RESTRICTEDWORLD TRADE
ORGANIZATIONWT/COMTD/LDC/W/11/Rev.1*
14 December 1998
(98-5031)
Sub-Committee on Least-Developed Countries
MARKET ACCESS FOR EXPORTS OF GOODS AND SERVICES OF THE
LEAST-DEVELOPED COUNTRIES:  BARRIERS AND CONSTRAINTS
Note by the Secretariat
Revision
1. This Note has been prepared at the request of the Sub-Committee on Least-Developed
Countries as background material for its discussions on market access problems of least-developed
countries (LDCs).  It updates and expands on WT/LDC/HL/14,1 prepared for the High-Level
Meeting (HLM) in October 1997, which focused principally on tariff and non-tariff barriers facingLDCs' merchandise exports.  The Note complements WT/LDC/HL/14 by including commitments
made and information provided on improvements on market access for LDCs since the HLM;
expanding on the discussion in WT/LDC/HL/14 of non-tariff measures;  and including elements
relating to trade in services.  Furthermore, to the extent that LDCs have identified such problems, this
Note also highlights capacity limitations and other supply-side obstacles to trade expansion that mayinhibit LDCs from utilising market access opportunities.  In this regard, valuable information was
drawn from the responses to questions, including on market access restrictions, provided by LDCs in
the questionnaire circulated preparatory to the HLM.  These responses are summarized in Annex 1 to
this Note.
I. INTRODUCTION
2. Market access is an essential condition for the trade growth and development of LDCs.  To a
large extent, market access is determined by the range of tariff and non-tariff barriers in foreign
markets.  However, LDCs' capacity to use market access opportunities available to them is also
strongly affected by, and linked to, domestic supply-side and policy constraints. In this regard, LDCs,
in their responses to the questionnaire, have frequently connected market access barriers they
experience with domestic obstacles to their trade expansion and to structural impediments they face inachieving productive efficiency and competitiveness.
3. In order for LDCs to use effectively market access conditions available to them, a number of
supply-side conditions are therefore also necessary.  First is the consistent implementation of
domestic policy reforms  to create a stable domestic regulatory, competitive, and sound
macroeconomic environment, as an essential precond ition for participating in the multilateral trading
system, either on preferential or competitive terms.  Second is the development of adequate
infrastructure  to ensure efficient delivery of goods and services.  A third condition is the provision of
enhanced and focused technical assistance to address domestic supply constraints and assist LDCs'
transformation into viable trading countries.  A last element would be the importance for LDCs of
participating actively in multilateral trade policy processes (such as the negotiation and formulation of
                                                     
*English only.
1Market Access for Least-Developed Countries.  This document was prepared for the High-Level
Meeting on Integrated Initiatives for Least-Developed Countries Trade Development.  It essentially focused on
barriers to LDCs exports of goods.WT/COMTD/LDC/W/11/Rev.1
Page 2
rules) which will enable them to better use WTO processes.  External market access conditions as
such are, therefore, only one dimension of a complex inter-relationship for the trade development of
LDCs.
II. LDCs' MERCHANDISE EXPORTS:  SHARE OF GLOBAL TRADE, TRADE
DESTINATION AND STRUCTURE OF EXPORT TRADE
4. Trade is a powerful engine of growth.  E xports account for a quarter of world economic
output.  A third of the 25 largest trading countries are developing countries.  In contrast, trade
accounts for a small share of the economic activities in most LDCs and represents a relatively small
percentage of their GDP, even compared to other developing countries.  Whereas in developing
countries, on the average, trade accounts for between 24 per cent to 26 per cent of GDP, in LDCs,
trade accounts for 9 per cent to 16 per cent of GDP.  LDCs' exports have also grown more slowly than
world trade (under 2 per cent as compared to 8 per cent) in the past twenty years, and their share of
global merchandise trade has declined from approximately 0.8 per cent in 1980 to 0.46 per cent
in 1995.2
5. Most LDCs' exports go to 23 main markets, mainly developed countries.  Sixty per cent of
their exports flow to the European Union, Japan and the United States.  Thirty-four per cent of exportsgo to developing country markets, principally Brazil; China; Chinese Taipei; Hong Kong, China;
India; Indonesia; Korea; Malaysia; Si ngapore; South Africa; and Thailand.
6. The structure and composition of LDCs' exports overall show little diversification and have
barely changed in the past two and half decades.  At the 6-digit level of the Harmonized Commodity
Description and Coding System (HS), out of the 5,000 products that are globally traded, LDCs'
exports cover approximately 112 items. Although indi vidual exceptions, such as Bangladesh, Haiti,
Laos, Madagascar and Myanmar,
3 have a relatively diversified export structure, the export base of the
vast majority of LDCs is typically limited to a range of 2 to 3 products.4  Processing is generally
minimal; unprocessed and semi-processed primary commodities and minerals account for about
70 per cent of exports.  Manufactures, essentially textiles and clothing, constitute about 20 per cent ofLDCs' exports and are significant only for a few, such as Bangladesh.
III. NOTIFICATIONS OF IMPROVEMENTS IN MARKET ACCESS PURSUANT TO
THE HIGH-LEVEL MEETING
7. At or since the HLM held on 27-28 October 1997, some market access improvements have
taken place and been notified.  At the HLM, several Members announced new or additional
preferential market access measures for LDCs that they had taken or proposed to take in the future.
5
To date, the European Communities, Switzerland, Canada, Turkey, Egypt, Mauritius and the
United States have notified the details of these measures.  Japan, Canada, Australia, Norway, Hungary
and Bulgaria made statements in the HLM drawing attention to the existing liberal market access
under their present GSP regimes.6
                                                     
2WT/LDC/HL/14.
3OECD, "Market Access for the Least Developed Countries: Where are the Obstacles?"
OECD document, TD/TC(97)19, Paris, 1997.
4 In August 1998, Bangladesh announced a five-year economic plan to increase exports by 13 per cent,
pointing to a new emphasis on computer software, and identifying as other "thrust" export sectors hides, leatherproducts, ready-made garments and agro-processing.
5WT/COMTD/12.
6WT/MIN(98)/2.WT/COMTD/LDC/W/11/Rev.1
Page 3
8. The European Communities  have notified the extension of preferences equivalent to "ACP
treatment" to LDCs non-members of  the Fourth ACP-EC Convention.7  As a result, non-ACP LDCs
now benefit from zero duties on a large number of industrial products that were previously excluded
from the GSP scheme, as well as from new tariff reductions on agricultural products in line with ACP
preferences.  Ninety-nine percent of LDCs expor ts by value now enter the EU market duty-free.
