RESTRICTED  
  
WT/COMTD/LDC/M/82  
 
29 August  2018 
(18-5403) Page: 1/15 
Sub-Committee on Least Developed Countries  
Eighty -Second Session    
 
NOTE ON THE MEETING OF 25 APRIL 2018  
Chairperson: Ambassador Monique  T.G. Van Daalen  (Netherlands)  
 
A. ADOPTION OF THE AGEN DA ................................ ................................ ....................  1 
B. MARKET ACCESS FOR LE AST DEVELOPED COUNTR IES ................................ .............  2 
- Annual Review (2017) of the Developments in Preferential Rules of Origin for LDCs 
in the Committee on Rules of Origin: Report by the Secretariat  ................................ ................  2 
- Update on LDCs' Goods and Services Trade, including Recent Trends in Tourism: 
Report by the Secretariat  ................................ ................................ ................................ ..... 3 
C. TRADE -RELATED TECHNICAL AS SISTANCE AND CAPACIT Y-BUILDING 
INITIATIVES FOR LEAS T DEVELOPED COUNTRIE S ................................ ...........................  9 
- Update on the Enhanced Integrated Framework (EIF): Report by the EIF Executive 
Secretariat  ................................ ................................ ................................ .........................  9 
D. 7TH UNIDO LDC MINISTERIA L CONFERENCE, VIENNA , AUSTRIA, 23 -24 
NOVEMBER 2017  ................................ ................................ ................................ ............  11 
- Report by the UNIDO Representative to the UN and other International 
Organizations in Geneva  ................................ ................................ ................................ .....11 
E. OTHER BUSINESS  ................................ ................................ ................................ .. 13 
 
 
A. ADOPTION OF THE AGENDA  
1. Opening the meeting, the Chairperson  thanked  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-Second  Session of the Sub-Committee  was contained in document 
WTO/AIR /COMTD/LDC/ 9.  
2. The representative of the European Union  (EU) congratulated the Chair person  on her 
re-election. She said that u nder the Agenda item " Other Business ", she intended to provide  some 
information on the ongoing review of the  EU's G eneraliz ed System of Preferences (GSP)  regulation 
which would  be up for renewal  in a few years.  
3. The representative of  the Central African Republic , on behalf of the LDC Group , 
congratulated the Chair person  on her  re-election. He said that u nder "Other Business ", the LDC 
Group intended to make an intervention regarding the  LDC Ministerial Declaration  that had been 
adopted at the LDC Trade Ministers' Meeting  prior to the Eleventh WTO Ministerial Conference  
(MC11) . 
4. The agenda was adopted  as amended . WT/COMTD/LDC/M/82  
 
- 2 - 
 
  B. MARKET ACCESS FOR LE AST DEVELOPED COUNTR IES 
- Annual Review (2017) of the Developments in Preferential Rules  of Origin for LDCs in 
the Committee on Rules of Origin: Report by the Secretariat   
5. The Chairperson  recalled that as per Ministerial Decisions, the Secretariat was to provide the 
Sub-Committee with a report on the outcome of the annual review undertaken by the Committee 
on Rules of Origin  (CRO)  on 4 October 2017 . She invited  the Director of the Market Access Division  
to provide a report  on the deliberations of the CRO. 
6. The representative of the Secretariat  (Director, Market Access Division)  noted that a  detailed 
report of the 2017 annual review had been forwarded to the General Council (G/RO/85). She said 
that the CRO had  adopted a new template for the notification o f preferential rules of origin for 
LDCs. Almost all preference -granting Members ha d already notified their requirements using this 
template. She mentioned that t he template would  allow for a better understanding  of current rules 
of origin , and contribute t o focused discussions a s well as  the identification of best practices. This 
work ha d started in 2017 and would  continue over the coming months.  
7. She continued by  saying that the CRO had also  initiated an examination of preferential 
utilization rates based o n calculations made by the Secretariat ( contained in  document 
G/RO/W/168/Rev.1). Since  low utilization rates could  indicate difficulties in complying with origin 
requirements , she pointed to the possible role of  the CRO in undertak ing focused discussions and 
making  recommendations  in this area.  
8. She went on to say that a number of pr eference -granting Members had informed the CRO 
about the measures they had been  taking to implement the provisions of the Bali and Nairobi 
Decision s. There had been an encouraging number of measures targeted at  simplify ing origin 
requirements and therefore improv ing the ability of LDCs to comply with such requirements. For  
instance, China  had introduced several new features including bi lateral and regional cu mulation;  
Norway had introduced cumulation among LDCs;  and Canada had simplified the rules for some 
textiles and clothing products.  
9. She noted that t he Chair  of the CRO had  recommended the continuation of  technical work in 
reviewing current origin requirem ents and identifying best practices.  He had also recommended 
narrowing the focus of discussions to take up more specific items, perhaps with the assistance of 
thematic, background notes  to be prepared by Secretariat.  
10. She concluded by inform ing the S ub-Comm ittee that at the CRO meeting  held on 
19 April 2018, the LDCs  had presented a submission  (G/RO/W/174)  which contain ed three 
questions  that requested  preference -granting Members to provide information on the manner in 
which they were implementing the  Nairobi Decision.   
11. The representative of Bangladesh  congratulated the Chair person  for the re -election as the 
Chair of the Sub -Committee. He thanked the Secretariat for the factual report . Referring to the 
meeting of the CRO on 19 April 2018, he regretted that there had been no response  by Members  
to the three questions raised in the submission of the LDC Group. He highlighted the importance of 
having an update by preference -granting  Members on what steps they were taking to implement 
the Bali and Nairobi D ecisions on  preferential  rules of origin  for the LDCs . 
12. The representative of Central African Republic , on behalf of the LDC Group, t hanked the 
Secretariat for the report . He highlighted the importance of preferential rules of origin and the 
Nairobi Decisio n. In combination with duty-free and quota free (DFQF) market access, preferential 
rules of origin aimed  at improving the export opportunities for LDCs by facilitat ing market access 
of LDC products to developed and developing countries.  This was  part of the necessary WTO 
instruments to help the LDCs better integrate into the global trading system.  
13. He acknowledged the progress made in terms of developing a notification template, 
providing  coherence  and transparency, and in terms of  initiatives taken by developed and 
developing Members . While the dynamic was  positive, much progress still need ed to be made to 
ensure the full implementation of the Nairobi Decision. An increase in the cumulation rate  that 
would be accepted by preference -granting Members was of particular  importance for the LDCs. He WT/COMTD/LDC/M/82  
 
