSI
Rules
of
Origin
Import
Licensing
Subsidies
&
Couterv.
M
Safeguards
Annex
IB
-
GATS
List
of
specific
commitments
List
of
MFN
Exemptions
Annex
IC
-
TRIPS
Agreement
Annex
II
-
DS
Understanding
Schedule
of
Tariff
Concessions
Annex
III
-
TPR
Mechanism
Decisions,
Declarations
Agreement on Sanitary and Phytosanitary Measures
Standard for human and animal health and plant life

17. Marrakesh
Agreement
Annex
IA
-
GATT
1994
Agriculture
SPS
Textiles
and
Clothing
TBT
TRIMs
Antidumping
(GATT
VI)
Customs
valuation
(VII)
PSI
Rules
of
Origin
Import
Licensing
Subsidies
&
Couterv.
M
Safeguards
Annex
IB
-
GATS
List
of
specific
commitments
List
of
MFN
Exemptions
Annex
IC
-
TRIPS
Agreement
Annex
II
-
DS
Understanding
Schedule
of
Tariff
Concessions
Annex
III
-
TPR
Mechanism
Decisions,
Declarations
Textile and Clothing Agreement
Expired in 2005

18. Marrakesh
Agreement
Annex
IA
-
GATT
1994
Agriculture
SPS
Textiles
and
Clothing
TBT
TRIMs
Antidumping
(GATT
VI)
Customs
valuation
(VII)
PSI
Rules
of
Origin
Import
Licensing
Subsidies
&
Couterv.
M
Safeguards
Annex
IB
-
GATS
List
of
specific
commitments
List
of
MFN
Exemptions
Annex
IC
-
TRIPS
Agreement
Annex
II
-
DS
Understanding
Schedule
of
Tariff
Concessions
Annex
III
-
TPR
Mechanism
Decisions,
Declarations
Agreement on Agreement on Technical Barriers to Trade
Conformity Assessment
Technical regulation
Labeling

19. Marrakesh
Agreement
Annex
IA
-
GATT
1994
Agriculture
SPS
Textiles
and
Clothing
TBT
TRIMs
Antidumping
(GATT
VI)
Customs
valuation
(VII)
PSI
Rules
of
Origin
Import
Licensing
Subsidies
&
Couterv.
M
Safeguards
Annex
IB
-
GATS
List
of
specific
commitments
List
of
MFN
Exemptions
Annex
IC
-
TRIPS
Agreement
Annex
II
-
DS
Understanding
Schedule
of
Tariff
Concessions
Annex
III
-
TPR
Mechanism
Decisions,
Declarations
Agreement on Trade Related Investment Measures
Investment related General Rules
Priority on domestic inputs over imported raw materials
is prohibited

20. Marrakesh
Agreement
Annex
IA
-
GATT
1994
Agriculture
SPS
Textiles
and
Clothing
TBT
TRIMs
Antidumping
(GATT
VI)
Customs
valuation
(VII)
PSI
Rules
of
Origin
Import
Licensing
Subsidies
&
Couterv.
M
Safeguards
Annex
IB
-
GATS
List
of
specific
commitments
List
of
MFN
Exemptions
Annex
IC
-
TRIPS
Agreement
Annex
II
-
DS
Understanding
Schedule
of
Tariff
Concessions
Annex
III
-
TPR
Mechanism
Decisions,
Declarations
Antidumping Agreement
Protection against unfair trade
Dumping
Injury to the domestic industry
Causal relation
Investigation Process

21. Marrakesh
Agreement
Annex
IA
-
GATT
1994
Agriculture
SPS
Textiles
and
Clothing
TBT
TRIMs
Antidumping
(GATT
VI)
Customs
valuation
(VII)
PSI
Rules
of
Origin
Import
Licensing
Subsidies
&
Couterv.
M
Safeguards
Annex
IB
-
GATS
List
of
specific
commitments
List
of
MFN
Exemptions
Annex
IC
-
TRIPS
Agreement
Annex
II
-
DS
Understanding
Schedule
of
Tariff
Concessions
Annex
III
-
TPR
Mechanism
Decisions,
Declarations
Agreement on Customs Valuation
Customs valuation procedures
Minimum import or export price etc.