9. Switzerland  notified that, since March 1997, duty-free access for LDCs to the Swiss market
has been offered for all industrial products, as well as for most agricultural products.8  Ninety-eight
per cent of least-developed countries exports now enter the Swiss market duty-free.9
10. Turkey  notified additional preferential tariff rates for imports from LDCs that became
effective from 1 January 1998.  These unilateral preferential rates  - all except one (coffee) given duty
free access - apply to 556 products at the 12 digit level.10
11. The notification by Egypt  identified several market access opportunities.11  These include
tariff reductions, ranging from 10 per cent to 20 per cent of existing duties, for approximately
100 products of export interest to LDCs, to be provided through the GSTP; and duty free access, also
under the GSTP, for approximately 50 products (raw materials) imported into Egypt.  In addition,
Egypt will bind customs duties, with a 10 per cent reduction compared with current market-access
commitments in the Egyptian schedules in the Uruguay Round, for certain industrial productsimported from LDCs;  and will extend 50 per cent rent  reduction for LDCs that desire participation in
Egyptian international trade fairs and exhibitions organized in Egypt.  Furthermore, Egypt will
provide training for a number of trade officials and specialists from LDCs in Egypt, and send trade
experts to LDCs to assist in the  implementation of  trade-related development projects.  Finally, Egypt
will host a seminar, in cooperation with the WTO, UNCTAD and ITC, to examine issues related tothe accession of developing countries, in particular of LDCs, to the WTO.
12. Mauritius notified duty free access for five tariff lines originating from least-developed
countries.
12  The new access terms were given legal effect in September 1998.  The products comprise
certain crustaceans;  guavas, mangoes, mangosteens;  axes and billhooks;  handsaws and files.
13. The United States notified the addition of 1,783 tariff lines to GSP treatment for
least-developed countries as from 30 May 1997, under the GSP Renewal Act of 1996.13
14. Further to Canada's  statement at the HLM on the existing liberal market access conditions
under its present GSP scheme,14 Canada informed Members at the meeting of the Sub-Committee on
Least-Developed Countries on 23 April 1998 that, from 1 January 1998, it moved beyond its
commitments in the Agreement on Textiles and Clothing to integrate textile products and remove
quotas on a number of specific products, as notified to the WTO Textiles Monitoring Body.15
Developing countries, including LDCs, were expected to be the major beneficiaries of the
liberalization.  The removal of quotas should allow those producers to gain a larger share of the
import market than had been possible under the quota system.  Canada was also exploring changes to
                                                     
7WT/COMTD/W/41.
8WT/COMTD/N/7.  (The coverage of the Swiss scheme was also considerably extended to other
developing countries, particularly in the field of agriculture).
9  WT/COMTD/W/44.
10 WT/COMTD/W/39 and Corr.1.
11 WT/COMTD/W/47.
12 WT/COMTD/W/53.
13 WT/COMTD/N/1/Add.2
14 WT/COMTD/12.
15 WT/COMTD/LDC/M/11.WT/COMTD/LDC/W/11/Rev.1
Page 4
its programme of preferential market access for least-developed countries, including expansion of the
duty-free product coverage and liberalization of rules of origin.
15. These autonomous developments are welcome improvements to the overall picture of market
access in favour of LDCs, previously described in detail in document WT/LDC/HL/14 and Add.1.
Overall, the problem posed by tariffs on LDCs' existing structure of exports appears insignificant,
with the continuing exception of sensitive areas such as agriculture and textiles.  The situation
regarding tariffs may be considered positive in many respects; on average, between 80 and 90 per cent
of LDCs' exports enter their major markets duty free and tariff preferences are, in several cases,
underutilised.  More significant difficulties for market access to LDCs' merchandise exports may lie in
areas such as, on the import side, conditions attached to preferences and non-tariff barriers; and, on
the export side, supply constraints and domestic policy weaknesses.
IV. PRINCIPAL BARRIERS TO LDCs' MERCHANDISE EXPORTS
16. In the LDCs' responses on principal barriers to market access for goods and services, it is
notable that market access barriers , as indicated by LDCs themselves, are frequently similar to stated
obstacles to trade expansion (Annex 1).  This relationship raises questions as to whether the principal
difficulties for LDCs are ones of access  or of supply .  It also appears from other studies that the
difficulties are inextricably interconnected, with increasing emphasis on supply constraints.16  Against
this background, factors that impede LDCs' exports may be categorized in two groups, namely,
market access barriers as such and supply-side obstacles to the utilisation of access, as follows:
(i) Market Access Barriers
(a) Tariffs
(b) Non-tariff measures, such as quotas, tariff-rate quotas, product standards, and testing,
certification, packaging and labelling requirements
(c) Conditions attached to preferential schemes
(d) Rules of origin
(e) Conditions applied under regional markets and regional trade agreements (RTAs)(f) Difficulties relating to trade finance (this may be considered as an element on both
access and supply-side)
(g) Lack of information on market access opportunities
(h) Difficulties regarding movement of natural persons
(i) Trade distortions in third markets
(ii) Supply-side Constraints to the Utilization of Market Access
(a) Economic issues such as prices, incentives, interest rates, currency convertibility,
coupled with weak regulatory environment
(b) Infrastructure problems
(c) Difficulties in achieving economies of scale
(d) Skills and other structural factors(e) Institutional issues
(f) Regulatory environment
                                                     
16Preliminary research findings underway in UNCTAD commissioned studies: presentation by
Oyejide T. Ademola, "Africa and the World Trading System:  A note on some preliminary results of anAPERC Project"; and, oral presentation by Mr. A.P. Messerlin, Groupe d'Economie Mondiale onsix francophone economies, at the: Ad Hoc Expert Group of the Secretary-General of UNCTAD: Preparing for
future multilateral negotiations: issues and research needs from a developmental perspective,
21-22 September 1998.WT/COMTD/LDC/W/11/Rev.1
Page 5
(i) Market Access Barriers
(a) Tariffs
17. Tariff escalation may pose difficulties for exports of least-developed countries to the extent
that MFN tariffs are higher on processed than on unprocessed or semi-processed merchandise.  Asnoted above, this may not appear a major problem, given the present export structure of most LDCs
(primarily raw materials and semi-processed goods); approximately 70 per cent of the tariff lines and
between 80 per cent to 90 per cent of the value of present merchandise exports of LDCs have
duty-free access into their main developed country markets, either under bound MFN tariffs or GSP
or other LDC preference schemes.  However, without further MFN reductions or preferential
treatment, processed products may face problems of tariff escalation.  Elimination of such tariff
escalation on present and potential exports could make a positive contribution to LDCs' market accessprospects by encouraging further processing and increased value-added.
18. The tariff situation varies according to products.  Some (for example processed wood,
clothing, footwear, cigarettes, beef and asparagus) face relatively higher tariffs, exceeding 5 per cent,
in developed country markets;  in addition, some (e.g. beef, tropical fruits, black tea, sorghum,
groundnuts, sesame seeds, raw cane sugar, cigarettes, and clothing) also face higher tariffs indeveloping country markets, averaging over 25 per cent.  These products compose about -35 per cent
of LDCs' exports to developing country markets.
17
(b) Non-tariff measures
19. Quantitative restrictions and other non-tariff measures continue to affect the market access of
some merchandise exports of LDCs; while QRs still affect textiles and clothing items to some extent,as well as sugar, others, such as non-automatic import licensing, prior authorization, state trading,
other administrative restrictions, standards and SPS restrictions, eco-labelling requirements, etc. affect
products such as fish and fish products, frozen foods, meat, hides and skins, and leather. Such
non-tariff measures exist not only in developed markets but also in developing countries.  Frequency
ratio analysis has shown that that LDCs exports have a 6.2 per cent probability of non-tariff measurerestriction in developed markets in contrast to a 16.5 per cent probability in developing countries.
