WTO members recently convened to explore strategies for enhancing the capacity of Least Developed Countries (LDCs) to participate in services trade. Speakers emphasized that LDCs face significant challenges, including infrastructure issues, skills development, regulatory environments, and limited technological capacity. The necessity of international cooperation was highlighted, with several speakers advocating for an Aid for Trade roadmap to address these constraints.
Despite LDCs' commercial services exports growing above the world average over the past decade, their share in global services exports remained at 0.53% in 2022. The concentration of LDC services exports in traditional sectors such as tourism and transport was noted, along with the potential growth in high-skilled service sectors like information and communication technologies (ICT), finance, and business services. Additionally, opportunities in digitally delivered services were identified.
Speakers also discussed the untapped potential for deeper integration into regional networks through agreements such as the African Continental Free Trade Area (AfCFTA) and the Association of Southeast Asian Nations (ASEAN), as well as other regional economic communities.
A Cambodian services provider highlighted that leveraging technologies and embracing digitalization could enhance LDCs' participation in services trade. The Association of Professional Societies in East Africa (APSEA) detailed initiatives aimed at boosting regional services trade through participation in trade negotiations, policy formulation, and technical assistance to service suppliers. Challenges facing Mauritania's tourism sector were also addressed, emphasizing the need for sustainable tourism projects.
During a regular session of the Sub-Committee on LDCs, representatives from the United Nations Economic and Social Commission for Asia and the Pacific, the United Nations Economic Commission for Africa, and the International Trade Centre shared insights into various initiatives designed to strengthen LDCs' trade capacity in services. The Regional Digital Trade Regulatory Integration Initiative was mentioned as a tool for assessing LDCs' readiness to engage in digital trade.
There are currently 45 recognized LDCs globally, with 35 being WTO members. Seven additional countries—Comoros, Ethiopia, São Tomé and Principe, Somalia, South Sudan, Sudan, and Timor-Leste—are in the process of joining the WTO.
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