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Dhaka to get zero tariff access to EU markets from next year
UENEVA Oct 29: The world s poorest countries have been offered better market access deals by some of the richest nations in a further bid to boost third world exports and growth, trade officials said here yesterday, reports AFP
The European Union confirmed it would extend the preferential treatment dished out to Lome Convention members to all 48 beast Developed Countries (LDCs) as ranked by the United Nations, the Director General of the World Trade Organisation Renato Ruggiero told a briefing.
Some 71 African. Caribbean and Pacific countries (ACP) fall under the Lome purview. Nine, mainly Asian countries who
fail outside the ACP umbrella stand to benefit from the EU measure, which will take effect from the beginning of January
From next year, Afghanistan. Bangladesh. Bhutan. Cambodia. Laos, the Maldives. Myanmar. Nepal and Yemen will enjoy zero tariffs on all industrial and agricultural products they ship to EU mar-
Meanwhile, Canada said it would bring forward by one year to January 1. 1998 tariff reductions it was obliged to enact in 1999 under its Uruguay Round commitments.
It also said 11 would eliminate all tariffs on LDC product lines that were less than two per
cent, trade sources said.
These offers were announced at a two-day high-level meeting for LDCs Which ended Tuesday in Geneva, sponsored by the World Trade Organisation and five other inter-governmental agencies.
Securing concrete commitments from WTO members on LDC market access is a central theme of the two-day session, which is also aimed at addressing poor country supply side and technological constraints to increased trade
LDCs account for 10 per cent of the world's population but barely one-half of one per cent of world trade. Ruggiero said.
Tariffs on LCD exports in their 23 main export markets stand at an average 10.6 per cent, with rich countries levying average tariffs of 1.8 per cent.
Although 70 per cent of LDC exports enter industrialised countries on a duty free basis, high tariffs are still widespread. according to a study by the WTO and UN conference on trade and development, which is co-sponsoring the meeting.
Most peak tariffs range from 12 to 30 per cent, particularly on food exports including meat, sugar and milk.
Norway, which has abolished duties on all but two LDC products, said all textile restrictions would go by 1998, trade sources said.
In Japan, some 80 per cent of 112 products of interest to poor countries are tariff-free and Tokyo is considering extending its preference scheme to further improve poor country access to its market.
Switzerland levies no tariffs on 98 per cent of LDC imports.
The United States told the meeting it had widened its General System of Preferences (GSP) — Washington's version of the Lome Convention — to include a further 1.743 tariff lines on products shipped by LDCs.
Imports under the GSP programme last year were valued at
17 billion dollars. Assistant US Trade Representative for Trade and Development Jon Rosenbaum said.
Under Washington's so-called "Africa Initiative", announced by President Bill Clinton in June, countries pursuing "aggressive" market liberalisation policies would be eligible first for further trade sweeteners, followed by greater US bilateral technical assistance and debt reduction. Rosenbaum said.
Other countries announcing concessions to all or some LDCs, according to trade officials, include Morocco. Thailand. Singapore. India and Mauritius.
Earlier, at the concluding session, the LDCs called upon the developed and developing countries to notify details of their initiatives to improve market access for the LDCs.
The meeting encouraged all WTO members to keep under active review all options for Improving market access for LDCs presented in the integrated WTO plan of action for the LDCs and to monitor the implementation of the commitments made in this regard.
It endorsed two reports on the two thematic roundtable discussions. Commerce and Industries Minister Tofael Ahmed, as the chairman of the session, presented the recommendations of a roundtable titled Building the Capacity to Trade in LDCs.
Tofael called upon the IMF. ITC. UNCTAD. UNDP. World Bank and WTO to continue and intensify their cooperation in supporting LDCs in their efforts to integrate more effectively in the international economy.
Supplementing the minister's plea. MCCI President Samson H Chowdhury called upon the multilateral financial organisations to support the private sector by giving investment loan and ODA for social development.
However, six inter-governmental organisations which participated in the meeting agreed that a trade related technical assistance programme will be provided to LDCs before March 15 next.