Up to 15 percent of the benefits of a WTO package of measures to help the world's poorest countries could be lost if textiles imports from Bangladesh and Cambodia are excluded from a final deal, the U.N. said Saturday.

The proposal at World Trade Organisation talks in Hong Kong grants duty-free and quota-free access to all so-called least developed countries. But the U.S. has raised objections over textile imports from Bangladesh. Japan also has concerns over rice imports.

A complete package would bring benefits of up to US$8 billion a year for the economies of the 50 least developed countries, with US$6.4 billion of that attributable to increased exports, said Anwarul Chowdhury, U.N. under-secretary-general for least developed countries, which have a per capita income of less than US$750.

It means a lot,Chowdhury told a news conference. Trade is the engine for development.
But a new draft agreement for granting duty-free and quota-free access includes no specifics on when the measures would be implemented or what products would be covered.

Chowdhury noted that many of the world's poorest countries, most of them in Africa, have no tradable products for Western markets and urged richer nations to increase so-called id-for-trade donations - money meant to help developing countries to strengthen their trading capabilities.

Chowdhury said half of these donations should go to least developed countries. This is what I am asking because their needs are the greatest,he said.

The issue of duty-free and quota-free access is a key component of the Doha round, which was launched in Qatart capital in 2001 and is meant to address the concerns of developing countries, who say they lost out in previous WTO negotiations.

Some least developed countries are particularly vulnerable and Chowdhury urged greater protection for those which have no access to the sea, as transporting goods to ports makes their exports up to 50 percent more expensive when they reach developed country markets.

These countries are losing all competitiveness,?he said. The needs of small island states, such as those in the Pacific, also need to be considered because they are so distant from the global trading system.

They do not have any negotiating power,Chowdhury added.

BSS adds: Despite uncertainties about the outcome of the WTO ministerial conference on global trade, Bangladesh and several other Asia- Pacific LDCs on Saturday initiated a move to achieve the promised zero tariff market access to developed countries.

Eight commerce ministers of the Asia-Pacific region sat together and formulated a new proposal for duty-free and quota- free market of all LDCS to all products into the market of the developed countries, including the USA.

The ministers, including Altaf Hossain Chowdhury, vowed to work together to advance the cause of all LDcs at Hong Kong and beyond. They also agreed to present a revised proposal for the zero tariff access to the green room for striking a deal.

Afghanistan presented the LDCs proposal to the WTO yesterday afternoon while Bangladesh and Cambodia supported it.

Commerce Minister Altaf Hossain Chowdhury, who is here leading the Bangladesh delegation to the WTO negotiations, on Saturday told BSS, they are trying to achieve our goals through difficult times.?

He said following LDCs?efforts Japan has agreed to offer duty- free and quota- free market access to all products, except rice, fish, sugar, starch and leather goods, of all LDCs.

He said he is still optimistic of positive results. He said since tonight is the last and crucial night, by tomorrow evening everything will become clear. Wait for another day,She said adding, She shall continue to push our legitimate demands to the end.?

A group of NGOs from Bangladesh on Saturday staged street demonstration here condemning opposition to duty-free and quota- free market access of Bangladesh's apparels to the market of the developed countries.

They also urged the US government to take into account the fate of two million garments workers of Bangladesh of which 1.6 million are female. The NGOs sought global support for the country's garment industry.

The meeting on its fifth day on Saturday and closer to wrap up today has remained far away from realising its goals by finalising negotiations and striking deals on agricultural, and non-agricultural market access (NAMA), particularly the duty- free and quota-free access of the LDCs products to developed countries and also on services.

The meeting sources said the WTO policy makers are already convinced, in principle, to give pace to negotiations on agricultural, NAMA and services and, therefore, to shift it to Geneva again.

It means another ministerial meeting may be necessary in the next summer. for concluding the Doha round by the end of 2006, which was initially scheduled to end by December 30, 2004.

Only the negotiation on LDCs?duty-free and quota-free market access is now more on focus along with a development package to improve their trade capacity. Observes say WTO wants to produce at least some results to save the Hong Kong conference from facing the fate of Cancun episode. The proposal said all developed countries must provide duty-free and quota-free market access to all products of all LDCs by July 1, 2006. Those who have difficulties can offer market access to 99.9 per cent of the products.

It must be defined at tariff line level. The 0.1 per cent products, which will remain out of the offer, shall benefit from duty-free and quota-free market access up to a value of one billion US dollars per tariff line per year. If that value exceeds this ceiling, the excess amount may be subjected to duty.

The developed countries should, however, achieve full coverage of products by 2010. Meanwhile, the developing countries should also phase their commitment for duty-free and quota-free market access, the proposal said.

The LDC proposals would be debated Saturday night.

The move to divide the LDCs by putting some countries to exclusion and making the group leader-less has failed as Bangladesh and Cambodia have remained on the top of the LDC list as candidates for zero tariff market access to the developed countries.

Sources said some developing countries like Kenya are opposed to zero tariff to LDCs?products. Such a scheme may work as a recipe for Pakistan to become an LDC as it may lose markets to LDCs in such case, they said.

However, India, China and Brazil are favouring it while Malaysia is calling for flexibility on the basket. Meeting sources said Canada is positive to LDCs?demand but since it is moving to election early next year, the country is not in a position to make concessions.

The meeting sources said developed countries are so far ready to cover 95 per cent LDCs?products on board the duty-free list, however, without committing to a time line as to when it comes into effect.

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