18
LDCs have called attention to stringent product quality standards and requirements, including sanitaryand phytosanitary standards, in export markets, and the difficulty for them in attaining and complying
with these standards because of low quality control, management and packaging.
(c) Preferential schemes
20. The functioning of non-reciprocal preferential trade schemes appears to pose various types of
market access problems.  LDCs have indicated that problems are posed by the limited scope of GSPbenefits, the increase in and frequent changes to the (economic and non-trade-related) conditions
attached, and eligibility conditions, and the overall complexity of such schemes (however, see also
Section III above). Apart from the difficulties and confusion caused by frequent un-notified changes
to GSP schemes,
19 even at the very basic level, some LDCs do not have access to information on the
potential benefits and advantages offered by GSP schemes.
                                                     
17Data are drawn from Section  III of WT/LDC/HL/14.
18WT/LDC/HL/14.
19Several developing countries, including LDCs, have emphasised the importance of notifying changes
to preferential schemes.WT/COMTD/LDC/W/11/Rev.1
Page 6
(d) Rules of origin
21. At the multilateral level, the rigorous and non-harmonized application of rules of origin is
seen as having restrictive effects on the market access of LDCs, particularly in textiles, garments and
fisheries.  For instance, unilateral national or regional interpretations regarding "substantial
transformation", in the absence of multilateral rules, has had restrictive market effects equivalent tonon-tariff measures on products of export interest to  LDCs.  It is felt by most LDCs that in the
absence of the completion of the Harmonization Work Programme for non-preferential rules of origin,
pursuant to Article 9 of the WTO Agreement on Rules of Origin, unilateral interpretations and
stringency of application of what constitutes "substantial transformation" are not only unjustified but
also trade restrictive.  Several LDCs also highlight difficulties caused by non-recognition of
cumulative production in rules of origin applied under the GSP.
(e) Regional trade agreements
22. According to the LDCs' statements, four types of difficulties in the functioning of RTAs
appear to inhibit market access for their exports;  particularly in regional agreements to which some of
the LDCs belong.  First, amongst LDCs, in particular those in Africa, policies that diverge from
agreed objectives and protocols, and unharmonized policies in regional markets, continue to have
restrictive effects on exports and on the market access of LDCs.
20  Second, indications from these
countries in respect of some regional markets suggest a high political content in their agenda and less
attention to economic and trade policy.  Third, the performance of these arrangements indicates
insufficient harmonization and lack of implementation of agreed regional policies on the free
movement of persons.
23. In addition, LDCs note the continued existen ce of many border control posts even within
regional trading areas), the existence of "irregular" taxes (tolls), non-tariff restrictions, including
irregular stoppages of goods by "non-standardized" inspectors, the use of non-automatic import
licensing, and the restrictive effects of language difficulties.  The combination of these factors point to
serious problems restricting the free movement of goods, services and natural persons, and which
significantly hinder the access of goods of LDCs to foreign markets, including neighbouringcountries.
21
(f) Trade financing
24. LDCs are unanimous in reference to severe difficulties with trade financing and the
consequent negative effects on their export efforts.  Such trade finance includes credits, insurance
cover, guarantees for exports, and the acceptance to pay risk premiums on investment (including
letters of credit) in LDCs' export industries.  LDCs report an unwillingness by credit insurers,
agencies, and financial intermediaries to underwrite the import of inputs for exporting industries;  and
difficulty with the acceptance of letters of credit from financial institutions in LDCs.  In the absence
of such letters of credit, the import of inputs required for the manufacture of exports becomes
extremely expensive.  Importers are also extremely wary of the viability of local banks. Rates of
interest in financing charged by domestic financial intermediaries on producers are stated to be often
prohibitively high. These limitations on trade finance for LDCs' exports as well as the high interestrates that apply when financing, credit or insurance guarantee cover is secured, make their exports less
competitive.
                                                     
20Difficulties in these areas are suggested by the performance and functioning of the Cross Border
Initiative (CBI);  Common Market for Eastern an d Southern Africa (COMESA);  the East African
Community (EAC);  and the Economic Community of West African States (ECOWAS).
21See the summaries in Table 1 in respect of the submissions by Bangladesh, Burkina Faso, Burundi,
Mali, Tanzania, Togo, Uganda, Zambia.WT/COMTD/LDC/W/11/Rev.1
Page 7
(g) Information and communication
25. A dearth of information on trading opportunities in foreign markets, and limited access to
modern communications, including Information Technology (IT) also constrain LDCs' export
possibilities.  Difficulties with information range from the lack of general market information to lack
of expertise and sources of information on specific product-related issues;  this inhibits LDCs'capacity to promote exports.  Lack of resources to maintain trade representation abroad adds to this
difficulty.
(h) Movement of natural persons
26. Constraints on the movement of entrepreneurs and traders with wares for export are cited as a
market access restriction of significance by several LDCs including Guinea, Burundi and Uganda.
Movement of natural persons - beyond the movement of high-level and staff and specialists schedules
under the GATS - is considered by many countries (both developed and developing) as less of a tradematter and more of an immigration issue.
(i) Trade distortions in third markets
27. According to the LDCs' submissions, trade distortions have affected exports of goods,
particularly in the agricultural and fisheries sectors.  Subsidies granted to agricultural producers in
foreign markets have depressed world commodity prices and afforded foreign producers an unfaircompetitive edge over LDCs;  in the fisheries sector, subsidies are seen as having protected inefficient
fishing fleets and creating overcapacity in these fishing fleets with obvious disadvantages for local
LDC fishermen, and which in some cases have wi ped out local competition in LDCs markets. In
addition, the operations of such subsidised fishing fleets are stated to have had undesirable
environmental effects, such as the unsustainable harvesting of fishery resources.
(ii) Supply-side Constraints to the Utilization of Market Access
28. As noted above, the problems of market access and supply-side problems are inter-related and
linked; in assessing barriers and constraints to LDCs' export capacity, access  and supply  appear to be
two sides of the same coin. The separation of the two may thus not be meaningful in the search to
address the principal barriers to the exports of LDCs.  It is indicative that when LDCs are requested to
indicate their market access problems and obstacles to their trade expansion, the responses in the two
areas are similar, if not identical (Annex 1), and that LDCs, in particular from Africa, when
highlighting priority solutions to their principal market access barriers, invariably focus on four
cardinal factors namely, the elimination of tariffs and of non-tariff barriers; human resource
development; and modernization of infrastructure.
(a) Economic issues
29. Sound and stable macroeconomic and microeconomic policies  enhance predictability in the
economic environment, allow for better planning and calculation, and hence promote productive
efficiency.  In some LDCs high fiscal deficits, price instability, inconvertibility of local currency and
exchange rate fluctuations have harmed the economic environment and discouraged investment in
productive capacity; difficulties have also been noted regarding the repatriation of funds from other
countries.
