The European Union yesterday proposed that the World Trade Organisation (WTO) should agree on its Hong Kong ministerial conference to adopt a package of development measures addressing the legitimate concerns of Bangladesh and other LDCs.

"These measures include the granting by others of duty-and quota-free access for LDC goods and a substantial aid for trade package," the European Commission said in a statement ahead of the 6th WTO ministerial that kicks off Tuesday.

It said the EU has made "substantial and constructive" proposals in all major areas on the Hong Kong agenda, including agriculture, non-agricultural market access and services. "The EU recognises that development is central to this WTO round."

As regards trade package, the statement said, the EC has pledged to provide one billion euros per year in aid for trade.

"This is the key to strengthening the capacity of developing countries to trade," it said, adding that the EU is already giving more trade-related assistance than the rest of the world combined. The EU called upon others to make the same commitment in the WTO conference.

The EC urged all industrialised WTO members to make commitment for providing duty- and quota-free access to all products from all LDCs. "Despite pledges made at various occasions other developed countries have, however, not followed suit."

The EU said the adoption of a package of special and differential treatment proposals to improve the flexibility for LDCs already exist in the WTO and would propose a "Round For Free" for LDCs - no obligatory tariff cuts or market access offers.

It said work should be intensified on addressing preference erosion while many G90 countries have expressed fears that serious cuts to tariffs would erode the preferential access they currently have to the EU market.

"The EU believes that the solution to this problem lies in reducing tariffs in a way that allows for adjustment for these exporters, and the provision of Aid for Trade assistance to help exporters adapt to the erosion of preferential access," said the statement.

The EU will also argue for an extension of current LDC exemptions from the TRIPS agreement in the WTO ministerial conference.