The world Trade Organisation (WTO) has adopted its first ever trade reform deal in a historic move concluded in Bali, Indonesia yesterday with Bangladesh reaping its desired outcome for a greater duty-free and quota-free market access in the developed and developing countries.
The approval came after Cuba dropped a last-gasp threat to veto the package of measures.
The objectives of the deal is to slash red tape at customs around the world, give improved terms of trade to the poorest countries, and allow developing countries to skirt the normal rules on farm subsidies if they are trying to feed the poor, WTO said, releasing the draft on the last day of the four-day meeting.
“For the first time in our history, the WTO has truly delivered,” WTO chief Roberto Azevedo told ministers, who were exhausted after the talks which had dragged into an extra day.
“This time the entire membership came together. We have put the ‘world’ back in World Trade Organisation,” he said. “We’re back in business ... Bali is just the beginning.”
The talks, which had opened on Tuesday, nearly came unstuck at the last minute when Cuba suddenly refused to accept a deal that would not help open the US embargo of the Caribbean island, forcing negotiations to drag into yesterday morning. Cuba later agreed on a compromise with the United States.
Products of Bangladesh as also other least developed countries will get an increasingly greater market access to the developed and developing countries as the members of the World Trade Organisation (WTO) closed the deal.
Bangladesh, being a member of the LDCs, will also be benefited from the Bali deal, as all products from all LDCs will enjoy zero-duty under the agreement, WTO Director General Roberto Azevedo said on the sidelines of the press conference.
“Bali package is a strong commitment by the WTO member countries. Bangladesh will also enjoy greater market access to the developed countries under the package.”
According to the deal, the developed and developing countries that do not yet provide duty-free and quota-free market access for at least 97% of products originating from LDCs shall seek to improve their existing DFQF coverage to provide increasingly greater market access to LDCs prior to the next ministerial conference.
The members shall notify DFQF schemes and any other relevant changes pursuant to the transparency mechanism for Preferential Trade Arrangements.
“Countries like Bangladesh will get the enhanced trade facilities through negotiation,” said an official.
He said Ticfa would provide a platform to facilitate the negotiation with USA a market Bangladesh is eagerly waiting for duty-free market access.
“We’re satisfied... what we had proposed was accommodated,” said Commerce Secretary Mahbub Ahmed, who led the Bangladesh delegation to the ministerial meeting.
Another official said it was good to see that a roadmap for Doha Development Agenda should be fixed within 12 months from the declaration.
All the developing countries, including LDCs, would also enjoy the advantage until a decision is taken in this regard, he added.
The other issues having interest of Bangladesh and other LDCs, were simplified preferential rules of origin for LDCs, making it easier to identify products as their own products, and qualify for preferential treatment in importing countries.
In the final negotiation held Friday night, firstly, Cuba opposed the trade facilitation issue as US has some embargoes in trade with Cuba. Later, three other Nicaragua, Bolivia and Venezuela also joined in the league of Cuba and started opposing the trade facilitation issue.
“The deal will benefit to all of the WTO members,” Azevedo told the press conference after striking the deal.
According to an estimate, at least 10% to 15% cost of doing business which is nearly equivalent to $1trn of the annual global trade, is possible to save through implementation of trade facilitation agreement.
“In the agreement, I will focus on development issues. We have 12 months in our hands to prepare a roadmap for Bali package,” he said.