RESTRICTED  
  
WT/COMTD/LDC/M/86  
 
1 November 2019 
(19-7458) Page: 1/13 
Sub-Committee on Least Developed Countries  
Eighty -Sixth Session    
 
NOTE ON THE MEETING OF 12 JULY  2019 
 Chairperson: Ambassador Monique  T.G. Van Daalen  (Netherlands)   
A. ADOPTION OF THE AGEN DA ................................ ................................ ....................  1 
B. MARKET ACCESS FOR LE AST DEVELOPED COUNTR IES ................................ .............  1 
(I) Market Access for Products and Services of Export Interest to Least Developed   
Countries (WT/COMTD/LDC/W/66): Update by the Secretariat on Work Relating to  
Utilization of Preferential Market Access granted to LDCs  ................................ .........................  1 
C. TRADE -RELATED TECHNI CAL ASSISTANCE AND C APACITY -BUILDING  
INITIATIVES  FOR LEAST DEVELOPED  COUNTRIES  ................................ ...........................  5 
(I) WTO Technical Assistance and Training to Least Developed Countries: Oral Report  
by the Secretariat  ................................ ................................ ................................ ...............  5 
(II) Standards and Trade Devel opment Facility (STDF): Briefing by the STDF Secretariat  
on Recent Activities Relating to LDCs  ................................ ................................ .....................  8 
D. EIF-WTO PROJECT ON L DC GRADUATION: BRIEFING  BY THE SECRETARIAT  ...........  9 
E. OTHER BUSINESS  ................................ ................................ ................................ .. 12 
 
 
A. ADOPTION OF THE AGENDA  
1. The Chairperson  said that the agenda for the Eighty -Sixth Session of the Sub -Committee on 
Least Developed Countries (hereinafter the Sub -Committee) was contained  in document 
WTO/AIR/COMTD/LDC/13. She mentioned that under "Other Business", she intended  to provide the 
Sub-Committee  with a briefing on  her recent visits to three LDCs, namely Bangladesh , Nepal and 
Rwanda . 
2. The agenda was adopted . 
B. MARKET ACCESS FOR LEAST DEVELOPED COUN TRIES  
(I) Market Access for Products and Services of Export Interest to Least Developed Countries 
(WT/COMT D/LDC/W/66): Update by the Secretariat on  Work Relating to Utilization of 
Preferential Market Access granted to LDCs  
3. The Chairperson  recall ed that at the previous  meeting  held in March  2019, the Sub-Committee 
had considered an update by the Secretariat on trends in LDC trade and utilization of pr eferences  
based on the Secretariat Note titled "Market Access for Products and Services of Export Interest to 
Least Developed Countrie s" contained in document WT/COMTD/LDC/W/66. She recalled that during 
the discussion, Members  had expressed  an interest for  further analysis to better understand the 
reasons why certain preferences were not being fully utilized. As a follow -up, the Economic Research 
and Statistics Division (ERSD) would provide the Sub -Committee with further insights into the 
findings on  prefer ence utilization.  
4. The representative of the Secretariat  (ERSD ) recalled that duty-free and quota -free (DFQF) 
market access for the LDCs had been fostered by WTO Ministerial Decisions and  was an important WT/COMTD/LDC/M/86  
 
- 2 - 
 
  objective of the Istanbul Programme of Action for th e LDCs for the Decade 201 1-2020 (IPoA) as well 
as the sustainable development goals (SDGs) . He said that the Transparency Mechanism on 
Preferential Trade Arrangements (PTAs), which had been adopted in 2010, required 
preference -granting Members to notify tariff and trade data , which  allowed the calculation of 
utilization rates  and could be accessed through the WTO PTA database.  He noted that work on 
preference utilization was also being carried out in the Committee on Rules of Origin (CRO)  to better  
understand which rules of origin requirements hindered the utilization of preferences.  
5. He said that  in 2016  around  80% of overall imports of developed Members had taken  under 
the most-favoured -nation ( MFN) regime , of which 50% had entered MFN duty  free an d around  30% 
had paid MFN duties . While a significant share of imports had taken place under regional trade 
agreements (RTAs), the share of imports covered by  PTAs was relatively small .  
6. He went on to say that the LDC schemes of developed and developing Members differed 
slightly in terms of beneficiaries. In 2016,  the European  Union  and China, respectively, had been  
the biggest destination markets for the LDCs . While t he majority of the LD Cs' exports to the 
European Union w as eligible for preference s, a large part of their exports  to China was MFN duty 
free. 
7. He added  that duty -free market access  granted  to products from  LDCs ha d been increas ing 
over time. While in 2005 close to 50% of tarif f lines worldwide had offered duty -free market access 
to LDCs, this share of duty -free tariff lines had increased to 65% in 2016 . Worldwide d uty-free 
access had also been increas ing for developing countries, but at a lower level, from 40% of duty -free 
tariff lines in 2005 to 50% of duty -free lines in 2016.  
8. He went on to explain how preference utilization could be measured based on import data 
submitted by preference -granting Members under the PTA Transparency Mechanism. Imports could 
be classified according to five duty types. Products that were not covered by preferences could: (i) 
enter duty free on a n MFN basis ; or  (ii) enter under a p ositive MFN duty. Moreover, i n the case of 
products that were covered by preferences, imports could either: (iii) use LDC -specific preferences ; 
(iv) use other preferences ; or (v) not make use of preferences. He said that the utilization rate was 
the ratio between imports that benefitted from an LDC duty scheme (iii) and those imports which 
were eligible for preferential treatment under that duty scheme (iii + iv + v).  
9. Giving the example of the European Union, he said that close to 30% of imports from LDCs 
entered the European Union MFN duty free, a round  65% of imports made use of LDC -specific 
preferences, a small share of imports entered under other preference scheme s, such as  the Economic 
Partnership Agreement between the E uropean Union and Madagascar , and around  5% of LDC 
exports did not make use of the preferences granted.  Regarding the latter, he said that it was 
important to better understand the reasons why certain preferences were not used by LDCs.  
10. He also mentioned that the United States provided pre ferences under the generalized system 
of preferences (GSP) and the African Growth and Opportunity Act (AGOA). While exports  of textile 
and clothing products were not covered by the GSP -LDC scheme, preferences granted under AGOA 
were widely used by LDCs in Africa . Regarding the imports of preference -granting developing 
Members from LDCs, he noted substantial  differences in term s of coverage of preferences as well as 
preference utilization by LDCs. In the case of the Republic of Korea, more than 15% of imports from 
LDCs were not covered by preferences , while in the case of India , around  half of imports from LDCs 
did not make use of preferences despite being eligible.  
11. He went on to explain that the underutilization of preferences tended to be higher for certain 
products. In relative terms, the non -utilization of preferences was the highest  for sugars and 
confectionary ; followed by  fruits, vegetables  and plants ; chemicals ; non-electrical machinery ; wood 
and paper ; and textiles.  He noted that sectors with a  low share of non -utilization of preferences 
could still have a high non -utilization in value terms if export values were high in  those sectors.  
12. He went on to say that there was a positive relationship between preference utilization and 
the tariff margin, which measured the difference between the MFN tariff and the LDC preferential 
tariff. He also noted that preference utilization w as lower for agricultural products as compared to  
non-agricultural products . WT/COMTD/LDC/M/86  
 