22. Marrakesh
Agreement
Annex
IA
-
GATT
1994
Agriculture
SPS
Textiles
and
Clothing
TBT
TRIMs
Antidumping
(GATT
VI)
Customs
valuation
(VII)
PSI
Rules
of
Origin
Import
Licensing
Subsidies
&
Couterv.
M
Safeguards
Annex
IB
-
GATS
List
of
specific
commitments
List
of
MFN
Exemptions
Annex
IC
-
TRIPS
Agreement
Annex
II
-
DS
Understanding
Schedule
of
Tariff
Concessions
Annex
III
-
TPR
Mechanism
Decisions,
Declarations
Agreement on Pre-shipment Investigation

23. Marrakesh
Agreement
Annex
IA
-
GATT
1994
Agriculture
SPS
Textiles
and
Clothing
TBT
TRIMs
Antidumping
(GATT
VI)
Customs
valuation
(VII)
PSI
Rules
of
Origin
Import
Licensing
Subsidies
&
Couterv.
M
Safeguards
Annex
IB
-
GATS
List
of
specific
commitments
List
of
MFN
Exemptions
Annex
IC
-
TRIPS
Agreement
Annex
II
-
DS
Understanding
Schedule
of
Tariff
Concessions
Annex
III
-
TPR
Mechanism
Decisions,
Declarations
Agreement on Rules of Origin
Non-preferential Rules of Orogon

24. Marrakesh
Agreement
Annex
IA
-
GATT
1994
Agriculture
SPS
Textiles
and
Clothing
TBT
TRIMs
Antidumping
(GATT
VI)
Customs
valuation
(VII)
PSI
Rules
of
Origin
Import
Licensing
Subsidies
&
Couterv.
M
Safeguards
Annex
IB
-
GATS
List
of
specific
commitments
List
of
MFN
Exemptions
Annex
IC
-
TRIPS
Agreement
Annex
II
-
DS
Understanding
Schedule
of
Tariff
Concessions
Annex
III
-
TPR
Mechanism
Decisions,
Declarations
Agreement on Import Licensing Procedure
Automatic Licensing
Non-Automatic Licensing

25. Marrakesh
Agreement
Annex
IA
-
GATT
1994
Agriculture
SPS
Textiles
and
Clothing
TBT
TRIMs
Antidumping
(GATT
VI)
Customs
valuation
(VII)
PSI
Rules
of
Origin
Import
Licensing
Subsidies
&
Couterv.
M
Safeguards
Annex
IB
-
GATS
List
of
specific
commitments
List
of
MFN
Exemptions
Annex
IC
-
TRIPS
Agreement
Annex
II
-
DS
Understanding
Schedule
of
Tariff
Concessions
Annex
III
-
TPR
Mechanism
Decisions,
Declarations
Agreement on Subsidies and
Countervailing Measures
Subsidy:
Prohibited
Actionable and
Non-actionable
Countervailing investigation
procedures

26. Marrakesh
Agreement
Annex
IA
-
GATT
1994
Agriculture
SPS
Textiles
and
Clothing
TBT
TRIMs
Antidumping
(GATT
VI)
Customs
valuation
(VII)
PSI
Rules
of
Origin
Import
Licensing
Subsidies
&
Couterv.
M
Safeguards
Annex
IB
-
GATS
List
of
specific
commitments
List
of
MFN
Exemptions
Annex
IC
-
TRIPS
Agreement
Annex
II
-
DS
Understanding
Schedule
of
Tariff
Concessions
Annex
III
-
TPR
Mechanism
Decisions,
Declarations
Agreement on Safe-guard
Measures
Excess import
Injury to domestic industries
Imposition of countervailing duty

27. Marrakesh
Agreement
Annex
IA
-
GATT
1994
Agriculture
SPS
Textiles
and
Clothing
TBT
TRIMs
Antidumping
(GATT
VI)
Customs
valuation
(VII)
PSI
Rules
of
Origin
Import
Licensing
Subsidies
&
Couterv.
M
Safeguards
Annex
IB
-
GATS
List
of
specific
commitments
List
of
MFN
Exemptions
Annex
IC
-
TRIPS
Agreement
Annex
II
-
DS
Understanding
Schedule
of
Tariff
Concessions
Annex
III
-
TPR
Mechanism
Decisions,
Declarations
Commitment schedule for goods
Bound tariff
ODCs

28. Marrakesh
Agreement
Annex
IA
-
GATT
1994
Agriculture
SPS
Textiles
and
Clothing
TBT
TRIMs
Antidumping
(GATT
VI)
Customs
valuation
(VII)
PSI
Rules
of
Origin
Import
Licensing
Subsidies
&
Couterv.
M
Safeguards
Annex
IB
-
GATS
List
of
specific
commitments
List
of
MFN
Exemptions
Annex
IC
-
TRIPS
Agreement
Annex
II
-
DS
Understanding
Schedule
of
Tariff
Concessions
Annex
III
-
TPR
Mechanism
Decisions,
Declarations
Agreement on Trade
in Services
Modes of services trade
Commitments
Domestic regulation

