Professional Documents
Culture Documents
Annex- I
Welcoming the attendance the Chairman opened the meeting and raised the issue of approval of the
decisions taken as per the minutes of the last and sixth steering committee meeting of BTSP held on
1st August 2007. As there was no comment or objection, the meeting unanimously approved the
minutes of the sixth steering committee meeting. He then requested the Programme Director to
proceed discussion as per agenda of the meeting.
Mr. Shawkat Ali Waresi, Programme Director briefly stated the progress of BTSP with power point
slides and highlighted the progress of components’ activities since holding of the last PSC meeting.
With regard to the biggest component of the Programme he informed the meeting that the suspension
of EC fund for BFTI has been withdrawn. The recruitment of the CEO, PD, Fellows and Research
Associates has been complete. The supply of furniture, computer and other equipments has almost
been complete. He further stated that the twinning, training and other promotional activities by the EU
experts are going on. Like all other components BFTI is now fully operational.
As regards the progress of different ongoing studies of the components he gave a detailed description
of the present status of these studies being carried out by local experts. Towards capacity building of
the components he also gave brief description of the study tours taken by each component and the
presentation of the tour reports for sharing experiences with the component officials.
As to the financial progress of BTSP, the Accounts Director (AD) made a brief presentation of the
updated component-wise expenditure. He stated the till date expenditure of the Programme for the
current financial year and head-wise expenditure since the inception of the Programme in July 2005.
While mentioning about financial progress he stated that only 35% of the total Programme budget has
been spent during the last thirty four months. Regarding the slow financial progress he explained that
this was due to the late start of Programme activities and almost insignificant expenditure in year one.
Also non-disclosure of component-wise Direct Project Aid (DPA) expenditure of the Services by ECD
in time is liable for this, he added.
At this point Chair asked the representative from the EC Delegation why component-wise DPA
expenditure could not be provided to the PTF by the ECD. The queries were raised by the ERD
representative and Deputy Chief, Planning of MoC. The Programme Officer from ECD replied that
there was no mechanism in the Delegation to provide such detailed component-wise figures. It was
decided by the Committee that PTF would request ECD to provide detailed DPA expenditure monthly.
The representative of the Delegation of EC assured that the ECD would look into the matter to report
the component-wise DPA expenditure.
Agenda item 3 and 4 : Discussion on and approval of the AWP-3 of BTSP AND Updates on
the Components of BTSP
The Annual Work Plan for Year 3 covers Programme activities from September 2007 till end of the
project in December 2008. With this respect the PD, BTSP mentioned that this seventh PSC meeting
has mainly been called for discussion and approval of AWP-3. The AD gave brief highlight of the
activities of the components as mentioned in the Plan. He stated about the actual programme
expenditure in Years 1 and 2 and the proposed expenditure for Year 3. In response to a query by the
Chair as to how this surplus will be dealt with, the PD opined that the surplus can be utilized in the
implementation of the important recommendations of the concluded studies of Component 2 of MoC
and Component 4 of DoS. This justifies the extension of the Programme beyond December 2008. The
Component Director of Department of Shipping (DoS) also expressed concern about timely
completion of the Do
S studies by the EU and local consultants. It was suggested that DoS should explicitly raise the matter
with PTF, MoC and ECD for taking necessary measures.
In reply to observations from the representatives of a Chamber of Commerce about involving the
private sector in the programme activities, the PD informed the meeting that the relevant stakeholders
of the private sectors are always invited to the workshops and seminars held in connection with the
studies of different components.
Agenda item 5- Any other business.
The President of Institute of Fashion Technology (BIFT) drew the attention of the Chair of the long
gap between holding of the sixth and seventh PSC meeting and asked for more visibility of the
Programme studies and study tours. He also requested for copies of the OWP and AWPs to get
comprehensive ideas of the Programme activities. The EC representatives referred to the report of EU
Review Mission on BTSP and formulation of the Trade Policy Support Programme under MoC and
stated that the extension of Programme funding will be based on the successful outcome of the study
reports of the Components. The Chair assured the meeting that the matter will be discussed in detail
in the next meeting which he instructed to hold before the holy month of Ramadan.
Decisions:
a. The minutes of the Sixth Steering Committee meeting of the BTSP is approved.
b. The Annual Work Plan for Year 3 (AWP-3) of BTSP is approved and copies of the same
will be distributed amongst all concerned.
c. CEO of BFTI shall send a letter of request to the MoC with adequate justification for
extension of BFTI component after 31 December 2008. ECD is requested to take
necessary steps to amend the Financing Agreement.
d. The Department of Shipping, Component-4 of BTSP shall clarify the state of its studies to
the PTF, Ministry of Shipping and Ministry of Commerce.
e. The Delegation of EC is requested to report component-wise DPA expenditure to the
PTF on monthly basis.
f. The next PSC meeting will be held before the holy month of Ramadan to discuss the
further extension of the activities of the BTSP components.
As there was no further point of discussion, the meeting ended with a vote of thanks to and from the
Chair.
Sd/-
(Feroz Ahmed)
Secretary
Ministry of Commerce. Dated: Dhaka, 3 July 2008.
Attendance of the Seventh Program Steering Committee meeting of BTSP held on 25th
May 2008
Annex- II
The consultants would conduct the study in 13.5 weeks from the date of Kick-off Meeting in the
following broad phases. The Gantt chart below illustrates the implementation schedule by activities
and time periods:
Gantt chart: Implementation (work) schedule by activities and time periods ( activities overlap )
Annex - III
Background Paper :
The European Union (EU) is the biggest market of Bangladesh for the exports of Ready Made
Garment (RMG), both woven and knitwear, generating about 58 percent of Bangladesh’s global
export. RMG export is the lifeline of Bangladesh and constitutes about 75 percent of total exports.
Starting with only nine export-oriented RMG units in 1979 and revenue earning of less than 1 million
US Dollar, the RMG industry achieved a phenomenal growth, with more than 4,300 units and total
exports exceeding US $8 billion in the financial year 2005-2006. The growth is continuing and the
present figure of exports is around US $10 billion. The industry employs over 2.2 million workers,
about 80 percent of whom are women from socially disadvantaged groups, with about 10 million direct
or indirect beneficiaries.
The forty years old MFA quota system has allowed Bangladesh and some countries to develop their
apparel and textile industries rapidly as they received preferential market access and protection from
global competition. With the MFA phase out from January, 2005 and expiry of the safeguard
measures in 2008, Bangladesh will face greater competition in the importing countries. In order to
retain the market share of Bangladesh Textiles and Clothing exports to the EU and exploit the
opportunities of enhancing exports following the quota phase out from January 2005, various social
and other compliances, particularly pertaining to environment on the part of the manufacturers /
exporters has become a key factor in outsourcing the decisions of the buyers in the major importing
countries. This issue has drawn more attention of these stakeholders and led to concerns among
some buyers. In the context of such a situation, a study to formulate short and long term strategies
and action plans to achieve the required standards and compliance in the textile and garment sectors
of Bangladesh has been undertaken under the BTSP. It is expected that this study would help remove
the concerns of the buyers and would make Bangladeshi products more competitive in the global
market. This study is one of the several studies undertaken under this project.
Various agencies are working on compliance issues. The exporters have to meet compliance
standards as per buyers’ requirements. Both BGMEA and BKMEA are supervising factories under
their respective areas. Ministry of Labor and Employment, Department of Fire and Civil Defense and
other agencies are inspecting and monitoring the factories to comply with the laws of the land.
There are many initiatives under way. Many buyers have developed their own codes of conduct which
are to be implemented in their supplier’s companies. Besides the SCF, there are Bangladesh Labor
Law 2006, Bangladesh Labor Welfare Foundation Act, 2006, Environmental Conservation Act 1995,
Environmental Conservation Rules 1997, Environmental Court Act 2000 and the tripartite MOU to
ensure compliance. The Bangladesh Building codes are ratified.
(i) Global objective: To retain or enhance as far as possible the market share of Bangladesh
textile and clothing exports to the EU.
(ii) Specific objective: To remove the concerns of European and other textile Buyers
regarding the social and environmental conditions under which the Bangladesh textile
industry manufactures and exports product.
Annex - IV
Component 2 ( MoC) : Workshop 2 Presentation of Draft Final Paper on Compliance
Findings and Recommendations
Findings
j) About forty trade unions of RMG workers have grown up in recent years. These trade unions are
very much aware of their rights and obligations and they take industrial actions when the factory
owners fail to fulfill their commitment.
k) The NGOs and the Civil Societies are also pressure groups on the RMG factory owners, and
induce them to improve the welfare of the workers.
l) Compliance means additional costs for the industry. Experiences reveal that compliance
initiatives are hardly remunerated by the buyers, rather the fall in CM price continues, while costs
are increasing. Thus initiatives of the exporters are not rewarded in the form of ethical buying.
m) According to BGMEA and BKMEA, full compliance of member companies is expected in 2 years
time, however, the advisor in charge of MoC, while talking with the stakeholders with the RMG
sector, admitted that rate of fully social compliant factories declined to 51% in January from 56%
in December 2007. This trend is alarming in view of the fact that the tripartite agreement was
signed in 2006.
n) Medical Centers for the emergency and routine treatment of workers are available in many
factories.
o) Child labour has been totally abolished from the exporting RMG factories.
g) To improve the pollution situation, GOB has decided to set up a RMG cluster (Garment Pallis) in
Munshiganj district near Dhaka with about 300 units. The Palli will have a central ETP for all types
of industries. No specific deadline of establishment of the cluster could be ascertained by the
consultants. More such clusters in other locations would be necessary to improve the
environmental compliance. However, the problems associated with the migration of the workers
(accommodation, livelihood of other members of families, infrastructure, etc.) would have to be
considered.
h) When introducing an ETP or micro filtration waste water treatment in a company, new special
professional knowledge is required for proper operation of the plant. Such experienced people are
not much available in Bangladesh and most are already employed by larger companies with ETP
in place.
b) Compliance costs money. Many companies suffer from reduced margins and profits due to
increasing costs, while prices paid by buyers are under constant pressure.
c) As larger the order and smaller the exporting RMG company (non-composite), supply chain
management becomes an important cost, quality and planning issue. There are many useful
methods and tools that can improve supply chain management in the RMG reality. Not much
management training related to the subject has been yet offered.
d) Besides compliance, other most important purchasing criteria are lead time, production
specialization, quality consistency and price.
e) Cost of compliance (environment) is high for smaller companies with little profit margin. Socially
compliant RMG companies can increase their productivity by up to 10% (workers motivation,
health, less staff turnover, etc.). Environmental compliance does not have much effect on
productivity, except improved EHS and more efficient and better manual handling of dyes and
chemicals in the process.
f) Bangladesh suffers from an image problem in the west, partly because of single sided reporting
by some journalists who often focus on negative aspects rather than also reporting about positive
aspects, but also due to the insufficient image building communication activities by Bangladesh’s
players. Good communication needs to be focused and convincing, including positive
developments and existing weaknesses. Bangladesh, as an LDC, has by now achieved
commendable success in various fields like RMG production, micro finance, women
empowerment, and population control, access to pure drinking water, literacy and poverty
alleviation. These could be focused for the image building of the country.
g) Current PR and export market promotion programs are not much focused to specific export
market requirements. Image promotion is not up to the same level as product promotion. Image
promotion is often still considered rather wasting resources. The opposite is true; image
promotion in Western countries is strongly growing in importance – combining a good image with
good service and products. To-date no suitable international annual communication plan exists in
the EPB. Any success in international image promotion will depend on how well activities are
combined, focused and professionally introduced in the different target markets. Any budget will
have to take into consideration that it is not primarily important what Bangladesh PR specialists
think what should be done, but what European PR specialists recommend is most suitable in the
specific country and sector situation.
h) The CMC in EPB is not properly organized. The number of officials involved is too small for the
challenges ahead. It is learnt that UNDP provided initial support for a year and after that the
consultants had to leave as financial support for their continuance was not available either from
the donors or the GOB. This has made the CMC almost non-functional as EPB has no budgetary
provision to maintain a cell with required number of staff and logistic support. Though at the
moment, a Deputy Director of EPB is in charge of the CMC, it is impossible for him to monitor
about 4,500 RMG factories. If funds are not available from the donors.
i) Associations mention that buyers pay 5% higher prices for the same products in competitor’s
countries, such as Cambodia or Vietnam. In order to determine current and future competitive
edges of compliant export companies, benchmarks of the main competing countries/companies
should be known to the local authorities and entrepreneurs in order to enable increasing or
maintaining competitiveness, based on facts.
j) Requirements in teaching and curricula are changing rapidly according to new technologies,
automation, ETP and micro filtration, management methodologies, reporting, quality systems, etc.
k) In spite of the fact that RMG is a vital sector for Bangladesh economy, there is no separate
ministry or attached government department to plan the strategies, rules and regulations, create
export conducive conditions oversee and monitor the activities of this sector. EPB is mainly an
export promotional body that oversees market development for all Bangladeshi products.
l) Even though about 40 trade unions grew up, effectiveness is yet to be proved. Some of them
deviate from their jurisdiction, having relapsed to destructive activities. Apparently there is no
coordination among this large number of unions. In some cases, it appeared that they do not have
control over destructive activities of the workers who become violent on very small issues, not
related to compliance. Too many trade unions with diverse leadership and policies cannot
function properly for realizing compliance for the workers. The mushroom growth of the trade
unions is mainly because of personality clashes of the leaders. Recent newspaper reports reveal
that violence is taking place quite frequently in the RMG sector on various allegations and the
workers are causing serious damage to property, making the owners financially fragile. For no
valid reasons, sometimes tension between owners and workers is increasing.
m) Statistics from different governmental organizations and association’s source are reading
differently and achievements are not always congruent.
n) Compliance is one important factor of export competitiveness of the Bangladesh RMG producers.
Other competitiveness factors are becoming increasingly important to the compliant companies in
order to safeguard their export business in future. Associations are not getting always positive
response from the government when it comes to favourable sector framework conditions (energy,
soft loans, infrastructure, exemptions of duties and VAT on imported equipment for ETP, etc.).
o) 80% of the RMG exports from Chittagong based companies are going to the US, and only 20% to
the EU and other markets. About 40% of the Chittagong factories (20% of total Chittagong
production) need to be relocated in order to become compliant. 200 out of 700 RMG companies in
Chittagong are sick and some stopped production, also because of non-compliance.
a) The Bangladesh Labour Law, 2006, is the base line for minimum compliance.
b) The Garment workers have resentment against Bangladesh Labour Law, 2006. According to
them, this law does not fully guarantee the functioning of the trade unions freely.
c) DoE feels that the Bangladesh Environment Conservation Act 1995 does not give them authority
to organise mobile courts against violators of the environmental regulations and impose penalty
on them on the spot.
d) The office of the Chief Inspector of Factories filed many cases in the Labour Courts against
defaulters of compliance but disposal of cases are pending for years. Previously, they got quicker
results in Magistrates Courts but Labour Law 2006 does not permit that. If a factory is found guilty
of non-compliance, the Labour Courts can realise a fine of only Taka 1,000, which the factory
owners do not take seriously.
e) Currently, sweater and garment production as well as textile washing is classified ORANGE-B.
Dye houses (of which washing is a part) are categorized RED. Considering that fabric washing
(e.g. bleaching process) includes highly toxic elements and is part of the dyeing and finishing
process, the current situation should be re-considered and reviewed. Washing should be
classified RED as well. It is not practical to have two classifications for one process.
f) Overlooked areas in the Bangladesh Labour Law, 2006 are related to: part time employment,
position of contractor, weekly holiday and closure of establishment, maintenance and retention of
prescribed books and register and termination without any stigma.
Recommendations
Recommendations: Social Compliance
a) GOB may appoint on an urgent basis a wage board to look into the matter of adjustment of wages
of RMG workers in view of the rising inflation and increased costs of food and energy. Such
wages revision should take place every three years.
b) There are conflicting reports on compliance. All the organizations involved in compliance should
have better coordination among themselves in order to avoid such conflicting reports. A
strengthened CMC in EPB can do that.
c) BGMEA and BKMEA may consider further incentives for their workers. BKMEA already
introduced subsidized rationing system for their workers who are hard hit by price increase of food
items. BGMEA may also follow similar steps.
d) The associations should introduce means of increased communication about stage of compliance
and related problems, with workers, NGOs, civil society and other stakeholder. These would
improve relationship between the workers and the factory owners.
e) To undertake more welfare activities for the workers, BGMEA and BKMEA may realise a small
percentage (to be worked out under a separate study) of export bills and create welfare funds.
The workers may also be motivated to contribute a very small sum (say Taka 1 per worker per
week) to this fund. This fund may be used to help the workers in times of dire crisis/disaster,
prolonged illness, costly treatment, etc. A Management Board, consisting of representatives of
GOB, the owners and the workers would run the proposed Welfare Fund.
f) Full social compliance must be achieved in all exporting factories in a maximum of 2 years time.
g) Proper costing and reporting systems in the compliant companies need to be introduced (where
already not existing), in order to enable justified price decisions to buyers.
Recommendations: Environmental Compliance
a) Conducting of a mapping analysis with indication of existing grouping of dye houses in the
industrial areas in Dhaka and Chittagong with the objective of finding out feasible central ETP
installations and best cluster development sites will have to be done on priority basis.
b) A study needs to be undertaken to determine whether development of big clusters (like the one
planned in Munshiganj) would be feasible and viable (issues are: migration of workers and
development of infrastructure, central ETP). GOB may think of mini clusters on experimental
basis. A separate study on this is recommended.
c) A study should find out how sludge can be disposed by commercial recycling companies for
usage as burning material by adding soda, etc. and converting the material into compressed
blocks. It should also be found out whether or not the burning of sludge can have toxic side
effects that would not allow the material to be used as burning material. Better control of sludge
disposal practices by companies is required.
d) DoE should monitor ETP installations and their performance more closely and come up with
accurate statistics.
e) DoE should introduce training seminars for ETP operators. ETP operations should be included in
curricula, run by the current textile training institutes and courses.
a) DoE in cooperation with international buyers should design and execute training programs on
handling of chemicals and dyestuff in dyeing house operators.
b) DoE and associations should introduce and publicise the concepts of eco-efficiency in dyeing
houses, connected to OHS/EHS and efficient use of energy and water.
c) DoE and associations should check on applicability of the software based analysis of eco-efficient
production in textile plants. The software has been developed in a PPP project between BASF,
UN, UNEP. (More details are in paragraph 3.4.6. of this report).
d) Initiatives to qualify and sign up for Eco labels by exporting companies (EU and US labels) are to
be promoted.
e) Safety of the workers in the factory buildings will have to be ensured by observing the approved
building code by factory owners.
f) EPZ factories should be brought under the same monitoring authority and reporting system as all
other exporting RMG companies.
a) The government departments involved directly in monitoring should have appropriate staff, and
facilities for training them and appropriate budget allocations. The performance of these staff
needs to be monitored and good workers need to be rewarded. Government should look into this
on priority basis and conduct a separate study to strengthen these institutions so that they can
perform their task efficiently and speedily.
b) It is necessary to develop a better knowledge base of the competitive edges of the Bangladesh
exporting RMG companies in order to decrease the dependency on price issues, which seem to
be prominent. A benchmark study in main competing countries would be necessary, studying:
compliance level, price levels, specific benefits, cost levels, sector scenarios, supply lines and
supply chain management, framework conditions and legal system and country brand.
c) Awareness building among the factory owners, management staff as well as workers needs to be
further intensified. In recent days, there has been frequent violence by the RMG workers in
different parts of the country, causing considerable loss to a number of factories, uncertain or
delayed delivery, stock-lot, cancellation of orders, and a bad image for the country. The major
reasons are non-compliance of increased wage structure, delay in payments and demand for
further increase in salaries, agreed in 2006. The problems need to be discussed with all the
stakeholders and attempts be made to overcome the crisis. Whenever such a crisis is confronted,
immediate settlement of the same has to be made through tripartite consensus. This is essential
to keep the factory running otherwise financial basis incurred by the owners would affect
compliance.
d) Bangladesh should also continue dialogues with the buyers for ethical buying of its RMG
products. Many of the buyers demand improvements for the workers on the one hand but
continue lowering their prices. It is to be understood that RMG produced in Bangladesh with the
sweat of the poor people find places in the shelves of western supermarkets, seldom realize that
poor Bangladeshi workers even cannot get subsistence wages for their hard work. GOB may
include these issues in publicity and communication campaigns in this regard at home and
abroad.
e) In order to build image of Bangladesh in the west, GOB needs to run focused communication and
PR campaigns (some activities are listed in paragraph 4.4 of this report). Media analysis in some
major countries, press reports and Bangladesh RMG sector image building is important
measures. The international communication work plan and budget has to be based on
Annexes Page 36/165
BTSP 9th Four-monthly Progress Report: Mar-Jun/2008,
Bangladesh Trade Support Programme
Annex - V
Notes: Workshop on Carriage of Goods By Sea
Background
This Workshop is an initiative of the Maritime Component under the auspicious EU-BTSP. The
constant changes in international carriage of goods by sea have prompted this workshop to look into
the existing regime in Bangladesh. The workshop has also sought to identify number of elements of
existing international conventions (principally the Hague-Visby Rules and the Hamburg Rules) and
other jurisdictions. The aim is to enable stakeholders to contribute and discuss vital issues in order to
improve Bangladesh’s carriage of goods by sea.
• This workshop was officiated by Chief Guest – Mr. Sheikh Enayetullah (Secretary for Ministry
of Shipping, Bangladesh), Special Guest – Mr. Shawkat Ali Waresi (Project Director of EU-BTSP) who
delivered a welcome note. Chairman – Mr. Rene Kist (Team leader of the Maritime Component).