(b) Infrastructure problems
30. Inadequate and obsolete infrastructure  poses enormous systemic problems in the sectors of
roads, transportation and storage systems (air, land and sea), telecommunications and power, and mayWT/COMTD/LDC/W/11/Rev.1
Page 8
effectively prevent the development of production (including the development of processing where
appropriate) and export capacity.  Obsolescence and inadequacy of infrastructure are coupled to issues
of availability of resources to acquire modern technology to enhance productivity and efficiency. As
noted above, inadequate and limited investment flow s by risk-averse investors also pay a major part in
inhibiting these developments.
(c) Economies of scale
31. Linked problems may relate to economies of scale of operations .  LDC production
possibilities for export may in some cases be too small to allow for efficient transport of goods to
export markets (because of irregular or small scale shipments);  this, together with inefficient or
inadequate infrastructure, may be an additional di sincentive to the development and diversification of
exports.  With small scale operations, the cost of imported factor inputs may also be prohibitive for a
variety of reasons, including freight charges over long distances to remote destinations, exchange ratemovements, etc. In this connection, LDCs have emphasised exorbitant domestic and international
freight charges as posing major obstacles to exporting merchandise at competitive prices.  Production
technology may be inadequate; in some cases less th an required capacity is installed, while in others
operations are at levels far below installed capacity.
(d) Skills and other structural factors
32. Three structural  factors: the paucity of individual skills and specialization; lack of
institutional capacity and related problems; and lack of trade policy coordination amongst
departments and ministries with related competencies   are seen as impeding production and supply for
export.  The low level of expertise and the tendency of specialized human resources to migrate, create
difficulties for domestic efforts to achieve a solid capacity base of private sector operators that canstimulate and sustain efficient domestic production.  Trade policy coordination is yet to attain an
optimal level.  Coordination amongst relevant go vernment ministries and departments is often
hindered by jurisdictional disagreements.  Consultations between industry and government are yet to
be initiated or to become functional amongst several of the LDCs.
(e) Institutional issues
33. Other serious institutional problems  noted by LDCs that hinder efforts to increase efficiency
of production include the crippling problem of corruption of some public officials, as expressed, for
example, through domestic restrictions on movement of natural persons, goods and services at internal
control posts, formal or informal checkpoints, and international borders.
(f) Regulatory environment
34. Finally, the regulatory environment in LDCs is recognized as weak.  Strict establishment and
enforcement of regulatory standards are sine qua non,  particularly as regards financial intermediaries.
Many LDCs are yet to establish regulatory institutions to ensure fair competition and to address
structural and institutional bottlenecks that hinder competition and hence strongly affect productive
efficiency either for the competitive export of merchandise or for the meaningful utilization of
preferential margins.WT/COMTD/LDC/W/11/Rev.1
Page 9
V. LDCs' EXPORTS OF SERVICES:  SHARE OF GLOBAL TRADE, DIRECTION AND
STRUCTURE OF TRADE
35. Two key issues define LDCs' services trade.  First, their share of global export of services is
very small.  Second, the extent of their commitments under the General Agreement on Trade inServices (GATS) and for future negotiations is determined by a dual objective to attract foreign direct
investment (FDI) and to afford protection to some infant industries. Services trade is classified into
12 major sectors.
22  Although LDCs' export of commercial services is small and interest is limited, yet
there are some sectors of services trade and particular modes of service delivery which have been of
traditional commercial interest to developing countries and LDCs.  These are tourism, construction
services, which in turn is linked to movement of natural persons (which not only includes
professionals but also semi-skilled and unskilled labour), maritime services, health and education.
36. Services trade is one of the fastest growing areas of the world economy.  In 1996, the rate of
growth of world commercial services exports rose by 5 per cent, attaining a value of
US$1,260 billion.  Services trade, to a large extent, requires high levels of skills and specialization, as
well as the use of IT.  LDCs are yet to develop significant capacity in these areas of skills and
specialization.  In 1996, the 25 leading traders accounted for well over 80 per cent of trade in bothmerchandise and commercial services.
23  As noted, the bulk of LDCs exports is not based on services,
but rather on merchandise and even more so on primary or semi-processed commodities.  Exports of
services and trade policies relating to services are at an early stage of development and extremely
limited in most LDCs;  data on LDCs' exports of co mmercial services in the past 17 years show that
LDCs exports of such services are small, and in the 17-year period decreased, as a percentage ofglobal trade, from 0.26 per cent in 1980 to 0.12 per cent in 1996, although the absolute value of the
trade increased from US$943 million in 1980 to US$1,527 million in 1996, that is, a growth rate of
3.16 per cent (Table 1).  However, as these countries attempt to diversify their economies and
integrate into the global trading and economic system, some attention is being paid to services trade.
37. As evidence of their commitment to improve their services trade, the 29 LDCs, Members of
the WTO, made commitments under the GATS. Under Sector 9: tourism and travel-related services,
commitments were made by all the 29 LDCs, except for Madagascar, Maldives, and Mozambique.
Furthermore sectors 1: Business Services, and 7: Financial Services were areas where a significant
number of the 29 LDCs made commitments.  These commitments under the GATS were made with
the objective of attracting FDI.  Actual export of services, however, has been effectively and
essentially in tourism.
VI. PRINCIPAL OBSTACLES TO LDCS' EXPORTS OF COMMERCIAL SERVICES
38. The following demand- and supply-side obstacles to trade in services have been identified by
LDCs:
(i) The extent of "Mode 4" commitments by developed countries;(ii) The level of implementation of Articles IV.1, IV.2, IV.3 and XIX of the GATS.
                                                     
22These areas are business services, communications services, construction and related engineering
services, distribution services, educational services, envi ronmental services, financial services, health related
and social services, tourism and travel related services , recreational, cultural and sporting services, transport
services, other services not included elsewhere. (Services  Sectoral Classification Lis t:  Note by the Secretariat,
MTN.GNS/W/120).
23 "Table II.8:  Leading exporters and importers in world trade in commercial services, 1996", in: WTO
Annual Report 1997 Volume I.WT/COMTD/LDC/W/11/Rev.1
Page 10
(iii) In LDCs themselves, poor infrastructure and unreliable public utilities (road, rail, sea
and air transportation; water, electricity, telecommunications) leading to high input
factor cost, as noted also for goods trade;
(iv) Limited access to technology, including modern IT and limited knowledge of the
services market; and
(v) Slow pace of market reforms, including privatization, for promoting allocative
efficiency and attracting FDI.
39. LDCs have stated that the limited Mode 4 (presence and movement of natural persons)
commitments made by the developed countries constitutes a principal barrier to their services exports.
Commitments in Mode 4 for these countries should encompass both professionals and semi-skilled or
unskilled travelling individuals.  As noted above, Mode 4 is considered by some countries as in many
respects an immigration issue, rather than an issue related to a mode of delivery of services.
40. LDCs have also maintained that Articles IV.1, IV.2, IV.3 and XIX of the GATS have not been
meaningfully implemented by the developed countries.24  It is stated by LDCs that negotiated specific
commitments (Article IV.1) are yet to be meaningfully undertaken, contact/enquiry points
(Article IV.2) have not been established, and special priority (Article IV.3) has not been accorded to
LDCs.  Under Article XIX.3, negotiating guidelines are yet to be established for the treatment ofliberalization autonomously undertaken by Members since previous negotiations, and for the special
treatment of LDCs pursuant to Article IV.3.
