WT/TPR/M/394  
12 February  2020 
(20-1114) Page: 1/37 
Trade Policy Review Body   
18 and 20 November 2019  
  
TRADE POLICY REVIEW  
LAO PEOPLE'S DEMOCRATIC REPUBLIC  
MINUTES OF THE MEETING  
Chairperson: H.E. Mr Manuel A.J. Teehankee (Philippines)  
CONTENTS  
 
1  INTRODUCTORY REMA RKS BY THE CHAIRPERSON  ................................ ......................  2 
2  OPENING STATEMENT  BY THE REPRESENTATI VE OF LAO PDR  ................................ .... 4 
3  STATEMENT BY THE DISCUSSANT  ................................ ................................ ...............  8 
4  STATEMENTS BY MEM BERS  ................................ ................................ .......................  11 
5  REPLI ES BY THE REPRESENTA TIVE OF LAO PDR AND ADDITIONAL COMMENTS  ........  30 
6  CONCLUDING REMARK S BY THE CHAIRPERSON  ................................ ........................  34 
7  ADOPTION OF TPRB 'S ANNUAL REPORT FOR 2019  ................................ ....................  36 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies provided 
by Lao PDR  are reproduced in document WT/TPR/M/ 394/Add.1  and will be available online at 
http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm . WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  
1.1.  The first Trade Policy Review of Lao PDR was held on 18 and 20 November 2019. The 
Chairperson, H.E.  Mr. Manuel Teehankee (Philippines), welcomed the delegati on of Lao PDR , headed 
by H.E. Mrs. Khemmani Pholsena, Minister of Industry and Commerce ; the rest of the delegation  
from Lao PDR , and other colleagues from the Mission in Geneva; and the discussant, Mr. Jean Marie 
Paugam (France) . 
1.2.  The Chairperson took this opportunity to remind Members that, as indicated in the revised 
Airgram for this meeting (WTO/AIR/TPR/91/ADD.1) , at the end of the second day, the TPRB would 
be invited to adopt its Annual Report for 2019 (document WT/TPR/W/172 distributed on 
25 October  2019).  
1.3.  The Chairperson recalled the purpose of TPRs and the main elements of procedures for  the 
meeting. The report by Lao PDR  was contained in document WT/TPR/G/39 4 and that of the WTO 
Secretariat in document WT/TPR/S/39 4. 
1.4.  Questions by the following delegations were submitted in writing before the deadline: Canada; 
Philippines; Australia; Chine se Taipei; United States; Hong Kong, China; Malaysia; China; and the 
European Union . The following delegations submitted written questions after the deadline: Thailand; 
Dominican Republic; and Iceland . 
1.5.  Lao PDR 's WTO accession, according to Dr. Thongloun Si soulith, Deputy Prime Minister and 
Minister of Foreign Affairs at that time, had been a guide and a driving force towards reforms in the 
country 's trade and economic framework, taking into account international best practices. It had 
also helped pave the w ay to attain the Millennium Development Goals by 2015 and graduate from 
LDC status. Upon accession, Lao PDR had undertaken to align its trade and related policies and 
practices with WTO principles in numerous areas, including state enterprises, price contr ols, tariff 
rate quotas, quantitative restrictions, import bans, customs valuation, certificates of origin, pre -
shipment inspection, contingency measures, export measures, subsidies, TBT/SPS measures, special 
economic zone customs formalities, intellectual  property rights, transparency and WTO notifications.  
1.6.  Since its accession, Lao PDR 's economy showed robust growth, with real GDP expanding by 
over 7% annually, and the country is on the path to graduate from LDC status by 2024. Prudent 
macroeconomic manag ement resulted in moderate inflation and exchange rate stability. However, 
high fiscal deficits and public debt remained a concern; these was also highlighted by Members in 
their advance written questions. Lao PDR 's increasing trade openness was also evident by the share 
of trade in GDP rising since it 's accession. In their advance written questions, Members also sought 
further information regarding national accounts and balance -of-payments data.   
1.7.  Lao PDR remains committed to the multilateral trading system, and improved its WTO 
commitments by ratifying the Trade Facilitation Agreement (TFA). At the same time, it continued to 
focus on strengthening regional economic integration ties through the implementation and/or 
participation in the negotiation of several ASEAN agreements. Lao PDR, a beneficiary of Generalized 
System of Preferences schemes and of additional LDC -specific preferences, continued to receive 
assistance regarding reaching economic development objectives under Enhanced Integrated 
Framework  projects. During the review period, it submitted several WTO notifications. Lao PDR 
remains largely open to, and makes efforts to encourage, foreign direct investment. As indicated by 
the advance written questions, Members wished to learn more about some of its development 
strategies, policy and law -making procedures, regulatory transparency and LDC graduation -related 
implications, as well as investment promotion and business environment reforms and procedures, 
among other things.  
1.8.  With regard to trade pol icy, the tariff was Lao PDR 's main trade policy instrument. The simple 
average applied MFN tariff in 2018 was 8.6%, while the average bound tariff was 19.0% and the 
entire tariff was bound. The applied rate exceeded the bound rate for a small number of tar iff lines, 
an issue highlighted by some Members in their advance written questions. Furthermore, since its 
WTO accession, Lao PDR undertook a number of trade facilitation measures which resulted in a 
considerable decline in customs clearance times. In thei r advance written questions, Members 
sought further information concerning some of these measures. Since its accession, Lao PDR had 
enacted, or was in the process of enacting, legislation in a number of areas, such as safeguards, WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  anti-dumping and counterva iling measures, competition policy, government procurement, and IPR. 
Further clarification regarding these areas was also sought by Members in their advance written 
questions.  
1.9.  The Chairperson drew Members ' attention to the following areas, among others, w here 
Members were interested in having more clarity. These included: export bans on unprocessed wood 
and minerals; mining concession allocations; energy and manufacturing policy plans; some 
regulatory and procedural issues in financial services; certain te lecommunications issues, road and 
railway transport development plans; and plans relating to e -commerce and tourism.  
1.10.   This meeting was to be a good opportunity for Members to discuss in greater detail issues of 
interest to them and of systemic importance t o the multilateral trading system. The Chairperson  was 
looking forward to a fruitful exchange.  
  WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  2  OPENING STATEMENT BY  THE REPRESENTATIVE OF LAO PDR (H.E. MRS. KHEMMANI 
PHOLSENA ) 
2.1.  It is a great honour  and privilege for me to represent the Government of Lao P DR in this first 
review of our development and trade policies.  
2.2.  First and foremost, I would like to thank the WTO Secretariat for the excellent job they have 
done in analysing  our policies. They have been very effective and persistent in getting the relevan t 
information from all stakeholders in the Government.  
2.3.  The Trade Policy Review by the WTO is a demanding, but very worthwhile exercise: it provides 
a comprehensive picture of trade policies and their implementation to our Ministry, which is in charge 
of trade policy. It shows us where we are in our reform efforts and what still needs to be addressed. 
In some instances, we are provided information about policies in other sectors of which we had 
ourselves no knowledge, information which will allow us to impr ove our work.  
2.4.  The questions asked by the WTO Members and the discussions these days here in Geneva are 
equally important. It is very helpful for a national administration to get an external appreciation of 
its policies: Government officials - often attending to the urgent rather than the important - need to 
get an outside assessment to concentrate on the major issues. We have  responded to the questions 
as best we can. We have received 185 advance written questions and the document you have 
received on the questions and answers is 81 pages long. We will pursue the questions further and 
submit to you, within one month of this me eting, the additional information we may be able to 
gather.  
2.5.  Lao PDR has accomplished much during the review period. We have defined a large number of 
reforms in many sectors, have adapted most of our laws to international standards and we have 
progressed substantially both in establishing a market economy unleashing the entrepreneurship in 
our people , as well as in our efforts to integrate our economy into the global trading system. I am 
not going to repeat all the accomplishments in the legal and administ rative system: the WTO 
Secretariats ' report illustrates them.  
2.6.  The economic and development results have proven that our reform efforts have not been in 
vain: our growth rate has been second to none and we have reduced our poverty rate from 46% in 
1993 to 2 3% in 2013, and further to 19% in 2017.  
2.7.  I think we can be proud of our achievements. I would like to thank hereby the numerous 
Members of the WTO who have provided us with valuable assistance, without which we would not 
have been able to progress as much a s we have.  
2.8.  This said, Lao PDR is fully aware that we have still a long way to go. Slowing our reform efforts 
is not an option.  
2.9.  Adapting laws and regulations to international standards is one thing. Ensuring their 
consistency and efficient application is a much more difficult and demanding process. The 
transformation of a state -led economy to a market -oriented economy requires a change of mind: 
this requires time, awareness raising, training both of Government officials and the public at large. 
This is one o f our top priorities in the coming years.  
2.10.   The demands for reform are evolving rapidly. We are still in a full reform effort of the services 
sector and yet we are already required to prepare ourselves both in terms of human resources as 
well as the regulato ry environment to be able to take advantage of the potential of e -commerce. We 
have been successfully developing our natural resources and urgently need to transform our 
economic fabric from a resource -based economy to a diversified economy both in industr y and 
services that will create remunerative jobs for our people.  
2.11.   Our development has been unequal, both in terms of beneficiaries and between the regions. 
As the majority of our underprivileged population lives from agriculture and in remote areas, our 
priority will be to increase agricultural productivity, value added creation through the transformation 
of agricultural products and to ensure that all our people have access to transport, electricity, 
education, credit and the internet.  WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  2.12.   My Government is fu lly aware of the fragility of our development to external shocks. We have 
to better manage our public finance and our foreign exchange. We have to diversify our exports and 
their destinations. We have already taken strict measures to decrease our budget de ficit and we 
have managed to increase, although not enough, our foreign exchange reserves. Better budget 
management, including improving our procurement system - by applying the existing legal and 
regulatory framework efficiently and consistently - is a pr iority.  
2.13.   In the trade field, our priorities are clear: trade is not an objective, but an important tool to 
further our development objectives.  
1. Security of law and predictability of policies : We have established policies and strategies 
to ensure that we are a fair, open and market -oriented economy. The legal and 
regulatory environment to do that has largely been set. Many questions received from 
the WTO M embers concern not our polices or laws , but their implementation. We have 
heard you and we agree. Efficient and coherent implementation of policies and laws will 
be our priority in the coming years. This includes better coordination among Ministries, 
greater transparency in promulgating our la ws and regulations, full implementation of 
our instruments of consultations of the private sector and the civil society; uniform 
application of laws and regulations at the central and provincial level to give confidence 
and predictability to the private se ctor. 
 
2. Our administrative procedures are still too cumbersome. We need to improve our 
investment climate. While foreign investment in our economy has increased 
substantially, most of it has been in the extraction of our natural resources and in 
hydro -power . Our policy of creating special economic zones and industrial parks has 
been rather successful in attracting investments in manufacturing. However, they are 
not a panacea: they are concentrated in more favored regions and they have not yet 
had sufficient spill-over effects. We expected that our new investment promotion law 
would improve the business environment and the attractiveness of Lao PDR as an 
investment destination. The Ease of Doing Business Report of the World Bank has shown 
us, that the reforms are not yet perceived by the business community. My Government 
has taken the report as a blueprint for further reforms. We have adopted a bottom -up 
approach to define those measures: each Ministry, each Province has been requested to 
propose concrete measu res on how they can help reduce the gap between our policies 
and the reality. This might not be the quickest way to come to concrete measures. 
However, my Government believes that this exercise will not only identify concrete 
measures but will also ensure that they are implemented.  
3. Our licensing procedures are still considered inefficient and burdensome by our business 
community. My Government is in the process of reviewing both the licenses , as well as 
the procedures in view of facilitating businesses. Con crete steps on how to facilitate 
businesses and how to make the procedures more efficient when licenses are required 
are expected within the coming months. We count on the business community to actively 
participate in the consultation process that we will establish , and we expect to receive 
useful comments to improve the new regulations and the proposed measures.  
 
4. We will continue our efforts to open up our economy  to the world. We are aware that 
the global market is changing and trade becomes more and more trade "in parts " than 
"in products ". Lao PDR wants to be part of regional and global value chains including 
garments and electronic in which we are tapping. We a re well aware that we will only be 
part of them if the internal conditions are right and if goods and services can flow freely 
and efficiently across our borders. This is why we have given priority to becoming a 
land-linked country through heavy investment s in railways, roads and bridges. This is 
why we have given priority to the implementation of our trade facilitation strategy: over 
90% of the measures of the strategy have already been implemented. In addition, we 
are working hard to improve the regulator y environment in the various services sectors. 
We are convinced that e -commerce is a great opportunity for our development even 
though we face considerable obstacles. This is why Lao PDR has adhered to the Joint 
Statement Initiative on e -commerce and why w e have established inter -ministerial 
working groups to identify what is needed to create a favorable environment for 
e-commerce and to elaborate a strategy for e -commerce. We hope to profit from the 
discussions and negotiations on e -commerce at the WTO and  in other fora to ensure that WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  our work to establish a regulatory framework for e -commerce responds to best 
international practices. However, we are afraid that our limited capacities, both at the 
capital , as well as in the delegation here in Geneva, will n ot allow us to take full 
advantage of this. Technical assistance in this field is urgently needed: we want an 
international rules framework that is taking into account our development needs and 
that guides us in our internal work.  