29. Marrakesh
Agreement
Annex
IA
-
GATT
1994
Agriculture
SPS
Textiles
and
Clothing
TBT
TRIMs
Antidumping
(GATT
VI)
Customs
valuation
(VII)
PSI
Rules
of
Origin
Import
Licensing
Subsidies
&
Couterv.
M
Safeguards
Annex
IB
-
GATS
List
of
specific
commitments
List
of
MFN
Exemptions
Annex
IC
-
TRIPS
Agreement
Annex
II
-
DS
Understanding
Schedule
of
Tariff
Concessions
Annex
III
-
TPR
Mechanism
Decisions,
Declarations
Schedule of
Specific
Commitment

30. Marrakesh
Agreement
Annex
IA
-
GATT
1994
Agriculture
SPS
Textiles
and
Clothing
TBT
TRIMs
Antidumping
(GATT
VI)
Customs
valuation
(VII)
PSI
Rules
of
Origin
Import
Licensing
Subsidies
&
Couterv.
M
Safeguards
Annex
IB
-
GATS
List
of
specific
commitments
List
of
MFN
Exemptions
Annex
IC
-
TRIPS
Agreement
Annex
II
-
DS
Understanding
Schedule
of
Tariff
Concessions
Annex
III
-
TPR
Mechanism
Decisions,
Declarations
MFN Exemption list

31. Marrakesh
Agreement
Annex
IA
-
GATT
1994
Agriculture
SPS
Textiles
and
Clothing
TBT
TRIMs
Antidumping
(GATT
VI)
Customs
valuation
(VII)
PSI
Rules
of
Origin
Import
Licensing
Subsidies
&
Couterv.
M
Safeguards
Annex
IB
-
GATS
List
of
specific
commitments
List
of
MFN
Exemptions
Annex
IC
-
TRIPS
Agreement
Annex
II
-
DS
Understanding
Schedule
of
Tariff
Concessions
Annex
III
-
TPR
Mechanism
Decisions,
Declarations
Agreement on
Trade Related
Aspects of
Intellectual
Property Rights
(TRIPS)
• Copyrights
• Patent
• Design
• Trade Marks
Geographical
Indication

32. Marrakesh
Agreement
Annex
IA
-
GATT
1994
Agriculture
SPS
Textiles
and
Clothing
TBT
TRIMs
Antidumping
(GATT
VI)
Customs
valuation
(VII)
PSI
Rules
of
Origin
Import
Licensing
Subsidies
&
Couterv.
M
Safeguards
Annex
IB
-
GATS
List
of
specific
commitments
List
of
MFN
Exemptions
Annex
IC
-
TRIPS
Agreement
Annex
II
-
DS
Understanding
Schedule
of
Tariff
Concessions
Annex
III
-
TPR
Mechanism
Decisions,
Declarations

33. Marrakesh
Agreement
Annex
IA
-
GATT
1994
Agriculture
SPS
Textiles
and
Clothing
TBT
TRIMs
Antidumping
(GATT
VI)
Customs
valuation
(VII)
PSI
Rules
of
Origin
Import
Licensing
Subsidies
&
Couterv.
M
Safeguards
Annex
IB
-
GATS
List
of
specific
commitments
List
of
MFN
Exemptions
Annex
IC
-
TRIPS
Agreement
Annex
II
-
DS
Understanding
Schedule
of
Tariff
Concessions
Annex
III
-
TPR
Mechanism
Decisions,
Declarations

34. Marrakesh
Agreement
Annex
IA
-
GATT
1994
Agriculture
SPS
Textiles
and
Clothing
TBT
TRIMs
Antidumping
(GATT
VI)
Customs
valuation
(VII)
PSI
Rules
of
Origin
Import
Licensing
Subsidies
&
Couterv.
M
Safeguards
Annex
IB
-
GATS
List
of
specific
commitments
List
of
MFN
Exemptions
Annex
IC
-
TRIPS
Agreement
Annex
II
-
DS
Understanding
Schedule
of
Tariff
Concessions
Annex
III
-
TPR
Mechanism
Decisions,
Declarations

35. 35
Organizational structure of the WTO
Ministerial Conference :
•The Ministerial Conference is the topmost
decision making body in the WTO
•It is composed by representatives of all WTO
members and shall meet at least once every two
years
•The Ministerial Conference may take decisions on
all matters under all multilateral WTO Agreements