• Mr. Vikneshwaran Shunmugam (ISTE- Maritime Legal Expert, GFA) and Mr. Khandaker
Zaman (LSTE – Maritime Business Expert, Unneyan Onneshan) made presentations at the workshop.
Mr. Hans-Martin – note taker.
1) Presentation on COGSA
a) Bills of lading:-
• the participants of the workshop was in the opinion that given the constant changes
international shipping, there is a need for Bangladesh to recognize negotiable and non
negotiable bill of lading to facilitate movement of goods in Bangladesh.
• Mr. Vik highlighted various regimes of other jurisdictions (India, Pakistan, Norway, South
Africa, France, Singapore, UK and Australia) and explained Bangladesh’s current position, to
underline the need for new legal framework.
• It is the opinion of the participants that the use of two bills lading for the same cargo to the
same consignee by two different operators deviates from standard practices and therefore,
need to harmonize with international best practice.
• There was some differing views amongst the participants whether Bangladesh should purse
as cargo and carrier nation. Mr. Vikneshwaran stated that the Government of Bangladesh
should consider both interest by pointing out the benefits of these interests. In other words,
the new legislation should promote both carrier and cargo interest.
d) It was the opinion of the participants that on the basis of the consultant’s report that Bangladesh’s
need to look forward to improve their current regime, learn from foreign experience and
implement what most countries have.
• Mr. Vikneshwaran based on his assessment report highlighted the four possible options,
which Government of Bangladesh needs to consider. He also explained the significance of
each options (advantages & disadvantages) and considerations that Bangladesh may need to
consider before choosing a suitable framework for their maritime sector.
• At this stage, although the participants did not confirm any of the options but deliberations
indicates that there were unanimous preference concerning option (B) – to design new
COGSA and give effect to Hague Visby Rules and option (D) – Design a hybrid regime.
• The participants informed the workshop that once the proposed framework circulated to the
stakeholders, they would take this opportunity to provide their inputs via email.
The participants were informed that a proposed legal framework prepared by the consultant would be
forwarded to all participants via email. The aim is to involve the stakeholders in the drafting process.
4) Summary
• The outcome of the workshop offers some guidance that may be necessary to maximize the
formulation of a more comprehensive and generally acceptable proposed legal framework. It also
offers guidance on certain provisions in order to arrive at compromise solutions.
• The workshop’s presentation papers will be made available to GFA team, government agencies,
industry players and other business organization that have an interest in maritime affairs in order
to receive inputs, which would allow improvement for the current regime and be broadly
acceptable to all sections of maritime community of Bangladesh.
• Both the public and the private sector complimented the workshop and supported the work
undertaken by the maritime component, who is working in conjunction of MSO, MARPOL, STCW
and Multimodal Transport to prepare and form a new regime as part of the broader work on the
maritime transport documentation.
Annex - VI
Marine Pollution Legislation (MARPOL) Workshop
BANGLADESH TRADE SUPPORT PROGRAMME (BTSP)
Component 4 – Maritime Transport
Hotel Peninsula, Chittagong
16th June 2008
Programme
09:00 - Registration
09:15
09:15 – Welcome to the Workshop
09:20 Mr. Abdul Malek - Moderator, Local Consultant, Former Director General Department
of Shipping
09:20 - Introduction to the Bangladesh Trade Support Programme
09:30 Md. Shawkat Ali Waresi – BTSP Project Director
09:30 - Introduction to Component 4 and the MARPOL Workshop
09:40 Cdr. Alauddin - Chief Engineer & Ship Surveyor, Department of Shipping
09:40 – Issues of Concern
10:00 Md. Shafiqul Islam - Principal officer, Mercantile Marine Department
10:00 - Key notes
11:00 Mr. Førsund - Legal Expert Marine Pollution, GFA Consultants
11:00 - Tea/coffee Break
11:15
11:15 – Work in groups
13:00 1: Survey and certification
2: Monitoring and surveillance (enforcement)
3: Waste reception facilities
4: National Oil Spill Response System
13:00 - Lunch
14:00
14:00 - Work in groups, continues
15:00
15:00 - Plenary Presentations, discussions and conclusions
17:00
17:00 Workshop Closing
Questions
for
Work Groups
Peninsula Hotel,
Chittagong 16th June 2008 Contents
QUESTIONS FOR ALL GROUPS .......................................................................................................41
Draft 1 of the Marine Pollution Protection Act............................................................... 41
GROUP 1 ............................................................................................................................................43
Survey and certification of ships.................................................................................... 43
GROUP 2 ............................................................................................................................................45
Enforcement (incl. monitoring and surveillance) .......................................................... 45
GROUP 3 ............................................................................................................................................47
Waste reception facilities................................................................................................ 47
GROUP 4 ............................................................................................................................................48
Oil Spill Preparedness and Response............................................................................ 48
Assessments:
• The marine pollution area is not adequately covered by any existing legislation
• DoS and MMD suffers because of serious lack of resources and money, in spite of having
activities creating revenues
• The present legal setup and way of making laws and regulations will not be appropriate for
implementing MARPOL
o MARPOL has extensive provisions in the annexes, referring to even more extensive
provisions in appenendices and codes (IMDG and IBC)
o Frequent IMO amendments
Recommendations:
• Primary and secondary legislation covering all relevant marine pollution conventions should
be developed
• Measures should be introduced that can ensure that revenues created will be transferred
back to (or retained by) the maritime authorities
• Extensive use of annexes and references to appendices and codes should be allowed in the
legislation. Only basic requirements (static elements) should be adopted as
legislation/regulation
• INTERVENTION
o Not implemented legally or in practice
• OPRC
o No national system for preparedness and response
o a draft national contingency plan is said to exist in DoS and has been requested
o No co-operation with other states within the South Asians Seas Action Plan (SASAP),
which covers regional co-operation with regard to oil spills
Recommendations:
• MARPOL
o Ships: Coastal and inland ships should also be required to comply with the
requirements of the convention
• INTERVENTION
Questions
In your opinion;
Question 1: Should IMO marine pollution conventions be covered by new legislation, or should
existing legislation be amended?
Question 2: Should the legislation include measures to ensure that revenues created will be
transferred back to (or retained by) the maritime authorities, or should the activities of DoS and MMD
to follow-up the conventions be ensured in other ways. Which?
Question 3: Should the legislation include only basic requirements and refer to e.g. MARPOL and its
annexes, appendices and codes – “as amended”, or should the legislation be developed more
comprehensively?
Question 4: Should inland ships also be required to comply with the requirements of MARPOL?
Question 5: How should the detection of illegal discharges be improved in the waters of Bangladesh?
Question 6: What should be the first initiative from Bangladesh to develop regional co-operation in
connection with oil spill preparedness?
GROUP 1
The Convention applies to ships; including vessels of any type whatsoever operating in the marine
environment and includes hydrofoil boats, air-cushion vehicles, submersibles, floating craft and fixed
or floating platforms. It does not apply to warships, naval auxiliary or other ship owned or operated by
a State and used, for the time being, only on government non-commercial service. The Convention
applies to (a) ships entitled to fly the flag of a Party to the Convention; and (b) ships not entitled to fly
the flag of a Party but which operate under the authority of a Party.
Every oil tanker of 150 gross tonnages and above and every other ship of 400 gross tonnages and
above shall be subject to surveys: An initial survey before the ship is put in service, and a renewal
survey at intervals specified by the Administration, but not exceeding 5 years. In addition:
Intermediate, annual and additional surveys. Surveys of ships as regards the enforcement of the
provisions of this Annex shall be carried out by officers of the Administration. The Administration may,
however, entrust the surveys either to surveyors nominated for the purpose or to organizations
recognized by it. When a nominated surveyor or recognized organization determines that the
condition of the ship or its equipment does not correspond substantially with the particulars of the
Certificate or is such that the ship is not fit to proceed to sea without presenting an unreasonable
threat of harm to the marine environment, he shall ensure that corrective actions are taken, and if not,
the certification shall be withdrawn. If the ship is in a port of another Party, the Port state, if applicable,
shall ensure that the ship shall not sail until it can proceed to sea or leave the port for the purpose of
proceeding to the nearest appropriate repair yard available without presenting an unreasonable threat
(Port State Control). In every case, the Administration concerned shall fully guarantee the
completeness and efficiency of the survey and shall undertake to ensure the necessary arrangements
to satisfy this obligation.
Requirements for surveys are also included in other annexes of the convention (Annexes II, IV and
VI).
An International Oil Pollution Prevention (IOPP) Certificate shall be issued for a period specified by
the Administration, which shall not exceed five years, after an initial or renewal survey in accordance
with the provisions of regulation 6 of this Annex, to any oil tanker of 150 gross tonnage and above and
any other ships of 400 gross tonnage and above which are engaged in voyages to ports or offshore
terminals under the jurisdiction of other Parties to the present Convention. Such certificate shall be
issued or endorsed as appropriate either by the Administration or by any persons or organization duly
authorized by it. In every case the Administration assumes full responsibility for the certificate.
Requirements for certificate are also included in other annexes of the convention.
Fixed or floating platforms when engaged in the exploration, exploitation and associated offshore
processing of sea-bed mineral resources and other platforms shall basically comply with the
requirements of this Annex applicable to ships of 400 gross tonnage and above other than oil tankers.
Requirements for platforms are also included in Annex V.
Currently in Bangladesh, only ocean going ships (classified ships) are said to comply with the
MARPOL requirements. However, “marine environment” includes also coastal shipping, and inland
ships on coastal voyages. Many countries also make the requirements apply to all ships (even those
in non-commercial service), not only in the marine environment.
With regard to MARPOL, surveys are only carried out for ships on international voyages (classified
ships), and the surveys and certification are carried out by the class. In most countries, surveys and
certification are delegated to classification societies for ships that are classified, while the maritime
administration carries out survey and certification on non-classed vessels. Port State Control is
usually not delegated to classification societies.
Classification societies are generally financed by the users/ships that receive certificates. However,
many maritime administrations are also, at least partly, financed by users/ships (e.g. Norway). The
way it is arranged varies. In some countries, the payments are made to the State Treasury, while in
others; payments are made to the maritime administration directly. The latter solution requires a trust,
which may not always be there. In such cases, an independent fund (trust fund) could be a solution.
Questions
In your opinion;
Question 2: Who (which gov. agency) should have the responsibility (and why) for
GROUP 2
Enforcement (incl. monitoring and surveillance)
Any violation of the requirements of the Convention shall be prohibited and sanctions shall be
established therefore under the law of the Administration of the ship concerned wherever the violation
occurs.
Whenever a violation occurs, that Party shall either:
(a) cause proceedings to be taken in accordance with its law; or
(b) furnish to the Administration of the ship such information and evidence as may be in its
possession that a violation has occurred.
The penalties specified under the law of a Party shall be adequate in severity to discourage violations
of the convention and shall be equally severe irrespective of where the violations occur.
Currently, Port of Chittagong issues fines (fines of up to 100,000 T, and up to 5 years imprisonment)
for pollution in the port area according to Environmental conservation act. Visible detection used
today, apparently no procedures for accumulation of evidence and no reporting procedures.
In many countries, the coastguard or a special branch of the prosecuting authority of the country is
responsible for investigations, while furnishing of evidence to other parties is carried out by the flag
administration. It should be noted that the investigation of such offences would require knowledge of
ships, ship equipment, oily waste, record books, finger printing etc. Detection of illegal discharges is
usually covered by regional agreements for the protection of the marine environment, e.g. Indian
Ocean MoU and the Bonn Agreement (http://www.bonnagreement.org/eng/html/welcome.html). The
Bonn agreements include e.g. a common strategy for combating oil pollution, agreed approaches on
surveillance (from airplanes and satellites), and standards for reporting incidents. It is also common to
have agreements with civilian airliners on reporting incidents.
Many maritime administrations are, at least partly, financed by users/potential polluters, and even the
time spent on contravention of the rules is counted. Work carried out by the police, prosecuting
authority or the courts, however, is not counted in that connection. In several countries, e.g. USA,
fines for pollution have been channeled to a fund for combating pollution. I have not heard of any
country where fines are transferred to different governmental body (not a fund). An independent fund
could therefore make it easier with contribution from different sources.
Questions
a) investigations?
b) for issuing fines?
c) for furnishing evidence to other Parties?
d) for maintaining a system for detection and reporting?
e) processing reports on incidents?
a) Administrative penalties imposed by the DoS and empowered, but not specified, by the
Act? Similar to the system proposed in the Draft MSO (see attached)
b) by and in the courts
c) Other solution
Question 3: What should be the short and medium term steps to achieve the above?
GROUP 3
Waste reception facilities
Requirements of the Convention
The Government of each Party to the present Convention undertakes to ensure the provision at oil
loading terminals, repair ports, and in other ports in which ships have oily residues to discharge, of
facilities for the reception of such residues and oily mixtures adequate to meet the needs of the ships
using them without causing undue delay to ships. Each Party shall notify the Organization for
transmission to the Parties concerned of all cases where the facilities provided under this regulation
are alleged to be inadequate.
Requirements for reception facilities are also included in Annex II (noxious liquid substances carried in
bulk), Annex IV (sewage), Annex V (garbage) and Annex VI (air pollution).
No official waste reception facilities exist today in any port. However, companies buy oily waste
(sludge1?) from ships directly. Chittagong port plans to establish waste reception facilities by 2010.
The provision of waste reception facilities has been a world-wide challenge for many years. A main
reason is that the “normal” system of user pay (pay for discharge of waste) encourages ships to avoid
discharging to waste reception facilities. The consequences of that system are illegal discharges into
the sea and lack of waste reception facilities in ports.
To deal with this in the region, the EU adopted an “inclusive fee” system, whereby ships must pay a
waste fee to the port authority irrespective of whether they deliver waste or not to the waste reception
facility. The intention of that system is to remove disincentives for ships to discharge before they call
ports, and to make an incentive for ports to establish waste reception facilities. The system has been
implemented via “Directive 2000/59/EC of the European Parliament and of the Council of 27
November 2000 on port reception facilities for ship-generated waste and cargo residues” (see
attached).
The system, which probably represents best practice today, implies normally that the port
administration will be in charge of arranging waste reception facilities, storage/treatment in port and
transportation to a treatment facility. The port adm will also be empowered to charge the ships a
correspondent “waste fee”, irrespective of whether the ships deliver wastes. The overall responsibility
and co-ordination for ensuring adequacy of the reception facilities in a country should normally be with
the maritime administration, while the environmental sound treatment of the wastes taken ashore
should normally be the responsibility of the environmental authorities.
Questions
In your opinion;
Question 1: What are the advantages and disadvantages of adopting an inclusive fee system in
Bangladesh on the basis of the EU directive?
Question 2: If the EU directive should be used as a basis, who should have the responsibility (and
why?) for the system in Bangladesh;
a) at the port level?
b) at the national level?
Question 3: If the EU directive should be used as a basis, on what criteria should the waste fee be
differentiated, if at all?
Question 4: What should be the short and medium term steps to achieve waste reception facilities in
the ports of Bangladesh?
GROUP 4
Oil Spill Preparedness and Response
Requirements of the Convention
Oil pollution emergency plans (Article 3)
Each Party shall require the following to have oil pollution emergency plan:
a) ships
b) offshore units
c) Sea ports
d) oil handling facilities
Each Party shall take necessary legal or administrative measures to facilitate the arrival and utilization
in and departure from its territory of ships, aircraft and other modes of transport, as well as personnel,
cargoes, materials and equipment, engaged in responding to an oil pollution incident. It shall also
ensure the expeditions movement into, through, and out of its territory of such.
Parties shall endeavour to conclude bilateral or multilateral agreements for oil pollution preparedness
and response.
Eastern Refinery has an emergency plan, and apparently also foreign going ships and Chittagong
port. Foreign going ships appear also to have reporting procedures.
No national system for preparedness and response exists. Bangladesh is part of the South Asian
Cooperative Environmental Programme (SACEP) and the South Asian Seas Action Plan (SASAP),
see attached, which focus on e.g. oil-spill contingency planning. No regional convention yet.
However, a draft regional oil spill contingency plan exists (see attached).
No pre-positioned oil spill combat equipment exists, and no training or exercises are carried out.
No particular measures taken with regard to customs and immigration. Visa is therefore necessary,
and a guarantee for bringing equipment into the country.
International practice with regard to financing of national oil spill preparedness systems is diverse,
varying from exclusively financed by the state via govt budgets to the case where the system is mainly
privately financed. Apparently, a majority of states build their systems on the “polluter pays” principle,
where potential polluters are required to contribute in one way or another (e.g. USA, Canada,
Australia and Norway). The public response is in many cases secondary in many countries (e.g. the
mentioned), and it is common maintain private response organizations to take care of the practical
aspects of having the primary responsibility. Some countries involve not only the industry in their
system, but also ships, via a levy. The mentioned countries, except Norway, also maintain national
funds for oil spills. However, it should be noted that some of those funds are only for claiming
compensation in case of oil spills, not funding the preparedness system.
Questions
In your opinion;
Question 1: Which institution should the have the role of being the national authority for oil spill
pollution preparedness and response in Bangladesh, and why?
Question 2: Which institution should have the role of being the national operation contact point, and
why?
Question 3: What should be the main items in focus of a national contingency plan for oil spill
preparedness and response for Bangladesh?
Question 4: What should be the short and medium term steps to achieve a national oil spill pollution
preparedness and response system in Bangladesh?
Part
Administrative Penalties
(1) If the Director-General has reasonable grounds for believing that a person or vessel has
contravened any provision of this Act or any rule, he may:
(a) serve such person or the master of the vessel with a written warning;
(b) serve a compliance notice on such person or the master of vessel that:
(i) identifies the contravention and specifies the period within which, and the
conditions under which, such person or master must comply with a provision or
request a review in terms of section 0;
(ii) sets out the amount and form of any security that, pending compliance,
must be deposited with the Director-General; and
(iii) sets out the penalty payable in the event that the person or master fails to
comply with (i) or (ii); or
(c) serve a penalty notice on such person or the master of the vessel that:
(i) identifies the contravention and specifies the period within which, and
the conditions under which, such person or master must comply with a
provision;
(ii) specifies the period, being not less than thirty days within which the
penalty is payable at the place specified in the notice, or notice must be given of a
request for review in terms of section 0.
(2) If the Director-General is satisfied that the provisions of subsection (1) (b)(i) and (ii) or (c) (i) and
(ii) have been complied with, he shall withdraw the compliance notice or penalty notice and:
(a) no further proceedings shall be instituted against the person or master in relation to
the contravention specified in the notice; and
(b) the amount of the security shall be refunded within a period of 15 days after compliance,
if applicable.
(3) If a person or master on whom a compliance notice has been served in terms of subsection (1)(b),
fails:
(a) to comply with subsection (1)(b)(i) within the period stipulated in the notice, he
shall:
(b) to deposit the security referred to in subsection (1)(b)(ii) within the period specified,
he shall be liable to a penalty equal to double the amount of the security.
(4) If a person or master on whom a penalty notice has been served in terms of subsection (1)(c) fails:
(i) to comply with subsection (1)(c)(i) within the period specified in such
notice, or
(ii) to pay the penalty in full within the period specified in such notice,
(5) Any penalty imposed in terms of this section is recoverable by the Director-General as if it were a
civil debt.
Review
(1) A person served with a notice referred to in section 0, may on or before the date specified in the
notice, or within such period of grace as the Director-General may, upon application, authorize, file a
written application for a review.
(2) A review shall be conducted by a person or persons appointed from time to time by the
Government by notice in the Official Gazette. Such person or persons shall be neutral individuals of
high integrity with appropriate experience in matters related to maritime safety, security and crewing
matters.
(3) A person presiding at a review shall provide the Director-General and the person who filed the
application for a review with an opportunity consistent with procedural fairness and natural justice to
present evidence and make representations.
(4) The burden of proof shall be on the Director-General to establish that the person or master
committed the contravention specified in the notice.
(5) If the holder of a Bangladesh maritime document is cited for a contravention under this Act or a
rule, he shall not have a defense on the grounds that:
(b) the contravention was committed by his employee in the course of his employment
or by his agent within the scope of the agent’s authority.
(6) A review shall be held within 30 days after the receipt of the application referred to in subsection
(1).
(ii) determine that the person or master is not in contravention of this Act or any rule.
(8) The finding of the review shall be recorded in writing and a copy of the finding shall be provided to
each party.
(9) In the event that the Director-General’s decision is confirmed, the person or master shall:
(a) comply with the compliance notice within such period as may be determined by the
review; or
(a) to comply with a compliance notice as contemplated in subsection (7)(a), the provisions
of section 0(3) apply; or
(b) fails to pay the penalty as contemplated in subsection (7)(b), the Director-General may
recover such penalty as if it were a civil debt.
Prepared by:
Hans-Martin Førsund
Short Term Expert: Marine Pollution Legislation
15 May 2008
BACKGROUND NOTE
1. This document contains the first draft of the [Marine Pollution Protection Act2] (MPPA), prepared for
the Department of Shipping under Component 4 of the Bangladesh Trade Support Programme
(BTSP).
2. The MPPA is intended as an instrument for the Government of Bangladesh to protect the marine
environment from pollution within its jurisdiction. It has been based on modern legislation regulating
the areas in other countries, and is designed to be a framework and an “umbrella” for a variety of
measures for protection of the marine environment. It does therefore not include details, only general
rules that need not be changed often, and leaves more detailed rules to be adopted by the
Department of Shipping. Further, it allows implementation by reference. Draft 1 provides a framework
for implementation of the international conventions that Bangladesh has ratified in this area, but it
does not purport to be a comprehensive version of the MPPA. Hence it deals with the implementation
of the:
• International Convention for the Prevention of Pollution from Ships, 1973, as modified by the
Protocol of 1978 (MARPOL 73/78)
• International Convention Relating to Intervention on the High Seas in Cases of Oil Pollution
Casualties, 1969 (INTERVENTION)
• International Convention on Oil Pollution Preparedness, Response and Co-operation, 1990
(OPRC).
