Now Is The Time For You To Know The Truth About Achievements Of Bangladesh After Entering Into WTO
Developing countries like Bangladesh have limited bargaining power due to their limited share of world markets and we do not have sufficient skilled Trade Negotiator to handle WTO negotiation table efficiently in both the public & private sector. With so many difficulties Bangladesh also achieved some trade facilities from WTO.
1. Membership of the World Trade Organization (WTO) has boosted the GDP of Bangladesh by $1759.73 million in 25 years, according to a study conducted by a global think-tank.
2. The country has gained 2.47 percent of its Gross Domestic Product (GDP) with regard to welfare due to its accession to the WTO.
3. The export gain of Bangladesh is estimated at $3539 million during the period under review as exports increased by around 13 percent.
4. Statistics available with the Export Promotion Bureau (EPB) of Bangladesh, however, showed that total export earnings stood at $320.80 billion during the period under review.
5. Being a Least Developed Country (LDC), Bangladesh has no commitment to cutting tariff rates but enjoyed preferential market access for its goods to different developed countries under the WTO framework.
6. Market access brings major benefits to the country's export sector.
7. The average tariffs came down significantly over the past decades.
8. Most favored nation tariffs (MFN tariffs) were reduced on average by about nine percentage points from 1988 to 2016 starting at a level of 17 percent being lowered to about 8.0 percent in 2016. Similarly, bound tariff rates were reduced by about 8.0 percentage points from 40 to 32 percent. These figures indicate a successful reduction of customs duties.
9. According to the World Trade Statistical Review 2020 newly released by the World Trade Organization (WTO); in the top ten exporters of clothing Bangladesh is the third country and its achievement was $33.6 billion USD, other two countries are China and the EU union.
10. World Trade Statistics Report 2019, In 2008 to 2018 average annual exports, number 1 Vietnam 10%, Bangladesh stood up number 2 and annual average export percentage 9.8%. China and India 3rd and 4th consecutively.
11. Bangladesh, which got the status of lower middle-income country status in 2015, currently benefits from preferential tariffs for its export of goods to some countries, but it might lose access to such lower trade terms once it graduates out of the least developed country list by 2024, as per the World Trade Organization (WTO) norms.
12. Bangladesh get tariff concessions from other member countries like as- APTA or Bangkok Agreement.
13. The WTO Agreement also has a common Rules of Origin (RoO) for determining the eligibility to tariff benefits available under the Agreement.
14. WTO also helps Bangladesh to take capacity building initiatives for sanitation and Phytosanitary measures, technological experiences, standard quality of goods, etc.
15. As a least developed nation Bangladesh also gets duty-free and quota-free market accessibility provided by developed nations.
16. Future negotiations on the agreement of agriculture are very important for Bangladesh. Two recent studies showed that liberation in global agricultural trade would have an impact on Bangladesh's agriculture sector. These studies revealed that Bangladesh had a comparative advantage in the production of potatoes, corn, rice, and different vegetables like brinjal, cauliflower, tomato, cabbage, etc. So trade liberalization in developed countries will increase the possibility of export of these agricultural products from Bangladesh. Moreover, the export of poultry, shrimp, mutton, and different fruits including bananas may also increase. On the other hand, the production and cultivated area of crops like sugarcane and wheat may decrease in Bangladesh in the future.
17. Hong Kong Ministerial conference has agreed to provide duty-free & quota-free market access for the LDCs at least 97% of total products. Here we are getting some ease but we must have to be careful that the 97% duty-free access list must include our major exportable product, otherwise, the total effort will be valueless for us. LDCs must work for exemption of their major exportable product out of the 3% excluded list.
18. Bangladesh can concentrate on the free movement of our labor force into the developed markets under mode –4. This can facilitate more remittances for us.
As we have a less efficient trade negotiator, Bangladesh Foreign Trade Institute (BFTI) can make functional to produce qualified trade negotiators for WTO & other FTA & RTA negotiation.
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