 
2.14.   We also want to ensure t hat our country is integrated into the value chains, which are being 
created in the ICT field. Therefore, the Government is proposing to the National Assembly an offer 
of concessions to join the ITA I and ITA 2. We hope to be a member of these two agreemen ts in the 
first half of 2020.   
2.15.   Allow me here to express our deep concerns about the erosion of the WTO as the main 
framework of international trade rules and the raise of bilateralism. Lao PDR reaffirms the 
importance it gives to an inclusive multilateral  system for a smooth and fair functioning of the global 
economy , as well as our concern that the DDA, which covers subjects of high priority for our 
development, such as agriculture, is not progressing. Concrete results at the next Ministerial 
Conference a re necessary if we do not want the multilateral system to be further eroded. We 
therefore urge all WTO Members to give to the negotiations on agriculture the same priority and 
attention as they give to the so -called new subjects.  
5. We are continuing forcefu lly our efforts to ensure adequate access of Lao PDR to foreign 
markets. Our priority there is to deepen the integration within ASEAN and to expand the 
agreements of ASEAN with other partners. We are also part of the other negotiations on 
free trade agreem ents in the region and we will pursue the negotiations of such 
agreements with our major trading partners. We trust that our more advanced trade 
partners will take into account our development status by agreeing to asymmetric 
agreements. These negotiations  have received a new urgency given the fact that we 
may lose some preferences we enjoy now when graduating from LDC status, most 
probably in 2024. We sincerely hope that our partners in the WTO will follow 
recommendations to assist graduating countries by allowing a smooth transition.  
 
6. One of the major challenges we are facing is to diversify our economy. This requires a 
lot of actions in many fields. We are aware that we need a holistic approach to the 
development of our manufacturing services sector , and we need to define an 
industrialization  policy  in line with our commitments and adapted to the needs of value 
chains. Our first and foremost priority is to improve our investment climate. Therefore, 
Lao PDR supports the efforts in the WTO on investment faci litation and signed on to the 
Joint Statement on Investment Facilitation for Development , as well as the one on Micro, 
Small and Medium -sized Enterprises at the 11th Ministerial Conference in Buenos Aires. 
But our first concern is ensuring the full and con sistent application of our existing laws. 
Awareness raising and training of both the administration at the central and provincial 
level, as well as of the private sector are needed in all fields related to investments. 
Indeed, a huge task.  
 
2.16.   As you can see,  my Government is fully aware of the remaining work and we are determined 
to accomplish it. However, there are so many priorities of actions in a country like Lao PDR and such 
limited capacities, that we are forced to limit ourselves to the most urgent. We  therefore ask for 
your comprehension and indulgence, if and when we are not going as far and as fast as you may 
consider necessary.  
2.17.   We also encourage you to help us speed up the process by providing us with the necessary 
support. We are aware that we woul d not be where we are today without the substantial support we 
have received from many of you. Such support is essential for us . 
- We need technical assistance to ensure that our work and reforms correspond to best 
international practices.  
- My Government has multiple priorities, many of them concerning direct issues of access 
to basic human needs. In the allocation of financial and hu man resources, the 
Government is, understandably, more responsive to pressures to improve the living 
conditions of the population through actions which have concrete results than to improve 
the economic and trade environment the benefits of which are not v isible in the short WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  run. Having the support of you helps us to ensure that these actions receive the priority 
they deserve.  
  WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  3  STATEMENT BY THE DIS CUSSANT  
3.1.  I am honoured at being chosen to act as discussant in this first trade policy review for the 
Lao Peopl e's Democratic Republic, to which I would like to express my gratitude. I would also like to 
thank the Secretariat for its work in preparing this discussion, which I consider to be of the utmost 
interest.  
• Systemic interest, in that this is the first trade policy review for a least developed country 
(LDC) that has recently acceded to the Organization: there will be lessons for us to learn.  
• Professional interest, since I worked on issues related to the integration of LDCs into the 
world economy during m y executive management role at the International Trade Centre 
(ITC).  
• Personal interest, since I had the opportunity, having responsibility within the French 
administration for foreign trade, to go to Lao PDR and visit the Nam Theun 2 dam, the 
construction of which was a joint project with Electricité de France (EDF). The Nam Theun 2 
dam is fairly representative of a number of issues that we are going to discuss, not only 
because electricity accounts for 25% of exports from Lao PDR but also, especially, beca use 
the project was implemented taking account of sustainable development, including in 
relation to economic integration and relocation of the population, which is a credit to your 
Government.  
3.2.  My remarks will therefore seek to identify the lessons, in your  experience of accession to the 
WTO, that might be useful to other Members – other LDCs, of course, but all other WTO Members 
too. 
3.3.  With regard to the findings relating to the period since your accession, I was struck on reading 
the reports by two aspects o f the strategy that you have implemented, Madam Minister – namely, 
its ambition and its precision.  
3.4.  Its ambition, since the primary objective of your trade policy is for Lao PDR to graduate from 
the LDC category. And you are right. LDC status is neither a c ocoon nor a poverty trap: it is a 
protective status aimed at strengthening the economy so that graduation from that status is 
possible. For Lao PDR, the goal has been clear since the outset: 2024 will be the year of graduation 
from LDC status, 2030 will be  the year of entry into the middle -income country category. I believe 
that when a country is capable of formulating such an ambitious goal it means that it is also capable 
of achieving it. I hope to be able to join you to celebrate this graduation from LDC  status in a few 
years' time.  
3.5.  Ambition is also apparent in driving your trade integration without ignoring the challenges of 
sustainable development. It is visible in the reports about renewable energy, logging, the setting up 
of inclusive governance mecha nisms – in particular the machinery for consultation of the private 
sector or economic forces in the formulation of trade policy or the interministerial steering committee 
for the implementation of sustainable development goals. We can see that Lao PDR ref uses to choose 
between growth and sustainability. It seeks to combine the three pillars of sustainable development: 
trade, inclusivity and the environment, and this is a paradigm for the economy of the future.  
3.6.  Ambition is also reflected in your wish to tak e on responsibilities in the multilateral trading 
system: firstly, by notifying a bound customs tariff which is fairly close to duties to be applied; 
secondly, in your work on notification relating to rules of origin, SPS and agriculture; and lastly, in 
your participation in certain plurilateral initiatives of the Organization, the Information Technology 
Agreement, and the negotiations on investment facilitation, to which you have just referred.  
3.7.  My second key word is precision because although your policy i s ambitious, it is never vague. 
It is precise in the formulation of objectives, which are often expressed in numerical terms. This can 
be seen in the reports: with regard to the reduction in customs clearance time, the decrease in the 
cost of exports, or t he efforts to improve your country's ranking in the World Bank's "Doing Business" 
index, the results to be achieved are measurable.  WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  3.8.  Your policy is also precise in the analysis of trade interests. In particular, I think of the very 
interesting work presente d in the Government's report assessing the trade implications of the loss 
of certain preferences associated with LDC status. This work is very precise.  
3.9.  Lastly, your policy is precise in the wish to carry out a rigorous evaluation of the effectiveness 
of me asures, the causal link between actions and results, and the assessment of impact. Your report 
also emphasizes this point. I would also like to take the liberty of making a recommendation in a 
personal capacity: persist with your evaluation approach but do  not be too hard on yourselves – for 
the most developed and least developed countries alike, evaluation of the effects of foreign trade 
policy remains a very difficult matter in terms of methodology.  
3.10.   So, on precisely that note, are the results convincing? Dear colleagues, I hope so – otherwise 
my words of praise would be too simplistic. This is for you to judge.  
3.11.   Firstly, let us consider the volume performance. Trade openness as a share of GDP has 
increased substantially since Lao PDR's accession to the WTO:  exports of goods have increased from 
less than one fifth to nearly one third of GDP, with a very similar situation for imports. Foreign direct 
investment (FDI) flows have doubled from USD  400 million to USD  800 million since accession. 
These are significa nt results, especially if compared to a base which itself was growing, with the 
GDP average growth rate standing at 7% for this period.  
3.12.   These results highlight a key lesson to be learned – namely, the connection between 
attractiveness for investors and com petitiveness or export performance.  
3.13.   As far as quality is concerned, I would like to single out what appears to be a constant aim in 
the policy being implemented, namely seeking to make life easier for enterprises and foreign 
investors. This is reflected in  the Law on Investment Promotion adopted in 2016, and can be seen 
in: 
1. the work on automated customs clearance procedures , which are now operational at 
24 border posts with an average clearance time down from 11.5 hours to 6.5 hours; 
and 
2. the Trade Facilitat ion Road Map (TFRM ). 
 
3.14.   I think that these are fairly convincing results, at least on paper.  
3.15.   Of course, Madam Minister, my analysis would be incomplete and simplistic if I didn't say 
something about the challenges facing your Government. The reports give the  impression that a 
firm course has been set and the bulk of the legislative wok has been done but that further work is 
of course still needed to ensure the effective implementation of these commitments.  
3.16.   Clearly the biggest challenge of all is still to prepare for graduation from LDC status. Lao PDR 
has carried out a sound analysis here. This change of status will give rise to new obligations to align 
the legislation to the WTO agreements and so a major effort will still be required – perhaps not as 
much  as what was needed for accession, but stamina will still be necessary. This is a key message 
for all of us meeting today: Lao PDR will need support and assistance from its trading partners to 
achieve graduation from its LDC status.  
3.17.   The second challenge is  the effective implementation in practice of the adopted legislation. 
This is a familiar issue. Between legislation and practice there are many stages: implementing 
regulations, administrative directives and training for officials are needed. Sometimes a c hange in 
administrative culture is necessary, and this is the hardest to achieve.  
3.18.   Here is where we often get into specific examples. This, I think, can be seen in the many 
requests for clarification made by various Members, particularly regarding investmen t licensing 
regimes, customs controls, and the completion of notification procedures. Work still remains to be 
done. In preparing this meeting, I took the liberty of asking for some feedback in circles dealing with 
foreign affairs in Lao PDR. Everything co nfirms that problems remain regarding the effective 
application of certain items of legislation throughout the country.  WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  3.19.   Allow me to give a specific example. Intellectual property law is recognized as a priority in 
your development plan but reports indicate  that certain implementation mechanisms – for both 
administrative and judicial penalties – are not entirely adequate at present.  
3.20.   Business circles quote difficulties regarding, for example, VAT management issues. There is 
also some disappointment at the del ay in launching the "Lao National Single Window" online customs 
clearance platform, which will enable all logistical operations at borders to be processed 
electronically.  
3.21.   You provide a lucid overview of this in your report, and technical assistance and sup port is 
still needed for the adoption of practical measures.  
3.22.   The third major challenge is to consolidate and expand the production and export base in 
Lao PDR. 
3.23.   Firstly, there are macro -economic issues that I will not comment on at length since they go 
beyon d the context of trade policy. The most significant of these is labour productivity, particularly 
in agriculture, with the challenge of training the workforce, which appears crucial in every way for 
making the country attractive to investors.  
3.24.   Many expectat ions have been voiced by your partners as regards improving the investment 
regime. No doubt we will talk about this during the discussion.  
3.25.   A very important point raised in many questions and in the reports relates to the insufficient 
capacity of judicial b odies for the provision of commercial arbitration, which clearly constitutes a 
basis for guarantees and predictability for investors.  
3.26.   Other expectations regarding clarification relate to the translation of documents into English, 
the funding of trade infor mation portals, and the simplification of licensing and licence renewal 
procedures.  
3.27.   I would like to refer to a final issue covered by the different reports, namely sustainability in 
the timber sector. Illegal trading persists and there is an observed need for better implementation 
of the Law on Forestry, involving, for example, transparency in quota distribution arrangements and 
the setting up of a tracing system. You are aware of this issue: you have launched discussions on a 
voluntary partnership agreemen t with the European Union relating to this sector. As a European I 
naturally welcome this and I wish you every success.  
3.28.   Mr Chair, Madam Minister, I would like to leave you with three issues for ongoing discussion 
with the other Members: preparing the gradu ation from LDC status; ensuring the effective 
implementation of the measures taken to consolidate your reform potential; and expanding your 
export potential. But above all I would like to leave you with a friendly personal message: keep up 
these efforts, d o not lose the impetus of reform that led to your accession.  
3.29.   Madam Minister, I wish you good luck for today's discussion and beyond that, for the 
completion of your mission. Thank you once again for involving me in this work and congratulations 
once again to the Secretariat for its work of preparation.  
  WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  4  STATEMENTS BY MEMBER S 
CANADA  
4.1.  Canada is pleased to participate in Lao PDR 's first Trade Policy Review and we would like to 
express our appreciation to Lao PDR 's Government and the WTO Secretariat for their high -quality 
reports.  
4.2.  We applaud the Laotian Government 's economic progress since its accession to the WTO. It 
has enacted several macroeconomic policies to address structural vulnerabilities and weaknesses, 
and according to its Government Report, La o PDR sees clear positive developments that should keep 
it on track in its goal of becoming a middle -income country by 2030. These policies have focused 
mainly on developing its hydropower and attracting foreign investment in the areas of energy, 
natural r esources and tourism. The government is also promoting fiscal consolidation by modernizing 
tax systems and reducing state payroll and operating expenses.  
4.3.  Canada commends steps taken recently by Lao PDR 's government to improve the business 
environment. For  example, in 2018 the government set up a "one-stop service " window to streamline 
new foreign investment into the country. In February 2019, regulations for new business registration 
came into force, cutting the time taken to set up a company from six mont hs to less than one month. 