To enable easy reference, the conventions are basically implemented in separate parts, and the first
draft includes the following parts:
a) a general part (Part I), which includes rules and definitions that apply in general
b) a part on prevention of pollution by ships (Part II), which includes MARPOL
c) a part on intervention on ships on the High Seas (Part III), which includes INTERVENTION
d) a part on pollution preparedness and response (Part IV), which includes OPRC
e) a part on funding the protection of the marine environment (Part V), which includes funding
mechanisms that are intended to make the measures instituted by the act self financed.
f) a final part (Part VI), which includes enforcement provisions and provisions on amendments and
entry into force. (This part has not yet been drafted).
CONTENTS
DRAFT 1
(1) The purpose of this act is to protect the marine environment within the jurisdiction of
Bangladesh from pollution, and to reduce existing pollution.
(2) The act shall provide the framework for measures to prevent pollution from occurring,
measures to prepare, respond and reduce pollution, but also to provide a framework for financing
the measures for the protection of the marine environment.
Scope
(1) The act shall cover all ships operating in the marine environment within the jurisdiction of
Bangladesh and all ships flying the Bangladesh flag on international voyages.
(2) The act shall also cover all other activities that could pollute the marine environment of
Bangladesh.
Definitions
In this Act:
“Act” means the [Marine Pollution Protection Act] and includes any Rule of the Act;
“Pollution” means introduction of man, directly or indirectly, of substances or energy into the
marine environment (including estuaries) resulting in such deleterious effects as harm to living
resources, hazard to human health, hindrance to marine activities including fishing, impairment of
quality for use of sea-water, and reduction of amenities3. (GESAMP4).
“Department” means the Department of Shipping in the Ministry of Shipping;
“Law” means acts, ordinances and rules, but also decisions by courts of the People’s Republic of
Bangladesh.
“MARPOL 73/78” means the International Convention for the Prevention of Pollution from Ships,
1973, as modified by the Protocol of 1978 relating thereto.
“INTERVENTION” means the International Convention Relating to Intervention on the High Seas
in Cases of Oil Pollution Casualties
“OPRC” means the International Convention on Oil Pollution Preparedness Response and Co-
operation, 1990.
3 The sources of marine pollution can be broken down into the five categories:
a) land based sources contribute forty four percent to the total amount of marine pollution
b) air based contributions total thirty three percent
c) maritime transportation (which includes accidental and purposive oil spills, and dumping of ship garbage etc.)
totals twelve percent
d) dumping (which includes all other purposive dumping such as when a garbage barge goes to sea for the express
purpose of dumping its load) represents ten percent of the total
e) offshore production (the pollution coming from oil platforms etc.) represents one percent of the total.
Source: International Maritime Organization (IMO)
4 Joint Group of Experts on the Scientific Aspects of Marine Environment Protection
General Obligations
Pollution of the marine environment is forbidden, unless allowed by law. If there is a danger of
pollution contrary to this Act, the one responsible for the pollution shall ensure that measures are
taken to prevent such pollution from occurring. If pollution has already occurred, the said one
shall ensure that measures are taken to stop or remove the pollution or limit its effects. The one
responsible also has a duty to ensure that steps are taken to mitigate any damage resulting from
the pollution or from measures to counteract it. The duty applies to measures that are in
reasonable proportion to the damage to be avoided.5
Definitions
"Harmful substance" means any substance which, if introduced into the sea, is liable to create
hazards to human health, to harm living resources and marine life, to damage amenities or to
interfere with other legitimate uses of the sea, and includes any substance subject to control by
MARPOL 73/78. (MARPOL 73/78)
"Incident" means an event involving the actual or probable discharge into the sea of a harmful
substance, or effluents containing such a substance.
"Ship" means a vessel of any type whatsoever operating in the marine environment and includes,
without limitation, pleasure vessels, fishing vessels, hydrofoil boats, air-cushion vehicles,
submersibles, floating craft and fixed or floating platforms (MARPOL 73/78).
Scope
The present Part shall cover all ships and all ports, unless expressly stated differently in the Act.
Exceptions
The present part shall not apply to any warship, naval auxiliary or other ship owned or operated
by a State and used, for the time being, only on government non-commercial service. 6
General Rule
MARPOL 73/78 shall apply, including all annexes and amendments that have been properly
promulgated and are in effect for Bangladesh.
Technical Measures7
A ship shall be constructed, built and equipped in such a way that no pollution in violation of this
act shall occur. The Department issues rules regarding technical measures to prevent discharge
of harmful substances from ships.
Operational Measures6
The ship shall be operated in such a way that no pollution in violation of this act shall occur. The
Department issues rules regarding operational measures to prevent discharge of harmful
substances from ships.
6 Each Party to the Convention shall ensure by the adoption of appropriate measures not impairing
the operations or operational capabilities of such ships owned or operated by it, that such ships
act in a manner consistent, as far as is reasonable and practicable with the Convention.
Definitions
In this Part-
“Convention” means the International Convention relating to Intervention on the High Seas in
Cases of Oil Pollution Casualties.
“maritime casualty” means a collision of ships, stranding or other incident of navigation, or other
occurrence on board a ship or external to it resulting in material damage or imminent threat of
material damage to a ship or cargo;
“oil” means crude oil, fuel oil, diesel oil and lubricating oil;
“related interests” means the interests of Bangladesh directly affected or threatened by the
maritime casualty, such as-
(a) maritime coastal, port or estuarine activities, including fisheries activities, constituting an
essential means of livelihood of the persons concerned;
(b) tourist attractions of the area concerned;
(c) the health of the coastal population and the well-being of the area concerned, including
conservation of living marine resources and of wildlife;
“ship” means-
(a) any seagoing vessel of any type whatsoever; and
(b) any floating craft, with the exception of an installation or device engaged in the
exploration and exploitation of the resources of the sea-bed and the ocean floor and the subsoil
thereof.
(1) Subject to subsection (2), the Department may take such measures on the high seas as
may be necessary to prevent, mitigate or eliminate grave and imminent danger to the coastline or
related interests from pollution or threat of pollution of the sea by oil or substances other than oil,
following upon a maritime casualty or acts related to such a casualty, which may reasonably be
expected to result in major harmful consequences.
(3) Whenever the Department takes action with regard to a substance other than oil, it shall
have the burden of establishing that the substance, under the circumstances present at the time
of the intervention, could reasonably pose a grave and imminent danger analogous to that posed
by any of the substances enumerated in the First Schedule to the Convention.
(4) Measures taken by the Department in accordance with the above shall-
(a) be proportionate to the damage, actual or threatened, to Bangladesh;
(b) shall not go beyond what is reasonably necessary to prevent, mitigate or eliminate
the danger referred to above and shall cease as soon as that has been achieved;
and shall not unnecessarily interfere with the rights and interest of the flag State,
third States and of any entities concerned.
(5) The Department issues further rules according to the convention regarding the measures
related to intervention on the High Seas.
(1) The purpose of this Part is to ensure that all entities that pose a risk of polluting the
marine environment shall be prepared for oil pollution incidents.
(2) The objective of this Part is to provide a framework and a tool for requirements to ensure
that the oil spill preparedness and response adequately meet oil pollution incidents.
Definitions
Scope
The present Part shall apply to ships, offshore units and oil handling facilities.
Exception
This part shall not apply to any warship, naval auxiliary or other ship owned or operated by a
State and used, for the time being, only on government non-commercial service.8
(1) All ships, offshore units and oil handling facilities within the jurisdiction of Bangladesh,
shall have oil pollution emergency plans.
(2) Ships entitled to fly the flag of Bangladesh shall have on board a shipboard oil pollution
emergency plan as required by Part II of the present Act.
(3) The Department issues rules regarding oil pollution emergency plans.
(1) All ships, offshore units and oil handling facilities required to have plans for oil pollution
preparedness and response shall ensure that they also include pollution reporting procedures
ensuring that observed events involving a discharge of oil or the presence of oil will be reported
without delay.
(2) The Department issues rules regarding oil pollution reporting procedures.
8
Each Party to the OPRC Convention shall ensure by the adoption of appropriate measures not
impairing the operations or operational capabilities of such ships owned or operated by it, that
such ships act in a manner consistent, so far as is reasonable and practicable, with the
Convention.
Annexes Page 60/165
BTSP 9th Four-monthly Progress Report: Mar-Jun/2008,
Bangladesh Trade Support Programme
(1) A national system for oil spill preparedness and response (a National Oil Spill
Contingency Plan) shall be established. The system shall be co-ordinated with a regional
agreement to this effect and the OPRC.
(2) The Department issues rules regarding such a national system.
International Co-Ordination
(1) When the severity of an oil pollution incident so justifies, all states whose interests are
affected or likely to be affected by the incident, the regional organization and IMO, as relevant,
shall be informed as soon as possible about the incident.
(2) The Department issues rules regarding international co-operation in connection with oil
pollution incidents.
(2) The Department issues rules regarding contributions to the national system.
(1) The recovery of the Department’s expenses in connection with supervision and issue of
certificates etc. may be claimed from the shipping company or from anyone who requests the
service in question, by the payment of fees.
(2) The Department issues rules regarding fees and the recovery of the fees.
(1) The recovery of the Department’s expenses in connection with a national system for oil
spill preparedness and response may be claimed from ships, offshore units and oil handling
facilities required to contribute to the national system, by the payment of fees.
(2) The Department issues rules regarding fees and the recovery of the fees.
Annexure - VII
According to the ToR (p2), the specific objectives of this study are:
1. Obtain an overview of existing provisions of protection under GIs
2. Identify the products of Bangladesh for which Bangladesh should seek protection under
GIs
3. Obtain a cost-benefit analysis of seeking protection under GIs
Moreover, as far as the “required outputs” (p3) mention: “A pool of local consultants with
additional experience in the areas addressed” and “Sensitization of officials in the Ministry of
Commerce and in the manufacturing community as to the possibilities of protection under GIs”,
and as the “requested services” (p2) include “delivery of at least one workshop”, we can bring in
the assignment a fourth implicit objective:
4 Disseminate awareness and interest of the protection under G.I and its use as a
development tool in the Bangladesh economic context.
So, we have to consider these four objectives when designing the methodology of the
study and the proposed attached work plan.
2.1 Benchmarking GI in less developing countries: issues at stake and Bangladeshi état des
lieux
a) WTO legal provisions on GI other than wine and spirits and a comparison with the
current Bangladeshi protection under GI
b) WTO negotiations on additional protection and a comparison of the positions of Bangladesh,
other SAAR countries, LDC WTO members. (In Asia and in Africa)
c) Overviews of existing provisions of protection under GI in LDCs, beyond the WTO negotiations’
issues and interests in GI for LDCs
A survey of the current producers’ organisations and collective bodies involved into
the production, the process and the trading of potential G.I marked products must
be achieved to design a SWOT analysis of this new economic sector.
f) Enforcement.
Bangladesh will have to build capacities of public or interprofessional Agencies to
enforce the regulations adopted and to control the smooth development of this new
sector.
In view of achieving “Cost-benefit” analysis in the Bangladesh context, the study will
deal with: (i) the administrative burden of implementing a G.I framework, (ii) the cost
of the dissemination of GI awareness, (iii) the cost for the economic players to
implement the GI granted in their business plan for new product development.
mmendations on a Draft and final reports including a draft A new framework for
Bangladeshi “law” (or set of regulations concerning GI in stakeholders, policymakers and
framework for GI Bangladesh) business communities involved
protection into GI products.
Annexure – VIII
GOVERNMENT OF THE PEOPLE’S REPUBLIC OF BANGLADESH
MINISTRY OF SHIPPING
DEPARTMENT OF SHIPPING
REPORT ON
The main objectives of the component is to review, update, formulate national shipping laws,
policies of Bangladesh and conducting studies on multimodal transport and other shipping related
activities in order to promote trade and shipping of Bangladesh in the perspective of the open
market economy taken place globally.
There are provisions for study tour for the concerned officials of the MOS and DOS to acquaint
them with the shipping laws/policies of other maritime nations in order to improve their policy
making process and strengthen organizational capability.
Accordingly, some officials of the said organizations had visited Singapore during AWP-1 and
Canada during November 2007. USA had been selected for the third study tour as it is
considered one of the most technologically developed maritime nation of the world and activities
of its regulatory body i.e. The United States Coast Guard (USCG) has similarity to that of Ministry
of Shipping and Department of Shipping.
The study Tour in USA was made to develop knowledge and expertise of the concerned officials
in the field. Also it was intended to focus on exchanging of knowledge on maritime legislations
and their possible implementation in the related field for promoting both trade and shipping.
As attached
USCG is a federal agency responsible for Maritime Safety, Maritime Security, Maritime Mobility,
Protection of Natural Resources, and National Defense. USCG is working under the U.S.
Department of Homeland Security. About 40 thousands personnel are employed and divided into
different Districts and Sectors to undertake its responsibilities. Its headquarters is in Washington,
D.C. and headed by the Commandant.
The Team was briefed that the USCG carry out its entrusted responsibility of Maritime Safety,
Maritime Security, Maritime Mobility, Protection of Natural Resources, and National defense
through awareness, prevention, protection, response and recovery by a .
Their areas of Emphasis are Readiness, Leadership, Risk Management, Innovation, Use of
Technology, Maritime Domain Awareness, Outreach and Work-Life Balance.
Their Core Values of USCG are Honor, Respect and Devotion to Duty.
The USCG is seen as “The Shield of Freedom” and their Slogan is “Semper Paratus”
meaning ALWAYS READY.
1. Defender – Responsible for countering potential threats to US coasts, ports and Inland
waterways.
2. Lifesaver – Responsible for Search and Rescue and Lifesaving operation.
3. Law Enforcer – Responsible as primary Maritime Law Enforcement agency including
drug interdiction, alien migrant interdiction, living marine resource law and treaty
enforcement and general maritime law enforcement.
4. Guardian – Guardians of natural resources and fragile marine environment. Ensure
compliance with fishery regulations designed to save threatened and endangered
species including whales, sea turtles, seals and porpoises.
5. Protector – Develop operating and construction standards for commercial and
recreational vessels. Ensure compliance with these standards, license commercial
mariners and operate the International Ice Petrol to protect ships transiting the North
Atlantic Shipping Lanes.
6. Facilitator – Establishes and administers navigation rules and electronic navigation aids
such as GPS and LORAN; Maintains waterways; maintains buoys; provides icebreaking
service; administers bridge planning, lighting and operation over navigable waters;
provides other facilitative service
7. Educator – As part of the extensive prevention efforts, the USCG conducts widespread
public education programs in boating safety and conducts courtesy marine examinations
of boats for compliance with federal and state safety requirements.
1) USCG Sector LA – LB
The Bangladesh Team was warmly received by the visit coordinator of the west coast area Mr.
Gregory W. Blake, International port security specialist / IPSLO Coordinator of the United States
Coast Guard, U.S Department of Homeland Security at the Los Angeles International Airport.
In this sector the Bangladesh Team had meeting with Captain Paul Wiedenhoeft, Sector
Commander and Captain of the Port, Sector Los Angeles-Long Beach, USCG; Mr. Daniel P.
Kane, Chief, Prevention Department, Sector Los Angeles-Long Beach, UGCG; LTJG Nicholas
W. Pardi, Waterways Management Division and other senior officers of this sector. In addition the
Team had meeting with Facilities Branch and PSC Branch as well.
In the beginning there was a welcome session followed by a power point presentation by the
USCG officers for an overview of the USCG and including their functions, organizational structure
and rules & regulations of the USCG. There after threadbare discussions were carried out on
various maritime issues
The Team was briefed that the USCG carry out its entrusted fundamental roles and responsibility
of Maritime Safety, Maritime Security, Maritime Mobility, Protection of Natural Resources, and
National defense through awareness, prevention, protection response and recovery by a team of
professionals, military and civilian, who seek and revere responsibility, accept accountability, and
are committed to the successful achievement of operational missions and organizational goals.
SECTOR COMMANDER
DEPUTY COMMANDER
Federal – FBI, DOD, & all DHS components (CBP, ICE, TSA, Secret
Service, FEMA, etc)
State – OHS, OES, CHP, National Guard, State Lands
• Local – LA County Sheriff, LA County Fire, LAPD, LAFD, LA Port Police,
LBPD, LBFD, LB Harbor Patrol, Ports of LA/LB, Public Health
• Elected Officials
• Private Industry & Labor
• Community Groups
PREVENTION DEPARTMENT:
FACILITIES BRANCH:
Container Inspections:
Conduct structural and packaging inspections on all HAZMAT and general
containers.
June – Dec 2006: 2949 w/135 on hold
Jan 07 – Present: 549 w/ 42 on hold.
Facility Inspections:
Additional Operations:
Sector Commander
CAPT Wiedenhoeft
Deputy Commander
CAPT Hamilton
Logistics Response
Prevention
CDR Kane
Waterways
LCDR Miller Investigations
Management
(Inspections)
Inspection Division;
Facilities:
Safety/Security Inspections, Containers, Security
Breach/Incident Responses
Domestic Inspections:
U.S Flagged vessel, T-Boats, K-Boats, Barges and Domestic
Security Inspections
Port State Control:
Foreign Flagged Vessels (Cruise Ships, Bulk, Container,
RO/RO)
International Ship and Port Facility Security Compliance
Inspections organization;
Sector Commander
CAPT Wiedenhoeft
As PSCO transit facilities to gain access to the vessel they also look for the
facilities compliance with MTSA.
Access Control
Restricted Areas
MARSEC level posted
Board Vessel
Drills:
Crew Competency
Familiarity with equipment
Condition of equipment
Substantial Compliance:
General impression of the vessel by the PSCO.
Expanded Exam
Clear grounds
Notify master
Use guidance from IMO
Resolution 787(a)
Codes:
PSCO Training:
Performance Qualification Standards
On the Job Training (OJT)
Formal training – “C – Schools”
Correspondence Courses
Qualification Boards
The Team conducted a tour in the port in a small boat and observed different port
facilities, berths, cargo/container loading-unloading equipments, navigational channels,
inner anchorages, break water, navigational aids etc
61 MTSA-Regulated Facilities
Container Terminals
Bulk Liquid Terminals
Cruise Ship Terminals
RO/RO Terminals
Break Bulk
Other Terminals (Chemical, Lumber etc.)
16 Vessel Arrivals
13,000 Containers
33.6 Million Gallons Petroleum
Products
$520M worth of cargo
2,800 Cruise / Ferry Passengers
The Team visited Marine Exchange / Vessel Traffic System of South California and met Capt.
Richard B. Mckenna, Deputy Executive Director of the Marine Exchange.
The Team had discussion about the Marine Exchange & their functions, operations and
equipments etc.
VTS-LA/LB was founded in 1923 as a non-profit organization. This is USA’s first and only
joint ventured government and private sector partnership for running a VTS. This is a new
approach to VTS management, environmental protection, and promoting maritime safety and
security. This VTS has been successful in ensuring the mega port complex at LA/LB harbor is
one of the safest, cost-effective, reliable, efficient and respected in the world.
Staffing:
Both Marine Exchange and Coast Guard personnel maintain a three person operating 24
hours daily.
Training:
All Marine Exchange and Coast Guard personnel at VTS-LA/LB receive extensive training
prior to taking on their responsibilities as Vessel Traffic specialists (watch-standers) for
monitoring, facilitating, advising and coordinating all covered commercial vessel traffic
operating in the VTS Area of responsibility (AOR) which extends 25 nautical miles from the
federal breakwaters and the two entrances to LA/LB harbor. This training includes sea
passages with pilots and masters, day trips aboard harbor tugs and passenger ferry boats,
orientation sessions at port authorities and marine terminals, and specific VTS simulator
training sessions on following three levels;
• Basic VTS Training Course
• Vessel Traffic Specialist Course
• VTS watch Supervisor Course
Funding:
The overall operating cost for VTS-LA/LB is funded by the maritime industry through
collection of “VTS Users’ Fees” – which are mandated by state law, and required by Port
Tariffs – and which are applied to all arriving vessels – range from $180 to $340. Additionally
a “mil rate charge” of $0.0015 is applied against the vessels ‘Gross Registered Tonnage”
(GRT)
The delegation learned and observed their Radar and AIS based Marine Exchange/Vessel
Traffic System augmented by a clear view of the entire port and their approach areas from
the hill top.
The Team also visited Port Facility of Total Terminals International, LLC and met with Mr.
Nick Mendes, Facility Security Officer
The Team was briefed about their Facility, capability and Management in the Conference
room followed by a discussion and physical inspection of their Facility, security management
and security system of the Port Facility.
• Support Services
o Chassis storage
o Full-chassis M&R capability
o Full-service reefer M&R
o Full wash-rack capabilities
o Wheeled reefer capability
PORTLAND SECTOR:
In Portland Sector the delegation met and discussed with the Sector Commander and
Captain of the port & other senior staff of the USCG in this sector.
This sector is having similar organizational structures, functions and capabilities as sector LA
– LB.
In the beginning the Bangladesh Team was welcomed by the sector officers. There was an
introductory meeting followed by a power point presentation by LT Zeke Lyons, United
States Coast Guard, Sector Portland.
The sector is having 293 active duty, reserves and civilians including approx. 300 auxiliary
personnel.