- 3 - 
 
  encouraged developed and developing country partners to  do their utmost  to implement the 
Nairobi Decision as soon as possible.  
14. He concluded by recalling  the recent submission of the  LDC Group in the CRO, which aske d 
preference -granting Members to report on the steps taken to implement the Nairobi Decision and 
the respective outcomes. Likewise, the submission asked Members on steps  taken by those 
preference -granting Members, who  were yet to "annually provide import data to the Secretariat as 
referred to Annex 1 of the PTA Transparency Mechanism".  He hoped that this proposal for 
transparency would help accelerate the implementation of the Nairobi Decision, resulting in better 
market access for the LDCs and their better integration  into the multilateral trading system.  
15. The Secretariat  recalled that regarding the submission of the LDC Group, the Chair of the 
CRO had concluded that discussions would need to be pursued to obtain  more information on the 
steps taken by Membe rs to implement the Decisions , in addition to the data that were require d for 
the purposes of calculating utilization rates. She affirmed that this had been  taken note of in the 
CRO and she hoped that Members would have productive discussion s going forward . 
16. The Chairperson  thank ed the Secretariat for  the report and Members for their statements.  
She was encouraged to hear that continuous progress was being made in the area of preferential 
rules of origin. Members ha d taken steps in line with the provisions o f Ministerial Decisions, 
including the expansion of cumulation possibilities and simplification of product -specific rules. The 
new notification template and calculation of utilization rates ha d improved transparency and 
allowed for more focused discussions  in the CRO. She encourage d Members to continue their 
constructive work in the CRO, as well as their efforts in improving rules of origin conditions to 
further facilitate the utilization of preferences by the LDCs.  She suggest ed that the Sub -Committee 
take note of the report provided by the Secretariat, as well as the statements made.  
17. It was so agreed . 
- Update on LDCs' Goods and Services Trade, including Recent Trends in Tourism: 
Report by the Secretariat  
18. The Chairperson  recall ed that at  the previous  meeting in October 2017, the Sub -Committee 
had considered the Secretariat Note titled "Market Access for Products and Services of Export 
Interest to L east Developed Countries " contained in document WT/COMTD/LDC/W/65/Rev.1. She 
recall ed that i n discussions of the Secretariat Note, Members had welcomed the efforts of the 
Secretariat in providing additional data and analysis on LDCs' services trade. As a follow up, the 
Secretariat  (Economic Research and Statistics Division  (ERSD) , and Tr ade in Se rvices and 
Investment Division ( TSD)) would provide the Sub -Committee with an update on LDC trade, 
including on recent trends and development issues in tourism.  
19. The representative of the Secretariat  (ERSD ) pointed to the positive trade performance  of 
the LDCs in 2017 , whose trade growth outpaced that at the world level . She said that after three 
years of negative growth, LDC merchandise exports had increased  by 13% in 2017 , reaching 
US$164 billion . LDC imports had grown  by 12% to  US$247 billion  in 2017 . The LDCs' merchandise  
trade deficit had increased slightly to US$83 billion , which was however lower than the record 
deficit of US$89 billion  in 2015 . The LDCs' share  in world merchandise exports had increased from  
0.93% in 2016 to 0.95% in 2017 . While  this was still below 1%, the trend was positive.  
20. She went on to say that all sub -groupings of LDC exporters had recorded positive export 
growth in 2017.  Exports had increased by 22% for LDC exporters of non -fuel minerals, by 14% for 
LDC exporters of agriculture, and by 6% for LDC exporters of manufactured goods . After two 
difficult year s, also LDC exporters of oil had record ed positive growth  as well as a trade surplus in 
2017. 
21. She continued by elaborating on the positive developments in LDC services trade. After two 
years of negative growth, LDC trade in commercial services had rebounded in 2017, with exports 
increasing by 6.2% to US$34 billion, and imports increasing by 6.3% t o US$69 billion . The LDCs 
remained net services importers with a deficit on the services account of US$36 billion in 2017. 
According to preliminary estimates, the share of LDCs in world services exports remained at 0.6%. WT/COMTD/LDC/M/82  
 
- 4 - 
 
  Also, the LDCs' share in world serv ices imports remained stable at 1.4%, which was the same 
share as in the case of merchandise imports.  
22. She also mentioned that the growth rates for the LDCs had been close to those from 
developed and other developing economies, also because LDC imports of c ommercial services had 
been less affected  by the lower purchasing power of LDC oil exporters  compared to previous years . 
Also e xport growth at the sector level had been positive in 2017, with LDC exports increas ing by 
8.4% in transport services  (-9.2% in 2016), 8.8% in travel ( -2.1% in 2016),  and 0.3% in  other 
commercial services  (-6.1% in 2016).  
23. She continued by elaborating on developments in travel and tourism. She pointed to the 
strong  growth of international tourist arrivals to LDCs over the last  decade, from 12  million in 2005 
to 29 million tourists in 2016 . Over the period 2005 -2015, the LDCs had recorded a 10% average 
annual growth of international tourist arrivals, compared to only 4% for the rest of the world.  
24. Travel exports  had increased by 8.8%  per year  from US$5 billion in 2005 to U S$18.4 billion 
in 2017. She clarified that in balance of payments (BoP) statistics, travel exports comprised  the 
various expenditu res of foreign travellers in the country they were visiting , including for souvenirs , 
accommodation , restaurant s, museum s, local transportation or excursions . According to WTO 
estimates,  travel exports had account ed for 55% of the LDCs' total commercial services exports in 
2017. Since 2005, LDC travel exports had been growing faster than LDC merchandise exports, 
including agricultural products, manufactures,  and fuel an d mining products. This faster growth 
meant that the value of LDC travel exports would  soon match the value of LDC agricultural 
exports.  
25. She co ntinued by elaborating on where  tourists to the LDCs c ame from. Between 
2005-2016, LDCs in Asia had experienced strong growth of travel exports , increasing their share in 
overall LDC travel exports from about 25% in 2005 to over 40% in 2016.  She highlighte d that this 
growth had been driven by  tourist arrivals from other Asian economies , which had accounted for  
85% of foreign tourists in LDCs in Asia in 2015. Intra-regional tourism was also important  for LDCs 
in Africa, where  63% of tourist  arrivals had originated from other African economies  in 2015 . In 
terms of value, the level of travel exports of 30 LDCs in Africa was only slightly higher than that of 
seven  LDCs in Asia .  
26. She went on to explain that China had been the main source of tourist growth for LDCs in 
Asia. Between 2012 -2015, the average annual growth of tourist arrivals  to LDCs in Asia  had been 
66% for tourists from China, followed by 25%  for tourists from Indonesia , 17% for tourists from 
Thailand  and 14% for tourists from Viet N am. With an averag e growth of 1% of tourist arrivals 
from China , LDCs in Africa had not been benefi tting as much from China as source market . 
27. Summari zing, she said that t ourism to LDCs was predominantly intra -regional, taking the 
form of South -South trade. Relatively few tourists originated from high -income developed 
economies , except for  LDCs that were i slands. She pointed to  the potential for further growth in 
the LDCs' tourism sector by attracting tourists from other regions. She concluded by highlighting 
the need for reliable statistics , which were crucial for planning,  investment and the divers ification 
of the tourism sector . 
28. The representative of the  Secretariat  (TSD) continued by elaborat ing on the role of tourism 
for the development of the LDCs.  He highlighted that the share of the LDCs in world travel exports 
had been  1.4%  in 2016 , higher than the LDCs' shares in world exports of merchandise (0.95%) 
and commercial services (0.6%). It was encouraging that the LDCs had doubled their share in 
world travel exports over  the last ten years.  He noted that some LDCs had taken more advantage 
of these opportunities than others . In 2016, f ive LDCs had tourism exports of  more than US$1 
billion and seven LDC s had more t han one  million visitors annually. He mentioned that tourism had 
fewer traditional  market access  barriers  such as SPS or TBT issues like other export sectors.  
29. Referring to an example of virtual eco tourism  in Madagascar, he illustrated the importance 
of the internet and other  new technologies for the tourism  sector . He noted that t ourism also 
included links to new areas discussed by several Members  such as e-commerce, investment 
facilitation, MSMEs, gender and domestic regulation.  WT/COMTD/LDC/M/82  
 
