WORLD TRADE
ORGANIZATIONWT/COMTD/LDC/W/31
TN/MA/S/11
29 September 2003
(03-5109)
Sub-Committee on Least-Developed Countries
Negotiating Group on Market Access
MARKET ACCESS ISSUES RELATED TO PRODUCTS OF EXPORT INTEREST
ORIGINATING FROM LEAST-DEVELOPED COUNTRIES
Note by the Secretariat1
Table of Contents
I. INTRO DUCTION ................................................................................................................. ...3
II. EXPORT PROFILE .............................................................................................................. ...3
A. M AJOR MARKETS ........................................................................................................................3
B. M AJOR PRODUCTS .......................................................................................................................4
III. TARIFF MEASURES ............................................................................................................ ..7
A. S TRUCTURE OF PREFERENCES .....................................................................................................9
B. T ARIFF ESCALATION ...................................................................................................................9
C. T ARIFF PEAKS ..............................................................................................................................9
IV. NON-TARIFF MEASURES – RULES OF ORIGIN ..........................................................11
V. PREFERENCE MARGINS ...................................................................................................12
VI. INITIATIVES TO IM PROVE MARKET  ACCESS...........................................................12
                                                     
1 This document has been prepared under the Secret ariat's own responsibility and without prejudice to
the positions of Members and to their rights and obligations under the WTO.WT/COMTD/LDC/W/31
TN/MA/S/11
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List of Tables
Table 1: Characteristics of LDC exports, 2000 5
Table 2:  LDCs Export Shares in world greater than 50 per cent, 2000 (thousand US dollars) 7
Table 3:  Duty-free imports into developed coun tries from developing countries and LDCs, 1996-
2001 (in per cent) 8
Table 4:  U.S. Merchandise Imports from LDCs by region (Millions of dollars and percentages)
1999, 2001 and 2002 8
Table 5:  Tariff profile of selected markets by forms of tariff treatment (percentages), 2001 10
Table 6:  Exceptions to Duty-Free and Quota-Free Market Access, 2003 11Table 7:  GSP imports and utilization by Least-Developed Countries. 13
Table 8: Summary of Preference Margins by C ountry for Agricultural Products (HS Chapters) 15
Table 9: Summary of preference margins by country for non-agricultural Products (HS Chapters)16
Table 10:  Summary of initiatives to improve market access for LDCs 17
List of Figures
Figure 1:  Destination of LDC Exports by Market, 2001 4
Figure 2:  Destination of LDC E xports by Type of Product, 2001 6
Figure 3:  Distribution of LDC Exports at the HS 2 Digit Level, 2001 7WT/COMTD/LDC/W/31
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I. INTRODUCTION
1. This Note by the Secretariat has been prepared in response to paragraph 7 of the LDC work
programme, which mandates an annual review of market access for products originating from LDCs
(WT/COMTD//LDC/11).  It builds on the 2002 (W T/COMTD/LDC/W/28 and TN/MA/S/7) study on
market access by adopting the same basic structure.  The major addition in this study is the inclusion of
information on the utilisation of preferences and preference margins.
2. The next section examines the LDC export profile for the purpose of identifying the major
markets and products of export interest to LDCs. Th is is followed by an examination of tariff measures
that affect LDC exports.  Sections IV and V examine the issue of rules of origin in the context of the
utilisation of preferences and preference margins.  Finally, section VI reports on measures taken by
Members to improve market access for LDCs.
II. EXPORT PROFILE
3. The participation of LDCs in the world trading system in a broader context is examined in
WT/COMTD/LDC/W/30.  That study also discusses, in  detail, the role of LDCs in recent developments
in world trade.  It concludes that the merchandise  exports and imports of LDCs have grown somewhat
faster than world trade between the period 2000-2002, w ithout any substantial change in their share of
total world trade.
A. MAJOR MARKETS
4. There has not been any change in the major markets for LDC products. The European Union and
United States remain the most important markets for LDC products, absorbing approximately 63 per cent
of total LDC exports (Figure 1).  The only other devel oped country in the list of top ten markets is Japan,
which is ranked fifth.  Canada is ranked eleventh.  Another important observation about the data
presented in Figure 1 is that six of the seven remaining markets in the top ten are in East Asia.  In
declining importance they are:  China; Thailand; Republic of Korea; Singapore, Chinese Taipei and
Malaysia.
5. A distinguishing feature of LDC exports is their reliance on a small number of markets (Table 1).
Despite a WTO membership of 146 countries, 12 LDCs export 90 per cent of their products to less than
or equal to five markets.  Almost half the LD Cs export their products to ten or less markets.
6. Another indicator that can be used to identify the importance of a market is import penetration;
the share of total imports accounted for by LDC exports.  According to this metric LDCs are the most
successful in the Ethiopian market, followed by Thailand and Nigeria.  They also appear to be
penetrating the Chinese and the Indian market.WT/COMTD/LDC/W/31
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Figure 1:  Destination of LDC Exports by Market, 2001
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0South AfricaNigeria  aEthiopiaHong Kong, ChinaSaudi ArabiaIndonesiaBrazilCanadaMalaysiaTaipei, ChineseSingaporeIndia  aKorea RepublicJapanThailandChinaUSAEuropean Union
Share in total LDC exports (%)
Share of LDC ex ports in markets' total im ports (%)
a.  2001 values repeated from 2000.
Source:  WTO.
B. MAJOR PRODUCTS
7. The profile of LDC exports underlines the fact that the 49 LDCs do not have homogenous
market access interests (Table 1).  Agricultural products account for more than 85 per cent of total
exports for Burundi, Malawi, Chad and Somalia.  If the threshold is decreased to 50 per cent (rounded)
the number increases to  15 countries.   Whereas, at the opposite end of the spectrum agriculture accounts
for less than 1 per cent in eight LDCs, especially in those LDCs that rely heavily on fuel exports.
Bangladesh stands out as an exporter that depends very heavily on non-fuel and non-agricultural
products; agricultural exports account for less than 0.4 per cent of total exports.  Its principal exports are
apparel, crustaceans and leather products.