37. 37
Organizational structure of the WTO
Ministerial Conference :
•The Ministerial Conference is the
topmost decision making body in the
WTO
•It is composed by representatives of all
WTO members and shall meet at least
once every two years
•The Ministerial Conference may take
decisions on all matters under all
multilateral WTO Agreements

38. 38
Organizational structure of the WTO
General Council :
•The second tier in the decision making structure of the
WTO is the General Council, which is also formed by
representatives from all Member Counties, usually
Ambassadors and Permanent Representatives based in
Geneva.
•It adapts decisions on behalf of the Ministerial
Conference on all WTO affairs when the Conference is
not in session
•It also meets as the Trade Policy Review Body (TPRB)
and the Dispute Settlement Body (DSB)

39. 39
Organizational structure of the WTO
Councils
•In the third level there are three subsidiary councils –
•Goods Council – for Trade in Goods
•GATS Council – for Trade in Services
•TRIPS Council – for Trade Related Aspects of
Intellectual Property Rights
•They consist of all WTO Members and have
subsidiary bodies.

40. 40
Decision making process in the WTO
• The WTO continues GATT’s tradition of making decisions
not by voting but by consensus. Where consensus is not
possible, the WTO Agreement allow for voting.
• Decisions of Ministerial Conference and General Council
shall be taken by the majority of the votes cast and on the
basis of “one country one vote”
• The Agreement Establishing the WTO envisages four
specific situations involving voting :
(a) interpretation of the multilateral trade agreements,
(b) decisions on waiver,
(c) decisions to amend the provisions of the multilateral trade
agreements, and
(d) decisions to admit new members.

41. 41
Doha Round Negotiations
•After establishment of the WTO, the first
round of negotiations has been started in 2001
during the Ministerial Conference held in
Doha
•This round of negotiations is known as Doha
Round negotiations
•This round is also called development round as
it is focused on development issues

42. 42
Importance of Doha Round
•Doha Round negotiation is very important as this is the
first round after the creation of the WTO aimed at
achieving further liberalization in trade in goods and
services
•Another objective of this Round is to complete many
unfinished tasks of Uruguay Round through which the
WTO has been established

43. 43
Main negotiating issues
The main areas of negotiations are –
• NAMA (Non Agricultural Market Access)
• Agriculture
• Services
• While these are the main negotiating issues, other issues like, trade
facilitation, TRIPS, etc are also in the negotiating package.

44. 44
Negotiating issues
• NAMA Negotiations are actually aimed at
reducing tariffs of industrial (non-
agricultural) products
• Various flexibility options for different groups
of countries are also under consideration.
• Other issues relating to tariff reductions are
also in the negotiating package.

45. 45
Negotiating issues
• Agriculture negotiations have been going on with a view
to
(i) reducing trade-distorting domestic supports,
(ii) phasing out all forms of export subsidies and
(iii) improving market access conditions through tariff
reductions
• The ultimate objective of agriculture negotiations is to
reduce all sorts of trade distorting elements and maintain
fair and rational system in trade in agriculture products.

46. 46
Negotiating issues
• Negotiations on trade in services are going
on in the following areas –
• Market access through request-offer
approach
• Domestic regulations
• Rules
• The objective of the negotiations is to have more openings in
different modes and sectors of services for better market access
and to have better disciplines and predictability in domestic
regulations and rules relating to trade in services.

47. 47
Bangladesh as a founder member
• Bangladesh is founder member of the WTO and
has been actively participating in all the
activities of the WTO, including negotiations
• As an LDC, Bangladesh is entitled to receive
S&D (special & differential) treatment where
applicable
• Bangladesh has been working to take the full
advantage from the opportunities evolving in
the multilateral trading system under the WTO

48. Trade Related Benefits for LDCs:
1. Preferential Market Access for Goods with flexible Rules
of Origin
2. Preferential Market Access for Services
3. Transition Period for Intellectual Property Rights
4. Domestic Support Mechanism
5. Dispute Settlement

49. Trade Related Benefits
1. Given under WTO Regime &
2. LDC Specific S&DT in the BTAs and RTAs
---------------------------------------------------------------------------
S&DTs in the WTO Agreements:
• Total S&DT Provisions 145 (171)
• Total LDC Specific Provisions 23

50. 1. Preferential Market Access
• GSP Schemes
(Under Enabling Clause)
• Duty Free and Quota Free (DFQF)
Market Access
• Preferential Rules of Origin

51. 1. Preferential Market Access
A. Generalized System of Preference (GSP)
• Differential and More Favourable Treatment, Reciprocity and
Fuller Participation of Developing Countries
• (28 November 1979)
•“Enabling Clause”
• All the Developed Countries Provides duty free market access
for goods originated from developing countries including LDCs.