- 5 - 
 
  30. He went on to elaborate on the travel and tourism value chain . He underscored that tourism 
had strong links to many economic sectors, including sectors with high export potential for the 
LDCs such as agribusiness  and light manufacturing. He highlighted the importance of exploiting  
these linkages. He also said that firms in LDCs  such as tour operators, travel agencies or hotels  
had the possibility to become lead firms in the tourism value chain and  captur e a larger share of 
value added.  In this respect,  it was important to analyse the opportunities for capturing more 
value and then take respec tive steps according to one's capabilities.  
31. He went on to say  that tourism was an opportunity for low -cost test marketing. Foreign 
tourist s that bought goods in shops at hotels or the airport would be able to provide immediate 
feedback and information on whether the product could be successful in international markets.  
32. He also raised Members ' attention regarding a report by the UNWTO, ITC an d EIF , titled 
"Tourism for Sustainable Development in the Least Developed Countries - Leveraging Resources 
for Sustainable Tourism with the Enhanced Integrated Framework ", which analyse d tourism in 
LDCs based on five pillars: tourism policy, economic perfo rmance, employment aspects, poverty 
reduction and sustainability. He pointed to the low share of aid for trade  (AfT) going to the tourism 
sector, which received less than 0.1% of official development assistance (ODA) and less than 0.4% 
of AfT. He acknowled ged that a higher share of EIF Tier 2 projects targeted the tourism sector 
(9%), but this was still small compared to the support provided to agricultur al projects  (62%) . He 
concluded by mentioning that tourism was also an important component of the Africa n Unions' 
Agenda 2063.  
33. The representative of the Central African Republic , on behalf of the LDC  Group , thank ed the 
Secretariat for the update . Referring to the presentation, he noted the importance of increasing 
AfT to tourism. He also acknowledged the nee d for better statistics. Referring to the 2017 LDC 
market access report (WT/COMTD/LDC/W/65/Rev.1), he remarked that prior to 2017 there had 
been a decline in overall LDC exports in goods and services . He noted that the share of LDCs in 
world exports had de clined from  1.04 % in 2014 to 0.9% in 2016.  This decline could be explained 
by the  LDCs' weak export  base and their  continued dependence on oil export s. He stated that the 
LDCs undeniably need ed diversification , as well as  structural transformation, industrialization, and  
better market access in developed and developing countries.  He said that in terms of global 
market share, it was only in services, particularly in tourism, where the trend  was positive , in what 
was otherwise a  global negative picture . 
34. The representative of the European Union  expressed appreciation for the wealth of 
information provided in the Secretariats' update and annual Note on trends in LDC trade and 
market access . While s he welcome d the turn around in 2017 , she agree d with the LDC Coordinator 
that the trade participation of the LDCs remained low and that the challenges had certainly not 
gone away. Noting the comments made regarding AfT, she was pleased  to report that in the EU's  
new A fT strategy, the challenges faced b y the LDCs were underlined even further. She said that 
she would take the  messages and statistics to inform the EU's  work in the area of AfT. 
35. The representative of Bangladesh  thanked the Secretariat for the update . While he 
acknowledged the good news, he highlighted the dependence of the LDCs on fluctuations in prices  
of primary commodities . He stressed that the recent increase in exports had been driven by an 
increase in prices. In this context,  he highlighted the need of looking  at how to achieve  the 
Sustainable Development Goals' ( SDGs) target of doubling the LDCs' share in  global exports  from 
1% in 2010 to 2% in 2020. He suggested to have a dedicated discussion on how to help the LDCs 
increase their share in globa l exports  in line with the targets of the Istanbul Programme of Action 
(IPoA) for the LDCs and the SDGs .  
36. In this context, he referred to the proposal for a Secretariat Note on DFQF market access 
(WT/COMTD/W/218/Rev.1 ) that the LDC Group had submitted  in the CTD, and called on Members 
to agree to have such a study  ("clinical examination") . He also highlighted the importance of 
analyzing  how the benefits that the LDCs had received from WTO Members had  actually helped  
their structural transformation , as well as the sources of the LDCs' wide trade deficit . He concluded 
by ask ing the Secretariat to clarify  the coverage of transport services in BoP statistics and how 
they related to merchandise trade.  WT/COMTD/LDC/M/82  
 