8. An interesting difference between Western Europe and North America as markets is their
importance as importers of food products.  Western Europe absorbs 40 per cent of total LDC food
exports, whereas North America only takes in 9 per cent.  Yet, combined both markets take in
97 per cent of total LDC exports of clothing.  This would suggest that the developed country markets
should not necessarily be considered as homogenous.WT/COMTD/LDC/W/31
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Table 1:  Characteristics of LDC exports, 2000
Country Concentration
Index at HS-4
levelaConcentration
Index at HS-6
levelbShare of
Agriculture
in Total
ExportscMarket
DiversificationdPrincipal exports
Afghanistan 58.8 58.6 82.0 20 Animal-hair, fur skins, grapes
Angola 98.6 97.7 0.0 5 Petroleum oils, diamonds, crustaceans
Bangladesh 32.3 23.9 0.4 14 Apparel, crustaceans, leather
Benin 68.9 67.0 76.4 12 Cotton, leather, misc. chemicals
Bhutan 63.6 57.6 6.7 4 Gas turbines, wheat, coal, coffee
Burkina Faso 69.5 67.6 77.5 15 Cotton, oilseeds, sugar
Burundi 90.6 90.5 88.6 14 Coffee, ores
Cambodia 52.7 35.2 0.3 8 Apparel, wood, footwear
Cape Verde 49.8 47.9 1.5 7 Footwear, apparel, mineral fuels
Central African Rep 87.2 86.0 10.3 5 Diamonds, wood, cotton, coffee
Chad 94.7 94.6 91.7 11 Cotton, Arabic gum, electrical machinery
Comoros 80.8 80.7 83.3 7 Coffee, essential oils, ores
Congo, Dem. Rep. of 84.2 76.9 3.5 4 Diamonds, mineral fuels, ores, coffee
Djibouti 28.1 28.0 30.6 13 Peals, oilseeds, live animals
Equatorial Guinea 93.3 92.8 0.4 3 Mineral fuels, wood, fish
Eritrea 33.4 31.1 18.5 12 Precious metal, fish leather
Ethiopia 75.2 71.5 83.6 16 Coffee, oilseeds, leather
Gambia 61.0 60.9 16.7 12 Diamonds, electronic equipment, fish
Guinea 83.0 81.1 3.8 9 Ores, diamonds, petroleum oils
Guinea-Bissau 93.5 93.1 49.7 2 Petroleum oils, fish, wood
Haiti 49.6 48.0 10.2 1 Apparel, coffee, edible fruits
Kiribati 91.9 86.3 0.0 3 Fish, electronic equipment
Lao PDR 39.8 26.3 12.6 12 Wood, apparel, coffee
Lesotho 67.4 64.3 0.6 2 Apparel, precious stones
Liberia 82.8 66.5 0.5 10 Ships, wood, diamonds
Madagascar 40.7 35.2 32.5 11 Apparel, fish, coffee
Malawi 82.4 76.3 88.8 23 Tobacco, tea, coffee, sugar
Maldives 56.7 51.0 0.1 6 Apparel, seafood, fish
Mali 79.9 77.8 77.1 17 Cotton, electronic equipment
Mauritania 89.1 68.2 0.3 11 Ores, fish
Mozambique 45.7 45.3 28.9 15 Crustaceans, aluminum, cotton
Myanmar 39.1 23.9 9.8 12 Apparel, wood, crustaceans
Nepal 36.2 33.6 12.7 7 carpets, apparel
Niger 93.5 92.8 1.7 2 Petroleum oils, inorganic chemicals
Rwanda 77.7 77.7 57.3 16 Coffee, ores
Samoa 82.6 78.4 10.1 4 Electrical equipment, fish
Sao Tome and Principe 69.6 43.9 21.2 12 Fish, cocoa, machine tools
Senegal 35.3 34.4 29.4 14 Vegetable oil, fish, residues
Sierra Leone 69.6 60.3 7.1 6 Motor vehicles, furniture
Solomon Islands 77.7 70.8 8.2 10 Wood, seafood, fish
Somalia 78.5 72.6 88.7 4 Live animals, wood
Sudan 84.9 84.8 21.4 8 Petroleum oils, oilseeds, live animals
Tanzania 42.3 34.8 47.4 20 Fish, coffee, tobacco
Togo 66.0 57.7 49.7 20 Natural phosphates, cotton, coffee
Tuvalu 37.8 37.8 27.1 8 Prepared vegetables, rubber, machinery
Uganda 75.6 68.9 78.5 18 Coffee, fish, tobacco
Vanuatu 77.4 64.5 16.1 7 Ships, fish, copra
Yemen 94.9 92.6 1.7 7 Petroleum oil, fish
Zambia 59.5 59.3 13.4 14 Copper, base metals, cotton
Source:  UN Comtrade.a. Share of top three exports in terms of value in total exports based on HS 4 digit classification.
b. Share of top three exports in terms of value in total exports based on HS 6 digit classification.
c. Using the WTO Agreement on Agriculture definition of agriculture.
d. Defined as the number of different countries to which an LDC exports 90 per cent of its products.WT/COMTD/LDC/W/31
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Figure 2:  Destination of LDC Exports by Type of Product, 20012
0102030405060
North America Western Europe Asia OthersPercentAll products
Agriculture
Manufactures
Food
Clothing
Fuels
Source:  WTO.
9. Lack of product diversification is one of the key characteristics of LDC exports.  Table 1
presents figures on the share of the top three exports in terms of total exports based on a HarmonisedSystem four digit and Harmonised Sy stem six digit classification.  Despite more than 5,000 lines in the
latter classification the top three exports of 34 LDCs account for more than 50 per cent of total exports.
This lack of diversification is also presented in Figure 3 which shows that almost three-quarters of the
total LDC exports is accounted for by fuels, apparel, precious stones and fish and fish products.
10. It is important to note that LDCs as a group are also major players in a few products.  Table 2
lists eight products at the Harmonised System 6 digit level for which LDCs account for more than 50 per
cent of world exports.
                                                     
2 For regional and product definitions see the Technical Notes of the International Trade Statistics 2002
(WTO, 2002).WT/COMTD/LDC/W/31
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and 2001 is clearly downwards.  By 2001 the share of duty-free imports is estimated to be approximately
70 per cent.
Table 3:  Duty-free imports into developed countries from developing countries and LDCs, 1996-
2001 (in per cent)
1996 1997 1998 1999 2000 2001
Excluding arms
  Developing countries 54.8 50.5 49.9 57.2 62.8 65.7
  LDCs 71.5 67.2 77.7 77.1 75.3 75.3
Excluding arms and oil
  Developing countries 56.8 51.5 49.9 58.1 65.1 66.0
  LDCs 81.1 75.5 75.0 73.6 70.5 69.1
Source:  Box IIB.1, World Trade Report 2003, (WTO, 2003).
13. Table 4 provides similar data, including a regional breakdown, for the United States.  To our
knowledge, the United States is the only Member for which such data is publicly available.  It shows thatthe share of duty-free imports from LDCs has risen during the three-year period from 1999 to 2002.
Table 4:  U.S. Merchandise Imports from LDCs by region (Millions of dollars and percentages)
1999, 2001 and 20023
1999 2001 2002
AfricaAsia
and
Middle
EastCaribb
-ean Total AfricaAsia
and
Middle
EastCaribb
-ean Total AfricaAsia
and
Middle
East Caribbean Total
Total Imports 3242.2 3024.9 301.0 6568.2 4276.1 4362.5 263.1 8901.7 4840.5 4081.3 254.6 9176.4
Duty-free
Imports 2874.4 229.2 228.3 3331.9 3964.7 321.2 220.5 4506.4 4561.7 431.0 210.6 5203.3
Dutiable
Imports 367.8 2795.7 72.8 3236.3 311.4 4041.4 42.6 4395.4 278.9 3650.2 44.0 3973.1
Duty Collected 31.5 444.1 11.9 487.5 35.9 4041.4 6.4 4083.7 6.0 556.7 7.0 569.7
Duty Collected
/DutiableImports 8.6 15.9 16.3 15.1 11.5 598.9 15.0 92.9 2.2 15.3 15.8 14.3
Duty Collected/
Total Imports 1.0 14.7 3.9 7.4 0.8 14.8 2.4 45.9 0.1 13.6 2.7 6.2
Duty-free
Imports / Total
Imports 88.7 7.6 75.8 50.7 92.7 13.7 83.8 50.6 94.2 10.6 82.7 56.7
Source: US Department of Commerce, Bureau of the Census, FT 920, US Merchandise Trade: Selected
Highlights, various issues.
