WT/COMTD/W/206  
 
26 November 2014  
(14-6880)  Page: 1/4  
Committee on Trade and Development    
 
 DUTY-FREE AND QUOTA-FREE (DFQF) MARKET ACCESS  
FOR LEAST-DEVELOPED COUNTRIES 
REPORT BY THE SECRETARIAT1 
1  INTRODUCTION 
1.1.  The Sixth Ministerial Conference (MC6) held in Hong Kong, China in December 2005 adopted 
a decision on Duty-Free and Quota-Free (DFQF) market access for least-developed countries 
(LDCs) (Annex F, WT/MIN(05)/DEC). Among others, the decision stipulated that the Committee on 
Trade and Development (CTD) shall annually revi ew the steps taken to provide DFQF market 
access to the LDCs, and report to the General Council for appropriate action. 
1.2.  In the context of further implementation of  the decision taken at MC6, the Ninth Ministerial 
Conference (MC9) held in Bali in December 2013 adopted a decision (WT/L/919) on DFQF market 
access for LDCs (hereafter, the Bali DFQF Decision),  which reiterates that the CTD shall continue to 
annually review the steps taken to provide DFQF market access to the LDCs, and report to the 
General Council for appropriate action. To aid in the CTD's annual review, the Bali DFQF Decision 
also mandates the WTO Secretariat to prepare, in close coordination with Members, a report on Members' DFQF market access for LDCs, at the tari ff line level, based on their notifications.  
2  METHODOLOGY  
2.1.  This report is prepared based on Member s' notifications to the WTO, pursuant to the 
Transparency Mechanism for Preferential Trad e Arrangements (hereafter, PTA Transparency 
Mechanism). For the purposes of this Report, duty -free coverage of tariff lines is derived on the 
basis of data furnished by Members to the WT O's Integrated Database (IDB). The duty-free 
coverage denotes the percentage of tariff lines th at are duty free for LDCs in relation to each 
preference-granting country's total national tariff lines. The duty-free lines for LDCs also include 
MFN duty-free tariff lines. 
3  BACKGROUND ON NOTIFICATION PROCEDURES 3.1.  It may be noted that non-reciprocal DFQF or preferential market access schemes of Members 
in favour of LDCs are dealt with by different legal instruments in the WTO. Developed Members 
implement DFQF market access to LDC products, mainly through their autonomous GSP programmes – which secures legal cover through the Enabling Clause adopted in 1979 (The Decision on "Differential and More Favourable Treatment, Reciprocity and Fuller Participation of 
Developing Countries"). The Enabling Clause notifications are vested in the CTD. 
3.2.  Developing countries' DFQF/preferential schemes for LDCs are authorized through a Waiver 
Decision initially adopted by Members in 1999 (WT/L/304), and extended until 30 June 2019 
(WT/L/759). The initial notification body for deve loping countries' preferential schemes is the 
Council for Trade in Goods (CTG).
2  
                                               
1 This report has been prepared by the Secretariat on  its own responsibility and is without prejudice to 
the positions of Members and to their rights and obligations under the WTO. 
2 It is to be noted that the substantive consideration of both developed as well as developing countries' 
DFQF or preferential schemes are undertaken at the Sub-Committee on LDCs. WT/COMTD/W/206 
 