- 3 - 
 
  13. He noted  that the large majority of  LDC export  flows were low in value and that only a small 
number of export flows had a high value . The average annual export flow at the HS   6-digit level of 
an LDC to a preference -granting Member was less than US$600 dollars . He noted that preference 
utilization tended to be higher for high -value flows.  
14. He provided some  detail s on the relationship betwee n the underutilization of preferences and 
the gains from utilization in terms of duty savings , which were calculated by multiplying the 
preference margin, i.e. the difference between the MFN tariff and the LDC tariff, with the export 
value. Across the four sectors  "clothing", "fish ", "minerals and metals" and "wood and paper" , there 
was a clear negative relationship between underutilization and duty savings , meaning that  
underutilization was lower when more  duties could be saved  by using the preference s.  
15. He concluded by illustrat ing the duty savings that could be made by increasing preference 
utilization. For instance, while for "coffee and tea" products possible tariff savings were rather small, 
they were high in the case of "clothing" products. He noted that annual LDC exports wor th around  
US$8.7 billion were paying MFN duties  even though the products involved with this amount of 
exports were covered  under  preferences . The  respective MFN duties amounted to  more than 
US$300 million per year . Increasing preference utilization would t herefore allow for duty savings 
and reduce trade frictions.  
16. The representative of Chad, on behalf of the LDC Group, thank ed the Secretariat  for the 
comprehensive presentation . He said that access to developed and developing Members ' markets 
remained a fundamental objective for the LDCs as it was essential to increase  their participation in 
world trade.  He emphasized that better market access and a higher volume of LDC exports would 
have a positive impact on job creation, purchasing p ower and, more generally, on the strength of 
the LDCs' economic and social systems. Th e long-term goal of sustainable growth and development 
necessarily required an enhanced capacity of the LDCs to export their goods and services.  
17. He regretted that the div ersification of LDC exports and imports had been limited . The share 
of LDCs in world exports  had stood at  0.92% and 0.9 0% in 2010 and 2017, respectively. In the case 
of goods, the share of LDCs in world exports had declined from 1.02% in 2010 to 0.98% in 2 017; 
while in the case of services, it had increased from 0.54% in 2010 to 0.65% in 2017.  He said that 
despite positive developments in services and manufacturing exports, the stagnation of  aggregated 
trends  indicate d a structural problem in the  export capacity of the LDCs, and insufficient utilization 
of preferential market access granted to  the LDCs. 
18. Referring to progress being made in terms of connectivity by the LDCs, he said that 
liberalization was not necessarily enough to develop e -commerce and backbone telecommunication 
services. The digital divide had widened despite the progress  that had been  made in terms of access 
to broadband. He highlighted the need to further build infrastructure , human resources and 
technol ogies to support the ir services sector . 
19.  He went on to note that the Council for Trade in Services had agreed to hold a dedicated 
session to review the operation of  notified  preferences under the LDC Services Waiver. He 
highlighted the interest  of the LDC Group  in bring ing LDC services suppliers to share their 
experiences in sectors covered by the notifications made pursuant to the Waiver Decision . This w ould 
enrich  Members'  understanding of what was needed to build awareness and inform the Members hip 
on what had been done to promote LDC services suppl iers. He suggested that  the Secretariat Note 
provide more detail s on trends in exports at the sector level (tourism, transport, other commercial 
service s) for  each LDC as well as information on the destinations of LDC services exports.  
20. He underlined  that more could be  done by developed and developing Members to further 
increase DFQF  market access for products of export interest to the LDCs, particularly for primary  
products and the manufacturing sector (textiles and clothing ). He thanked developed and developing 
Members that  provided the LDCs with preferences in line with the Ministerial Decisions on DFQF 
Market Access, the LDC Services Waiver and Preferential Rules of Origin. He concluded by saying 
that the work of  the Secretariat informed  the LDCs  on the efforts required to fulfil WTO's mandate 
of "positive efforts designed to ensure that developing countries,  and especially the least developed 
among them, secure a share in the growth in international trade commensurate with the needs of 
their economic development".  WT/COMTD/LDC/M/86  
 