41. As noted in the section on trade in goods, the state of infrastructure in LDCs is at very low
levels of functioning and performance.  The inefficiency of infrastructure seriously inhibits the efforts
of service providers, particularly in areas tourism, freight, construction, telecommunications, etc.This hinders the ability of these countries to either provide basic services locally or to compete
regionally or globally for such services.
42. Access to technology and knowledge of the market are also important considerations that
affect the export of commercial services.  In the various service sectors of interest to LDCs, access to
more modern technology can ensure better delivery, whether it be in the advertising of touristfacilities, transportation, domestic construction, regular postal or courier services.  In this connection,
Internet-based or other electronic means of commerce can significantly enhance both the
advertisement and delivery of commercial services.
43. As with goods, several other inter-related factors restrain the supply capabilities and
competitiveness of LDCs' exports of commercial services.  These are the pace and consistency of
market reforms, the degree of stability of macroeconomic policies, the speed or staging of trade
liberalization measures and programmes, and the instit utional setting, if any, of competition law and
                                                     
24Article IV.1 requires that the participation of developing country Members shall be facilitated through
negotiated specific commitments, by different Members, relating to: strengthening their domestic servicescapacity, efficiency and competitiveness, inter alia , through access to technology on a commercial basis;
improvement of their access to distribution channels and information networks; and the liberalization of market
access in sectors and modes of supply of export interest to  them.  Article IV.2 requires developed countries and
other Members, to the extent possible,
 to establish contact points within two years from the date of entry into
force of the WTO Agreement to facilitate the access of developing country Members service  suppliers to
information, related to their respective markets, concer ning: commercial and technical aspects of the supply of
services;  registration, recognition and obtaining of professional qualifications;  and, the availability of services
technology.  Article IV.3 requires that LDCs shall be accorded special priority  in the implementation of
Articles IV.1 and IV.2.WT/COMTD/LDC/W/11/Rev.1
Page 11
policy, including its enforcement.  Responses from LDCs suggest that ensuring macroeconomic
stability and the consistent implementation of trade liberalization measures, underscored and
enhanced by the application of competition law and policy in a stable, predictable regulatory
environment, is necessary to ensure the competitiv eness of, LDCs' exports of commercial services and
encourage FDI.
VII. OPPORTUNITIES IN EMERGING MARKETS FOR LDCs' EXPORTS OF GOODS
AND SERVICES
44. The bulk of LDCs' exports flow to 23 main developed country markets; 60 per cent to the
European Union, Japan and the United States.  Thirty-four per cent of exports flow to emerging
markets in Latin America, East and South-East Asia, and Southern Africa.
45. Prior to the current financial crisis, there were reasonable prospects for increased market
access opportunities in the emerging economies.  Those prospects have, for the meantime, diminished
owing to several factors:
(a) Estimates of GDP growth have been re vised sharply downward for many emerging
economies, principally those in East and South-East Asia.  Domestic demand in theregion has contracted;  many countries in Asia which previously showed healthy
import demand are in recession, and downturns are forecast for other countries and
regions;
(b) Partly as a consequence, commodity prices have fallen considerably; the Economist
Commodity Price Index
25 indicates more than a 30 per cent decline.  As a result,
several emerging market economies have been severely negatively affected by
reduced export earnings. It is likely that the slowdown in trade growth rates,
contraction in economic growth rates, coll apse of commodity prices, GDP contraction
in affected countries, may considerably reduce opportunities for LDCs exports in the
emerging economies in 1998 and 1999.
(c) Third, the currency depreciation and devaluation in several of the East Asian
economies have, ceteris paribus , made exports from these countries cheaper, and
imports more expensive. Countries in East and South East Asia have experienced not
only output contraction in goods and services, but have also significantly reduced
imports of goods and services, leading to increased trade surpluses.  So far, there is
little evidence of a surge of exports, althoug h there is some increase in volume terms
into North America and Europe as well as the emerging markets of Latin America,and several emerging markets in Latin America
26 are strengthening domestic anti-
dumping and safeguard mechanisms to take account of any de-stabilizing surge of
imports from economies with depreciated or devalued currencies.
(d) Finally, the financial crisis has led to a downturn in trade finance, credit guarantees
and insurance cover for exports.  This reduction of trade financing may furtherimpede the ability of LDCs to increase their exports to emerging markets.
                                                     
25Economist Index of Commodity Prices, 1998.
26E.g., Argentina, Brazil, Chile, Mexico.WT/COMTD/LDC/W/11/Rev.1
Page 12
VIII. CONCLUSIONS
46. A complex interplay of factors impedes the market access of  the exports of goods and
services of LDCs.  Some difficulties are common to  all LDCs;  others apply differently to individual
countries. Solutions will need to be far-reaching and consistently pursued.  Broadly, possible solutionsfall into three main categories, namely:
- elimination of market access restrictions, including tariff and non-tariff measures;
- resolution of domestic supply-side and capacity inadequacies that prevent the
utilisation of market access opportunities;  and
- consistent pursuit of domestic policy reforms by LDCs.
To this end, the following suggestions may be considered:
(a) Autonomous implementation, in advance and without staging, of MFN concessions on tariff
and non-tariff measures agreed in the Uruguay Round on products of export interest to the
LDCs;
27
(b) Duty-free treatment for LDCs' exports;
(c) Elimination of other distortions to trade, w ith the aim of encouraging increased value-added
in LDCs' merchandise exports, and strengthening and diversifying their production and export
bases;
(d) Improvement of the functioning of preferential trade schemes in favour of LDCs, including
further enlargement of product scope, simplification of administrative processes and
harmonization of rules of origin;
(e) Systematic notification of changes in preferential trade schemes, to improve transparency and
promote knowledge of the schemes for both importers and exporters, and to this endestablishing enquiry points;
(f) Enhancing the implementation of regional tr ading arrangements comprising LDCs, with a
view to increased trade liberalization;
(g) Improved provision of technical assistance for LDCs, with the aim of strengthening their
integration into the multilateral trading system, focusing on capacity-building in trade policy,
trade policy coordination, attainment of and adherence to international product quality
standards, improved information flows and communication;
(h) Review of options for improving trade financing for LDCs;
(i) Effective implementation of GATS Articles IV.1, IV.2, IV.3 and XIX, including Mode 4
commitments by developed countries;
(j) Greater commitments by LDCs in their own sc hedules of specific commitments, with the aim
of increasing investor confidence.
                                                     
27"Decision on Measures in Favour of Least-Developed Countries", in: The Results of the Uruguay
Round of Multilateral Trade Negotiations.  The Legal Texts.WT/COMTD/LDC/W/11/Rev.1
Page 13
TABLE 1
LDC exports of commercial services
(1990-1997 US$ million)
1990 1991 1992 1993 1994 1995 1996 1997
World  793,500  836,900  933,100  945,600  1,040,000  1,192,700  1,264,800  1,295,100
Angola           65         118           95           89            150  ...  ...  ...
Bangladesh         295         345         393         435            418            468            222  ...
Benin           97         104         123         119              86  ...  ...  ...
