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WT/COMTD/LDC/M/88  
 
12 October 2020  
(20-7016) Page: 1/12 
Sub-Committee on Least Developed Countries  
Eighty -Eighth Session    
 
NOTE ON THE MEETING OF 30 JUNE 2020  
Chairperson: Ambassador Monique T.G. Van Daalen (Netherlands)  
A. ADOPTION OF THE AGENDA  ................................ ................................ ....................  1 
B. EXCHANGE OF VIEWS ON TRADE -RELATED IMPACTS OF THE COVID -19 PANDEMIC 
AND SUPPORT MEASURES OF RELEVANCE TO LDCS  ................................ .........................  1 
C. EIF-WTO PROJECT ON LDC GRADUATION: BRIEFING BY THE SECRETARIAT  ...........  9 
D. OTHER BUSINESS  ................................ ................................ ................................ .. 12 
 
A. ADOPTION OF THE AGENDA  
1. At the start of the meeting, Members observed  a moment of silence  in honour of  
H.E. Mr Christopher Onyanga Aparr, Ambassador of Uganda, who had passed away on 
10 June 2020.  
2. The Chairperson  thank ed Members for re -electing her as the Chair of the Sub -Committee  on 
Least Developed Countries  (hereinafter the Sub -Committee) . She said that the agenda for the 
Eighty -Eighth  Session of the Sub -Committee was contained  in document 
WTO/AIR/COMTD/LDC/ 15/REV.2 . She recalled the technical and logistical arrangements for the 
meeting, which provided for  in-person and  virtual  participation of delegates .  
3. The agenda was adopted . 
B. EXCHANGE OF VIEWS ON TRADE -RELATED IMPACTS OF THE COVID -19 PANDEMIC 
AND SUPPORT MEASURES OF RELEVANCE TO LDCS  
4. The Chairperson  stated that t his was an extraordinary time. She said that t he COVID -19 
pandemic had taken a heavy toll on all Members. Trade in all regions ha d plunged. According to 
WTO estimates from  the previous  week, the volume of merchandise trade was likely to drop by more 
than 18% in the second quarter of 2020 on a year -to-year basis.  
5. She highlight ed a few k ey points from a  recent  Information Note by the Secretariat on the 
COVID -19 pandemic and trade -related developments in LDCs .1 She said that t he pandemic ha d 
struck LDCs against the backdrop of a subdued trade performance in 2019. The value of LDC exports 
of goods and services had declined by 1.6% in 2019. The pandemic ha d resulted in a severe demand 
shock for the LDCs as their exports were heavily concentrated in a few products and markets, 
including those that were among the worst affected by the outbreak of COVID -19.  
6. She noted that a ll groups of LDC exporters were expected to see a significant drop in their 
export earnings because of the pandemic  as the price of oil ha d plummeted, clothing supply chains 
had been disrupted and travel restrictions ha d brought tourism to a standstill. In addition to the fall 
in export earnings, remittances by migrant workers ha d also dried up. Given the widen ing trade 
deficit over the past years, this put the LDCs in a dire financial situation.  
 
1 Available at: https://www.wto.org/english/tratop_e/covid19_e/ldcs_report_e.pdf . WT/COMTD/LDC/M/8 8 
 
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  7. She said that t he impact of the pandemic on LDCs was aggravated by their limited resources 
to fight the pandemic as well as to support economic recovery. She highlighte d the importance of 
the international community com ing forward to ease the situation in LDCs. It was  encouraging that 
a number of support measures ha d already been taken. She invited the representatives from the 
United Nations Conference on Trade and Devel opment ( UNCTAD ) and the World Bank , who both 
participate d virtually, to provide their presentations.  
8. The representative of the UNCTAD  said that available data indicated that there ha d been 
around 5,000  death s in LDCs due to the pandemic , which, at that mom ent in time, was less than 
what had been initially feared.  He said that for many LDCs the economic consequences would be 
more devastating than the disease itself. T he forecast for GDP growth of LDCs in 2020 had been 
reduced from 5.1% in January to less tha n 1%  in mid -2020. The GDP per capita  growth  forecast 
had been redu ced from 2.7% at the beginning of the year to -1.5%  in mid -2020. He noted that this 
would be first setback in terms of GDP  per capita  since the early 1990s  and the weakest economic 
performance in 30 years.  
9. He went on to elaborate on the  decline in prices and quantities of merchandise exports.  He 
noted that the price for fuels had drop ped by 37% in the first five months of 2020  compared to 
2019. This would particular ly affec t the LDCs that were dependent on fuel export  such as Angola , 
for which fuel accounted for more than 90% of merchandise  exports , as well as Chad, Timor -Leste, 
Mozambique and Yemen w hich depend ed on fuel  for more  than 40% of their exports.   
10. He said that the  prices of mineral and metals  such as copper, cobalt  and iron had declined by 
8% during January -May 2020 compared to the respective period in 2019 , mostly reflecting lower 
demand from industrial production in China, United States  and other major economies.  This would  
affect metal -export ing LDCs like Eritrea, Guinea, Mauritania , Mozambique, Sierra Leone  and Zambia , 
for which ores and metals accounted for more than 30% of the merchandi se export s. 
11. He explained  that the LDCs' manufacturing exports were prone to demand shocks as they 
were concentrated in garments, which were expendable expenses for consumers in a time of crisis. 
He said that there ha d been a major contraction in international trade in garments , which was 
estimated to decline by around one fifth in 2020 . This w ould hit th e export s of 
manufacture -dependent LDCs such as  Bangladesh, Cambodia, Haiti, Lesotho  and Nepal , for which 
exports of manufactures accounted for  more than 50% of merchandise exports .  
12. He went on to say that also  services had been experienc ing a major reduction in export s. 
Worldwide travel and tourism GDP was expected to drop by  around 30%  in the 2020. Tourism was 
the most important service exported by the LDCs and accounted for more than 10% of GDP of 
Cambodia, The Gambia , Sao Tom é and Princip e and Vanuatu . He mentioned  that also agricultural 
exporters were negatively  affected  by the pandemic both in terms of quantity and price demand ed.  
13. He continued by saying  that remittances constituted another major source of external 
financing and foreign reserves for the LDCs  that would be hit hard by the pandemic . Remittances 
amounted to more than 10% of GDP in LDCs such as Comoros,  The Gambia, Haiti,  Kiribati , Lesotho, 
Nepal, Senegal , South Sudan  and Yemen. The value of worldwide remittances was predicted to fall 
by around 20% in 2020, with the regions of Sub -Saharan Africa and South Asia being most affected.  
He also said that a related issue was the large -scale return of  migrant workers , who se work permit s 
were not being renewed as they had lost their jobs. According to estimates, a large number of 
migrants were returning back home to Bangladesh  (more than one million migrants) , Afghanistan  
(around 100,000-200,000)  and Ethiopia  (around 15,000) . He said that their reabsorption would  
create  challenges  for the local economy and society , including in terms of spending  on social services 
by government s. 
14. He said that, in contrast to their exports, most of the LDCs' import s consist ed of 
non-expendable products such as energy and food . A large number of LDCs were net food importers , 
with food accounting for almost 50% of merchandi se imports  in a number of LDCs such as  Somalia 
and Yemen . He noted that food prices , including f or rice and wheat had increased  around 5% during 
January -May 20 20 compared to the respective period in 2019 . It was encouraging  that there had 
been no  food crisis due to the pandemic  so far , as the level of expenditure on food had remained 
relatively stable.  WT/COMTD/LDC/M/8 8 
 