- 6 - 
 
  37. The representative of Vanuatu  pointed to the depende nce of Vanuatu on the tourism sector 
as a source for its gross domestic product ( GDP). He asked whether the Secretariat had  any 
statistics covering  the LDCs  in the Pacific  and whether those could be shared. Referring to the 
presentation, he expressed inter est to know more about the reasons why the LDCs in Africa were 
not benefitting enough from the tourism sector . He concluded by expressing his interest to know 
more about the linkages between the tourism sector and the operationalization of the LDC Services  
Waiver.  
38. The representative of Burkina Faso  thanked the Secretariat for the  presentation, which  
provided some  positive information for the LDCs that might not be visible on the ground. She 
acknowledged the positive impact of the increase in the price s of primary commodities on exports 
and the trade deficit. She stressed the need to focus on the reasons for the LDCs' trade  deficit. 
She believed that at the heart of the problem was the fact that the LDCs exported low value -added 
products , which were processed  abroad , and the n imported more back to the LDCs.  She suggested 
that the next Secretariat Note should look at this so that Members could understand where the 
BoP deficit  came from and discuss how to bring  it down.  Referring to the presentation, she 
express ed her interest to understand why the trade deficit had increased for LDC exporters of 
manufactures in 2017.  
39. The representative of Cambodia  congratulated the Chairperson  on her  re-election  and 
thanked the Secretariat for the update. He associated his deleg ation with the statement made by 
the LDC Coordinator . He took note of the growth in LDC exports of commercial services in 2017 
but pointed to low shares of LDCs in world services trade for exports  (0.6% ) and imports ( 1.4% ). 
He was pleased to see the positi ve trend s in tourism in Africa and Asia, including Cambodia . 
Tourism was one of the most important sector s in Cambodia's economy. In 201 7, the number of 
tourists had increased by 5% to reach  5 million . He recalled that the LDCs comprise d around 12% 
of the world population but account ed for less than 2% of world GDP and about 1% of world  goods 
trade and less than 1% of world services trade . He stressed the  importance of preferential 
treatment, including DFQF market access, preferential rules of origin and th e LDC Services Waiver 
for the LDCs. He urged Member s to continue the implementation  of the decisions taken at the 
Ministerial Conferences in  Hong Kong (2005), Bali (2013), and Nairobi (2015) to improve the 
access of LDCs to  world markets.  
40. The representativ e of Chad congratulated the Chair person  on her  re-election . Referring to 
the discussion on tourism,  he cautioned against treating sectors in isolation and highlighted the 
importance of taking a comprehen sive approach in terms of development strategies. This required  
the strengthen ing of  stakeholder coordination,  production capacities in high -added value sectors 
and competitiv eness on international markets. He was interested in the Secretariat's view and 
possible support for the LDCs regarding such a compreh ensive approach. He also expressed his 
interest to obtain more information  on the categories of tourists visiting the LDCs.  
41. The representative of Mali congratulated the Chair person  on her  re-election. Regarding 
tourism in Mali, s he deplored the presence of terrorist groups and their negative effects on tourism  
and stressed the importance of helping young people  to prevent them joining  such groups.  She 
also highlighted  the importance of helping Mali and other countries  in Africa  to build productive 
capacit y regarding the processing of cotton . Mali was  one of  the cotton four (C 4) countries,  
besides  Chad, Benin  and Burkina Faso , which  were large producers and exporters of raw cotton , 
but at the same time importers of fabrics . As the primary product  and the la bour force  was there, 
she pointed to the potential benefits of North -South collaboration thro ugh technology transfer and 
the establish ment of factories  for processing.  This would also help reduce the BoP deficit,  as those 
countries would import less processed cotton.  The existing customs union and intra-regional 
transport  would  also help contain the costs of such processing activities.  
42. The representative of Japan  congratulated the Chair person  on her  re-election and thanked 
the Secretariat for the useful presentation. Regarding the low share of ODA and AfT going to 
tourism, he pointed out that the selection of projects was essentially depending on the requests  
made by  recipient countr ies, and how th ose countr ies prioriti zed the tourism sector in the ir 
national development strateg ies. Noting the rapid growth of Chinese tourists, he  remarked  that it 
would also be important to know the absolute number of tourists from Asian countries visiting  
LDCs in Asia, including from Japan.  WT/COMTD/LDC/M/82  
 
- 7 - 
 
  43. The representative of Benin  congratulated  the Chairperson on her  re-election and thanked 
the Se cretariat for the presentation. He pointed to the importance of interpreting statistics and 
apply ing them to the LDCs' context. Referring to the IPoA, he highlighted the importance of 
doubling the LDCs' share in global exports to 2% in order to  enabl e half of the LDCs to meet the 
eligibility criteria for graduation and achieve sustainable graduation. Furthermore, according to the 
IPoA, the LDCs need ed economic growth of 7% per annum over ten years . He recalled that trade 
had been  assigned a fundamental role in  enabl ing countries to achieve  the SDGs. He deplored  that 
the lesson learned from the statistics was that the LDCs were far from achieving the goa ls of the 
IPoA and the SDGs . It was therefore for Members to refocus their work at the WTO and let the 
statistics feed into negotiations, particularly on special and differential treatment (S&D). He 
recalled that ten  proposals on S&D had been made in negot iations, mainly  aiming at structural 
transformation. He stressed that structural transformation and industrialization were necessary to 
achieve export growth and diversification , as well as sustained economic growth. He deplored that 
the work on S&D had not made any progress.  
44. He went on to say that work at the WTO need ed to bear in mind these realities to ensure 
that trade work ed for everyone. Referring to  domestic regulations in services as example, he noted 
that the  LDCs were big importers  of services , but their share in global services exports stood at 
only 0.6%. He stressed that this was an alarm bell and that this reality should be taken into 
account in negotiations on  domestic regulation. Referring to the sectoral initiative on cotton , he 
noted that the letter which had launched the initiative in 2003 had remained the most urgent part 
of the negotiations . The cotton -dependent countries continued to register  trade deficits  because 
their main export product was subject to market distorti ons.  
45. Noting the importance of travel and transport  for the growth of LDC exports, he said that it 
would be important to know who actually benefitt ed in terms of  income and who  owned travel and 
transport agencies operating in LDCs. Looking at this would he lp understand the actual effect on 
the economies of LDCs. He also  was interested to learn more about the categor ies of tourists that 
were visiting the LDCs and what added value they br ought, including with respect to technology or 
knowledge transfer. He un derscored that it was the interactions between people that would lead 
the LDCs to development.  
46. In replying to the interventions, t he representative of the  Secretariat  (ERSD)  underlined the 
importance for the LDCs of having reliable statistics on tourism, and services more generally. She 
recalled that the Secretariat had organi zed a first training course for statisticians from LDCs in 
2016 and that more such courses would be needed to build the capacity of LDCs to compile 
statistics on services trade, parti cularly on travel and construction . She also mentioned that the 
Secretariat interpreted the data submitted by Members and made corrections where required.  
47. Regarding the  categories of tourists, she said  that information collected for p revious  LDC 
market access reports indicated  that the predominance of travellers were leisure tourists. She 
underlined th e need to add more detail to  tourism statistics such as the age of  tourists, which 
would allow targeting  origin markets by adapting the tourism offer. She confirmed that travel 
statistics were available for the LDCs in the Pacific, includ ing Vanuatu , and that she could share it.  
48. Regarding the intervention of Bangladesh,  she said that the export performance and the 
trade deficit of the LDCs were indeed depend ent on price fluctuations of oil and other primary 
commodities  due to their  heavy weight in the export basket of LDCs.  She also explained that the 
goods category in the BoP was not further disaggregated  and did not allow identifying  the product 
categories  responsible for the deficit. Therefore, it was necessary to  rely on merchandise statistics . 
49. She went on to clarify that i n BoP statistics, plane tickets and other transport modes were 
included in transport statistics, and not travel statistics. LDC transport exports included tickets sold 
by companies resident in LDCs to non -residents. Air passenger transport constituted a large pa rt of 
LDC transport exports , with Ethiopian Airlines account ing for a large share of LDC air transport 
exports.  She also explained that t rade in  transport services would follow trends in merchandise as 
they reflected to a large extent freight, particularly  maritime freight. For LDCs, air transport w as 
relatively more important because several  LDCs were landlocked.  
50. She went on to say that certain LDCs could  benefit  more from tourism if they were able to 
attract tourists from fast -growing source markets. She  noted that while China was the WT/COMTD/LDC/M/82  
 