                                                     
3 For regional definitions of LDCs, Asia and Middle East includes: Afghanistan, Bangladesh, Bhutan,
Cambodia, Kiribati, Lao PDR, Maldives, Myanmar, Nepal, Samoa, Solomon Islands, Tuvalu, Vanuatu and Yemen.
Caribbean comprises Haiti.  The remaining 34 LDCs are in Africa.WT/COMTD/LDC/W/31
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A. STRUCTURE OF PREFERENCES
14. The data presented in Table 3 is estimated using the tariff profile of developed country markets
for the year 2001.  It does not take into account market access improvements that have been notified and
implemented since that year.  In order to obtain a better picture of the current state of market access withrespect to tariff barriers, Table 5, presents data on the MFN and LDC preferential rate for developed
countries for which data is available.
4  It shows that for a number of markets such as Australia, Canada,
European Union and New Zealand there is a significant movement towards duty-free market access for
LDC products.
B. TARIFF ESCALATION
15. Tariff escalation, defined as higher tariffs facing more processed products was examined in detail
in WT/COMTD/LDC/W/28.  That study showed that tariff escalation still exists in the residual
protection of developed country markets that offer preferential access for products originating from
LDCs.  In general, however, the remaining tariff barr iers faced by LDC exporters tend to be in the more
processed products in both developed and developing  country markets.  Developing country markets are
often characterised by both higher tariff barriers and tariff escalation.5  These barriers, as noted in the
earlier study, are not mitigated in developing country markets by the granting of preferences.  On the
other hand, the residual protection in developed country markets, after accounting for preferences, is
typically in the more processed products.
C. TARIFF PEAKS
16. There is no generally accepted definition of a tariff peak.  Two measures are usually used for
illustrative purposes; three times the national tariff average or a tariff value above 15 per cent.  The
former is referred to as a national peak and the latte r an international peak.  Table 5 illustrates that for
those countries for which data is available the granting of preferential access results in a general
reduction in both national and international peaks.  In some cases, however, the number of national peaks
may actually rise when preferences are taken into account, since a lower overall average would be usedas the reference point.
17. Table 6 presents in general terms the landscape for tariff peaks taking into account the current
state of market access initiatives.  It shows that for Canada, the EU and Switzerland the remaining peaks
are predominantly in the agricultural sector.  In contrast, the peaks in the United States are predominantly
in the non-agricultural sector.
                                                     
4 The comparable tables in WT/COMTD/LDC/W/28 are Tables 3 and 4.  Those tables included data on
selected developing country markets as a means of comp arison.  They showed that developing country markets do
not predominantly offer concessions to LDC exports, hence th e applicable tariff rates are the Most Favoured Nation
applied rates.  The relevant data can be sourced from Annex Tables IIB.6 and IIB.7 of the World Trade Report
2003  published by the WTO.
5 See World Trade Report 2003 (WTO, 2003).WT/COMTD/LDC/W/31
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Page 10 Table 5:  Tariff profile of selected markets by forms of tariff treatment (percentages), 2001
 MFN
 All Products Agricultural products Non-agricultural products
Tariff averages Tariff averages Tariff averages
Simple AverageWeighted
Average Number of Peaks Simple AverageWeighted
Average Number of Peaks Simple AverageWeighted
Average Number of Peaks
COUNTRY Total Dutiable Total DutiableInter
national National Total Dutiable Total DutiableInter
national National Total Dutiable Total DutiableInter
national National
Australia 4.1 7.8 4.2 8.3 213 515 1.1 4.8 2.3 4.7 0 0 4.6 8.0 4.3 8.5 213 515
Canada 4.2 6.9 3.4 7.0 419 479 3.0 7.1 3.1 8.7 8 15 4.4 6.9 3.4 7.0 411 464
EU 4.4 5.5 3.1 6.0 101 135 6.0 9.6 4.0 9.2 57 74 4.2 5.1 3.1 5.9 44 61
Iceland 2.9 11.1 2.9 12.1 106 802 7.0 25.2 12.6 40.1 105 123 2.4 9.2 2.2 9.5 1 679
Japan 3.3 6.1 2.5 7.9 139 452 7.1 10.7 8.1 14.1 108 184 2.7 5.2 1.8 6.4 31 268
New Zealand 3.3 7.2 2.9 7.7 239 318 1.7 5.0 3.2 6.5 0 0 3.5 7.4 2.9 7.8 239 318
Norway 2.6 10.1 1.5 8.7 131 540 8.4 51.2 4.9 35.3 18 34 2.1 8.0 1.4 8.1 113 506
United States 3.9 5.7 3.1 5.4 232 406 4.8 6.7 3.1 4.9 49 76 3.8 5.5 3.1 5.5 183 330
 LDC
 All Products Agricultural products Non-agricultural products
Tariff averages Tariff averages Tariff averages
Simple AverageWeighted
Average Number of Peaks Simple AverageWeighted
Average Number of Peaks Simple AverageWeighted
Average Number of Peaks
COUNTRY Total Dutiable Total DutiableInter
national National Total Dutiable Total DutiableInter
national National Total Dutiable Total DutiableInter
national National
Australiaa0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Canadaa1.7 13.7 0.6 18.3 345 525 0.5 16.2 0.4 25.4 5 12 0.0 0.0 0.0 0.0 0.0 0.0
EUa0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Iceland ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...
Japan 0.9 10.3 1.0 10.3 101 405 5.9 11.7 7.0 15.5 98 298 0.2 6.5 0.3 4.9 3 107
New Zealanda0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Norway ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...
United States 1.9 10.7 1.3 14.7 194 706 1.9 14.6 0.9 25.6 26 59 1.9 10.3 1.4 14.5 168 647
Source: UNCTAD TRAINs and WTO IDB.
a Figures adjusted to account for post 2001 initiatives.  Only the non-agricultural product figure was adjusted for Canada.
... data not available.
International tariff peaks refers to tariff rates that are above 15 per cent.  National tariff peaks refers to tariff rates tha t are three times the national average, calculated for each
tariff regime.Only ad valorem  duties are taken into account in the calculation.WT/COMTD/LDC/W/31
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Table 6:  Exceptions to Duty-Free and Quota-Free Market Access, 2003
Country Exceptions
Australia None.
Canada Dairy, eggs and poultry.
EU Bananas, sugar and rice (phased out by 2009).  Arms and munitions.
