Latest news Latest news

Return to Full Page

LDCs push for reform of preferential Rules of Origin

LDCs have advocated more effective preferential Rules of Origin at the meeting of the WTO committee on Rules of Origin on 30 October. The existing rules are often not adjusted to new economic realities, inhibiting optimal use of the preferential market access granted to LDCs. Not only are the Rules of Origin too restrictive and do they entail burdensome compliance procedures, they are also not adapted to the changing international trading environment.  The fact that preferential margins have eroded over time and that the costs to comply with the rules have increased, add to the argument that a revision is needed. In addition, rules are unilaterally designed, entailing that each...

Canada to reinstate preferential tariffs for Myanmar

Canada proposes to lift the trade sanctions imposed on Myanmar in 1997. The sanctions were part of a global concerted response to the human rights situation in the country. As a result, imports from Myanmar could no longer benefit from preferential import schemes. Over the last years however, the situation has changed; elections were held in 2010, political prisoners were released and new laws were issued protecting the freedom of association and assembly. In light of these events, Canada decided to reinstate the preferential market access schemes for Myanmar: the General Preferential Tariff and the Least Developed Country Tariff.   Sources: Canada Gazette Just-style ...

Workshop - CBA Training 21 November 2014

On Friday 21 November a cost-benefit analysis training will be given to participants in the workshop on building institutional capacity in the use of trade-related international support measures. The training will focus on the implementation of surveys for data collection, data processing and data analsysis. The training material can be accessed here .

UNCTAD helps Angola in preparing trade policy framework

A joint UNCTAD-Government of Angola consultative workshop was held on 29 and 30 September 2014, in Luanda, Angola, in the preparation of country’s comprehensive trade policy framework.  Angola's trade policy, Economic Transformation Program, will be an input to the government's vision of diversifying the nation's economy (which is now almost entirely dependent on trade in oil and diamonds) into agriculture, fisheries, manufacturing and services, in view of its preparation for graduation from the LDC category. The draft trade policy framework, prepared by UNCTAD, encompasses an analysis of trade performance, trade policy measures and options, and other complementary measures,...

Asia-Pacific LDCs meet in Dhaka to discuss graduation gaps

Twelve Asia-Pacific LDCs are meeting at a regional conference in Dhaka to discuss which econo mic sectors can play a key role in their economic development. Other items on the agenda are the financial deficit of the countries and means to attract domestic and international investors. The overarching aim is to find ways to ‘finance graduation gaps’. This relates to the gradation-target that the LDCs have set in the IPoA: at least 50 % of the LDC group meets the graduation criteria by the end of the decade. In order to reach this goal, acceleration in the area of economic development is required. The meeting is organized by the Economic Relations Division of Bangladesh, in cooperation...

OECD finds slowing ODA growth in LDCs

The Chair of the DAC of OECD published the Development Co-operation Report 2014 : Mobilising Resources for Sustainable Development , on 7 October 2014.  It provides an overview of the financial sources available to developing countries and proposes recommendations on how to mobilise further resources. It also explores how to mobilise resources to finance the provision of global public goods, such as stable climate, peace and security, and a fair and equal trading system. The report finds that “ODA growth is slowing in those countries which need it most – fragile states and least developed countries” and recommends to monitor more attentively the target of allocating...

Bangladesh receives assistance from Canada to enhance DFQF benefits

Canada offers an extended assistance package to Bangladesh, in order to optimise the use of the beneficial market access the latter receives under the Duty-Free Quota-Free market access scheme. Since 2003, nearly all products from LDCs are exempted from import taxes and quotas when entering the Canadian market. The package includes trade facilitation assistance to increase Bangladesh’s exports to Canada; web-based market access services, matchmaking with Canadian importers, outreach and promotion activities for trade representatives, market-entry studies for priority country exporters, a trade-development facility to provide technical assistance and training for Bangladeshi trade...