- 4 - 
 
  21. The representative  of Afghanistan  thanked the Secretariat  for the informative presentation. 
He expressed interest in learning more about the demand -side and supply -side factors that could 
explain the under utilization of certain preferences. On the demand side, LDC suppliers required 
capacity -building support by developed Members to overcome difficulties they faced in complying 
with sanitary and phytosanitary (SPS) measures and technical barriers to trade (TBT) . Efforts were 
also required to increase the awarenes s of small businesses on the existence of preferences . He 
mentioned that in terms of rules of origin, direct shipment requirements were at times not  possible  
to meet . He provid ed a concrete example  of burdensome certification and administrative 
requirement s that Afghanistan  had to comply with in order to enable its exporters to  benefit from 
preferences granted by a particular  Member.  
22. He expressed interest in further analysis of preference utilization by the Secretariat on the  
reasons for the underutilizati on of preferences  as this would help the LDCs identify and address  key 
capacity  problems . This would also inform preference -granting Members  on possible measures to 
further simplify preferential rules of origin and standards, a s well as  allow capacity building to be 
more demand driven and targete d. Noting  that data on preference utilization referred to the year 
2016, he pointed to the need for broader and more recent data coverage to better inform the 
discussions of LDCs on DFQF market a ccess.  He concluded by thanking preference -granting Members 
for their efforts.  
23. The representative of  the European Union  expressed appreciation for the progress  made  by 
the Secretariat  in the analy sis of the data. She highlighted that helping LDCs utilize  preferences 
should be a priority of Members' efforts . She said that the European Union  provide d comprehensive 
market access  to the LDCs, which accounted for  2.1% of European Union 's imports. She underscored 
the need to  better understand the problems of making use of preference s, and expressed support 
for the work being carried out in the CRO and the Sub -Committee in this respect .  
24. She said the current  granular analysis  would help better understand  possible  reason s for the 
underutilization of preferences, and would be useful in finding possible solutions to improve 
utilization. Referring to the presentation, she noted that a possible  reason for  the underutilization of 
preferences could be the small size of consignment s. She mentioned that the  European Union's 
€6,000 threshold  for origin  certificates  might help explain relatively higher utilization rates in the 
European Union. Pragmatic  measures  needed to be explored , which could help  the LDCs increase 
their world export  share closer to wards  the target of reaching  2% as set by the international 
community . 
25. The representative of Burkina  Faso associated his delegation with the statement made by 
Chad on behalf the LDC Group. Regarding the low utilization of preferences, he said that various 
reports by the Secretariat had revealed difficulties encountered by preference -granting Members in 
the implementation of the Bali and Nairobi Ministerial Decision s on Preferential Rules of Origin for 
LDCs. He noted that disparities among Members in the definition of origin criteria, particularly of 
chang e-in-tariff-classification  criteria, would  give rise to difficulties in  understanding and compliance 
for LDCs. He stressed the need for  deepening  the analysis  by the Secretariat  to better understand 
the reasons for these disparities in the  criteria  of preference -granting Members  and to what extent 
it would be possible  to simplify, harmonize and streamline these criteria . He agreed with the 
representative of the European Union  that simple , practical solutions could be found  both at the 
bilateral level  as well as  at the global level to address problems  encountered on the ground.  
26. The representative  of the United States  noted  that while the presentation showed  the 
utilization rates of the United States'  GSP-LDC scheme, it did not provide information on the 
United  States' other  preference program mes such as AGOA, the Caribbean Basin Trade Partnership 
Act (CBTPA)  and trade preferences for Nepal . She requested that these programmes be  reflected in 
future  presentation s so as to provide for a comprehensive picture of the preferences  that the 
United  States provided . 
27. The representative  of Bangladesh  agreed with the represen tative of  the European Union  that 
small consignments could be a reason for the underutilization of preferences . He added that another 
difficulty  related to compliance with rules of origin could be found in transportation protocol s, in 
particular for landlocked importers such as Switzerland. He encouraged further analysis to identify 
the underlying cause s for the lack of utilization  of preferences by LDCs.  WT/COMTD/LDC/M/86  
 
- 5 - 
 
  28. The representative of the Secretariat  (ERSD ) said that there was still a num ber of open 
questions as to why certain  preferences were not used to the maximum . He said that the 
transportation protocol , direct shipment requirement s, documentary requirements and small 
shipments might play a role . Regarding small shipments, he cautione d that the data used in the 
analysis were annual trade flows, and that transaction level data  would be more informative 
regarding the relationship between small consignments and preference utilization. Nevertheless, he 
highlighted that a round 80% of annual  product -level export  flows of LDCs to the European Union fell 
under the €6,000 threshold for small shipments. He pointed to the need to better understand how 
these transactions were recorded by  customs authoritie s. He acknowledged that further analysis was 
required to better understand the reasons behind the non -utilization of preferences . 
29. Referring to the statement made by the representative of Afghanistan, he noted the possibility 
to analyse demand -side and supply -side determinants of preference utilization. Data had permitted 
the examination of  preference utilization for a specific product across preference -granting Members. 
It was also possible to analyse at the bilateral level which products were more prone to 
underutilization . In addition to analysis, he indicated the possible usefulness of consultations 
between LDC exporters  and customs authorities to better understand how these  processes work ed. 
He said that data coverage in terms of years was limited and that  a number of Members  were yet 
to submit data on preferential imports and tariffs in line with the PTA Transparency Mechanism. He 
concluded by assuring the representative of the United States that efforts would be made to widen 
the scope of the analys is to also cover other preferen ce schemes.  
30. The Chairperson  thanked the Secretariat for the update and Members for their statements. 
She noted the diverse situations of the LDCs and export markets in terms of preference utilization. 
She said that LDCs may consider obtaining a more in -depth analysis of their own country to better 
understand  in which products and markets  preference utilization  was difficult for them . Information 
in this respect was available in the PTA database or could be obtained through th e Secretariat.   
31. She noted that there was scope for improving the utilization of preferences by the LDCs. In 
addition to the costs of complying with rules of origin requirements, the potential gains from the 
utilization of preferences appeared to be another  factor which explained differences in the utilization 
of preferences. She was of the view  that the regular discussions in the Sub -Committee made an 
important contribution to enhance Members' understanding of the market access conditions and 
other factors that shape d LDC trade. She suggested that the Sub -Committee take note of the update 
provided by the Secretariat, as well as the statements made.  
32. It was so agreed . 
C. TRADE -RELATED TECHNI CAL ASSISTANCE AND C APACITY -BUILDING INI TIATIVES 
FOR LEAST DEVELOPED COUN TRIES  
33. The Chairperson  recalled that the Work Programme for the LDCs mandated the 
Sub-Committee to monitor capacity -building initiatives taken in favour of LDCs.  
(I) WTO Technical Assistance and Training to Least Developed Countries: Oral Report by the 
Secretariat  
34. The Chairperson  recalled that every year the Sub -Committee received an update from the 
Secretariat on WTO's technical assistance (TA) and training provided to the LDCs, which, inter alia , 
aimed at helping them better exercise their rights and obligations. She invited the Institute for 
Training and Technical Cooperation (ITTC) to provide the Sub -Committee with the report on the 
activities undertaken in favour of LDCs during 2018.  
35. The representative of the Secretariat  (ITTC) said that the Secretariat continued to give priori ty 
to the LDCs in its delivery of TA. Support was focused on Sub -Saharan Africa, where the majority of 
the LDCs were located. Referring to the Annual Performance Report on TA and Training 2018 
(WT/COMTD/W/245), he noted that the  LDCs had been  associated with 62% of all 
trade -capacity -building activities, while one quarter of face -to-face activities  had been specifically  
directed towards  them. WT/COMTD/LDC/M/86  
 
