WTO committee reviews member proposals aimed at supporting developing economies

WTO committee reviews member proposals aimed at supporting developing economies
Trade
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Ngozi Okonjo-Iweala Director-General of the World Trade Organization | Official Website

A recent meeting at the World Trade Organization (WTO) Development Week focused on new submissions from members and ongoing trade trends, with an emphasis on support for developing economies and least developed countries (LDCs).

Japan introduced a proposal addressing the gap between domestic trade policies and WTO rules. The proposal aims to help developing economies and LDCs better integrate into global trade and value chains. China submitted two proposals centered on development aspects of carbon standards and strengthening the multilateral trading system.

China also updated members about its China-Africa Economic Partnership for a Shared Future initiative, which will extend zero-tariff treatment to all tariff lines for 53 African countries. Additionally, China mentioned an upcoming notification concerning an Early-Harvest Arrangement with Congo.

Members welcomed the Secretariat's analysis of special and differential treatment provisions as "a useful basis for continued work to enhance understanding of the use of available flexibilities in WTO agreements." They also appreciated the latest biennial note regarding developing economies' participation in global trade.

The biennial note revealed that developing economies increased their share in world merchandise exports to 47% in 2024, up from 46% in 2022. However, their share of commercial services exports remained steady at 33%. Many developing economies continue to encounter difficulties diversifying away from primary export destinations despite progress in accessing new markets.

Other topics discussed included the report from the Joint Advisory Group of the International Trade Centre, notifications under the Enabling Clause, updates on technical assistance, annual reviews related to market access for LDCs, and a draft report by the Committee on Trade and Development (CTD).

During dedicated sessions, members took note of three new notifications regarding Preferential Trade Arrangements: Japan’s extension of its Generalized System of Preferences (GSP) for graduating LDCs by three years, as well as notifications from China and Russia. The European Union reported higher utilization rates within its GSP scheme.

At another session focused on small economies, members reviewed a Secretariat note about trade’s relationship with climate change. Participants highlighted that small economies face specific challenges such as vulnerability to climate change impacts, limited domestic markets, lack of scale advantages, and geographic remoteness.

On November 17th, at a meeting of the WTO Sub-Committee on LDCs, participants reviewed trends in LDC trade and ways to aid recently acceded LDCs’ integration into global commerce. While exports from LDCs grew annually by 6.7% between 2019–2024, their share in world exports stayed around 1%. Members agreed more needs to be done to boost these countries’ export capacities so they can benefit more fully from emerging opportunities.

Ambassador Antonio da Conceição (Timor-Leste) and Economic Advisor Ahmed Mzé (Comoros) shared experiences incorporating WTO rules domestically after accession. Both highlighted regulatory reforms achieved but pointed out continuing challenges with post-accession commitments.

Representatives from the World Bank and International Trade Centre provided examples of support given during accession processes—such as improving business environments or strengthening infrastructure—and noted available technical assistance activities offered by the WTO Secretariat across several sectors including agriculture and trade facilitation. The benefits for LDCs joining agreements like Government Procurement Agreement—which opens access to procurement markets valued at roughly USD 1.7 trillion—were also discussed.

In discussions about Aid for Trade programs held November 20th:

- The World Bank reported disbursing USD 74 billion between 2021–2023 through various initiatives including its Trade Facilitation Support Program.

- The African Development Bank described efforts supporting regional free trade through strategies like "Integrate Africa" and reported mobilizing USD 100 million via its Africa Competitiveness and Trade Fund.

- The European Bank for Reconstruction and Development outlined expansion into Sub-Saharan Africa under its forthcoming strategy.

- The Inter-American Development Bank emphasized reforms in agriculture, knowledge-based services support, investment promotion tools.

Updates were provided about other international efforts such as EU’s Global Gateway initiative or technical cooperation between China-Africa partners in agriculture. Outcomes from July’s Global SME Ministerial Meeting were also reviewed.

A draft ministerial decision proposed by Australia and Barbados stressed ongoing commitment to Aid for Trade partnerships: "The proposal stresses the need to support developing members in implementing trade rules and building trade-related capacity. It also recognizes the importance of robust monitoring and evaluation and calls for improving awareness of multilateral technical assistance and capacity building programmes."

Australia along with organizations such as Cambodia's EIF program or Standards & Trade Development Facility shared experiences using monitoring frameworks like key performance indicators (KPIs) or ensuring political engagement throughout projects.

TradeMark Africa cited improved logistics due to strong institutional partnerships—including a notable reduction in transit times within Tanzania—as evidence that collaboration yields tangible results: "TradeMark Africa underscored the role of strong partnerships, institutions and political will, reporting major logistical gains, including a 40% reduction in transit time between Dar es Salaam and Tunduma, Tanzania."

Innovations related to sanitary measures were showcased by STDF while national representatives emphasized how systematic monitoring improves assessment outcomes; Australia’s approach includes co-designing programs with stakeholders plus transparent reporting practices.

Finally, efforts measuring South-South financial flows were discussed under Total Official Support for Sustainable Development (TOSSD), highlighting mechanisms allowing recipient countries data verification.