Iceland Positive duties remain in the following agricultural HS chapters:  04, 15, 18, 19,
21 and 22.  Positive duties remain in the following non-agricultural HSsub-headings:  3502 and 3823, and all of HS 16 with the exception of sub-
headings 1603 to 1605.
Japan Positive duties remain in all agricultural chapters except HS chapters 05 and 06.
All non-agricultural chapters are duty-fr ee with the exception of the following
HS chapters:  03, 16, 25, 27, 29, 35, 42, 43, 44, 50, 64, 72, 75, 76, 90 and 91.
New Zealand None.
Norway Arms and munitions.  Flour, grains and feeding stuffs.
Switzerland Positive duties remain in all agricultural HS chapters with the exception of:  09,
17 to 22, and 24.  Non-agricultural HS chapters are duty-free with the exception
of HS chapters 35 and 38.
United States Textiles and apparel (except those allowed under AGOA).
IV. NON-TARIFF MEASURES – RULES OF ORIGIN
18. The data presented in the previous section focussed on tariffs and highlighted the role played
by non-reciprocal preferences in determining market access.  In reality, however, the granting of
preferences does not necessarily imply that a product that is eligible for preferential treatment will
actually receive such treatment.  Therefore, the tabl es presented earlier should be considered as the
maximum estimates of duty-free market access since they define the eligibility of products as opposed
to the actual treatment.
19. The actual treatment of products, or utilisation of preferences, can only be determined through
the use of customs data, where available.  Table 7 presents data on the utilisation of preferences under
the Generalised System of Preferences scheme for four markets: Canada, Eu ropean Union, Japan and
the United States.6  It shows the percentage of imports that are eligible for preferences under the
coverage rate, the percentage of eligible imports that enter the market under the preferential rate andthe total percentage of imports into the market from a particular LDC that receive preferences.  The
last figure, therefore, is one possible indicator of market access.
20. As can be seen from Table 7 the utility rates differ considerably across markets and exporters.
Most of the figures, with only a few exceptions, are rather low.  A principal reason for such low
numbers, especially for the European Union is that LDC exporters may be eligible to export to amarket under schemes other than the GSP scheme.  Nevertheless, the data presented in Table 7 is
indicative of a general issue which puts into question the sole reliance on tariff data as indicators for
LDC market access.
21. One aspect of preferential schemes, which points to the broader issue of the benefits of such
schemes, is the role of preferential rules of origin.  Products that are manufactured using importedcomponents are subject to the application of scheme specific rules of origin.  Such rules are, of
                                                     
6 The Generalised System of Preferences scheme is analysed in greater detail in WT/COMTD/W/93.WT/COMTD/LDC/W/31
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course, a necessary component of any scheme since they define eligibility.  However, it is argued that
in some cases the specificity, design and application of the rules make it difficult for LDC exporters to
benefit from such schemes.7
22. The prime example of how the eligibility schemes can condition market access is their
application in textiles and apparel.  As indicated in Figure 3 apparel products, both knitted and non-
knitted, rank amongst the most important exports of LDCs.  Manufacturing such products, however,
require a number of intermediate inputs, which in some cases are cheaper to source from another
country.  Use of these imported products could reduce the preference eligibility of the final product.
At the same time, restricting the use of such imports could have the effect of either raising the cost of
the final product so that it is not competitive, or making it unfeasible to manufacture the product since
the productive capacity required to manufacture the intermediate product is not available.  Preferentialrules of origin is a complex topic.  It has been argued that granting preferences, while constructing
eligibility criteria that make it difficult to use the preferences will not enhance market access.
V. PREFERENCE MARGINS
23. Tables 8 and 9 provide, respectively, a preliminary assessment of preference margins and the
potential for preference erosion in  agricultural and non-agricultural products.  The products presentedin the table were identified as those with the greatest difference between the MFN applied duty and
the LDC preferential duty in selected markets for which data is available.  The tables address two
issues.  First, whether or not the products with the greatest preference margin are of relevance to
LDCs.  Second, the potential for preference erosion that may arise from the implementation of
commitments undertaken within the context of the current round of negotiations.
24. In the context of the first issue the products cited in Table 9 correspond quite well to the
products identified in Figure 3.  Apparel and processed fish, which are two products of export interest
to LDCs have some of the highest preference margins in a number of markets.  Therefore, the
preference margins offered by some of the major developed markets are of significant importance to
LDC exporters.
25. In the context of the second issue, it is important to note that a thorough analysis of
preference erosion requires detailed information on the modalities for negotiating market access in
agricultural and non-agricultural products.  For example, without agreement on the base rates (may
not necessarily be the applied rates) or the approach to reducing tariffs it is difficult to accurately
specify the extent to which preference margins maybe eroded.  Nevertheless, Tables 8 and 9 do
indicate that in some cases the preference margin is quite substantial.  For example, for fish products
into the EU market the preference margin is 24 per cent.  In other markets, the preference margin is
sometimes only 5 per cent.
VI. INITIATIVES TO IMPROVE MARKET ACCESS
26. Recent improvements in market access are summarised in Table 10.  The changes in 2002/03
to include an increase in product coverage for preferential market access by Australia, Canada,
Iceland and Japan and changes in the rules of origin requirements.
