WORLD TRADE
ORGANIZATIONWT/COMTD/IF/28
27 March 1998
(98-1235)
Committee on Trade and Development
Integrated Framework for Trade-Related
Technical AssistanceOriginal:  English
TRADE-RELATED TECHNICAL ASSISTANCE NEEDS-ASSESSMENT
PRESENTED BY THE LAO PEOPLE'S DEMOCRATIC REPUBLIC
INTEGRATED RESPONSES BY IMF, ITC, UNCTAD,
UNDP, WORLD BANK AND WTO1
LAO PEOPLE'S DEMOCRATIC REPUBLIC
                                                     
1Published pursuant to the provisions of paragraph 5 (e) of the Integrated Framework for Trade-Related
Technical Assistance (WT/LDC/HL/1/Rev.1).WT/COMTD/IF/28
Page 2
A. Trade Policy
(a) What are the sectors that you believe have unexploited or underexploited export
potential?
Sectors with unexploited export potential:
- sericulture production (agriculture);
- handicrafts including silver works and furniture;
- energy and hydroelectricity;
- textiles and clothing;
- agro-processing industry;- livestock (animal husbandry);
- tourism sector (under-exploited).
mining sector (raw material for construction).
(b) Could you please define your country's pers pective of the reasons for any changes in the
structure and direction of exports and imports?
The main reasons for changes intervening in the export-import structure:
- the growing level of the country's economic development;
- the new orientation of the national economy is to liberalize its economy in the context
of globalization;
- the current inflow of foreign direct investment in sectors which have export potential;
- the growth of industrial production;
- the large trade deficit of Laos compels the government to focus on an increase in
exports;
- limited resources in producing traditional products;- price fluctuation on unprocessed products compels the government to focus more
than in the past on the production of processed products.
(c) What have been the objectives of trade po licy in the most recent period, compared to,
say, two decades ago?
- To shift from the production for subsistence to the production for export markets;
- to integrate the national economy to that of the region and world economy;
- to encourage local and foreign investors to produce for exports;
- to improve the living conditions for the people, by introducing new trading
techniques.
- tariff reduction, administrative procedures;- focus on export of finished products rather than only raw materials;
- draft, update, compliment trade-related laws and regulations.
(d) What are the Ministries in charge of trade policy matters, including formulation,
implementation, enforcement and monitoring?  How is coordination made?  What are
the respective roles of the relevant Ministries (give particular attention to tariff policies
and other policies directly affecting exports and imports of goods and services)?
Line ministries in charge of commercial policy (its main roles and tasks):
(i) Ministry of Commerce:
- To undertake the research and lay a plan on the implementation on the supervision of
commercial activities through out the country;WT/COMTD/IF/28
Page 3
- to execute the Party's and Government's policies and plans in particular making and
enforcing commercial policy;
- to develop regulations and laws for its sector.
(ii) State Planning Committee:
- To undertake research on regulatory rules, and various procedures concerning
planning, statistical elaboration, and disseminate them to different sectors, throughNational Statistic Centre;
- to control and inspect follow-up activities of different sectors in the execution of the
above mentioned duties.
(iii) Ministry of Finance:
- To be responsible for the centralized and uniform management of the finance sector
in the country;
- to promote the development of the production and business and progressively
improve the people's living conditions;
- to organize the budget revenue collection and do the payments into the State budget
pursuant to the laws, regulations and principles in force;
- to coordinate with the Bank of the Lao PDR on organizing the control of the foreign
currencies in circulation.
(iv) Ministry of Agriculture and Forestry:
- To shift from a subsistence and semi-subsistence economy to a market economy, and
ensure that sufficient cereal and food are based on general agro-forestry and water
resource development;
- to utilize advance science and technology to support and expand production in its
sector development and in each region.
(v) Ministry of Industry-handicrafts:
- To take necessary measures, and establish policies for promoting the production of
consumer goods, and export goods and for protecting domestic production and
handicrafts;
- to lay the plans, the implementation and supervision of the sectors concerning the
industry and handicraft works of the country.
(vi) Science Technology and Environment Organization (STENO)
(vii) Public Health Ministry controlling sanitary condition on import of foodstuff.
(viii) Prime Minister's Office (coordination role)
- Foreign Investment;
- foreign Economic Cooperation;
- tourist Authority
In addition, the Ministry of Commerce has put in front of the Prime Minister's Office the
proposal to set up an interministerial committee for the accession process of Laos to WTO.WT/COMTD/IF/28
Page 4
(e) How are the private sector and academic in stitutions associated with the formulation
and conduct of trade policy?