Central
AfricanRepublic          18           17           16           17  ...  ...  ...  ...
Congo, Dem.
Rep.        127  ...  ...  ...  ...  ...  ...  ...
Djibouti  ...  ...           35           38              33              27  ...  ...
Gambia           53           65           67           65              76              38              88  ...
Guinea           92           88           84           45              15              17              62  ...
Lesotho           34           34           34           28              29  ...  ...  ...
Madagascar         129         125         142         153            184            218            253  ...
Malawi           37           38           28           30              23  ...  ...  ...
Maldives         120         124         167         175            195            230            287  ...
Mali           60           50           53           53              52  ...  ...  ...
Mauritania           14           19           10           15              17              19  ...  ...
Myanmar           94           56         102  ...  ...  ...  ...  ...
Rwanda           31           27           19           21               -              10              13  ...
Sierra Leone           45           51           36           45              86  ...  ...  ...
Solomon
Islands          18           24           30  ...  ...  ...  ...  ...
Tanzania,
United Rep.        131         143         170         312            411            567            602  ...
Togo         115           88           94           45              61  ...  ...  ...
Zambia           95           69  ...  ...  ...  ...  ...  ...
Total LDC's      1,670      1,585      1,698      1,685         1,836         1,594         1,527               -
Share in
world0.21% 0.19% 0.18% 0.18% 0.18% 0.13% 0.12%
(1)  The 3 major components of commercial services are:  transportation, travel and other commercial services.
(2)  No figures recorded for Burkina Faso, Burundi, Chad, Guinea Bissau, Mozambique, Niger, UgandaWT/COMTD/LDC/W/11/Rev.1
Page 14ANNEX 1
WTO LDCs Exports Of Goods and Services and Indicated Barriers To Market Access
and Obstacles To Trade Expansion
WTO LDCS Goods Services Market Access Barriers Indicated Obstacles To Trade Expansion
Angola Petroleum, diamonds, fisheries None Low capacity preventing expansion and
diversification of production for export.  Minimalexperience with foreign markets because exports
are guaranteed by foreign partners.
Bangladesh Raw jute, jute manufactures, tea,
ready-made garments, knitwear,frozen fish, shrimps, leather & leather
goods.Non-tariff barriers on exports to India; stringent
quality and standards requirements, e.g.Hazar dous Analysis and Critical Control Project
(HAACP) on exports of frozen food to USA,
Canada, EU; stringent application of rules oforigin requirements on knitted garments by EUunder GSP scheme; Eco-labelling requirement for
woven and knitted garments; QRs on ready-made
garments by USA & Canada; child labourrestrictions.  Limited product coverage of GSPand GSTP, stringent rules of origin criteria,
procedural complexities.  Frequent GSP scheme
changes.Inadequate facilities for quality management &
control; low levels of technology and inadequateinfrastructure.  High cost of telecommunications,
port and transport services.  Unstable power
supply, high freight charges by air.  Lack ofinformation on export markets.  Inadequate tradefinance.  Institutional difficulties: administrative
bottlenecks - time-consuming procedures, lack of
coordination among trade policy related agencies,incomplete understanding of objectives andprocesses of trade policy, resource problems and
credit difficulties and inefficiency of financial
institutions, low levels of technical expertise.
Benin Cotton (fibres & seeds, cashew nuts,
tobacco.  (Re-exports: commercial
activity specializes in transit and re-export trade to Nigeria).NoneWT/COMTD/LDC/W/11/Rev.1
Page 15ANNEX 1
WTO LDCs Exports Of Goods and Services and Indicated Barriers To Market Access
and Obstacles To Trade Expansion
WTO LDCS Goods Services Market Access Barriers Indicated Obstacles To Trade Expansion
Burkina Faso Cotton, gold, leather & skins, fruits &
vegetables, ground nuts, shea butter.Uncompetitive products due to high cost and
product quality standards.  Absence ofinformation on market requirements.  Insufficient
harmonization of sub-regional policies, existence
of multiple formal and informal (irregular) taxeson the tariff and non-tariff levels, existence of toomany control posts.  Language (English) barrier,
exchange rate fluctuations and uncertainty,
currency convertibility.  High cost and limitedtransportation capacity.Landlocked.  Structural and cyclical obstacles.
Low institutional capacity and administrativebottlenecks, low quality control and management.
Poor infrastructure: inadequate transportation,
poor roads, telecomm, poor storage.  High cost ofinputs and transport.  Failure to apply sub-
regional conventions and agreements on transport
and highway transit, limited human capacities,
limited access to trade financing.
Burundi Food. Lack of information on market requirements,
product quality, packaging problems, high cost ofinternational transport, lack of trade
representation, uncompetitive products,
restrictions on the movement of Burundianbusinessmen.Inadequate infrastructure, paucity of human
capacities, institutional bottlenecks, trade finance,gaps in trade information.
Central African Republic Coffee, cotton, tobacco, w ood,
beeswax, diamonds, gold.None Structural economic constraints.
Chad Cotton, gums, arabic. Uncompetitive products, insufficient knowledge
of market access c onditions, repatriation of funds
difficulty from Nigeria.  Inability of clients in theRep. Of Congo to pay for meat products, tradefinance difficulties, high freight costs.Inadequate infrastruc ture (transportation,
telecomm., road networks), high freight charges,high cost of imported inputs, trade financedifficulties, absence of quality control, absence ofskilled personnel.  Institutional bottlenecks:
cumbersome customs procedures, harassment by
local police.  Lack of knowledge of instruments inforce, trade policy disciplines and rules, and lackof information of foreign market requirements.
Congo, Demo. Rep. Natural and cultured pearls, precious
stones, base metals, cermet, mineralfuels, oils bituminous substances,petroleum, coffee, tea, spices, wood
and wood products, ores, slag, ash,
copper.Protectionism in export markets, rules of origin
criteria, timidity of entrepreneurs, lack ofinformation, ignorance of facilities under certainspecific trading arrangements.Inadequate infrastructure, human capacities,
institutional bottlenecks, trade finance problems,gaps in trade information, supply-side constraints.WT/COMTD/LDC/W/11/Rev.1
Page 16ANNEX 1
WTO LDCs Exports Of Goods and Services and Indicated Barriers To Market Access
and Obstacles To Trade Expansion
WTO LDCS Goods Services Market Access Barriers Indicated Obstacles To Trade Expansion
Djibouti Salt, fish & re-exports. Export mechanisms are insufficiently developed. Inclemency of climate, virtual absence of
cultivable land, inadequacy of infrastructures,high cost of production factors (energy, land,
water, etc), low level of personnel expertise,
institutional bottlenecks, cumbersome customsprocedures, absence of quality controls andmanagement, lack of coordination amongst
administrative departments, including with the
private sector.  Resource shortages and creditdifficulties, including for trade finance.
Gambia Groundnuts, cotton. (Re-exports),
fish.None.  (However, fish exporters experience
difficulty with the Hazar dous Analysis and
Critical Control Project (HAACP) of the USA.Supply-side constraints. Problems of product
development requiring technology transfer,
inadequate infrastructure and human capacities.
Institutional bottlenecks, trade financedifficulties, gaps in trade information.