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  15. He said that the pandemic had increased the likelihood  of a further widening of the LDCs' trade 
deficit in 202 0, which had reached a record level of USD 91 billion  in 2019 . He explained tha t a 
widening trade deficit would also have implication s for the LDCs' current account deficit, which was 
expected to reach a record level of around USD 80 billion in 2020, which would correspond to around  
7% of the combined GDP of the LDCs. He emphasized  that the LDCs were facing growing difficulties 
in financing their current account deficits  due to a number of factors .  
16. He said that the LDCs were facing a  shrinking level of capital inflows and an increase  in the 
level of interest rates paid on foreign debt. He gave the example of Angola, for which the  level of 
interest rates paid on foreign bonds had increased  from 2% to 12% since the beginning of the year . 
In addition, it had become more difficult to place  bond emissions due to the contraction of 
international capital flows. He gave the example of Burkina Faso  which had postpone d its plan to 
issue bond s in international mark ets. He said that currency depreciation  was another factor that  
increased the cost of servicing foreign debt. He gave the example of Zambia, which had experienced 
a sharp depreciation of its currency due to the drop in demand for its commodity exports. Another 
difficulty had been the increase in capital outflows from L DCs.  
17. He said that these developments put an increasing number of LDCs at the risk of debt distress . 
By the end of April 2020, there were 19 LDCs that were in debt distress or at high risk of debt 
distress. Noting that a number of initiatives by the intern ational community had already been taken, 
he emphasized that further support would be  required given the dire financial situation of the 
majority of LDCs.  
18. He went on to highlight the importance of also assessing the impact of the pandemic on LDCs 
that were  on the path to graduate from LDC status. He noted that graduation would eventually result 
in the loss of international support measures  (ISMs)  for LDCs, with the loss of trade -related ISMs 
being most relevant . He noted that  before the outbreak of the pand emic Vanuatu  (2020) , 
Angola  (2021) , Bhutan  (2023) , Sao Tom é and Principe (2024) and Solomon Islands  (2024)  had been  
scheduled to graduate between 2020 and 2024.  Other LDCs that were on the path towards 
graduation included Bangladesh, Kiribati, Lao PDR , Myanmar , Nepal , Timor -Leste  and Tuvalu . 
19. He said that the current pandemic would not be reflected in the standard indicators used by 
the UN Committee for Development Policy ( CDP) to recommend LDCs for graduation at the next 
Triennial Review of the list of LDCs in February 2021. However, he expected that the C DP would 
take into account alternative  indicators  and th e specific situation of LDCs, and that a number of LDCs  
could be provided more time in the graduation process . This  also depended on requests made  by 
LDCs to the CDP , the Economic and Social Council (ECOSOC) or the General Assembly  during the 
graduation proc ess. 
20. The representative of the World Bank  said that even though the rate of mortality in LDCs had 
so far remained relatively  low, he was  concern ed regarding  the spread of the pandemic in LDCs as 
they had weaker capacities to confront a pandemic of this magnitude. He also noted  that the  
economic consequences could  be even greater than the health consequences.  
21. He emphasize d that the pandemic was first and foremost a health crisis. He said that absent 
its mitigation, no recovery could be sustained. He highlighted that the World Bank's response so far 
had primar ily been a response to the health emergency ; most interventions had been directed at 
mitigating the direct impacts of the pandemic on health care system s, as well as on income levels 
of poor households and vulnerable  groups.  
22. He stressed that the pandemic was a massive shock to the world economy not seen  in decades , 
in particular as it con tained simultaneous supply and demand shocks. He highlighted that the virus 
was indifferent to borders but exploitative of all forms of vulnerability, inequalities and pre -existing 
conditions. The LDCs were particularly vulnerable as the virus was affectin g populations that: had 
weaker  immune system ; had lower incomes ; lived in dense communities;  had inadequate access to 
quality healthcare, clean water and electricity ; worked in the informal sector ; had inadequate digital 
connectivity and low levels of digital literacy ; and showed above -average dependence on  
commodities,  tourism and remittances . 
23. He stressed  that the virus was hitting hardest countries  which  had the weakest capacit ies and 
the lowest f iscal space to  support the ir econom ies. While certain OECD countries  were prepared to  WT/COMTD/LDC/M/8 8 
 