                                                     
7UNCTAD (2001), "Improving Market Access for Least-developed Countries",
UNCTAD/DITC/TNCD/4, Geneva, UNCTAD.WT/COMTD/LDC/W/31
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Page 13Table 7:  GSP imports and utilization by Least-Developed Countries
CANADA EU JAPAN USA TOTAL
Beneficiary Country Potential
Cover
RateUtilization
RateUtility
RatePotential
Cover
RateUtilization
RateUtility
RatePotential
Cover
RateUtilization
RateUtility
RatePotential
Cover
RateUtilization
RateUtility
RatePotential
Cover
RateUtilization
RateUtility
Rate
Afghanistan 97.9 0.6 0.6 100.0 5.4 5.4 100.0 0.0 0.0 0.0 0.0 0.0 100.0 5.3 5.3
Angola 100.0 0.0 0.0 99.8 0.0 0.0 95.1 46.4 44.1 100.0 96.9 96.9 100.0 95.1 95.1
Bangladesh 10.3 74.2 7.7 100.0 50.8 50.8 64.5 76.6 49.4 1.9 69.0 1.3 57.3 51.6 29.5
Benin 0.0 0.0 0.0 99.4 0.1 0.1 0.0 0.0 0.0 84.9 97.8 83.0 99.3 1.0 1.0
Bhutan 100.0 0.0 0.0 81.8 15.5 12.6 100.0 100.0 100.0 7.1 56.7 4.0 18.0 39.5 7.1
Burkina Faso 86.4 100.0 86.4 99.8 0.1 0.1 53.9 26.1 14.0 94.0 91.2 85.8 99.6 0.7 0.7
Burundi 90.8 0.0 0.0 99.0 0.0 0.0 100.0 0.0 0.0 0.0 0.0 0.0 99.0 0.0 0.0
Cape Verde 0.0 0.0 0.0 99.9 0.4 0.4 100.0 0.0 0.0 18.0 57.7 10.4 88.6 2.0 1.7
Central African Republic 26.4 0.0 0.0 100.0 0.0 0.0 0.0 0.0 0.0 41.9 0.0 0.0 83.4 0.0 0.0
Chad 89.5 0.0 0.0 99.9 0.1 0.1 0.0 0.0 0.0 100.0 0.0 0.0 99.9 0.1 0.1
Cambodia 0.4 59.0 0.2 100.0 36.2 36.2 88.7 95.9 85.1 0.5 75.8 0.4 33.1 42.1 13.9
Comoros 0.0 0.0 0.0 100.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.2 0.0 0.0
Democratic Republic of the Congo 0.0 0.0 0.0 98.2 4.7 4.6 98.4 0.0 0.0 100.0 99.9 99.9 99.9 97.0 97.0
Djibouti 100.0 0.0 0.0 99.5 2.2 2.2 0.0 0.0 0.0 100.0 0.0 0.0 99.5 2.2 2.2
Equatorial Guinea 100.0 0.0 0.0 99.6 0.0 0.0 0.0 0.0 0.0 100.0 95.0 95.0 81.4 72.8 59.3
Eritrea 100.0 35.7 35.7 99.9 2.7 2.7 100.0 0.0 0.0 98.9 0.0 0.0 99.9 2.6 2.6
Ethiopia 93.2 0.0 0.0 98.0 7.8 7.6 99.6 57.7 57.4 50.9 87.0 44.3 96.5 9.9 9.5
Gambia 100.0 0.0 0.0 99.7 0.4 0.4 61.1 81.3 49.6 44.5 1.6 0.7 89.5 14.2 12.7
Guinea 80.8 10.8 8.8 100.0 0.8 0.8 0.6 0.0 0.0 94.4 30.8 29.1 95.4 1.1 1.1
Guinea-Bissau 100.0 0.0 0.0 100.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0 0.0 0.0
Haiti 26.0 69.4 18.0 96.5 53.6 51.7 75.9 13.4 10.2 6.5 13.8 0.9 8.5 25.0 2.1
Kiribati 100.0 0.0 0.0 100.0 27.4 27.4 0.0 0.0 0.0 100.0 30.7 30.7 2.2 27.8 0.6
Lao People's Democratic Republic 4.9 51.4 2.5 100.0 58.3 58.2 99.2 91.2 90.5 0.0 0.0 0.0 98.7 59.5 58.7
Lesotho 0.0 0.0 0.0 100.0 32.1 32.2 0.0 0.0 0.0 0.1 27.7 0.0 3.1 32.0 1.0
Liberia 0.0 0.0 0.0 35.1 1.2 0.4 65.8 0.0 0.0 0.0 0.0 0.0 35.2 1.2 0.4
Madagascar 9.4 33.8 3.2 98.3 0.9 0.9 8.5 5.8 0.5 3.3 83.1 2.7 68.2 2.0 1.4
Malawi 99.2 97.2 96.4 86.0 4.8 4.1 100.0 99.4 99.4 78.7 66.6 52.5 84.1 22.0 18.5
Mali 99.3 1.7 1.7 99.3 3.9 3.9 100.0 0.0 0.0 85.6 50.0 42.8 98.2 7.3 7.1
Mauritania 23.7 0.0 0.0 100.0 0.0 0.0 88.1 97.7 86.1 97.4 0.0 0.0 95.1 37.5 35.6WT/COMTD/LDC/W/31
TN/MA/S/11
Page 14CANADA EU JAPAN USA TOTAL
Beneficiary Country Potential
Cover
RateUtilization
RateUtility
RatePotential
Cover
RateUtilization
RateUtility
RatePotential
Cover
RateUtilization
RateUtility
RatePotential
Cover
RateUtilization
RateUtility
RatePotential
Cover
RateUtilization
RateUtility
Rate
Maldives 6.9 99.2 6.9 99.9 26.2 26.2 8.5 79.5 6.8 0.0 0.0 0.0 73.8 28.1 20.7
Mozambique 100.0 0.0 0.0 99.8 0.1 0.1 0.0 0.0 0.0 96.7 100.0 96.7 95.1 1.3 1.3
Myanmar 0.0 0.0 0.0 0.0 0.0 0.0 38.6 80.6 31.1 0.0 0.0 0.0 38.6 80.6 31.1
Nepal 45.4 77.4 35.1 100.0 71.3 71.3 99.7 80.1 79.9 4.7 90.7 4.2 44.9 74.1 33.3
Niger 81.1 1.3 1.0 99.5 3.1 3.0 90.4 8.8 7.9 87.0 11.6 10.1 95.7 4.7 4.5
Rwanda 91.7 0.0 0.0 97.7 0.0 0.0 3.2 100.0 3.2 99.8 78.9 78.7 94.6 9.0 8.5
Samoa 85.9 0.3 0.3 100.0 36.3 36.2 93.7 0.0 0.0 30.9 72.2 22.3 57.5 41.0 23.6
Sao Tome and Principe 76.7 0.0 0.0 99.9 0.0 0.0 0.7 0.0 0.0 96.3 0.0 0.0 85.9 0.0 0.0
Senegal 15.2 56.3 8.5 73.6 0.4 0.3 58.1 94.9 55.1 98.6 8.5 8.4 73.8 2.0 1.5
Sierra Leone 68.8 22.2 15.3 100.0 6.6 6.6 10.7 0.0 0.0 60.4 20.1 12.1 84.5 9.8 8.3
Solomon Islands 69.7 0.0 0.0 100.0 0.0 0.0 22.4 100.0 22.4 79.4 4.2 3.3 28.8 71.1 20.5
Somalia 50.7 0.0 0.0 100.0 0.0 0.0 0.0 0.0 0.0 46.6 0.0 0.0 80.6 0.0 0.0
Sudan 99.7 0.0 0.0 53.4 0.0 0.0 0.0 74.5 0.0 0.0 0.0 0.0 7.4 0.4 0.0
United Republic of Tanzania 99.3 12.4 12.3 96.6 0.9 0.9 28.1 83.8 23.5 77.0 62.2 47.9 92.5 2.9 2.7
Togo 12.2 79.6 9.7 99.8 4.0 4.0 100.0 9.7 9.7 99.9 99.5 99.4 99.8 21.6 21.6
Tuvalu 100.0 0.0 0.0 100.0 12.2 12.3 0.0 0.0 0.0 0.0 0.0 0.0 100.8 12.0 12.1
Uganda 92.7 83.8 77.7 99.9 0.8 0.8 0.1 0.0 0.0 95.8 45.4 43.4 94.5 1.0 0.9
Vanuatu 100.0 100.0 100.0 96.8 0.6 0.6 0.6 100.0 0.6 100.0 0.0 0.0 5.7 12.6 0.7
Yemen 100.0 0.0 0.0 96.3 76.4 73.6 0.4 39.2 0.2 100.0 38.7 38.7 84.8 43.3 36.7
Zambia 79.1 94.7 75.0 88.5 1.0 0.9 100.0 25.4 25.4 82.8 71.1 58.9 93.4 12.9 12.0
Averages 59.3 60.6 35.9 58.8 45.6 26.8 39.8 30.7 12.2 36.4 66.6 24.2 46.9 46.8 22.0
Source:  UNCTAD.