The private sector and academic institutions associated with the formulation and conduct of
trade policy through its participation in official meetings, workshops, seminars relating to trade
policy.  And in the formulation of the trade and trade-related policies the government consults with
the National Chamber of Commerce and Industry and the National Institute for the EconomicStrategic Research under the State Planning Committee.
(f) What are the institutions in your country th at can play a role in implementation of a
trade-related project at the local level?  State their respective roles.
The main institutions that can play a role in implementation of a trade-related project at the
local level (provincial level):
(i) Public Sector Institutions:
- The Ministry of Commerce is the focal point for the implementation of trade-related
projects at the national level;
- at the provincial level the governor plays a vital role in all activities of related line
ministries.
(ii) Private Sector Institutions:
- National Chamber of Commerce and Industry;
- Provincial Chamber of Commerce and Industry;
- Business Associations such as Lao Coffee Export Association and Lao Garment
Association.
(g) What are the main laws and regulations de aling with trade policy - on exports and
imports?  Please provide a short description of each.
1. The main laws and regulations dealing with trade policy (imports&exports):
(i) Business Law (No 3/94/NA, 18/7/94).  Th e Law defines types of business entities
related to exports and imports.
(ii) Customs Law (No 4/94/NA, 18/7/94) that provides rules and principles on the import
export and circulation of commodities within the Lao PDR and the Decree(No 01/PM, 1/1/95) for implementation of this customs Law (implemented by
Custom Department, Ministry of Finance).
(iii) Tax Law No 4/95/NA, 14/10/95 and its Decree No.72/PM, 22/3/96 mentioned about
tax system implemented by Tax Department, Ministry of Finance.
(iv) Law on the Promotion and Management of Foreign Investment in the Lao PDR
(No 01/94, dated 14/3/94) implemented by Foreign Investment Management
Committee, (FIMC).WT/COMTD/IF/28
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(v) Decree of the Council of Ministers No. 53 PCM, dated 7/9/90 Governing the
Management of Foreign Exchange and Precious Metals implemented by the Bank of
the Lao PDR.
2. Ministerial Regulations on Import-Export:
Commercial Regulation indicate the criteria or conditions for import and export business in
particular.  To be able to run export and import, businessmen have to register at the ministry ofcommerce.  Goods to be imported or exported must be complied with those listed in commodities
groups allowed on the date of registration.
(h) What are the main instruments of trade policy - on exports and imports?  Please
elaborate (e.g. on import restrictions, the questions might be: on what products are there any
import bans; on what products are there quantitative import restrictions; licensing
requirements, etc.; what is the highest tariff ra te currently in use; are there any excise taxes,
other "domestic" taxes that are applied differenti ally to imported goods, or to goods of a type
that are principally imported?).
The main instruments of trade policy on import and export:
In the future Ministry of Commerce will draft more its trade policies (measures) for
implementing the international treaties or conventions.  The Ministry of Commerce currently
coordinates with Customs and Tax Department in matters of trade policy.
(i) On Exports:
- not all of customs duties have been eliminated;
- step by step elimination of export licensing.  There will be no export import licensing
for garment products in the near future;
- a few export controls in export of logs but not finished wood products.
(ii) On Imports:
- import tariff will be the principle instrument of trade policy on imports in the future.
The prevailing basic tariff rates are 5, 10, 15, 20, 25, 30, 35 and 40 percent.  Most of
the import items fall in the customs duty slab of 5-10 percent;
- tariff exemptions are provided for goods imported for investment projects;- excise taxes for luxury products such as cars of 92 percent;
- import licensing is needed for statistical purpose.
- all imported and exported goods into and from the territory of the Lao PDR are
subject to import and export permits.
(i) In case you are a WTO Member or are in the process of acceding, how is your country
preparing itself to comply  with the WTO Agreements?
(i) Although we have just applied for our membership in WTO in July 1997 we are
doing research on all the WTO Agreements.
(ii) We are in the process of improving our human and institution capacity.  This includes
the training of personnel in various aspects to enable us to deal with WTO matters in
the future.WT/COMTD/IF/28
Page 6
(iii) Anticipating Laos' observer status, we are making our efforts to be able to attend as
many meetings as possible and to collect all WTO related information.
(iv) We understand that we must bring all our necessary relevant laws and regulations in
conformity with our future obligations under the WTO Agreements.  For this purpose
necessary assistance from various international organizations/agencies is being
sought for technical assistance.
(j) What is the state of familiarity with the WTO framework:
- among government and government-related agencies?