52. 1. Preferential Market Access
B. Duty Free and Quota Free (DFQF) Market Access for
Least Developed Countries
Hong Kong Ministerial Declaration-Annex F: Para-36
•Developed country Members shall, and developing
country Members in a position to do so should:
•(a)(i) Provide DFQF market access on a lasting basis
for all products originating from all LDCs by 2008 or
no later than the start of the implementation period…

53. LDC-Specific Preference Schemes (GSP and DFQF)
Source: Based on WTO Secretariat Note
WT/COMTD/LDC/W/67.
Preference
granting
Member
Duty-free tariff line coverage (and major
exclusions)
Export in 2019
Australia 100% 0.784 Billion
Canada 98.5% (dairy and other animal products,
meat, meat preparations, cereal
products)
1.5 Billion
European Union 99.8% (arms and ammunition) 21.54 Billion
Iceland
(2018)
91.8% (meat, food preparations, vegetables,
dairy and other animal products,
plants and trees)
0.012 Billion

54. LDC-Specific Preference Schemes (GSP and
DFQF)
Source: Based on WTO Secretariat Note
WT/COMTD/LDC/W/67.
Preference granting
Member
Duty-free tariff line coverage (and major
exclusions)
Export in 2019
Japan (2018) 97.8% (fish and crustaceans, footwear, milling
products, cereal products, sugar)
1.5 Billion
New Zealand 100% 0.112 Billion
Norway 100%
Russian Federation 61.4% (transport vehicles, machinery and
mechanical appliances, beverages, iron and
steel products, electrical machinery, meat
products, articles of wood)
0.983 Billion
Switzerland 100% 0.616 Billion
United States of
America (2018)
82.4% (apparel and clothing, cotton, fibres,
footwear, dairy and other animal products)
6.9 Billion

55. LDC-specific Preference Schemes
Source: Based on WTO Secretariat Note
WT/COMTD/LDC/W/67.
Preference
granting Member
Duty-free tariff line coverage (and major
exclusions)b
Export in 2019
Armenia (2016) 43.9% (electrical machinery, chemicals, iron and
steel products, alcoholic beverages)
16.2 Million
Chile (2018) 99.5% (cereals, sugar, milling products) 143 Million
China (2017) 96.6% (chemicals, transport vehicles, machinery and
mechanical appliances, electrical machinery, paper)
1.03 Billion
India (2016) 94.1% (plastics, coffee and tea, alcoholic beverages,
tobacco, food residues)
1.2 Billion
Kazakhstan 62.9% (vehicles, machinery, beverages, articles of
iron and steel)
34.6 Million
Korea, Republic of 89.9% (fish and crustaceans, mineral fuels, oil seeds
and oleaginous fruits, wood products, vegetables)
370 Million

56. LDC-specific Preference Schemes
Source: Based on WTO Secretariat Note
WT/COMTD/LDC/W/67.
Preference
granting Member
Duty-free tariff line coverage (and major
exclusions)b
Montenegro 93.9% (fish and crustaceans, alcoholic beverages,
meat and dairy products)
Chinese Taipei 30.8% (machinery and mechanical appliances,
chemicals, electrical machinery, fish and
crustaceans, plastics)
Tajikistan (2017) 3.7% (Duty-free access includes machinery, glass
products, petroleum products)
Thailand (2017) 71.0% (transport vehicles, electrical machinery,
machinery and mechanical appliances, iron and steel
products, apparel and clothing)
Turkey (2016) 80.5% (iron and steel products, fish and crustaceans,
food preparations, meat, oil seeds and oleaginous
fruits)

57. 1. Preferential Market Access
C. Flexible Rules of Origin
Nairobi Decision on Preferential Rules of Origin for LDCs
1. For ad valorem based calculation method:
• Non originated material up to 75% (25% Local Content)
• Freight and Insurance not included to the inputs from other
countries
• Equivalent treatment to methods other than ad valorem

58. 1. Preferential Market Access
C. Flexible Rules of Origin
Nairobi Decision
2. For Change of Tariff Classification Method:
• Simple Change of Tariff Heading and Sub-heading
• For HS 61 and 62 –From fabric into finished products (single stage
transformation)
• For Chemical- Chemical reaction that forms a new chemical identity.
• For Agro-products – Raw agriculture products to processed products
• For Machinery and Electronics- Assembling from parts to finished products
Avoid combination of two or more criteria for the same product
3. Cumulation: sourcing from export destination, region or adjacent countries.