Lao PDR has also continued to promote special economic zones that offer tax and customs incentives 
to attract investors and promote economic diversification. And it has taken significant steps this year 
to implement an electronic  National Single Window for customs clearance and duty payment in line 
with ASEAN priorities. Canada also wishes to commend Lao PDR for its support of the Joint Ministerial 
Statements on E -Commerce and Investment Facilitation for Development, and encourage s its full 
participation.  
4.4.  In addition to these positive actions undertaken by the government, Canada would like to 
acknowledge Lao PDR 's commitment to rules -based trade through its participation as a member 
state of ASEAN in exploratory discussions for a possible ASEAN -Canada free trade agreement. In 
this regard, Canada would like to thank Lao PDR, for generously hosting the second set of exploratory 
discussions in Vientiane in April 2019.  
4.5.  Along with these promising initiatives and progress, there remain a reas that would benefit from 
further focus by Lao PDR. Challenges remain which dissuade foreign companies and investors from 
doing business in Lao PDR in areas such as border -clearance procedures. In the World Bank 's 2019 
Doing Business Report, Lao PDR 's ranking dropped, and its score was well below the regional 
average. Transparency International 's Corruption Perception Index ranked Lao PDR 132nd out of 
180 countries. This remains a significant challenge for companies attempting to do business in the 
count ry. Ground -transport costs are more than twice the ASEAN average. Canada also considers the 
"Conditional List ", published in January 2019, restricting foreign investment for security reasons, to 
be unnecessarily expansive. Finally, although infrastructure investment in Lao PDR remains strong, 
the integrity and sustainability of certain projects could benefit from enhanced transparency, 
environmental assessment, labour standards and inclusiveness of the economic benefits of the 
projects.  
4.6.  As transparency is a  cornerstone of this Organization, Canada calls on Lao PDR to ensure full 
compliance with its notification requirements, and we welcome its commitment in this regard as 
outlined in its Government report. Canada also welcomes Lao PDR 's timely payment of con tributions.  
4.7.  Lao PDR has made great strides in recent years, and Canada believes that by continuing to 
enact policies that are non -discriminatory, consistent with global standards, and focused on results, 
the many benefits of modern trade will be shared amo ng the Laotian people. On this note, Canada 
also wishes to commend Lao PDR for its support of the Buenos Aires Declaration on Women and 
Trade.  
4.8.  In closing, we wish Lao PDR a productive and useful first Trade Policy Review, and we look 
forward to a constructive exchange of views this week.  
  WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  THAILAND  ON BEHALF  OF ASEAN  
4.9.  Lao PDR became a fellow ASEAN Member State in 1997 and has been actively contributing to 
ASEAN 's community building efforts ever since. For example, Lao PDR has chaired ASEAN twice, fi rst 
in 2004, and most recently in 2016, the year leading up to ASEAN 's 50th anniversary. Lao PDR has 
also engaged constructively in ASEAN negotiations, as evidenced in her negotiating roles such as for 
the Regional Comprehensive Economic Partnership (RCEP)  Agreement. ASEAN is one of Lao PDR 's 
biggest trading partners, and ASEAN 's regional economic integration efforts are therefore of strategic 
importance to Lao PDR.  
4.10.   Lao PDR has grown from strength to strength in being an active and responsible internationa l 
player. Despite only acceding to the WTO in 2013, Lao PDR has worked tirelessly to support the 
multilateral trading system. It has been implementing its WTO obligations notwithstanding the heavy 
effort often required of Least Developed Countries (LDCs). In fact, as highlighted in the Secretariat 
report, Lao PDR improved its WTO commitments by ratifying the WTO Trade Facilitation Agreement 
(TFA) in 2015, becoming the second LDC to do so. It has also submitted a number of WTO 
notifications to enhance transp arency and accords Most -Favoured -Nation treatment to all trading 
partners including non -WTO members. Additionally, Lao PDR has participated in the Joint Statement 
Initiatives on E -Commerce, Investment Facilitation for Development and MSMEs as co -sponsor. I t is 
also evident that the membership of Lao PDR in WTO has further strengthened ASEAN 's position in 
the Multilateral Trading System.  
4.11.   This is Lao PDR 's first trade policy review, and in this period, it has shown impressive growth, 
including an average annual GDP growth of approximately 7.3%, with the ratio of trade in goods 
and services to GDP increasing to around 75% in 2018, from 60% in 2013. Foreign direct investment 
inflows have also increased from approximately USD 426.7 million in 2013 to USD 813.0 million in 
2017. This growth is expected to continue in the years to come.  
4.12.   Lao PDR 's success has been due in no small part to the steps it has undertake n to implement 
domestic reforms which encompass almost all trade -related legislation, with substantial progress in 
trade policy in goods and services, customs, public procurement, agriculture, taxation, and other 
areas. Of particular note are its Five Year  National Socio -Economic Development Plans, under which 
the legal and regulatory frameworks of Lao PDR 's trade and investment regime have improved 
significantly, and the establishment of a National Steering Committee for Economic Integration to 
take the le ad on international trade policy.  
4.13.   ASEAN congratulates Lao PDR on its remarkable economic performance and developments to 
date, and firmly believes in its sustained progress as it continues along this path. ASEAN will continue 
to support Lao PDR through its  journey, and in its efforts to graduate from LDC to Developing 
Country. On behalf of ASEAN, we wish Lao PDR a successful first Trade Policy Review.  
THAILAND  
4.14.   At the outset, Thailand would like to associate itself with ASEAN statement.  
4.15.   Thailand and Lao PDR have shared common culture traits, enjoyed robust bilateral relations, 
and worked cooperatively at different levels. Both sides have the synergy to further deepen and 
expand cooperation in areas of mutual interest, including economics, transportation, educ ation, 
natural resources, environment, and energy. These partnerships have contributed not only to our 
two countries but also to the sustainable prosperity in ASEAN.  
4.16.   Thailand is pleased to highlight the favourable  growth of bilateral trade and investment. 
During the past 10 years, total trade between the two countries constantly increased by an average 
of 12% per year, from USD 2.1 billion in 2009 to USD 6.7 billion in 2018. In ASEAN, Thailand is 
number one trading partner of Lao PDR, and Lao PDR is the sev enth largest trading partner of 
Thailand. In addition, Thailand 's cumulative investment tops the chart of ASEAN investors in Lao 
PDR with total value of USD 675 million between 2010 and 2018. Thailand hopes that our bilateral 
trade and investment will cont inue to grow to further strengthen our economic relations.  
4.17.   Thailand congratulates Lao PDR on its solid average annual economic growth of 7% since 
2013. Trade plays a significant role for Lao PDR to achieve its economic objective. Lao PDR has taken WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  various initiatives to continually improve its trade -related and investment policies as well as customs 
procedures. We believe that these efforts will contribute to sustainable and resilient economic growth 
in the country.  
4.18.   Thailand commends Lao PDR 's active partic ipation in the multilateral trading system since its 
accession in 2013. We are pleased to learn from the Government report that Lao PDR intends to 
sign on to the Information Technology Agreement or ITA I and ITA Expansion agreements, 
manifesting its willin gness to abide by further liberalization measures. Moreover, as highlighted in 
the Secretariat report, it was the second LDC to ratify the Trade Facilitation Agreement and during 
the review period, Lao PDR fulfilled its notification obligation to the best of its capacities. However, 
Lao PDR has faced challenges in making timely notifications due to lack of capacity in various 
agencies. This is an area that needs technical assistance to improve compliance under different WTO 
agreements.  
4.19.   In this review, Thai land submitted a set of questions to Lao PDR, covering the measures and 
regulation of our interests such as investment regime, streamlining of customs procedures, and 
dispute settlement proceedings. Thailand would like to thank Lao PDR for its timely respo nse to our 
questions, and we will study them in detail with great interest.  
4.20.   In conclusion, Thailand would like to express our appreciation to Lao PDR for the cooperation 
in every level and the friendly working relationship between our two Missions here in Geneva. We 
wish Lao PDR every success in this Trade Policy Review.  
CHINA  
4.21.   It is a great pleasure to welcome Minister Khemmani Pholsena and her delegation to Geneva 
for this Trade Policy Review.  
4.22.   I don't think there 's any need for me to repeat what has already been said in the Secretariat 's 
report and the government Statement of the Lao PDR. Nor there 's need to refresh the numbers and 
cases shared by our discussant which provided a good illustration of the changes and developments 
that came along with th e accession of Lao PDR to the WTO. Today, I just wish to share with you a 
few general observations.  
4.23.   First, accession to the WTO is a tough but right decision for LDCs. I had the privilege of serving 
as the Chair of the Working Party on Lao PDR accession. I n this capacity, I visited Laos three times, 
and exchanged extensively with both high -ranking officials and the ordinary citizens about the WTO 
accession. It is through these first -hand experiences that I came to appreciate the tremendous 
challenges faced by LDCs such as Lao PDR, in their steps from the calm Mekong river to the roaring 
waves of the Pacific.  
4.24.   During the long, perhaps too long accession negotiations, Minister Khemmani has fully 
demonstrated her resilience, openness and kindness. She has done a  lot of work at home to persuade 
colleagues, including some of her family members, to actively support Lao PDR 's accession to the 
WTO. Her contribution and her name will forever be associated with Lao PDR 's integration into the 
world economy as well as the  country 's development resulting from the WTO accession.  
4.25.   Second, countries with different economic models can co -exist and mutually adapt under the 
roof of the multilateral trading system. Accession to the WTO is not only a process of accepting and 
being a ccepted, it is also a process through which countries with different characteristics and 
economic systems become an integral part of the multilateral trading system. This reminds me of 
the beautiful ancient city of Luang Prabang, which stands on the delta shaped by the converging 
currents of the Mekong and Nam Khan rivers.  
4.26.   The experience of Lao PDR 's accession to the WTO clearly shows that whatever the 
development path and economic model, as long as countries have faith in the openness of the 
economy, and accept the general rules of the market economy, they can achieve mutual benefit and 
shared growth with the existing members of the multilateral trading system. In this process, the 
multilateral trading system will also gain greater vitality from increased inclusiveness and diversity.  WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  4.27.   Third, WTO can help LDCs better integrate into the multilateral trading system. As a Lao 's 
colleague once mentioned, the WTO is like a door to international market and with Lao PDR 's 
accession to the WTO is like a key that is ready to open the door to various opportunities and 
challenges brought by the economic integration. One figure comparison before and after its WTO 
accession impressed me the most, i.e. the average of foreign direct investment of Lao PDR between 
year 2013 a nd 2016 is 854 million US dollars, more than three times of that of the prior accession 
period from 2005 to 2012.  
4.28.   WTO is a rules -based system through which rules are negotiated and enforced. But it can also 
be an organization with warmth, because millions  of people in the acceding countries, especially 
their youth, rely on the rules of the multilateral trading system to make their lives better. If we look 
back at the requests and questions that we have raised to Lao PDR during its accession, how many 
of those are an absolute must? How many of those are just copy -paste from the other accession 
files? If we could have let go of a bit of bureaucracy, if we could have provided a bit more targeted 
assistance to address capacity gaps of the acceding countries, I 'm certain that we can significantly 
reduce the average 12 -years needed to bring on board a new member into the WTO family.  
4.29.   Mr. Chair, as I shared with Minister Khemmani, I 've made plans to revisit Luang Prabang 
during the upcoming Christmas break together  with some Chinese colleagues that have worked on 
the Lao PDR accession. It will be a magical experience as we cruise down the Nam Khan river and 
savour the ancient city at the junction with Mekong, where peace and serenity of what seems to be 
eternity is interwoven with the dynamism of change of times. I wish this trade policy review a full 
success and look forward to the exciting trip in the coming weeks.  
TAJIKISTAN  
4.30.   The Republic of Tajikistan commends Lao PDR for significant achievements made since its 
accession to the WTO. Specifically,  over the period of last 6 years the real GDP growth in Lao PDR 
has averaged close to 7.3% a year. This enabled the Government to rai se the GDP per capita to 
almost USD 2,6 thousand and to reduce the poverty rate to below 20%.  
4.31.   Lao PDR is the 30th economy that joined the WTO pursuant to Article XII of the WTO 
(Marrakesh) Agreement. Lao PDR has co -sponsored the member -driven initiatives o n the "new" 
issues such as e -commerce, Micro, Small and Medium enterprises (MSMEs) and investment 
facilitation for development at the WTO. We welcome the efforts of Lao PDR, particularly to advance 
WTO reform discussions and its active engagement in the in itiatives at the WTO.  
4.32.   We noted continuous engagement of Lao PDR on its complying with the WTO related 
commitments, including categories A, B and C.  
4.33.   The Republic of Tajikistan encourages the Government of Lao PDR to continue with Trade 
Facilitation reforms and wishes Lao PDR a very successful and productive Trade Policy Review.  
AUSTRALIA  
4.34.   Australia congratulates Lao PDR for undertaking its first WTO Trade Policy Review. The TPR 
process is an important opportunity for Members to review the various aspects of t heir trade and 
investment regimes; to acknowledge those aspects working well and identify opportunities for 
improvement.  
4.35.   We commend Lao PDR for its strong economic growth rate, which has averaged over seven 
per cent over the last ten years, and we encoura ge Lao PDR to continue to pursue an ambitious 
economic reform agenda. In this regard, we acknowledge Lao PDR 's focus on fiscal consolidation, 
for example through the adoption of a new Law on Tax Administration, which is expected to come 
into force in Janua ry 2020. We encourage Lao PDR to continue efforts to reduce public debt levels, 
which have increased over the last few years.  