- 6 - 
 
  36. He went on to elaborate on the activities which had specifically addressed the needs of the 
LDCs. In 20 18, a n introduction course for LDCs in English had been held ( 24 participants ), an 
intermediate course on priority issues of LDCs in the multilateral trading system ( MTS) 
(29 participants), and a South -South dialogue on LDCs and development (48 participant s). He said 
that TA requests from LDCs were given priority both at the regional and national level.  However , in 
2018, only 28% of overall  request s for national activities had come  from LDCs compared to 31% in 
2017, indicating a slower growth of demand from LDCs relative to  non-LDC beneficiaries .  
37. He said that the LDCs were also the main beneficiaries of internship programmes, namely, the 
Netherlands Trainee Programme (NTP), the French and Irish Mission Internship Programme (FIMIP), 
and the Regional Coordinator Internship (RCI) Programme . In 2018, participants from LDCs had 
represented 50% (8/1 6) of participants in the FIMIP and 80% ( 6/8) of participants in the RCI 
Programme. He noted that the NTP , which  had not been implemented in 2018 due to late ar rival of 
earmarked contributions, was being implemented again in 2019. He mentioned  that LDCs had also 
been benefitt ing from the China WTO Accession Internship Programme  and the WTO Young 
Professional Programme.    
38. Regarding WTO's e -learning programme, he s aid that LDCs, especially those  in Africa , had 
been among the biggest users . In 2018, participants from LDCs represented 31% of the total 
e-learning audience. Given the difficulties that LDCs faced at times to participate in face -to-face 
activities, he was  encourag ed by the strong use of e -learning by LDCs. He said that the success of 
WTO's e -learning programme had been a result of sustained outreach efforts  as well as  increased 
efficiency in knowledge transfer through enhanced interactivity and use of mult imedia in the courses.   
39. He went on  to say that discussions were ongoing as part of the preparations for  the Biennial 
TA and Training Plan 2020 -2021. He regretted the low participation of LDCs in these discussions and 
that less than half of the LDCs had responded to a questionnaire which  the Secretariat  had sent  to 
Members  in this regard . He encouraged  those LDCs that had not yet responded, to submit the 
relevant information as this would  help the Secretariat  design program mes that reflect ed their needs 
and priorities . 
40. He concluded by providing some information on the gender  balance of  TA activities. I n 2018 , 
women had constituted 47% of participants in TA activities , compared to  an average of  44% during 
2010-2017. At the level of regions, gender parity in  participation had been achieved in  the 
Caribbean, the Central and Eastern European, Central Asian and Caucasus (CEECAC)  region  and 
Latin America , while women had constituted less than half of the participants coming from 
Asia-Pacific  (46%) , Africa  (39%)  and the Middle East  (38%). 
41. The representative of the Chad, on behalf of the LDC Group, thanked the Secretariat for the 
report  and expressed appreciation for the wor k carried out by the ITTC . He welcomed the continued 
priority that LDCs receive d in the TA activities of the WTO.  He highlighted that TA was an essential 
dimension of WTO's support for a better integration of the LDCs into the MTS through increased 
knowledge of trade policies and WTO Agreements.  Investment in human capital, alongside 
investment in physical infrastructure, played a pivotal role for LDCs' development.  
42. He welcomed the support provided to help LDC missions to better participat e in WTO 
negotiations. Highlighting the importance of the internship programmes, he requested that they be 
continue d under  the best possible conditions to ensure that long -term benefits could be derived  by 
LDCs both in Geneva  and in capital s. He also stres sed the importance of regional activities , which 
should be expanded for both Anglophone  and Francophone  LDCs. H e noted  the efficiency and 
increased use of e -learning, which reflected progress in the LDCs' access to IT technologies, even if 
there was still a long way to go.  
43. Referring to the decreasing number of national activities in the LDCs, he reiterated a concern 
that the LDC Group had been raising in prev ious meetings, namely that the LDCs faced financial 
difficulties to cover the expen ditures  required for national  activities . He suggested that the WTO 
cover local costs to facilitate the implementation of national activities in LDCs . 
44.  The representative of  Mozambique  thanked donors for the support provided , including for the 
implementation of TA activities . She noted that her Government had benefitted from Geneva -based 
as well as  regional activities . However, she regretted that her Government had not been able to fully WT/COMTD/LDC/M/86  
 
