G/RO/W/168  
 
2 March 2017 
(17-1270) Page: 1/5 
Committee on Rules of Origin    
 
UTILIZATION RATES UN DER PREFERENTIAL TRA DE ARRANGEMENTS FOR LEAST 
DEVELOPED COUNTRIES  UNDER THE LDC DUTY S CHEME  
NOTE BY THE SECRETAR IAT1 
1. Paragraph 4.3 of the 2015 (Nairobi) Ministerial Decision on preferential rules of origin for 
least developed countri es (LDCs) stipulates that the Secretariat may calculate the rates of 
utilization of Preferential Trade Arrangements (PTA) implemented by WTO Members for LDCs.  
Preferential utilization rates could indeed provide a useful tool for the examination of prefere ntial 
rules of origin in light of the objectives and provisions of the Ministerial Decision.  
2. In this connection, Members have adopted, at the end of 2016, modalities for the calculation 
of utilization rates as recommended in paragraph 3.2(a) of documen t G/RO/W/161.  This modality 
compares the value of imports which "reportedly" benefitted from preferences with the value of 
total imports which would have been "eligible" for such preferences. Only MFN dutiable lines are 
considered under this modality.   In other words, the calculation only takes into account those tariff 
lines on which there is an actual LDC duty scheme preference.  
3. This note provide s a preliminary report on preference utilization granted to products 
exported from LDCs in the year 2015 (o r latest year available) on the basis of the data currently 
available with the Secretariat. In fact, the calculation of utilization rates for a given PTA is only 
possible if the following information is available2: 
(i) The list of tariff lines for which a tariff preference is available  under a Member's LDC 
duty scheme ; and  
(ii) The value of imports for each of these tariff lines under both:  
a. The LDC duty scheme  (i.e. reported as having actually received preferences) , and 
b. Other treatment (MFN dutiable or oth er preferen ces that may be available ). 
4. The Secretariat has been notified of data as follows:  
 
(i) Data is complete and currently available for the schemes of nine WTO preference -
granting Members:  Australia;  Canada; Chile; EU; India; Korea; Norway; Chi nese 
Taipei; and the United  States.  
(ii) Data is currently not available for the schemes implemented by China; Iceland; 
Japan; Kazakhstan; Kyrgyz  Republic; Morocco; New Zealand; Russian Federation; 
Switzerland; Tajikistan; and Turkey.  
(iii) A recent data s ubmission by Thailand is currently under review.  
5. On that basis, the Secretariat has prepared the following two tables:  
(i) Table 1  presents information for each preference -granting Member, detailed by 22 
product categories as used in the WTO World Tarif f Profiles.   It should be noted that 
                                                
1 This document has been prepared under the Secretariat's own responsibility and  is without prejudice 
to the positions of Members or to their rights and obligations under the WTO . 
2 Document G/RO/W/163/Rev.1 contains a summary of notification requirements under the PTA 
Transparency Mechanism (WT/L/806) as well as a detailed status of notifications received and information 
available wit h the Secretariat for each PTA.  G/RO/W/168  
 
- 2 - 
 
  the exact list of LDC beneficiaries under each duty scheme may vary as they are 
defined by each preference granting Member.  
(ii) Table 2  presents preference utilization of each preference granting Member's LDC duty 
scheme for products from LDC beneficiary countries which are WTO Members.  
6. The percentage shares  shown range  from 0% to 100% (full  utilization). They refer 
exclusively to preference -granting Members' WTO LDC duty scheme . For developed Members these 
are defined by the "Enabling Clause" - paragraph 2 of the Decision of 28 November 1979 on 
Differential and More Favourable Treatment Reciprocity and Fuller Participation of Developing 
Members .  For developing Members these are notified under the 1999 waiver grantin g developing 
country Members a waiver to the extent necessary to provide preferential tariff treatment to 
products of least developed countries, which was renewed in 2009 for another 10 years3. 
7. It should be noted , as a consequence,  that o ther preferenti al duty schemes which may be 
available to the LDCs are not taken into account  in this analysis . These are , for example , 
Australia's preferential duty scheme for countries of the "Forum Islands"  or the US "African Growth 
and Opportunity Act (AGOA)" , among o thers. In the presence of such competing preferential 
schemes for LDCs traders are likely to select the preferential duty scheme that makes their 
transaction easier. Hence, the utilization rates of some members' LDC duty schemes are likely be 
lower than th ey would have been in the absence of other, possibly more favourable,  schemes . 
                                                
