WT/COMTD/W/214  
 
9 November 2015  
(15-5911)  Page: 1/5  
Committee on Trade and Development    
 
 DUTY-FREE AND QUOTA-FREE (DFQF) MARKET ACCESS  
FOR LEAST DEVELOPED COUNTRIES 
REPORT BY THE SECRETARIAT1 
1  INTRODUCTION 
1.1.  The Sixth Ministerial Conference (MC6) held in Hong Kong, China in December 2005 adopted 
a decision on Duty-Free and Quota-Free (DFQF) market access for least developed countries 
(LDCs) (Annex F, WT/MIN(05)/DEC). Among others, the decision stipulated that the Committee on 
Trade and Development (CTD) shall annually revi ew the steps taken to provide DFQF market 
access to the LDCs, and report to the General Council for appropriate action. 
1.2.  In the context of further implementation of  the decision taken at MC6, the Ninth Ministerial 
Conference (MC9) held in Bali in December 2013 adopted a decision (WT/L/919) on DFQF market 
access for LDCs (hereafter, the Bali DFQF Decision),  which reiterates that the CTD shall continue to 
annually review the steps taken to provide DFQF market access to the LDCs, and report to the 
General Council for appropriate action. To aid in the CTD's annual review, the Bali DFQF Decision 
also mandates the WTO Secretariat to prepare, in close coordination with Members, a report on Members' DFQF market access for LDCs, at the tari ff line level, based on their notifications.  
1.3.  This report is the second of its kind prep ared to facilitate the CTD's annual review of steps 
taken to provide DFQF market access to the LDCs. It builds upon, and updates, the previous report issued in November 2014 and circulated in document WT/COMTD/W/206.  
2  METHODOLOGY  
2.1.  This report is prepared based on Member s' notifications to the WTO, pursuant to the 
Transparency Mechanism for Preferential Trad e Arrangements (hereafter, PTA Transparency 
Mechanism). For the purposes of this report, duty-free coverage of tariff lines is derived on the 
basis of data furnished by Members to the WT O's Integrated Database (IDB). The duty-free 
coverage denotes the percentage of tariff lines th at are duty free for LDCs in relation to each 
preference-granting country's total national tariff lines. The duty-free lines for LDCs also include 
MFN duty-free tariff lines. 
3  BACKGROUND ON NOTIFICATION PROCEDURES 3.1.  It may be noted that non-reciprocal DFQF or preferential market access schemes of Members 
in favour of LDCs are dealt with by different legal instruments in the WTO. Developed Members 
implement DFQF market access to LDC products, mainly through their autonomous GSP 
programmes – which secures legal cover through the Enabling Clause adopted in 1979 (The Decision on "Differential and More Favourable Treatment, Reciprocity and Fuller Participation of 
Developing Countries"). The Enabling Clause notifications are vested in the CTD. 
3.2.  Developing Members' DFQF/preferential schemes for LDCs are authorized through a Waiver 
Decision initially adopted by Members in 1999 (WT/L/304), and extended until 30 June 2019 
                                               
1 This document has been prepared under the Secret ariat's own responsibility and is without prejudice 
to the positions of Members or to thei r rights and obligations under the WTO. WT/COMTD/W/214 
 