4.36.   We acknowledge the Lao PDR Government 's focus on diversifying the economy and increasing 
labour productivity to increase resilienc e and productivity, for example through reform initiatives in 
areas such as access to information, e -government, anti -corruption, investment promotion, and WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  economic dispute resolution. We also welcome the Lao PDR Government 's focus on developing its 
human capital through inclusive education.  
4.37.   Australia has growing economic interests in Lao PDR. Two -way merchandise trade is currently 
worth about A$  50 million per year. Australia 's main exports to Lao PDR are machinery and 
engineering equipment, while our mai n imports are telecommunications equipment and parts, 
footwear and jewellery.  
4.38.   Australian businesses have a range of investment interests in Lao PDR, including in forestry, 
banking, logistics, and mining and mining services. Australia encourages Laos to continue to 
prioritise the further strengthening of its foreign investment environment to encourage quality 
foreign investment as a means of spurring economic growth and diversification. We welcome the 
establishment of a coordination mechanism on Doing Bus iness in Lao PDR, and encourage the 
government to double down on its efforts to simplify business regulations, and increase the economic 
competitiveness of its firms.  
4.39.   We commend Lao PDR for its commitment to the multilateral trading system since its WTO 
accession in 2013. Domestic legislative reforms are helping integrate Lao PDR into the global trade. 
Lao PDR was the second Least -Developed Country to join the Trade Facilitation Agreement in 2015, 
and a number of recent trade facilitation measures have seen  significantly improved customs 
clearance times.  
4.40.   Australia encourages Lao PDR to continue to leverage the opportunities that its WTO 
membership presents. We welcome Lao PDR 's participation in the joint statement initiatives on 
e-commerce and investment fa cilitation, and encourage Lao PDR to participate in the services 
domestic regulation JSI open -ended negotiations.  
4.41.   We are pleased to be supporting Lao PDR to join the Information Technology Agreement. We 
are also assisting Lao PDR through WTO technical assi stance initiatives such as the Enhanced 
Integrated Framework and the Standards and Trade Development Facility.  
4.42.   We note Lao PDR has submitted notifications under several WTO agreements over the review 
period, although some regular notifications - for examp le on domestic support to agriculture, import 
licensing procedures, and subsidies - were received only once during the review period. We 
encourage Lao PDR to submit more regular and timely notifications and to seek assistance wherever 
necessary in order to  do so. Notifications by all Members are important for the effective functioning 
of the WTO.  
4.43.   Australia submitted a number of questions to Lao PDR covering investment reforms and 
regulations, transport and logistics, the establishment of a national single w indow, and IP rights. We 
look forward to reviewing the responses to these questions, and to engaging over the coming days 
in what we anticipate will be a successful inaugural trade policy review for Lao PDR.  
THE SEPARATE  CUSTOMS  OF TAIWAN,  PENGHU,  KINMEN  AND MATSU  
4.44.   We are pleased to note since its WTO accession in 2013, Lao PDR has undertaken second 
constitutional amendment and several regulatory reforms, which contributes to its average annual 
GDP growth of 7.3%, with the ratio of trade to GDP increasing fr om 60% to 75% in 2018 since its 
accession.  
4.45.   With its Five Year National Socio -Economic Development Plans and the establishment of a 
National Steering Committee for Economic Integration, we expect the Lao PDR will continue its 
remarkable economic performance , and we welcome further liberalization of its economy.  
4.46.   During the review period, Lao improved its WTO commitments by ratifying the Trade 
Facilitation Agreement (TFA) in 2015. We acknowledged this effort and encourage Lao to remain 
committed to the multila teral trading system, and to improve its regular notifications (i.e. domestic 
support to agriculture, import licensing procedures, and subsidies) that were received only once 
during the review period.  WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  4.47.   Apart from that, we believe Lao deserves special praise  for its preparation on the Graduation 
from LDC status. As the out of the graduation criteria expected to be achieved in 2021, Lao PDR will 
graduate from LDC in 2024. Of course , new risks and challenges will follow, but we are more than 
happy to provide te chnical assistances and help build capacity for Lao.  
4.48.   We are strengthening relations with ASEAN and south Asia countries, including Lao PDR. 
People of Lao can now apply for Visa online provided certain conditions are fulfilled. We welcome all 
kinds of coope ration and are confident that our relation will grow stronger in the future.  
4.49.   My delegation has already submitted written questions in advance, relating to various topics, 
such as its trade and investment regime, its control over African Swine Fever, and es pecially its 
regulation on VAT system and the renewal procedures of investment licences, which has huge effects 
on the operation of our businesses in Lao. We look forward to Lao 's replies in due course.  
4.50.   I would also like to take this opportunity to thank P ermanent Mission of Lao PDR for their 
active participation on topics like e-commerce and MSMEs. and Mr. Kiengkhammanh, Counselor of 
the Lao Mission who is about to leave, for his long -time friendship. We wish him all the best in his 
future endeavours.  
4.51.   Finally, we wish Lao a very constructive and successful first-time Trade Policy Review.  
HONG  KONG,  CHINA  
4.52.   I would like to extend a warm welcome to the delegation from Lao People 's Democratic 
Republic led by Minister Khemmani Pholsena. I would also like to than k Mr Jean -Marie Paugam for 
serving as the discussant and his insightful introductory remarks.  
4.53.   We congratulate Lao PDR on its robust growth in external trade, reaching USD  11.6 billion in 
2018, since its accession into the WTO in 2013. With its continued ef forts in advancing trade 
liberalisation and facilitation, we believe Lao PDR stands ready to benefit from a freer and more open 
trade regime.  
4.54.   Hong Kong, China (HKC) and Lao PDR have long been enjoying harmonious bilateral trade 
and economic relations. We always treasure Lao PDR as a valuable trading partner on its own and 
as a Member State of the Association of Southeast Asian Nations (ASEAN).  
4.55.   Our bilateral trade in goods amounted to US$31 million in 2018, representing a 16% year -
on-year incr ease. We see ample room for further growth, especially with the entry into force of the 
ASEAN -HKC Free Trade Agreement.  
4.56.   We appreciate Lao PDR 's effort in bringing the Free Trade Agreement and the related 
Investment Agreement into force in June 2019, making  Lao PDR among the first batch of ASEAN 
Member States ratifying both Agreements.  
4.57.   On Trade Facilitation, we commend Lao PDR 's efforts in fulfilling the transparency notification 
requirements under the TFA. We are also encouraged to see the country 's commitm ent in its Trade 
Facilitation Road Map for 2017 -22, which aims to implement TFA measures in an accelerated 
time-bound manner to cut down the cost of trading. According to Lao PDR, about 90% of the 
measures in the Road Map have already been implemented, covering single window, risk 
management, transparency and advance ruling etc. We congratulate Lao PDR 's good work done.  
4.58.   On tariffs, we note that the simple average applied MFN tariff for Lao PDR has been reduced 
from 11.0% in 2008 to 8.6% in 2 018, and we applaud Lao PDR 's efforts in tariff reduction and 
elimination of tariff peaks.  
4.59.   However, as at June 2019, Lao PDR 's MFN applied tariff exceeded the bound tariff for 26 lines. 
We take note of the explanation that the variations are due to changes  in tariff nomenclature and 
Lao PDR 's intention to rectify them. In this regard, we hope that the rectification will be made as 
soon as practicable.  WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  4.60.   In respect of standards and technical regulations, we commend Lao PDR for its efforts in the 
passage and im plementation of the Law on Standardization of 2014 and the alignment of most of 
its national standards with international standards.  
4.61.   Lao PDR is actively participating in the on -going structured discussions of the Joint Statement 
Initiative on Investment Fa cilitation for Development as well as the work of the other two Joint 
Statement Initiatives including e -commerce and MSMEs. We look forward to working closely with 
Lao PDR to bring forward the discussions with a view to bringing concrete benefits to develo ping and 
least-developed countries.  
4.62.   The agricultural sector in Lao PDR continues to be relatively protected as compared with 
non-agricultural sectors in terms of tariffs. We encourage Lao PDR to reduce its bound rates and to 
bring its applied MFN rate to b elow the bound rate for agricultural products.  
4.63.   We also urge Lao PDR to submit export subsidies notifications covering the periods after 
calendar year 2013 to increase transparency.  
4.64.   Services sector is the largest contributor to Lao PDR 's GDP, accounting for  a share of 47% in 
2018. Continued liberali zation of trade in services would be crucial for further economic growth and 
sustainable development. We look forward to more liberalisation measures in services trade to be 
introduced by Lao PDR.  
4.65.   HKC looks forwar d to further fostering the bilateral trade, economic and investment relations 
with Lao PDR. We would like to thank Lao PDR for its replies to our written questions, which we will 
review carefully. HKC wishes Lao PDR a very successful Trade Policy Review.  
MALAYSIA  
4.66.   We noted that since its accession to the WTO on 2 February 2013, Lao has made substantial 
efforts in developing new laws or reviewing and amending existing laws and regulations in order to 
be consistent with the various WTO agreements. The admissio n of Lao also demonstrates that the 
WTO is an inclusive organisation for Least Developed Countries (LDCs). In addition, Lao 's 
membership in the WTO has strengthened ASEAN 's position in the multilateral trading system.  
4.67.   In terms of Lao -Malaysia 's bilateral t rade, in 2018, Lao was ranked as 9th largest trading 
partner in ASEAN. As at 2018, imports from Lao into Malaysia amounted to US D 7.2 million, an 
increase of 30.2% from US D 5.5 million in 2017 while Malaysia 's exports to Lao recorded 
USD 10.1 million, decreased by 29.6% from US D 14.4 million in 2017.  
4.68.   For the period of January -August 2019, imports from Lao into Malaysia increased by 36.9%, 
from US D 4.5 million to USD  6.2 million for the period of January -August 2018. However, we note 
that there is a slight decrease in the total exports from Malaysia to Lao amounting to US D 4.9 million 
from US D 7.2 million for the same period of 2018.  
4.69.   Electronic and electronic products constitute Malaysia 's largest exports to the Lao (21.8%), 
followed by iron and steel products (13.2%), manufactures of metal (10.8%), chemicals and 
chemical products (8.8% ), processed food (7.9%). Major imports from Lao were electrical and 
electronic products (40.7%), machinery,  equipment and parts (22.2%), textiles, apparels and 
footwear (11.4%), tin (10.5%) and chemicals and chemical products (7.0%).  
4.70.   In addition, Malaysia 's investments in Lao have increased in the last few years. In 2018, 
Malaysia 's total investment into Lao amounted US D 18.1 million, a significant increase of 45.8%  
from US D 12.4 million in 2017.  
4.71.   It is estimated that around 25 Malaysian companies operating in Lao in various economic 
sectors notably banking, mining, and manufacturing as well as construction sectors apart from 
hydropower plant projects.  
4.72.   The ASEAN Free  Trade Agreement (AFTA) marked Lao 's first comprehensive regional trade 
agreement. Being a part of ASEAN, Lao has jointly signed ASEAN Plus One FTAs with China, India, WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  Japan, Korea, Australia, New Zealand and Hong Kong and is part of the recently concluded  Regional 
Comprehensive Economic Partnership (RCEP) Agreement.  
4.73.   At the multilateral front, we commend Lao 's continuing efforts to notify the WTO Members 
about developments in its trade policies as envisaged by the WTO Agreements and its intention to 
sign o n to the Information Technology Agreement (ITA) I and ITA Il agreements. Despite being a 
landlocked country, Lao has a keen interest to fully implement the Trade Facilitation Agreement 
(TFA), in order to expedite all trade and customs procedures. It has ac cepted the Protocol 
incorporating the T FA into the WTO Agreement on 29 September 2015, being the second LDC to do 
so. 
4.74.   We would also like to highlight on Lao 's active participation and contribution in supporting the 
development of new issues by co -sponsori ng the three Joint Statement Initiatives namely, the Joint 
Statement on E -commerce, the Joint Statement on Investment Facilitation for Development and the 
Joint Statement on MSMEs. This shows Lao 's openness in adapting to a changing world by being 
part of all these new initiatives.  
4.75.   To conclude, we thank the Lao 's response to our questions, and we shall examine the 
responses with great interest. We wish Lao a productive and successful First Trade Policy Review.  
UNITED  STATES  
4.76.   The United States has supported L ao PDR both through the WTO accession process and 
subsequent implementation of its WTO commitments for more than a decade, including through the 
U.S. Agency for International Development 's technical assistance. Further, the United States has 
worked closely  with Lao PDR since the launch of our 2016 Trade and Investment Framework 
Agreement (TIFA) to enhance bilateral economic relations. We appreciated the Government 's 
partnership, led by the Ministry of Industry and Commerce, in hosting our second U.S. -Lao PD R TIFA 
Joint Trade and Investment Committee meeting this past January 2019. We remain committed to 
working together to resolve bilateral concerns in order to facilitate increased trade between our 
countries, which reached USD 157 million in two -way trade in 2018.  
4.77.   The United States applauds Lao PDR 's efforts to improve its WTO commitments through its 
ratification of the Trade Facilitation  Agreement (TFA) and appreciated the updates from the 
Government on the implementation status. We recognize Lao PDR  has completed or is on track to 
complete its Category A, B, and C notifications. Full and expedient implementation of the TFA will 
facilitate trade between Lao PDR and the rest of the world, particularly for small and medium -sized 
traders.  