59. 2. Preferential Market Access for Services
Preferential Treatment to Services and Service Suppliers of
Least-developed Countries (Decision of 17 December 2011)
“Any preferential treatment accorded pursuant to this Waiver shall
be designed to promote the trade of least-developed countries in
those sectors and modes of supply that are of particular export
interest to the least-developed countries.”
• 26 Members notified their preferential schemes
• Service waiver will be available for LDCs till 2030.
• Preferential market access for services and services suppliers of
LDCs will no longer be available after graduation.

60. 2. Preferential Market Access Services
Special and Differential Treatment in
General Agreement on Trade in Services (GATS)
Flexibilities in Schedule of Specific Commitments
Average commitments among 160 subsectors:
• LDCs made commitment in 34 sub-sectors
• Developing Members- 44 sub-sectors and
• Developed countries-105 sub-sectors
• Acceding LDCs have undertaken higher level of commitments

61. 2. Preferential Market Access Services
26 Countries notified the service preferential schemes
Notifying
Member
Date of notification Notifying Member Date of notification
Australia 29-May-15 Korea, Rep. of 10-Jul-15
Brazil 04-Nov-15 Liechtenstein 30-Nov-15
Canada 14-Dec-15 Mexico 20-Aug-15
Chile 08-Oct-15 New Zealand 28-Jul-15
China 22-Jul-15 Norway 25-Jun-15
European
Union
16-Nov-15 Panama 4-May-17
Hong Kong,
China
24-Jul-15 Singapore 24-Jul-15
Iceland 09-Oct-15 South Africa 02-Dec-15
India 29-Sep-15 Switzerland 30-Jul-15
Japan 31-Jul-15 Chinese Taipei 24-Jul-15
Korea, Rep. of 10-Jul-15 Thailand 17-Feb-16
Liechtenstein 30-Nov-15 Turkey 14-Jun-16

62. 3. Transition Period for Intellectual Property Rights
Intellectual Property Rights:
1. Copy rights
2. Trade marks
3. Patent and industrial design
4. Textile design
5. Geographical Indication

63. 3. Transition Period for Intellectual Property Rights
Agreement on Trade Related Aspects of Intellectual
Property Rights (TRIPS)
1. General Transition Period till 1 July 2021
2. Patent protection transition and waiver for pharmaceutical products
(01 January 2033)
3. Technology Transfer (Article 66.2)

64. 4. Domestic Support Mechanism

65. 4. Domestic Support Mechanism (Subsidies)
Subsidy defined as asupport programme, measure, incentive etc., which
constitutes-
• a financial contribution
• by a government or any public body within the territory of a member
• conferring a benefit to the recipient
• Prohibited Subsidies : Not allowed
• Actionable Subsidies : Conditional
• Non-actionable Subsidies : Fully allowed
•

66. 4. Domestic Support Mechanism (Subsidies)
• LDCs are exempted from prohibition of actionable subsidies including export subsidies
for non-agricultural products (Article 27.2 and Annex VII(a))
• Developing Members which are listed in Annex VII(b) are also exempt from this
prohibition until their GNI per capita reaches USD 1,000 in constant 1990 dollars
• The 2001 Doha Ministerial Decision on Implementation-Related Issues and Concerns clarified that a
Member would remain listed in Annex VII(b) until its GNI per capita reached US$1,000 in constant 1990
dollars for three consecutive years (Art. 10.1)
• Re-inclusion if GNI falls to US$ 1000 (yearly assessment)
• In 2017 Bangladesh had GNI US$ 587 (Constant 1990 dollar), in 1990 it was US$ 210
• If the Member's share in world trade of a product is at least 3.25% for two consecutive years then it lose
the flexibility for export subsidy (Article 27.5, 27.6 ).

67. Annex VII of SCM Agreement: Developing Country Members Referred to in
Paragraph 2(A) of Article 27
The developing country Members not subject to the provisions of paragraph 1(a) of
Article 3 under the terms of paragraph 2(a) of Article 27 are:
(a) Least-developed countries designated as such by the United Nations which are
Members of the WTO.
(b) Each of the following developing countries which are Members of the WTO
shall be subject to the provisions which are applicable to other developing country
Members according to paragraph 2(b) of Article 27 when GNP per capita has
reached $1,000 per annum: Bolivia, Cameroon, Congo, Côte d'Ivoire, Dominican
Republic, Egypt, Ghana, Guatemala, Guyana, India, Indonesia, Kenya, Morocco,
Nicaragua, Nigeria, Pakistan, Philippines, Senegal, Sri Lanka and Zimbabwe.
4. Domestic Support Mechanism (Subsidies)

68. 4. Domestic Support (Subsidies) for Agro-Products
LDCs benefits-
• No reduction commitments
• No change in commitment after graduation
• But such facilities will not be available in
future negotiation

69. Challenges under Agreement on Agriculture
3. Export Competition:
Nairobi Decision 2015
LDCs and NFIDCs enjoy more favourable treatment
than other developing countries in three areas.
• Firstly, LDCs and NFIDCs can provide certain export
subsidies (i.e. subsidies to reduce the costs of
marketing exports, costs of international transport
and freight as well as internal transport and freight
charges) until 2030.