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  spend up to 10% of their GDP in support measures to the economy , there was  no such a capacity 
in LDCs.  He said  that the crisis would have troubling consequences for the achievement of the SDGs , 
including in terms of  financing needs as resources were being used to  fight the pandemic.  In addition, 
the consequences of the pandemic would  also hamper the graduation prospects of a numbers of 
LDCs.  
24. He said that according to World  Bank estimates, more than 70 million people were at risk from 
falling back into  extreme poverty , reversing significant progress that had been made in eradicating 
extreme poverty  in recent decades . He said that for many people in LDCs  it would be difficult to 
respect social distancing measures.  He hoped that the rate of contagion would not be as important 
in LDCs as it had been in other, mostly developed, countries, as the conditions in LDCs could allow 
for a rapid spread  of the virus . 
25. He expressed concern regardin g the limited  access to medical supplies and the weaknesses of 
health care systems  by countries in Africa, where the majority about LDCs were found . The African 
Centre for Disease Control had warned of a " catastrophic shortage " of health care professionals, and 
a drastic reduction of medical supplies because of border closures, price increases and restrictions 
on exports imposed during the pandemic.  
26. He illustrated the weaknesses in health care systems by mentioning that in mid -April 2020, 
fewer than  2,000 working ventilators had been  available in public hospitals across 41 countries  in 
Africa , compar ed to close to 200,000 ventilators in the United States.  Ten countries in Africa had no 
ventilators at all. Also, 43 countries in Africa had  fewer than 5,000 intensive care beds  corresponding 
to around  five beds per million people , compared  to around 4,000 beds per million people in Europe.  
27. He stressed that there  was an  emergency in addressing the significant shortages in equipment 
to increase the capacities of health care systems in Africa. He mentioned that the global character 
of the pandemic and the concentration of supply among a few producers had resulted in  an 
inequitable access to medical supplies . A key element of the World Bank's response had therefore 
been to engage in the purchase of  medical equipment  and its supply to poor countries.  
28. He pointed to  some mitigating factors that would help the LDCs in  confronting the virus . These 
factors included heat and humid weather conditions, a relatively young population that had a higher 
capacity to fight the virus , and experience with virus tracking and containment due to previous 
epidemic situations such as with t he Ebola virus disease.  
29. He said that the World Bank  Group had so far pledged US D 160 billion  of emergency assistance 
to be disbursed over 15 months , of which USD 14 billion  had already been  disbursed  in 100 countries 
accounting for 70% of the world's population. He noted that this represented the largest and fastest 
crisis response in the World Bank Group's history. Of  the 100 countries, 39 were in Sub -Saharan 
Africa , and nearly one -third of total pro jects were in fragile and conflict -affected situations such as 
Afghanistan, Chad, Haiti, Mali and Niger. Support was provided through grants , loans , as well as 
equity investments . The World Bank Group had also been active in calling for debt relief and 
implemented the suspension of debt service payments on official bilateral credits.  
30. He then provided more detail s on the World Ban k's response  so far , which  had focuse d on 
five issues: (i) protecting the poor and vulnerable by directing cash  to them  to mitigat e drops in 
income s; (ii) reinforcing health care systems by procuring needed medical equipment ; (iii) scaling 
up of social protection  and social safety nets ; (iv) providing support to the private sector , particularly 
to Small and Medium -sized Enterprises ( SMEs ), to allow firms to survive  and retain  their productive 
capacities ; and (v) advising on and promoting recovery -facilitating measures . 
31. He said that W orld Bank  country program mes focused on : delivering help to the poorest 
families through d irect cash transfers and job support; maintaining food security, nutrition levels 
and continuity of essential services such as clean water and education ; strengthening disease 
surveillance  systems , public health laboratories, and epidemiological capacity f or early detection;  
targeting the most vulnerable groups, including women and refugees; promoting business continuity 
and supply chain resilience via trade finance directed primarily to SME s. 
32. He continued by elaborating on the role of trade policy. He said that the crisis had trade 
consequences which compounded some of the challenges the LDCs faced. Trade policy played an WT/COMTD/LDC/M/8 8 
 