World Bank Group and WTO team up to enable Trade Facilitation

The World Bank Group and the WTO have decided to increase their collaboration in the context of the Trade Facilitation Agreement Facility. The establishment of the Facility is an initiative from the WTO to help developing countries with the implementation of the Trade Facilitation Agreement. This agreement was concluded in December last year, during the WTO Ministerial Conference in Bali. The Facility aims to provide a safety net for those countries that cannot find the necessary support in the donor community to implement the Trade Facilitation Agreement. The World Bank and the WTO will work together to identify sources of funding and support. The World Bank Group is the largest...

Lesotho and Rwanda among the ten most competitive economies in Sub-Saharan Africa

Two LDCs feature in the top ten list of most competitive Sub Saharan economies: Rwanda and Lesotho. This list is published in the Global Competitiveness Report of the World Economic Forum. The study takes into account twelve measures that influence competitiveness: institutions, infrastructure, macroeconomic environment, higher education and training, goods market efficiency, labour market efficiency, financial market development, technological readiness, market size, business sophistication and innovation. Rwanda occupies the third place. Key factors there are their relatively strong institutions and an efficient goods market and labour market. Lesotho just makes it into the top...

Nepal determined to leave the LDC group in 2022

The Minister of Finance, Mr. Ram Sharan Mahat, announced that strategies to facilitate the migration from the LDC group will be part of the next periodical plan, a three-year strategic roadmap that guides Nepalese policies. The strategies will focus on infrastructure projects dealing with transport connectivity and power. These two elements are the main challenges that Nepal has to address, if the country wishes to meet the criteria to leave the LDC group. Besides infrastructure works, capital expenditure should be accelerated in order to attain a sufficient level in economic growth. Last year, 3.3 % of GDP was spent on capital investment, while it needs to be 8 to 12 % for the...

Yemen becomes 160th member of WTO

On June 26 2014, Yemen joined the WTO, after 13 years of negotiating. The country applied for membership in April 2000. The accession was approved by the trade ministers of the member states during the Bali conference in December. With this decision, 97.1 % of the global economy is covered by the WTO’s rules. Yemen is the sixth LDC to join the multilateral trade organization since the WTO was established in 1995. It was preceded by Cambodia (2004), Nepal (2004), Samoa (2012), Vanuatu (2012) and Lao People's Democratic Republic (2013). To become a member, Yemen had to get its legislation in line with the WTO rules on items such as rules of origin, preshipment inspection,...

Pakistan set to offer SAARC LDCs duty free market access

Pakistan is committed to grant LDCs that are member of the SAARC duty-free market access for almost all products. Pakistan uses a sensitive list to exclude products from reductions in duties for its fellow SAARC members. This list will be reviewed for the LDCs, keeping only a few sensitive products on the list to protect the local industry. Pakistan has already reduced the list for all SAARC countries, removing 233 items. The LDCs (and graduated LDCs) that might benefit from this improved market access are Bangladesh, Bhutan, Maldives, Nepal and Afghanistan. Source: Dawn

Bangladesh and Turkey about to start trade negotiations to establish FTA

Later this month, a delegation from Bangladesh will travel to Ankara to initiate trade negotiations with Turkey. The objective of these trade talks is to conclude a Free Trade Agreement, addressing the drop in export of Bangladesh’s apparel to Turkey. Higher import duties, imposed by Turkey in 2012, have led to a significant decrease in export from Bangladesh. The countries already agreed to establish an FTA in the spring of 2012, when the levies were about to be implemented. Before these new levies were put into place, LDCs received a duty free market access for apparel, in line with Turkey’s DFQF scheme. In the fiscal year 2013-2014, Bangladesh exported about 856 million USD worth...

LDCs act upon Bali agreement and submit a request on the services waiver

LDCs have submitted a collective request for preferential market access for their services and service-suppliers. This relates to the 2011 Hong Kong declaration, allowing WTO members to deviate from the Most-Favored Nation principle in order to grant LDCs a more advantageous market access in services. At the Bali conference last December, it was decided to breathe life into this until then unheeded services waiver. The Bali agreement stipulates that once the request for a special and different treatment in services has been made, the Council for Trade in Services has six months to set up a high-level meeting. During that meeting, an answer will be formulated; WTO members will...