- 8 - 
 
  fastes t-growing source market for LDCs in Asia, oth er Asian countries such as Viet N am and 
Thailand were the main  source market for some LDCs in terms of absolute numbers .  
51. She concluded by saying  that an  adverse global econ omic context had hindered the LDCs in 
getting closer to achieving the IPoA targ et of doubling the LDCs' share i n global exports between 
2011 and 2020. She recommended to look forward and build on the current positive trends .  
52. The representative of the Secretariat  (TSD) elaborated on the point  raised  that LDCs in 
Africa had not been benefit ting enough from tourism. He stated  that there were countries in Africa 
which greatly benefitt ed from tourism. Three of the five LDCs that ha d more than US $1 billion i n 
travel exports were in  Africa . He underscored th e importance of coordination  in terms of both 
stakeholders and policies . Tourism was a  complex value chain  that involve d many players, 
including different  ministries  and the private sector . Tourism was also  affected by different 
policies, including on immigration, investment, tariffs,  taxation, transport, telecommunications, 
finance  and other regulatory policies.  He pointed to the benefits of including the private sector in 
policy making to realiz e the best tourism potential.  He noted that in terms of international trade 
policy, the tourism ministry was often the least powerful ministry, which might  help explain the 
low levels of ODA. Referring to the intervention by Japan, he mentioned that Japan was the largest 
provider  of ODA for tourism.  
53. Regarding the linkages between tourism and the LDC Services Waiver, he said that the focus 
of the Waiver was on improving the access of LDC  suppliers  to foreign markets.  In this respect, 
relevant policy issues inc luded the movement of natural persons ( e.g., hotel managers, workers, 
chefs) and related qualification requirements, hotels and restaurants, investment policies and 
policies affecting entertainment industries. He underscored that tourism in LDCs  was primar ily 
about domestic policy issues , as well as capacity building, which was  referred to in the  Waiver.  He 
agreed with the intervention  by the representative of Chad, that tourism should no t be looked at in 
isolation but  in connection with other trade policie s. In this respect, he highlighted the importance 
of the work by the EIF.  
54. Regarding the issue of who benefi tted from tourism, he pointed to the importance of 
analy zing trade in value added in tourism , which could  help LDCs set their priorities. He 
undersc ored the importance  of carefully select ing the aspect s of the tourism value chain according 
to one's capabilities and competitiveness. He also said that the majority of hotels were franch ises, 
owned by local investors which  had a contract with an international brand.  In this context , he 
mentioned, that the leakage in tourism (20%) was lower than in other sectors such as textiles and 
clothing (40 %-60%) . He recalled the importance of collecting reliable tourism statistics to make 
well-informed policy choices.  
55. The Chairperson  noted that a number of issues had been raised and that she would reflect 
on how to give a follow -up to suggestions made . She said that t he Work Programme for the LDCs 
identifie d market access as a systemic iss ue of interest to the LDCs. She trusted that the regular 
discussions in the Sub -Committee ma de an important contribution to enhance  Members'  
understanding of the market access conditions and other factors that shape d LDC trade.   
56. After three consecutive yea rs of ne gative growth, it was encouraging to hear that the LDCs 
experienced strong growth in their exports of goods and services in 2017. However, despite the 
positive trends in 2017, there was a continued need to strengthen efforts to help the LDCs with 
export diversification. She noted the positive performance of the LDCs in the tourism sector, as 
well as the important role that tourism could  play in helping the LDCs diversify their economies 
and a chieve sustainable development. She  suggest ed that the  Sub-Committee take note of the 
update provided by the Secretariat, as well as the statements made . 
57. It was so agreed . WT/COMTD/LDC/M/82  
 
- 9 - 
 
  C. TRADE -RELATED TECHNICAL AS SISTANCE AND CAPACIT Y-BUILDING INITIATIVES  
FOR LEAST DEVELOPED COUNTRIES  
- Update on the Enhanced Integrated Framework (EIF): Report by the EIF Executive 
Secretariat  
58. The Chairperson  recalled that the Work Programme for the LDCs mandated the 
Sub-Committee to monitor capacity -building initiatives taken in favour of the LDCs to promote 
information flows and coordination. She said that the EIF was a n AfT programme exclusively 
designed for the LDCs. She invited the Executive Director of the EIF Execut ive Secretariat to 
provide the Sub -Committee with an update on the activities of the EIF.  
59. The representative of the EIF Executive Secretariat  (Executive Director) said that the EIF 
had gained momentum with new funding, new ways of working and new opportuni ties to support 
the LDCs in using trade as a spring board for sustainable development. He noted that the funding 
of the EIF had been  steadily growing. T he EIF had received a contribution of £16.5 million from the 
Government of the United  Kingdom at MC11, as well as  new contributions from the Governments 
of France and Germany . These contributions brought  the EIF funds to US$117 million, one step 
closer to the aspirational target of US $274 million for Phase Two of the EIF . He thanked the se 
three donors as well as the other 21 donors wh ich had contributed to the EIF Trust Fund. He also 
thanked the LDC Group for their tireless efforts in sensitizing all WTO Members on the value of the 
EIF's work.  
60. He went on to note that the EIF's contribution  to the LDCs had been increasing, also thanks 
to the progress made by donors relating to the  disbursements of their pledges. Over the previous  
year, donors ha d doubled their disbursements to bring the total figure close to US$60 million. 
Almost half of the se commitments (US$30 million ) had already been allocated  to 39 development 
interventions in LDCs. These included a Diagnostic  Trade Integration Stud y (DTIS) in Equatorial 
Guinea and a DTIS Update in Cambodia ; institutional support to Bhutan, Central Afric an Republic, 
Chad, Djibouti, The Gambia, Guinea -Bissau , Haiti, Mauritania, South Sudan, Uganda  and Vanuatu ; 
as well as investments in productive capacity in Bhutan  (e-commerce),  Bangladesh  (textiles, 
pharmaceuticals, agriculture)  Guinea  (infrastructure), Solomon Islands  (agricultural value chains) 
and Vanuatu (single window). He also mentioned that  a proposal for a  tourism project in Liberia 
was in the process of being finali zed, which would bring the number of approved  
productive -capacity -building projects to seven since the start of Phase Two.  
61. He continued by saying that the EIF had supported three e-trade readiness assessments by 
UNCTAD for Liberia, Nepal and Samoa. The studies provide d a snapshot of e -commerce 
opportunities for LDCs and serve d as a blueprint for digital transformation. E -trade readiness 
assessments for Solomon Islands and Vanuatu were ongoing.  He also reported that the new air 
cargo complex in The Gambia, the new market centre in Lesotho and the newly constructed sea 
front in Port Vila in Vanuatu had recently been handed over to the respective governments. The se 
facilities would benefit  small entrepreneurs, farmers and crafts people.  
62. He was pleased to note that the EIF was on track to meet the aggregate target s set by the 
EIF Phase Two log frame.  While this was a good start into Phase Two, he stressed th e need to 
bolster the EIF's third pillar and strengthen efforts to build productive capacity in the LDCs. He 
encouraged the LDCs to  develop further  high-impact and catalytic  capacity -building  projects to 
realize their full trade potential.  He also said that the EIF's Value for Money Action framework  had 
been approved by the EIF Board. The Value for Money approach ensured that every dollar of the  
donor's  taxpayers maximized th e impact of development interventions in the LDCs, thereby 
increasing transparency and accountability.  
63. He acknowledge d that leveraging resources remained challenging and that the EIF had 
already taken several steps  in this respect . He said that the EIF  had joined efforts with the Islamic 
Trade Finance Corporation in 2017 to help realize the EIF commitment of resource mobilization at 
the country level for over 20 LDCs that were members of the Org anization of Islamic Countries.  He 
also mentioned that  new partnership efforts with the Commonwealth Secretariat and the Pacific 
Island Forum Secretariat were under way  and that t he partnership  with the Food and Agriculture 
Organization  was being strengthened to mainstream trade in national agriculture investment plans 
in four pilot African countries.  WT/COMTD/LDC/M/82  
 