The CGC Bluebell maintains 420 Aids to Navigation on the Columbia, Willamette and Snake
Rivers.
Small Boat Station Portland has 5 Defender class response boats. One of which is available
for SAR response 24 X 7.
Then the Team was briefed about the Geographic Response Plans (GRPs) available in area
by Mr. John Williams, Washington State Department of Ecology –Spills Program.
• “Two Pager”
o Detailed description for each strategy
In addition the delegation observed and learned about different regulations and
checklist used for port state control inspections, Port Facility Security
inspections/audits etc.
In this presentation the Team learned about USA rules and regulations on pollution and their
capabilities.
Resource descriptions
Incident facilities
o Modular organization
o Management by objectives
o Incident action plan
o Manageable span of control
o Pre-designated incident locations and facilities
o Comprehensive resource management
o Integrated communications
o Establishment and transfer of command
o Chain of command / unity of command
o Unified command
o Accountability
o Deployment
o Information and intelligence management
The Team observed their water front pollution response vessels and capabilities under the
clean water act and discussed various pollution response methods and equipments used.
The Team visited the port of Vancouver and met Mr. Michael J.Schiller, operations Manager
and Mr. Lars Uglum, Operations Superintendent of the port and sighted their port Facility
including Bulk terminal, oil terminal, grain terminal and discussed about various aspects on
port security management and equipment used.
The Team was also shown their Security control room with full CCTV capability and was also
demonstrated the use of mobile and fixed container/cargo Scanning equipments
The Team was also shown their Security control room with full CCTV capability and was also
demonstrated the use of mobile and fixed container/cargo Scanning equipments
The Team also visited Rivergate Terminal in Portland area and observed their different
facilities.
The Rivergate Terminal is a privately owned deep water terminal for receiving, storing, and
distributing Anhydrous Ammonia & Urea. The Terminal is located on the Willamette River in
Portland, Oregon, approx. 2 miles upstream from the confluence of the river Columbia. It
consists of approx.25 acres of land. The marine dock is about 1400 feet long.
Receiving:
The Rivergate Terminal is designed to receive Anahydrous Ammonia from gas tanker ships
via the “marine arm”. The Terminal can receive up to 1,100 short tons of Ammonia per hour.
The Terminal can receive Urea from bulk transport marine ships and barges at a rate of 650
short tons per hour by ship’s cranes, conveyors etc.
Storage:
The Terminal has its own liquefied compressed gas storage, compression, and refrigeration
system. The Terminal has two anahydrous ammonia “atmospheric storage” tanks, each tank
stores approx. 25,000 short tons of ammonia at a temperature of -28˚ F, and a pressure less
than 1.0 PSIG.
The Terminal has two warehouses having capabilities of 30,000 tons and 40,000 tons.
Products:
Anahydrous ammonia and Urea are the two products delivered from the terminal.
The National Strike Force (NSF) is a vital national asset comprised of a unique highly trained
cadre of Coast Guard professionals who maintain and rapidly deploy with specialized
equipment and incident management skills. The NSF is recognized worldwide as experts in
preparedness and response to mitigate the efforts of oil spills, hazardous substance release,
weapons of mass destruction events, and other emergencies on behalf of the American
Public. NSF’s mandate is to assist and support Lead Agency / Incident Commanders and
Federal On-Scene Coordinators in their response and preparedness activities for both crisis
and consequence management. In this way, the NSF supports the National response System
and Homeland security by minimizing the adverse impact to the public and reducing
environmental damage from weapons of mass destruction events, hazardous substance
release and oil discharges.
The Team visited Maritime safety and Security Team (MSST) of USCG Sector San Francisco
at Coast Guard Island.
Finally the Team had a meeting with Rear Admiral Craig E. Bone, Commander, and Eleventh
Coast Guard District. The Rear Admiral welcomed the Bangladesh team and expressed his
gratitude for the visit. He expressed that Bangladesh and USA share the common policy and
stand on international issues like maritime safety, Security and environmental protection. He
also expressed hope for this mutual exchange of information, cooperation, visits and views
will continue in the future.
The Team was greeted by the Commander of the UCSG sector New York, Captain Michael
S. Gardiner and presented a letter of greeting. In the greeting he
expressed grateful appreciation of USCG for friendship and goodwill. He also expressed his
desire for positive fellowship and common bond.
The Team was provided with a tour of the New York / New Jersey Ports Authority Ferry
Terminal and Ferry Visit. The team was briefed about the passenger management and the
physical and electronic security system and security monitoring control room of the White hall
ferry terminal.
The USCG Sector New York is the largest Coast Guard operational field command on the
east coast.
Legislative Resources:
o Conference Reports
o Congressional Bills
o Congressional Records
o Public and Private laws
o United States Code
Executive Resources:
o Code of Federal Regulations
o Federal Register
o Presidential Materials
Code of Federal Regulations (CFR):
The Code of Federal Regulations (CFR) is the codification of the general and permanent
rules published in the Federal Registry by the executive Departments and Agencies of the
Federal Government. It is divided into 50 titles that represent broad areas subject to Federal
regulation. Each volume of the CFR is updated once each calendar year and is issued on a
quarterly basis.
NVIC’s are used internally by the Coast Guard to ensure that inspections and other
regulatory actions conducted by USCG field personnel are adequate, complete and
consistent. NVIC’s are issued by the Assistant Commandant for Marine Safety, Security and
Environmental Protection and address any of a wide variety of subjects, including vessel
construction features; mariner training and licensing requirements; inspection methods and
testing techniques; safety and security procedures; requirements for certain Coast Guard
regulatory processes; manning requirements; equipment approval methods; and special
hazards.
The team has brought brochures / booklet of the visited organizations, which could be useful
to the experts working under aforesaid project in formulating policy advices and up-dating
maritime legal framework for Bangladesh
12. Observations/Recommendations
US Maritime rules and regulations are well developed and many of the provisions can be
incorporated into Maritime rules and regulations of Bangladesh. These are well posted in
the Website and can be visited by any interested party.
USA is having successful examples of ports in private sectors. Bangladesh may also
consider privatization of port operations and ownership.
USCG is ensuring the safety, security and environmental protection of USA interests by
maintaining appropriate standards for ships and facilities through Port State and Flag
State Inspections. Department of Shipping may also consider appropriate Flag State and
Port State Inspections by appropriate infrastructure and capacity building.
Department of Shipping may also consider creating Facilities and Manpower for oil
response and Chemical response similar to USCG to protect the maritime environment of
Bangladesh.
For inland ships passenger safety and security, consideration may also be given to
passenger management at the terminal like white hall terminal in New York such as
different routes for inward and outward passengers, entry and exit at different levels etc.
Bangladesh may also consider the operation of Marine Exchange / Vessel Traffic System
similar to Marine Exchange / Vessel Traffic System of South California to enhance the
Maritime Safety, Security and Protection of the Marine Environment.
-------------------------------------------------------
On behalf of Study Tour Team
Under
Bangladesh Trade Support Programme
Component 4, Maritime Transport
Annexure – IX
Report (study tour) on the 28th Session of the Standing Committee of Asia Pacific
Trade Agreement (APTA) attended at Sri Lanka on 12-13 March 2008
Report by Dr. Mostafa Abid khan
Joint Chief, Bangladesh Tariff Commission
th
1. 28 Session of the Standing Committee was held on 12-13 March 2008 in Colombo, Sri
Lanka. The undersigned attended the meeting as a member of Bangladesh delegation. The
meeting deliberated on the modalities of the Fourth Round of Trade negotiations, expansion of
APTA membership and other matters. The discussions held on the issues are summarized below:
(in US$)
1. a.
b.
c.
2.
3.
a. The Participating States shall provide at least 50% tariff concessions measured as an
average of MoP for all products to be offered, while maintaining the flexibility on MoP for
the products under offer. The Participating States shall strive to widen the coverage of
preferences to aim for 50% of the total number of tariff lines of individual APTA
Participating States covering at least 20-25% of the value of bilateral trade. i.e coverage
ratio (= value of imports from APTA eligible for preference/value of imports from APTA)
by each Participating State is at least 20-25%.
b. The Participating States shall maintain reciprocity for providing “effective preferential
market access” through certain criteria. One proposal is “revenue forgone” (MoP X MFN
Duty X Import Value of the Product) on bilateral trade due to tariff reduction before
finalization of the offer lists. The secretariat will conduct one study on this issue and will
report the results of this study to the Standing Committee as soon as possible. This study
will be open to participation by all Participating States.
c. The least developed and small and vulnerable economies, which are APTA Participating
States, shall be provided flexibility to comply with the provision of paragraphs d and e.
The Participating States are encouraged to provide special concessions to LDCs which
are APTA Participating States in accordance with article 7 of APTA. The secretariat will
undertake one study on the small and vulnerable economies as a basis for discussion by
Participating States on the appropriate level of flexibility in accordance with their actual
development level and with reference to WTO studies on this issue.
d. Items having MFN zero percent shall not be included in the offer list of the Participating
States
2. Although there was an agreement to provide 50% tariff concessions on 50% of total tariff
lines, it was also agreed to maintain reciprocity and special and differential in favour of LDCs.
Therefore, Bangladesh delegations agreed to the modalities for tariff reductions.
Regarding other areas of negotiations such as non-tariff measures, trade in services, trade
facilitation and investment, it was agreed that the Standing Committee would strive to finalize
the texts on the Agreement on these issues by the Third Ministerial Meeting, which is
scheduled to be held in 2009. It was also agreed that special and differential treatment should
be provided to LDCs in these areas.
3. The Meeting also agreed a time table for concluding the tariff negotiations, which is as
follows:
Start of negotiations: at the 28th Standing Committee Session in Colombo, 12-13 March
2008: Exchange of updated tariff schedules
Exchange of request lists on tariffs and bilateral import data: 1 April – 23 May 2008
Exchange of offer lists: 1 June – 31 August 2008
Bilateral negotiations: 1 September 2008 – 31 May 2009
Meeting of Standing Committee to multilateralize concessions: July 2009
Adoption of Fourth Round results by Third Session of Ministerial Council:
October/November 2009
5. The Committee also agreed to hold a seminar on trade data exchange to be hosted by
China. It was agreed that the seminar would be attended not only by the trade negotiators but
also by the customs authorities and authorities issuing the certificates of origin.
Observations
8. It was noticed that three member countries of APTA China, Korea and India are willing to
go for deeper concessions by exchanging concessions at 50% MoP covering existing bilateral
trade and at the same time they intend to maintain reciprocity. Providing tariff concessions at 50%
may not be possible for Bangladesh, as it will result in huge revenue loss. Although it was agreed
that Bangladesh would be provided flexibility in tariff concessions, it has not been decided how it
will be given. During the course of negotiations Bangladesh should keep it in mind and formulate
a suitable position on the extent of special and differential treatment, which Bangladesh wants to
enjoy. Bangladesh Tariff Commission may play key role in this area.
9. Bangladesh has to submit a request list by 23rd May 2008 and Bangladesh Tariff
Commission will have to prepare the list.
10. Considering the fact that Bangladesh has never been a party to Regional Agreements
on Trade in Services, Investment and Trade Facilitation, Bangladesh should consult with
stakeholders during the course of negotiations on these agreements.
Annexure – X
Report (study tour) on 16th Meeting of the Trade Negotiating Committee of
BIMSTEC FTA held on 17-21 March 08 at New Delhi
16th meeting of the Trade Negotiating Committee was held in New Delhi on 17-21 March 2008.
The undersigned attended the meeting as member of Bangladesh delegation. During this period
a number of meetings of several Working Groups were also held. These are Working Groups on
Rules of Origin, Trade in Service, Investment, and Customs Cooperation and Working Group of
legal Experts. The undersigned participated in the meeting of the Working Group on Rules of
Origin and Trade Service and the meeting of the TNC. The discussions held in these groups and
in the TNC are briefly discussed below.
1. While deliberating on the rules of origin, the Working Group first considered the general
rules of origin. During the 15th meeting of the TNC it was decided that the member countries
would come up with the mandate as to whether all countries can accept 35% (30% for LDCs) plus
CTSH as a general rule. As per the decision, India formally informed the member countries that it
can accept the general rule provided certain operations are considered as non-qualifying
operations for conferring originating status in textiles and clothing (Chapter 50-63). These
operations are:
o Cutting to length or width and hemming, stitching or overlocking fabrics which are
readily identifiable as being intended for a particular commercial use;
o Trimming and/or joining together by sewing, looping, linking, attaching of
accessory articles such as straps, bands, beads, cords, rings and eyelets;
o One or more finishing operations on yarns, fabrics or other textile articles, such
as bleaching, waterproofing, decanting, shrinking, mercerizing, or similar
operations; or
o Dyeing or printing of fabrics or yarns.”
2. While considering the proposal of India, Bangladesh and other delegations sought
clarification whether combination of these operations would be considered as non-qualifying
operation. In response, India clarified that only individual operation will be considered as non-
qualifying operation and combination of these operations shall not be considered as non-
qualifying operations and therefore the word “or” has been placed before the last bullet point.
Since individual operation will not affect substantial transformation of making garments from
imported fabrics, Bangladesh and other delegations agreed to the proposal of India. Accordingly,
the Working Group with exception of Myanmar agreed to the general rule. Myanmar agreed to
come up with a mandate in the next meeting. The Working Group also noted that in 15th meeting
of the TNC it was agreed that for the time being each country would propose only 25 product
specific rules, which would be accepted without any negotiations. Accordingly, all countries
except Myanmar submitted the PSR list. All countries except India submitted the list, which are
relaxed than the General Rule. India proposed to apply CTH plus 40%/50% rule mainly for
machinery, rubber articles and ball bearing. Bangladesh proposed PSRs for spices (value
addition only) and woven ready-made garments (CTH only). The working Group also agreed on
the texts in the rules of origin documents reflecting the above decision.
3. This was the third meeting of the Working Group on Trade in Services, while the last
meeting was held on 7-8 February 206 in Bangkok. It was informed that the Working Group in its
first two meeting discussed the concept paper. Based on the concept paper India had circulated
a draft in March 2006. However, no countries except Thailand made any observation on the draft
as there was no meeting after March 2006. While deliberating on the draft it was pointed out that
draft proposed by India is bilateral in nature and therefore needed to be revised to make it
regional agreement. The Working Group however, had a first reading of the draft in order to have
an overview of possible elements of the Agreement. It was observed that major portion of this
draft is taken from existing WTO Agreement on Trade in Services. In addition, extra emphasis
was given to professional services. Bangladesh delegation maintained that the Agreement
should be general in nature and should cover all sectors and modes of supply and there is no
scope for giving special attention on particular service suppliers. After having the first reading, it
was decided that the member countries would send their inputs and comments by 31 May 2008.
6. While deliberating on the reports of the working groups the TNC noted that the Working
Groups on trade in services and on investment had first reading of the drafts proposed by India
and they need to further discuss the drafts. The Working Group on rules of origin agreed on a
general rule and it needs to continue its meeting to have final reading of the text on rules of origin
and finalize the PSRs. The Working Group on Customs had finalized the texts on customs
procedures and the Agreement on Customs Cooperation The Working Group could though
discuss the texts relating to “Transit” which were proposed by Nepal and Thailand as were
forwarded by the TNC in its last meeting. The Working Group with exception of Bangladesh was
able to finalize the text of the “Article” on “Transit”. Bangladesh proposed that transit issues
should be dealt separately and it should not come under the purview of this agreement as is the
practice in other FTAs. On the request of the Chairperson of the Working Group the TNC
discussed the issue. Bangladesh delegation informed the TNC that Bangladesh had no mandate
to discuss the transit under the Agreement on Trade in Goods and therefore, requested not to
include any text on transit the Agreement. However, Nepal insisted on transit provision in the
Agreement and all other delegation except Myanmar supported Nepal. Under these
circumstances Bangladesh delegation proposed a text which is similar to the provision of SAFTA,
which was then agreed upon by all members.
7. The next meeting of the TNC will be held on 2-4 June 2008. The Draft Agreement on
Trade in goods is like to be finalized in the next meeting.
Annexure – XI
Study Tour Report of the 9th Meeting of High Level Trade Officials (HLTO) of D-8
Countries held during 27-28 March 2008 in Islamabad, Pakistan.
The Government of the Islamic Republic of Pakistan hosted the 9th Meeting of High Level Trade
Officials (HLTO) of the D-8 Countries in Islamabad, on 27-28 March 2008. Md. Abdul Wahab
Mian, Joint Secretary, as Bangladesh delegation, attended the meeting.
2. The Meeting was inaugurated by Syed Asif Shah, Secretary, Ministry of Commerce,
Pakistan. In his opening address he welcomed H.E Dr Dipo Alam, Secretary General of D-8 and
the other delegates. He mentioned the aspirations of the D-8 leaders contained in the Bali
Declaration whereby they resolved to increase economic integration and promote trade. The
successful conclusion of these negotiations, he emphasized, would be instrumental in realizing
the vision of the D-8 leaders.
3. The Secretary General, D-8 Secretariat, in his address appreciated the work done by the
HLTO for reaching consensus on all major issues of the D-8 PTA. He urged all the member
countries to conclude the Rules of Origin to operationalize the PTA at the earliest.
4. The Member countries elected Mr. Shahid Bashir, Senior Joint Secretary, Ministry of
Commerce, Government of Pakistan, as Chairman of the meeting.
5. The threshold of local value addition (Rule 4) was discussed in length by the members.
All the members, except Egypt and Bangladesh, agreed to 40% criteria for local value addition.
Egypt informed the meeting that any value addition criterion below 50% was not acceptable to
them. On the other hand, Bangladesh proposed special and differential treatment for the Least
Developed Countries (LDC) in complying with the local value addition content. In this regard,
Bangladesh reiterated its earlier position demanding 30% local value addition content for
conferring origin to products from LDCs. The other members were of the view that differential and
special treatment was already available for the LDCs under the PTA where they have eight years
to reduce tariff as compared to four years for other member states.
The majority of the members were of the view that the General Rule for conferring origin to Not
Wholly Obtained Goods should be based on single value addition criteria. Accepting of multiple
criteria for different members would be difficult to implement in one hand and on the other also
cause discrimination against other members. The Members urged Egypt and Bangladesh to show
flexibility, move ahead with majority consensus and finalize the text. It was agreed that the
members would finalize the text and Egypt and Bangladesh were welcome to join as and when
they are ready to adopt the agreed text. Alternatively, Egypt may prepare a list of products for
which it wants 50% local value addition content and Bangladesh may also prepare a list of
products for which it wants 30% local value addition content.
6. The Meeting considered the outstanding issues on the Draft Text of the Rules of Origin
along with the amendments proposed by other members. The meeting finalized the Rules of
Origin.
7. The meeting agreed to adopt the Operational Certification Procedure (OCP) for the OIC-
TPS mutatis mutandis for the D-8 PTA. The agreed text of the OCP will be circulated in due time.
8. It was agreed that the members would submit their product list for D-8 PTA by 30 May,
2008 to the D-8 Secretariat through the diplomatic channels. Bangladesh has submitted its
product list to the Secretary General of D-8.
9. The next meeting of HLTO will be held in Kuala Lumpur, Malaysia in July 2008 before the
D-8 Summit. The exact schedule of the meeting would be communicated by the D-8 Secretariat
through the diplomatic channels.
To
The Project Director
BTSP
Annexure – XII
REPORT ON
THE STUDY TOUR TO CANADA
(JUNE 13-22, 2008)
UNDER
The Bangladesh Trade Support is a European Commission funded project which is being
implemented by the Ministry of Commerce. Out of the 4 components of this project component-2
is related to Ministry of Commerce. The Ministry of Commerce (MoC) plays a leading role in the
promotion and expansion of international trade and provides support to the private sector for
investment in the development and diversification of products and markets. The main objectives
of the Ministry of Commerce component are to strengthen the capacity of the MoC in formulating
a trade policy consistent with the problems encountered during the post-MFA period and in
developing negotiation skills for GOB officials involved in WTO and other Trade negotiations as
well as developing capacity in coordinating activities of MoC agencies.
At present, Canada is an important development partner of the Bangladesh. Canada has been
actively assisting Bangladesh to meet its development challenges since her independence. Over
the years, bilateral diplomatic and trade relationship between the two countries has been
strengthened. The two way trade has also been increased in recent years. Granting of duty free
market access of Bangladeshi products to Canada significantly increased the export of
Bangladeshi products to Canada. Apart from this, Canada has increased its aid in different
development projects of Bangladesh.
The aim of the study tour is to explore the opportunities of expediting the market excess and the
export of Bangladeshi products particularly RMG, Leather Products, Jute Products and
Pharmaceuticals to Canada and increasing the trade between the two countries.
During the tour Bangladesh Delegation attended several meetings on different mutual issues with
the following organizations:
1. Meeting with the officials of the Foreign Affairs and International Trade Canada, Room # C2-
500, 125 Sussex Drive, Ottawa, ON, Canada KIA OG2.
2. Meeting with the officials of the Trade Facilitation Office Canada, 56 Sparks Street, Suite - 300,
Ottawa, ON, Canada KIP 5A9.
3. Courtesy meeting with the HE the High Commissioner, Bangladesh High Commission, 302-275
Bank Street, Ottawa, Canada K2p2L6.
4. Meeting with the Officials of the CIDA, 200 Promenade - du Portage, Gatineau, PQ, KIA 0G4,
Quebec, Canada.
5. Meeting with the officials of the Export Development Canada, 151 O'Connor Street, Ottawa,
Canada, KIA 1K3.