70. Challenges under Agreement on Agriculture
3. Export Competition:
Nairobi Decision 2015
• Secondly, the LDCs and NFIDCs also enjoy S&DT
over and above other developing countries in the area
of export financing support.
(36 to 54 Months for LDCs instead of 18 months for
developing countries)

71. Challenges under Agreement on Agriculture
3. Export Competition:
Nairobi Decision 2015
• Graduating LDCs can continue to benefit from these
additional transition periods and flexibilities after
graduation if they remain included in the WTO list of
NFIDCs.
• Graduating LDCs have apply to the COA for inclusion
in the NFIDC list.

72. Special and Differential Treatment Under Various WTO
Agreements
WTO Trade Facilitation Agreement
• Commitments classified as A, B and C
• LDCs have an additional year to implement category A and B
commitments
• LDCs have longer periods to notify their implementation dates for category B and C
commitments
• The LDCs have to submit their last implementation notifications by 22
August 2022 for category C.
• LDCs also benefit from longer grace periods for dispute settlement – 6
years for category A (Developing 2 Years) commitments and 8 years for
category B and C (No grace period for developing countries) "due
restraint“

73. Special and Differential Treatment Under Various
WTO Agreements
WTO Trade Facilitation Agreement
• After graduation, LDC-specific timeline for submitting the
implementation notifications will not be available while the
transition periods for developing countries had already lapsed
• LDC-specific grace-periods for dispute settlement will not be
available
• If a new implementation date is longer than four years than
original notification date, it needs to be approved by the
Committee (Article 19)

74. LDC Specific Grace Period for Dispute
Settlement (Article 20) under TFA
Catego
ry
LDC Members
Developing Country
Members
A 6 years 2 years
B 8 years N/A
C 8 years N/A
Source: TFA Facility, https://www.tfadatabase.org, accessed 20 September 2019

75. Special and Differential Treatment Under Various WTO Agreements
Understanding on Rules and Procedures Governing the
Settlement of Disputes (DSU)
• Article 24.1: WTO Members to exercise ‘due restraint’ in bringing up
cases involving LDC Members and in asking for compensation or seeking
authorization to suspend the application of concessions or other
obligations against an LDC Member.
• Article 24.2: Use of good offices, conciliation or mediation of the Director
General or the Chair of the Dispute Settlement Body, upon request by an
LDC Member, before the establishment of a panel.
• To date, there has been no cases brought against LDCs.

76. After Graduation most of these Preferential
Market Access and S&DT will be lost !

77. Graduation Effects: Preferential Market Access
Utilization of Different Schemes

78. Graduation Effects
Expected tariff rate changes in destination markets

79. Graduation Effects
Expected tariff rate changes for graduating LDCs

80. Graduation Effects
Initial exports, change in exports and change in tariffs of graduating LDCs
Exporter Initial exports Change exports Percentage change Change applied
tariffs
Angola 33,832,481 -34,177 -0.10% 0.02
Bangladesh 34,509,103 -4,966,219 -14.39% 5.69
Bhutan 310,890 -2,845 -0.92% 0.16
East Timor 200,338 -30 -0.01% 0.00
Kiribati 157,223 -252 -0.16% 0.05
Lao People's
Democratic Republic
3,758,168 -69,956 -1.86% 0.82
Myanmar 12,384,365 -329,422 -2.66% 1.17
Nepal 787,495 -20,991 -2.67% 0.97
Sao Tome and
Principe
13,787 -3 -0.02% 0.01
Solomon Islands 752,226 -29,714 -3.95% 1.29
Tuvalu 42,566 -32 -0.08% 0.02
Vanuatu 296,843 -717 -0.24% 0.14
Total 87,045,484 -5,454,359 -6.27% 2.49

81. Product-wise Effect of LDC Graduation
MTN category Initial exports Change
exports
Percentage
change
Change tariffs
Clothing 31,580,483 -4,717,546 -14.94% 6.06
Leather, footwear, etc 1,781,039 -212,522 -11.93% 4.54
Textiles 2,640,234 -187,732 -7.11% 2.38
Fish and fish products 1,460,167 -164,370 -11.26% 2.96
Cereals and
preparations
502,831 -52,904 -10.52% 4.92
Transport equipment 808,739 -32,250 -3.99% 0.99
Minerals and metals 11,490,109 -20,709 -0.18% 0.05
Sugars and
confectionery
46,861 -13,976 -29.82% 18.03
Beverages and tobacco 277,584 -13,350 -4.81% 2.78
Petroleum 30,005,287 -12,956 -0.04% 0.01

82. 2. ODA
There is no LDC specific interest rate criteria for ODA
BUT
Allocation and procedural issues remain important

83. 3. Technical Assistance
1. EIF Funds
2. Aid for Trade
3. Scholarships, training, travel and other costs
etc.