- 10 - 
 
  64. He further explained that the new Resource Mobilization Strategy guided the EIF partners on 
how to start new strategic partnerships with potential donors  such as  south -south donors,  regional 
banks and foundations, whi ch could provide  grant funding , innovative financing models and help 
the LDCs  mobilize resources from the private sector.  
65. He went on to say that the EIF had made considerable progress on communication and 
outreach. He gave the example of the new Trade for Development new s platform , which  helped 
the LDCs share the impact of trade development with a wider audience. So far , stories ha d been 
published from Cambodia, T he Gambia, Lesotho, Malawi, Samoa, Senegal, Tanzania, Vanuatu and 
Zambia.  
66. He updated Members on  the ongoing work on the Medium Term Strategic Plan (MTSP) 
2019-2022 titled "Inclusive trade for better lives". The new MTSP would be presented to the EIF 
Board on 12 June 2018  and built on key lessons learnt : (i) ensuring universal institut ional 
sustainab ility in the LDCs; (ii) increasing the catalytic role of the EIF interventions on the ground; 
(iii) improving ways of working with  the LDCs in fragile situations; (iv) targeting the most 
vulnerable communi ties, including women and youth; (v) harnessing the  role of technolo gy for the 
development of MSMEs; and ( vi) the strengthening  of the monitoring and evaluation , and 
results -reporting capacity of the EIF Executive Secretariat.  
67. He also used the opportunity to invit e Members  to the EIF Global Forum on Inclusive T rade 
for LDCs, which would be held  at the WTO on 13 -14 June 2018. The Forum would bring together 
ministers, heads of agencies, senior officials and other experts from across the EIF partnership and 
beyond to consider what further measures c ould be taken to better integrate the LDCs into the 
global trading system.  
68. The representative of Haiti, on behalf of the LDC Coordinator , thank ed the EIF Executive 
Secretariat for the update on the progress made to help build the LDCs' export capacity. He took 
note of the progress made towards the finalization  of the MTSP 2019-2022. He highlighted the 
benefits  of EIF programmes  for better integrat ing the LDCs in world trade. He stressed the need of 
substantial financial contributio ns from donors to ensure the accomplishment of initiative s and 
projects  in the long term , and called upon  Members to fulfil their commitments towards the EIF.  
He also asked which programmes mobilized the most resources from the EIF.  
69. The representative of Vanuatu  thanked the Executive Director for the update and 
commended his leadership. He stated that Vanuatu had benefit ted a lot from EIF initiatives such as 
the sea front rehabilitation , which contributed to Vanuatu's tourism sector.  He also commended 
donors for the ir continued support to EIF Phase Two and encouraged others to participate.  
70. The representative of the European Union  commended  the EIF Executive Secretariat for its 
hard work , the new partnerships and the improvements regarding transparency , visibility and 
accountability.  She stated that the EU was a strong supporter  of the EIF  and was collaborat ing 
with the EIF  to see how the  EIF's network on the ground could help the EU  disburse its aid for 
trade more effective ly. 
71. The re presentative of Norway  thanked the EIF Executive Secretariat for the update . He said 
that the EIF had carried out  some of the best work on trade-related development cooperation  with 
a specific focus on LDCs , and that this was the reason that the EIF was Norway's most prominent 
AfT priority.  
72. The representative of Switzerland  thanked the EIF Executive Secretariat for the update  and 
their substantial work . He was pleased to hear that the financial situation of the EIF had improved. 
He welcomed the Strategic Plan 2019 -2022 as it would  guide  the EIF to be more predictable, 
effective, transparent  and accountable in its work of supporting the LDCs. He also stated that the 
results presented pointed in the right direction. He concluded by reaffirming Switzerland's support 
for the EIF.  
73. The r epresentative of Djibouti  congratulated the Chairperson  on her re -election and thanked 
the EIF Executive Secretariat for the useful update. Djibouti was in the process of developing EIF 
project s to develop  its tourism sector , which  as an important alternat ive to manufacturing  in its WT/COMTD/LDC/M/82  
 
- 11 - 
 
  development  strategy . She concluded by  encouraging  Members  to continue providing support to 
the EIF.  
74. The representative of Mali thanked the EIF for the support provided to her country . She 
highlighted the positive impact of EIF -supported  projects on the productio n of mango, shea and 
gum a rabic.  Exports of mangoes had increased from 4 ,000 tonnes to 48 ,000 tonnes in 2016, while  
exports of gum a rabic had reached  6,000 tonnes in 2016.  She noted  that the Government had 
provided 40% o f the funding  for the se projects . This  increase in agricultural production had 
provided work for  young people and prevented them from other pursuits . She also mentioned that 
37 cooperatives ha d been set up by women across Mali.  
75. The EIF Executive Secretaria t thanked the EIF partnership including the LDCs and donors for 
their encouragement and support . He said that the interventions of the representatives of Mali and 
Vanuatu provided excellent examples in terms of  leveraging, partnership and sustainability . Going 
forward , the EIF would further emphasiz e these issues and seek to scale up its support. Regarding 
leveraging and resource  mobili zation, he noted that in the case of Mali , the Government  had 
provided 40% of the project funding, while in the case of Va nuatu, the Government  had been  able 
to mobilize funding of US$ 15 million from the Government of New Zealand , in addition to the EIF's 
seed contribution of US$3.1 million.  
76. Referring to the intervention of the representative of the EU, he pointed to the publ ic-goods 
function of the  EIF's institutional network on the ground , which partners could use for information 
gathering as well as the planning and implementation of their own interventions. He gave the 
example of the International Trade Centre (ITC), which  used the EIF's  network whenever they 
went to LDCs to implement programmes, including for a recent US$3 million groundnut and 
cashew nut project in The Gambia. He mentioned that the project had mobilized an additional 
US$11 million in resources.  
77. Replying t o the question of Haiti, he said that the agro-processing and agribusiness  sector 
was the top sector in terms of  support. This could be explained by the prioriti zation of the sector in  
DTIS and the fact that agriculture was a predominant sector in most of the LDCs. He explained 
that ag ro-processing had been the first step in the development ladder for many countr ies, before 
moving on to the production of textiles, mid -tech and high -tech products . He concluded by 
pointing to the employmen t opportunities provided by agro -processing initiatives for women and 
youth.  
78. The representative of Mozambique  congratulated the Chairperson on her re -election. She 
thanked the EIF Executive Secretariat for their hard work  and donors for their support . She stated 
that even though Mozambique's case was not  among the most successful one s, she was 
encouraged by the examples provided . She called on the EIF Executive Secretariat and donors to 
continue providing support to  Mozambique . 
79. The Chairperson  thanked the EIF Executive Secretariat for the report and Members for their 
statements. She said that the EIF remained an important capacity -building initiative for the LDCs 
which helped them better integrate into the multilater al trading system. She was encoura ged to 
hear about the increasing number of interventions that benefi tted the LDCs as well as on going 
efforts to help them mobilize resources. She encouraged Members to participate in the EIF Global 
Forum on Inclusive Trade  for LDCs. She suggested that the Sub -Committee take note of the report 
provided by the EIF Executive Secretariat , as well as the statements made.  
80. It was so agreed . 
D. 7TH UNIDO LDC MINI STERIAL CONFERENCE, V IENNA, AUSTRIA, 23 -24 NOVEMBER 
2017  
- Report by the UNIDO Representative to the UN and other International Organizations 
in Geneva  
81. The Chairperson  said that in November 2017, the United Nations Industrial Development 
Organization (UNIDO ) held its 7th UNIDO LDC Ministeria l Conference under the theme "Buildin g 
global partnerships, enhancing growth and inclusiveness in LDCs". She invited the UNIDO WT/COMTD/LDC/M/82  
 