Guinea Bauxite, alumina, gold, diamonds.
Bananas, coffee, mangoes, fish.(Repetition of barriers to trade expansion).
Emphasis on, difficulties of complying with EU
standards for the import of fish as in EU Directiveof July 1991.  Uncompetitive products because ofpackaging, high factor costs, failure to comply
with quality standards of different market
requirements.  Restrictions on the business travelof individuals into foreign markets.  Incapacity toprocess its primary export products.Low productivity, caused by several factors,
including high cost of factor inputs.  Trade
finance difficulties, minimal credit facilities atprohibitive interest rates.  Administrative delaysand bottlenecks for private sector operators and
exporters.  Inadequate infrastructure: roads,
transportation, telecomm, energy.  Inadequatefinancial and material resources.  Unskilledpersonnel.  "Lifeless institutional environment".
Pricing system without production incentives.
Packaging and phytosanitary standards fall shortof market requirements & inter. standards.Reduced delivery capacity for fish because ofoverfishing by foreign fleets, and inability of
Guinea to protect its fishing resources.WT/COMTD/LDC/W/11/Rev.1
Page 17ANNEX 1
WTO LDCs Exports Of Goods and Services and Indicated Barriers To Market Access
and Obstacles To Trade Expansion
WTO LDCS Goods Services Market Access Barriers Indicated Obstacles To Trade Expansion
Guinea Bissau Cashew nuts, fish, wood. None No markets and no reliable partners for principal
exports, lack of foreign market information,inadequate infrastructure (e.g. roads, transport,
telecomm.).  High cost of telecomm. services,
high port dues, absence of trade finance, tradepromotion difficulties.
Haiti Clothing articles, coffee, guavas,
essential oils.Absence of opportunities in foreign markets.
Discriminatory tariff and non-tariff measures:
non-tariff barriers for exports to the DominicanRepublic; textile quotas in the U.S.; high transportcosts to European market.  Absence ofinformation on the potential advantages and
opportunities offered by the preferential market
mechanisms of the GSP, GSTP, CBI.  Lack ofinformation on trading opportunities in the globalmarket.Inadequate infrastructure: port and transport
facilities, telecomm).  Low level expertise and
shortage of technical staff & qualified humanresource in particular in the areas of trade policy,trade promotion, trade negotiations, customs &tax matters.  Problems of quality management.
Insufficient knowledge of foreign markets.  High
freight costs.  Lack of interaction and absence ofcoordination between public and private sectorsin trade policy matters.  Financial and material
resource limitations.
Lesotho Diamonds, raw wool and mohair,
clothing, footwear, electronic sub-sectors.Inability to meet quality standards, stringent
application of rules of origin in EU markets, non-recognition of cumulative production under theGSP.Inadequate infrastructure, limited human
resources, low institutional capacity, limitedexport base, absence of modern technology, lackof quality control and standards, low product
quality, lack of modern design, low-levels of
presentation and packaging, lack of workingcapital, lack of credit access by SMEs/localentrepreneurs, problems of product development,
limited market information in export markets,
minimal experience in export markets anduncoordinated training.WT/COMTD/LDC/W/11/Rev.1
Page 18ANNEX 1
WTO LDCs Exports Of Goods and Services and Indicated Barriers To Market Access
and Obstacles To Trade Expansion
WTO LDCS Goods Services Market Access Barriers Indicated Obstacles To Trade Expansion
Madagascar Food ores and minerals, raw materials
textiles.Difficulty in attaining international product
quality standards, packaging, and adaptation tomarket requirements in the EU.  Quality
inspection difficulties even with issue of
Preshipment Inspection (PSI) certificates.  Creditguarantees difficulties for export.  Difficultieswith risk-sharing.  Non-tariff measures.  Absence
of trade information/market opportunities.Inadequate infrastructure: port installations,
transportation.  High cost of imported factorinputs.  High freight charges.  Low level of
expertise and technical capacity.  Absence of
information on market opportunities in foreignmarkets.  Inadequacy of national quality standardsfor export products.  Absence of export financing,
export credits, guarantees, and insurance.
Difficulties in obtaining bank loans - bank interestcharges attain 40%.  Absence of financialresources for implementing and coordinating
trade policy.  Absence of coordination between
producers and exporters.  Cumbersomeadministrative procedures.  Low level oftechnology.
Malawi Tea, tobacco, sugar, coffee. Uncompetitive products because of high cost of
factor inputs, including high transport costs, and
obsolete technology.  High tariff rates.  Difficulty
with attaining product quality standards, andsanitary and phytosanitary standards on agric.Exports.  Lack of information on market
requirements.  Inadequate trade promotion.Weak infrastructure: transportation, telecomm,
storage facilities.  Inadequate utilities: water,
energy supply, sewage.  Landlocked, therefore,
high cost and convoluted transportation routes.Over-reliance on agric. products - minimaldiversification.  Small size of domestic market.
Low aggregate demand with limiting effect on
production volume and range.  Obsoletetechnology for production, distribution, etc.Trade finance and credit difficulties.  Inadequate
skilled labour.  Inadequate trade rep. abroad.
Lack of information of market opportunities inforeign markets.  Weakness of institutionalcapacity.  Inadequacy of investment.
Maldives Fish (canned tuna). None. Inadequate infrastructure, limited human
capacities, institutional bottlenecks, trade financedifficulties, trade information gaps.WT/COMTD/LDC/W/11/Rev.1
Page 19ANNEX 1
WTO LDCs Exports Of Goods and Services and Indicated Barriers To Market Access
and Obstacles To Trade Expansion
WTO LDCS Goods Services Market Access Barriers Indicated Obstacles To Trade Expansion
Mali Cotton, livestock, gold. Insufficient productivity and supply.  QRs on
some of exports in neighbouring coastal countriesand failure to issue import licences.  The market
integration goals of the Economic Community of
West African States (ECOWAS) by tariffreduction, elimination of QRs & trade promotion,have not been fully applied.  Similar problems
apply to West African Economic & Monetary
Union (WAEMU).  Uncompetitive industrialcosts due to high transport costs, managementcosts arising from land-locked situation.
Technical barriers to export, for e.g. quality of
skin treatment.  Packaging difficulties, includinghigh cost of export packaging.  Quality controlstandards.Land-locked country.  Inadequate infrastructure:
roads, transport, communications.  Quality ofexport products - quality control problems.  Low
level of expertise, shortage of technical capacity.
High cost of imported inputs and factor costs.High cost of energy.  Absence of trade financingand credits.  Lack of information of market
opportunities.  Poor storage capacities.  Trade
promotion difficulties: absence of advertising,limited outlets - problems of diversifying outlets.
Mauritania Mauritania submitted its needs assessment but did not respond to the questionnaire.
Mozambique Shrimps, cotton, cashew, sugar. None. Low product quality, trade financing difficulties,
institutional bottlenecks, low level of expertise,inadequate infrastructure, high cost oftransportation, lack of information on potential
export markets, absence of capacity for analysis
of market information.
Myanmar No submission.
