Pursue efforts to get included in WTO’s NFIDC list: Speakers

Bangladesh should pursue with the World Trade Organization (WTO) to be included in the list of net food-importing developing countries after LDC graduation to continue providing subsidies on agricultural exports, speakers said at a seminar on Sunday.

At the same time, the country should also develop export assistance schemes in compliance with WTO provisions, they said.

Support to Sustainable Graduation Project (SSGP) of the Economic Relations Division (ERD) and US Department of Agriculture (USDA)-financed Bangladesh Trade Facilitation project jointly organised the seminar titled ‘Impacts of LDC Graduation on the Agriculture Sector and the Way Forward’ in the capital.

The speakers observed that the government should continue its support for agricultural production and export incentives under different schemes that are aligned with local demand and harmonised and compliant with the WTO after the country’s graduation from LDC status.

They also called for improving the business environment and addressing the compliance issues in the agriculture sector.

Agriculture Minister Dr. Muhammad Abdur Razzaque attended the programme as the chief guest while State Minister for Planning Dr. Shamsul Alam as the special guest. ERD Secretary Sharifa Khan chaired the event.

Dr Abdur Razzaque said that Bangladesh can mitigate the impact of LDC graduation through enhancing the production and quality of its agricultural products.

Shamsul Alam said the withdrawal of specific facilities after LDC graduation will create the compulsion for enhancing internal capacities.

ERD Secretary Sharifa Khan in her speech put emphasis on policy continuity for maintaining the growth in the agricultural sector. She also said that the government is pursuing with WTO to be included in the list of net food-importing developing countries after LDC graduation.

Welcoming the participants to the seminar, Farid Aziz, Additional Secretary of ERD, said that the government has taken various measures to ensure a smooth and sustainable transition from LDC status.

Chairman of Research and Policy Integration for Development (RAPID) Dr. Mohammad A. Razzaque presented the keynote paper on the findings of the USDA-financed study titled “Implications of LDC Graduation for Bangladesh’s Agricultural Exports: Issues and Policy Options.”

Dr. Razzaque noted that average tariffs on Bangladesh’s agricultural exports might increase in major overseas markets after LDC graduation in the absence of duty-free and quota-free (DFQF) facilities.

In this context, he laid emphasis on proactive engagement with trading partners to negotiate extended preferences, enhancing the capacity of domestic firms, and reducing the cost of doing business to address the LDC graduation challenges. As the domestic support provided for agricultural production is much lower than the allowable limit set by the World Trade Organization (WTO), he said, the country will not face problems in increasing the volume of domestic subsidy.

Cautioning that the country could face significant challenges in continuing targeted export incentives for agricultural products, Dr. Razzaque recommended that such subsidies be prudently categorised.

The necessity of production subsidies in the context of climate change and vulnerability of poor and marginal farmers was also highlighted at the seminar.

Michael J Parr, Project Director of USDA-financed Bangladesh Trade Facilitation Project, mentioned in his vote of thanks that USDA would provide necessary technical assistance to Bangladesh in facilitating agricultural trade through process simplification, management process automation, capacity building of food and chemical laboratories, and encouraging investment to improve the cold chain system.