- 7 - 
 
  take advantage of national activities for a number of years. While language was a challenge, she 
stressed that her Government also lacked the capacity to cover the local costs for nati onal activities. 
Highlighting the benefits of national activities for government officials as well as the private sector, 
she hoped that a solution could be found to this situation.  
45. The representative of  Afghanistan  expressed appreciation for the support provided by the ITTC  
and highlighted the usefulness of  the NTP , the FIMIP  and the  YPP. He suggested that more national 
and regional activities be carried out as these were more beneficial and cost-effective . He said that 
officials from Afghanistan had often been experiencing difficulties in obtaining a visa for 
Geneva -based courses. He also pointed to the human -resource constraints faced by Geneva -based 
LDC Missions, and stressed the increased need of capacity  building in the post -accession phase  to 
help Members like Afghanistan reap the benefits of WTO Membership.  He drew Members ' attention 
to the fact that Afghanistan had  also been benefitting from bilateral arrangements such as the Indian 
Centre for WTO Studies as well a s the United States' Commercial Law Development Program (CLDP).  
46. The representative of the Secretariat  (ITTC) said that he was aware of the concerns of the 
LDCs, and that discussions to cover local costs were underway but that a decision in this regard 
would need to be taken in close cooperation with Members  and donors . He mentioned that  he was 
also available  to discuss this issue  with the delegation of Mozambique to see whether pragmatic 
solutions  could be found .  
47. He also said that the Secretariat had strengthened its  efforts to increase the number of 
e-learning course s in the three official languages . A new technology platform for e -learning courses 
had been introduced which accommodate d more courses in parallel , and therefore  expand ed the 
diversity of courses in terms of both content and language .  
48. Regarding the statement made by the representative of Afghanistan, he said that the 
Secretariat was trying to create the right balance between support at the national , regional and  
global levels. He confirmed that hard work was necessary not only to  join the WTO, but also in the 
post-accession period where Members required support in exercising their rights and obligations in 
the MTS . He said that the Secretariat was comm itted to help ing Members in their post -accession 
phase and invited r ecently -acceded LDCs to  follow the example of Afghanistan and  collaborate with 
the Secretariat to develop a long -term post -accession TA plan.  He concluded by reiterating  his 
invitation to LDCs , which had not yet had the opportunity to do so,  to submit their response s to the 
questionnaire  for the preparation of the TA plan . He said that the Secretariat was willing  to help the 
LDCs with the submission of their needs and pri orities . 
49. The representative of Chad, on behalf of the LDC Group, welcomed the support provided for 
trade -related academic activities by Universities through the WTO Chair s Programme; it played an 
important role in disseminating knowledge through academic r esearch  and lectures . He expressed 
his support for the continuation of this programme  and called on donors to continue supporting the 
TA products developed by the Secretariat . He said that information flows between the ITTC and the  
LDCs with regard to meet ings and other LDC -related issues could be improved.  
50. The representative of the Secretariat  (ITTC) stated  his availab ility to meet with the LDC Group 
to provide information on TA programmes. He said that Universities in two LDCs, Benin and Senegal , 
were currently part of the WTO Chairs Programme . He mentioned that the questionnaire responses 
that had been received so far confirmed the importance of the Chair Programme for beneficiaries. 
In particular, one third (two thirds)  of beneficiaries considere d collaboration with academics and 
universities to be among the ir top three (top five) priorities. He also mentioned that an academic 
activity was ongoing in Madagascar. He reiterated  support  for academic activities and  said that he  
would be glad to furthe r discuss with the LDCs on how to best provide such support.  
51. The Chairperson  thank ed the Secretariat for the report and Members for their statements.  She 
noted that the LDCs were associated with more than 60% of TA activities and  represented close to 
one third of participants in e -learning courses . She was pleased to note  that the LDCs continue d to 
be a priority beneficiary of WTO trade -related technical assistance . She was encouraged by the good 
number of activities that specifically address ed the needs of  the LDCs , and noted the efforts being 
made by the ITTC to facilitate the accessibility of TA by organi zing activities at the regional level. 
She hoped that the LDCs would continue to take advantage of the various activities offered to them WT/COMTD/LDC/M/86  
 
- 8 - 
 
  by the WTO.  She suggest ed that the Sub-Committee take note of the report made by the Secretariat , 
as well as the statements made.  
52. It was so agreed . 
 (II) Standards and Trade Development F acility (STDF): Briefing by the STDF Secretariat on Recent 
Activities Relating to LDCs  
53. The Chairperson  said that the STDF was a capacity -building initiative to help developing 
countries enhance their capacity to comply with international SPS measures. The LDCs were among 
the major beneficiaries of the STDF, which was why the Sub -Committee ha d been considering this 
item on a periodic basis. She invited the representative of the STDF  Secretariat  to provide the 
Sub-Committee  with an update on the activities relating to LDCs.  
54. The representative of the STDF Secretariat  highlighted that the building of SPS capacity and 
compliance with SPS standards  was a complex undertaking  which often required development 
assistance. She said t hat the STDF  had originally been  established by five Organizations (Food and 
Agriculture Organization, World Bank Group, World Health Organization, World Organisation for 
Animal Health and WTO) and its goal was to collaborate with LDCs and developing count ries to 
increas e their national capacity to implement international  SPS standards and improve market 
access . 
55. Regarding the governance of the STDF, she said that the STDF Working Group held meeting s 
twice per year and included the founding partners, other p artner  agencies , donors, private sector 
and developing country experts. She noted that the  STDF Working Group , was responsible  inter alia , 
for approving the projects  and the Work Programme of the  STDF. Other STDF bodies included the 
STDF Policy Committee which provided the strategic direction for the Facility and the STDF 
Secretariat . 
56. She went on to say that t he STD F had two  pillars  of work. Firstly, the STDF was a global 
coordination and knowledge platform , providing  a network for SPS capacity building. Secondly, it 
was also a funding mechanism for innovative, cross -cutting SPS projects and project development.  
As part of its function as a global knowledge platform, the STDF had developed good practice with 
regard to facilitating safe trade/SPS e -certification, public -private partnerships, good regulatory 
practice and prioritizing SPS investments.  
57. Regarding  its work on prioritizing SPS investments , she said that  the STDF had developed the 
tool Prioritizing SPS Investmen ts for Market Access (P -IMA), which provided guidance on how to 
target resources on SPS capacity building for greate r impact. She said that the P -IMA tool helped 
countries prioritize  and allocate  its SPS investment s based on different criteria such as trade impact, 
employment generation, women's employment or health impact. Hence, this tool provided countries 
with a data -driven and transparent approach to develop priorities  and turn them into SPS projects. 
She said t hat the STDF was currently rolling out the P -IMA framework  in 12 countries , including in 
a number of LDCs such as  Madagascar and  Uganda.  Providing the example of Kenya, she highlighted 
how P -IMA was useful in  promoting dialogue across government agencies, with the private sector, 
academia and other stakeholders, leverag ing resources for SPS capacity building and enhanc ing 
national coordination.  
58. She went on to elaborate on the support provided by the STDF to projects and project 
development. In 2018, 70% of  resources for projects and project preparation grants (PPGs) had 
benefitted LDCs and other low -income countries. In terms of PPG resources, LDCs had benefitted 
from US$0. 65 million  out of total of US$1.11 million. She said that the STDF PPG s consisted in seed 
funding of up to US$50,000 to develop sound bankable projects. The STDF helped countries with 
capacity evaluation and prioritization, feasibility assessment , promotion of synergies and 
mobilization of resources. Recent examples include d a PPG in Burki na Faso on reducing aflatoxins 
and producing safe ma ize, as well as a regional project in Cambodia, Lao PDR and Viet  Nam on 
mapping out challenges in the black pepper value chain.  
59. She explained  that project grants focused on projects that developed good practices, were 
replicable, included regional or global approaches, and were innovative, inter -disciplinary and 
sustainable. She noted that the LDCs were required to provide at least 10% of the STDF 's WT/COMTD/LDC/M/86  
 