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  (WT/L/759). The initial notification body for deve loping countries' preferential schemes is the 
Council for Trade in Goods (CTG).2  
3.3.  In addition to the above, as per the proc edure set out in the PTA Transparency Mechanism, a 
dedicated session of the CTD is envisaged to take up  each PTA notified in the CTD, with a view to 
enhancing its transparency. 
4  DFQF COVERAGE FOR LDCS, AT THE TARIFF LINE LEVEL 4.1  Developed Members 
4.1.  All developed Members of the WTO offer DFQF market access to the LDCs, and have notified 
specific GSP schemes for them. Most of these developed Members had notified their DFQF schemes prior to the adoption of the PTA Transparency Mechanism.  
4.2.  The number of dutiable lines in developed markets for LDC products is rather limited, since 
most developed Members already provide full or significant DFQF coverage to the LDCs. Hence, the 
scope for additional progress in many developed markets is rather limited. Nevertheless, since the last report, there has been some progress toward s improving existing DFQF coverage in certain 
developed Members. For instance, at the CTD meeting on 23 September 2015, the delegation of 
the United States (US) reported that necessary legislative steps have been taken to eliminate duties for LDCs for five tariff lines of upland cotton covering out-of-quota quantities of these 
products. This would be in addition to the seven tariff lines of upland cotton which were designated 
for duty-free treatment under GSP for LDCs in 2012. At the same meeting, the delegation of Montenegro informed Members that legislation was being prepared to grant DFQF market access to LDCs, the scope of which would be synchronised with Montenegro's negotiations with the European 
Union. 
4.3.  A summary of developed Members' DFQF coverage is provided below in Table 1. The number 
of dutiable lines is somewhat higher for Iceland (91.8%) and the US (82.6%). The Russian 
Federation's GSP sub-scheme for LDCs allows du ty-free access to 36.3% of its tariff lines. 
                                               
2 It is to be noted that the substantive consideration of both developed as well as developing countries' 
DFQF or preferential schemes are undertaken at the Sub-Committee on LDCs. WT/COMTD/W/214 
 
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  Table 1: DFQF access in GSP schemes of de veloped Members, 2015 or latest available 
year 
Members Duty-free coverage  
(major exclusions) Number of dutiable lines  
(national tariff lines)a References on 
notifications 
Australia 100% 0  WT/COMTD/N/18 
Canada 98.6% (dairy, eggs and poultry)  105 WT/COMTD/N/15/Add.1,  
WT/COMTD/N/15/Add.2 and 
WT/COMTD/N/15/Add.3 
European Union 99.0% (arms and ammunitions)  91 WT/COMTD/N/4/Add.2, 
WT/COMTD/N/4/Add.4, WT/COMTD/N/4/Add.5 and WT/COMTD/N/4/Add.6  
Iceland (2014) 91.8% (meat and dairy products, 
eggs, vegetables and plants, cereals 
and starch, other food preparations)  707 WT/COMTD/N/17 
Japan (2014)  97.9% (rice, sugar, fishery products, 
articles of leather) 197 WT/COMTD/N/2/Add.14 and 
WT/COMTD/N/2/Add.15 
New Zealand 100% 0 WT/COMTD/27 
Norway 100% 0  WT/COMTD/N/6/Add.4 and 
WT/COMTD/N/6/Add.5 
Russian 
Federation 
(2014) 36.3% (petroleum products, copper, 
iron ores, articles of leather, articles 
of apparel and clothing) 7415 WT/COMTD/N/42 
Switzerlandb 100% 0  WT/COMTD/N/7/Add.2, WT/COMTD/N/7/Add.3, WT/COMTD/N/7/Add.4 and 
WT/COMTD/N/7/Add.5 
United States 82.6% (dairy products, sugar, 
cocoa, articles of leather, cotton, 
articles of apparel and clothing, 
other textiles and textile articles, 
footwear, watches) 1862 WT/COMTD/N/1/Add.7 and 
WT/COMTD/N/1/Add.8 
a These tariff lines may vary from year to year due to change in national tariff nomenclature. 
b Switzerland and Liechtenstein form a Customs Union. Source: WTO Integrated Database 
 
