TRADE AND DEVELOPMENT

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Special and differential treatment for developing countries and LDCs

The Committee considered the WTO Secretariat's latest paper on special and differential provisions for developing countries, which indicates that a total of 155 such provisions are contained in WTO agreements. These include flexibilities, such as longer transition periods to implement WTO agreements or higher import tariffs. The aim is to help developing countries increase trade opportunities and safeguard their trade interests. The Secretariat paper contains updated information on how the provisions in WTO agreements and decisions are being implemented.

The chair of the Sub-Committee on LDCs, Ambassador Monique Van Daalen of the Netherlands, said that recent data point to COVID-19's severe impact on LDCs due to their weak health care systems, economic vulnerabilities and lack of financial resources. WTO members continue to highlight the importance of facilitating trade in medical supplies and essential goods and to express their determination to help LDCs recover from the crisis, she said. The Sub-Committee will monitor the new global Programme of Action for LDCs, which is expected to be adopted at the Fifth United Nations Conference on LDCs due to take place in Doha, Qatar, in January 2022. The Istanbul Programme of Action for LDCs ended in 2020.

Chad said, on behalf of the LDC Group, that dependence on their trading partners' economic wealth, a weak level of industrialization and lack of diversification are undermining LDCs' integration into the global trading system and their economic recovery from the COVID-19 crisis. Technology transfer and enhanced market access could help LDCs boost their resilience to future shocks and build a robust economy. WTO accession also features among their priorities, Chad said. Eight LDCs are currently in the accession process.

The WTO's Institute for Training and Technical Cooperation presented a new online portal which allows users to apply for trade-related technical assistance and training activities. The courses are designed to help government officials and others, such as parliamentarians, from developing countries, strengthen their understanding of trade-related issues. The online tool is available via the WTO's Technical Assistance Management System, which contains information on the audience for each activity and eligible candidates.

The International Trade Centre presented initiatives aimed at helping developing countries mitigate the impact of the COVID-19 pandemic. This includes She Trades, market analysis tools and trade facilitation projects to help women, young people and micro, small and medium-sized enterprises connect to global markets, including to global value chains. Africa is receiving support for implementing the African Continental Free Trade Area. Fostering environmental protection, promoting development and an inclusive economy, and correcting trade imbalances are some of ITC's objectives.

Ambassador Dr Muhammad Mujtaba Piracha of Pakistan was elected as the Committee's new chairperson.

UK preferential market access to developing countries

At a session dedicated to preferential trade arrangements, the United Kingdom said that 70 developing countries and LDCs can enter its market under preferential conditions, in accordance with its “Generalized System of Preferences” scheme, which entered into force on 1 January. For LDCs, market access is duty-free and quota-free (except for arms and ammunition). The document can be consulted here.

The UK's preferential scheme broadly replicates the market access available to developing countries under the European Union's scheme. “Targeted trade assistance linked to stable and predictable rules allows for cross border trade to transform economies, unlock growth and reduce poverty”, the UK said. “We believe that the UK's scheme will help these eligible countries to trade more and have a positive impact on their economies.” The UK's scheme will continue to apply once a country is no longer classified as an LDC or a low/lower middle-income country for a period of three years.

Developed countries are authorized to grant preferential conditions to imports from developing countries through non-reciprocal preferential schemes under the WTO's Enabling Clause, in particular the Generalized System of Preferences. Information on the Generalized System of Preferences schemes and other non-reciprocal preferential schemes of WTO members can be found in the WTO's Database on Preferential Trade Arrangements.

Revised trade agreement between India and Nepal

Regional trade agreements among developing countries were reviewed at a session also held on 29 March.

Under consideration was the revised Treaty of Trade between India and Nepal, which came into force in October 2009. India is Nepal's largest trading partner both in terms of import and export of goods and covered about 62.2 per cent of Nepal’s total trade for 2019 and 2020. Nepal is India's second largest trading partner in South Asia and one of the top 10 export destinations of Indian goods globally.

The revised treaty aims to facilitate, expand and diversify trade among the parties in a more transparent and predictable manner. It provides for simplifying, standardizing and harmonizing customs, transport and other related procedures and developing border infrastructure. Each country's goods are treated in a similar way to the goods produced domestically under the treaty, mirroring the WTO's “National Treatment principle”. The accord also provides for India to assist Nepal in increasing its capacity to trade. This includes by improving technical standards, quarantine and testing facilities and human resources.

A reminder was made for members to notify all accords, in accordance with the WTO's Transparency Mechanism for Regional Trade Agreements. Although deviating from the WTO principle of non-discrimination, these agreements are allowed under WTO rules to help developing countries meet their development objectives and further integrate into the global economy. The consideration is based on a factual presentation prepared by the WTO Secretariat and questions and replies between WTO members.

The full list of notified regional trade agreements between WTO members can be found here.

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