- in the private sector?
Neither the government or government-related agencies, nor the private sector, is very
familiar with the WTO framework.  Although a number of civil servants, mainly from the Ministry of
Commerce, have been familiarized with the WTO framework through regional or national training,
seminars, workshops as well the WTO former training courses, there is however substantial need forfurther training.
(k) What are your technical assistance requirements with regard to your compliance with
the WTO Agreements?
For the effective and efficient participation in WTO as an active member, and to enable us to
implement the obligations and commitments that the Lao PDR has to undertake under various WTOAgreements, technical assistance is needed, particularly in the area of:
- expertise (training, consultant) to assist the Lao government in adapting its trade
related legislation to conform with WTO related regulations;
- training of government officials to enhance their capacity to design Lao trade policy;
- institution capacity building.
(l) In which specific areas of the WTO Agreements do you have technical assistance needs
(e.g. market access, agriculture, rules (anti-dumpin g, subsidies, import licensing, rules of origin,
safeguards etc.), TBT and SPS, Services, TRIPs)?
Laos has technical assistance needs in all the WTO Agreements for training its official
dealing with trade matters in the following areas:
- Multilateral trade negotiations;
- Bilateral trade negotiations;
- Competition policy;
- Agriculture;
- Textile and clothing;- Market access;
- Customs valuation;
- Subsidies;
- TRIPS and TRIMs;
- Import licensing;
- Services;
- Notification;- Dispute settlement;
- SPS;
-T B T ;
- Antidumping.WT/COMTD/IF/28
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(m) What is your assessment of your existing trade analysis and negotiating capacities, both
multilateral and bilateral, in areas already co vered by the WTO Agreements and other trade-
related areas, e.g. competition policy and trade and environment?
In view of very poor access to trade-related information, Laos' trade analysis capacities are
very low.  Laos has very low level of trade negotiating capabilities.
B. Obstacles to trade expansion
Obstacles to trade encompassing problems in export markets, infrastructure, human
capacities, institutional bottlenecks, trade financing problems and gaps in trade information can
inhibit a least-developed country from taking full advantage of trading opportunities.
Supply constraints, including institutional bottlenecks
(a) What are the main bottlenecks inhibiting the development of sustained export capacity
of goods and services (e.g. customs facilitation, freight charges, quality management,
elimination of cumbersome legal and administrative procedures, paucity of human skills, accessat international prices to imported inputs, or inadequate telecommunication, port and transport
facilities etc.)?
- Land-locked countries may face addition al problems, such as having to ship
using costly or unreliable transport and ports systems.  In case this applies to
your country, please indicate such problems.  What kind of technical assistancewould help you work out these problems?
As a landlocked country, the main bottlenecks inhibiting the development of sustained export
capacity of goods and services are:
- high freight charges for air transport and transit of goods;
- poor infrastructure;- lack of specialized education and training, research and development;
- lack of incentives (especially high interest rates);  lack of export financing;
- lengthy and outdated customs clearance procedures;
- inadequate supply and comparatively high  cost of telecommunication services;
- constraints in low export production caused by shortage of skilled management
personnel and skilled labour;
- lack of information on export markets and prices;  and market access problems;
- lack of laboratories for quality control.
(b) Are there any institutional bottlenecks, wh ich may impede the efficient conduct of your
country's trade policies?  Provide details. For example, what are the problems perceived by thedifferent actors, e.g. exporters, producers, service providers (banks, insurance companies,
quality control, transporters etc), professional associations and Ministries?  Are problems
mainly perceived in the area of:
(i) human resources
(ii) management of the institutionWT/COMTD/IF/28
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(iii) financial and material resources
(iv) communication
The institutional bottlenecks that impede the efficient conduct of the country's trade policies
are:
- lack of coordination among institutions/agencies dealing with trade policy;
- lengthy administrative procedures that lead to cost escalation for producers and
exporters;
- exporters frequently complain of the shortage of financial resources.  Financial
constraints by lending institutions (short-term lending);
- inadequate human resources in the collection and dissemination of market
information; lack of finance and skilled manpower to carry out market research
mission;
- customs system and department are in need of upgrading.
The efficient of conducting trade policy has been adversely affected by problems existing in
the areas of human resource management, financial and material resources and communication.
(c) What are the main bottlenecks to export diversification?
The main bottlenecks to export diversification are:
- lack of marketing information; inadequa te information regarding the nature and
pattern of demand in various export markets;
- lack of export credit to diversify production and technology;
- prohibitive tariff and non-tariff barriers in export markets;
- lack of entrepreunial drive;- limited export supply.