4.4.  It may be noted that a few Members maintain multiple non-reciprocal market access schemes benefitting LDCs. For example, the US Africa n Growth and Opportunity Act (AGOA) offers 
non-reciprocal market access to eligible countries in Sub-Saharan Africa, which includes a large 
number of LDCs. The US provides 97.5% DFQF access for African LDC beneficiaries under AGOA. In addition, Haiti benefits from DFQF market access in the US through the Caribbean Basin Trade 
Partnership Act (CBTPA). 
4.5.  The review of developed Members' tariff schedules schemes indicate a relatively small 
number of tariff lines subject to Tariff-rate Quotas (TRQs) for imports from LDCs. TRQs indicated in the Canadian tariff schedule spread over some 140 tariff lines (e.g. dairy, egg, poultry and meat 
products). There are some 132 tariff lines (e.g. meat, dairy products sugar, cocoa, tobacco) 
subject to TRQs indicated in the US tariff schedule. It may be noted that while beneficiaries of the US GSP scheme other than LDCs may face automati c limits on the quantity or value of any one 
product imported under the scheme, the LDCs are not subject to this restriction.  
4.2  Developing Members 4.6.  Developing Members, namely: Chile, China, India, Korea, Chinese Taipei and Thailand, have 
so far, notified their DFQF schemes put in place in favour of LDCs. Developing Members are 
permitted to phase-in their DFQF commitments for LDCs. They have also been accorded flexibility in the coverage of such commitments. The scope and coverage of preferences granted by these 
developing Members vary from one scheme to another.  
4.7.  Most of these developing Members grant a significant degree of DFQF access to the LDCs; a 
number of them have reached or are in the process of attaining comprehensive DFQF coverage for LDCs. For instance, Chile provides nearly full DFQF coverage to the LDCs, with 99.5% DFQF access 
to the LDCs.  
4.8.  Since the last report, continuous progress has been noted in providing DFQF access to LDCs. 
Thailand notified its DFQF scheme in favour of LDCs (WT/COMTD/N/46) in July 2015, which 
provides DFQF market access on 73.2% of its ta riff lines. At the CTD meeting of 16 March 2015, WT/COMTD/W/214 
 
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  China informed Members that it had expanded its DFQF scheme for LDCs, and since 
1 January 2015, it has been according LDCs DFQF market access on 97% of its tariff lines. At the same meeting, India reiterated that it had increased DFQF coverage to LDCs for around 96% of its tariff lines (at the aggregated 6-digit level) since 1 April 2014 as well as preferential access on an 
additional 2.2% of its ta riff lines (WT/COMTD/M/93).  
4.9.  Three developing Members, namely the Kyrgyz Republic, Tajikistan and Turkey, have 
provided preferential tariff data to the IDB, though  they are yet to make a notification pursuant to 
the PTA Transparency Mechanism. In 2013, the Kyrgyz Republic provided nearly complete 
duty-free market access to products originating fr om LDCs. Data provided by Tajikistan indicates 
some duty-free tariff lines for LDCs in 2014, alon g with preferential treatment on a large number 
of tariff lines. The duty-free coverage of Turkey for LDCs stood at 79% in 2013.  
4.10.  A summary of developing Members' DFQF coverage is provided below in Table 2. The DFQF 
coverage indicated in the Table is based on data provided to the IDB.  
Table 2: DFQF access under selected develo ping Members' LDC preference schemes, 
2015 or latest available year 
Membersa  Duty-free coverage (major  
exclusions) Number of dutiable lines  
(national tariff lines) b References on 
Notifications 
Chile  99.5% (wheat, wheat flour and 
sugar) 41 WT/COMTD/N/44 
WT/COMTD/N/44/Add.1/Rev.1 
China (2014) 94.9%c (agricultural products, 
chemicals, machinery, paper and 
wood products, cotton, skins) 673 WT/COMTD/N/39 and 
WT/COMTD/N/39/Add.1/Rev.1 
India  94.0% (meat and dairy products, vegetables, coffee, tobacco, iron 
and steel products, copper 
products)
 686 WT/COMTD/N/38 
Korea, Republic of  90.3% (meat, fish, vegetables, 
food products) 1185 WT/COMTD/N/12/Rev.1 and 
WT/COMTD/N/12/Rev.1/Add.1 
Kyrgyz Republic 
(2013) 99.9% (meat, fruits, chemicals, 
wood and paper, machinery, 
watches) 15 IDB 
Chinese Taipei 31.0%. Some 136 products enjoy 
exclusive duty-free access, 
including selected plastic items, 
raw hides and skins, textile and 
clothing articles, parts of vehicles, 
precious stones, etc. 6159 WT/COMTD/N/40 
WT/COMTD/N/40/Corr.1 
Tajikistan (2014) 3.7%. Duty-free access includes 
live animals, petroleum products, 
machinery products. 10553  IDB 
Turkey (2013) 79.0% (meat, fish, food, steel 
products, etc.) 2480 IDB 
a This Table has no implications for any matter relating to the level of development of WTO Members. 
b These tariff lines may vary from year to year due to change in national tariff nomenclature. c China has reported that it has expanded DFQF coverage for LDCs to 97% of its tariff lines, as of 1 January 2015.   
Note: Thailand has notified its DFQF scheme for LDCs, according to which it grants DFQF access on 73.2% of its tariff 
lines. Upon submission of requisite data, the Secretariat will be able to include appropriate data in this Table. 
Source: WTO Integrated Database 
 