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  important role for  both crisis mitigation and recovery, even for countries that accounted for a small 
share of world trade.  Trade policy could mitigate the crisis through trade facilitation measures that 
allowed speedy delivery of medi cal supplies and food products. Another measure was the temporary 
suspen sion of tariffs on COVID -19 related medical goods, which stood at 11% in LDCs . He said that 
for countries that were dependent on trade t axation  as a source of income , it would be important to 
provid e remedial sources of finance to governments  to facilitate temporar y suspen sion of tariffs on 
medical goods . 
33. He said that  in terms of trade policy, the World Bank had put emphasis on three issues: 
(i) sustain the resilience of supply chains , maintain the capacity to produce  and keep firms afloat;  
(ii) emphasi ze the critical importan ce of trade f acilitation ; and (iii) call on countries which  had 
imposed export restrictions to re peal them as quick ly as possible  because t he countries  that were 
most hit by export restrictions were those that had the least capacity to access t he medical goods 
required to fight the disease.  
34. The repre sentative of Chad, on behalf of the LDC Group, congratulate d the Chairperson  on 
her re -election  as the Chair of the Sub -Committee , and thanked the UNCTAD and the World Bank 
for the presentations. He said  that the LDCs had been suffering significantly from the economic 
impact of th is global health crisis. The interruption of cross -border trade  resulting from  the 
restrictions o n the movement of people  and border closures had had significant negative impacts  on 
the LDCs'  economies. He stress ed the limited fiscal space and financial capacities of the LDCs to 
compensate for the drop in revenues and to ensure a minimal protection and subsistence support 
for their populations . In addition  to the decline in exports , LDCs were experiencing  capital flight by 
investor s due to the  elevated uncertain ty. The drop in revenues  had furthermore increased the  
LDCs' risk of default on their sovereign debt.  
35. He continued by stressing that the current situation  was seriously affecting the 
LDCs' development p lans and objectives in the  short and medium  term. He emphasized  the need for  
global cooperation to ensure that the health and economic crises would not further  increase social 
inequalities between rich and poor countries. This would be harmful  for all countries and could lead 
to destabilizing effects for the global order and collective wellbeing.   
36. He underlined the need for support from developed and developing country partners to 
prevent a further deepening of the crisis  in LDCs . It was import ant to strengthen efforts to be able 
to achieve  the SDGs despite COVID -19. There was more to win th an there was to lose in massively 
supporting the LDCs to help them overcome the effects of the crisis and to keep them on the ir 
development path in the conte xt of the SDGs .  
37. He went on to say that d evelopment partners, the WTO and other multilateral organizations 
could play an important role,  in cooperation with LDC Government s, to stabilize the LDCs' economic 
situation. He said that the WTO had the regulatory means which c ould be used to support the LDCs 
in their struggle against recession. He also highlighted the  importance of the Aid-for-Trade Initiative 
and underlined the need to strengthen the capacities of the Enhanced Integrated Framework  (EIF).  
38. He said that the  crisis had highlighted the need for the  LDCs to strengthen the  resilien ce of 
their economies to crises and exogenous shocks , which would allow them to overcome their 
vulnerability  and poverty. He concluded by posing the question what th e best measures  and priorities 
were to help the LDCs overcome  the challenges  from the current crisis  and prepare for the time after 
COVID -19. 
39. The representative of The Gambia  highlighted that the COVID -19 pandemic ha d underscore d 
the urgent need for global cooperation and address ing the extreme vulnerabilities that existed in 
many LDCs' health care system s. He noted that in a number of LDCs , infections had been on the 
rise and emergency measures had been put in place to  contain the sp read of the virus. He said that 
implementing social distancing was difficult in LDCs because of their population density, the 
communal way of living and the importance of the informal sector. He  concluded by  stress ing the 
importance of strengthen ing the LDCs' heal th care systems to  mitigate the impact of the pandemic.  
40. The representative of Senegal  associate d his delegation with the statement made by Chad on 
behalf of the LDC Group . Senegal  had implemented social distancing measures as well as  
epidemiological measu res immediately after COVID -19 appeared in the country . He underlined that WT/COMTD/LDC/M/8 8 
 
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  previous experiences with epidemics had helped Senegal to manage the current health crisis, even 
though it had specific characteristics and significant health, social and economic impacts. He said 
that the private sector had been providing support  with the local production of reusable masks, 
which helped ensur e that mandatory mask wearing could be respected by the population. Creativity 
had been  applied when  putting into place various health measures, including the development of 
kits for hand washing a s well as  low-cost testing kits, which had been developed by the Pasteur 
Institute in Dhaka.  
41. He said that to  support economic recovery, the Government  had been implement ing the 
initiative Force C OVID -19 which br ought  together a number of different financial and other 
measures. The Force C OVID -19 initiative relied on public funding , but  also benefitted from 
international support  as well as from support by the private sector . He said that fiscal measures 
included tax relief measures to assist companies in  confronting the crisis and to help relaunch the 
economy. He echoed the intervention by the LDC Coordinator that the WTO had an important role 
to play in ensuring that export rest riction s on personal protective equipment and on food products 
would  only be temporary and as least trade restrictive as possible.  
42. The representative of the United States  congratulated the Chairperson for her re-election  as 
the C hair of the Sub-Committee . She  expressed appreciation for the presentations made by the 
UNCTAD and the World Bank.  Referring to her delegation's statement at the General Council meeting 
on 15  May 2020, she said that the United States was acting with urgency, on a large sca le, and to 
national as well as global benefit.  Referring to the human and economic toll that COVID -19 had 
taken on the United States, she underlined the importance of a coordinated response because 
diseases did not respect national borders and strengthenin g health systems overseas helped protect 
American lives at home.  
43. She said that the U.S. Department of State and the U.S. Agency for International Development 
(USAID) ha d so far committed more than USD 1 billion in assistance to fight the pandemic. This 
emergency funding w ould save lives by improving public health education, protecting healthcare 
workers, strengthening laboratory systems, increasing disease -surveillance, and increasing 
rapid-response capacity in more than 120 countries.  She said that  American businesses, non -profit 
groups, charities and individuals ha d collectively provided nearly USD 4 billion in donations and  
assistance. Together, Americans ha d provided nearly USD 6.5 billion in government al and 
non-government al assistance and donations to the global COVID -19 response.   
44. She went on to say that the United States remained  the largest single -country donor to the 
response efforts, building on decades of leadership in life -saving health and humanitarian assistance. 
She noted that t he United States was also providing support to  dozens of  international organizations 
fighting the pandemic including the United Nations Children’s Fund (UNICEF) and the World Food 
Program me. She concluded by  welcom ing high quality, transpare nt and meaningful assistance from 
other donors to help fight this dangerous pathogen.  
45. The representative of China  congratulated the Chairperson for her re -election as the Chair of 
the Sub -Committee . She t hanked the UNCTAD and the World Bank for their infor mative 
presentations  and expressed appreciation for the Secretariat's Information Note on  the COVID -19 
pandemic and trade -related developments in LDCs . She noted  that the decline  in trade in 2020  was 
likely to be worse for the LDCs than at the global level  as they  often depend ed on a few export  
products , tourism and remittances. She also  noted that according to  UN estimate s, Africa could face 
its first recession in the past 25 years. She emphasized the importance of providing support to the 
LDCs as they  had limited fiscal capacity for providing stimulus packages  for economic  recovery . 
46. She continued by  saying that t he WTO ha d an important  role to play in helping the LDCs build 
their eco nomic resilience to the pandemic  by keeping trade open . She called on Members to restrain 
their use  of export  restriction s to ensure the flow of essential goods and services, a s well as expand 
the market access for the LDCs ' exports . In this respect, she w as encourag ed to note that  China had 
come back as the top destination in 2019, absorbing around 26% of the LDCs ' exports . She also 
highlighted the importance of provid ing targeted technical assistance to help the  LDCs build their  
trade capacity and diversify their economies . She said that discussions on aid for trade at the  WTO 
were useful in mobili zing and channel ling resources to address  the specific needs of the LDCs.  WT/COMTD/LDC/M/8 8 
 