Notes:   Product coverage is defined as the ratio between imports that are covered by preferential trade arrangements and total dutiab le imports from the
beneficiary countries.
Utilisation rate is defined as the ratio between the amount of imports actually receiving preference and the amount of dutiable  imports eligible for preferences.
Utility rate is defined as the ratio of imports actually receiving preference and all dutiable imports (covered or not).WT/COMTD/LDC/W/31
TN/MA/S/11
Page 15
Table 8:  Summary of Preference Margins by Country for Agricultural Products (HS Chapters)
Agriculture Products
HS
ChaptersPreference
Margin (%) Product Descriptions
05 5  Products of animal origin, not elsewhere specified or included
07 5  Edible vegetables and certain roots and tubers
08 5  Edible fruit and nuts; peel  of citrus fruit or melons
11 5  Products of the milling industry; malt; starches; insulin; wheat gluten
12 5 Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or
medicinal plants; straw and fodder
13 5  Vegetable plaiting materials; vegetable products not elsewhere specified or included
17 5  Sugars and sugar confectionery
19 5  Preparations of cereals, flour, starch or milk; pastry cooks' products
20 5  Preparations of vegetables, fruit, nuts or other parts of plantsAustralia
22 5  Beverages, spirits and vinegar
02 11  Meat and edible meat offal
04 11 Dairy produce; birds' eggs; natural honey; edible products of animal origin, not
elsewhere specified or included
06 12.5 -  16 Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental
foliage
07 11 - 19.6  Edible vegetables and certain roots and tubers
08 12.5 Edible fruit and nuts; peel of citrus fruit or melons
15 11 Animal or vegetable fats and oils and their cleavage products; prepared edible fats;
animal or vegetable waxes
16 12.5  Preparations of meat
17 12.5  Sugars and sugar confectionery
19 14.5  Preparations of cereals, flour, starch or milk; pastry cooks' products
20 11.5 - 17  Preparations of vegetables, fruit, nuts or other parts of plants
21 12.5  Miscellaneous edible preparations
22 16  Beverages, spirits and vinegarCanada
24 12.5 - 13  Tobacco and manufactured tobacco substitutes
20 24 - 40  Preparations of vegetables, fruit, nuts or other parts of plants
22 32  Beverages, spirits and vinegarEuropean
Union
24 26 - 74.9  Tobacco and manufactured tobacco. Substitutes
04 19 - 25.0Dairy produce; birds' eggs; natural honey; edible products of animal origin, not
elsewhere specified or included
07 20 - 24.3 Edible vegetables and certain roots and tubers
08 28 - 29.8 Edible fruit and nuts; peel of citrus fruit or melons
15 18 - 19.1Animal or vegetable fats and oils and their cleavage products; prepared edible fats;
animal or vegetable waxes
17 18.3  Sugars and sugar confectionery
20 22.4 - 29.8  Preparations of vegetables, fruit, nuts or other parts of plants
21 20-30.6  Miscellaneous edible preparations
22 35  Beverages, spirits and vinegarUnited States
24 18.1- 46.9  Tobacco and manufactured tobacco substitutesWT/COMTD/LDC/W/31
TN/MA/S/11
Page 16
Table 9:  Summary of Preference Margins by Country for Non-agricultural Products (HS
Chapters)
 Non-Agricultural Products
 HS ChaptersPreference
Margin
(%) Product Description
39 5  Plastics and articles thereof
41 5  Raw hides and skins (other than furskins) and leather
42 5 Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles
of animal gut (other than silk-worm gut)
44 5  Wood and articles of wood; wood charcoal
48 5  Paper and paperboard; articles of paper pulp, of paper or of paperboard 
53 5  Other vegetable textile fibres; paper yarn and woven fabrics of paper yarn 
56 5  Wadding, felt and non-woven; special yarns; twine, cordage, ropes and cables and articles thereof
57 15  Carpets and other textile floor coverings
61 17 -25  Articles of apparel and clothing accessories, not knitted or crocheted
62 25  Articles of apparel and clothing accessories, not knitted or crocheted
63 15  Other made up textile articles; sets; worn clothing and worn textile articles; rags 
64 10  Footwear, gaiters and the like; parts of such articles
69 5  Ceramic products 
71 5 Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with
precious metal, and articles thereof; imitation jewellery; coin 
85 5 Electrical machinery and equipment and parts thereof; sound recorders and reproducers,
television image and sound recorders and reproducers, and parts and accessories of such articles Australia   
 
  
 
  94 5 Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps
and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-
plates and the like; prefabricated buildings
58 17  Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery
59 25 Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for
industrial use
61 20  Articles of apparel and clothing accessories, knitted or crocheted
62 17  Articles of apparel and clothing accessories, not knitted or crocheted 
63 17 - 19  Other made up textile articles; sets; worn clothing and worn textile articles; rags
64 17 - 20  Footwear, gaiters and the like; parts of such articles
89 20 - 25  Ships, boats and floating structuresCanada  
   
 95 18  Toys, games and sports requisites; parts and accessories thereof
16 24-26  Preparations of fish or of crustaceans, molluscs or other aquatic invertebrates
30 22-23  Pharmaceutical productsEuropean
Union
87 22  Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof
16 15-35  Preparations of fish or of crustaceans, molluscs or other aquatic invertebrates
30 15  Pharmaceutical products
42 20 Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles
of animal gut (other than silk-worm gut)
67 17 Prepared feathers and down and articles made of feathers or of down; artificial flowers; articles
of human hair
69 15-30  Ceramic products
70 15 -38  Glass and glassware
81 15  Other base metals; cermets; articles thereof
82 20  Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal
86 15 Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track
fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signallingequipment of all kinds
87 25  Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof
90 16 Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical
instruments and apparatus; parts and accessories thereofUnited States
 
   
 
  91 16-18 Clocks and watches and parts thereof
96 32-110 Miscellaneous manufactured articlesWT/COMTD/LDC/W/31
TN/MA/S/11
Page 17Table 10:  Summary of initiatives to improve market access for LDCs8
Member Market Access for LDCs WTO Document
Reference
(Notifications in bold)
Argentina
(Mercosur)In May 2000, Argentina (on behalf of Mercosur) announced that it provided tariff preferences for LDCs
under the GSTP scheme, and following completion of the ratification process for the offers made in thecontext of the second round of GSTP negotiations, they would be in a position to enhance their preferences.WT/GC/M/55 (2000)
Australia In October 2002, Australia announced duty and quota-free access for all products originating in LDCs.  This
would be effective for all LDC exports entering the Australian market from 1 July 2003.  There are no
exclusions nor are there any phase-out periods for the removal of tariffs and quotas.  Earlier in May 2000,
Australia provided duty and quota-free access on 93.2 per cent of LDC exports to its market.  In terms of
tariff rates, about 84 per cent of tariff lines were duty-free for LDCs.  In 1997, 98 per cent of LDC exports
