IV. The July 2005 GC Meeting

Although the GC Meeting of July 27-29, 2005 was expected to come up with a new set of decisions benchmarking the progress in current negotiations, unfortunately no progress per se was achieved in the meeting. The expectation to clinch the so called First Approximations could not materialise in view of the continuing differences in opinion among the Members. However, in order to conduct the future negotiations with the objective to achieve fruitful results, a number of issues of interest for the LDCs were highlighted in the report by the Chairman of the Trade Negotiations Committee (TNC) to the GC.

Agriculture: It was mentioned that operationally effective and meaningful provisions for S&DT in favour of developing country and LDC Members would have to permeate all areas under negotiation, and would have to be progressively developed.

NAMA: The report mentioned that there was a need (a) to move beyond the debate about the structure of the formula, (b) to forge common understanding on the treatment of unbound duties, and (c) for further identification of expectations by Members in all areas of negotiations.

Services (GATS): It was strongly noted that the Members should decide on the key elements necessary to produce a satisfactory outcome of commitments that go beyond current levels of liberalisation.

Rules and Trade Facilitation: The Chair's report underscored that the Rules Negotiating Group was working on submissions proposing specific changes to text of the Agreement. It was further stated that there was divergence of opinion pertaining to the application of the new process to RTAs notified under the Enabling Clause. As for Trade Facilitation, newly included in the WTO negotiations, it was stressed that S&DT and support for capacity building would need to be a particular focus in the upcoming negotiations.

Development Provisions: Market access was recognised as a central plank of developing countries' strategy to alleviate poverty and integrate their economies into the global economy. In this context, it was noted that LDCs need to be provided with predictability and security in terms of market access for their products.

V. Future Challenges
Taking into cognisance the abovementioned developments of recent times, the road to Hong Kong appears to be a journey beset with many obstacles and pitfalls which WTO Members will need to negotiate in the coming weeks and months. In view of the fact that many issues remain unresolved, and members will be under enormous pressure to reach negotiated settlement of these issues, the LDCs ought to remain engaged, active and vigilant.

Given the current state of negotiations and in light of the emerging scenarios, some of the major concerns for Bangladesh can be articulated as the followings:
- Addressing consequences of tariff preference erosion, which is the major challenge in the context of NAMA
- If cotton prices goes up as a consequence of disubsidisation, Bangladesh's competitiveness in clothing export could suffer
- Liberalisation of agriculture could lead to rise in food price with consequent adverse impact for net food importing countries such as Bangladesh
- No positive movement in services (Mode 4) negotiations means the net outcome may not be positive for Bangladesh
- No binding commitment for zero tariff market access for all products from LDCs
- Market access in developing countries in a position to do so
- Linking up Aid for Trade within the ambit of WTO and in the context of UN MDG Summit in September
- Concentrate on advancing LDC interests in the context of the upcoming GC Meetings (October 19-20 and December 1-2, 2005)
- Drawing synergy from civil society initiatives (CPD's forthcoming LDC Forum)
- Need for continuing proactive engagement of LDCs in the forthcoming negotiations
- Focus on maintaining the LDC front and dialogue with the developing countries
- Need for another LDC Ministerial before Hong Kong

VI. Concluding Remarks
As has been in Cancun, agriculture may once again become the deal maker or deal breaker in Hong Kong. Nevertheless, the LDCs are also concerned about the likelihood of preference erosion that may result as a consequence of the current round of NAMA negotiations. Negotiation on services, and more precisely GATS Mode 4, remains an issue where the LDCs will need to emphasise on the implementation of the Modalities for the Special Treatment in the negotiation. Substantive work still remains on what is needed to ensure that negotiations on rules in their various dimensions make sufficient progress by the Hong Kong Ministerial so that a meaningful package can be designed for the Meeting. More importantly, it needs to be seen how the developed Members react to the LDC demand to grant immediate, non-reciprocal and binding commitment as regards duty and quota-free market access for all products from LDCs.

There is no denying the fact that the Hong Kong Ministerial will be an important milestone in the Doha Round, particularly in view of the failure of the Cancun Meeting to deliver a consensus. It is likely that one will witness hectic negotiations during the September-November 2005 period, under the new leadership, and possibly leading right up to the Ministerial meeting itself. The General Council Meetings, scheduled to be held respectively during October 19-20, 2005 and December 1-2, 2005, will no doubt be two crucial milestones in heading towards the Hong Kong Ministerial in December. Although the mantle of spokesmanship rests now on the shoulders of Zambia by all accounts, LDCs will continue to look up to Bangladesh to provide leadership. Consequently, Bangladesh will need to continue the good work it has been doing in advancing LDC interests in the context of the WTO.

Concluded