Dhaka, Nov 23 (bdnews24.com) – Bangladesh will move at upcoming WTO talks for recognition as a Disproportionately Affected Country, due to effects of global recession and climate change, to secure reduced trade tariffs as enjoyed by other developing countries, the commerce minister has said.
Commerce minister Faruk Khan will lead a seven member delegation to the seventh minister-level WTO meeting from Nov 30 to Dec 2 in Geneva.
"Due to effects of the economic depression and climatic changes we have become a Disproportionately Affected Country. Considering this, we will present our argument for not paying more tariffs than other developing countries," he told reporters Monday.
Commerce ministry officials say Sri Lanka and Pakistan have recently been marked as DACs, due to war and other extreme conditions.
Discussions are now on to reduce their rates to enter the US market to just five percent for five selected garment products within five years.
Currently Bangladesh, Sri Lanka and Pakistan export garments to the American market paying 15 percent duty.
Bangladesh Tariff Commission chairman Md Mojibur Rahman told reporters on Oct 4 after a meeting of a high-powered committee on WTO issues: "Our US-bound clothing products will be seeing a 10 percent tariff cut (from 15% to 5%) within 10 years."
"But if Sri Lanka and Pakistan get the same tariff cut in just five years, then our export is going to face huge negative impacts."
An official of the WTO cell of the commerce ministry told bdnews24.com that the five garment products of Sri Lanka and Pakistan proposed for tariff cuts are 50 percent identical with Bangladeshi ones.
"If the facility is in place, it is obviously going to hit Bangladeshi exports," the official said.
Faruk Khan said, "We are taking necessary preparations for the WTO conference. There is very little scope for negotiation in this conference. But we are still hopeful about presenting our demands."
He also said that Sri Lanka and Pakistan would not oppose Bangladesh getting DAC privileges.
The commerce minister said Bangladesh will also raise other pressing issues at the conference.
At present, 97 percent of Bangladesh's exports enter the American market free of taxes, but Bangladesh's chief exports such as garments, leather products and others are not included under the duty free facilities.
Faruk Khan said, "The issue of enabling our chief exports to enter the American market wholly duty-free will also be raised at the conference."
The other issues include the recession's effect on Bangladesh trade, quota-free market facilities and removal of any export bar regarding food imports of less developed countries.
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