entered duty-free.WT/COMTD/LDC/M/30
(2003)
WT/GC/M/55 (2000)
WT/LDC/HL/M/1 (1997)
WT/TPR/S/104
Bulgaria Continued to grant, duty and quota-free access to its market for a wide range of products from LDCs.  In
1997, all LDC exports entered duty-free.WT/GC/M/55 (2000)
WT/LDC/HL/M/1 (1997)
Canada Effective 1 January 2003, Canada added 903 tariff lines, at HS 8 digit level, to the list of duty-free tariff
items for 48 LDCs.  With the exception of dairy, poultry and egg products, Canada provides duty and quotafree access for all imports from LDCs.  Canada also introduced new rules of origin requirements that apply
to the covered textile and apparel products entering the Canadian market from LDCs.  In September 2000,
570 tariff lines at HS 8 digit level were added to the list of duty-free items.  Prior to these announcements,
duty-free access to LDC exports covered 90 per cent of the tariff lines.  Canada had also liberalized rules of
origin requirements that applied to LDC imports in August 2000.  Canada from 1 January 1998, movedbeyond 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.WT/COMTD/N/15/Add.1
(2003)
WT/COMTD/N/15  (2000)
WT/GC/M/55 (2000)
WT/COMTD/LDC/M/11(1998)
Chile In May 2000, the Government was in the process of evaluating preferential treatment for products
originating in LDCs within its legal requirements.  It  also announced its intention to consider or finalize
initiatives of market access for LDCs at the HLM in 1997.WT/GC/M/55 (2000)
WT/LDC/HL/M/1 (1997)
Czech Republic Czech Republic informed Members of its existi ng GSP scheme, offering duty-free and quota-free access to
all LDCs' exports.  In July 2001, copies of a letter receiv ed by the Director-General, with information of its
preferential market access for LDCs was circulated to the Sub-Committee.WT/COMTD/LDC/M/25
(2001)
WT/GC/M/55 (2000)
                                                     
8 Adapted from WT/COMTD/LDC/W/28 and TN/MA/S/7.  Updated information or notifications of market access measures in favour of LDC s have been received in
2002/3 from, Australia, Canada, Iceland and Japan.WT/COMTD/LDC/W/31
TN/MA/S/11
Page 18Member Market Access for LDCs WTO Document
Reference
(Notifications in bold)
Egypt Following the HLM, Egypt through the GSTP in 1998 notified tariff reductions at HS 8 digit level, ranging
from 10 per cent to 20 per cent of existing applied duties, for 77 products of export interest to LDCs, and
provided duty-free access, for about 50 products imported into Egypt.  In addition, Egypt bound customs
duties, with a 10 per cent reduction for industrial products imported from LDCs.WT/COMTD/W/47&
Add.1
WT/LDC/HL/M/1 (1997)
European Union The EC notified the Everything but Arms (EBA) initiative.  Duty-free and quota-free market access for all
goods (except arms), was accorded to LDCs effective from 5 March, 2001.  A transition period of between2002 and 2009 was provided for the phasing in of sugar, rice and bananas.  Earlier, in 2000, about 99 per
cent of LDCs exports by value entered the EU mark et duty-free.  At the HLM in 1997, the EC announced
the extension of preferences under the Fourth ACP-EC  Convention to non-ACP LDCs that was notified and
effective from 1 January 1998.  Rules of origin requirements were also simplified allowing for derogations
and promoting regional cumulation.WT/COMTD/N/4/Add.2
(2001)
WT/COMTD/LDC/M/12
WT/GC/M/55 (2000)
WT/COMTD/W/41
WT/LDC/HL/M/1 (1997)
Hong Kong, China Application of duty & quota-free access on an MF N basis to imports from all sources including LDCs. WT/GC/M/55 ( 2000)
Hungary Hungary informed Members of its existing GSP scheme, offering duty-free and quota-free access to all
LDCs' exports.  In July 2001, copies of a letter receive d by the Director-General, with information of its
preferential market access for LDCs was circulated to the Sub-Committee.  The Customs Law – 1996through legal guarantees, strengthened predictability of the preferential market access to LDCs.  Liberal
application of rules of origin requirements.WT/COMTD/LDC/M/25
WT/GC/M/55 (2000)
WT/LDC/HL/M/1 (1997)
Iceland On 29 January 2002, Iceland issued Regulation No.119/2002 implementing a law passed by Parliament in
May 2001 granting unilateral duty and quota-free market access for imports in essentially all products
originating in LDCs.WT/COMTD/N/17
India Preferences granted under SAPTA to LDC contract ing states. In 1997, India granted tariff concessions on
574 tariff lines exclusively to the LDC members of S AARC, and had removed quantitative restrictions on
180 lines exclusively in favour of SAARC LDCs.  Further, under the existing GSTP, India provided
preferential access to seven LDCs, namely, Bangladesh, Tanzania, Benin, Guinea, Haiti, Mozambique andSudan.  Under the Bangkok Agreement, Bangladesh was given preferential access, and Myanmar and Nepal
had preferential access to India under bilateral agreements.WT/LDC/HL/M/1 (1997)
Indonesia Announced intention to consider initiatives to improve market access for LDCs at th e HLM in 1997. WT/LDC/HL/M/1 (1997)WT/COMTD/LDC/W/31
TN/MA/S/11
Page 19Member Market Access for LDCs WTO Document
Reference
(Notifications in bold)
Japan Effective 1 April 2003, Japan expanded the coverage of its GSP scheme, especially duty-free and quota-free
treatment for LDCs' products.  The number of LDCs' ag ricultural and fishery products with duty-free and
quota-free treatment increased to around 500 items from around 300 existing items.  The additional 200
items include prawns and frozen fish fillets.  As fo r LDCs' industrial products, almost all items are already
covered by duty-free and quota-free treatment.  This expansion increases the duty and quota-free imports
from LDCs, from around 80 per cent to over 90 per cent.  Earlier in 2002, Senegal had been added to the list
of LDC beneficiaries under Japan's GSP Scheme.  Changes to ceiling quotas for industrial products were
also notified. In 2001, Japan's GSP Scheme, was extended, together with changes, by ten years until
31 March 2011.  Following on an earlier proposal, from 1 April 2001, a further 360 products (at HS 9 Digit)from LDCs would be eligible for duty-free and quota -free treatment.  About 99 per cent of industrial
products, including textiles and clothing, would be covered by the scheme.WT/COMTD/N/2/Add.12
(2003)
WT/COMTD/N/2/Add.1-
11 (2002)
WT/COMTD/29
WT/LDC/SWG/IF/12
(2001)
WT/GC/M/55 (2000)
Korea, Rep. Of In January 2000, Korea notified preferential duty-free access on 80 items (HS 6-digit) originating from and
of major export interest to LDCs effective from 1 January 2000.  In May 2000, it indicated that it would
consider further expanding its existing preferential tariff regime for LDCs.WT/COMTD/N/12/
Rev.1
WT/LDC/HL/M/1 (1997)
WT/GC/M/55 (2000)
Malaysia Announced intention to consider initiatives to improv e market access for LDCs at th e HLM in 1997. WT/LDC/HL/M/1 (1997)
Mauritius Notified effective September 1998, duty-free access for five tariff lines originating from LDCs.  The
products comprise certain crustaceans;  guavas, mangoe s, mangosteens; axes and billhooks;  handsaws and
files.WT/COMTD/W/53
WT/LDC/HL/M/1 (1997)
Morocco Morocco notified duty-free access, for 33 African LDCs. Effective 1 January, 2001, duty-free access was
accorded to 61 products (at HS 4 to 10 digit level) originating in and consigned from the African LDCs.