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  47. Regarding China 's efforts to support the global community 's response to COVID -19, she 
highlighted : (i) China's collaboration  with the UN on a humanitarian response hub for establishing 
green corridors for fast -track transportation and customs clearance of essential goods ; (ii) its 
commitment to provide USD 2 billion  of aid  in response to the pandemic over two years ; and (iii) the 
cancellation of debt for relevant countries in Africa in the form of interest -free government loans 
that were due to mature by the end of 2020  within the framework of the Forum on Chi na-Africa 
Cooperation (FOCAC ). China was also working with other G20 members to implement the G20 's 
Debt Service Suspension Initiative. She concluded by saying that China w ould make  a future 
COVID -19 vaccine  a global public good when it was ready for appli cation and ensure its accessibility 
and affordability for developing countries.  
48. The representative of the European Union  thanked  the UNCTAD and the World Bank for their 
informative presentations . He said that support for the LDCs was at the centre of the European 
Union' s development policy. Under the Everything but Arms initiative, which was part of the 
European  Union' s Generali zed Scheme of Preferences, the LDCs received  duty-free and quota -free 
access to the European market across all tariff lines, except for arms and ammunition. This was 
widely recogni zed as the world 's most generous scheme of tariff preferences for LDCs.  He sa id that 
the LDCs were also at the centre of the European Union's  aid-for-trade efforts. Since 2007, around 
one quarter of all aid-for-trade disbursements by the E uropean Union  and its member States ha d 
been geared towards LDCs. In 2017, these disbursements  had reached EUR 2.7 billion, the highe st 
value among all donor countries . 
49. He said that t his commitment to support LDCs was already important enough under normal 
circumstances, but especially so under the crisis brought about by the COVID -19 pandemic. The 
collapse in global supply chains, the fall in commodity p rices, and the relatively small amount of 
fiscal space to implement COVID -19 relief measures had hit LDCs hard.  To respond to this 
unprecedented emergency, the so-called "Team Europe " response package include d a total of 
EUR 23 billion to help developing c ountries preserve their production and trading capacities, as well 
as support growth and employment.  
50. He highlighted that an open, rules -based global trading system was essential to ensure that 
LDCs maintain ed supplies of essential goods . That was why the European Union had been  supporting 
global efforts to provide sufficient supply of essential goods, food and water, as well as combatting 
any export restrictions or other distortive measures in the agri -food se ctor. He said that the 
European Union was  taking all necessary measures to facilitate trade, notably for essential medical 
supplies and pharmaceuticals, as well as taking a leading role in the global effort for a new 
multilateral agreement to liberali ze trade in essential medical supplies.  
51. The representative of the United Kingdom  congratulate d the Chairperson on her re-election  
as the Chair of the Sub -Committee, and thanked the UNCTAD and the World Bank for their 
presentations. She said that it was  becoming  increasingly evident that low - and lower -middle -income 
countries w ould be hit hardest by th e pandemic. The United Kingdom was working to protect key 
supply chains and the continued movement of goods, services and medical equipment , and helping 
to mitigate  any immediate impacts of trade restrictive measures. It was adapting its existing 
aid-for-trade programmes to respond to the specific challenges brought by the COVID -19 pandemic. 
The United Kingdom's  Trade Investment Advocacy Fund was helping developing c ountr y Members  
to both notify their own measures and understand the domestic impacts of COVID -19 measures 
taken by other Members.  
52. She went on to say  that i n Africa, Asia and the Caribbean, the United Kingdom was  using its 
existing programmes to help SMEs  find new market s for their products where demand ha d dropped, 
and support women -owned businesses to adapt to the crisis. Support was also being provided to the 
World Bank 's Trade Facilitation Support Programme to provide demand -driven technical advice to 
governments on managing borders and prioriti zing critical shipments. She concluded by saying that 
her delegation would  continue to work with Members on appropriate initiatives supporting free, fair, 
and rules-based trade that was inclusive of LDCs, and to ensure that crucial supply chains and 
transport routes remain ed open.  
53. The representative of Australia  congratulate d the Chairperson on her re-election as the Chair 
of the Sub -Committee , and thanked the  UNCTAD and the World Bank for the ir presentations. He 
said that the analytical work by the UNCTAD, the World Bank and the WTO underlined the severity 
of the health and eco nomic challenges facing particularly LDCs . Noting that a number of LDCs were WT/COMTD/LDC/M/8 8 
 
