The General Council reached an important milestone on 23 October in the global efforts to assist least-developed countries (LDCs) on the path to graduation from LDC status, adopting a decision on the extension of support measures for graduating countries.
The decision was taken as senior officials gather at the WTO on 23 and 24 October for a meeting aimed at making preparations for the 13th WTO Ministerial Conference, scheduled for February 2024 in Abu Dhabi.
LDC graduation refers to the point when an LDC meets certain United Nations (UN) development criteria and is no longer defined as an LDC. As the most vulnerable members of the international community, LDCs are accorded special treatment at the WTO, such as enhanced market access opportunities and flexibilities in adopting WTO rules.
The decision encourages WTO members that remove countries from their duty-free and quota-free preference programmes upon graduation from the UN LDC list to provide a smooth and sustainable transition period for the withdrawal of these preferences after graduation. It marks an important contribution to the implementation of the Doha Programme of Action for LDCs for the period 2022-2031.
Welcoming this achievement, Director-General Ngozi Okonjo-Iweala said: “LDC graduation is an important sign of development progress. Today, WTO members reaffirmed their commitment to helping smooth this process for graduating LDCs to prevent any loss of the economic growth and development momentum that had propelled them to graduation. This decision is a significant step towards addressing the particular challenges graduating LDCs face, and will help people from these countries tap into the opportunities that international trade brings. It also is another welcome sign that the wider WTO membership is responding to LDC priorities.”
The chair of the General Council, Ambassador Athaliah Lesiba Molokomme of Botswana, said: “I would like to congratulate all members, in particular the LDCs, on this successful outcome. Let me also express my appreciation to all members, as well as the current and former LDC Group Coordinators and the Focal Point for LDC Graduation, for their tireless efforts and pragmatism to bring this issue to a close. This is commendable and inspiring, and hopefully puts the work and discussions that lie ahead of us, today and tomorrow, on a positive trajectory.”
Ambassador Kadra Ahmed Hassan of Djibouti, Coordinator of the WTO Group of LDCs, said that the decision will provide “some measure of predictability and trust for those of our members on the road to graduation and further integrating into the trading system.” She added: “We also hope that we will be able to replicate and emulate what we are about to do with this decision on LDCs to negotiate and to not wait for Ministerial Conferences to have agreements.”