4.78.   The Government of Lao PDR is taking action to further develop its digital economy, including 
by joining the Joint Statement Initiative on E -Commerce in January 2019. We are working with Lao 
PDR and other members towards a high -standard outcome that would deliv er commercially 
meaningful outcomes for firms and consumers. Commitment to meaningful digital trade rules, 
including prohibiting mandatory data localization requirements and guaranteeing the unrestricted 
flow of data across borders, will ensure that small and medium -sized Lao companies benefit from 
access to innovative global digital economy. The United States also encourages Lao PDR to sign on 
to the WTO Information Technology Agreement, as noted in the Government Report.  
4.79.   The United States has been a stron g partner in Lao PDR 's efforts to strengthen intellectual 
property (IP) protection and enforcement, including by joining the Madrid Protocol in 2016 and 
amending the Law on Intellectual Property to increase transparency and expedite judicial resolution. 
We urge the Lao PDR to continue to take steps to improve IP protection and enforcement, including 
through developing judicial capacity to adjudicate IP cases and increasing public awareness of the 
importance of IP.  
4.80.   We recognize the Government 's progress in e nhancing transparency, including through the 
launch of the Lao Electronic Official Gazette website. The United States encourages Lao PDR 's to 
make every effort to comply with its notification obligations, in order to provide transparency for 
Members and tr aders, and to formalize mechanisms to facilitate stakeholder consultations. Such 
notifications and transparency endeavours will serve to further connect Lao PDR to global markets WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  and supply chains by providing traders the information they need to do busine ss, and serve to 
strengthen the proper functioning and operation of WTO Agreements.  
4.81.   In closing, our written questions reflect our interest in understanding Lao  PDR's policies in 
these and other areas, including customs, government procurement, financial se rvices, and the 
environment. The large number of our questions reflects the United States ' continued interest in Lao 
PDR's reforms and desire to strengthen our trade and economic cooperation both bilaterally and at 
the WTO.  
4.82.   We appreciate the responses to o ur questions and hope this review has been useful for the 
Government delegation.  
EUROPEAN  UNION  
4.83.   As noted by the discussant, and for similar reasons, the EU also commends Lao PDR 's efforts 
to graduate from Least Developed Country (LDC) status in 2024. Indee d, since its WTO accession in 
2013, and notwithstanding the floods in 2018, Lao PDR 's economy has been strong, mainly 
underpinned by expanding investments in large infrastructure and construction projects. Economic 
growth has resulted in a decline in pover ty levels. To reduce poverty even further, the EU calls on 
Lao PDR to step up action to improve workforce training, public education and health services, and 
to address gender equality.  
4.84.   The services sector is the main contributor to GDP, with increased act ivities in the wholesale 
and retail business, as well as banking and insurance, in particular microfinance. Tourism, a sector 
of key importance to Lao PDR 's social and economic development, expanded even if remains 
dependent on regional arrivals. Tourism p rovides high foreign exchange earnings, supports the 
expansion of other services (such as telecoms, banking, insurance and transport), and delivers 
strong employment opportunities.   
4.85.   Since its accession, Lao PDR has implemented its commitments by updating its trade -related 
and investment policies, and adopting some institutional and regulatory reform initiatives in areas 
such as access to information, e -government, anti -corruption, investment promotion, and economic 
dispute resolution). The EU sees these st eps as a demonstration that WTO accession generated 
reforms have the potential to lead Lao PDR towards further integration into global trade and a 
sustainable growth.  
4.86.   During the review period, Lao PDR improved its WTO commitments by ratifying the Trade 
Facilitation Agreement on in 2015 and notifying its Category A, B and C commitments. Lao PDR also 
signed the Madrid Protocol, which entered into force in March 2016.  
4.87.   The EU welcomes the fact the Lao PDR has joined a number of Joint Statement Initiatives 
such as for e -commerce, investment facilitation for development and MSMEs and also signed the 
Buenos Aires declaration on women 's economic empowerment and would be interested in learning 
more about any recent activities taken upon by Lao PDR in those areas of w ork and encourage 
further engagement in the discussions in the WTO.  
4.88.   Furthermore, the EU would encourage Lao PDR to consider becoming a Party of the plurilateral 
Agreement on Government Procurement in the future, notably as a new Law on Public Procurement 
was promulgated in 2017 with the objective to "secure effective, efficient, economic, transparent, 
accountable and fair use of government funds in contribution to national socio -economic 
development ". 
4.89.   During the review period, Lao PDR submitted notification s (e.g. tariffs, trade facilitation, 
customs valuation, rules of origin, import licensing procedures, SPS, subsidies, agriculture, and 
RTAs/services). However, its regular notifications (i.e. domestic support to agriculture, import 
licensing procedures, an d subsidies) were received only once during the review period. In order to 
enhance transparency, the EU urges Lao PDR to submit its outstanding notifications according to its 
WTO commitments by developing relevant inter -ministerial mechanisms and request s pecific 
technical assistance.  WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  4.90.   We also note that Lao PDR has made significant progress in improving customs procedures 
and aligning them to international standards (e.g. automation of customs offices and the introduction 
of risk management regarding inspec tion). These measures, along with other initiatives, such as 
coordinated border management and post -clearance audits, have resulted in quicker customs 
clearance.  
4.91.   The EU has an important relationship with Lao PDR. We work closely with Lao PDR in the 
context  of the EU -ASEAN Cooperation Agreement with the goal to ensure an effective environment 
for trade and investment relations. The EU is Lao PDR 's fourth trading partner, with imports from 
Lao PDR concentrated on garment and textiles. Being still a LDC, Lao P DR benefits from duty -free 
and quota -free access to the EU market under our "Everything But Arms " (EBA) preferential 
arrangement.  
4.92.   Lao PDR and the EU, together with its Member States, are also important partners in 
development cooperation. In line with Lao PDR 's development plan, cooperation focuses mainly on 
support to (1) education; (2) sustainable agriculture and food and nutrition security; and 
(3) governance, human rights and the rule of law. Our multi -annual indicative programme for 
Lao PDR allocat es € 203 million in 2014 -2020.  
4.93.   Finally, the EU would also like to highlight a few challenges, some related to the questions we 
addressed earlier.  
4.94.   First, the EU notes that Lao PDR is committed to a broader reform process aimed at improving 
the business clim ate and thus encourages Lao PDR to improve the environment for private 
investments including foreign direct investment. This requires deeper cooperation and coordination 
of the ministerial departments, among other efforts, as well as a more frequent and co mprehensive 
consultation of the private sector. We also encourage Lao PDR to strengthen its attempts to combat 
fraud, corruption and money laundering.  
4.95.   Second, Lao PDR 's economy relies heavily on natural resources (minerals, electricity and 
agriculture) and  hence, remains vulnerable and highly exposed to risks linked to both natural 
disasters and external shocks. We support Lao PDR in its continued efforts to diversify its export 
basket and to develop productive sectors with high potential for growth and job  creation.  
4.96.   On behalf of the EU, I look forward to a constructive exchange of views during this Trade 
Policy Review and wish the delegation of Lao People 's Democratic Republic the best of success.  
PHILIPPINES  
4.97.   The Philippines associates itself with the ASEAN  statement delivered by Thailand earlier, 
commending Lao PDR 's remarkable economic performance and developments in the past years and 
recognizing its contribution to the ASEAN 's community building efforts since its accession to the 
group in 1997.  
4.98.   Bilateral  relations between the Philippines and Lao PDR formally started in 1955. Since then, 
we concluded several bilateral agreements in various sectors with Lao PDR, including a Memorandum 
of Understanding in 2008 establishing the Philippines -Lao PDR Joint Commi ssion for Bilateral 
Cooperation, which seeks to facilitate consultations and cooperation in various fields like economics, 
health, education, agriculture, forestry and the environment.  
4.99.   Trade relations between our two countries show a modest but growing tre nd in the recent 
years. In 2018 alone, Philippine exports to Lao PDR almost doubled, while imports from Lao 
expanded by 350.65%. Among the top traded commodities between our countries are cigarettes 
and iron grill from the Philippines, and potassium chlori de and chemical fertilizers from Lao PDR.  
4.100.   The Philippines commends Lao PDR 's strong GDP growth, averaging over 7% annually since 
its accession to the WTO in 2013. We also recognize the four key priorities in Lao PDR 's domestic 
and foreign trade policies, w hich include (a) ensuring compliance of domestic laws with best 
international standards and practices, (b) diversifying away from over -reliance on natural resources 
and increasing labour  productivity, (c) developing and reinforcing human capital, and WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  (d) improvement of business environment and investment climate. We believe these priorities are 
on track with Lao PDR 's efforts to succeed from LDC to developing country status.  
4.101.   Further, the Philippines shares Lao PDR 's recognition of the important role MSMEs i n 
achieving inclusive growth and sustainable development, and we look forward to continu e working 
together in advancing this initiative in the WTO.  
4.102.   The Philippines submitted some advance written questions on the TPR reports, and we thank 
the delegation of Lao PDR for their prompt replies.  
4.103.   In closing, the Philippines looks forward to further enhancing the mutually beneficial 
economic relations between our countries in the bilateral, regional, and multilateral fora.  
DOMINICAN  REPUBLIC  
4.104.   We wish to congratulate Lao PDR for the constant development of its economy. According to 
the Secretariat's report, Lao PDR has been recording strong grow th in GDP. This development has 
been mainly driven by electricity generation, construction, wholesale and retail trade, information 
and communications and, to a lesser extent, financial services. It is important to emphasize that, 
according to projections for 2024, Lao PDR is on the way to graduation from its LDC status.  
4.105.   Imports continue to grow, as do exports, mainly to Thailand, followed by China and Viet 
Nam. With regard to foreign direct investment (FDI), our assessment is that these have increased 
significantly to over USD  800 million during the period under review, mainly in electricity generation, 
infrastructure, mining and electrical component manufacturing.  
4.106.   We encourage you to continue taking steps to attract foreign investment, intensifying your 
efforts to increase competitiveness.  
4.107.   We also note that the Lao PDR economy has thrown up certain challenges that affect 
economic growth and render the economy and the financial system vulnerable to shocks. In this 
regard, in order to face some of these struc tural problems, Lao PDR has adopted measures such as 
monetary and exchange rate policies, maintaining a stable exchange rate against the US dollar which 
has resulted in an appreciation of the real effective exchange rate (REER).  
4.108.   Also part of the review is Lao PDR's submission of a number of notifications to the WTO, 
including on tariffs, trade facilitation and customs valuation.  
4.109.   It is important to emphasize that in 2013 the Lao PDR Government amended the Food Law 
and in 2016 the Law on Plant Protection and Quarantine, in order to harmonize existing regulations 
with international standards and implement global best practices.  
4.110.   Furthermore, Lao PDR has been a Member of the World Intellectual Property Organization 
(WIPO) since 1995. It is also party to various t reaties administered by WIPO, such as the Paris 
Convention (1998), the Patent Cooperation Treaty (2006) and the Berne Convention (2012). After 
its accession to the WTO, Lao PDR signed the Madrid Protocol, which came into force in March  2016.  
4.111.   In conclusion,  in the field of trade facilitation, we welcome the fact that the Lao PDR 
Government has shown its commitment by ratifying the WTO's Trade Facilitation Agreement, 
adopting measures and making considerable progress as regards improving its customs procedure s 
and harmonizing them with international standards.  
4.112.   Lastly, we recognize the efforts of the Lao PDR authorities with regard to the implementation 
of this trade policy review. We wish them an effective implementation of their development plans so 
that thes e culminate in positive results for their economy and trade.  
ICELAND  
4.113.   Iceland would like to congratulate Lao for the comprehensive reforms in the legal, 
institutional and economic framework aiming at aligning the national legislation with the legal WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  framewor ks of the WTO and the ASEAN, as well as other best international practices. The reforms 
have resulted in notable progress and impressive economic growth.  
4.114.   At the Ministerial Conference in Buenos Aires in 2017 more than 120 WTO members and 
observers launched  a joint declaration on Women and Economic empowerment that aims at sharing 
best practices and working together here at the WTO to remove barriers for women 's economic 
empowerment and increase their participation in trade. We note that the report from the Secretariat 
mentions the importance of gender considerations in relation with economic development.  
4.115.   The report from the PDR makes a some very important recommendations in this respect, 
such as more engagement with the private sector and , in particular , with associations of 
Businesswomen and women entrepreneurs.  
4.116.   We congratulate PDR for joining Vientiane Declaration on Sustainable Rural Transport to 
promote inclusive, affordable, accessible and sustainable rural transport infrastructure and services, 
thus fac ilitating improved access to basic utilities and services including health and education among 
others for girls and women. Such initiative can play a key role in promoting the economic 
participation of women in rural areas.  
4.117.   The trade policy review provides an excellent opportunity to share best practices in this field. 
Iceland submitted advance written questions on the participation of women in the economy of Lao. 
We look forward to reviewing the answers to our written questions. The answers are ver y useful as 
we implement the Joint Declaration on Trade and Women 's Economic Empowerment and gather best 
practices.  
4.118.   Iceland appreciates Lao ' s engagement in WTO and their continued support for the 
multilateral trading system. We wish the delegation of Lao every success for their first Trade Policy 
Review.  
VIET  NAM 
4.119.   We would like to associate ourselves with the ASEAN statement delivered by Ambassador 
Sunanta Kangvalkulkij of Thailand.  