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  dependent on remittances  and a few products and export markets, he said that trade would  play an 
important role b oth for COVID -19 response and economic recovery. He stated that  aid for trade 
remain ed a focus of Australia's  official development assistance , including for  its COVID -19 response. 
Australia was working closely with partners such as the EIF, the Standard s and  Trade and 
Development Facilit y (STDF) , the World Bank 's Trade F acilitation Programme and the Asian 
Development Bank (ADB) . Australia had  also recently renewed its support for the Pacific Island 
Forum Secretariat office in Geneva. His delegation looked forward to hearing more from LDC s on 
the challenges they face d and ho w those could be addres sed. 
54. The representative of Mali associated her delegation with the statement made by Chad on 
behalf of the LDC  Group . Echoed the statement made by Senegal , she said  that countries in Africa 
had bee n reacting in a proact ive manner  which had enabled them to  limit the pandemic and avoid 
catastroph e. She thanked China for its support and debt relief to countries in  Africa, including Mali. 
She thanked also other partner countries  that had provided suppor t to Mali, including for  making  
personal protective equipment such as masks available to people. She said that this was the time to 
put in place specific waiver s that could benefit LDCs.  
55. She stressed  that Mali was in a difficult situation, in particular as its  economy  was much 
dependent on cotton  export s. Due to the pandemic , Mali could only export 19% of it s cotton, while 
the rest was waiting in factor ies, transit or port s to be shipped  across border s. She expressed 
concern that COVID -19 would not only result in revenue losses in 2020,  but also risk ed compromising 
the next cotton season as farmers would stop cultivating cotton if they were not paid. If the situation 
did not improve, this would further  increase emigration of young people. She urged Members to help 
Mali because cotton support ed four million people , corresponding to  20% of the population.  
56. The representative of Nepal  associated his delegation with the statement delivered by Chad 
on behalf of the LDC Group. He said that  the LDCs w ould be the most severely affected  by the 
pandemic,  experienc ing negative consequences for all dimensions  of their development process. He 
said that addressing  the health crisis and maintaining a smooth livelihood in LDCs had become a big 
challenge. The pandemic resulted in m igrant workers coming back home and revealed the 
importance of domestic food production a s well as export  promotion through productivity 
enhanc ements . He highlighted that the pandemic had enhanced the importance of electronic 
commerce  and the need to support the LDCs in addressing the digital divide. He was interested to 
hear more about how international organizations such as the ADB, UNCTAD,  World Bank  and WTO 
could collaborate with domestic agencies to support the LDCs in enhancing their productive 
capacities for recovery and adaptation to the post -COVID -19 situation.  
57. The representative of the UNCTAD  said that it was useful to distinguish betwe en short -term 
and medium - to long -term priorities. In the short term,  the priorit y for international assistance as 
well as for domestic  policies was to respond to health and economic  emergenc ies. The economic 
emergency should be addressed through support  schemes for household income s as well as for 
companies, particularly SMEs, to prevent them from going out of business  and losing productive 
capacities . He welcome d that a number of initiatives had been taken already but said that more 
needed to be done in  terms of technical assistance  and support, also with regard to the involvement 
of the private sector in negotiations for debt repayments.  
58. He said that in the medium to long term , the priorit y for LDCs would be  to build resilience  and 
reduce the ir vulnerability to external stock s. It was essential that the LDCs  built their productive 
capacities to become more resilient and less vulnerable.  He stressed the importance of mobiliz ing 
domestic means as well as the  support of the international community . Once the emergency ha d 
passed , the international community should strengthen its support to the building of productive 
capacities in LDCs  through financial and techn ological  assistance. Referring to the  preparatory 
process for  the Fifth UN Conference on the LDCs ( UNLDC-V), schedule d to be h eld in January 2022 , 
he emphasized that it was important that the international community mobilize d and reaffirm ed its 
support to LDCs t hrough the strengthening of existing ISMs as well as through  new measures. He 
concluded by underlin ing the importance of  support towards  infrastructure and technology for the 
building of productive capacities  in the LDCs.  
59. The representative of the World Bank  highlighted that u ntil a medical solution to the pandemic  
was found , the recovery w ould be accompanied by a high degree of uncertainty.  It was a priority for 
the international community to find a cure to the pandemic without which economic recovery  would 
be difficult.  WT/COMTD/LDC/M/8 8 
 
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  60. He said that a nother priority was  to mobilize resources  and improve coordination among key 
stakeholders . It would be important to mobilize  domestic  resources, both from domestic savings and 
private sector, as well as foreign capital in the form of foreign direct investment . Regarding the 
latter, the G20 initiative  on Foreign Direct Investment  promotion to LDCs  could prove helpful . He 
welcomed the  initiatives taken in response to COVID -19 that were mentioned  by Members. He said 
that m obilization for COVID -19 was a priority in  multilateral and regional development banks , and 
that the World Bank had mobilized the largest  amounts of finance in its history . He reiterated the 
importance of debt relief as well as of a id-for-trade support and  the EIF.  
61. He underlined the difficulty  of deliver ing technical assistance  under  prevailing health 
conditions , travel bans  and related measures . He said that trade policy c ould play an important role 
for both short -term mitigation as well as medium - to long -term recovery. It was in the hands of 
Members to respond in areas like  export restrictions  and notifications , as well as to provide  support 
measures and flexibilities  direct ed at LDCs . 
62. The representative of Chad, on behalf  of the LDC  Group , took the opportunity to thank the 
LDCs' development partners that had  made announcement s regarding their COVID -19 response and 
contributions , especially Australia, Chin a, the European Union , the United Kingdom and the 
United  States. He highlighted the importance of m obilization  support by both private and public 
sector s, especially for SMEs . He was confident that through global cooperation and support , the 
LDCs could ove rcome the immense challenges that they were facing . 
63. The Chairperson  thanked the  UNCTAD and the World Bank for their presentations, as well as 
Members for their statements.  She said that the discussion ha d contributed to enhance Members' 
understanding of the impact of the pandemic in the LDCs and the support measure that were being 
provided.  She encourage d Member s to continue to pay particular attention to the specific needs of 
the LDCs and support them in their efforts to recover from thi s crisis. She said that the discussion 
had made clear that trade ha d an important role to play in the economic recovery of LDCs. She said 
that the Sub -Committe e would continue to follow  the trade -related developments in the LDCs as 
part of the discussions on market access for LDCs. She suggest ed that the Sub -Committee take note 
of the presentations by the UNCTAD and the World Bank, as well as statements made.  
64. It was so agreed . 
C. EIF-WTO PROJECT ON LDC GRADUATION: BRIEFING BY THE SECRETARIAT  
65. The Chairperson  said that t he Secretariat, with the support of the EIF, was implementing a 
project on LDC graduation. She recalled that the project ha d its roots in a meeting of the 
Sub-Committee in October 2018, when the LDC Group had requested assistance to better 
understand the implications of graduation. Since then, the Sub -Committee ha d followed the 
implementation of the project. The Secretariat had provided Members with a project update at the 
meeting on 12 July 2019. She also said that the Secretariat had released a study titled " Trade 
impacts of LDC graduation " on 8 May 2020 .2 She invited the  Director of the Development Division 
to provide the Sub -Committee  with a briefing on the EIF -WTO LDC Graduation project.  
66. The representative of the Secretariat  (Director, Development Division ) said that since the 
launch of the project in March 2019, work had been carried out with the primary  objectives  to help 
graduating LDCs to better understand the implications of graduation , to address the trade -related 
challenges of gra duation , and to help them prepare to smoothly integrate into global economy 
following graduation  with a view to achieve sustainable graduation . 
67. He went on to elaborate on the findings of the report on the Trade impacts of LDC graduation. 
He said that t he work had been  premised on the understanding  that the impact of graduation w ould 
vary between LDCs depending on their individual manufacturing profiles, their export structure  and 
levels of diversification both with respect to products and markets , their preference utilization , and 
their terms of accession to the WTO.  
 