- 9 - 
 
  contribution to a project (financial or in kind ). As an example, she referred to a project in Ethiopia 
on improving sanitary capacity to facilitate livestock and meat exports by developing SPS capacity 
along the meat value chain and improv ing market linkages among value chain actors.  Another 
project focused on boosting the capacity of fruit and vegetable producers in Togo , by supporting the 
set up of  an organization of exporters , establishing a mechanism for public -private dialogue  and 
enhancing the capacities of inspection services to ensure tha t horticulture  produce emanating  from 
Togo were pest free.  
60. She invited Members to visit the STDF's website which  contained  project details , information 
on P-IMA as well as other relevant information on its work.  She also mentioned that the next deadline 
for applications for project grants of PPGs would  likely be in December 2019. She concluded by 
saying that the STDF Secretariat was available to  discuss with delegations  their ideas for projects 
and support them with the development of project proposal s. 
61. The representative of Chad, on behalf of the LDC Group,  thanked the  STDF Secretariat for the 
briefing  and welcomed the support provided by the STDF to LDCs to improve their SPS  capacities 
and market access. He highlighted that due to the lack of adequate infrastructure and SPS capacities, 
LDCs faced difficulties in exporting processed products and were instead exporting their produce 
before transformation. Referring to the proje ct in Ethiopia, he mentioned that Chad was also  
well-endowed with livestock but had difficulties in accessing markets with meat. He emphasized that  
it would be useful if the STDF could  help LDCs build their processing capacities by providing support 
for the creation of laboratories  as well as  modern slaughter houses , and help compliance with  
international SPS standards. He concluded by enquiring about the scope and size of support provided 
by the STDF , and whether support also covered infrastructure project s. 
62. The representative of the STDF Secretariat  said that the STDF did not provide support for 
infrastructure  development  such as laboratories. With an annual budget of a round US$5 -6 million, 
the STDF focused on human -capacity building in the SPS area. She suggested that a good starting 
point for Chad and other LDCs would be to apply for a STDF PPG , which allowed mapping out the 
challenges that they face d in a particular sector  such as the livestock and meat value chain . PPGs 
could also be used to conduct feasibility studies t o better understand the costs and benefits  as well 
as the potential investment return  of an intervention . 
63. The Chairperson  thank ed the STDF Secretariat for t he briefing and Chad for the statement. 
The STDF played an important role in helping governments and the private sector to meet 
international SPS standards . She encouraged the LDCs to continue making use of the Facility to build 
their SPS capacity and enhance their access to international markets. She also encouraged Members 
to consider providing support to the STDF so as to benefit LDCs and other developing countries. She 
suggested that the Sub -Committee take note of the briefing made by the STDF Secretari at, as well 
as the statements made.  
64. It was  so agreed . 
D. EIF-WTO PROJECT ON L DC GRADUATION: BRIEF ING BY THE SECRETARI AT 
65. The Chairperson  recall ed that at the meeting on 30 October 2018, the Secretariat of the UN 
Committee for Development Policy  (CDP)  had provided the Sub -Committee with a briefing on LDC 
graduation. At that meeting, the LDC Group had requested assistance from the WTO to help 
graduating LDCs better understand the implications of graduation. In response to this request, the 
Secretariat and th e Enhanced Integrated Framework (EIF) had developed a project on LDC 
graduation which  was benefit ting 12 graduating LDCs. She invited the Development  Division  to 
provide the Sub -Committee  with a briefing on th e project.  
66. The representative of the Secretaria t (Development Division) said that LDC graduation was 
an issue that ha d been gaining prominence  recently  as 12 LDCs  were on their path towards 
graduation from LDC status. He noted that graduation was an over arching  objective of the IPoA, 
with the  aim of en abling half the number of LDCs to meet the criteria for graduation by 2020 , and 
that the UN ha d invited the international community , including the WTO , to consider  providing 
appropriate support to the graduating LDCs  with a view  to ensur ing a smooth transition.  WT/COMTD/LDC/M/86  
 