(d) If investment in the production of goods a nd services is inadequate, what are the main
reasons?  Please elaborate them (e.g. structural co nstraints, difficulties in attracting foreign
investment, limited enterprise development, financing, lack of appropriate technology, etc)
There are a number of reasons for the inadequacy of investment in the production of goods
and services such as:
- no clear industrial policy;
- difficulty in attracting foreign investment, primarily due to lack of adequate
infrastructure facilities, shortage of skilled labour, lack of accurate data;
- inadequate bank financing facilities in both local and foreign currencies;- lack of long term finance, high domestic interest rates.
(e) Is there a national policy to encourage export-related investment opportunities? Please
elaborate.  What arrangements are in place fo r reviewing, drafting and negotiating contractual
arrangements with foreign investors?
In keeping with its export oriented policy, the Lao PDR has implemented a number of
policies designed to encourage export related invest ment.  In addition to the implementation of import
liberalization policy to stimulate investment in production for export by removing the anti-export bias,
duty and tax concessions have been put in place, import of inputs for export production are exempt
from customs duties and taxes, administrative procedures eased.WT/COMTD/IF/28
Page 9
As a landlock country and a cross-country in the region, studies to set up an EPZ (Export
Processing Zone) or FTA (Free Trade Area) in the centre of the country namely Khammouan and
Savannaket, are being conducted.
(f) What are the main obstacles to the transfer, development and acquisition of technology?
Is there any national policy/strategy in this area?  Please elaborate.
The main obstacles main obstacles to the transfer, development and acquisition of technology
are:
- shortage of basic infrastructure (telecommunications);
- lack of technology information;
- lack of investment in the research and development;
- lack of practical skills;
- inability to acquire technology suitable to our economic environment.
(g) What are your technical assistance or oth er assistance needs with respect to supply
constraints.
Technical assistance needs with respect to supply constraints are:
- assistance in setting up mechanism to provide export credit;
- developing trade information network system;
- developing data collecting system;- development of human resources in the customs department (in addition to short term
aid project LAO/96/005);
- computerization of customs system (ASY CUDA):  funds and training to use it.
- assistance to establish a customs information unit to disseminate customs information
to the private and public sector, both locally and internationally.
- assistance to enhance Lao government capacities to design industrial policy geared
towards exports.
Trade Promotion and Trade Support Services
Trade promotion comprises an integrated set of technical and financial services to enhance the global
competitiveness of enterprises and thus facilitate their entry and increasing participation ininternational trade.
(h) Do your enterprises, especially small and medium enterprises, experience difficulties in
expanding their exports?  What are these problems in the major export sectors?
- Dearth of trade-related market information and communication facilities.
- lack of technological capacity ant technical know-how;- inadequacy of skilled manpower and institutional capacities;
- lack of finance;
- poor of marketing capability;
- high transportation charges.WT/COMTD/IF/28
Page 10
(i) What are the problems for your enterprises in obtaining reliable and up-to-date
information on export/import business opportunities?
Problems include lack of institutional infrastructure and skills to access, collect, store, process
and disseminate trade information from abroad by using information modem information technology
(internet).
(j) Can your enterprises offer products of in ternationally acceptable design, quality and
packaging to foreign buyers?  If not, what are the problems?
Design, quality and packaging are of acceptable international level in a limited number of
product lines, ready made garment, however the majority of products suffer from shortcomings
indesign, poor quality and inferior packaging.  Absence of design development centres and lack of
facilities for ensuring product quality and major obstacles in this area furthermore, there is need for
up-to-date information relating to consumer preferences in export markets.
(k) What problems, other than in terms of trade policy, do you anticipate in developing the
export of services (e.g. computer software, tourism)?
Other than trade policy, the main problems in developing export of services like computer
software and tourism arise from lack of infrastructure, finance and trained manpower.
(l) What are the technical/professional problems encountered by trade support institutions
(e.g. trade promotion council, chamber of commerce, exporters association, etc) in your countryin providing their services to export/import enterprises?
Technical/professional problems encountered by the national trade promotion organization
(the export promotion bureau) are under develope d human resources, lack of access to relevant
technology and highly inadequate research and development.  Development of human resources will
involve improvement of knowledge relating to product development, etc.
(m) What problems and deficiencies are experi enced by enterprises in  their international
purchasing and inventory management?
- Limited access to world market;
- lack of trade information in respect of availability, price, quality of goods;
- lack of warehouse facilities to store imported goods and maintain proper inventory.