- 12 - 
 
  representative to the UN and other international organizations in Geneva to report on the 
outcomes of the Conference and related activities.  
82. The representative of the  UNIDO  congratulated the Chairperson on her  re-election . Starting 
with the main message of the Conference, h e said that Ministers  had stressed the need for urgent 
action and global partnerships to mobilize resources (ODA, public and private investment)  for 
inclusive and sustainable industrialization in the LDCs. Th is message  underline d the importance 
that the LDCs attached to structural transformation , and the role of manufacturing as well as 
industry -related services  for socio-economic development . 
83. He recalled that UNIDO had a long -standing commitment to industrial development and 
productive capacity building in the LDCs. UNIDO had an important portfolio of technical 
cooperation projects in LDC s, including country programmes for the majority of the L DCs as well 
as, in specific cases, stand -alone programmes and individual projects.  
84. Providing some background, h e said that the Conference had been organized in collaboration  
with the United Nations Office of the High Representative for the LDCs, Landlocked  Developing 
Countries and Small Island Developing States (UN-OHRLSS ) and back to back with UNIDO's 
General Conference , which allow ed UNIDO to internalize the outcomes of the Conference and 
decide on the way forward.  He had been encouraged to see a  number o f Ambassadors from 
Geneva participate  in the Conference, which brought together 41 delegations from LDCs , various 
development partners , as well as several bilateral partners.  
85. He went on to say that the Conference came at a defining moment  as the High -level Political 
Forum ( HLPF) 2017 , in reviewing the SDGs,  had underscored the need for urgent action . He 
recalled that the HLPF 2017 had highlighted the importance of  the manufacturing industry as 
driver of economic development, employment creation and social stability . The HLPF had also 
stressed the need for  improving infrastructure , connectivity  and technology transfer to boost 
industrialization , as well as  for renewed investment in LDCs. The HLP F concluded that while there 
had been steady improvements, they were  in no way satisfactory in light of the SDG s, including  
SDG 9  and inclusive and sustainable industrialization . Against this background, the UNIDO 
Conference had discuss ed innovative models  and mechanisms to mobiliz e resources with a view to 
advancing inclusive and sustainable industrialization in LDCs.  
86. He went on to elaborate on the LDCs' industrial development  based on  indicators used to 
measur e progress towards SDG 9 . Regarding manufactur ing value added per capita  (MVA p.c.) , he 
noted that while the LDCs had experienced negative growth between 1990 -1999 ( -2.7%), the  
trend had improved during 2000 -2016, when  the LDCs had registered an average annual growth 
of 4.1%.  While this was encouraging, it would not be sufficient to catch up with other developing 
economies. In 2016, the LDCs had an average MVA p.c. of US$95, compared to US$1,044 for 
other developing economies.  He also noted th e insufficient  importance of indus try in LDCs in 
relative terms. In 2016, the  share of manufacturing in GDP was 12.7%  for the LDCs , compared to 
20.8% for other developing economies  and 16.2% for the world.  
87. He went on to say that at the regional level, the industrial development performance  of 
LDCs in Asia was encouraging, particularly in the case of  Bangladesh , Cambodia, and Myanmar. 
The LDCs  in Africa  were however lagging behind , which was  a cause for concern. In 2016, 
MVA p.c. had been US$169 for LDCs in Asia compared to only  US$50 for LD Cs in Africa.  Similarly, 
the share of manufacturing in GDP was higher  for LDCs in Asia (17.2%) than for LDCs in Africa 
(8.4%), which was well below the SDG 9  target . 
88. He continued by noting that , despite recent growth, the LDCs ' share in world manufacturing  
exports had only stood at 0.4% in 2015. Also in terms of exports, LDCs in Africa were lagging 
behind. Manufactures accounted for 31% of merchandise exports for LDCs in Africa, compared to 
83% for LDCs in Asia, 62.2% for LDCs overall and 78.4% for the world. He noted that the progress 
made by LDCs in Asia  was encouraging  but took place  largely in low -tech industries . He pointed to  
the need for structural intra -industry transformation from low tech to medium and high tech  in line 
with SDG 9 . 
89. He went on to elaborate on the outcomes of the Conference. Ministers had underlined the 
centrality of inclusive and sustainable industrial development for structural transformation . A WT/COMTD/LDC/M/82  
 
