WTO members convened on March 25, 2024, to discuss strategies for aiding least-developed countries (LDCs) in their transition from the LDC category. The meeting was part of the Sub-Committee on Least Developed Countries, where Ambassador Ib Petersen of Denmark noted, “It is very encouraging to see that WTO members have shown commitment to support a smooth transition for graduating LDCs.”
Various initiatives were highlighted during the session. Angola aims to enhance its fisheries value chains, Nepal focuses on agricultural development, and Cambodia seeks to make its garment industry more sustainable and resilient. Logistics improvements are central to these efforts, with significant projects like operationalizing the Lobito Railway Corridor in Angola and improving road infrastructure between Kathmandu and Kolkata port.
Graduated LDCs emphasized challenges posed by extreme weather conditions impacting trade capacities. They stressed creating environments to mitigate such effects and enhancing donor coordination as crucial steps forward.
Development partners shared their support measures for LDCs pre-and post-graduation. This includes duty-free and quota-free programs alongside targeted technical assistance activities. Notably, 70% of aid-for-trade from the United States Agency for International Development has benefited low-income countries over five years. Australia announced an AUD 20 million Aid-for-Trade package focused on e-commerce, digital economy enhancement, trade finance, intellectual property rights, and climate-related trade strategies.
The United Nations decides on LDC graduation based on recommendations from its Committee for Development Policy using socio-economic criteria.
During a regular session of the Sub-Committee on LDCs, members reviewed trade trends outlined in the United Nations Conference on Trade and Development's 2023 report. Although there was a slight increase in LDCs' share of global exports from 0.95% in 2021 to 1.02% in 2022, further efforts are necessary to boost export capacity.
Currently, there are 45 LDCs with 15 set for graduation; among them are Bangladesh, Cambodia, Djibouti, Lao PDR, Myanmar, Nepal, Rwanda, Senegal, Solomon Islands,Tanzania,and Uganda who are WTO members. Comoros and Sao Tome and Principe are undergoing WTO accession processes while Kiribati and Tuvalu remain outside this framework.
For more details about these discussions or related documents such as the Ministerial Decision on LDC graduation or experience-sharing sessions information can be accessed through relevant links provided by WTO resources online.