(n) What are the present availability and arrangements for trade finance facilities (e.g.
export credit guarantees, etc)?  Are there any perceived deficiencies in this area?
The problem is in the high interest rate coupled with the lack of specific trade financing
facilities.
(o) What are the main problems in the way of  improving export/import management skills
of your business enterprises?  Do you have trai ning programmes in the country?  What are the
deficiencies?
Inadequacy of training institution in the country, most of importers/exporters need to be
informed and trained in respect of trade laws, procedure, documentation, procurement of trade
information regarding export, import and investment.WT/COMTD/IF/28
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(p) Does your trade representation service actively promote your trade?  What are the
weaknesses?
- Available trade representation services are limited due to lack of fund, moreover
training the trade representative need to be improved;
- poor equipped trade information service;
- shortage of modern facilities for communication and dissemination.
(q) Briefly describe your technical assistance needs in the area of trade promotion and
support services.
- Assistance to improve operation of the existing mechanism (including funding) to
provide export credit facilities to SMEs;
- establishment of a trade point;
- building up the research capability of various trade promoting organizations and
establishing linkage among them;
- establish trade information centre, disseminating information about local and foreign
market opportunities to Lao business;
- measures to reduce transportation cost and market promotion;
- human resource training in quality control, packaging, design.
Market access
(r) What are your main market access problems?
The main market access problems are the followings:
- Products are not competitive due to landlockness.  The transit cost is considered as a
major factor that makes the cost of production of similar products in Laos higher than
that in other countries such as Vietnam and Cambodia;
- stringent rule of origin requirements in developed countries such as EU, Norway,
Canada and the USA;
- stringent quality and standard requirements;
- inadequate foreign market information
(s) What specific problems or barriers, and in which countries, are most troublesome for
your exporters?
Specific problems or barriers that exporters face in major export markets are:
- no GSP or MFN treatment given to Lao products exported into the USA;
- quota imposed on the two ready made garment categories that Lao exporters can
export to US market with high importing tariff at 40 per cent;
- stringent rule of origin requirements under GSP system of Canada and quota is also
imposed on the Lao garment exports;
- stringent rule of origin requirements fo r ready made garments under EU GSP system.
though derogations is provided for a period of 17 months, the problems still remain
due to quantity restriction;
 - SPS measures taken by Japan against agricultural exports from the least developed
countries.WT/COMTD/IF/28
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(t) Regional and sub-regional trading arrangements (RTAs): please list RTAs to which
your country belongs.  Are you satisfied with th e performance with these RTAs? Please state the
problems of each.  Do you have suggestions on how to solve these?
- Preferential Trading Arrangements (PTA) with Thailand;
- AFTA (ASEAN free trade area);
- Bangkok Agreement.
For Bangkok Agreement, most of the members are not active and some have not ratified the
Agreement such as Thailand and Vietnam, so its performance can not be assessed.  For AFTA, the
assessment can not be made so far since Lao PDR just newly acceded to it
(u) Are there any problems in utilizing the exis ting market access preferences, such as GSP,
GSTP?  Please state the nature of problems relating to each of these.
GSTP:  Laos did not join GSTP.
GSP:  Stringent rules of origin, in particular for textile products and clothing.  Rather slow
and difficult to access information regarding GSP.
- What are your technical assistance needs with respect to market access?
With respect to market access Lao needs training in the areas of:
- Rules of origin;
- Sanitary and phyto-sanitary standard (SPS);- How to better use the generalized system of preference (GSP).
C. Technical Assistance
Technical assistance is normally provided to developing and least-developed countries to
build or enhance their human resources and institutional capacities, provide trade information and
trade-related legal support, as well as improve their supply capabilities in order to make them moreactive players in the field of multilateral trade.
(a) To the extent this kind of information is easily available, could you please briefly
describe what trade-related assistance you have received over the past five years from bilateral
and multilateral sources and what projects/programmes are presently under consideration in
this area?
See document for High-Level Meeting on Integrated Initiatives for Least-Developed
Countries' Trade Development.  Title:  Inventory of trade-related technical assistance activities
conducted by the IMF, ITC, UNCTAD, UNDP, World Bank and WTO (WT/LDC/HL/9), page 132.
(b) Please summarize your technical assistance needs as well as other needs as reflected in
this check-list.  Please rank them in terms of priority.