6. Meeting with the Officials of the Ministry of Economic Development & Trade Ontario Province
at 250 Yonge St, 35th Floor, Toronto, Canada
The visit which took place from 13-22 June 2008 was led by the Deputy Chief, Ministry of
Commerce. The name of the officials is as follows:
Mr Md Emdad Ullah Mian, First Secretary (Commercial) to the Bangladesh High Commission in
Canada made invaluable service for arranging the meetings with different institutions and
organization. He also attended all the meetings.
The delegation visited the Canadian Museum of Civilization during the 10.30 am to 12.30 pm on
June 15. Ms. Lynda Fish, Senior Programme Planner welcomed the team and took necessary
arrangement for the visit.
The FIRST PEOPLES HALL is Canada's largest permanent exhibition on the history, diversity
and contributions of Canada's First Peoples.
There are two large permanent exhibition spaces and three special exhibition galleries on Level
2.
The CANADIAN POSTAL MUSEUM focuses on the history of postal communications. It has a
complete display of every stamp issued in Canada.
At the CANADIAN CHILDREN'S MUSEUM, visitors of all ages will enjoy an interactive
adventure, as they journey to many destinations in International Village. During the summer,
visitors can also play outdoors in Adventure World.
The CANADA HALL is most popular gallery. Travel across the country from East to West, through
1,000 years of Canadian history, visiting life-sized environments on the way.
FACE TO FACE on Level 4 is the newest permanent exhibition. It introduces visitors to unique
personalities who have shaped this country.
We visited Ministry of Foreign Affairs and International Trade in Canada on 16 June 2008. Mr.
Scott Giesbrecht, Director, Asia and Oceania Commercial Relations (WOA), Ministry of Foreign
Affairs and International Trade in Canada welcome us and introduced with other colleagues of the
Ministry. First of all they informed us about their organizational structure and their different offices
around the world.
Mr. Janet Chater, Trade Commissioner, Asia Commercial Relations Division (WOA) briefly
describe about the function of Canadian Trade Commissioner Service (TCS). At the beginning
there was a introduction session followed by the presentation by the both parts. Therefore a detail
discussion was held on various trade issues in the meetings.
Meeting with the officials of the Ministry of Foreign Affairs and International Trade
Canada
Mandate
Trade leads
Exporting
Business contacts
Events
Technology transfer
Licensing agreements
Joint venture development
Investment in/from Canada and etc.
Overview of Services
The Canadian Trade Commissioner Service (TCS) helps Canadian companies and organizations
do business abroad by increasing revenues and lowering the costs of global business through
four key services:
The Canadian Trade Commissioner Service (TCS) has an unparalleled network of contacts
around the world, and that network starts at home.
Trade Commissioners at Regional Offices in Canada will help the businessman pursue global
business opportunities. As part of the Trade Commissioner Service, they offer the four key
services and they can connect you with Trade Commissioners abroad and provincial and
territorial trade promotion agencies that are part of the Regional Trade Network.
Resolve Problems
Issues are bound to arise. It could be a common problem that many businesses have faced
abroad or an issue exclusive to their organization that requires a unique solution. Whatever it is,
Canadian Trade Commissioner Service (TCS) to help.
Although Canadian Trade Commissioner Service (TCS) can't enter into private disputes or act on
your behalf in legal situations, they can advise on market access problems and other business
challenges including:
The Export and Import Controls Bureau (EICB) authorizes, under the discretion of the Minister of
Foreign Affairs, the import and export of goods restricted by quotas and/or tariffs. It also monitors
the trade in certain goods and ensures the personal security of Canadians and citizens of other
countries by restricting trade in dangerous goods and other materials.
During the discussion the official of the Ministry inform us the Canadian companies have already
made their mark in gas exploration, telecommunication, food grain and management &
consultancy fields. Canadian companies can setup industries in Bangladesh in energy and power
sectors as well as software and IT sectors. They also inform the delegation team at present
Canada imports Woven Garments, Knitwear, Shrimps, Jute Yarn & Twine, Fishing Reel, Jute
Manufacturers, other mfd. Goods, Spl. Textile, Jute Carpet, Frozen Fish, Ceramic Tableware,
Leather bags & purse, Vegetable, Raw Jute, Footwear, Textile Fabric, Terry Towel, Biscuit, Toys,
Leather, Pharmaceuticals etc from Bangladesh. On the other hand Canada exports to
Bangladesh Dairy Products, Food Grains, Mineral Products, Prepared foodstuff, Machinery &
equipment, Textile & Textile articles, Footwear, Transport equipment etc.
During the discussion the official of the Ministry also informed the team Bangladeshi
businessman should be more acquainted with the Canadian business rules and regulations for
the smooth business between Bangladesh and Canada. They also informed us if the Bangladeshi
businessman interested for doing business in Canada they should take registration in the
Canadian Trade Commissioner office.
Trade Facilitation Office Canada (TFOC) was founded in 1980 by the Canadian International
Development Agency (CIDA) following a decision of the Canadian government to establish an
office “to assist developing countries to export to the Canadian market.”
More than 25 years later, TFOC, operating as a not-for-profit corporation, has become the
primary provider of information on and linkages to the Canadian import market and a source of
training for exporting and for investment attraction for developing countries. Importers benefit by
learning about sourcing alternatives.
Meeting with the officials of the Trade Facilitation Office Canada, Ottawa, Canada
Services of TFOC:
Through its freely accessible web-based services, TFOC meets the export information and
market intelligence needs of developing country SMEs interested in accessing the Canadian
market. In addition, on a fee or project basis, TFOC delivers trade information seminars, conducts
trade missions and provides customized market development consulting services for developing
country exporters looking to expand into Canada.
The online service also facilitates linkages between developing country exporters and Canadian
importers by providing a web-accessible database of developing country export offers and an
electronic newsletter for importers containing sourcing information and information related to
international trade.
TFOC’s services are designed to enhance the capabilities of exporters and trade support
organizations in developing and transition economy countries. These activities are, in most cases,
delivered in-country by working in close collaboration with a local partner organization. Most of
these services are designed to be delivered with a train-the-trainer approach to ensure
sustainability. Funding is provided by domestic and international development agencies, including
CIDA, by client country governments and/or by participating companies/organizations.
1. Exporter Training
2. Businesswomen Exporter Training, Mentoring and Information Program
3. Web-based Trade Information Portals.
4. Packaging Workshops.
5. Product Adaptation Workshops.
6. Technical Regulations.
7. Investment Attraction Techniques.
8. Workshop for Trade Support Organizations.
9. Training for Government Foreign Service Officers.
In addition to the above, TFOC can provide advice and training in areas such as:
- Trade Policy Development;
- Trade Opportunities Processing Systems;
- International Business Strategies;
- Financing Exports.
TFOC’s freely accessible web-based Canadian market access services are funded by the
Canadian International Development Agency (CIDA). Other services are typically funded on a
project basis by the partner organizations, the participating companies and/or international
donors. In all cases, TFOC works in close collaboration with local partners. Its services are as
follows:
TFO Canada works with exporters from developing and transition countries operating in the
following sectors.
Animals and Animal Based Products
Automotives and Accessories
Building Materials, Hardware and Hand Tools
Chemicals, Minerals and Allied Products
Clothing, Accessories, Footwear and Textiles
Electronic, Electrical and Telecommunication Products
Floriculture
Food Products, Seafood and Beverages
Furniture and House wares
Home Decor, Giftware and Crafts
Industrial Goods, Machinery, Parts and Raw Materials
Medical, Office and Other Professional Supplies
Personal Care, Pharmaceuticals and Natural Health Products
Professional, Tourism and Other Services (including Information Technology)
Sports and Leisure
During the discussion Mr. Brian Mitchell, CA, Executive Director, Trade Facilitation Office Canada
(TFOC) informed the team that with the help of CIDA Trade Facilitation Office is trying to improve
the bilateral trade volume between Bangladesh and Canada.
Courtesy meeting with the HE the High Commissioner, Bangladesh High Commission:
We visited the HE the High Commissioner, Bangladesh High Commission on 16 June 2008
during 3.30 pm to 4.30 pm. Mr. Masud Ahmed, Deputy High Commissioner, Bangladesh High
Commission welcomed the team in the office. A detail discussion was held on various trade
issues in the courtesy meetings. HE the High Commissioner, Bangladesh High Commission to
Canada informed the team members about the bilateral trade between Bangladesh and Canada.
He mentioned that in the recent years both sides gained significant growths in their export. He
also informed that Canada is a very lucrative and vibrant market for Bangladeshi products but
now it is struggling with Chinese products. There is an immense potentiality of increasing the
export of Bangladeshi leather products, jute goods and pharmaceuticals to Canada. New
products should be included in
the export basket of Bangladesh. Apart from this, diversification of exportable products might help
increasing the export to Canada. Canada allowing of duty free market access to the products of
LDCs helped accelerating the growth of export. He pointed out that Bangladeshi exports will
increase if EPB may take more initiative for arranging the trade fair in the different parts in
Canada. He also categorically mentioned that the government needs to ensure participation of
renowned business farm in all trade fairs.
Meeting with the Officials of the Canadian International Development Agency (CIDA):
We visited the Canadian International Development Agency (CIDA) on 17 June 2008 during
11.00 am to 12.00 am. Mr. Robert Beadle, Director, Canadian International Development Agency
(CIDA) welcome the team in his office. At the beginning there was a introduction session followed
by a presentation by the CIDA. A detail discussion was also held on various trade issues in the
meetings.
CIDA’s mandate:
Mr. Robert Beadle informed us CIDA’s aim is to reduce poverty, promote human rights, and
support sustainable development. CIDA was established in 1968 to administer the bulk of
Canada’s official development assistance (ODA) program in Africa, the Middle East, the
Americas, and Asia. In 1995, CIDA took on the responsibility of administering Canada's official
assistance (OA) programs in Central and Eastern Europe, and the former Soviet Union (countries
in transition) by supporting democratic development and economic liberalization.
The measure of its success lies in its contribution to the achievement of the Millennium
Development Goals (MDGs) and Canada’s broader international policy objectives.
CIDA’s priorities are poverty reduction, democratic governance, private sector development,
health, basic education, equality between women and men, and environmental sustainability.
These are areas in which Canadian expertise can make a difference.
CIDA’s Position:
CIDA works in concert with its development partners, fragile states and countries in crisis,
selected countries and regions, and the Canadian population and institutions.
The Agency is concentrating more and more of its bilateral (country to country) aid in a group of
countries that have shown they can use this aid effectively.
This concentration does not include programs carried out in other developing countries by
multilateral agencies such as UNICEF, the United Nations Development Programme, and La
Francophonie. Neither does it include cases of crisis, conflict, and natural disaster that require
fast intervention, as provided by CIDA’s strong helping hand.
Here in Canada, CIDA’s headquarters is located in Gatineau, Québec. As well, regional offices
are in place across the country to better engage partners, individuals, the private sector, and civil
society.
CIDA works closely with other federal departments, many kinds of Canadian organizations,
international organizations, other donor countries, and of course, developing countries
themselves.
CIDA provides funding for international development programs and projects through
contributions to Canadian and international institutions of many kinds. The Agency also enters
into contracts with Canadian companies for the implementation of their programs and projects.
Varying funding criteria exist for each type of applicant and for each type of program or project.
Real progress has been made. CIDA obtains results in inter-national development by working
jointly with its local, Canadian, and international partners.
Worldwide, the number of people in developing countries living on less than $1 a day fell
to 980 million in 2004—down from 1.25 billion in 1990. The proportion of people living in
extreme poverty fell from nearly one third to 19 percent over this period.
Progress has been made in getting more children into school in the developing world.
Enrolment in primary education grew from 80 percent in 1991 to 88 percent in 2005. Most
of this progress has taken place since 1999.
Child mortality has declined globally, and it is becoming clear that the right lifesaving
interventions are proving effective in reducing the number of deaths due to the main child
killers, such as measles.
In addition, CIDA's contribution, Ghana, a country of 22 million people, is well on the way
to achieving the first MDG. In 1991–2006, this African country nearly halved its poverty
rate (from 51.7 percent to 28.5 percent). The absolute number of the poor declined from
7.9 million in 1991–1992 to 6.2 million in 2005–2006. In Tanzania, the net primary school
enrolment rate rose from 59 percent in 2000 to 96 percent in 2006. One in two pupils is a
girl. In 2003, CIDA and UNICEF started up a three-year joint project that reduced infant
mortality by 20 percent in 11 West African countries.
Education
CIDA’s support to this sector contributed to 6.8 million more children being enrolled in school
since 2000 in a number of African countries, such as Tanzania. In Mozambique, more than
3.5 million schoolchildren received textbooks.
Environment
A project to supply sustainable water and sanitation (PASOS) in Honduras has enabled
61,000 individuals to have access to running water and sanitation services.
Health
Vitamin A supplements were distributed, saving the lives of more than 300,000 children under the
age of 5.
According to an assessment by the United Nations Development Programme, CIDA is the only
donor in Egypt to have successfully integrated equality between women and men into all its
activities.
Humanitarian Aid
The aid supplied to victims of the tsunami that ravaged coasts around the Indian Ocean helped
provide 1.3 million people with food from the World Food Programme and the inter-national
community.
Private Sector Development
Launched by the Government of Afghanistan in June 2003, the Microfinance Investment Support
Facility (MISFA) has far exceeded expectations, granting more than $70 million in loans to some
300,000 urban and rural poor in Afghanistan. While traditional banks would not likely have shown
confidence in the poor, 98 percent of these clients have repaid both capital and interest. Their
word is literally money in the bank. Canada, through CIDA, is the largest donor to this program.
During the discussion Mr. Robert Beadle, Director, Canadian International Development Agency
(CIDA)) informed the team that CIDA is working in the above fields. We informed the CIDA official
that a CIDA project titled " Trade Related Technical Assistance (MOC TRTA) Project" has already
completed. CIDA may consider for another project for capacity building of the trade official of the
Ministry of Commerce. Mr. Robert Beadle, Director, Canadian International Development Agency
(CIDA)) informed the team that he is going to Bangladesh as resident director of CIDA within the
next few days and he would take necessary steps on the basis of discussion with the Ministry of
Commerce. He also pointed out that without the capacity building of the trade official of the
Ministry of Commerce the negotiation capacity as well as export would not be increased.
We visited the Export Development Canada on 17 June 2008 during 2.00 pm to 3.30 pm. Mr.
Anis Karim, Regional Manager; Export Development (EDC) welcomed the team at his office. At
the beginning there was a introduction session followed by the presentation by the EDC.
Therefore a detail discussion was held on various trade issues in the meetings.
Companies often need financing to support their international transactions: to pay for the up-front
costs associated with the production of a large export order, to expand into new markets or to
respond to a buyer's request for financing.
EXPORT Express Credit is tailored to the needs of small business and provides unsecured loans
to help you grow your export business.
Export Guarantee Program enables you to obtain loans from your financial institution to provide
you with the financing you need for your export-related activities or foreign investments.
Supplier Financing provides you with access to cash rather than waiting for payment from your
foreign buyers.
Security Compliance Loan provides financing to help pay the costs of upgrading your security
programs to comply with U.S. cross-border regulations.
Equity Investments helps you access equity and venture capital to grow your international
business.
Project Finance provides project sponsors with access to limited-recourse financing for large-
scale global infrastructure and industrial projects.
Buyer Financing can help you offer your customer extended payment terms by providing them
with financing for an export sale of capital goods and/or services.
We have developed a number of innovative ways to support foreign buyers of Canadian goods
and/or services through loans, guarantees and lines of credit.
Loans offer flexible financing options for foreign buyers of Canadian goods and/or services.
Guarantees can be provided when another financial institution is prepared to participate in the
financing of an export sale. We can work with them on a risk-sharing basis.
Lines of Credit can be established for foreign companies intending to buy repeatedly from
Canadian companies. We also have lines of credit established with various foreign
financial institutions worldwide that can on-lend money to buyers of Canadian goods and/or
services. These lines of credit are particularly suitable for smaller transactions.
We visited the Ministry of Economic Development & Trade Ontario Province, Toronto, Canada on
20 June 2008 during 1.30 pm to 3.30 pm. Ms. Corie McDougall, Area Director, South and
Southeast Asia welcome the team in her office. At the beginning there was an introduction
session followed by the presentation by the both sides. Discussion was held on various trade
issues in the meetings.
Introduction
Ontario's 12.5 million people make it Canada's most populous and dynamic province. Its share of
Canada's GDP for 2005 was 39 per cent and it is Canada's leading manufacturing province
accounting for 52 per cent of the total national manufacturing shipments in 2004. The prospects
for Ontario's economic growth are bright over the longer term with real output forecast to rise by
2.3 per cent in 2006 and 2.5 per cent in 2007. This growth will foster strong job creation and rising
incomes. Ontario has a diverse and well-balanced economy with high concentrations of
manufacturing and financial and business services. There has been a marked shift towards
export-oriented, higher value-added industries.
Employment in Ontario stood at 6,398,000 in 2005. 81,200 net new jobs were created in Ontario
in 2005. Job creation is expected to rise by 85,000 in 2006, and 209,000 in 2007-2008. CPI
inflation in Ontario was 2.2 per cent in 2005, and is forecasted to be 2.1 per cent in 2006, and 1.8
per cent in 2007. Ontarians, in most years, can expect the province to be one of the fastest-
growing regions in the advanced industrial world. Ontario benefits from a growing labour force,
which is attracted and sustained by a high quality of life and equipped with the education, skills
and initiative needed to compete in today's knowledge-based market place. Centrally located
within North America and offering a hospitable business climate, Ontario is a prime location for
investment.
Exports help Ontario prosper by creating permanent, high quality jobs. As the country's leading
exporting province, accounting for approximately half of Canada's exports, Ontario's trade
position faces a promising future.
The goal of the Ministry of Economic Development and Trade is straightforward: to promote
economic growth. The Investment and Trade Division supports the ministry's goal through its
mission of connecting business in Ontario and throughout the world with people, products and
ideas that make Ontario "Canada's Economic Powerhouse"
The International Trade Branch of the Investment and Trade Division helps Ontario firms grow,
prosper and create jobs through international trade. Export success is a journey, not a destination
and it takes more than luck to become globally successful. It requires commitment, hard work and
patience.
The International Trade Branch assists Ontario suppliers of goods and services in developing
their export strategies for international markets by providing the following core export services:
New Exporters to Border States (NEBS), delivered in partnership with the International Trade
Canada (ITCan), is a two-day practical program offered on site at a U.S. border point to introduce
companies to the fundamentals of exporting. Participants learn about export pricing, customs
procedures, selecting agents and distributors, warehousing and distribution, banking and legal
issues, export financing and insurance, immigration issues and identifying new market
opportunities.
Capital Projects
Export consultants can assist suppliers of capital goods and services to secure international
capital project opportunities, facilitating the development of consortia, providing key contacts with
financial institutions and providing commercial advocacy where government contacts are
important.
Market Information
Providing information on foreign markets and assisting Ontario suppliers of goods and services in
developing their marketing strategies. Market penetration assistance or information on product or
service entry strategies can include import/export statistics, market demographics, advice on
doing business in that market, major tariff and non-tariff barriers, import regulations, distribution
channels, payment mechanisms, national holidays and travel suggestions.
During the discussion the official of the Ministry of Economic Development & Trade
Ontario Province, Toronto, informed the team that the Bangladeshi product is easily entering
the Ontario Province without any barrier. Recent trade fair in Toronto had a great effect to boost
up the bilateral trade between Bangladesh and Canada. We also requested the official to sending
a high power delegation for Canadian investment in Bangladesh. They assured us that
appropriate initiative will be taken in future. We also requested them for technical and financial
assistance for development of our trade capacity.
Recommendations:
Ministry of Commerce and Bangladesh Foreign Trade Institute may take initiative for introducing
the Canadian Government's rules and regulations for exporters through the training programme
in the BFTI.
Ministry of Commerce and Export Promotion Bureau may take various programmes for
introducing the Bangladeshi products to the Canadian market. Arranging single country
trade fair in the different cities can play a very significant role in this regard.
Canadian Government through Trade Facilitation Office and CIDA can help Bangladeshi
entrepreneurs in finding joint venture projects in Bangladesh.
The business community especially the exporters of Bangladesh are apprised of rules
and regulation relating to market penetration to Canadian market.
Frequent Trade and Investment delegation may be exchanged between Bangladesh and
Canada Govt. and private sectors for trade liberalization and investment.
Bangladesh is suffering from skilled manpower and modern technical know-how. Due to
this shortage of updated and skilled manpower, the exporters of the country have to
encounter severe competition in global market. Hence, to develop skill workforce
technical trainers should be invited from Canada with a view to imparting modern
technical know-how on various sectors for improving productivity and product quality.
Canada international development programme for LDCs should be focused on providing technical
assistance in product diversification, product development, quality and productivity improvement
Annexure – XIII
With a view to becoming the leading trade-related research and training institution of the country,
the Bangladesh Foreign Trade Institute (BFTI) aims at strengthening its capacity by learning from
experience of other institutions devoted to foreign trade research and training. Since such
learning can be conveniently achieved through establishing and maintaining permanent links with
institutions that have built up a reputation on training and research in foreign trade, the BFTI
conducted a visit to Switzerland to explore the possibility of establishing twinning opportunities by
forging an understanding with the following Geneva- and Berne-based institutions:
a. International Trade Centre, Geneva;
b. Advisory Centre on WTO Law, Geneva;
c. Institute for Training & Technical Cooperation, WTO, Geneva;
d. World Trade Institute, University of Berne, Berne;
e. Graduate Institute of International and Development Studies, Geneva; and
f. United Nations Conference on Trade and Development, Geneva.
