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“Graduation from the LDC category is an important sign of development progress….This will help the populations of these countries to take advantage of the opportunities opened up by international trade” says Dr Ngozi Okonjo-Iweala
Ph:DR: “Graduation from the LDC category is an important sign of progress in development says Dr Ngozi Iweala Okonjo
According to a publication from the World Trade Organization (WTO), October 23 2023, the General Council took a major step forward in global efforts to help graduating Least Developed Countries (LDCs) by adopting a decision on the extension of support measures for countries that have started the process of graduation from the LDC category. The decision was taken as part of the WTO’s October 23-24 senior officials meeting focused on preparations for the Organization’s Thirteenth Ministerial Conference, which unroll in Abu Dhabi in the United Arab Emirates from 26 to 29 in February 2024.
Graduation from the LDC category refers to when an LDC meets certain development criteria established by the United Nations and, therefore, is no longer defined as PMA. THE Most vulnerable members of the international community as LDCs receive special treatment at the WTO, such as expanded market access opportunities and flexibilities in adopting WTO rules.
The decision encourages WTO Members that remove countries from their duty-free and quota-free programs when these countries are graduated from the list of LDCs to provide them with a smooth and sustainable transition period for the withdrawal of these countries preferences after removal from the list. It constitutes an important contribution to the implementation of the Doha Agenda for Action for LDCs for the decade 2022-2031.
Welcoming this decision, the Director-General, Ngozi Okonjo-Iweala said: “Graduation from the LDC category is an important sign of development progress. Today, WTO Members reaffirmed their commitment to facilitating this change for graduating LDCs, so that these countries do not lose any of the economic growth and development momentum that has given them launched on the path to radiation. This decision is an important step in addressing the unique challenges faced by graduating LDCs and will help their populations take advantage of opportunities offered by international trade. It is also another welcome testimony that all WTO Members are responding to the priorities of LDCs.”
Appreciation of managers at various levels
The Chairperson of the General Council, Ambassador Athaliah Lesiba Molokomme (Botswana), said: “I would like to congratulate all Members, especially the LDCs, on this successful outcome. Furthermore, I thank all Members, as well as the current Coordinator of the LDC Group, the people who have held this position in the past and the LDC Group Focal Point responsible for the graduation of LDCs, for the energy that they spent lavishly and pragmatism to resolve this issue. This achievement is commendable and exemplary and I hope that it will give a positive impetus to the work and discussions that await us today and tomorrow.”
Ambassador Kadra Ahmed Hassan (Djibouti), Coordinator of the LDC Group, said the decision will give “some guarantees and some confidence to our Members who are in the process of graduating from the LDC category and becoming more integrated into the trading system.” She added: “Moreover, we hope that we will be able to replicate and match the result that we are about to produce through this decision on LDCs, so that we can negotiate and not wait for the Conferences ministerial meetings to conclude agreements.”
Graduation from LDC status represents an important step on the path to their development, but LDCs have highlighted the difficulties they face in trying to integrate the global economy while international support measures are phased out. .
Over the past three years, the WTO LDC Group its attaché to develop a smooth transition mechanism at the WTO, so as to extend the preferences and provisions granted to LDCs in the WTO Agreements after their graduation from the LDC category. Discussions are underway within the framework of LDC Subcommittee of the WTO on other elements of LDCs’ requests for special and differential treatment.
“Graduation from the LDC category is a key priority for the WTO LDC Group. This decision provides greater predictability and certainty for countries being reclassified and further integrated into the multilateral trading system.” a declare the Coordinator of the LDC Group.
There are currently 46 LDCs, 16 of which are at different stages of the reclassification process. Of these, 10 are WTO Members (Angola, Bangladesh, Cambodia, Djibouti, Lao People’s Democratic Republic, Myanmar, Nepal, Solomon Islands, Senegal and Zambia), and 4 are currently negotiating their accession to the Organization (Bhutan , Comoros, Sao Tome and Principe and Timor-Leste). The other two LDCs in the process of graduating are Kiribati and Tuvalu. THE Doha Agenda for Action for LDCs predicts that 15 more LDCs will meet the criteria for graduation by the end of the decade.