1. Institutional strengthening and human resource development in relevant Ministries and
Government agencies, particularly Ministry of Commerce and its affiliated agencies, to
effectively handle work relating to compliance with various WTO Agreements.  More
specifically, this will involve beefing up national capacity for meeting product standards and
technical regulations requirements in major export markets of Laos, establishing theWT/COMTD/IF/28
Page 13
administrative mechanisms required.  Changing existing national legislations and bringing
them into conformity with all WTO related Agreements, strengthening selected service sub-
sectors (e.g., telecommunications financial services, etc.), stepping up research efforts to
enhance agricultural productivity, etc.
2. Developing a modern trade information network including establishment of a Trade Point.
3. Training for government officials dealing with trade matters in particular in the area of WTO
related Agreements, trade analysis and trade negotiating capabilities including the ability to
design industrial policy geared towards exports.
4. Provide export credit facilities to small and medium size enterprises.
5. Building up institutional capability in formulation and implementation of trade policy matters.
6. Drawing up a detailed inventory of exportable goods.  This involves assessing the current
situation in the areas of agricultural, agro-industrial and manufacturing production for foreign
markets with a view to formulating an integrate national policy for the development andpromotion of exports, particularly non-traditional exports.
7. Setting up a "Lao Trade Promotion Centre" und er the Export Promotion Department of the
Ministry of Commerce.
8. Acquisition of equipment by Government Ministries so as to access information on market
opportunities and technological development.
(c) In the light of the information you have been able to provide so far in response to the
questions in this check-list, what types of information are, in your view, still missing or could be
improved upon?  In order to assist you in providing this missing information, would you need
technical assistance?
In our view no information is missing.
(d) Does your country have the technological capacity and human resources to make use of
the new information/ communication technology  tools such as CD-Rom, the Internet etc.?   What
assistance would you need to enable your country to use these tools in the context of training
and, more generally, in the context of trade development?
No, technical assistance is needed in the area of:
- intensive training in use of information technology;
- funding for information technology equipment for the Ministry of Commerce.WT/COMTD/IF/28
Page 14
INTEGRATED RESPONSES BY IMF, ITC, UNCTAD,
UNDP, WORLD BANK AND WTO
LAO PEOPLE'S DEMOCRATIC REPUBLIC
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question A(k):
Technical assistance requirements as
regards compliance with WTO Agreements
A(k)1 – Expertise (training, consultant) to
assist the Lao government in adapting its
trade related legislation to conform withWTO related regulationsUNDP
1,2UNDP can assist through a new Trade
Liberalization Project which it proposes to
formulate soon.  In particular, it canprovide:
1. Expert advise
2. Training and workshops
In addition, UNDP already has projects
with both the Ministry of Justice and the
National Assembly on the drafting and
legislating of laws which could be useful
in addressing part of this request.
See also A(k)3 (UNCTAD).
WTO Assistance could be made available  to Lao
as regards compliance with WTO
Agreements once this country becomes a
WTO member.
A(k)2 – Training of government officials to
enhance their capacity to design Lao trade
policyUNCTAD This could be included in A(k)3 below.*
                                                     
1UNCTAD and ITC have expressed a willingness to cooperate.
2UNDP intends to support the round-table on trade and trade-related activities which the Government
will organize in 1998.  In this regard, the six agencies stand ready to assist in the preparation of the multi-yearprogramme of trade-related technical assistance.
*Funds are requested.WT/COMTD/IF/28
Page 15
Technical assistance needs identified in the
questionnaireOrganization Response
Question A(k)2 (cont'd.): UNDP See A(k)1.  In particular the new Trade
Liberalization Project can provide:
1. Training in-country and abroad2. Workshops
In addition, UNDP's ASEAN project has
already facilitated numerous trade policytraining activities both in-country and
abroad.
A(k)3 – Institutional capacity building UNCTAD A national project can be designed to assist
government in the accession to WTO, in
capacity building for multilateral trade
negotiations and trade policy formulation.*
UNCTAD is prepared to work with UNDP
and the Government in assisting in the
design and implementation of the above
UNDP new Trade Liberalization Project
mentioned in A(k)1.
UNDP See A(k)1.  In particular the new Trade
Liberalization Project can provide:
1. project management training2. office management training
3. office and communication equipment
(e.g. Internet)
UNDP is particularly interested in
supporting the foreign Trade Department
of the Ministry of Commerce, possibly inconjunction with the Ministry's
Department of ASEAN Economic
Cooperation.
If the proposed Leading Committee on
Trade is approved by the Laos
Government, which will strengthen
interministerial coordination on trade
issues, UNDP would also be willing tosupport this institution.