The visit, which took place from 2 to 6 June 2008, was led by the Chief Executive Officer of the
BFTI, and included Fellow (Research) and Fellow (Policy Advocacy & Training). The BFTI team
was accompanied by another 3 member team from Bangladesh Trade Support Programme of the
Ministry of Commerce comprising Additional Secretary of the Ministry, and Programme Director
and Accounts Director of the BTSP. Economic Minister to the Bangladesh Mission in Geneva
made invaluable contribution in terms of arranging meetings with these institutions.
The main purpose of the visit of the BFTI team was to discuss the possible areas of cooperation
with the above institutions. The principal aim was to explore the following possibilities: (a) jointly
developing and designing training programmes for the BFTI and outsourcing experts from these
institutions for jointly designed training courses, (b) using the service of these institutes for tailor-
made training programmes in Bangladesh, which can be delivered jointly by these institutions and
BFTI, (c) long term collaboration with these institutions for designing and offering degree
programmes in business, economics and trade, and (d) undertaking joint research projects on
trade related issues pertinent for least developed countries such as Bangladesh.
Session 1: The team visited the International Trade Centre (ITC) on January 2. The whole day
meeting comprised a number of sessions with different departments within the ITC. The
introductory session was presided over by Ms. Lilia Hachem Naas, Senior Trade Promotion
Officer, Office for Asia and the Pacific, who also supervised, on behalf of the ITC, the series of
meetings held during the day with the ITC officials. She was assisted by Mr. Moses Tenywa,
Associate Trade Promotion Adviser. Professor M. A. Taslim of the BFTI gave a brief introduction
on the BFTI and its activities. Built around the concept of private-public partnership, the BFTI in
its Board has all the major stakeholders, from both the government and public sectors, involved in
foreign trade activities. He also explained the purpose of the BFTI visit to the ITC, that is, to
acquire technical assistance in terms of organizing training and research for this fledgling
institution.
Ms. Naas said the ITC provides technical assistance without making any distinction between
developed and developing countries. For example, it is currently assisting the development of
Pakistan Foreign Trade Institute. In Bangladesh, the ITC is providing technical assistance to
Bangladesh Quality Support Programme (BQSP). She suggested that the BFTI could be used as
the training venue for the BQSP.
Ms. Naas showed interest in developing collaborative programmes with the BFTI, and
emphasised on jointly working out the details of such cooperation. Describing the new business
lines of the ITC that includes (a) business in trade policy, (b) export strategy, (c) trade
intelligence, (d) strengthening institutions, and (e) exporter competitiveness, Naas stressed the
need to identify the appropriate area (business line) in which the ITC concentrates and which is
related to the functions of the BFTI.
Outcome of the session: (1) Following the new ITC business lines, the ITC and the BFTI will
work out details of possible joint cooperation. (2) The ITC will think of using the BFTI as the
training place for the ITC-funded BQSP.
Session 2: The second session was attended by Antony Sandana, Senior Commodity Officer.
Professor Taslim said that in addition to trade related training and research which form the core of
its activities, the BFTI also wanted to introduce fee-paying degree programmes so as to become
self-financing. He urged the ITC to assist the BFTI in building up capacity for trade research and
training such that it can achieve its objectives within a short period.
Mr. Sandana said that the ITC has already been involved in Bangladesh in building the capacity
of the Business Promotion Council (BPC). It has successfully initiated dialogue in the leather
sector between the private and public officials in the country. He enquired whether the BFTI can
develop cooperation with the BPC. Professor Taslim said that though the BFTI has not developed
any relationship with the BPC, it will attempt, if it gets assistance from the ITC, to work in close
cooperation with the BPC.
Outcome of the session: It will be examined how the BFTI, with assistance from the ITC, can
work closely the BPC.
Session 3: The third session was attended by Mr. Paul Kelly, Senior Trade Information Officer,
Trade Information Section, and Mr. Christian Delachenal, Senior Market Analyst, Market Analysis
Section. Mr. Kelly mentioned that the ITC provides advisory services based on international best
practices in information management, offers training programmes focusing on trade information
management techniques and on market profile, conducts research on export potential
assessment, trade competitiveness assessment and trade negotiations (for ACP countries), and
provides information support and management tools. Mr. Delachenal emphasized that the ITC is
concerned with how to collect, analyse and disseminate trade information. It has, therefore,
developed a number of market analysis tools:
(a) Trade Map: a web-based resource with statistics and indicators on global trade flows that
helps trade analysts turn data into actionable market analysis. Access to LDC countries is free
from January, 2008.
(b) Market Access Map: a web-based resource with customs tariffs, indicators of protection and
tariff simulation facility that helps trade analysts analyse market access issues. Access to LDC
countries is free from January, 2008.
(c) Product Map: a web-based resource with links to business information on 72 product groups,
that helps trade analysts strengthen trade data analysis with qualitative market information.
(d) Investment Map: a web-based resource that combines information on Foreign Direct
Investment, trade and market access data to help trade analysts target markets, sectors and
products for the promotion and attraction of investment.
Professor Taslim observed that these sources of in-depth trade data could be of immense benefit
for conducting trade related research at BFTI and he, therefore, requested the ITC to assist BFTI
in enhancing the skills of the BFTI officials in extracting information from the ITC databases and
in analysing and simulating those data. The ITC officials referred to their project (in association
with the WTO) of establishing a WTO Reference Centre at BFTI and providing training to
government and private sectors officials including those from the BFTI in accessing the Centre
resources.
Session 4: The fourth session was attended by Mr. Jean-Francois Bourque, Senior Legal
Adviser, Business Environment Section, and Mr. Michael Geiger, Associate Expert, Division of
Trade Support Services. The ITC officials said that the Business Environment Section provides
specialized products and services for the development of exporting Small and Medium
Enterprises (SMEs) along an integrated approach in three areas: (a) Trade Law, (b) Trade
Finance for SMEs, and (c) Trade Facilitation. Mr. Bourque mentioned that in terms of accession
to WTO/international trade treaties, Bangladesh is under par which has so far ratified only about
30% of the agreements/treaties. He urged the BFTI to begin to play a role in terms of raising
awareness among the officials in Bangladesh about the need to ratify WTO/international
treaties/conventions.
Mr. Geiger emphasised the ITC’s Trade Finance for SMEs Programme. Realising that lack of
trade finance is a major impediment to the SMEs’ export initiatives, the above programme aims at
assisting exporting SMEs at all stages of their development, by enhancing access to affordable
credit, building entrepreneurs’ financial management skills, and encouraging the development of
financial instruments and mechanisms tailored to SME needs. BFTI officials suggested that if the
ITC agreed the BFTI could hold that training programme (Trade Finance for SMEs) in Dhaka,
whereby the BFTI will provide the venue and conduct all local arrangements and the ITC will
provide training to the related officials- from the government sector, from the central and
commercial banks, from the insurance companies, and from SMEs involved in export trade. The
optimum number of participants in the programme would be 15-20. BFTI officials asked the ITC to
send the module of the proposed training programme and the estimates of costs involved.
Outcome of the session: (1) The ITC will consider the BFTI proposal of holding the training
programme titled ‘Trade Finance for SMEs Programme’ in Dhaka through joint collaboration. The
ITC will send to the BFTI the training module of the proposed programme and the estimates of
probable costs. (2) The BFTI will try to play a role in terms of raising awareness among the
officials in Bangladesh about the need to ratify WTO/international treaties/conventions related to
trade.
Session 5: The fifth session was attended by Mr. Osman Atac, Chief, TSI Strengthening Section,
and Mr. Giovanni Dadaglio, Programme Coordinator, Market Development Section. Professor
Taslim, the CEO of the BFTI, and Mr. Golam Mustakim, Additional Secretary, Ministry of
Commerce, emphasised the need for the ITC to provide assistance to the BFTI. They expressed
their keen interest in knowing what sort of support the BFTI may get from the Trade Support
Institution Strengthening Section, and what facilities the ITC may provide to the BFTI. Mr. Atac
said that through this newly established section, the ITC aims to assist countries (e.g. in Asia and
the Pacific) to diversify their exports on the basis of a detailed analysis and the identification of
sectors with high export potential. TSIs and business associations are assisted in developing their
priority sectors through the design of sectoral strategies, by focusing on quality improvement, and
by building their image and brand recognition (for instance through the use of geographical
indications) on international markets. The Section provides trade information, offers capacity
building services, and helps develop management competencies.
Mr. Atac suggested that the BFTI could act as an intermediary if the ITC attempts trade support
institution strengthening activity in Bangladesh. But for doing that, the BFTI will need adequate
human resources and management capacity so as to provide full range of services to government
and private stakeholders. He said that, in this regard, ITC’s TSI Strengthening Section can assist
the BFTI by designing a strategy to do that, and by assisting in the management of the process. It
was decided that the ITC will develop a concept paper on the proposed assistance in this regard
and will send to the BFTI through Ms. Lilia Naas, and the BFTI will, based on the concept notes,
work out a suitable programme.
Outcome of the session: The ITC will develop a concept paper detailing the assistance program
relating to the TSI activities. The BFTI will then elaborate on its plans and get back to the ITC.
Session 6: The sixth session was attended by Mr. John Gillies, Senior Trade Training Officer,
Enterprise Management Development Section, and Mr. Jacky Charbonneau, Senior Adviser
(Packaging), Business Advisory Services Section. ITC officials said that Division of Trade Support
Services deals with four major issues: (a) Management development: e.g. assisting in the
preparation of business plans, (b) Marketing and operations environment: e.g. focusing on how to
control costs in relation to shipping, quality control etc., (c) Marketing and sales: e.g. helping
enterprises develop marketing plan and sales plan so as to enable them to position well in the
market as sellers/buyers, and (d) E-labelling: e.g. assisting enterprises in assessing their e-trade
potential.
Gillies said that ITC trainings aim at two levels: (a) training of enterprises or training of trainers,
(b) training at the basic level. The 6-9 month long training programme consists essentially of two
components: 20 days of training sessions consisting of 3-4 workshops of 4-5 days each, and a
number of field trips during the rest of the training period. At the end of the training program, the
ITC will create, on the basis of performances at the training, three categories of trainers for the
host countries, such as Master trainer, Qualified trainer, and Associate level trainer. BFTI officials
requested the ITC to provide assistance to the BFTI in two ways: by allowing BFTI officials to
come to ITC to get training so as to develop a pool of experts/trainers at BFTI, and by sending
ITC officials to Dhaka to organize seminars/workshops at BFTI so as to build capacity of
government and private sectors officials engaged in foreign trade activities. BFTI officials also
enquired about the probable costs of such training programs. The ITC agreed that they would
send, through Ms. Naas, the whole package of the programme, including the basic curriculum,
time schedule and costs involved.
Outcome of the session: ITC will send the whole package of the 6-9 month long training
programme to the BFTI. The BFTI will then work out details of possible collaboration.
Session 7: The seventh session was attended by Mr. Rajesh Aggarwal from the Business and
Trade Policy Section. Mr. Aggarwal said that this section deals with raising awareness and
advocating polices with a view to building capacity. It organises regional seminars/workshops on
trade development issues and concentrates on examining the implications of various trade
related agreements. BFTI officials inquired whether ITC could consider conducting joint
study/research with BFTI on trade policy issues. Mr. Aggarwal said that it depends on the
availability of funds for country-specific programs. He agreed that he will look into the situation
and let BFTI know through Ms. Naas.
Outcome of the session: ITC will examine whether it can organize joint study/research with the
BFTI on important trade policy issues, and let BFTI know.
Session 8: The eighth session was attended by Mr. Ian Sayers, Senior Officer for the Private
Sector, Export Strategy Section, and Sophien Hanouz, Senior Trade Strategy and Value Chain
Development Specialist, International Purchasing and Supply Man agement Section. ITC
officials said that it helps businesses in building opportunities derived from trade policies, and
assists governments in devising effective national export strategies. When enquired by BFTI
officials about how the export strategies devised by the ITC can help Bangladesh improve its
efforts at diversifying the export base, ITC officials said that Bangladesh needs policies that would
make room for international standards institutes to work in the country thereby facilitating its
exports. They said that the ITC does offer training on export planning and strategies, and agreed
that such training could also be provided locally in Bangladesh.
Outcome of the session: The ITC will examine whether it will be able to offer trainings on ‘export
planning and strategies’ in Dhaka with local hospitality provided by the BFTI.
Concluding session: The concluding session was attended by Mr. Stephen Browne, Deputy
Executive Director, ITC. Professor Taslim gave a brief introduction on the BFTI and its activities.
Professor Taslim and Mr. Mostakim emphasised that since the ITC and BFTI share
commonalities of work, the BFTI hoped to establish cooperative or twinning programmes with the
ITC. Professor Taslim explained that there could be three ways in which the ITC might assist the
BFTI: (1) by allowing BFTI officials to come to ITC to get training on trade related issues so as to
develop a pool of experts/trainers at BFTI, (2) by allowing ITC officials to go to Dhaka to organize
seminars/workshops on important trade related matters at BFTI so as to build capacity of
government and private sectors officials engaged in foreign trade activities, (3) by assisting the
BFTI to develop degree programs so as to enable it to become a self-sustaining institution after
the European Commission funding ends in 2013.
The Deputy Executive Director welcomed the unique concept of public-private partnership around
which the BFTI was established, and hoped that it would become self-sustaining as it envisaged.
He agreed that the ITC would provide assistance with a view to empowering the BFTI. He
suggested that since ITC’s information services are provided free to LDCs from January 2008, in
the short run, the BFTI can obtain a wide range of support services from the ITC without paying
any fee, and then provide these services to the country’s government and private sectors in
exchange of money. He also suggested that in the medium term, the BFTI could get assistance
from the ITC in terms of training its staff in order to make them experts/trainers, e.g. through the
internship or fellowship programme offered by the ITC. BFTI officials requested the Deputy Chief
to visit the BFTI in order to assess the kind of assistance it requires from the ITC. The Deputy
Executive Director said that he would think over it.
Outcome of the session: (1) In the short term, the BFTI will obtain a wide range of free support
services from the ITC. The ITC will provide a detailed list of what the BFTI can obtain from it. (2)
In the medium term, the ITC will assist the BFTI in terms of building the capacity of its staff, e.g.
through the internship or fellowship programme offered by the ITC. (3) The BFTI will request the
Deputy Executive Director of the ITC to visit the institute in order to assess the kind of assistance
that the ITC can offer.
The team visited World Trade Organisation (WTO) on January 3. The 2 hour long (10-11 AM)
meeting was presided over by Mr. Hakim Ben Hammouda, Director, Institute for Training and
Technical Cooperation (ITTC), WTO and attended by other WTO officials (e.g. Mr. Martin and Mr.
Raymond). Professor Taslim gave a brief introduction on the BFTI and its activities. He also
explained to the WTO officials the purpose of the BFTI visit, that is, to acquire assistance from the
WTO in terms of organizing training and research for this institution, which is built around the
unique concept of private-public partnership serving the needs of both the government and public
sectors. Professor Taslim said that in addition to trade related training and research which form
the core of the BFTI activities, the BFTI also wants to introduce fee-paying degree programmes
so as to become self-financing after the current financing by the European Union is over by 2013.
Mr. Golam Mostakim, Additional Secretary, Ministry of Commerce said that the government of
Bangladesh strives to establish the BFTI as the pioneering institution dealing with foreign trade
matters. He urged the WTO to assist the BFTI in its endeavour to emerge as the model trade
research and training institute in the country.
WTO officials said that the WTO is committed to ensure the delivery of the Trade-related
Technical Assistance (TRTA) to member countries. To that end, the ITTC provides support to
beneficiaries in discharging their WTO obligations, and taking advantage of the opportunities and
benefits provided to them through Technical Assistance and Training Plans. It is conducted
through five categories of trainings offered by the WTO:
(1) General WTO-related TA and training: It covers the Geneva-based Trade Policy Courses and
the field-based Regional Trade Policy Courses, lasting up to twelve weeks. These courses are
geared to relevant government officials with a broad WTO responsibility.
(2) Specialized and advanced TA and training: These courses are geared to specialists. Can be
held in Geneva or in the field, and the purpose of such courses is to address issues not covered
in the general courses.
(3) Academic support for training and capacity-building: Under this, the WTO aims to develop
partnerships with trade policy-related academic community in member countries. The
programmes are designed to promote ‘joined up’ capacity building and enhance the academic
capacity for such training in developing countries.
(4) Trainee programmes and internships: Such programmes include the Netherlands Trainee
Programme, the WTO Regional Coordinator Internship and the Mission Internship Programme.
The purpose is to build capacities of officials from member countries in a systemic and cumulative
manner.
(5) E-learning programme: These courses on trade issues are developed as an alternative to
traditional training programmes, and employs information technology and the Internet to enhance
outreach to academic institutions and individual students.
WTO officials said that they are interested in developing the BFTI. For example, they have, in
consultation with the Ministry of Commerce through the Permanent Mission in Geneva, decided
to establish the WTO Reference Centre at BFTI. A team comprised of WTO and ITC officials
would visit Bangladesh next week (9-13 June) to establish the Reference Centre and to organise
a training workshop for government and private officials on how to use the resources offered by
the WTO Reference Centre. They stressed that the Reference Centre will provide immense
opportunity for people to access trade data and use them for analytical and research purposes.
In terms of further collaboration with the BFTI, WTO officials said that Bangladesh is entitled to
receive three National Assistance Activities in 2008. However, the WTO is yet to receive these
three National Assistance Activity requests from Bangladesh (the Ministry of Commerce). They
suggested that the BFTI on behalf of the MOC can prepare plans for these three activities, and
request the MOC to submit them to the WTO. Further, if the MOC proposes that the TRTA
activities will be held at the BFTI, the WTO will agree to that. Secondly, as the training programs
at the WTO are contingent upon nominations from the government, the BFTI may request the
government (MOC) to nominate its staff for such training courses.
BFTI officials enquired whether the WTO would (a) allow the BFTI to send its staff to attend WTO
training programmes (e.g. the Trade Policy Courses) in Geneva at BFTI’s cost, and (b) allow it to
arrange WTO-delivered training programmes in Dhaka with the BFTI bearing local hospitality
costs. Regarding the first issue, WTO officials suggested that the BFTI should send proposals to
the WTO, which will then consider whether it can admit paid BFTI participants into the Geneva-
based WTO courses. With regard to the second issue, WTO officials said that they might
consider favourably the proposal of jointly holding WTO-delivered training programmes in Dhaka.
Outcome of the meeting: (1) The BFTI will assist the Ministry of Commerce, government of
Bangladesh, in preparing the plans for three National Assistance Activities which Bangladesh is
entitled to get in 2008, and urge the Ministry to submit them to WTO as soon as possible. (2) The
BFTI will propose to the Ministry so that it requests the WTO to hold its TRTA activities for
Bangladesh at BFTI. (3) If BFTI staffs are nominated by the MOC for free WTO trainings meant
for government officials, the WTO will accept them. (4) If the BFTI sends proposals to the WTO to
admit BFTI-funded staff for the WTO training courses in Geneva, the WTO will consider the
proposals. (5) The WTO may consider favourably the proposal of jointly holding WTO-delivered
training programmes in Dhaka with local hospitality borne by the BFTI.
On January 3, the team visited Advisory Centre on WTO Law (ACWL). The 2 hour long (3.00-
5.00 PM) meeting was attended by Ms. Cherise M. Valles, Senior Counsel, and Mr. Hunter
Nottage, Counsel, from the ACWL. Professor Taslim gave a brief introduction on the BFTI and its
activities. He also explained the purpose of the BFTI visit, that is, to acquire assistance and
collaboration from the ACWL in terms of organizing training for the BFTI on dispute settlement
issues and matters related to WTO Law. ACWL officials explained that it is an intergovernmental
organisation that provides advice, support and training on all matters relating to WTO law and
dispute settlement procedures.
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The ACWL provides developing countries and LDCs an equal opportunity to participate effectively
in the WTO and its dispute settlement system. Its services include legal advice on all aspects of
WTO law, support in WTO dispute settlement proceedings, and training of government officials in
WTO law. In terms of training, the ACWL conducts the following programmes-
(a) Six-month training courses: These courses are on WTO law and dispute settlement
procedures, and are held from October to March.
(b) Occasional seminars: These seminars are on legal issues of interest to developing countries.
Examples include presentations on developing countries in the GATT/WTO dispute settlement
system and on principles of treaty interpretation in recent Appellate Body reports.
(c) Secondment programme for trade lawyers: This nine-month programme is intended to give
government officials an opportunity to increase their expertise in WTO law by working with the
ACWL’s lawyers.
BFTI officials enquired whether it would be possible for the ACWL (a) to allow BFTI to send its
officials to ACWL as Fellows or Internees through payment of fees so that they could become
experts/trainers, and would eventually train government and private sector people in Bangladesh,
(b) to assist the BFTI in organising training programs in Bangladesh in trade related legal issues.
Mr. Nottage said that the ACWL’s courses are free for LDCs and member countries, and it does
not allow any paid internees in their courses. However, BFTI might continue to send applications
to the ACWL for its secondment course, and in this way one day it might get a scope to field its
staff in the course.
ACWL officials also said that since Bangladesh is an LDC, the ACWL would try to assist the
BFTI. The best way to impart knowledge is through holding a joint seminar/ workshop in Dhaka.
The ACWL would perhaps be able to send one of its staffs to the BFTI to offer a 2/3 day course,
for, the dispute settlement workshops should at least be for 2/3 days. The ACWL would not
charge any fee for that, and the host country (through BFTI) would only need to bear the travel
expenses and local hospitality. They also suggested that in order to make the workshops more in-
depth and meaningful, the BFTI may also hire consultants from the World Trade Institute in
Berne, and the Centre for Trade Policy and Law in Ottawa. In this way, the workshops may be
extended to 5 days, whereby 3 days training could be provided by the consultant and 2 days by
the ACWL staff. Mr. Nottage said that there are other institutes who offer short courses on dispute
settlement and WTO legal issues. By giving names of good trainers from these institutes, the
ACWL can work as the informal reference point for the BFTI.