4.11.  In addition to the above developing Memb ers, Brazil had announced at the WTO Ministerial 
Conference in 2009 that it would grant DFQF access for products from LDCs. It may be noted that, 
like some developed Members, a number of develo ping Members also accord preferences to LDCs 
through regional or bilateral channels.3 Morocco notified in 2001 (G/C/6) that it exempted some 
products originating from African LDCs from import duties. Some 1.4% of its tariff lines have been estimated to be duty-free for these LDCs. 
4.12.  The review of developing Members' tariff schedules also indicates a low number of tariff 
lines subject to TRQs for imports from LDCs. In th e case of China, LDCs enjoy preferential market 
                                               
3 For example, unilateral preferences are grante d to a number of LDCs under China-ASEAN FTA 
framework (WT/TPR/S/300/Rev.1). Similarly, preferential rates are granted by India to South Asian Free Trade Agreement (SAFTA) LDC members (WT/TPR/S/249/Rev.1; WT/TPR/S/313/Rev1).  WT/COMTD/W/214 
 
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  access for some 47 tariff lines within the quota limits. TRQs are also identified in Korea's tariff 
schedule for only 4 tariff lines, though th ese are not specific for LDC beneficiaries. 
5  CONCLUSION 5.1.  Continuous efforts are being made to advance DFQF market access for LDC products.  DFQF 
market access remains a standing item on the CTD's agenda. A special CTD meeting was held on 
23 September 2015 allowing Members an opportunity to have an in-depth exchange of views on 
issues surrounding the implementation of DFQF market access for LDC products. Members 
continue to take actions to work towards improving market access opportunities for LDCs. 
5.2.  The above review shows that nearly all deve loped Members provide either full or significant 
DFQF market access to LDC products. The except ions to duty-free treatment relate to a few 
sectors, and to a limited number of developed Memb ers. The Bali DFQF Decision stipulates that: 
"Developed-country Members that do not yet provide duty-free and quota-free market access for 
at least 97% of products originating from LDCs, defined at the tariff line level, shall seek to improve their existing duty-free and quota-free co verage for such products, so as to provide 
increasingly greater market access to LDCs, prior to the next Ministerial Conference".  
5.3.  Developing Members, namely: Chile, China, India, Korea, Chinese Taipei and Thailand have 
notified their individual DFQF schemes to  the WTO. Some of these Members provide 
comprehensive DFQF access to LDCs. In addition, three developing Members (the Kyrgyz Republic, 
Tajikistan and Turkey) offer DFQF market access to LDCs. The Bali DFQF Decision stipulates that: "Developing-country Members, declaring themselves in a position to do so, shall seek to provide 
duty-free and quota-free market access for produc ts originating from LDCs, or shall seek to 
improve their existing duty-free and quota-free co verage for such products, so as to provide 
increasingly greater market access to LDCs, prior to the next Ministerial Conference".  
5.4.  It is recommended that Members introducing or improving DFQF market access for LDCs 
provide detailed information to the WTO, pursua nt to the PTA Transparency Mechanism. This 
would enhance transparency on preferences bein g accorded by Members to the LDCs and would 
allow this to be included in any future reports by the Secretariat. 
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