- 10 - 
 
  67. He said that shortly after the LDC Group's request for assistance in the Sub -Committee  in 
October 2018 , it had submitted a formal TA request  to the WTO Secretariat. The Secretariat had 
then collaborated with the EIF Executive Secretar iat to develop a project  proposal , which had been 
approved by the EIF Board in January 2019. He mentioned  that the Secretariat had also informed 
the Committee on Budget, Finance and Administration  on this extra -budgetary support from the EIF . 
He noted that  the Secretariat had started the implementation of the project in March 2019.  
68. He went on to say that t he beneficiaries of th e project were 12 LDCs  which were on the path 
towards graduation : two LDCs in Africa (Angola and Sao Tom é and Principe ); six LDCs in  Asia 
(Bangladesh, Bhutan, Lao PDR, Myanmar, Nepal and Timor -Leste ); and four LDCs in the Pacific 
(Kiribati, Solomon Islands, Tuvalu and Vanuatu ). The objectives of the project were to enhance the 
understanding of the graduating LDCs on the implications of  graduation, in particular with regard to 
their participation in the WTO as well as market access . Furthermore, the project aim ed at helping 
governments to identify the measures required to remain WTO compliant following graduation , as 
well as to identify policy options to address the challenges that they may face as a result of 
graduation from LDC status.  
69. He explained that the analytical work w ould be carried out both at the horizontal level as well 
as the country -specific level. The issues that were being examined include d, inter alia , impact on 
WTO-related matters, preferential trade, regi onal trade, development cooperation , national 
strategies  and policy options for graduating LDCs . In addition to th e analytical work, the activities 
of the project w ould cover the organi zation of regional workshops, which would provide  capital -based 
officials  an opportunity to enhanc e their capacities on graduation , share their experiences and 
discuss the finding s of the analysis being carried out . He said that outputs of  the work would be  
presented  on the side -lines of the Twelfth WTO Ministerial Conference ( MC12 ) in Kazakhstan in 202 0, 
as well as at the Fifth UN C onference on the LDCs in Qatar in 2021.  
70. In terms of substance, h e said that the horizontal analysis  would mostly be carried out by the 
Development Division in collaboration with other relevant divisions  such as the  Economic Research  
and Statistics  Division , which  would  conduct a partial  equilibrium  analysis to estimate the impact of 
the possible loss of  preferences on the exports of graduating LDCs. An external  consultant had been 
hired to draft a chapter on the impact  of graduation  on development cooperation. For the 
country -specific analyses , two external consultants with local knowledge would contribu te to the  
analyses of  graduating LDCs in Asia and the P acific.  
71. He said that considerable analytical work  on LDC graduation was also being carried out  by 
other institutions . Once an LDC qualified for graduation, t he UN CDP Secretariat undertook  detailed  
ex-ante impact assessmen ts and UNCTAD prepared  vulnerability profile s. Regional economic 
commissions such as the UN Economic and Social Commission for Asia and the Pacific ( UNESCAP)  
were carrying  out specific tasks , and the EIF also covered graduation as part of its Diagnostic Trade 
Integration Studies (DTIS) and in the context of productive -capacity building projects. He said that 
the Secretariat would exploit  synerg ies with existing analysis and add value with its own work .  
72. He went on to say that the impact and challenges of graduation would  vary across the 12 
graduating LDCs  as they were  not homogen ous in terms of their integration in the MTS. Some were 
original WTO Members  that had joined the Organization in 1995 , some ha d undergone the WTO 
accession process  (Art. XII Members),  some were i n the process of accession , and a few had no 
status with the WTO. For instan ce, Article XII LDC Members  had undertak en higher obligations th an 
original Members, requiring them little adjustments in integrating WTO rules and disciplines following 
graduation.   
73. He further explained that the impact on trade w ould depend on the direction of exports o f 
graduating LDCs. The impact would likely be limited if exports occurred mainly at the regi onal level 
through regional trade agreements and be bigger if exports were dependent on non -reciprocal 
preferences in developed markets. He mentioned that the impact on preferential trade would  depend 
on three  factors: export structure , the margin of prefe rences and the utilization of preferences. The 
impact from the loss of preferences would be higher if  preference margin s and  utilization rates were 
high.  
74. He went on to say that the Secretariat was coordinat ing its work with that of other 
international age ncies. WTO was part of the UN Inter -Agency Task Force on LDC Graduation (IATF) WT/COMTD/LDC/M/86  
 
- 11 - 
 
  that was led by the UN Office of the High Representative for the Least Developed Countries, 
Landlocked Developing Countries and Small Island Developing States  (UN-OHRLLS ). Collaboration 
with other agencies was also being sought for the organiz ation of  activities. For instance, WTO and 
UNESCAP jointly had organized a Regional Workshop on Graduation for LDCs in Asia from 30 April 
to 2 May 2019. The workshop had benefitted from the participation of the Secretariat of the UN  CDP, 
the EIF and the Chairperson of th e Sub-Committee. Going forward , the Secretariat  would join a  
mission  of the IATF to Sao Tom é and Principe  in September 2019 and was  planning to organize a 
regional workshop in Port Vila, Vanuatu in October 2019.   
75. He said that the international community was aware of the challenges of graduation . As an 
example  of support , he mentioned that  the GSP regulation  of the European Union included a 
three -year transition period for the trade preferences of graduating LDCs . He also mentioned that 
the LDC Group had tabled a proposal in the context of the Agreement on Subsidies and 
Counter vailing Measures (SCM), which was being reviewed in the C ouncil for Trade in Goods.  He 
concluded by saying that the project aimed at  better prepar ing the LDCs to embrace graduation. 
The Secretariat would  be in  regular touch with the graduating LDCs and could provide the 
Sub-Committee with a briefing on the progress of work at a future meeting.   
76. The representative of the Executive Secretariat  (EIF) said that the  EIF in -country structures , 
embedded  in the Ministries responsible for trade,  would support the implementation of the project 
on the ground and ensure  effective  coordination  with local stakeholders and development partners. 
She also highlighted the importance of the implementation of recommendation s that would come 
out of the project. I n that respect, the EIF , with its longstanding institution al-capacit y building 
programme in LDCs , was well-placed to support the mainstreaming of policy measures into LDCs'  
national development plan s and subsequently  to support the implementation of those measures.  
77. She went on to say that support  to graduating LDCs to ens ure a smooth  transition and 
institutional sustainability was a priorit y in the  EIF Strategic Plan  2019-2022. Support was being  
provided through  three channels . Firstly, the EIF support ed analytical  work with focus on regulatory 
reform  and the assess ment of the impact of graduation . Besides the work being carried out with the 
WTO, this was also done through the EIF's DTIS, as Cambodia  and Bangladesh  had included a 
graduation chapter in their DTIS Update s. The EIF was also collaborating with  the UN CDP  Secretariat 
to reflect the findings of the ex-ante impact assessments  in the  DTIS and the subsequent national 
implementation plan s. Second ly, the EIF also support ed LDCs to develop a strategy  to help them 
prepare  for graduation  (Cambodia) and to engage in experience -sharing with recently graduated 
countries (Vanuatu) . Thirdly, through institutional and productivity -capacity building projects, the 
EIF supported  LDCs to strengthen institutional coordination and leverage  additional  investments in 
view of graduation .  
78. She concluded by highlight ing that the EIF continued to provide  support to graduated LDCs 
for a period of five years after their graduation.  She looked forward to working closely with LDCs, 
donors and other partners, in cluding the WTO Secretariat, to support the LDCs with graduation.  
79. The representative of Chad, on behalf of the LDC Group,  expressed his satisfaction with the 
EIF-WTO project . LDC graduation was a priority of the  Group 's work at the WTO and highlighted as 
such in the Declaration of LDC Trade Ministers at the Eleventh WTO Ministerial Conference (MC11) 
in Buenos Aires in 2017. He underlined the importan ce of flexibilities for a smooth transition from 
LDC status to developing country status . In this context, he recalled that the LDC Group had 
submitted a proposal with regard to the SCM Agreement , calling on WTO Members to ensure that 
graduating LDCs would  enjoy the same flexibilities as  the developing Members referred to in 
Article  27.2(a), in line with  the logic of Article 10.4 of the Doha Declaration on Implementation -
related Issues and Concerns . 
80. He said that he was pleased that  the project responded to the request made by the Group  and 
aimed to help graduating LDCs achieve a  smooth transition.  Recalli ng that 12 LDCs were on the path 
towards graduation, h e said that all LDCs were working hard to graduate , as this would provide them 
with more economic importance . He recommended  that a special  workshop be held for the LDCs to 
discuss  the mechanism to be p ut in place by the EIF and the WTO  on graduation.   
81. The representative  of Norway  said that he was encourag ed to see the WTO  Secretariat  and 
the EIF collaborate on this project  to facilitate the transition of graduating LDCs . He recalled that WT/COMTD/LDC/M/86  
 