4.120.   At the outset, Viet Nam congratulates Lao PDR for its strong and steady eco nomic growth 
during the time period of this review. Up to now, the real GDP growth rate in Lao PDR has averaged 
close to 7.3% per year. This is due in large part to Laos diverse production, export base and general 
openness to trade, relatively liberal and investor -friendly regime. These have helped drive domestic 
reforms, create jobs, and reduce poverty and inequality.  
4.121.   At the multilateral level, Viet Nam highly commends Lao PDR 's commitment and efforts in 
deepening its integration and supporting the multil ateral trading system by, among other things, 
ratifying the WTO Trade facilitation Agreement (TFA) in 2015 and submitting a number of WTO 
notifications. It is very encouraging to highlight Lao PDR 's participation in several initiatives coming 
out of MC11, including on MSMEs, E -commerce and Investment Facilitation for Development.  
4.122.   We have noted with appreciation point 4.3 in the Government 's report that states that Lao 
PDR is committed to modernize its policy framework, promoting a transparent and liberal t rade and 
investment environment, especially within the rules -based multilateral trading system of the WTO.  
4.123.   Allow me to provide some impressive highlights about bilateral trade and investment 
relationship between Lao PDR and Viet Nam.  
4.124.   Regarding the bilatera l trade, Viet Nam shares a warm and long -standing economic 
relationship with Lao PDR, our closest neighbour . Our relations are underpinned by strong trade, 
investment and people -to-people ties. Currently, Lao PDR is the Viet Nam 's seventh -largest trading 
partner in ASEAN and fortieth -largest trading partner in the world. In 2018, the trade volume 
between Laos and Viet Nam reached USD 1.03 billion, up by 16% compared to that of 2017. In the 
first quarter of 2019, the total value bilateral reached USD 172 mil lion, up by 13.1%. These numbers 
are a clear demonstration of our strengthening economic cooperation.  WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  4.125.   In terms of the investment, Viet Nam is one of the biggest foreign investors in Lao PDR. Up 
to now, there are 413 projects of Vietnamese enterprises in Lao PDR, with a total investment of 
USD 3.9 billion. These projects cover numerous sectors, including agriculture, industries, handicraft, 
and mining, bringing mutual benefits to both of our economies.  
4.126.   The bilateral trade and investment rel ationship between Lao PDR and Viet Nam are now in 
the period of healthy and comprehensive development. We strongly believe that we will have many 
potential opportunities to advance. Therefore, to further enhance bilateral trade, we would kindly 
suggest our  countries to continue promoting the connection of the two economies, especially trade, 
energy, settlement of existing issues to make economic cooperation more effective, commensurate 
with the potentials of the two countries.  
4.127.   Sharing the long line of bord er, Lao PDR is not only Viet Nam 's geographically close 
neighbour, but also a very significant trading partner. In that sense, I would like to conclude my 
statement by wishing Lao PDR every success in its economic and social transformation and the Laos 
delegation a very productive and successful Trade Policy Review. We extend our warm appreciation 
to the team in Geneva for the cooperation and the friendly working relationship between our two 
Missions here in Geneva . 
SINGAPORE  
4.128.   First, Singapore wishes to commend Lao PDR for its commitment to free and fair trade and 
its support for the multilateral trading system. Although Lao DPR, as a LDC, faces numerous capacity 
constraints, it has worked hard to submit its notifications in many are as, including tariffs, trade 
facilitation, customs valuation, rules of origin, SPS, and RTAs. Lao PDR  was also the second LDC to 
ratify the Trade Facilitation Agreement (TFA). Additionally, we are heartened by Lao PDR 's 
commitment, as stated in its Governm ent report1, "to keep pace with developments in the global 
economy ". This commitment is illustrated by Lao PDR 's co-sponsorships of the Joint Statement 
Initiatives (JSIs) on E -Commerce, Investment Facilitation for Development and MSMEs.  Lao PDR 's 
efforts have borne fruit, as seen from its impressive GDP growth, averaging over 7% annually, s ince 
its accession to the WTO in 2013.  Going forward, we encourage Lao PDR to continue participating 
actively in, and contributing to, the global trading system.  
4.129.   Second , as a fellow member of ASEAN, Singapore welcomes Lao PDR 's efforts to deepen its 
integration with the region through timely implementation of the ASEAN Economic Community (AEC) 
Blueprint commitments. We particularly commend the work undertaken by Lao PDR i n improving 
trade facilitation in the region, including through establishing its National Trade Repository and its 
National Single Window. To harness the full potential from regional trade, we encourage Lao PDR to 
ratify (a) the ASEAN Agreement on E -Commer ce and (b) the tenth and last Package of Commitments 
under the ASEAN Framework Agreement on Services (AFAS). These agreements will enable 
companies from Lao PDR to be better positioned to reap the benefits of enhanced digital connectivity 
and services libe ralisation in the region.  
4.130.   Third, Singapore looks forward to growing bilateral trade and people -to-people ties with Lao 
PDR. Our bilateral trade is healthy, having grown over the past five years at an annual rate of 2.4% 
to reach USD  51.4 million in 2018. J ust over a week ago, the Intellectual Property Office of Singapore 
(IPOS) and the Department of Intellectual Property of Lao PDR also signed a Memorandum of 
Cooperation, which allows Singapore -granted patents to be registered in Lao PDR, thereby 
accelerati ng business access into both markets. The Memorandum of Cooperation will also provide 
greater support to innovators to expand and protect their Intellectual Property in Lao PDR, which in 
turn, will encourage enterprise and innovation flow in the country.  
4.131.   Singapore also welcomes Lao PDR 's efforts to improve its investment regime, including 
through constitutional amendments to enhance transparency and enforcement of the rule of law, 
which has strengthened investors ' confidence in the market. In 2017, Singapor e's stock investments 
in Lao PDR amounted to USD  142.4 million , representing an increase of 18.3% since 2013 . The 
number of Singaporeans visiting Lao PDR has also increased, with more than 7,000 Singaporean 
visitors in 2018, which represents a 13% year -on-year increase. We can expect this number to grow, 
 
1 "Meanwhile, in recognizing the need to keep pace with the developments in the global economy, Lao 
PDR has also co -sponsored the member -driven initiatives on the "new" issues: e -commerce, Micro, Small and 
Medium enterprises (MSMEs) and investment facilitatio n at the WTO ". WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  as more Singaporeans become more aware of the trade and investment opportunities that Lao PDR 
has to offer. In this context, it i s important for Lao PDR to strengthen international commercial 
dispute resolution to better support business needs, and Singapore looks forward to working with 
Lao PDR in this area.  
4.132.   To conclude, Singapore looks forward to further strengthening our relation s with Lao PDR, 
on the multilateral, regional and bilateral fronts. We wish Lao PDR every success for its inaugural 
TPR and congratulate them for their achievements thus far.  
CAMBODIA  
4.133.   Cambodia associates itself with the statement made by Thailand on behalf  of the ASEAN and 
Chad on behalf of the LDCs.  
4.134.   My delegation also congratulates Lao DPR for its remarkable economic growth at around 
7.3% since its successful accession to the WTO in 2013. It is notable progress in its reforms including 
its trade policy and  economy.  
4.135.   We also applaud Lao DPR for its important role in the Multilateral Trading System, especially 
for its active participations in all activities including the works that are important and priority to 
LDCs. We commend and thank the delegation of Lao s DPR in Geneva led by 
H.E. Ambassador  Kham -Inh and his excellent team for their good cooperation and hard works. We 
also commend Lao PDR for its role in contributing to building ASEAN 's community and engaging in 
ASEAN negotiations.  
4.136.   For the bilateral relat ion, the friendship and cooperation between Cambodia and Laos PDR 
have developed smoothly since the establishment of our diplomatic relation in 1956. Cambodia and 
Lao PDR are sharing border have similar tradition and standard of living can compare as a sib ling. 
Recently, we had agreed to enhance cooperation in education, information, agriculture, tourism, 
culture, health, post, telecommunication, electricity and consular services.  
4.137.   Cambodia and Lao DPR have committed to intensifying coordination and coopera tion in 
regional and sub -regional fora such as in ASEAN, CLMV, ACMECS, GMS, Mekong Cooperation and 
the framework of the United Nations through promoting the collaboration, information sharing and 
mutual support to ensure peace, security and sustainable dev elopment.  
4.138.   Moreover, the two nations have long been working hard to promote investment and trade 
cooperation through construction of the new international border checkpoint. The investment, 
exports and imports of both sides have remarkable growth in the rec ent years.  
4.139.   To increase the exports including to other markets and attract more investment, the 
preferential scheme under this organization is a must. The importance of the special and differential 
treatment and technical assistance are also needed.  
4.140.   My del egation joins other wishing Lao DPR for a smooth graduation from LDC as its plan. For 
their development objectives, we call on members and development partners to provide necessary 
assistances to both, transition and grace periods, to Lao DPR and to other graduated LDCs.  
4.141.   Finally, my delegation wishes Lao DPR a successful first TPR. 
CHAD  ON BEHALF  OF LDCS 
4.142.   Lao PDR has recorded real annual GDP growth of about 7.3% since its accession to the WTO 
in 2013. As a result of this regular growth, GDP per capita has ri sen to nearly USD  2,600 and poverty 
levels have declined to 20%. This has been combined with efforts to control inflation, and has 
contributed to maintaining a stable macroeconomic environment.  
4.143.   Investments in the services sector, including electricity prod uction, the retail trade, 
information and communication technologies (ICTs), construction and financial services, have 
boosted economic growth in Lao PDR.  WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  4.144.   This approach has favoured economic diversification, for which we congratulate the Lao PDR 
Government . These initiatives will favour long -term economic growth and will contribute to further 
poverty reduction while expanding the labour market and creating new trade opportunities.  
4.145.   We welcome the efforts of Lao PDR to conform to WTO rules, for example with regard to 
notifications. Moreover, Lao PDR has simplified its policy on licensing procedures, and this has been 
notified to the WTO. In addition, we wish to congratulate Lao PDR for the adoption at national level 
of elements of the WTO legal framework , such as the Agreement on Safeguards, and anti -dumping 
and countervailing measures.  
4.146.   Lao PDR has also shown a keen interest in promoting international trade at the regional level 
by defining its interests within the ASEAN bloc and seeking to actively incre ase trade with its 
neighbours.  
4.147.   During the period under review, Lao PDR trade policy focused on four main areas, namely: 
ensuring the conformity of domestic laws with international standards and best practices; 
diversifying the economy away from natural resources and increasing labour productivity; 
developing and strengthening human capital; and improving the climate for business and 
investment.  
4.148.   By continuing these efforts, we wish to underline the commitment and action of Lao PDR 
towards achievin g the 2030 Sustainable Development Goals (SDGs) in the interests of its population 
and the environment.  
4.149.   We would like to congratulate Lao PDR for its contribution to the matter of graduation from 
LDC status. Lao PDR has proposed constructive strategies aim ed at establishing an institutional 
framework to enable a smooth transition for LDCs in the graduation process.  
4.150.   Chad, on behalf of the LDC Group, congratulates Lao PDR on its ongoing efforts and initiatives 
to develop its economy and trade, and wishes it g reat success in its future work as a dynamic player 
in the multilateral trading system, fully involved in the review of its trade policy.  
MYANMAR  
4.151.   The friendship between Lao PDR and Myanmar are long standing due to our geographical 
situation, religion, cult ure, traditions and beliefs. Both of our countries are trying to develop existing 
friendship and cooperative ties by participating in global, regional and bilateral agreements.  
4.152.   In review of bilateral trade between Myanmar and Lao PDR, although the volume o f trade is 
still insignificant, we can see the gradual growth every year  
4.153.   and there are a lot of potentials of development as well. In the area of investment, as of 
2019, September, Myanmar would like to thank Laotian business organization for investing in 
Myanmar and stand as the 48th investor country of Myanmar. Since Myanmar is trying to liberalize 
its trade and investment related measures, it has improved its rank of Ease of doing Business 
Indicator in the year 2019. Therefore, we would like to welcome m ore investors from Laos and 
friends all round the world.  
4.154.   Finally, as we have witnessed the commitments and reforms made by Lao PDR and success 
and the gains of multilateral trade it has reaped throughout her membership, Myanmar would like 
to wish Lao PDR a  continuous progress and this T PR a successful milestone.  
INDONESIA  
4.155.   Let me begin by welcoming the delegation of Lao PDR to their first Trade Policy Review. And, 
Indonesia associates itself with the ASEAN statement delivered by Thailand .  
4.156.   This TPR has prov ided a forum for Indonesia to understand further on how Lao PDR 
administers international trade, and has also provided an important platform for Indonesia to explore 
further avenues in improving bilateral trade relation with Lao PDR.  WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  4.157.   We view that such an exploratory discussion on finding ways to improving bilateral trade, is 
important, especially given that, by the numbers, bilateral trade activities between Indonesia and 
Lao PDR has been declining, despite our cooperation in various regional forums such a s the ASEAN, 
ASEAN plus, and beyond.  
4.158.   Indonesia is of the view that there are rooms yet to be explored in order to have in place a 
better level of bilateral trade. We view that our discussions leading up to this TPR meeting has 
provided insights into this joint effort for improvements in trade relations.  
4.159.   Indonesia encourages Lao PDR to improve on its regular notifications, which during the 
review period, the WTO has only received once. Indonesia also encourages Lao PDR to expedite the 
promulgation of the l aw on anti -dumping and countervailing measures, so as to facilitate any 
application of these measures in the correct manner.  