Outcome of the meeting: (1) The ACWL does not accept any paid internees/candidate for their
courses. However, if BFTI continues to field applications, one of its applicants may get a chance
to enrol as a Bangladeshi applicant. (2) The ACWL is interested in organising a short training
workshop in Dhaka on dispute settlement issues or other WTO legal issues. The host country
(BFTI) will only bear the travel expenses and local hospitality. The BFTI will work out the details
of the workshop and its modalities with the ACWL. (3) The ACWL will work as the informal
reference point for hiring consultants/trainers to organise workshops on WTO legal matters.
The Graduate Institute of International and Development Studies (the Graduate Institute) was the
next place of visit which occurred on January 4. The 2 hour long (10.00-12.00 PM) meeting was
attended by Mr. Daniel Warner, Director and Ms. Sophie Fleury, Programme in-Charge, from the
Graduate Institute. Professor Taslim gave a brief introduction on the BFTI and its activities.
Graduate Institute officials gave a brief account of what the Institute does. The Director said that
the Graduate Institute aims to promote international cooperation and development through high
standard academic contributions. It offers several academic programmes, Masters and/or PhD
level in various disciplines, e.g. International Affairs, Political Science, International Law,
International Economics, and Development Studies. The Institute conducts research and training
on international trade and economic and financial integration, conflict and security, migration and
refugees, international environment policy, and international health policy. It also offers various
programmes for professional development, such as summer courses and diploma programmes.
After briefly explaining the purpose of the visit, Professor Taslim said that while emphasising
trade related training and research which form the core of its activities, the BFTI also wants to
introduce fee-paying degree programmes on Business administration and International
economics and trade so as to become self-financing after the current funding by the European
Commission is over by 2013. He, therefore, requested the Graduate Institute to assist the BFTI
through joint collaborative programmes in training and research, and also by offering joint degree
programmes in international trade and economics. Seeking assistance from the Graduate
Institute, he informed Institute officials that the BFTI has ample budget to provide for the
expenses of such collaboration, as it is funded by the European Commission.
The Director said that the Graduate Institute works closely with World Trade Institute in Beijing
and Shanghai. It has also helped establish similar institutions in Nairobi, Cameroon, Malta, and
Trinidad and Tobago. It will also assist the establishment of Diplomatic Institutes in Azerbaijan
and Georgia. Graduate Institute officials showed their interest in working closely with the BFTI.
The Director said that the Institute could develop an ad-hoc basis arrangement under which a
group of officials from the BFTI can come to Geneva, and participate in training programmes
organised by the Graduate Institute in consultation with the WTO and other relevant institutions.
The Institute has experts on trade and negotiation simulations. He said that the Institute is mainly
interested in providing longer version training programmes, which focuses on trainer’s trainings,
so that those who are given trainings will then provide similar trainings to officials in Bangladesh.
The Director also mentioned that the Institute has summer courses on WTO issues, which might
be availed of by the BFTI. BFTI officials welcomed the idea, for in order to make its activities
sustainable, the BFTI need to create a pool of experts who will then give training to others.
BFTI officials also requested the Graduate Institute to consider sending its experts to Dhaka to
organise 4-5 day training workshops at BFTI. The Director welcomed it, for this is more cost
effective and fruitful than sending BFTI officials to Geneva. He agreed that the Graduate Institute
will consider holding a 10 day training workshop in Dhaka. However, he urged BFTI officials to
include regional participants in that workshop, e.g. participants from India, Sri Lanka, Pakistan,
Nepal etc. He emphasised that giving the conference a regional character will not only be
beneficial for the BFTI to achieve a greater audience, but will also be of help to the Graduate
Institute in getting assistance from the Swiss government. He hoped that in conjunction with WTO
(Geneva), WTI (Berne) and the Graduate Institute, the BFTI can hold one regional conference
every year. He said that he will discuss the issue with officials from the WTO and WTI.
Outcome of the meeting: (1) The Graduate Institute will consider organising tailor-made
trainers’ training courses in Geneva for BFTI officials. (2) The Graduate Institute will discuss with
the WTO (Geneva) and the WTI (Berne) the possibility of organising, on a yearly basis, an
international regional conference in Dhaka in conjunction with the WTO and WTI on important
WTO issues. It will update the BFTI of any improvements made in this regard.
The team visited the World Trade Institute (WTI) on January 5. The 2 hour long (2.00-4.00 PM)
meeting was attended by Dr. Thomas Cottier, Managing Director, and Mr. Pierre Sauve, Director
of Studies. Professor Taslim gave a brief introduction on the BFTI and its activities. WTI officials
gave a briefing of what the WTI does. The WTI focuses on education and research in the field of
international trade regulation. It offers a Masters course on International Law and Economics, and
conducts summer courses, such as Introduction to the WTO, Trade remedies, TRIPS, Dispute
settlement and decision making, and Trade in Services and GATS. It also offers various tailor-
made training courses and consulting services.
After briefly explaining the purpose of the visit, Professor Taslim requested the WTI to assist the
BFTI through joint collaborative programmes in training and research, and also by offering joint
degree programmes in international trade and economics. BFTI officials thus enquired whether it
would be possible for the WTI (a) to arrange tailor made training courses for BFTI officials at the
WTI through payment of fees so that they could become experts/trainers, and would eventually
train government and private sector people in Bangladesh, (b) to assist the BFTI in organising
training programs in Bangladesh in trade related issues, and (c) to assist in turning the BFTI into
a degree offering institution by running joint degree programmes.
WTI officials showed keen interest, but insisted that it would be difficult to do anything for the
BFTI in 2008, because such cooperative arrangements required long term planning. However,
they hoped that the WTI could do something for the BFTI in mid-2009. Mr. Sauve emphasised
two essential preconditions for such collaboration: (a) timing of the programme, (b) making sure
that partners (here, the BFTI) have appropriate funding. BFTI officials informed the WTI that it has
ample budget to provide for the expenses of such collaboration, as it is funded by the European
Commission.
WTI officials commented that the WTI could send its staff to Dhaka to organise week-long
workshops/training programmes, but it would depend on whether the programmes chosen by the
BFTI matches the WTI expertise. However, they insisted that instead of delocalising WTI
activities in Dhaka, the WTI prefers BFTI staffs being sent to Berne (the WTI) for tailor-made
trainers’ training courses. Mr. Cottier said that their degree programmes and training courses are
open to private and public officials, and the selection is based on strict academic criteria. At the
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Bangladesh Trade Support Programme
same time, they did not rule out the possibility of holding joint programmes in Dhaka. The WTI
agreed that it would consider both of the BFTI proposals.
In terms of long term joint degree programmes, WTI officials agreed that depending on the topic
in which the WTI has expertise, it could send one of its faculties to Dhaka for one Semester. The
WTI also showed its interest in designing the content and structure of the degree programmes
that the BFTI wants to deliver. The BFTI will communicate with the WTI in order to work out the
details of that collaboration.
Outcome of the meeting: (1) The WTI will consider organising week-long training
programme/workshops in Dhaka in collaboration with the BFTI. (2) The WTI will consider whether
it can accept fee-paying BFTI staff in its tailor-made trainers’ training courses. (2) The WTI will
assist the BFTI in designing the content and structure of its degree programme on international
trade and economics. If the area matches WTI expertise, the WTI will consider the twinning
programme by sending one of its faculties to spend a Semester in Dhaka.
UNCTAD (Geneva)
The next place to visit was the United Nations Conference on Trade and Development
(UNCTAD), which occurred on January 6. The 2 hour long (10.00-12.00 PM) meeting was
attended by Ms. Manuela Tortora, Chief, Technical Cooperation Service, Ms. Vlasta Macku,
Chief, UNCTAD Virtual Institute, Ms. Alessandra Vellucci, Chief, Human Resources Development
Section, and others from UNCTAD. Professor Taslim gave a brief introduction on the BFTI and its
activities. Explaining the purpose of the visit, he requested the UNCTAD officials to provide
assistance to the BFTI in terms of organizing training and research for this institution, which aims
to be the centre of excellence in trade policy research and training in Bangladesh. By holding
seminars/workshops and training programmes for officials in the government, e.g. the Ministry of
Commerce, the Ministry of Foreign Affairs, and in the private sector, the BFTI would strive to be
the conduit for building trade related capacity of officials.
UNCTAD officials expressed their interest in assisting the BFTI. They said that UNCTAD have
organised various training programmes in Bangladesh. Its week-long short workshops/training
programmes focus basically on economic diplomatic skills, bilateral, regional and multilateral
trade agreement, and trade related diplomatic notes. These trainings are provided not only to
negotiators who are attached to the WTO, but also to ministry officials in order to teach them the
techniques of doing negotiations, and presenting cases for negotiations. UNCTAD also has a
Virtual Institute, which targets the academic institutions to improve their efficiency. However, the
BFTI will only be entitled to receive assistance from this Institute when it begins offering degree
programmes as it envisages.
In the field of trade analysis and research, two main types of technical cooperation and capacity
building activities are carried out by UNCTAD, which include (a) the maintenance, upgrading and
development of new analytical tolls and databases, such as TRAINS, ATPSM, and AMAD, and
(b) conducting policy-oriented analytical studies on current and emerging issues in international
trade of concern to developing countries. Ms. Tortora said that UNCTAD programmes are tailor-
made in the sense that they are devised by UNCTAD and then delivered to its clients. She hoped
that UNCTAD might be able to offer a training programme in 6 months in Dhaka. She advised
BFTI officials to develop concrete proposals of what kind of programme they want, mentioning the
timing and modalities of such programme, and then contact the Technical Cooperation Division of
UNCTAD in writing or through email. UNCTAD does not charge any fee for its services, however
for certain services which require travelling by UNCTAD staff, the host (here, the BFTI) may have
to bear the expenses related to travel, lodging and local hospitality.
Outcome of the meeting: (1) UNCTAD will consider holding a trade-related training workshop
in Dhaka in 6 months. BFTI will need to work out the details including the timing and modalities in
consultation with UNCTAD. Communication should be directed to its Technical Cooperation
section. (2) The BFTI will be entitled to receive assistance from the Virtual Institute only after it
introduces degree programmes.
As evident from the above report, the visit of the BFTI team to Switzerland was successful in the
sense that the BFTI benefited immensely from the discussions held with the officials of the
International Trade Centre, World Trade Organisation, Advisory Centre on WTO Law, Graduate
Institute of International and Development Studies, World Trade Institute, and United Nations
Conference on Trade and Development. The report also demonstrates that progress has been
made with regard to exploring the possibilities of (a) jointly developing and designing training
programmes for the BFTI, (b) using the services of these institutes for tailor-made training
programmes in Bangladesh, which can be delivered jointly by these institutions and BFTI, (c) long
term collaboration with these institutions for designing and offering degree programmes in
business, economics and trade.
Outcomes of the meetings are categorised below in terms of their immediacies for
implementation:
Short-term actions:
(1) The ITC will develop a concept paper detailing the assistance program relating to the TSI
activities, and send it to the BFTI. Again, the ITC will provide a detailed list of free support
services that the BFTI can obtain from it.
(2) The BFTI will assist the Ministry of Commerce, government of Bangladesh, in preparing the
plans for three National Assistance Activities which Bangladesh is entitled to get in 2008, and
request the Ministry to submit them to WTO as soon as possible.
(3) The Graduate Institute will discuss with the WTO (Geneva) and the WTI (Berne) the possibility
of organising an international regional conference in Dhaka in conjunction with the WTO and WTI
on important WTO issues, with the first one be held in the short term.
(4) UNCTAD will consider holding a trade-related training workshop in Dhaka in 6 months. BFTI
will need to work out the details including the timing and modalities in consultation with
UNCTAD’s Technical Cooperation section.
(5) The BFTI will request Mr. Stephen Browne, Deputy Executive Director of the ITC, to visit the
institute in order to assess the kind of assistance that the ITC can offer.
(1) The ITC will consider the BFTI proposal of holding the training programme titled ‘Trade
Finance for SMEs Programme’ in Dhaka through joint collaboration. The ITC will send the module
of the proposed programme and estimates of probable costs.
(2) The ITC will assist the BFTI in terms of building the capacity of its staff, e.g. through its
internship or fellowship programme. It will also send details of the 6-9 month long trainers’ training
programme to the BFTI, who then will work out details of possible collaboration.
(3) The ITC will examine whether it can organize joint study/research with the BFTI on important
trade policy issues. It will also examine whether it can offer trainings on ‘export planning and
strategies’ in Dhaka with local hospitality provided by the BFTI.
(4) The BFTI will propose to the Ministry so that it requests the WTO to hold its TRTA activities for
Bangladesh at BFTI.
(5) If the BFTI sends proposals to the WTO to admit BFTI-funded staff for the WTO training
courses in Geneva, the WTO will consider the proposals.
(6) The ACWL is interested in organising a short training workshop in Dhaka on dispute
settlement issues or other WTO legal issues, with the BFTI) bearing travel expenses and local
hospitality. The BFTI will work out the details of the workshop and its modalities with the ACWL.
(7) The ACWL will work as the informal reference point for hiring consultants/trainers to organise
workshops on WTO legal matters.
(8) The Graduate Institute will consider organising tailor-made trainers’ training courses in
Geneva for BFTI officials.
(9) The WTI will consider organising week-long training programme/workshops in Dhaka in
collaboration with the BFTI.
(10) The WTI will consider whether it can accept fee-paying BFTI staff in its tailor-made trainers’
training courses.
Long-term plans:
(1) The BFTI will try to play a role in terms of raising awareness among the officials in
Bangladesh about the need to ratify WTO/international treaties/conventions related to trade.
(2) The WTO may consider favourably the proposal of jointly holding WTO-delivered training
programmes in Dhaka with local hospitality borne by the BFTI.
(3) The WTI will assist the BFTI in designing the content and structure of its degree programme
on international trade and economics. If the area matches WTI expertise, the WTI will consider
twinning by sending one of its faculties to spend a Semester in Dhaka.
(4) The ACWL does not accept any paid internees/candidate for their courses. However, if BFTI
continues to field applications, one of its applicants may get a chance to enrol as a Bangladeshi
applicant.
Implementation:
To realise the promises of the visit would require timely implementation of the decisions taken
during the discussions with the officials of these six institutions. In order to do so, a number of
measures need to be undertaken:
(a) The BFTI should follow up with the above six Swiss institutions so as to develop modalities to
implement the decisions. It would also require keeping constant communication with these
institutions to explore opportunities and to devise collaborative programmes, as agreed upon
during the discussions, with their assistance.
(b) The BFTI should request the Permanent Mission of Bangladesh in Geneva, Switzerland to be
in touch with these six institutions in Geneva and Berne so as to facilitate the implementation of
the pledges made by those institutions during the meetings.
(c) The BFTI would require cooperation of the Ministry of Commerce and the Delegation of the
European Commission in order to make progress in developing collaborative programmes with
those institutions. Some of the programmes will require government permission and project
funding.
Annex-XIV
Report of the study tour of PTF on visit to Switzerland from 2nd to 6th June 2008 to
introduce with and explore twinning possibilities of BFTI with International trade
related organizations:
As part of capacity building programme of Programme Task Force office of BTSP, a study tour
was made to Switzerland from 2nd to 6th June 2008 to get introduced to the international trade
related organisations and explore the twinning possibilities of BFTI with them. The following
officials of PTF and MoC along with the participants from BFTI participated in the study tour:
The visit aimed at exploring the possibilities for jointly developing and designing trade-related
training courses and researches for Bangladeshi business entrepreneurs and officials belonging
both to public and private sectors. The main objective of the visit of PTF was to have an exposure
to the activities of this organisation and assist BFTI through Bangladesh Mission in Geneva in
getting required support from the visiting institutes. With this end the Team visited the following
institutes at Geneva and Berne :
a. International Trade Centre (ITC), Geneva;
b. Advisory Centre on WTO Law (ACWL), Geneva;
c. Institute for Training & Technical Cooperation, WTO, Geneva;
d. World Trade Institute (WTI), University of Berne, Berne;
e. Graduate Institute of International and Development Studies, Geneva; and
f. United Nations Conference on Trade and Development (UNCTAD), Geneva.
The purpose of the visit of the PTF team was to get acquainted with the functions of the
internationally reputed trade training and research related institutes at Geneva and Berne. PTF’s
participation was mainly to assist BFTI from governmental point of view in exploring possibilities
of foreign trade training and research with these institutions. Required support from the
Programme and the Ministry were delineated to the visiting organizations while discussions
carried on the following points:
a. jointly developing and designing training programmes for BFTI and outsourcing experts
from these Swiss international institutions for jointly designed training courses;
b. using the service of the institutes for tailor-made training programmes in Bangladesh, which
can be delivered jointly by these institutions and BFTI;
c. long term collaboration with these institutions for designing and offering degree
programmes in trade related fields; and
d. undertaking joint research projects on trade related issues.
Following are the lists of Institutes visited and discussions held from 2nd June to 6th June, 2008:
On 2nd June, Monday, 2008 the team visited the International Trade Centre (ITC) at Geneva.
The meeting lasted for the whole day when the Team met at different sessions with officials
dealing with different departments and aspects of the activities of ITC.
The introductory session was presided over by Ms. Lilia Hachem Naas, Senior Trade Promotion
Officer of Office for Asia and the Pacific. She supervised, on behalf of the ITC, the series of
meetings held during the day with the ITC officials. The whole-day session was moderated by Mr.
Moses Tenywa, Associate Trade Promotion Adviser of ITC.
At the beginning Professor M. A. Taslim, CEO of BFTI gave brief introduction of BFTI and its
activities. Formed recently, BFTI as a private-public partnership institute is run by a Board of
Directors represented by all the major stakeholders both from public and private sectors engaged
in foreign trade activities, he stated. He also explained the purpose of the visit to the ITC which
was to acquire technical assistance in terms of organizing training and research for this fledgling
institution. Mr. Golam Mostakim, Additional Secretary of Ministry of Commerce (MoC) highlighted
on the importance of BFTI from the Government’s point of view and Mr. Shawkat Ali Waresi, PD
of BTSP made a brief statement of the Trade Support Programme and on the stake of the EC
Delegation in providing support to BFTI.
Ms. Naas mentioned that ITC provides technical assistance both to the developed and
developing countries and cited that Pakistan Foreign Trade Institute was already having ITC’s
support. Bangladesh Quality Support Programme (BQSP), a MoC-based and EC-assisted project
is having technical support of ITC and suggested that BFTI can avail itself BQSP’s support with
regard to ITC-based training. She also expressed interest in developing collaborative
programmes with the BFTI and jointly working out the details of such collaboration. Describing the
new business lines of the ITC viz., ‘business-in-trade policy’, export strategy’, ‘trade intelligence’,
‘strengthening institutions’, and ‘exporter competitiveness’ she stressed the need to identify the
appropriate area where BFTI may work and have assistance.
Proposed follow-up action: (1) Following the ITC business lines, the ITC and the BFTI will work
out details of possible joint cooperation and ITC may work out how to use BQSP training facilities
for BFTI.
Other sessions: At the next session the team met the Market Development Section of ITC. Mr.
Antony Sandana, Senior Commodity Officer, Mr. Matthias Knappe, Chief, Market Development
Section sat with us. CEO of BFTI stressed on trade related training and research and asked for
possibility of introducing a fee-paying degree programmes for self-financing of BFTI. He also
urged ITC to assist BFTI in building up capacity for trade research and training to enable attain its
objectives within a short span of time. During discussion it was learnt that ITC is already involved
in capacity building of Business Promotion Council (BPC) in Bangladesh and working in
developing the leather sector. He advised that BFTI might cooperate with BPC in which regard
ITC assistance was sought.
Follow-up action: Possibilities will be examined how assistance of ITC may be availed to enable
BFTI to cooperate closely with the BPC.
Session 3: Next the team met with Mr. Paul Kelly, Senior Trade Information Officer, Trade
Information Section, and Mr. Christian Delachenal, Senior Market Analyst, Market Analysis
Section. Mr. Kelly stated that ITC provides advisory services based on international best practices
in information management, offers training programmes focusing on trade information
management techniques and on market profile, conducts research on export potential
assessment, trade competitiveness assessment and trade negotiations (for ACP countries), and
provides information support and management tools. Mr. Delachenal emphasized that the ITC is
concerned with how to collect, analyse and disseminate trade information through different
market analysis tools like a web-based Trade Map, Market Access Map, Product Map and
Investment Map which deal with technical details and possibilities of latest qualitative and
quantitative information on market and access unto these.
Considering these trade data of immense use in conducting and simulating in research of BFTI,
ITC was requested to assist BFTI in this regard, it was referred that ITC was already establishing
a WTO Reference Centre at BFTI to provide training to government and private sector officials in
accessing the Centre resources.
Session 4: Next we were introduced to Mr. Jean-Francois Bourque, Senior Legal Adviser,
Business Environment Section and Mr. Michael Geiger, Associate Expert, Division of Trade
Support Services. The issue of possible assistance in specialized products and services for the
development of SMEs in Bangladesh were discussed in the areas of Trade Law, Trade Finance
for SMEs, and Trade Facilitation. It was emphasized that GoB needs to further ratify (beyond the
existing 30%) the WTO-led international treaties and conventions to qualify for these supports.
