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TOWARD A WORLD TRADE ORGANIZATION-COMPATIBLEMECHANISM Mohammad Abdur Razzaque, Md. Rabiul Islam Rabi, Md. Hossain Uzzaman, and Barun Kumar Dey ADB SOUTH ASIAWORKING PAPER SERIES ADB South Asia Working Paper Series Supporting Bangladesh’s Exports After Least DevelopedCountry Graduation: Toward a World TradeOrganization-Compatible Mechanism Mohammad Abdur Razzaque is the chair of the Researchand Policy Integration for Development (RAPID),Bangladesh; Md. Rabiul Islam Rabi is an economics officerat the Bangladesh Resident Mission (BRM), South AsiaRegional Department (SARD) of the Asian DevelopmentBank (ADB); Md. Hossain Uzzaman is a researchassociate at RAPID; and Barun Kumar Dey is a senior Mohammad Abdur Razzaque, Md. RabiulIslam Rabi, Md. Hossain Uzzaman,and Barun Kumar Dey No. 103 | December 2025 Paper Seriespresents data from ongoingresearch to encourage exchange of ideasand elicit comment and feedback aboutdevelopment issues in Asia and the Pacific.The views expressed are those of the authorsand do not necessarily reflect the views andpolicies of ADB or its Board of Governorsor the governments they represent. Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) © 2025 Asian Development Bank6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, PhilippinesTel +63 2 8632 4444; Fax +63 2 8636 2444www.adb.org Some rights reserved. Published in 2025. ISSN 2313-5867 (print), 2313-5875 (PDF)Publication Stock No. WPS250539-2DOI: http://dx.doi.org/10.22617/WPS250539-2 The views expressed in this publication are those of the authors and do not necessarily reflect the views and policiesof the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for anyconsequence of their use. The mention of specific companies or products of manufacturers does not imply that theyare endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned. By making any designation of or reference to a particular territory or geographic area in this document, ADB does notintend to make any judgments as to the legal or other status of any territory or area. This publication is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO)https://creativecommons.org/licenses/by/3.0/igo/. By using the content of this publication, you agree to be boundby the terms of this license. For attribution, translations, adaptations, and permissions, please read the provisionsand terms of use at https://www.adb.org/terms-use#openaccess. This CC license does not apply to non-ADB copyright materials in this publication. If the material is attributedto another source, please contact the copyright owner or publisher of that source for permission to reproduce it.ADB cannot be held liable for any claims that arise as a result of your use of the material. Please contact pubsmarketing@adb.org if you have questions or comments with respect to content, or if you wishto obtain copyright permission for your intended use that does not fall within these terms, or for permission to usethe ADB logo. TheADB South Asia Working Paper Seriesis a forum for ongoing and recently completed research and policy studiesundertaken in ADB or on its behalf. It is meant to enhance greater understanding of current important economicand development issues in South Asia, promote policy dialogue among stakeholders, and facilitate reforms anddevelopment management. TheADB South Asia Working Paper Seriesis a quick-disseminating, informal publication whose titles couldsubsequently be revised for publication as articles in professional journals or chapters in books. The series ismaintained by the South Asia Department. The series will be made available on the ADB website and on hard copy. Corrigenda to ADB publications may be found at http://www.adb.org/publications/corrigenda. Notes: In this publication, “$” refers to United States dollars, “Tk” refers to taka, “€” refers to euros, and “£” pounds sterling.ADB recognizes “China” as the People’s Republic of China, “USA” as the United States, and “Vietnam” as Viet Nam. CONTENTS FIGURES, TABLES, AND BOXES v ACKNOWLEDGMENTS EXECUTIVE SUMMARYviii I.INTRODUCTION II.WORLD TRADE ORGANIZATION LEGAL FRAMEWORK ON EXPORT SUBSIDIES Understanding Subsidies in Light of the World Trade Organization Agreement on2Subsidies and Countervailing MeasuresSpecificity of Subsidies Under the Agreement on Subsidies and Countervailing Measures3Types and Treatment of Specific Subsidies Under the Agreement on Subsidies and4Countervailing MeasuresAgricultural Subsidies7 III.CURRENT EXPORT SUPPORT MEASURES IN BANGLADESH AND THEIR WORLD9TRADE ORGANIZATION COMPATIBILITY Most Prominent Export Support Measures for Industrial Goods9Can Bangladesh Continue to Benefit from the Special and Differential Treatment for13Developing Member Countries?Support Me