4.160.   Indonesia compliments Lao PDR for its active role in coming up with regulations that facilitate 
trade, amongst others, by putting in place customs procedures that are in line with international 
standards.  
4.161.   Indonesia also commends Lao PDR for having in place an investor  friendly FDI regime, which 
have paved the way in facilitating the growth in various sectors of the economy. Indonesi an also 
notes that all bound tariff is also ad valorem, which makes Lao PDR 's import regime predictable.  
4.162.   Let me conclude  by wishing the delegation of Lao PDR a successful process in the remaining 
phase of this TPR.  
BRUNEI  DARUSSALAM  
4.163.   As a close neighbour, and even closer friend, Brunei Darussalam and Lao PDR have worked 
together on many different occasions.  
4.164.   Bilaterally, we have cooperation in education, finance, defence, sports and youth, as well as 
people -to-people contacts. Regionally, we have worked together on many efforts towards ASEAN 's 
economic integration, both internally and externally in the negotiations of our many trade 
agreements.  
4.165.   On the multilateral level , Lao PDR has been similarly a reliable partner and friend. It is clear 
that we  share similar perspectives on trade liberalization and believe strongly in the importance of 
a rules -based multilateral trading system.  
4.166.   The benefits of this can be seen by the exceptional growth Lao PDR has experienced in the 
period under review; averagin g more than 7% real GDP growth per year. The rise in FDI inflows of 
over USD 800 million has been as a result of the improvements it has made to its trade and 
investment framework, including the increase in transparency and legislative frameworks, as well 
as the predictability of its trading regime with 100% of its tariffs being bound. As a result of all these 
efforts, the population under the poverty level in Lao PDR is only less than 20% in 2018.  
4.167.   The Lao PDR Government also believes in dialogue and engage ment with its private sector, 
holding consultations with its national chambers of commerce and industry, which consists of both 
local and foreign enterprises, and by setting up a Lao Business Forum with regular activities 
throughout the year. This sentimen t is one Brunei also shares, and early in this year this was 
illustrated by the signing of a Memorandum of Understanding in Information Sharing between the 
Brunei National Chambers of Commerce and Industry and Lao PDR 's National Chambers of 
Commerce and In dustry.  
4.168.   Moving forward , we hope that Lao PDR maintains its positive initiatives, and encourage them 
to continue their structural reform efforts, particularly in addressing their informal economy, to 
ensure the effectiveness of the government 's policies. Br unei Darussalam is optimistic that Lao PDR 
can achieve its aim of graduating from a Least Developed Country to a Developing Country in 2024.  WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  4.169.   In closing, Brunei Darussalam would like to take this opportunity to recogni ze the 
contributions of Ambassador Kha m-Inh Khitchadeth and his capable team in Geneva, and we wish 
Laos all the best for a successful inaugural Trade Policy Review.  
INDIA  
4.170.   Lao PDR acceded to the WTO in 2013, since then the GDP of Laos has registered a strong 
growth averaging over 7 % annually. The important contributors to the economy include electricity 
generation, construction, investments in infrastructure and services sector. However, as a 
landlocked Least Developed Country, Lao PDR also face various challenges which include growi ng 
fiscal deficit and external debt. , structural constraints and vulnerabilities in the economy and 
addressing social and human indicator. We commend the Government of Lao PDR for the various 
measures it has taken to address these challenges including prud ent macro -economic management, 
various reforms and the strategies in their 8th National  Socio -Econom ic Developmental plan to 
promote economic diversification and attract investments.  
4.171.   India and Lao share warm, close and friendly relations. Under India 's "Look-East Policy " our 
ties have further strengthened and deepened in recent years with Lao PDR and all other ASEAN 
countries. Trade and economic ties are an important component of our relations. India 's trade with 
Lao PDR stood at USD 193.63 million in 2017 -2018, which includes imports amounting to 
USD 168 million from Lao PDR. Though modest, there is considerable potential for growth in trade 
between both countries in areas including pharmaceutical, electrical machinery, metals and 
minerals, and agriculture products.  
4.172.   Under our Development Partnership Cooperation with Lao, India is assisting Laos in areas 
including information and communication technology, agriculture, transmission lines, irrigation and 
human resource development. These include following projects under lines of credit:  
• Various projects to assist in the energy sector - including construction of 115 KV 
Transmission Line from Ban -Na in Champassak Province to Attapeu; Pakson -Jaingxai -
Bangyo Transmission Line; Nam Song 7.5 MW Hydropow er Project; 230 KV Double Circuit 
Transmission Line from Nabong to Thabok; Extension of Thabok & Nabong substations to 
230 KV; and Nam Gnung -Laksao, 115 KV Transmission line and substations.  
• irrigation schemes in Champassak Province comprising of 3 co mponents: (a) Conversion of 
diesel to electric driven pump sets, (b) installation of large pump sets and (c) six large 
irrigation schemes and irrigation projects in three provinces which has components for 
Conversion and commissioning of diesel driven pumps int o electric pumps and Irrigation by 
gravity from Nam Nga, Nam Xang and Houay Yang Noi Dams.  
• Project for upgrading of Agricultural College in Champasak province.  
4.173.   India is also actively engaged with ASEAN countries in the area of capacity building and 
human r esource development and slots and scholarships are regularly offered to a large number of 
professional from Lao PDR under India 's economic and technical cooperation programme.  
4.174.   India has also always been a supporter of special dispensation for LDCs and prov ides 98.2% 
tariff lines as duty free or preferential access to LDCs with applicable tariff on all cotton lines at zero. 
We have also provided one of the most liberal packages for services waiver, including complete 
waiver of visa  fees. 
4.175.    To conclude, we loo k forward to working with the authorities of Lao for further expanding 
and harnessing the potential of our trade and investment ties for mutual benefit . India also  looks 
forward  to actively engage with all  the ASEAN countries under its Look -East Policy to strengthen our 
relations in all areas . 
BRAZIL  
4.176.   Brazil is pleased to take part in Lao PDR first Trade Policy Review since its WTO accession.  WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  4.177.   I would like to start by praising Lao PDR for the positive performance in terms of maintaining 
strong GDP growth, whi ch has been increasing by an annual average rate of 7.3% since its accession 
to WTO in 2013.  
4.178.   Lao PDR has made great strides towards greater levels of development and is well on its way 
to meet the goal of graduating from Least Developed Country status by 2 024 and becoming a 
middle -income country by 2030.  
4.179.   We recognize, nevertheless, that in recent years there have been challenges in relation to 
the maintenance of healthy public finances. According to the Secretariat, during the years within 
this review the p ublic debt has increased from 56% of GDP in 2013 to 61% in 2017 and is expected 
to reach 65% in 2018.  
4.180.   Moving on to WTO related issues, Brazil notes with satisfaction that Lao was the second LDC 
to ratify the Trade Facilitation Agreement in 2015. It has als o been working towards the 
implementation of a single window.  
4.181.   Besides, we are pleased to note the changes in Food Law and Law on Plant Protection and 
Quarantine to bring these regulations up to international standards and implement global best 
practices.  
4.182.   With regards to food safety and animal and plant health, we see with great satisfaction that 
the basic principles of the SPS Agreement are well incorporated into national regulations. Codex 
standards apply to both imported and domestically -produ ced goods.  
4.183.   These are all very positive initiatives, which should be commended.  
4.184.   However, a worrisome aspect we wish to highlight, tariff protection for agricultural products 
remains higher than that for non -agricultural products, making it more difficult on  average for 
agricultural exports to get into Lao PDR. As an important exporter of agricultural products Brazil 
encourages Lao PDR to reconsider its current tariff levels on agricultural products.  
4.185.   Turning to the bilateral front, Brazil -Lao trade amounted t o USD 4.6 million in 2018. Bilateral 
trade is concentrated on tobacco, on the Brazilian side, and on electrical devices, on the side of Lao 
PDR. 
4.186.   There is room for potential growth and improvement, especially in order to obtain a more 
balanced mix of import s and exports for both countries. In this regard, Brazil notes that a dialogue 
has been established between the respective sanitary authorities in order to collaborate and agree 
on the terms of sanitary certificates for live cattle, bovine genetic material  as well as meat and 
poultry.  
4.187.   In closing, we commend Laos PDR for its efforts towards development and we would like to 
wish great success.  
4.188.   Brazil stands ready to cooperate for closer bilateral relations and a stronger multilateral 
system.  
AFGHANISTAN  
4.189.   My delegation commends the Government of L ao PDR for presenting its comprehensive trade 
policy report. We are encouraged to note the positive development and progress L ao PDR has made 
to improve and upgrade its institutional and legal frameworks through condu cting intensive reforms 
and adopting its doing business practices.  
4.190.   The L ao PDR first Trade Policy Review as an LDC, landlocked and recently accessed WTO 
Member is of systemic interest for my delegation in order to learn lessons from that and adopt our 
WTO-related activities, in particular, the preparation work for Afghanistan 's first TPR meeting, 
accordingly. It is also a matter of personal interest for me as my role of Chair of the G7+ WTO 
accession Group to see how international trade integration through  WTO accession -related reforms 
and trade liberalization have helped an LDC and post conflict country to prosper and sustain peace WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  and stability domestically , and become an active and positive player at the regional and international 
levels.  
4.191.   We are encoura ged to note that L ao PDR experienced an economic growth rate of about 7% 
during the review period , a rise of FDI, reduction of  the poverty rate from 46% in 1993 to 19% by 
2017, undertaking intensive program mes to diversify its economy , conducting further r eforms, 
streamlining its government administrative procedures on business registration, customs clearance 
and foreign investment procedures.  
4.192.   On top of all  that, we are pleased to learn Lao PDR's  ambitious plan to graduate from LDC 
status by 2024 and calling upon the WTO Membership , the Secretariat, and development 
Organizations to support L ao PDR on its journey to a successful achievement of this goal.  
4.193.   By saying that, I end my statement by wishi ng the esteemed delegation of L ao PDR a very 
successful and productive Trade Policy Review.  
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  5  REPLIES BY THE REPRE SENTATIVE OF LAO PDR  AND ADDITIONAL COMM ENTS  
5.1.  Allow me to express my great satisfaction with the progress of this meeting which will help us 
to further implement our reforms and to integrate into the world economy for the benefit of the 
sustainable development of Lao PDR. We have since Monday received some additional questions. 
We will answer these questions in full within the next month; they ar e very technical and require a 
careful thought to respond to them. At this point, I would like to make a few general comments 
about your generous interventions made on Monday.  
5.2.  My sincere gratitude goes to the Discussant and the Members of the WTO who have  
constructively participated in the first Review of our policies for the understanding and compassions 
they have shown for our development efforts and the many encouraging comments we have 
received. This has reflected that our hard work since the WTO acces sion in 2013 has paid off and 
that we should so continue, which we will do. We also appreciate the more critical questions and 
suggestions, which have shown the interest of WTO Members to assist our Government in the pursuit 
of our further efforts. Moments  like this strengthen our belief in the inclusive multilateral trading 
system of which the WTO is the guardian: in this, the TPRM is a forum where peers exchange their 
assessments of policies in a mutually respectful way taking into account the specificiti es of each 
Member and with the purpose of improving the wellbeing of the people through effective and efficient 
policies for a sustainable development of all the Members of this community.  
5.3.  Lao PDR has answered Members ' questions and we will continue to pro vide additional 
information as I mentioned earlier. At this point, we take notes of Members ' concerns, namely 
meeting the WTO notification requirements, improving the business environment and continuing 
active involvement in the work of the WTO. We think t hese points are fundamental. We fully intend 
to share with our domestic stakeholders with the view to continuing progress in these areas.  
5.4.  I think we are largely in agreement about what Lao PDR still has to accomplish and the priorities 
in our reform effor ts. The remaining tasks are demanding and cover a large number of fields and we 
are intent to implementing them. However, remember Lao PDR is an LDC. In this respect, we do 
aim to graduate from LDC status in 2024, but we remain constrained by our limited c apacity. Just 
as we needed your help to get as far as we did during this Review period, we will need your continued 
cooperation and assistance to accomplish the tasks, which we have set for ourselves in the coming 
years. There is a need to strengthen cooperation with our partners, to ensure that our requests for 
assistance are well prepared, used efficiently and lead to the expected results and benefits. Our aim 
is to make the LDC graduation smooth and avoid a slowdown in our cooperation wit h other Members.  
5.5.  In this respect, I would like to invite the WTO Secretariat to come to Vientiane to present the 
results of the Review to the various stakeholders and to start a dialogue with our development 
partners. We will, together with the Secretariat , prepare those meetings and draft project briefs for 
the most urgent support we require. We hope those who are having representation both in Lao PDR 
and in Geneva will be able to indicate concrete fields of assistance they are willing to consider so 
that we can start the dialogue to implement the reforms and the accompanying assistance as soon 
as possible.  Thank you.  
DISCUSSANT  
5.6.  Firstly, I would like to say that I have heard a lot of support, listening and constructive dialogue 
during this review of Lao PDR 's trade policy. I think this is very encouraging in relation to future 
deadlines, especially those that I mentioned on the first day: namely, graduation from LDC  status.  