Niger Uranium, fuels. Difficulties with product quality standards,
complying with environmental protection criteria,
information about foreign markets, problems witheligibility conditions for preferential marketaccess schemes and their complexity.Inadequate infrastruc ture (transportation,
telecomm.).  High cost of transportation, non-
convertible currencies, institutional bottlenecks,lack of professionalism in the businesscommunity, trade barriers in industrial countries.
Rwanda
Sierra Leone No submission.WT/COMTD/LDC/W/11/Rev.1
Page 20ANNEX 1
WTO LDCs Exports Of Goods and Services and Indicated Barriers To Market Access
and Obstacles To Trade Expansion
WTO LDCS Goods Services Market Access Barriers Indicated Obstacles To Trade Expansion
Solomon Islands Palm oil, copra, cocoa, unprocessed
timber, forest products, fish (tuna),honey.Preference erosion for tuna products and agric.
products in the EU market because of global tradeliberalization, hence increased competition in EU
market; EU rule of origin for fisheries requiring
51% ACP/EU ownership of fishing vessels orharvesting tuna within 12 mile territorial sea.Sanitary and phytosanitary constraints on fish and
honey exports.  Erosion of preferences accorded
by Australia & New Zealand because of theiralignment with GSP levels pursuant to WTOcommitments.Inadequate infrastructure, high cost of utilities,
restrictive land tenure system not allowing forlease, low-level of expert capacity, problems with
trade and investment financing, resource
limitations in public and private sector,insufficient economies of scale in particular in thetimber industry, coordination difficulties amongst
government, private sector, and local financial
institutions.
Tanzania Coffee, cotton, tobacco, cashew nuts,
tea, cloves, sisal, sugar, pyrethryum,
cardamon, groundnuts.Domestically, failure of govt. to establish quality
standards, strong regulatory environment, and
competition law & policy.  Externally, tariffs and
other import charges, and non-tariff barriers:QRs, import licensing, and customs barriers.Restrictive application of standards, testing,
labelling, and certification.  Barriers to the
Tanzania's exports are listed for specific marketsin annexes 7 & 8 of its needs assessmentdocument.Poor knowledge of market opportunities and
changes in market requirements.  Poor direct
business contacts.  Production weakness and
weakness in export management.  Poororganization amongst small producers.  Minimaland insufficient trade - export - financing and
credit guarantees.  Inadequate infrastructure:
telecomm.  Misalignment of  public sectorinstitutions and lack of coordination for exporttrade.  Need to re-structure fiscal and monetary
policy to provide incentives to exporters.
Resource shortages for coordinating, monitoringand regulating Government departments for tradepolicy and export.  Co-existence of old and newtrade policies resulting in incoherence and
conflict for export development.WT/COMTD/LDC/W/11/Rev.1
Page 21ANNEX 1
WTO LDCs Exports Of Goods and Services and Indicated Barriers To Market Access
and Obstacles To Trade Expansion
WTO LDCS Goods Services Market Access Barriers Indicated Obstacles To Trade Expansion
Togo Phosphates, cotton, cocoa, coffee,
fruits, vegetables, fish products.Product quality.  Failure to comply with
recognized standards. Absence of tradeinformation. Absence of information of
regulations in force in export markets in particular
in Europe and the U.S., lack of expertise in exportmanagement and quality control in SMEs,fluctuating levels of production.  Preferences
under the ACP/EU arrangements eroded by MFN
liberalization.  Absence of HarmonizationMeasures under the ECOWAS arrangements.Lack of expertise in export management, absence
of expertise in quality management and control.Minimal knowledge with rules and disciplines
governing the multilateral trading system.
Absence of information on trade opportunities orconditions of marketing.  Lack of familiarity withthe work of certifying and standardizing bodies
and inability to interact with bodies to secure
certification. Trade financing difficulties andexcessive bank charges.  Uncompetitive goodsbecause of high cost of imported inputs for export
manufacture.  Minimal coordination for export
purposes.  Harassment of road haulagecontractors subjected to internal customs andpolice checks every 5-10 kms.
Uganda Coffee, cotton, tea, tobacco.  Leather
& products.  Fruits & vegetables,spices.  Vegetable oil seeds.  Essential
oils (cardamon, eucalyptus,
gerenium).  Honey.  Cereals.  Yam,cassava.  Fish and fish products.Cobalt, iron ore, gold, tin, copper
phosphates, marble.Safari tourism, clearing and
forwarding cargo.  Air freightand charter.  Consultancy and
advisory services.QRs: EU ban on fish imports because of non-
conformity with quality standards.  Tariffescalation and tariff peaks.  Non-Tarriff barriers:
cumbersome customs formalities in Kenyan ports
& excessive border checks.  Occasional borderclosures.  Transit countries are the mostproblematic for Uganda in market access terms.
Problems arising from the non-harmonization in
the three neighbouring Regional TradeArrangements (EAC, COMESA, CBI) of tariffs,technical regulations, Protocol on the right of
movement and settlement.  Lack of information
of market opportunities beyond the region.Uncompetitive products because of high factorcosts.Landlocked.  Poor infrastructure: poor state of
roads, rail transportation system.  Lack of bulkhandling facilities.  High cost and unreliable
public utilities: water, electricity, telecomm.
Difficulties with trade financing and exportcredits (high cost, high interest rates).  Virtualabsence of export credit guarantee and insurance.
Inadequate export incentives.  Weak technology
and research capacity.  Inexperienced exporters.Institutional bottlenecks: cumbersome customsprocedures.  High rate of bribery and corruption.
High factor cost of inputs thus productive
inefficiency and uncompetitive goods.  Low levelof expertise and trained personnel.  Unstableprices.WT/COMTD/LDC/W/11/Rev.1
Page 22ANNEX 1
WTO LDCs Exports Of Goods and Services and Indicated Barriers To Market Access
and Obstacles To Trade Expansion
WTO LDCS Goods Services Market Access Barriers Indicated Obstacles To Trade Expansion
Zambia Copper, cobalt, zinc, lead.  Coffee,
horticulture, floriculture, tobacco,cotton, textiles.  Agricultural
products.High protective tariff barriers in the Southern
African Customs Union (SACU).  Non-tariffbarriers in SACU: South African import permits
for pneumatic tyres & tubes; Import Licences
issued by the Control Boards in Namibia formaize, wheat, sunflower seeds.  Levies byNamibian Control Boards on "controlled crops".
Export subsidies by SACU Members thus
unfairly competing with Zambian products.Difficulties with attaining international qualitystandards due to absence of laboratories.  Limited
scope of GSP benefits for Zambian exports.Landlocked country - high freight and
transportation costs.  Poor infrastructure.  Lack ofinformation of opportunities in foreign markets.
Low capacity utilization, low productivity, high
factor/input costs hence non-competitiveproducts.  Low level of expertise and technicalcapacity.  Absence of capital and finance for
export development.  High domestic interest
rates.  Sanctions against Burundi in 1996 resultedin lost order for exporters.  Civil strife in Congo,Demo. Rep. and Burundi in 1996 was harmful for
exports.
NOTES:
The information contained in this Annex is derived and summarized from the needs assessments questionnaires contained in docume nts WT/COMTD/IF/1-38.  Information reflects
statements by LDCs in their submissions responding to questions on market access and obstacles to trade expansion
__________