Debt to Morocco, owed by African LDCs, had also been  cancelled.  This measure was in fulfilment of the
proposal made by Morocco at the HLM in 1997.WT/LDC/SWG/IF/18 and
G/C/6 (2001)
WT/LDC/HL/M/1 (1997)
New Zealand New Zealand in November 2000, notified its decision  to offer duty and quota-free access to all imports from
LDCs effective from 1 July 2001.  Prior to this, in 1999, 96.7 per cent of its tariff lines and 99.3 per cent of
its imports from LDCs entered duty-free.WT/COMTD/27
WT/GC/36
WT/GC/M/55 (2000)WT/COMTD/LDC/W/31
TN/MA/S/11
Page 20Member Market Access for LDCs WTO Document
Reference
(Notifications in bold)
Norway In May 2001, Norway announced still further improvements  in their preferential scheme in favour of LDCs.
With effect from 1 July 2002, Norway would offer du ty-free and quota-free treatment to all LDCs' exports
(except arms) with no transition arrangements for any product.  Earlier in 2000, amendments and
improvements to Norway's GSP scheme were notified Norway accorded duty-free and quota-free access toall industrial and agricultural imports from LDCs covered by the GSP programme, with the exception of
flour, grains and feeding stuffs.  Rules of origin requirements were revised and simplified. Following
harmonization in the application of rules of origin with the EC and Switzerland, from 1 March 1998,
bilateral cumulation was permitted and the possibility of future diagonal cumulation of origin was being
considered.  At the HLM, Norway announced that it  had on an MFN basis accelerated its Uruguay Round
tariff cuts on agricultural products by implementing them from 1 January 1995 instead of 1999.  It had also
phased out almost all restrictions on text iles and clothing by 1997-98 instead of 2004.WT/COMTD/M/34 (2001)
WT/COMTD/N/6/
Add.1 - 2
WT/GC/M/55 (2000)
WT/LDC/HL/M/1 (1997)
Poland Since 1990, Poland has applied preferential treatment for products originating from LDCs and in May 2000,
it announced that it was examining autonomous improvem ents to the existing preferential system with a
view to providing duty-free and quota-free market access for essentially all products originating in LDCs, in
conformity with national legislation and international agreements.WT/GC/M/55 (2000)
Singapore Singapore notified at the HLM, duty-free treatment on 107 items (HS 6 digit) of export interest to LDCs in
addition to the almost duty-free regime accorded on an MFN basis.WT/LDC/HL/M/1 Annex
1 (1997)
Slovak Republic The Slovak Republic informed Members of it s existing GSP scheme, offering duty-free and quota-free
access to all LDCs' exports.  In July 2001, copies of a letter received by the Director-General, with
information on its preferential market access scheme for LDCs was circulated to the Sub-Committee.  Itconfirmed in May 2000, that its GSP system  would be maintained in the future.WT/COMTD/LDC/M/25
(2001)
WT/GC/M/55 (2000)
Slovenia In May 2000, Slovenia announced that it was prepared to provide tariff and quota-free access for essentially
all products originating in LDCs, independent of WTO membership, consistent with its domestic
requirements and international agreements under its newly established preferential scheme.  The
Government had taken this general decision which would be confirmed through decrees issued.WT/GC/M/55 (2000)WT/COMTD/LDC/W/31
TN/MA/S/11
Page 21Member Market Access for LDCs WTO Document
Reference
(Notifications in bold)
Switzerland Switzerland notified its proposal designed to grant duty-free access in the medium term for all products from
LDCs.  The revision of the GSP with effect from  1 January 2002, would provide LDCs the phased removal
of all remaining customs duties.  Duties were reduced by an average of 30 per cent on 1 January 2002.
Subsequently, from 1 April 2004, an additional reduction of an average of 30 per cent will be granted toLDCs.  Market access for LDCs would be reviewed in 2005 before the expiry of the current GSP scheme.  In
1997, Switzerland had extended its GSP scheme for ten years.  Since 1 March 1997, LDCs were able to
benefit from zero tariffs for all industrial and most ag ricultural products.  Some 98 per cent of LDC products
entered Switzerland duty-free under its notified preferential scheme and improvements thereof.  Rules of
Origin for goods benefiting from preferential access had also been simplified.  Switzerland had harmonisedits regulations with the European Union and in the near future materials originating from Switzerland but
also from the European Union and Norway would enjo y the right of cumulation treatment.  Under the new
rules of origin, regional economic groupings in developing countries also enjoyed the right of cumulation
treatment.WT/COMTD/N/7 &
Add.1 (2002)
WT/COMTD/W/34
WT/GC/M/55 (2000)
WT/LDC/HL/M/1 (1997)
Thailand At the HLM in 1997, announced tariff preferences on 74 product groups (at the 6-digit H.S. level), through
which some products would be exempted from import duty and others would be given a margin of
preference of 20 per cent from the applied rates.  This would be subject to an annual review process.WT/LDC/HL/M/1(1997)
Turkey Notified additional preferential tariff rates for imports from LDCs effective from 1 January 1998.  These
unilateral preferential rates apply to 556 products at the HS 12 digit level.  All these products except coffee,are given duty-free access.WT/COMTD/W/39 &
Corr.1
WT/LDC/HL/M/1 (1997)
United States The United States adopted the African Grow th and Opportunity Act (AGOA) in May 2000 for Sub-Saharan
Africa.  Thirty-four Sub-Saharan countries (including 23 LDCs), were designated as beneficiaries under
AGOA in October 2000, and can avail new GSP benefi ts for 1835 tariff lines as from December 2000.
Earlier improvements under the GSP system, included duty-free access offered on nearly half the 9000
products in the US harmonized tariff schedule.  Improvements to the scheme were notified with the addition
of 1,783 tariff lines to GSP treatment for LDCs as from 30 May 1997, under the GSP Renewal Act of 1996.Moreover, at the end of the Uruguay Round implementation period, some 70 per cent of US tariff lines
would be subject to MFN rates of 5 per cent or le ss and MFN duty-free treatment would cover more than
40 per cent of tariff lines.WT/COMTD/N/1/Add.3
WT/GC/M/55 (2000)
WT/COMTD/N/1/Add.2
WT/LDC/HL/M/1 (1997)
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