- 13 - 
 
  number of promising models had been discussed. He highlighted that UNIDO's P rogramme for 
Country Partnership (PCP)  was a particular ly promising model for delivering on SDG 9 because it 
leverage d ODA to mobilize public and private investments.  Under this flagship initiative,  UNIDO 
had established staunch partnerships with development financing institutions, including  the World 
Bank, African Development Bank , Asian Development Bank  and European Investment Bank.  
90. He went on to say that another UNIDO priority related to the UN General Ass embly 
resolution on the third Industrial Development Decade for Africa (IDDA III) , which encourag ed the 
international community to provide support to Africa n countries  in their industrialization efforts . He 
mentioned that UNIDO , the African Union and the E conomic Commission for Africa  had put their 
full weight behind this initiative , and that UNIDO ha d good partnerships with Geneva -based 
agencies such as the WTO, EIF, ITC and UNCTAD . He concluded by mentioning  that UNIDO was 
also supporting  efforts led by UNCTAD and UNOHRLSS  regarding a capacity development 
programme for investment promotion agencies in LDCs .  
91. The representative of Chad thanked the UNIDO representative for the presentation. He 
highlighted that industrialization, structural tr ansformation and diversification w ere priorit ies for 
the LDCs. In this respect, he stressed that the industrialization efforts  of the LDCs were hindered 
by lack of access to energy , despite having so many resources . He was interested in UNIDO's point 
of view regarding how the LDCs could improve their energy access.  
92. He also highlight ed the potential of small - and medium -scale industrialization in the LDCs  
since products such as mangoes, guavas, gum Arabic and cotton  did not need large-scale 
industrialization . He said that farmers and producers were benefitting only little from the exports 
of these products in raw form and that already small -scale industrialization would result in higher  
profits. He indicated that  UNIDO could assist the LDCs in setting up small - and medium -scale 
industrial operations to boost employment and export s. He concluded by underlining the need to 
better  understand  how countries could get to the industrialization levels that they wanted.  
93. The representative of Vanuatu  thanked the UNIDO representative for the briefing  and 
seconded the  statement  by the representative of Chad. He noted that UNIDO had been out of the 
Pacific region for about 20 years but had  return ed recently . He said that  Vanuatu had signed  a 
country program me with UNIDO to support Vanuatu's economic transformation . He expressed his 
appreciation for the programme and encouraged UNIDO to  expand its activities  in the Pacific 
region.  
94. The Chairperson  thanked  the UNIDO representative for the presentation  and Membe rs for 
their statements . She suggested that the Sub -Committee take note of the report provided by the 
UNIDO representative , as well as the statements made.  
95. It was so agreed . 
E. OTHER BUSINESS  
96. The representative of the European Union  informed Members about the  ongoing review of its 
GSP regulation , which was to be renewed by 2023. The review covered  all GSP schemes, including 
the Everything -But-Arms (EBA)  programme, which provided the LDCs with duty -free mar ket 
access on all goods except arms  and ammunition. She  mentioned that a European Commission 
report on the existing regulation was in the process of being issued and proposed to present the 
findings that related  specifically to the EBA programme  at the next meeting . She invite d 
beneficiaries  to start a dialogu e with the EU  on how  to further improve the programme.  She 
indicated that her delegation considered discussions in the Sub -Committee, such as on challenges 
of LDCs relating to  upgrading in value chains and export diversification, as helpful inputs for the 
EU's impact assessment of its GSP scheme .  
97. The Chairperson  thanked the representative of the EU for her intervention. She suggested 
that the Sub -Committee  take note of the statement made , and proposed to includ e the 
presentation of the European Commission report  on the agenda of the next meeting.  
98. It was so agreed . WT/COMTD/LDC/M/82  
 
- 14 - 
 
  99. The representative of Haiti, on behalf of the LDC Coordinator, provided an overview of the 
LDC Ministerial Declaration, which had been  adopted at the LDC Trade Ministers' Meeting prior to 
MC11  on 9 December 2017.  The D eclaration stat ed a number of priority areas  for the LDC Group  
in the work of WTO, which  continue d to be valid  after MC11 . The LDC Group ha d already begun to 
engage in relevant WTO Committees to fulfil the mandate given by LDC Ministe rs in Buenos Aires 
to construct the building blocks in preparation for MC12.  
100.  He said that the p rioriti es for the LDCs  included fisheries subsidies,  which was the only 
priority issue for the LDCs where there had been an outcome at MC11.  Another priority issue was 
domestic support in agriculture , including cotton. He underscored that domestic support continued 
distorting prices of agricultural products, thereby excluding LDC producers from international 
market s and causing unfair competiti on in local and regional markets.  Regarding  public 
stockholding for food security  purposes , LDC Ministers had noted that the scope of the interim 
mechanism established in Bali cover ed only existing program mes. However, the  LDCs require d 
that a permanent so lution would include  future programmes and t ake into account the needs of 
the LDCs that did not yet have public stockholding program mes.  
101.  He said that f urther priority issues identified by Ministers  included S&D for LDCs , non -tariff 
barriers  such as  SPS and TBT measures , LDC accessions,  issues in the negotiations on domestic 
regulation , as well as technology transfer under Article 66.2 of the TRIPS Agreement . In this 
respect, the LDC Group had already submitted a proposal to the TRIPS Council concerning an 
alternative  method to pursue the implementation of Article 66.2.  
102.  He went on to say that f or the first time, LDC Ministers  had called for positive actions for 
LDCs on graduation, including in the areas of fisheries subsidies and export subsidies.  This was a 
topical issue for a number of LDCs, and more generally for all LDCs. He informed Members that, 
based on the Declaration of LDC Ministers, the LDC Group intended to submit a concept note on 
the issue of LDC graduation for consideration in the Sub -Committ ee.  
103.  Continuing the intervention, the representative of Bangladesh  said that LDC Ministers had 
called upon Members to implement the D ecisions taken in favour of LDCs . He believed that 
Members w ould take the extra steps required to implement th e Decisions  on DFQF market access , 
preferential rules of origin and the LDC Services  Waiver . This would support the  LDCs to achieve 
the IPoA objective of enabling half of the LDCs to meet the criteria of graduation  by 2020 . He said 
that potentially up to 16 LDCs could  graduate from the LDC category by 2024. He was encouraged 
by the fact that several LDCs had included  graduation as a goal in their national development 
strategies.  
104.  He reiterated that  LDC Ministers had called for  positive action to be taken in favour of 
graduated LDCs.  He stressed the need to support the  momentum after graduation  and to address 
challenges that graduat ing LDCs may face due to the  loss of preferential market access and 
additional obligations under various WTO agreements. He noted that the LDC Group had proposed 
provision s for graduated LDCs in possible disciplines on fisheries subsidies  and submitted a 
proposal which addressed legitimate concern of graduat ing LDCs regarding Annex VII of the 
Agreement on Subsidies and Count ervailing Measures (SCM) (WT/GC/W/742 – G/C/752) . He 
thanked the proponents in the area of  domestic regulation for coming up with a proposal for 
graduated LDCs. He hoped that the LDCs' proposal in fisheries subsidies and on Annex VII of the 
SCM Agreement  would be considered in that spirit.  
105.  He went on to say that the LDC Group  was in the process of preparing a concept note on 
trade -related challenges of graduated LDCs for consideration in the Sub -Committee in line with 
LDC Ministers ' Declaration. In this re spect, he noted that  the 2004 UN  General Assembly 
Resolution  A/RES/59/209  (Smooth transition strategy for the countries graduating from the list of 
LDCs) called for a positive action  in trade -related areas for graduated LDCs.  
106.  The representative of the United States  requested delegations to submit in writing proposals 
for items to be included on the agenda for meetings.  
107.  The Chairperson  took note of the point made by the delegate of the United States. She 
thanked the representatives of Haiti and Bangladesh for their interventions. She suggested t hat WT/COMTD/LDC/M/82  
 
- 15 - 
 
  the Sub -Committee  take note of the statements made and the intention of the LDC Group to 
submit a concept note on the issue of LDC graduation.   
108.  It was so agreed . 
109.  The Chairperson  concluded the meeting by saying that the date and agenda  of the next 
meeting of the Sub -Committee  would be circulated in due course.  
110.  The meeting was adjourned . 
__________