UNDESA discusses LDC graduation in the margins of the LDC conference in Benin

On 28-31 July 2014, the ministerial meeting on new partnerships for productive capacity building in the Least Developed Countries takes place. On the website of the UN High representative for LDCs, LLDC and SIDS you can find detailed information about the conference and the conference agenda. One of the side events organized during this conference is a UNDESA discussion session, where the likelihood of 24 LDCs graduating from the category by 2020 will be debated. This was one of the objectives of the IPoA.  Mr. Hiroshi Kawamura (CDP Secretariat, UN/DESA) will give a presentation and Mr. Alassane Drabo (FERDI) is discussant. More information: UNOHRLLS , UNDESA event

WTO and other international organizations promise assistance to LDCs for the implementation of the trade facilitation agreement

The WTO, ITC, OECD, UNCTAD, UNECE, World Bank and WCO have declared that they will give LDCs  Trade facilitation-related technical assistance and capacity building support. The trade Facilitation Agreement Facility, as the WTO initiative is called, will aid in the implementation of the Trade Facilitation Agreement (TFA) that was concluded during the Bali Ministerial Conference in December. The agreement links the implementation of its provisions to the capacity of the signatory parties, and includes a commitment to assist countries that need assistance for the implementation. Once the protocol to insert the TFA into the existing regulatory framework is adopted, the Facility will...

LDC imports push Italian rice out of the market

Rice imports from LDCs into the EU are taking over Italy’s share in the market, says the Italy Farmers Union. Rice from countries such as Cambodia and Myanmar have become more competitive than Italian rice through the Everything But Arms regime. While Italian rice is sold at ±646 euros a ton, Cambodia sells its rice for ±438 euros a ton. The EBA regime provides a DFQF market access to all imports from LDCs (except for arms-related goods), including rice since the expiry of the transition period in 2009. The farmers Union has sent a report to the EU addressing this issue, and want the EU to reestablish duties on rice imports from LDCs or adopt a safeguard clause. They claim that the...

Lessons from previously acceded countries in becoming a WTO member

Analysing previous accessions to the WTO, Derk Bienen provides lessons for LDCs when applying for membership to the WTO. First he discusses the duration of the process, concluding that WTO accession does not happen overnight. The process takes, on average, 13.4 years for LDCs and actual negotiating time is 10.0 years. Key negotiation issues, market access and rules and disciplines are also examined. Procedural challenges are listed, together with possible responses to mitigate some of these challenges and existing facilitation measures to support LDCs in overcoming these challenges. In a second part, the terms of accessions are examined; focussing on commitments in trade in goods, trade...

Analyzing the Bali package from an LDC perspective

In an article assessing the meaning of the Bali-package, Christophe Bellmann analyzes the agreement from an LDC perspective. Contrary to what the name suggests, not the LDC-package but the trade facilitation agreement is probably the most important part for LDCs. Especially intra-regional trade might increase significantly due to simplified customs procedures. The implementation of the trade facilitation agreement will not be a walk in the park, but build-in flexibilities and technical assistance can help in overcoming the most difficult stumbling blocks. However, whether the agreement will entail real benefits depends on the political will of member states to fully implement the...

Upcoming Ministerial Conference on Productive Capacities in LDCs

  O n 28-31 July 2014, a Ministerial Conference on New Partnerships for the Development of Productive Capacities in LDCs takes place in Cotonou, Benin. The meeting will make policy recommendations on leveraging development partnerships , including through enhancing contribution of ODA, South-South cooperation, remittance earnings, FDI and other traditional forms of external finance. These recommendations are also expected to feed into the discussions on the Sustainable Development Goals (SDGs) and the post-2015 development agenda. More info: http://unohrlls.org/ministerial-conference-2014-benin/