2 Available at: https://www.wto.org/english/res_e/booksp_e/trade_impacts_of_ldc_graduation.pdf . WT/COMTD/LDC/M/8 8 
 
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  68. He said that  the study assessed  the implications of graduation in terms of  the 
LDCs' participation in the multilateral trading system , the changes in the market access opportunities 
enjoyed by the LDCs , and the implications of graduation on development cooperation . 
69. Regarding the LDCs' participation in the multilateral trading system, h e said that graduation 
would lead to the loss of LDC -specific flexibilities in WTO Agreements. Provisions in the Agreements 
on Trade -Related Aspects of Intellectual Property Rights (TRIPS ) and Subsidies and Countervailing 
Measures (SCM) would be important in this regard, as w ould be some Agriculture -related decisions . 
He said that these were areas where graduating LDCs would need to assess whether they needed 
some transitory period and how to make a case for that.  He highlighted that graduation would neither 
require any changes to a Member's schedule of concessions  nor lead to any changes in the assessed 
contributions of Members to WTO's budget. Graduation would also not lead to significant changes in 
access to WTO's technical assistance.  
70. Regarding market access, he said that some of the preferential access would not be available 
following graduation.  The impact would differ between  graduating LDC s and depend on the extent 
they utilize d preference schemes available to them . The key export markets in this context would 
be Canada , the European Union  and Japan , with t he products to monitor includ ing textiles and 
clothing, footwear, fish products and a few agricultural items . He also said that graduation was not 
expected to have a major impact in ma jor developing  country  markets  such as China, India and 
Thailand as the graduating  LDCs traded with them mostly under regional trade agreements , the 
conditions of which were unlikely to  change with graduation.  
71. He went on to say that graduation would have a limited impact on development coo peration , 
which was typically not based on LDC status. Cooperation with bilateral partners was often based 
on historical ties and other factors, while multilateral development banks mostly  based their financial 
support on a country's income level. Regarding the latter, h e pointed to concerns expressed by some 
graduating LDCs that they would face a dual graduation, facing not only the loss of  benefits 
associated with LDC status but also rising borrowing costs due to their po sitive developments in 
terms of income . 
72. He mentioned that th e report on Trade impacts of LDC graduation ha d also included some 
broad conclusions from country -specific market access analyses done for each graduating LDC. A 
report with these  country -specific  statistics would be shared with  graduating LDCs shortly. In 
addition, the Secretariat had worked together with national consultants to gain more understanding 
on national perspectives on graduation , which had been woven into the report  as well as the 
country-specific market access analys es. 
73. He continued by elaborating on capacity -development  activities carried out under the project, 
for which  the Secretariat had been working closely with LDCs and international organizations at the 
national, regional and gl obal levels. At the national level, the Secretariat had participated in the  first 
joint UN Mission of the Inter -Agency Task Force on LDC Graduation to Sao Tom é and Principe in 
September 2019. In addition, at the request of the Government  of Bangladesh, the Secretariat had 
conducted a dedicated workshop on LDC graduation  in March 2020 .  
74. He said that a t the regional level, the Secretariat had an interactive exchange with senior 
government officials from LDCs in South Asia in Bhutan in Octob er 2019. In the same month , the 
Secretariat  had also organized a workshop  on graduation for the LDCs in the Pacific  in Vanuatu, 
which saw the participation of a number of UN agencies . Since the project was supported by the EIF, 
the WTO had also been provid ing project updates at EIF Board meeting s on a periodic basis . 
75. He mentioned that while lockdown measures had prevented the Secretariat  from carrying  out 
some face-to-face activities , it had allowed the Secretariat to dedicate  more time  to the analytical 
work, which was why the report had come out ahead of schedule. He said that the Secretariat had 
been updating  the LDC Group, including virtually, on progress and findings of the project. In this 
regard, h e thanked the LDC Coordinator (Ambassador of Chad) for  his interest and engagement with 
regard to the project . 
76. He went on to say that the substantive contours of the project , and the time-frame,  would 
need to be adjusted in cooperation with the EIF  and other UN agencies working on the issue of 
graduation . He noted that a number of planned activities had to be cancelled  due to the COVID -19 WT/COMTD/LDC/M/8 8 
 
