Trade Impacts of LDC Graduation

The report finds that the impact of graduation will vary for each LDC depending on factors such as export structure, use of preferential treatment and its terms of entry into the WTO. It sheds light on potential support measures that graduating LDCs can explore, in cooperation with their trading partners and the broader international development community, in order to achieve sustainable graduation. Trade remains key to helping these countries increase incomes and maintain growth.

A quarter of LDCs were on track to graduate from LDC status prior to the outbreak of the COVID-19 pandemic.

A companion volume entitled “Trade Impacts of LDC Graduation: Insights from country-specific market access analyses” examines in greater detail the impact of graduation on preferential market access for each of the 12 graduating LDCs. The report looks at the export structure of graduating LDCs, the likely increase in tariffs on their exported products and projected changes in trade flows.

Co-published in 2020 by the World Trade Organization and the Enhanced Integrated Framework.

A pocket edition, issued in 2022, summarizes the implications of LDC graduation on  matters related to WTO rules. It reviews the most pertinent provisions in WTO agreements and how graduation can affect LDCs’ participation in the WTO. It  highlights that the impact of graduation will largely depend on the extent the graduating LDCs have been using WTO flexibilities, which can address some of the challenges that could result from graduation from LDC status. A range of technical assistance is also available to help graduating LDCs adjust to WTO rules.