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  3.3.  In addition to the above, as per the proc edure set out in the PTA Transparency Mechanism, a 
dedicated session of the CTD is envisaged to take up  each PTA notified in the CTD, with a view to 
enhancing its transparency. 
4  DFQF COVERAGE FOR LDCS, AT THE TARIFF LINE LEVEL 
4.1  Developed country Members 
4.1.  All developed country Members of the WTO offer DFQF market access to the LDCs, and have 
notified specific GSP schemes for them. Most of these developed Members had notified their DFQF 
schemes prior to the adoption of the PTA Transp arency Mechanism. Also, in most cases, they 
submit data to WTO's IDB.  
4.2.  The number of dutiable lines in developed co untry markets for LDC products is rather limited, 
since most developed Members provide full or sign ificant DFQF coverage to the LDCs. While there 
are relatively few dutiable lines for Canada, the EU and Japan, the number is somewhat higher for 
the United States which grants DFQF access to 82.6% of its tariff lines. The Russian Federation's GSP sub-scheme for LDCs allows duty-free access to 38.1% of its tariff lines. A summary of 
developed country Members' DFQF coverage is provided below in Table 1. 
Table 1: DFQF access in GSP schemes of de veloped Members, 2014 or latest available 
year 
Country Duty-free coverage (major 
exclusions) Number of dutiable lines  
(national tariff lines)a References on 
notifications 
Australia 100% 0  WT/COMTD/N/18 
Canada 98.6% (dairy, eggs and poultry)  105 WT/COMTD/N/15/Add.1,  
WT/COMTD/N/15/Add.2 and 
WT/COMTD/N/15/Add.3 
European Union 99.0% (arms and ammunitions)  91 WT/COMTD/N/4/Add.2, 
WT/COMTD/N/4/Add.4, 
WT/COMTD/N/4/Add.5 and WT/COMTD/N/4/Add.6 
Iceland 91.8% (Meat and dairy products, 
eggs, vegetables and plants, cereals 
and starch, other food preparations)  707 WT/COMTD/N/17 
Japan  97.9% (rice, sugar, fishery products, articles of leather) 197
 WT/COMTD/N/2/Add.14 and 
WT/COMTD/N/2/Add.15 
New Zealand 100% 0 WT/COMTD/27 
Norway 100% 0  WT/COMTD/N/6/Add.4 and 
WT/COMTD/N/6/Add.5 
Switzerlandb 100% 0 WT/COMTD/N/7/Add.2, 
WT/COMTD/N/7/Add.3, 
WT/COMTD/N/7/Add.4 and 
WT/COMTD/N/7/Add.5 
Russian 
Federation (2012) 38.1% (exclusions cover a wide 
range of tariff lines including petroleum products, copper, iron ores, articles of leather, articles of 
apparel and clothing, etc.) 6885
 WT/COMTD/N/42 
United Statesc 82.6% (dairy products, sugar, 
cocoa, articles of leather, cotton, 
articles of apparel and clothing, 
other textiles and textile articles, 
footwear, watches, etc.) 1864 WT/COMTD/N/1/Add.7 and 
WT/COMTD/N/1/Add.8 
a These tariff lines may vary from year to year due to change in national tariff nomenclature. 
b Switzerland and Liechtenst ein form a Customs Union. 
c The GSP scheme of the United States expired on 31 July 2013. The US Congress is considering 
legislation that would extend the authorization of GSP beyond this date. 
Source: WTO Integrated Database 
 
4.3.  It may be noted that a few Members maintain multiple non-reciprocal market access schemes benefitting LDCs. For example, the US Africa n Growth and Opportunity Act (AGOA) offers 
non-reciprocal market access to eligible countries in Sub-Saharan Africa, which includes a large 
number of LDCs. In 2013, the US provided duty-fr ee coverage to 97.5% of its tariff lines to the 
eligible LDCs under AGOA. In addition, Haiti bene fits from preferential market access in the US 
through the Caribbean Basin Trade Partnership Act (CBTPA). WT/COMTD/W/206 
 
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  4.4.  The review of developed Members' tariff schedules schemes indicate a relatively small 
number of tariff lines subject to Tariff-rate Quotas (TRQs) for imports from LDCs. TRQs indicated in the Canadian tariff schedule spread over some 94 tariff lines (e.g. dairy, egg, poultry and meat products). There are some 132 tariff lines (e.g. meat, dairy products sugar, cocoa, tobacco, etc.) 
subject to TRQs indicated in the US tariff schedule. It may be noted that while developing country 
beneficiaries may face automatic limits on the quantity or value of any one product imported under US GSP scheme, the LDCs are not subject to this restriction.  
4.2  Developing country Members 
4.5.  Five developing country Members (namely: Ch ile, China, India, Korea and Chinese Taipei), so 
far, have notified their DFQF schemes put in pl ace in favour of LDCs. Developing countries are 
permitted to phase-in their DFQF commitments for LDCs. They have also been accorded flexibility 
in the coverage of such commitments. Hence, th e scope and coverage of preferences granted by 
these developing countries vary from one scheme to another. Some of these Members are yet to provide the full listing of preferential duties applicable for the LDCs. 
4.6.  Most of these developing country Members grant a significant degree of DFQF access to the 
LDCs. Chile provides comprehensive DFQF coverage to the LDCs, and grants DFQF access on 99.5% of its tariff lines. China, India and Korea also provide significant coverage. As per latest 
data available to the Secretariat China's DFQF coverage for LDCs was 61.5%, though it has 
reported in WTO formal meetings that DFQF coverage for LDCs has been extended to 95% of its tariff lines in 2013. Similarly, India has confirmed in WTO formal meetings that it has now (since October 2012) fully phased-in 85% DFQF commitments that it had notified. In addition, recent 
data provided to the WTO IDB indicates that Indi a's present DFQF coverage for LDCs stands at 
94.1% of its tariff lines. Korea offers DF QF access to 90.4% of its tariff lines. 
4.7.  While Turkey is yet to make a notificati on pursuant to the PTA Transparency Mechanism, 
preferential tariff data was available in the IDB for the year 2011. As a result, it has been possible 
to approximately calculate the duty-free coverage  of Turkey for LDCs, which stood at 79.7% in 
2011. As has been reported in previous Secretariat notes, Turkey has eliminated duties on imports 
f r o m  L D C s  i n  l i n e  w i t h  E U ' s  " E v e r y t h i n g  b u t  A r m s "  ( E B A )  i n i t i a t i v e .  A  s u m m a r y  o f  d e v e l o p i n g  
country Members' DFQF coverage is provided below in Table 2. 
Table 2: DFQF access under selected develo ping countries' LDC preference schemes, 
2014 or latest available year  
Country  Duty-free coverage (major 
exclusions) Number of dutiable lines  
(national tariff lines) a References on 
Notifications 
Chile  99.5% (wheat, wheat flour and 
sugar) 41 WT/COMTD/N/44 
China (2013) 61.5%b (chemicals, machinery, 
paper and wood products, cotton, 
textiles, steel products, etc.) 3170 WT/COMTD/N/39 and 
WT/COMTD/N/39/Add.1/Rev.1 
India  94.1% (Meat and dairy products, 
vegetables, coffee, tobacco, iron 
and steel products, copper products, etc.)
 674 WT/COMTD/N/38 
Korea, Republic of  90.4% (meat, fish, vegetables, 
food products, etc.) 1180 WT/COMTD/N/12/Rev.1 and 
WT/COMTD/N/12/Rev.1/Add.1 
Chinese Taipei   31.0%. Some 136 products enjoy 
exclusive duty-free access, including selected plastic items, raw hides and skins, textile and clothing articles, parts of vehicles, 
precious stones, etc. The 
exclusions cover a wide range of products.
 6159 WT/COMTD/N/40 
Turkey (2011) 79.7% (meat, fish, food, steel 
products, etc.) 2384 - 
a These tariff lines may vary from year to year due to change in national tariff nomenclature. 
b China has extended DFQF coverage for LDCs to 95% of its tariff lines in 2013. It has reported in 
WTO meetings that an updated notification in this regard would be submitted soon.  
Source: WTO Integrated Database 
 
