WT/GC/W/742  
G/C/W/752  
 
19 April 2018  
(18-2472) Page: 1/2 
General Council  
Council for Trade in Goods  Original: English/French  
 
 
COMMUNICATION FROM T HE MISSION OF THE CENTRAL AFRIC AN REPUBLIC  
ON BEHALF OF THE LDC  GROUP WITH REGARD TO MEASURES TO ALLOW  
GRADUATED LDC s, WITH GNP BELOW US$100 0, BENEFITS PURSUANT  
TO ANNEX VII(B) OF T HE AGREEMENT ON SUBS IDIES  
AND COUNTERVAILING M EASURES  
The following communication, dated 1 7 April 2018, is being circulated at the request of the 
delegation of the Central African Republic on behalf of the LDC Group.  
 
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1.1.  The Pr ogramme of Action for the Least -developed countries for the Decade 2011-2020 
adopted at Istanbul in 2011  set a target for half of least -developed countries to meet the 
graduation criteria by 2020. A handful of LDCs have been able to graduate from LDC category 
since 2011. While a large number of LDCs have not met this goal , a number of them are on the 
path of graduation. It is foreseen that in the coming years, more LDCs are going to meet the 
thresholds and will eventually graduate from LDC category.  
1.2.  Thresholds that LDCs need to reach to graduate from LDC category encompass  thresholds 
related to GNI per capita, Economic Vulnerability Index and Human Asset Index. Meeting these 
criteria does not necessarily mean that graduated LDCs will not face trade and development 
challenges. On the contrary, a graduated LDC faces enormous challenges to cope in a new trade 
and economic environment.  
1.3.  Efforts should be made to help a graduated LDC smoothly integrate into global economy. One 
of the avenues in which a graduated LDC can be assisted relates to the WTO Agreement on 
Subsidies and Cou ntervailing Measures (SCM). Annex VII to this Agreement allows LDCs and the 
developing countries with GNP per Capita below US $1,000 (in 1990 Constant dollar) to benefit 
from the provision of Article 27.2 of the Agreement, i.e. exemption from the provision of export 
subsidie s. Moreover, the decision in paragraph 10.1 of the Doha Ministerial Decision on 
Implementation -Related Issues and Concerns (document WT/MIN(01)/17) set the procedures on 
how the list of developing countries  with GNP per Capita below US $1,000 will be updated. Annex 
VII as well as the Decision does not mention how an LDC member will be treated when it 
graduates from LDC category. It might very well be the case that when an LDC graduates from 
LDC category, its GN P per capita remained below U S$1,000 in constant 1990 dollars.  
1.4.  Against this background, the LDC Group is hereby submitting a proposal of a draft decision 
(as annexed) for consideration of Members so that an LDC member can still benefit from the 
provision of Article 27.2, if its GNP p er Capita remained below US $1,000 in constant 1990 dollars, 
meeting the current criteria for certain non -LDCs. Certainly, all LDCs are covered under Annex VII 
now.  Graduating from LDC status should not cause a graduated LDC meeting the criteria for the 
non-LDCs under Annex VII to be penalized.  
1.5.  Agreement on this decision would be an important contribution to remedy the difficul t 
circumstances that graduating LDCs encounter and is appropriate for the integration of LDCs in the 
multilateral trading system as well as an important incentive to support the goals of the Istanbul 
Programme.  
_______________  WT/GC/W/742 • G/C/W/752  
 
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  ANNEX  
DRAFT DECISION  
The General Council,  
 
 Having regard to  Articles  IV.1and IX of the Marrakesh Agreement Establishing the World 
Trade Organization (WTO);  
 
 Mindful of the importance attached to the i ncreased participation of least -developed 
countries in the multilateral trading system, and of the need to ensure that the system responds 
fully to their needs, including constraints after their graduation from LDC status;  
 
 Further mindful of the need for positive efforts in that regard for developing coun tries, and 
especially the least -developed among them;  
 
 Recognizing the need for adjustment in the conditions elaborated in Annex VII of the 
Agreement on Subsidie s and Countervailing Measures for addressing concerns of graduated LDCs;  
 
 Having regard to the decision in paragraph 10.1 of the Doha Ministerial Decision on 
Implementation -Related Issues and Concerns (document WT/MIN(01)/17) ; 
 
Decides  as follows:  
 
Upon graduation from category of least -developed country status, graduated least -developed 
country members shall be deemed listed among developing countri es identified pursuant to 
Annex  VII(b) to the Agreement on Subsidies and Countervailing Measures, if their GNP per capita 
is below US $1,000 in constant 1990 dollars at the time of graduation and they will remain in the 
list until their GNP per capita reaches US $1,000 in constant 1990 dollar s for three consecutive 
years. If any such graduated least -developed country Member is excluded from the list of 
Annex  VII(b) to the Agreement on Subsidies and Countervailing Measures because  its GNP per 
capita reached US $1000 for three consecut ive years, that graduated least -developed country shall 
be re-included when its GNP per capita falls below US $1,000  in constant 1990 dollars.  
 
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