The World Trade Organization (WTO) has a work program specifically designed to assist countries designated as least developed by the United Nations. Until mid-December, Bhutan was one of the nations benefitting from this program.
The Sub-Committee on Least Developed Countries (LDCs) at the WTO convened and received updates on the LDC graduation process from the Secretariat of the United Nations Committee for Development and Policy, according to a Dec. 13 news release from the WTO. The meeting also acknowledged Bhutan's graduation from the program.
"Bhutan's economy has undergone a significant transformation. Moving away from a heavy reliance on agriculture, we have actively promoted economic diversification and invested in infrastructure development, education and healthcare to improve standards of living and human development indicators. Today is a proud moment for the Bhutanese people and our development partners who have stood by our side unconditionally every step of the way," stated Tenzin Rondel Wangchuk, Bhutan’s ambassador to the WTO, as per the Dec. 13 news release.
Before Bhutan's graduation, seven countries had already graduated from LDC status, including Vanatu in 2020 and Botswana in 1994. Currently, ten countries on the United Nations (UN) list of least developed countries are WTO members, while 15 others are making progress toward graduating from that status. The LDC list comprises 45 countries in total, as per information released by WTO.
The decision regarding whether an organization has made sufficient progress to graduate from LDC designation lies with the United Nations, which considers recommendations from its Committee for Development Policy.
Graduating from LDC status can have trade-related implications for those nations that achieve it. The WTO Secretariat assists these LDCs in understanding such implications. A report published by WTO reveals that graduating countries lose some preferences and flexibility within WTO rules designated for LDC program countries. Upon graduation from the LDC list, these countries lose access to concessions that exceed the flexibility offered to a developing country. The graduating LDCs may have lower levels of commitment than other LDCs. However, their contributions to the WTO budget remain unchanged with the shift in status, as per the report.