                                                     
*Funds are requested.WT/COMTD/IF/28
Page 16
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question A(l):
Technical assistance needs as regards
specific WTO AgreementsUNCTAD The needs expressed below can be covered
with UNCTAD's entry under A(k)3.*
WTO A three-week trade policy course for
English speaking least-developed countries
will be held in 1998 and 1999.
Specialized regional seminars and/or
workshops in Asia and Pacific region on
WTO provisions will be organized in 1998
or 1999 for English-speaking LDCs.
Multilateral trade negotiations UNDP See A(k)1.  In particular the new Trade
Liberalization Project can provide:
1. Expert advise2. Negotiation training and workshops
3. Support for attendance at international
trade conferences
In addition, the UNDP's ASEAN Project
(LAO/96/002) and the Customs Project
(LAO/96/005) have already supported
trade negotiations with ASEAN in respect
of LAO PDR's AFTA integration.
WTO See above.
Bilateral trade negotiations UNDP See A(k)1.  In particular, the Trade
Liberalization Project can provide:
1. Expert advise
2. Negotiation training and workshops
3. Support for study tours in major tradingpartners
Competition polic y UNDP See A(k)1.
Agriculture UNDP UNDP national ASEAN project and its
regional Trade and Investment project
have been conducting studies on the
impact of AFTA and WTO membership on
the LAO agricultural sector.
WTO See above.
                                                     
*Funds are requested.WT/COMTD/IF/28
Page 17
Technical assistance needs identified in the
questionnaireOrganization Response
Question A(l) (cont'd.):
Textile and clothingUNDP UNDP national ASEAN project and its
regional Trade and Investment project
have been conducting studies on the
impact of AFTA and WTO membership on
the LAO industry, including the textile andclothing sub-sectors.
WTO See above.
Market access WTO See above.
Customs valuation IMF IMF to provide assistance: to review and
update customs legislation and regulations
to assure efficient collection of revenues as
well as customs organization and
procedures.
WTO See above.
IMF/UNDPUNDP's Tax and Customs project has a
long term IMF expert working in this area.
Subsidies WTO See above.
TRIPs and TRIMs WTO See above.
Import licensing WTO See above.
Services UNDP UNDP's ASEAN project is conducting a
study on the impact of AFTA on the
service sector.
WTO See above.
Notification WTO Assistance could be made available to Lao
as regards notification once this country
becomes a WTO member.
Dispute settlement WTO See above.
SPS WTO See above.
TBT WTO See above.
Antidumping WTO See above.WT/COMTD/IF/28
Page 18
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question A(m):
Assessment of the existing trade analysis
and negotiating capacities
In view of very poor access to trade-related
information, Laos' trade analysis capacitiesare very low.ITC Will provide trade-related information for
selected pharmaceutical- and agricultural
products through the ongoing Market
News Service (MNS) project.  This will
include world market prices, commercial
data and marketing trends.
UNCTAD The  need can be covered with UNCTAD's
entry under A(k)3.*
Laos has a very low level of tradenegotiating capabilitiesUNCTAD The  need can be covered with UNCTAD's
entry under A(k)3.
*
UNDP See A(k)1.
WTO The three week trade policy course will
reinforce the capacity building. During
such trade policy course negotiating
capacities will be addressed and a trainingfor a better participation in multilateraltrade negotiations  will be undertaken.
                                                     
*Funds are requested.WT/COMTD/IF/28
Page 19
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question B(g):
Technical assistance needs as regards
supply constraints
B(g)1 – Assistance in setting up a
mechanism to provide export creditITC As Part of the ongoing project,
"Development of Trade Financing
Services" a practical guide on "How to
Approach Banks" will be disseminated and
a presentation seminar will be held in mid
1998.
UNCTAD As a first step, a mission to assess the
situation as regards trade finance capacitiescan be undertaken.
*
B(g)2 - Developing trade informationnetwork systemUNCTAD TRAINS CD-Rom will continue to be
provided. See also B(q)2.
ITC/UNCTADSee A(m).  Additional support in trade
information management will be provided
under the Trade Efficiency programme.
B(g)3 - Developing a system for datacollection
B(g)4 - Development of human resources
in the customs department (in addition to
short term aid project LAO/96/005)ITC/
UNCTAD/
UNDPSee B(q)2.
IMF See A(l).
B(g)5 - Computerization of the customs
system (ASYCUDA): funds and training to
use itIMF/
UNCTAD/
UNDPUNDP's Tax and Customs project has an
unfunded component for the introduction
of ASYCUDA.  Donor support ofapproximately US$1 million is required tocommence implementation.
*
(The project has already funded study toursto other ASEAN countries and UNCTAD
headquarters in Geneva to assist Lao
officials with customs computerization inthe future).