4.8.  In addition to the above developing countries, Brazil had announced at the WTO Ministerial Conference in 2009 that it would grant DFQF access for products from LDCs. It may be noted that, WT/COMTD/W/206 
 
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  like some developed Members, a number of developing country Members also accord preferences 
to LDCs through regional or bilateral channels.3 
4.9.  The review of developing country Members' tariff schedules also indicate a low number of 
tariff lines subject to TRQs for imports from LDCs . In the case of China, LDCs enjoy preferential 
market access for some 47 tariff lines within the quota limits. TRQs are also identified in Korea's 
tariff schedule for some 20 tariff lines, though these are not sp ecific for LDC beneficiaries. 
5  CONCLUSION 
5.1.  The above review shows that nearly all deve loped Members provide either full or significant 
DFQF market access to LDC products. The except ions to duty-free treatment relate to a few 
sectors, and to a limited number of developed Members. The current DFQF coverage for LDCs 
under the US' GSP scheme is 82.6%. The DFQF coverage in Russian Federation's GSP sub-scheme 
for LDCs was 38.1% in 2012. This may be viewed in the context of the Bali DFQF Decision which 
stipulates that: "Developed-country Members that  do not yet provide duty-free and quota-free 
market access for at least 97% of products originating from LDCs, defined at the tariff line level, 
shall seek to improve their existi ng duty-free and quota-free coverage for such products, so as to 
provide increasingly greater market access to LDCs, prior to the next Ministerial Conference".  
5.2.  As noted earlier, five developing countries (namely Chile, China, India, Korea and Chinese 
Taipei) have notified their individual DFQF sch emes to the WTO. The degree of DFQF market 
access provided by these schemes is, in most cases,  significant. This may be viewed in the context 
of the Bali DFQF Decision which stipulates that: "Developing-country Members, declaring themselves in a position to do so, shall seek to  provide duty-free and quota-free market access for 
products originating from LDCs, or shall seek to  improve their existing duty-free and quota-free 
coverage for such products, so as to provide increasingly greater market access to LDCs, prior to the next Ministerial Conference".  
5.3.  It is recommended that Members introducing or improving DFQF market access for LDCs 
provide detailed information to the WTO, pursua nt to the PTA Transparency Mechanism. This 
would enhance transparency on preferences bein g accorded by Members to the LDCs and would 
allow this to be included in any future reports by the Secretariat. 
 
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3 For example, unilateral preferences are grante d to a number of LDCs under China-ASEAN FTA 
framework (WT/TPR/S/300/Rev.1). Similarly, preferential rates are granted by India to South Asian Free Trade Agreement (SAFTA) LDC members (WT/TPR/S/249/Rev.1).