ARMY INSTITUTE OF BUSINESS ADMINISTRATION, SAVAR

Assignment
ON
“Identify and discuss how WTO policies and agreements help improve and support the
supply chain of Bangladesh.”

Course Title: International Supply Chain Management

SUBMITTED TO:

Farida Yesmin Moni

Junied Zarif
ID: 82112018
Batch: BBA 08(SCM)

Date of Submission: 05-28-2025

1. Trade Facilitation and Customs Efficiency

WTO Agreement: Trade Facilitation Agreement (TFA), 2017

Impact on Bangladesh:
The TFA aims to simplify and modernize customs procedures, making it easier and faster for
goods to cross borders. Bangladesh ratified this agreement in 2016, and since then, has made
several efforts to streamline trade processes.

Real-life Example – Garments Industry:

 The Ready-Made Garments (RMG) sector, which accounts for over 80% of
Bangladesh’s exports, has benefited from improved customs procedures. Faster customs
clearance means reduced lead times, which is crucial for meeting tight deadlines from
buyers like H&M and Walmart.
 The National Board of Revenue (NBR) has implemented online customs systems, helping
reduce paperwork and delays at ports like Chattogram.

2. Elimination of Quotas and Greater Market Access

WTO Agreement: Agreement on Textiles and Clothing (ATC) (phased out by 2005)

Impact on Bangladesh:
The elimination of textile quotas under the ATC allowed Bangladesh to expand its garment
exports significantly, competing based on cost and efficiency.

Real-life Example – RMG Sector:

 After the phasing out of quotas, Bangladesh emerged as the second-largest exporter of
garments globally, thanks to its cost competitiveness and scale.
 Brands from the EU and North America increased sourcing from Bangladesh due to
improved market access and no quantitative restrictions.
3. Agricultural Subsidy Regulations

WTO Agreement: Agreement on Agriculture (AoA)

Impact on Bangladesh:
This agreement disciplines domestic support and export subsidies, promoting fair competition in
agricultural trade.

Real-life Example – Agriculture Sector:

 WTO rules helped Bangladesh ensure fair trade conditions for products like rice, jute,
and vegetables. With reduced export subsidies by developed countries, Bangladeshi
agricultural exports have become more competitive.
 Bangladesh has expanded agricultural exports to Middle Eastern and Southeast Asian
markets.

4. Technical Barriers to Trade (TBT) and Sanitary and Phytosanitary (SPS)

WTO Agreements: TBT Agreement and SPS Agreement

Impact on Bangladesh:
These agreements ensure that standards and regulations related to product quality and safety are
not used as disguised trade barriers.

Real-life Example – Fisheries Sector:

 Bangladesh’s shrimp and fish exports faced temporary bans from the EU due to non-
compliance with SPS standards.
 Following WTO rules, Bangladesh improved its quality control through the Department
of Fisheries and implemented Hazard Analysis and Critical Control Points (HACCP)
systems, leading to the resumption of exports.

5. Dispute Settlement Mechanism

WTO Feature: Dispute Settlement Understanding (DSU)

Impact on Bangladesh:
Though Bangladesh has not been a frequent user of the dispute mechanism, its existence
provides a legal framework to resolve trade conflicts fairly.
Relevance to Supply Chain:

 Ensures that larger trading partners cannot impose unfair trade restrictions without
justification, which indirectly supports stable supply chains.

6. Special and Differential Treatment (SDT) for LDCs

WTO Provision: Preferential treatment for Least Developed Countries (LDCs)

Impact on Bangladesh:
Bangladesh, as an LDC, has enjoyed duty-free and quota-free market access to developed
countries under WTO provisions.

Real-life Example – All Industries:

 Access to the EU under the Everything but Arms (EBA) initiative has made
Bangladeshi products more attractive.
 This preferential treatment has allowed domestic suppliers to scale up operations, invest
in logistics, and strengthen the overall supply chain.

Conclusion

WTO policies and agreements have played a foundational role in improving the supply chain
ecosystem of Bangladesh. From easing customs bottlenecks to ensuring fair trade and supporting
export growth, WTO mechanisms have made Bangladeshi industries more competitive and
globally integrated. However, as Bangladesh graduates from LDC status, continued alignment
with WTO rules will be crucial for maintaining and enhancing supply chain resilience in the
future.