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  pandemic . The Secretariat would develop a revised work plan and time schedule  taking into account 
the chang ed circumstances because of the pandemic . 
77. Regarding the substantive contours of the project, he highlighted the importance of integrating 
the impact of COVID -19 on graduating LDCs, especially as LDCs were undergoing a difficult period 
because of the pandemic. H e said that the Secretariat would carry out a COVID -19 impact 
assessment for graduating LDCs.  The Secretariat had  furthermore  identified three LDCs in different 
regions for which it would start carrying out a more detailed country -specific analysis , in coo peration 
with the EIF Executive Secretariat . 
78. He also emphasized that future work would further enhance the close cooperation with other 
international organizations , in particular UN  Department of Economic and Social Affairs  (DESA) , 
UNCTAD and UN  Economic a nd Social Commission for Asia and the Pacific  (ESCAP) . He said that in 
the Inter-Agency Task Force on LDC Graduation , the WTO repeatedly had emphasized the need to 
coordinate efforts and speak to the LDCs with one voice in order to avoid the  risk of gradua tion 
fatigue in LDCs. He underlined WTO's close collaboration with  the UN Office of the High 
Representative for the Least Developed Countries, Landlocked Developing Countries and Small 
Island Developing States  (UN-OHRLLS ). The UN -OHRLLS, the Chair of the Inter -Agency Task Force  
on LDC Graduation, had been invited to brief Members on graduation at a future meeting . WTO was 
also working  closely  with the UN  CDP, which would review the status of LDCs and provide 
recommendation s for graduation at t he next Triennial Review of the list of LDCs in February 2021 .  
79. He went on to draw Members' attention to three upcoming global events , i.e. the four -yearly 
UNCTAD conference in Barbados, likely to be held in April 202 1; WTO's Twelfth  Ministerial 
Conference , the dates of which were being consulted by Members ; and the UNLDC -V Conference in 
Qatar , likely to be held in January  2022. These three events w ould provide an important opportunity 
to take the discussions on graduation forward.  In particular the next Pr ogramme of Action for the 
LDCs, which would be the outcome of UNLDC -V, would provide guidance to graduating LDCs as well 
as their development partners on how to help graduating LDCs smoothly integrate into the global 
economy.  
80. He concluded by expressing th at the WTO, and in particular the Development Division, was 
committed to working with all Members to ensure sustainable graduation for the LDCs, both that are 
already in the pipeline for graduation, and those that w ould come into this pipeline at a future date . 
81. The representative of Chad, on behalf of the LDC Group, expressed appreciation for the work 
carried out by the Secretariat, in particular the Development Division,  on LDC graduation , and 
thanked the EIF and the WT O for the project. He considered the analytical work to be useful  not only 
for the LDCs but  for all Members. He welcomed that the Secretariat would embark on a second stage 
of the project and carry out work on the impact of COVID -19 on graduating LDCs.  
82. He emphasized that LDC graduation implied the loss of measures reserved for  LDCs, in 
particular with respect to preferential market access and technical assistance . He stressed the need 
to help graduating LDCs ensure a smooth transition towards developing co untry status, as had been 
called for in a number of UN resolutions. This was important to ensure that the development progress 
made by graduating LDCs would not be disrupted, so that they would not fall back into LDC status 
but rather continue making progr ess in terms of economic growth and social development.   
83. He said that graduation was a priority issue for the LDC Group in the WTO. He called on 
Members to be responsive to the LDCs' demands with regard to graduation, stressing the need for 
adequate transi tion periods for phasing out flexibilities to allow for a smooth transition from 
LDC status.  
84. He highlighted the limited integration of t he LDCs  in international trade and stressed the need 
to strengthen the LDCs' trade capacities. This was crucial for moving  towards sustainable economic 
development  as trade was an essential driv er of economic growth , structural change  and productive 
capacity  building .  
85. He concluded by urging the international community to consider the impact of COVID -19 in 
defining the timeline of graduation in the near term. He said that there was much  uncertainty WT/COMTD/LDC/M/8 8 
 
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  regarding economic recovery and that COVID -19 had resulted in a setback  for economic and social 
development in graduating LDCs.  
86. The representative of  the United Kingdom  said that her Government  remain ed committed to 
ensuring that vulnerable developing countries and LDCs could reduce poverty through trading 
opportunities, and it support ed LDCs' graduation efforts as a vital foundation for economic 
development and growth. She was  aware that hard -fought socio -economic gains of the past few 
years could  be lost due to  the COVID -19-induced economic crisis, constraining LDC graduation 
prospects. She emphasized the long -standing support provided by  the United Kingdom to the EIF as 
well as support provided through the Trade Advocacy and Investment Fund, which  was providing 
technical external advice and skills training. Giving the example of Bangladesh , she said a  
comprehensive capacity -building programme concerning international trade w ould enable 
Bangladesh to address the trade challenges it face d, including those arising from LDC graduat ion. 
She concluded by express ing her Government's commitment to sup port LDC M embers to engage in 
further discussion on graduation issues.  
87. The representative of  the European Union  thanked the  Secretariat for the  informative  briefing , 
and took note of the intervention by the LDC Coordinator  regarding  the sensitivity of the  graduation 
issue. He noted the challenges arising from graduation, in particular in view of the ongoing pandemic. 
His delegation remained committed to continue being engaged in discussions related to graduation.  
88. The representative of  the Secretariat  said that the  standard length of  the graduation process  
was six years. He mentioned that there had been precedence for the postponement of graduation 
due to developmental challenges that had arisen during that six -year period. He was confident that 
at the next Triennial Review in February 2021, the UN CDP would take into account the impact of 
the pandemic on graduating LDCs . It was also important  that graduating LDCs expressed their 
concerns to UN CDP and other UN bodies involved in the  graduati on process . He expected that 
UN Member States would be sympathetic to a well -reasoned  request for an extension of the 
graduation timeline. He also mentioned that  not all LDCs would  necessarily be interested  to change 
their graduati on timeline.  
89. The Chairper son thank ed the Secretariat for the briefing and Members for their statements.  
She said that t his project  on LDC graduation , and also discussions in the WTO, including in the 
Sub-Committee, reflect ed that graduation ha d become a priority issue for the LDCs  in the WTO. She 
was pleased to hear about the progress that ha d been made in the implementation of th e project . 
She thought that the analysis undertaken d id not only benefit the graduating LDCs, but it was useful 
for all Members in enhancing their understanding of the trade -related implications of graduation . 
She said that the Sub -Committee would revisit this agenda item at a future meeting.  She suggest ed 
that the Sub -Committee take note of the briefing pro vided by the Secretariat, as well as the 
statements made.  
90. It was so agreed . 
D. OTHER BUSINESS  
91. Since there were no suggestions for any item , the Chairperson inform ed Members that  the 
next meeting of the Sub -Committee would take place after the summer break . The exact date w ould 
be communicated in due course.  
92. The meeting was adjourned . 
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