3 See WT/L/759 of 29 May 2009.   
  G/RO/W/168  
 
- 3 - Table 1:  LDC scheme p reference utilization (in %) by product groups , 2015  
Product category  Australia  Canada  Chile  European 
Union  India  Korea, 
Republic of  Norway  Chinese 
Taipei United 
States of 
America  
Animal products     20.4 0 98.2 100   
Dairy products   0  0     0 
Fruits, vegetables, plants  35.6 58.5 0 92.6 0.7 43.9 99.3 89.2 1.7 
Coffee, tea  23.0 40.6 0 54.5 0 82.6 100 0  
Cereals and preparations  66.6 80.1 0 97.8 0.5 27.0 99.6 0 27.1 
Oilseeds, fats and oils  89.5 31.9 0 96.2 65.3 2.0 100  0 
Sugars and confectionery  55.1 23.4  67.0 0 0   75.0 
Beverages and tobacco  55.0 23.2 0 99.0 0 71.3   0 
Cotton           
Other agricultural products   40.7 0 14.8 74.9 5.6 100   
Fish and fish products  0 97.9 57.0 89.7 0.1 98.3 0 100 50.2 
Minerals and metals  24.8 21.4 99.2 98.1 17.7 93.1  34.9 0.6 
Petroleum    100 89.9 0    0 
Chemicals  54.6 65.7 0 16.6 0 20.4  1.1 30.4 
Wood, paper, etc.  25.8 84.0 0 70.9 0 34.1   54.4 
Textiles  81.0 86.3 1.2 90.8 0 67.8 98.3 8.0  
Clothing  90.0 88.4 2.9 95.4 0 25.1 97.2 0.4  
Leather, footwear, etc.  22.2 85.9 3.5 95.9 1.2 83.3  48.8 2.4 
Non-electrical machinery  0.2 0.1 0 0.9 0 0  0 0 
Electrical machinery  3.8 0.1 0 14.3 5.0 24.3  0 15.2 
Transport eq uipment  0 82.4 0 65.6 0 0  0 66.5 
Manufactures n.e.s.  6.9 21.3 0 58.7 0 17.0  0.2 8.9 
Notes:  
- The calculations are based on notifications through the PTA Transparency Mechanism and refer to the year 2015 (or latest available year, i.e. 2014 for the Repu blic of 
Korea and 2016 for Australia).  
- Empty fields are shown when no imports have been reported;  the number zero refers to instances where no preference utilization has been reported.  
- Numbers in italic s refer to shares based on calculations with annua l import values smaller than US$25,000.  The corresponding  utilization rates should be interpreted with 
caution.  
- Data is not available for the following Preference Granting WTO Members:  China; Iceland; Japan; Kazakhstan; Kyrgyz Republic;  Morocco; New Ze aland; 
Russian  Federation; Switzerland; Tajikistan; Thailand; and Turkey.   
  G/RO/W/168  
 
- 4 - Table 2:  LDC scheme p reference utilization (in %) by LDC WTO Members, 2015  
Exporting country  Australia  Canada  Chile  European 
Union  India  Korea, 
Republic of  Norway  Chinese 
Taipei  United 
States of 
America  
Afghanistan  27.0 2.9 0 59.0 0 0 100.0   26.3 
Angola  0 0 98.6 45.2 0 0 100.0   0 
Bangladesh  93.1 89.0 3.3 97.5 0 87.8 97.7 55.5  
Benin  0 2.3  58.0 4.6 30.4    
Burkina Faso  0 53.6 0 84.7 0 0    
Burundi  0 0 0 89.0 0 28.8 100.0   
Cambodia  61.3 88.7 2.3 93.1 1.9 16.4 95.3 13.1 61.1 
Central African Republic  0 0 0 1.5 0 0    
Chad 0 0 0 0 0 0   0 
Democratic Republic of the 
Congo  47.0 0  39.6 0 97.2    
Djibouti  0 0  0 0 0 100.0   0 
Guinea  0 0.2  47.2 0 0   0 
Guinea -Bissau   0  0 0 0    
Haiti 9.2 25.8 0 89.0 0 0 74.7 100.0  0.8 
Lao People's Democratic Republic  19.3 67.4 0 97.0 0 23.9 98.2 0  
Lesotho  68.1 77.2  70.8 0 0    
Liberia, Republic of  0 0 0 0 0 0 100.0   0 
Madagascar  13.9 78.9 0 0.8 77.6 97.2 98.9 0 0 
Malawi   31.9 0 92.1 0 98.4   0 
Mali 0 0 0 74.5 0.4 0 72.1  27.6 
Mauritania  0 0 0 95.7 0 99.9 0   
Mozambique  0 0 0 96.9 0.3 56.7   0 
Myanmar  48.8  0.6 94.9 0.7 5.9 87.2 0.2  
Nepal  63.1 55.7 2.3 92.4 0 14.1 99.7 37.7 31.0 
Niger  0 14.7  81.0 0 0    
Rwanda  0 57.0 0 68.7 58.5 69.7 17.8  0 
Senegal  0 12.0 0 97.3 0.6 32.8 98.3 98.4 0 
Sierra Leone  0 0 0 83.3 0 0   0 
Solomon Islands  14.2 0  98.0 0 0   71.1 
Tanzania  0 16.2 0 84.5 6.0 85.6 98.3 0 0 
The Gambia   0 0 98.2 0 0    
Togo 0 79.6  91.1 0 0   0.3  
  G/RO/W/168  
 
- 5 - Exporting country  Australia  Canada  Chile  European 
Union  India  Korea, 
Republic of  Norway  Chinese 
Taipei  United 
States of 
America  
Uganda  0 6.8 0 97.6 15.6 93.9 99.9  5.1 
Vanuatu  0 35.4 0 9.2 0 0    
Yemen   0  41.0 0 99.9   51.0 
Zambia  0 33.1 0 68.8 93.1 89.8 95.6  0 
Notes:  
- The calculations are based on notifications through the PTA Transparency Mechanism and refer to the year 2015 (or latest a vailable year, i.e. 2014 for the Republic of 
Korea and 2016 for Australia).  
- Empty fields are shown when no imports have been reported; the number zero refers to instances where no preference utilizatio n has been reported.  
- Numbers in italic s refer to sh ares based on calculations with annual import values smaller than US$25,000.  Th e corresponding  utilization rates should be interpreted with 
caution.  
- Data is not available for the following Preference Granting WTO Members:  China; Iceland; Japan; Kazakhs tan; Kyrgyz Republic; Morocco; New Zealand; 
Russian  Federation; Switzerland; Tajikistan; Thailand; and Turkey.  
 
 
__________