SMEs, it was opined, need to have adequately developed, in terms of affordable credit,
entrepreneurs’ financial management skills, tailor-made financial instruments and mechanisms of
the above programmes. These measures would be of immense help, they commented to acquire
needed assistance. ITC was requested to provide modules for the SME-related trainings so that
BFTI could work on it.
Follow-up action: a. The ITC will consider holding jointly a training programme titled ‘Trade
Finance for SMEs Programme’ in Dhaka with BFTI taking up programmes for raising awareness
among GoB officials towards necessary ratifications of trade-related WTO treaties and
conventions.
Session 5: The fifth session was attended by Mr. Osman Atac, Chief, TSI Strengthening Section
Programme Coordinator and Mr. Giovani Dadaglio, Coordinator, Development Programme of
Leather Department. The CEO OF BFTI and Additional Secretary, MoC emphasised the need for
the ITC to provide assistance to the BFTI. The hosts asked for the type and nature of support
BFTI might seek from ITC’s ‘Trade Support Institution Strengthening Section’ and stated of the
facilities ITC might provide. ITC, they said, helps diversify exports and identify high export-
potential sectors through design of sectoral strategies by focusing on quality improvement, brand
design and recognition through use of geographical indicators on international markets. To this
end they suggested BFTI must build first adequate human management and financial resources
to cater to the need of private and public sectors in this respect. It was assured that ITC will
develop a concept paper on the proposed assistance and send to the BFTI.
Follow-up action: The ITC will develop a concept paper detailing the assistance programme
relating to the TSI activities. The BFTI will then elaborate on its plans and get back to the ITC.
Session 6: The sixth session was attended by Mr. John Gillies, Senior Trade Training Officer,
Enterprise Management Development Section, and Mr. Jacky Charbonneau, Senior Adviser
(packaging), Business Advisory Services Section. This Division deals with four major issues
namely, management development, marketing and operations environment, marketing and sales
and e-labelling. All these issues aim at making a robust business plan helpful for developing an
effective market based well-structured market analysis. With this regard ITC trainings focuses on
training of enterprises or training of trainers (TOT) at the base levels. Long and short-term training
programmes were suggested by ITC suitable for three categories of trainer- the Master trainer,
Qualified trainer and Associate level trainer. BFTI requested two ways training and the costs
involved thereto- (i) by allowing BFTI officials to come to ITC to get training so as to develop a
pool of experts/trainers at BFTI, and (ii) by sending ITC officials to Dhaka to organize
seminars/workshops at BFTI so as to build capacity of government and private sector officials
engaged in foreign trade activities. The ITC agreed to send the whole package of the programme,
including the basic curriculum, time schedule and costs involved to BFTI.
Follow-up action: ITC will send the whole package of the 6-9 month long training programme to
the BFTI. BFTI will then work out details of possible collaboration.
Session 7: This session was attended by Mr. Rajesh Aggarwal, Officer-in-charge, Business and
Trade Policy Section who deals with raising awareness and advocating policies by regional
seminars/workshops on trade development issues and concentrates on examining the
implications of various trade related agreements. BFTI and PTF officials inquired whether ITC
could consider conducting joint study/research with BFTI on trade policy issues. It depends on the
availability of funds for country-specific programs, Mr. Aggarwal replied and he agreed to look into
the situation and let BFTI know the same.
Follow-up action: ITC will examine whether it can organize joint study/research with the BFTI on
important trade policy issues and would inform BFTI accordingly.
Session 8: The eighth session was attended by Mr. Ian Sayers, Senior Officer for the Private
Sector, Export Strategy Section, and Sophien Hanouz, Senior Trade Strategy and Value Chain
Development Specialist, International Purchasing and Supply Management Section. These
sections help businesses in building opportunities led by trade policies, and assists governments
in devising effective national export strategies. The PD, BTSP enquired as to how the export
strategies devised by ITC may help Bangladesh to improve its efforts at diversifying the export
base, ITC officials said that Bangladesh needs policies eligible for international standards
institutes to work thereon to facilitate its exports and ITC does offer training on export planning
and strategies that could also be provided locally in Bangladesh.
Follow-up action: The ITC will examine whether it will be able to offer trainings on ‘export
planning and strategies’ in Dhaka with local hospitality provided by the BFTI.
Sum-up of the day-1 sessions: The concluding session was attended by Mr. Stephen Browne,
Deputy Executive Director, ITC. CEO OF BFTI gave a brief introduction on the BFTI and its
activities and Additional Secretary, MoC and CEO emphasised that since ITC and BFTI share
commonalities of work, the BFTI hoped to establish twinning programmes with the ITC. The
visiting team explained on mainly three means by which the ITC might assist BFTI that is (i) by
allowing BFTI officials to come to ITC to get training on trade related issues so as to develop a
pool of experts/trainers at BFTI, (ii) by allowing ITC officials to go to Dhaka to organize
seminars/workshops on important trade related matters at BFTI so as to build capacity of
government and private sectors officials engaged in foreign trade activities and (iii) by assisting
the BFTI to develop degree programs so as to enable it to become a self-sustaining institution
after the EC funding ceases in 2013.
Mr. Browne welcomed the unique concept of BFTI’s public-private partnership and its concept of
self-sustainability. He agreed that the ITC would provide necessary assistance to empower BFTI
and proposed that since ITC’s information services are provided free to LDCs from January 2008
BFTI can, in the sort run, obtain a wide range of support services from the ITC without paying any
fee which BFTI may re-deliver to the country’s government and private sectors in exchange of
money. He also suggested that in the medium term, the BFTI could get assistance from the ITC
in terms of training its staff to make them experts/trainers through ITC’s internship or fellowship
programme. It was requested that ITC’s Deputy Chief visit BFTI to assess the kind of assistance
it requires from ITC.
Follow-up action: In the short term, the BFTI will obtain a wide range of free support services
from ITC which would provide BFTI a detailed list to BFTI. In the medium term, the ITC will assist
the BFTI to build up capacity of its staff, i.e., through internship or fellowship programme of ITC
and BFTI will request ITC’s Deputy ED to visit BFTI to assess the assistance ITC may offer.
On day 2 of the study tour, 3rd June, Tuesday, 2008 the team visited the World Trade
Organisation in Geneva. The two-hour meeting was presided over by Mr. Hakim Ben Hammouda,
Director, Institute for Training and Technical Cooperation (ITTC), WTO who was assisted by Mr.
Marteen Smeet, Counsellor of ITTC and Dr. Ramond J Krommenacker of Asian Development
desk. Professor Taslim gave a brief introduction of BFTI and its activities and Mr. Mostakim
mentioned that GoB strives to establish the BFTI as the pioneering institution dealing with foreign
trade matters. Requests were made to assist introduce BFTI in introducing fee-based degree
programmes to make it self-financing by the time EU assistance was over. In response WTO
officials said that the technical assistance rendered by WTO through ITC covers five categories of
trainings:
(i) General WTO-related TA and training covering Geneva-based Trade Policy Courses and the
field-based Regional Trade Policy Courses;
(ii) Specialized and advanced TA and training geared to specialists and may be held in Geneva or
in the field;
(iii) Academic support for training and capacity-building aiming at developing partnerships with
trade policy-related academic community in member countries;
(iv) Trainee programmes and internships that include the Netherlands Trainee Programme, the
WTO Regional Coordinator Internship and the Mission Internship Programme; and
WTO officials assured to help develop BFTI through submission of specific proposals by MoC
and Bangladesh Mission in Geneva and quoted recent setting up of WTO Reference Centre at
BFTI to enable access of data and other latest developments at WTO.
On a query if WTO would allow BFTI to send its staff to attend WTO Trade Policy Courses at
BFTI’s cost and arrange WTO-delivered training programmes in Dhaka with the BFTI bearing
local hospitality costs, the hosts suggested that the BFTI should send proposals to the WTO for
considerations.
Follow-up action: (a) BFTI will assist MoC prepare plans for three National Assistance Activities
which Bangladesh is entitled to get in 2008 and would request MoC to submit those to WTO at
the earliest; (b) BFTI will propose to MoC to formally request WTO to hold its TRTA activities for
Bangladesh at BFTI; (c) It was assured that WTO will accept the above proposals if made
formally by MoC and Mission at Geneva.
On the same day, 3rd June 2008, the team visited Advisory Centre on WTO Law (ACWL) where
the two-hour long meeting from 3-5pm which was attended by Ms. Cherise M. Valles, Senior
Counsel, and Mr. Hunter Nottage, Counsel, from the ACWL... The CEO OF BFTI briefly stated
the activities of BFTI and purpose of visit that was to acquire assistance and collaboration from
the ACWL in organizing training for BFTI on dispute settlement issues and matters related to
WTO Law. ACWL is an intergovernmental organisation that provides advice, support and training
on all matters relating to WTO law and dispute settlement procedures and provides developing
countries and LDCs an equal opportunity to participate effectively in the WTO and its dispute
settlement system. Regarding training, the ACWL conducts the following programmes:
(i) Six-month (Oct-Mar) training courses on WTO law and dispute settlement procedures;
(ii) Occasional seminars on legal issues of interest to developing countries e.g., presentations on
developing countries in the GATT/WTO dispute settlement system and on principles of treaty
interpretation in recent Appellate Body reports.
(c) Secondment programme for trade lawyers: This nine-month programme is intended to give
government officials an opportunity to increase their expertise in WTO law by working with the
ACWL’s lawyers.
BFTI officials enquired whether it would be possible for the ACWL (a) to allow BFTI to send its
officials to ACWL as Fellows or Internees through payment of fees so that they could become
experts/trainers, and would eventually train government and private sector people in Bangladesh,
(b) to assist the BFTI in organising training programmes in Bangladesh in trade related legal
issues. ACWL’s response was that courses were free for LDCs and BFTI might send applications
for its secondment course to qualify for its staff enrolling in the course. Joint seminar/ workshop
may be held in Dhaka by ACWL staff imparting a 2/3 day course on ‘dispute settlement
workshops’ without charging any fee with BFTI bear the travel expenses and local hospitality.
BFTI may also hire consultants from WTI and the Centre for Trade Policy and Law in Ottawa.
Thus workshops and short training may be imparted. And by providing names of like institutes
ACWL may also assist BFTI in working as informal reference point for the BFTI.
Follow-up action: (a) Since ACWL does not accept any paid internees/candidate for their
courses it can help through BFTI applying for enrolment of Bangladeshi applicant; (b) ACWL’s
interest to organize short training workshops in Dhaka on dispute settlement issues and/or WTO
Annexes Page 158/165
BTSP 9th Four-monthly Progress Report: Mar-Jun/2008,
Bangladesh Trade Support Programme
legal issues may be availed by BFTI bearing only the travel and local hospitality expenses. BFTI
will work out the details of the workshop and its modalities with the ACWL; (c) ACWL will work as
the informal reference point for hiring consultants/trainers to organise workshops on WTO legal
matters.
On June 4, Wednesday 2008 the team visited Geneva-based ‘Graduate Institute of International
and Development Studies’ where in the two-hour meeting it was welcomed by Institute’s Director
Mr. Daniel Warner and Program-in-charge Ms. Sophie Fleury. A brief introduction on BFTI’s
current status and objectives for the study tour was given by CEO and the hosts also made brief
presentation on the Graduate Institute’s inception and activities that aims to promote international
cooperation and development through high standard academic contributions by offering several
academic programmes- Masters and/or PhD level in various disciplines, e.g. International Affairs,
Political Science, International Law, International Economics, and Development Studies.
The Institute conducts research and training on international trade and economic and financial
integration, conflict and security, migration and refugees, international environment policy, and
international health policy. It also offers various programmes for professional development, such
as summer courses and diploma programmes. CEO OF BFTI and Additional Secretary, MoC
detailed BFTI’s future programme of trade training and research and Ministry’s avid interest in
introducing developing BFTI as a centre of excellence in foreign trade training and research. They
requested the Graduate Institute to assist BFTI joint collaborate programmes in this line when
BFTI is amply aided by EU till 2013 to accomplish its objectives as a self-sustaining organization.
It was informed the Graduate Institute works closely with WTI in Beijing and Shanghai, it helped
set up similar institutions in Nairobi, Cameroon, Malta, and Trinidad and Tobago with and also
assist establishment of Diplomatic Institutes in Azerbaijan and Georgia. Graduate Institute
officials showed their interest in working closely with the BFTI. Mr. Warner assured to extend all
possible help to develop BFTI through tailor-made courses on trade negotiations and simulations
and also TOT to enable a core group resourced with basic training to conduct home-based
training and research. Initially short and cost effective trainings may be planned to be held at the
Institute for BFTI staff and reciprocal exposure will be given at Dhaka and Swiss government
assistance will also be sought to hold regional training including other South Asian countries.
Follow-up action: The Graduate Institute will consider (i) organising tailor-made trainers’ training
courses in Geneva for BFTI officials; (ii) will discuss with the WTO and WTI the possibility of
organising annual international regional conference in Dhaka in conjunction with the WTO and
WTI on important WTO issues and (iii) will update BFTI on latest developments and
improvements in this regard.
On 5th June Thursday 2008 the team visited the World Trade Institute (WTI) at Berne, two hour
train journey from Geneva. The two-hour meeting was attended by Dr. Thomas Cottier, Managing
Director, and Mr. Pierre Sauve, Director of Studies. First a brief sketch of BFTI’s activities and
purpose with that of the visit was given by the CEO OF BFTI. In exchange the WTI officials gave
a briefing of WTI activities that focuses on education and research in the field of international
trade regulation. Under the MILE (Masters in Economics and Law) programme it offers MA
degree on International Law and Economics and conducts summer courses on WTO principles,
Trade remedies, TRIPS, Dispute settlement and decision making, Trade in Services under GATS
etc. It also offers various tailor-made training courses and consulting services. BFTI sought joint
collaborative programmes in training and research and also joint degree programmes in
international trade and economics. It was enquired by BFTI if it would be possible for WTI (a) to
arrange fee-based tailor-made training courses for BFTI officials to turn them experts/trainers to
subsequently train the government and private sector people in Bangladesh, (b) to assist the
BFTI in organising training programmes in Bangladesh in foreign trade related issues, and (c) to
assist in turning the BFTI into a degree offering institution by running joint degree programmes.
In response WTI officials showed keen interest and assured the team to explore the possibilities
after 2008 as such cooperative arrangements required long term planning. By mid-2009 WTI
could extend required cooperation subject to (a) timing of the programme, (b) confirmation that
BFTI have required fund. BFTI officials informed that adequate funds might be availed through
current EU assistance. WTI commented that it could send trainers to Dhaka to organise week-
long workshops/training programmes and a reciprocal attending by GoB trainees at WTI. The
degree programmes and training courses are open to private and public officials and selection is
based on strict academic criteria. Assurance was also given of holding joint programmes in
Dhaka. The WTI agreed that it would consider both of the BFTI proposals.
In terms of long term joint degree programmes, WTI officials agreed that depending on the topic
in which the WTI had expertise, it could send one of its faculties to Dhaka for one Semester. The
WTI also showed its interest in designing the contents and structure of the degree programmes
that the BFTI wanted to deliver. The BFTI will communicate with the WTI in order to work out the
details of that collaboration.
Follow-up action: (1) The WTI will consider organising week-long training
programme/workshops in Dhaka in collaboration with the BFTI. (2) The WTI will consider whether
it can accept fee-paying BFTI staff in its tailor-made trainers’ training courses. (2) The WTI will
assist the BFTI in designing the content and structure of its degree programme on international
trade and economics. If the area matches WTI expertise, the WTI will consider the twinning
programme by sending one of its faculties to spend a Semester in Dhaka.
6. UNCTAD (Geneva)
On the last day of the study tour the Team visited the United Nations Conference on Trade and
Development (UNCTAD) on 6th June, Friday, 2008 where in a two-hour meeting it met Ms.
Manuela Tortora, Chief, Technical Cooperation Service, Ms. Vlasta Macku, Chief, UNCTAD
Virtual Institute, Ms. Alessandra Vellucci, Chief, Human Resources Development Section and Mr.
Norbert Lebale, Senior Economic Affairs Officer from UNCTAD. Professor Taslim gave a brief
introduction to the BFTI and its activities. While explaining the purpose of the visit, he requested
the UNCTAD officials to provide assistance to the BFTI in terms of organizing training and
research for this institution, which aims to be the centre of excellence in foreign trade policy
research and training in Bangladesh. By holding seminars/workshops and training programmes
for officials in the government, e.g. the Ministry of Commerce, the Ministry of Foreign Affairs, and
in the private sector, the BFTI would strive to be the conduit for building trade related capacity of
officials.
It was learnt that UNCTAD organizes short workshops and training programmes in Bangladesh
on disciplines like economic and trade related diplomatic skills, bilateral, regional and multilateral
trade agreement. Negotiating techniques are developed by these trainings which are provided to
the WTO-related negotiators as well as government officials. The facilities of Virtual Institute of
UNCTAD can only be availed if BFTI starts degree-conferring programmes. In the field of trade
analysis and research UNCTAD runs two main types of technical cooperation and capacity
building activities viz., (i) the maintenance, upgrading and development of new analytical tools
and databases, such as TRAINS, ATPSM, and AMAD, and (ii) conducting policy-oriented
analytical studies on current and emerging issues in international trade of concern to developing
countries.
UNCTAD programmes are non-fee based and tailor-made and it was agreed to provide such
course to BFTI followed by concrete proposal.
Follow-up action: (a) BFTI will need to work out details (timing & modalities) with UNCTAD’s
Technical Cooperation Section to enable holding a foreign trade–related training workshop in
Dhaka in 6 months. (b) Upon degree programmes taken by BFTI it would contact the Virtual
Institute of UNCTAD for affiliation.
Recommendations:
A. The extensive visits with the above trade related internationally reputed organizations
provided a unique opportunity for PTF to learn very closely their nature of work and how
they might be of help to develop BFTI. PTF officials along with BFTI’s CEO and Fellows
got very warm response and every official met showed profound interest in BFTI and
assured to render possible assistance. To procure required support, BFTI needs to act
closely on the advice and opinion conveyed by each institute during the aforesaid
meetings.
B. Program Task Force (PTF) office of BTSP and the Ministry will closely follow the
contacts, correspondences etc. made by BFTI with the Swiss Institutes and would
facilitate in this matter.
C. Officials of PTF and MoC participated in these meetings to explain the required stance
and support of Government in the way of seeking assistance for BFTI from the
international organizations. With a view to building capacity of the government officials in
foreign trade related training and research BFTI would require to work very closely with
PTF and MoC. Discussions with institutes like ITC, WTO, ACWL, UNCTAD etc. have led
the possibilities of (a) jointly developing and designing training programmes for BFTI, (b)
using the services of these institutes for tailor-made training programmes in Bangladesh,
which can be jointly delivered jointly by these institutions and BFTI and (c) long term
collaborations with these institutions for designing and offering degree programmes in
business, economic and trade.
D. The sum-up of the afore-mentioned follow-up actions with regard to each Institute visited
will be to monitor the whole activities of BFTI from PTF. All the correspondences made
from BFTI to these Institutes will be carrying a confirmation copy to the PTF so that the
whole activity remains in knowledge of PTF and MoC as well.
E. The different short-term, medium-term and long-term action plans as have been
mentioned in the recommendations of the report of BFTI will be noted down by the PTF
and a close monitoring and steady progress will be ensured in the communications with
the Institutes visited.
F. The afore-stated follow-up actions shall mostly be taken up by the BFTI. Necessary
correspondences will be made by the Fellows of BFTI with the institutes visited during the
study tours to tap the areas of twinning and joint-research. The Programme Task Force
will be responsible for following up the activities undertaken by BFTI in this regard.
Copies of all the correspondences made will be given to the PTF and some time to the
MoC.
1.
Sd/-
(Golam Mostakim)
Additional Secretary
Ministry of Commerce
2.
Sd/-
(Md. Shawkat Ali Waresi)
Programme Director (Joint Secretary)
Bangladesh Trade Support Programme
3.
Sd/-
(Ziauddin Ahmed)
Accounts Director (Deputy Secretary), B.T.S.P.
Annexes Page 163/165
BTSP 9th Four-monthly Progress Report: Mar-Jun/2008,
Bangladesh Trade Support Programme
Annex- XV
Present:
BTC: Ms Rama Dewan, Deputy Chief, BTC and Component Director- 3 (CD)
Mr Mamoon Askari, Research Officer (RO)
A. WELCOME
BTSP PD Mr. Md. Shawkat Ali Waresi kicked off the meeting by welcoming all the participants for
their timely presence and asked the STIC Dr. Gustav Brink to update the progress of the activities
since the last bi-monthly meeting (held on 31 January 08).
B. MEETING DISCUSSIONS
1. Activities completed since the last BMM: Short summary of methodologies, findings and
recommendations
Activity 5: Advanced AD training on procedural and substantive aspects
- STIC observed that some of the participants who undertook the training
lacked the prerequisite knowledge to absorb the materials designed for the course.
Consequently, the trainer had to allocate a considerable amount of time explaining
the basic materials. However, he observed that once the participants’ skill levels
were increased, they grasped the materials satisfactorily.
Activity 6: Drafting documentation required in AD investigations
- It was expressed that the activity has progressed as per the schedule and shall be
finished within allocated time.
• Half-term review by EC: A review report from EC is overdue from EC which has
conducted the review during February 2008.
• Local lead consultant: The issue of replacing the local lead consultant Professor
Monowaruddin Ahmed cropped up. The CD sought a formal letter from Unnoyon
Onneshan (UO) citing the background of the replacement and the proposed new CV of
Professor Ashrafuddin Ahmed for the position of LCT for their concurrence. The PD
instructed the PO Mr. Faheem Khan to pursue the matter with UO.