- 12 - 
 
  the SDGs  called for the promotion  of inclusive and sustainable growth and set an  ambitious goal to 
end poverty in all its forms everywhere . He said that Norway's  highest Aid-for-Trade priority was to 
assist the LDCs in  climbing  the develop ment ladder. He noted that there would be many challenges  
after graduation  from LDC status , and assured that  Norway w ould stand by those LDCs  during this 
process.  
82. The representative of the Secretariat  (Development Division) welcome d the support expressed 
by the representative of Norway  and the LDC Group . He said that the Secretariat would work hard 
to ensure that the EIF -WTO project would meet the expectations  of Members and particularly those 
of the graduating LDCs , so that they  could better prepare  themselves  for the post-graduation  phase.   
83. Referring to the statement made by the representative  of Chad, he said that in the LDC 
Ministerial Declaration at MC11 it had been the first time that the LDC Trade Ministers had  invited 
the attent ion of WTO Members to take  positive action s for LDCs on graduation. He also noted that  
subsequent to the Declaration , the LDC Group had made a specific submission  on graduation relating 
to the SCM Agreement . He concluded by saying  that the Secretariat woul d explore  the possibilities 
of having national and regional workshops so as to enhance the knowledge of capital -based officials  
on graduation . This would be in addition to activities  that would benefit Geneva -based officials.  
84. The Chairperson  thanked the Secretariat for the briefing and Members for their statements . 
She was pleased  to hear about the progress that  was being made in the implementation of th e EIF-
WTO graduation project. She hoped that the graduating LDCs w ould find this work fruit ful and look ed 
forward to hearing another update on the project in a future meeting. She suggest ed that the 
Sub-Committee take note of the briefing provided by the Secretariat , as well as the statements 
made.  
85. It was  so agreed . 
E. OTHER BUSINESS  
86. The Chairperson  provide d the Sub -Committee with  a short briefing on her recent visits to 
Rwanda, Bangladesh and Nepal. She noted that the t hree LDCs had to deal with inherently different 
situations and specific issues with regard  to their development, such as post-conflict recovery and 
being landlocked.  
87. She said that in November 2018, she had joined a mission organized by the EIF to Rwanda , 
where she could learn first -hand about Rwanda's  trade and development landscape. As an example, 
she highlighted  the efforts undertaken to facilitate cross -border trade markets and to make them 
safer, as this  was especially important for women who ma de up the majority of cross -border traders. 
She wholeheartedly thank ed the Government of Rwanda and the EIF  for organiz ing the visit, as it 
helped her in her tasks as Chair.  
88. She went on to say that in May 2019, she  had had the opportunity to visit Bangladesh and 
Nepal, following her participation in a Regional Workshop on LDC Graduation in Bangkok. This 
Worksh op, which had been  organized by the UN ESCAP  and the WTO, had provided her with an 
opportunity to have a dialogue with delegates  from different LDCs that were on the path towards 
graduation.  
89. During her visits to Bangladesh  and Nepal , two countries at diffe rent stages of their 
development plans, she was able to appreciate  the resolve of these two countries to embrace 
graduation. In both countries, she had had exchanges  with government officials . She was 
encouraged to see the commitments by these Governments to ensure a smooth transition towards 
graduation . She said that the insights  gained  would help to guide her in her efforts as Chair of th e 
Sub- Committee. She expressed her gratitude to the  Governments of Bangladesh and Nepal , as well 
as to the Secretariat for facilitating the visit. 
90. The representative of the Chad, on behalf of the LDC Group,  said that he was glad to hear 
about  the visits of the Chairperson to the three LDCs. He  was appreciati ve of h er efforts to experience 
the realities on the ground , as it was important  to better understand the challenges faced by  LDCs. 
He thanked the Chairperson for her efficiency in running the Sub -Committee and encouraged her to 
make further visits to other LDCs.  WT/COMTD/LDC/M/86  
 
- 13 - 
 
  91. The Chairperson  thanked the representative of Chad for his statement. She said that at the 
next meeting , the Sub -Committee would discuss the Secretariat Note on the annual review of market 
access for products of export interest to LDCs  and consider  report s by the Secretariat on the annual 
review of developments in preferential rules of origin  as well as the state of play in LDC Accessions.  
She also suggested that the UN -OHRLLS  be invited  to provide the Sub -Committee with a briefing on 
the preparatory process leading up to the Fifth UN Conference on the LDCs (LDC -V), which w ould 
take place in Qatar in 2021. She noted that t he UN General Assembly Resolution 73/242, adopted 
on 20  December  2018, mandated the UN-OHRLLS  to be the focal point for the preparations for the 
LDC-V Conference.  She also informed Members that the next meeting was  tentatively scheduled for 
6 November 2019.  
92. The meeting was adjourned . 
__________