                                                     
*Funds are requested.WT/COMTD/IF/28
Page 20
Technical assistance needs identified in the
questionnaireOrganization Response
Question B(g) (cont'd.):
B(g)6 - Assistance to establish a customs
information unit to disseminate customs
information to the private and public
sectors, both locally and internationallyIMF/
UNDPUNDP's Tax and Customs project already
provides funding for translation and
printing  (e.g. AFTA List).  A Customs
Information Unit could also be established
if additional funding was available.*
B(g)7 - Assistance to enhance Laogovernment capacities to design industrialpolicy geared towards exportsUNDP See A(k) and A(l).
                                                     
*Funds are requested.WT/COMTD/IF/28
Page 21
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question B(q):
Technical assistance needs in the area of
trade promotion and support services
B(q)1 - Assistance to improve the
operation of the existing mechanism
(including funding) to provide export credit
facilities to SMEs.ITC See B(g)1.
UNCTAD See B(g)1.
B(q)2 - Establishment of a Trade Point. ITC/
UNCTADA feasibility study to establish a Trade
Point can be undertaken.*
B(q)3 - Building up the research capability
of various trade promoting organizations
and establishing linkage among them.
B(q)4 - Establish a trade informationcentre, disseminating information about
local and foreign market opportunities to
Lao business.ITC/
UNCTADSee A(m) and B(q)2.
B(q)5 - Measures to reduce transportation
cost and market promotion.
B(q)6 - Human resource training in qualitycontrol, packaging , design.
                                                     
*Funds are requested.WT/COMTD/IF/28
Page 22
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question B(v):
Technical assistance as regards market
access
B(v)1 - Training in the area of rules of
originWTO See A(l).
B(v)2 - Training in the area of Sanitary and
phyto-sanitary standards (SPS)WTO See A(l).
B(v)3 - Training to better use the
generalized system of preferences (GSP)UNCTAD An advisory mission will be undertaken in
1998.WT/COMTD/IF/28
Page 23
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question C(b):
Summary of technical assistance needs
according to priority
1. Institutional strengthening and human
resource development in relevant
Ministries and Government agencies,
particularly Ministry of Commerce and its
affiliated agencies, to effectively handle
work relating to compliance with variousWTO Agreements.  More specifically, this
will involve beefing up national capacity
for meeting product standards and technical
regulations requirements in major export
markets of Laos, establishing theadministrative mechanisms required.
Changing existing national legislations and
bringing them into conformity with all
WTO related Agreements, strengthen
selected service sub-sectors (e.g.telecommunications, financial services
etc.), stepping up research efforts to
enhance agricultural productivity, etc.WTO See A(l) and A(m).
UNDP See A(k) and A(m).
IMF/
UNDPSee A(l).
2. Developing a modern trade information
network including the  establishment of aTrade Point.ITC/
UNCTADSee A(m), B(g)2 and B(q)2.
3. Training for government officials
dealing with trade matters in particular in
the area of WTO related Agreements, trade
analysis and trade negotiating capabilities
including the abilities to design industrialpolicy geared towards exports.UNCTAD See A(k)3.
UNDP See A(k) and A(l).
WTO See A(l) and A(m).
4. Provide export credit facilities to small
and medium size enterprises.ITC See B(g)1.WT/COMTD/IF/28
Page 24
Technical assistance needs identified in
the questionnaireOrganization Response
Question C(b) (cont'd.):
UNCTAD See B(g)1.
5. Building up institutional capability in
formulation and implementation of trade
policy matters.UNCTAD See A(k)3.
UNDP See A(l).
6. Drawing up a detailed inventory of
exportable goods.  This would involve
assessing the current situation in the areasof agricultural, agro-industrial and
manufacturing production for foreign
markets with a view to formulating an
integrated national policy for the
development and promotion of exports,particularly non-traditional exports.
7.  Setting up a "Lao Trade Promotion
Centre" under the Export Promotion
Department of the Ministry ofCommerce.ITC ITC is ready to assist the government in all
tasks related to the establishment of a trade
promotion organization.
*  Consultations
will be held during 1998.
8.  Acquisition of equipment byGovernment Ministries so as to accessinformation on market opportunities andtechnological development.
                                                     
*Funds are requested.WT/COMTD/IF/28
Page 25
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question C(d):
Technical assistance needs in the area of
information technology including training
of human resources
C(d)1 - Intensive training in the use of
information technology
C(d)2 - Funding for informationtechnology equipment for the Ministry of
Commerce.
__________