Bangladesh should pursue the inclusion into the World Trade Organization (WTO) list of net food-importing developing countries after the LDC graduation so the country can continue providing subsidies on agricultural exports, speakers said at a seminar on Sunday.
They said the country should also develop export assistance schemes in compliance with the WTO provisions.
Agriculture Minister Dr. Muhammad Abdur Razzaque was the chief guest. The seminar was also attended by State Minister of Planning Dr. Shamsul Alam and ERD Secretary Sharifa Khan, said a press release.
Dr. Muhammad Abdur Razzaque said that Bangladesh could mitigate the impact of LDC graduation through enhancing the production and quality of its agricultural products.
Dr. Shamsul Alam said the withdrawal of LDC specific facilities after LDC Graduation would create the compulsion for enhancing the country’s internal capacities.
ERD Secretary Sharifa Khan put emphasis on policy continuity for maintaining the growth in the agricultural sector.
She also informed that the government was pursuing inclusion in the WTO list of net food-importing developing countries after the graduation from least developed country (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 the average tariffs on Bangladesh’s agricultural exports might increase in major overseas markets after LDC graduation in the absence of Duty Free Quota Free (DFQF) facilities.
In this context, he put 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), the country will not face issues in widening the volume of domestic subsidy,” Dr. Razzaque said.
“However, cautioning that the country could face significant challenges in continuing targeted export incentives for agricultural products,” he added, recommended that the subsidies be categorised prudently.
Former Member of Bangladesh Trade and Tariff Commission (BTTC) Dr. Mostafa Abid Khan delivered a presentation on “Bangladesh’s Obligation under WTO Agreement on Agriculture: Before and After Graduation from LDC Status”.
Additional Fisheries and Livestock Secretary Md Tofazzel Hossain, Director of the Department of Agricultural Extension Md. Tajul Islam Patwary,
Political and Economic Counselor of the US Embassy in Dhaka Scott Brand on and Director of PRAN-RFL Group Uzma Chowdhury spoke as panelsists.
Speakers at the seminar observed that the government should continue its domestic support for agricultural production and export incentives under different schemes that are aligned with domestic demand and harmonized and compliant with the WTO after graduation. They also called for improving the business environment and addressing the compliance issues in the agriculture sector.
The necessity of production subsidies in the context of climate change and vulnerability of poor and marginal farmers was also highlighted.
Michael J Parr, Project Director of the USDA financed Bangladesh Trade Facilitation Project mentioned in his vote of thanks that the 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.
Senior officials from government ministries, agencies and research institutions, representatives from development partners, agricultural and trade associations, and agribusinesses attended the seminar.
