TRADE AND DEVELOPMENT

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Developing countries and COVID-19

In a communication submitted in September, the United States outlined its support to developing countries in their efforts to respond to COVID-19 and to mitigate the effects of future crises. This includes supporting vaccine access and assisting micro, small, and medium-sized enterprises (MSMEs) in dealing with trade barriers and regulations. The Development Committee chair, Ambassador Usha Chandnee Dwarka-Canabady of Mauritius, welcomed the US submission and encouraged other WTO members to submit communications. 

The United States said the objective is to use the Committee on Trade and Development to better understand how development partnerships can respond to developing countries' needs, to better support governments' trade policy outcomes, to improve people's welfare and to raise living standards.

Out of a total of USD 231 million contributed by the United States to help developing countries across the world respond to COVID-19, the US invested over USD 76 million to help MSMEs recover from the crisis through skills training and innovation. WTO members heard in particular about the US experience in responding to the COVID-19 pandemic in Angola, Senegal and Zambia through its Agency for International Development (USAID).

The US communication builds on the ministerial declaration adopted at the 12th Ministerial Conference (MC12) on the WTO response to the COVID-19 pandemic and preparedness for future pandemics.

The United Kingdom announced that it has committed GBP 2.1 billion to support global efforts to mitigate the impact of the pandemic, including by distributing vaccines equitably. The European Union said it has shared almost 500 million doses of vaccines, nearly 420 million of which were distributed through COVAX. Japan said it is supporting 77 countries in cold chain development to strengthen vaccinations and has contributed USD 100 million to revitalize economies in the Indo-Pacific region.

Since the outbreak of the pandemic, China said it has shared prevention and treatment plans with over 180 countries and international organizations. It has provided 2.2 billion doses of vaccines to over 120 countries and international organizations and donated anti-pandemic materials to 153 countries and 15 international organizations.  

Several developing countries called for the use of WTO tools to help developing countries and least-developed countries overcome difficulties related to economic diversification, economies of scale and industrialization, improve productive capacities and increase their share of world exports.

Participation of developing countries in electronic commerce

WTO members continued discussing a paper entitled “Global Electronic Commerce for Inclusive Development” tabled by India and South Africa in November 2021. More information on the paper can be found here.

The discussion follows the decision that ministers adopted at MC12 on 17 June to reinvigorate the development aspect of the Work Programme on Electronic Commerce. The decision also extends the current practice of not imposing customs duties on electronic transmissions until the 13th Ministerial Conference.(1)

Capacity-building activities for developing countries

The WTO's Institute for Training and Technical Cooperation said face-to-face training activities resumed in 2022. Although the number of new requests for activities remains below pre-pandemic levels — 56 since March — it is on the rise compared to the first quarter of 2021. Information on the latest course concluded in Geneva can be found here.

The Committee was informed about the 17 new academic chairs welcomed under the third phase of the Chairs Programme, which now consists of a total of 36 universities. An independent evaluation at the conclusion of the last cycle found that WTO Chairs successfully generated high-quality research and recommendations that translated into policy action in beneficiary countries.

Ambassador Dwarka-Canabady reported that three key recommendations from the evaluation had been implemented. First, the programme now includes seven LDCs, with five of them added in the third phase. Second, it is now more integrated with other WTO technical assistance and research activities. Third, the programme has boosted its presence in previously under-represented areas across Africa, Asia and Latin America, with each of these regions currently making up almost a third of all Chairs.

The new phase of the Programme held its first in-person annual conference in July, featuring discussions on sustainable trade, MC12 outcomes and research priorities, among other things, and enhancing coordination between Chairs and WTO members.

Reporting on its latest Joint Advisory Group meeting held in September and chaired by Ambassador Chandnee Dwarka-Canabady, the International Trade Centre (ITC) said it has continued to help small businesses on the ground access and produce goods and services, surpassing its targets for 2021 despite the challenging global context. ITC helped over 25,000 MSMEs in developing countries improve their competitiveness and connected 3 million women to international markets. Its trade intelligence tools have over 10 million active users.

ITC is a joint agency of the United Nations Conference on Trade and Development and the WTO, dealing with business aspects of trade development.

Regional trade agreements and preferential trade arrangements

At a meeting of the Committee on Trade and Development's Dedicated Session on Regional Trade Agreements held on 17 November, WTO members took note of the notification of the Comprehensive Economic Partnership Agreement between India and the United Arab Emirates.

The Committee also considered the Free Trade Agreement between the Gulf Cooperation Council member states and Singapore and the accession by the Seychelles to the Common Market for Eastern and Southern Africa (COMESA).

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

A notification of modifications to the Generalized System of Preferences (GSP) scheme of Japan was presented at the Committee's Dedicated Session on Preferential Trade Arrangements also held on 17 November.

WTO rules allow developed countries to grant preferential conditions to imports from developing countries through non-reciprocal preferential schemes. Information on the Generalized System of Preferences schemes and other non-reciprocal preferential schemes of WTO members is available here.

Date of the next meeting

The next meeting of the Committee is scheduled for March 2023.

  • WTO members will hold consultations in the WTO's General Council to decide on the date and venue of the 13th Ministerial Conference.

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