Chinmay Prasun Biswas :
The Ministerial Conference is the highest decision making body of the World Trade Organization (WTO) which is normally held once in every two years.Eleven conferenceshave been held from 1996 to 2017. The 12thconference of 46 LDCs was held at the WTO headquarter in Geneva in last June. The conference was scheduled to be concluded on 15th June but debate on interests of developed and LDCs was at the peak. Due to non-fulfillment of fair demands of the LDCs including Bangladesh and other important issues, time of the conference was extended for another day. Being worried about hotel booking, ticket schedule many representatives from LDCs expressed their grievance and frustration inside the conference hall. Some participants left Geneva before the conference ended. Doubts crept up whether there would be any good announcement at all in the extended period which will be beneficial to the LDCs. Experts apprehended that this conference may also end keeping important issues unresolved.
There was much debate on the role of WTO towards LDCs on the inaugural day because WTO, as alleged by LDCs, has always preferred the interest of developed countries. Bangladesh claimed to enjoy the benefits of LDC for more 6-12 years even after final graduation from the list of LDCs because pandemic has widely damaged the economy. Moreover, ongoing Russia-Ukraine war has pushed world economy towards serious disaster. The European Union has supported Bangladesh’s claim whereas the United States has opposed.
As claimed by our commerce minister, undue interference increases food price. Reckless fishing acts as a threat to poor people and fishermen. So, providing subsidy to reckless fishing must be stopped. Referring to FAO in press briefing, WTO has informed that due to excessive exploitation storage of fish is under risk in many parts of the world. It is assumed that in comparison to 10 per cent in 1974, 34 per cent more fish is being extracted. Due to disproportionate extraction the fish population is continuously becoming unable to replenish itself. Gradually decreasing fish storage increases poverty and push fishermen community towards danger. Regarding this problem there was a draft agreement but member countries have not agreed on some particular points.
From the beginning of the conference some of the LDCs have been forced to withdraw their demands. The developed countries have said that they will help those countries which will transition from LDCs by 2026 and the countries that have already transitioned to maintain sustainable development. In this regard, the WTO will continue consultation process.
2022 was the time limit to enter into the class of developing countries from LDCs. On request of Bangladesh it has been extended upto 2026. After graduation these countries will lose existing trade facilities. WTO will not extend it but it is positive towards those countries which are at the threshold of transition. So, Bangladesh is in an advantageous position. Besides this, influential member countries of WTO are claiming for providing special benefits to the countries which have graduated from LDC. During pandemic LDC countries were the worst sufferers. Therefore, their demand to increase trade facilities has gained stronger ground.
Through announcing Geneva Package the conference ended after much drama but despite continuous discussions no major decision could be reached. However, countries like Bangladesh, which will leave the list of LDCs in 2026 and enter the rank of developing countries, have been left open for negotiations to continue existing trade facilities. Bangladesh can also negotiate to get LDC benefits for at least another six years after 2026. WTO will work for the negotiation.
WTO, as mentioned in the Geneva Package, will provide financial and trade benefits to the LDCs considering the damage caused by Covid-19 pandemic but they should be prepared for any such future situation. The whole world will work together to fight such a global pandemic. It would exempt the World Food Programme from food security, food procurement during emergencies. Consensus can be reached on fisheries sector subsidy, tax waiver on e-commerce and extending trade facilities to those countries which will graduate from LDCs. However, WTO has not yet specified how long and how the facility will be distributed among stake-holder countries. Utilising this clause Bangladesh has the opportunity to enjoy LDC trade benefits even after transitioning from the list of LDCs in 2026 but more negotiation is required.
WTO reported at morning of 17th June that after prolonged discussion of nearly six days and nights its 164 member countries reached consensus on key global issues to facilitate trade growth but could not finalise it. The reasons are not specified in the declaration but a benefit clause has been included in it. For instance, WTO has said in its declaration – ‘In this difficult context we note with satisfaction that LDC members have met or are about to meet the graduation criteria set by the United Nations Development Principles (CDP). Acknowledge the special challenges that graduation presents, including the loss of trade-related international support systems, as they leave the LDC sector.’
Crude analysis undoubtedly clarifies that the 12th ministerial level conference of WTO could not take any major decision regarding the justified demands of LDCs, Regulators and leaders of world trade have failed to agree on other important points. Main demands of this year’s conference was to stop subsidising deep-sea over fishing, reduction of agricultural subsidies and retention of trade privileges of concerned countries after transition from LDCs. None of these claims were fully met. However, the developed countries have to some extent agreed to discuss issues like maintaining financial and trade benefits for corona affected countries, to ensure food security, not hindering the movement of food from one country to another among the developed countries and the LDCs etc.
In the last scene of the play frustrated Macbeth uttered —
“——- Life’s but a walking shadow, a poor player,
That struts and frets his hour upon the stage,
And then is heard no more. It is a tale
Told by an idiot, full of sound and fury,
Signifying nothing.”
Simply speaking, LDCs are poor players on the stage of WTO. Commitments from rich countries continue but for LDCs those signify nothing.
(The writer is a former
Commissioner of Taxes).