84. 3. Technology Transfer
1. TRIPS 66.2 technology transfer
2. Access to technology bank etc.

85. Subscription to international
bodies
There will higher rate of subscription payment
for international bodies.

86. What are we doing…
Lets take a look at the loosing issues…
1. Preferential Market Access for Goods with flexible Rules of Origin
2. Transition Period for Intellectual Property Rights
3. Preferential Market Access for Services
4. Domestic Support Mechanism
5. Dispute Settlement

87. What are we doing…
1. Preferential Market Access for Goods with flexible Rules of Origin
a. A motivated request has been place in the LDC group for continuing LDC
related transition period, waiver and other flexibilities for at least ten years after
graduation.
b. Gradual phasing out has also been requested in the submission
c. A reversal clause has also been included in the submission
d. PTA with Bhutan and Nepal is at final stage
e. Discussion and feasibility study is going on for FTA/CEPA with India, China, Sri
Lanka, Malaysia, Thailand, ASEAN and Japan

88. What are we doing…
2. Transition Period for Intellectual Property Rights
a. A dully motivated requested has been submitted to TRIPS Council on
07 October 2020 and was discussed in the TRIPS Council Meeting
held on 15 October 2020 with 12 years extended transition period for
graduating LDCs. Positive response is expected.
b. A request has been placed on behalf of the LDCs to enjoy the full
benefits of transition period as declared during LDC status (01 January
2033) even after graduation.

89. What are we doing…
Lets take a look at the loosing issues…
3. Preferential Market Access for Services
A request has been placed on behalf of the LDCs to
enjoy the full benefits of transition period as declared
during LDC status (2030) even after graduation.

90. Lets take a look at the loosing issues…
4. Domestic Support Mechanism
A submission was made in 2018 in the WTO to
remove the missing link in Annex VII of SCM
Agreement so that graduating LDCs can be included
in the list automatically if their GNI per capita
remain within US$ 1000. Negotiation is going on.

91. Lets take a look at the loosing issues…
5. Dispute Settlement
A request has been placed on behalf of the LDCs to extend the
flexibilities for at least ten years from the date of graduation.
Capacity building activities are going on to face the Trade
Remedy investigations (Antidumping, Countervailing,
Safeguard) initiated by the trading partners.

92. Way forward

93. Policy Approaches
• Initiatives to get GSP+ (6.5% import threshold+ Minimum
working age, good governance, compliance, 27 conventions)
• Enhance productivity of the private sector to become more
competitive
• Social compliance: workers rights and working environment
• Development of port capacities and infrastructure
• Awareness of the private sector
• Develop API Capacities
• Ease of doing business
• Quality improvement
• IP enforcement

94. Negotiation Components
•Negotiating with WTO Members for Extension of
TRIPS Transition Period until 2033 for the newly
graduated LDCs
•Continue EU EBA for another 03 years. (However,
not granted. Current GSP scheme will expire in
2023)
•Inclusion Bangladesh at the Annex VII list of WTO
Subsidies Agreement
•GSP plus negotiation
•Signing FTAs

95. Way Forward
 Concerted efforts are to be taken for obtaining GSP+ in
EU
 Initiate FTA/RTA negotiations with potential countries
 Diversifying export baskets & diversifying Markets
 Enhancing productivities
 Ensure better compliance in factories
 Enhancing overall trade-related capacity

96. Way Forward
• There is no explicit theoretical framework for LDC
graduation. Bangladesh will have to develop its own.
• Graduation may increase FDI, but needs strong
professionalism and conducive economic and political
regime in attracting FDI.
• Graduation should be accompanied with
• Structural shifts towards high value added industries
• Strengthening governance
• Mobilizing domestic resources
• Develop infrastructure
• Investment in human development
• Improvement in ease of doing business

97. Thank You for Patience
Hearing
WTO Cell, Ministry of Commerce
BFTI 26 May 2016

98. Question-
Answer

99. Thank You