Clips from the Press


Existing provisions of WTO accord not friendly for LDCs

The Bangladesh Observer
January 27, 2004
Staff Correspondent

 

 Back to Clip Index

Existing provisions of the World Trade Organisation (WTO) agreement regarding the dispute settlement understanding (DSU) is not friendly for the Least. Developed Countries (LDCs). Instead LDCs concerns are neglected in WTO agreement. It has been observed that over 280 disputes brought in WTO for solutions did apt Involve LDC. Dennis Browne,''-Director Emeritus of Centre for Trade Policy and Law, (CTPL) said that there have no enough provisions and legal contents in, the dispute: settlement issue in WTO agreement. Centre for ' Policy Dialogue (CPD) in collaboration with CTPL organised a dialogue on 'Dispute settlement in the WTO: How Friendly is it for the LDCs?' at the CIRDAP auditorium on Monday. Browne presented a key note pa-per at the dialogue. Browne mentioned some remedies to improve the provisions on DSU. Dispute settlement talk should be held in the capital of least developed country and no settlement talk will cross 60 days limit. There may have also options for use of good offices, conciliation, mediation in case of failure in consultation. In case of conciliation or mutual understanding, both 'parties need to give extra 15 days to accept the solution proposal. He made another proposal that in case of failure in consultation and mutual understanding stages, expeditious arbitration should see its result within 60 days instead of three years. Besides, if any action of any country affects any enter-prise of LDC, monetary compensation may be given, he added. Under the existing provisions of WTO agreement, dispute settlement is 'too complex, too expensive and time consuming.' Ustially any dispute settlement talk is held in Geneva. Dispute settlement process takes about three years. Such huge time for any solution can affect the economy of LDC like Bangladesh, Director Emeritus, of CTPL told the dialogue. Moreover, solutions following the existing 'provisions of dispute settlement understanding cannot repair the dam-ages suffered by LDC enterprises. Pointing .out an unfavourable point for LDCs in WTO' agreement he said that any dispute accrued to WTO's benefit can be impaired or blocked by another member. In this case, he referred Bangladesh's situation in response to imposition of anti-dumping duties on Bangladeshi products. As the safeguard measures for LDCs in the form of special and differential (S&D) treatment is neglected in the WTO provisions he said, 'soft laws that include special and differential treatment provision tends to be nullified.' For this, most of the S&D measures are not enforceable. Honouring the provisions is completely dependent on the good will of the opposite party, Browne said adding 'no progress has made on S&D issue after Doha Ministerial Declaration.' However he recommended four approaches dispute avoidance, mutually agreed settlement, self help and legal regulation for any meaningful solutions. Attended the dialogue as the Chief Guest Commerce Minister Amir Khosru Mahmud Chowdhury said that WTO panel for dispute settlement should include LDC member. To improve the WTO provisions on DSU, the Minister said that they would put forward concrete suggestions on twelve areas in the perspective of LDCs. "We brought the consultation issue before anti-dumping and compensation issue in case of damages in the already signed SAFTA agreement and hope to raise these issues to be incorporated in WTO agreement," Khosru said. About the funding of litigation for LDCs the Minister said that such cost should come from global trust fund and there had such proposal in the Doha Declaration. Chaired by CPD Executive Di-rector Debapriya Bhattacharya the dialogue was also addressed by Tariff Commission Chairman Mohammad Ali Taslim and Awami League leader Mohammad Faruk Khan MP. The open discussion session of the dialogue was participated by representatives of political parties, government officials, business representatives, civil society activists and development partners.