5.7.  The expectations voiced by Members are also clear. They are often very technical , but they are 
essentially about maintaining efforts to ensure transparency in the context of this Organization's 
disciplines and to improve the business environment for investors, particularly regarding customs 
clearance procedures and investors' licences. As you know, the moment of truth for those efforts 
will not occur in this room; it will happen a few  hundred metres from here in a few years' time, when 
UNCTAD reports figures for foreign direct investment in Lao PDR.  
5.8.  Madam Minister, a trade policy review is a bit like therapy: in reality you already know 
everything yourself and the discussion takes place just to formalize things. Just as you have been WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  able to lead your country into this Organization, we are fully confident that you will be able to lead 
it out  of the LDC category, and we wish you the best of luck.  
UNITED  STATES  
5.9.  The United States thanks Minister Khemmani Pholsena and the Lao delegation for their 
participation in their first Trade Policy Review. We also thank Ambassador Paugam for his insightful 
remarks and the Secretariat for their report and excellent work.  
5.10.   The United States appreciates Lao PDR 's responses to our questions, which were helpful for 
our understanding of Lao PDR 's economic reform efforts since accession to the WTO. We encourage 
Lao PDR's continued efforts to increase transparency to ensure all entities and government agencies 
make draft regulations available for notice and comment for both Lao PDR 's domestic and 
international stakeholders. Efforts to promote regulatory quality throug h greater transparency, 
objective analysis, accountability, and predictability can facilitate international trade, investment, 
and economic growth.  
5.11.   The United States formally submitted a few follow -up questions related to our interests in 
transparency and trade policy formulation and will review future responses closely.  
5.12.   The United States remains committed to continued engagement with the Lao PDR bilaterally 
through our Trade and Investment Framework Agreement, particularly in the areas of automotive 
standa rds, electronic payments, digital trade, and intellectual property.  
BANGLADESH  
5.13.   Thanks for offering me the floor. The delegation of Bangladesh appreciates the Government 
of Lao PDR and the delegation in Geneva for the successful review of its trade policy. The Trade 
Policy Review exercise is a commitment and obligation as a Member of the WTO. Today, we are 
witnessing an LDC member undergoing its first Trade Policy Review.  
5.14.   My delegation also would like to commend the discussant, H.E. M. Jean -Marie Pau gam, 
Ambassador and Permanent Representative of France, for his analysis of the report, as well as the 
WTO Secretariat , specially the TPR team. 
5.15.   Bangladesh attaches great importance to the multilateral trading system to achieve 
socioeconomic goals. Since it s accession in 2013, Lao PDR is trying its best for greater integration 
to multilateralism. The Government of Lao PDR has initiated strategies and program mes to overcome 
challenges it faces as an LDC and is moving fast towards graduating from the list of L DCs. We are 
happy to state that Bangladesh is also on its way to graduation during the same expected time with 
Lao in 2024. Bangladesh would like to see a continuation of preferential market access and support 
for capacity building for all graduating Membe rs. WTO Members , therefore , need to develop a special 
programme for newly graduated countries for ensuring smooth transition and preventing any 
setback.  
5.16.   My delegation also notes that, with Bangladesh, Lao is a member of the ASEAN Free Trade 
Agreement (AFTA ) which offers common rules of origin (ROOs), with a minimum local value content 
requirement of 45% of the f.o.b. value (35% for LDCs). We have very good bilateral relations. Our 
Honourable Prime Minister visited Lao in 2012. Bangladeshi medicine, light en gineering, cement, 
ceramic, leather, steel, and agro -products have good demand in Lao. We hope that our fullest 
utilization of the Asian Highway Network in  the future will help address the issues of high cost of 
ground transportation in Lao.  
5.17.   Lao PDR is al so advancing towards attaining the SDGs and Bangladesh calls on partners to 
provide technical and financial support to Lao as to achieve these goals in order to promote 
sustainable economic growth. My delegation calls on partners to help Lao collectively a ddress the 
issues of strengthening supply side capacities, diversification of products and export market, value 
addition, accessing the opportunities of digital economy, and IT enabled service economy for better 
performance.  WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  5.18.   Bangladesh,  once again , congrat ulates the delegation of Lao in Geneva, the visiting delegation 
from Vientiane and the Government of Lao PDR for a successful completion of its first TPR. 
EUROPEAN  UNION  
5.19.   Let me first thank the delegation of the Lao People 's Democratic Republic for the 
comp rehensive overview presented last Monday and this morning of the main developments 
occurred during this first -review period and for addressing some of the issues we raised on the first 
day and in our advance written questions.  
5.20.   The EU appreciates the timely  replies provided to all the EU questions. We have submitted 
three follow -up questions related to Lao PDR 's published  information, law and regulation on public 
procurement, and application system on investment licences. We look forward to the replies in du e 
time. 
5.21.   Furthermore, in our advance question s we have asked the Lao PDR to share with us the list 
of notifications to be completed as this information could be useful to table the specific assistance 
needs in order to improve Lao PDR 's compliance with noti fication obligations. We note that the list 
of required notifications has not been attached to Laos ' reply to our question and we would welcome 
receiving it  when possible.  
5.22.   This review has been useful for better understanding of Lao PDR 's trade policy and m easures. 
The EU  hopes that Lao PDR will duly take into account some of the challenges highlighted by 
Members.  
5.23.   We welcome that Lao PDR is committed to a broader reform process aimed at improving the 
business climate and regulatory environment and we encourage Lao PDR to continue these and other 
important reforms  that the EU is ready to assist.  
CHINA 
5.24.   China would like to commend again Lao PDR 's unremitting efforts to advance domestic 
reforms and actively integrate into the world economy after its WTO ac cession.  
5.25.   The experience of Lao PDR over the past six years has set a good example for the LDCs, and 
reflects the value of the rules -based multilateral trading system.  
5.26.   China cherishes the traditional bilateral friendship with Lao PDR. We stand ready to take  the 
10th anniversary of our Comprehensive Strategic Partnership as a new starting point and further 
promote the long -term, healthy, and stable development of bilateral relations.  
5.27.   We thank the delegation of Lao PDR for the replies to our advance written qu estions, and look 
forward to receiving the replies to our follow -up questions.  
5.28.   The first trade policy review is never an easy task. We congratulate the delegation of Lao PDR, 
led by Minister Khemmani Pholsena, for the successful review, and wish the delega tion a safe journey 
back home.  
CAMBODIA  
5.29.   My delegation joins others to express our congratulations to Lao PDR for their successful first 
Trade Policy Review. We thank H.E. Khemmani Pholsena for the remarks and the entire delegation 
for their hard work.  
5.30.   Camb odia is committed to working closely with Lao PDR, especially with Ambassador Khaminh 
Khitchadeth on the important issues and priorities of LDCs under this Organization.  
5.31.   I would also like to commend Ambassador Jean Marie Paugam of France for his good role as 
the discussant, and congratulate the WTO, especially the Trade Policy Review Division, for the 
successful preparation of this review.  WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  5.32.   Finally, we commend and congratulate you for your able leadership to steer this review a 
smooth and successful outcome.  We wish the Lao delegation a safe trip and good journey back 
home.  
H.E.  MRS. KHEMMANI  PHOLSENA  (HEAD  OF DELEGATION)  
5.33.   My delegation leaves Geneva encouraged and with renewed energy to tackle the challenges 
in front of us. We do that in the full knowledge that we are not alone and that we can count on the 
cooperation of our fellow Members in the WTO by profiting from their  experience and inputs, as well 
as their assistance.  
5.34.   Allow me to repeat my invitation to the WTO Secretariat to organize the meeting in Vientiane 
to present the results of this review to our stakeholders in the first quarter of 2020. This will be a 
critical step to prioritizing and organizing the technical assistance that we will still welcome from you 
all, including in the important areas such as notifications.  
5.35.   Finally, I would like to repeat my great appreciation to the WTO Secretariat, to you, 
Discussan t, and Members for your interventions and support. And, above all, to you, Mr. Chairman, 
for your efficient and friendly handling of this meeting.  
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  6  CONCLUDING REMARKS B Y THE CHAIRPERSON  
6.1.  The first Trade Policy Review of Lao PDR has offered us a good opportunity to deepen our 
understanding of recent developments in, and challenges to, its trade, economic, and investment 
policies. Since its accession in 2013, Lao PDR 's initiatives to further integrate into the Multilateral 
Trading System and take advant age of the opportunities it offers have been greatly appreciated. 
Indeed, the about 200 advance written questions submitted by 12 Members and the 23  delegations 
that took the floor during the first day underline the importance attached by Members to Lao PD R's 
trade and investment policies and practices.  
6.2.  I would like to thank the Lao PDR 's delegation, led by the Honourable Minister of Industry and 
Commerce, Mrs. Khemmani Pholsena, and Ambassador Khaminh Khitchadeth,  for their active 
participation in this ex ercise. Also, I would like to thank our discussant , Mr. Jean -Marie Paugam, 
Permanent Representative of France to the WTO, for his insightful remarks, and all the delegations 
that took the floor for their valuable contributions to this Review.  
6.3.  Members comm ended Lao PDR for its strong economic growth which is setting the ground for 
graduation from LDC status in 2024, and for enacting several economic policies to address structural 
vulnerabilities and weaknesses, including policies focused on hydropower devel opment and 
attracting foreign investment in energy, natural resources and tourism. While noting steps taken to 
promote fiscal consolidation through modernization of tax systems and reducing state payroll and 
operating expenses, Members expressed concern re garding the level of fiscal deficits and public 
debt. Members were also appreciative of Lao PDR 's increased trade openness as depicted by the 
ratio of trade in goods and services to GDP increasing since Lao's accession. Members praised Lao 
PDR's policy, re gulatory and institutional initiatives to promote and improve the foreign investment 
and business environments despite remaining challenges in certain areas (e.g. FDI restrictions, 
border -clearance procedures and high ground transportation costs). Members encouraged Lao PDR 
to continue to pursue an ambitious economic reform agenda, focused on diversifying the economy 
and increasing its resilience and productivity, through reform initiatives in areas such as access to 
information, e -government, anti -corrupti on, investment promotion, and economic dispute 
resolution. Members also welcome d the Lao PDR Government 's focus on developing its human capital 
through inclusive education.  
6.4.  Members praised Lao PDR for its support and active participation in the Multilater al Trading 
System. It was commended for expanding its WTO commitments through the ratification  of the 
Trade Facilitation Agreement (TFA) , the second LDC to do so, and the timely submission of category 
A, B and C notifications of the TFA. Its support for th e Joint Statement Initiatives on Investment 
Facilitation for Development, on Micro, Small and Medium -sized Enterprises, and on e -Commerce, 
and the Declaration on Women and Trade resulting from the 11th Ministerial Conference in Buenos 
Aires were largely ap preciated. Lao PDR indicated that it hoped to become a member of Information 
Technology Agreements (ITA) 1 and 2 by the first half of 2020. It was encouraged to consider joining 
the WTO Government Procurement Agreement. Members noted Lao PDR 's record of WT O notification 
and welcomed improvements in this area where more technical assistance could be required to 
address persisting capacity constraints. Members noted Lao PDR 's constructive role and priority to 
deepen the integration within ASEAN and to expand its agreements with other partners in order to 
compensate from the loss of preferences upon LDC graduation. Members also spoke on the smooth 
transition upon LDC graduation and expressed support to Lao in this effort.  
6.5.  Members commended Lao PDR 's efforts in tariff reduction and elimination of tariff peaks. They 
also appreciated that the entire customs tariff was applied on an ad valorem  basis and was bound, 
making the import regime predictable. However, concerns were raised regarding the MFN applied 
tariff exceeding the bound tariff for 26 lines and noted that these would be rectified. Members were 
appreciative of Lao PDR 's ratification commitment in its Trade Facilitation Road Map for 2017 -22, 
which aims to implementing TFA measures in an accelerated time -bound manner to cut down the 
cost of trading, including significant steps already in place such as the implementation of the 
electroni c National Single Window for customs clearance and duty payment, risk management, 
transparency and advance ruling. Lao PDR was commended for its efforts in the passage and 
implementation of the Law on Standardization of 2014 and the alignment of most of it s national 
standards with international standards, it was also encouraged to expedite the promulgation of the 
law on anti -dumping and countervailing measures. While noting efforts to strengthening intellectual 
property protection and enforcement, including  by joining the Madrid Protocol in 2016 and amending 
the Law on Intellectual Property, Members invited Lao PDR to continue to take steps to improve IP WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  protection and enforcement, including through developing judicial capacity to adjudicate IP cases 
and inc reasing public awareness of the importance of IPR protection.  
6.6.  Some other issues were also raised by certain Members. They included  the relatively higher 
protection of the agricultural sector and the prospects for further liberalization in trade in services .  
6.7.  The above are some of the key issues that had emerged in our discussion. I hope that the 
Lao PDR delegation will take into account and further reflect on these issues and on the many 
constructive comments, both broad and detailed, that it has received d uring this Review. Finally, I 
would like to thank all those that participated in our discussion, and I look forward to receiving the 
answers from Lao PDR to any outstanding questions within one month, at which point the Review 
will be successfully conclude d. 
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  7  ADOPTION OF TPRB 'S ANNUAL REPORT FOR 2019  
7.1.  I would now like to ask delegations to consider the TPRB 's Annual Report for 2019, which was 
distributed on 25 October 2019 in document WT/TPR/W/172.  
7.2.  The Secretariat has not received any comments from delegati ons. I therefore trust that this 
version could be considered the final one.  
7.3.  But before giving the floor to delegations who would like to speak, I want to inform you that a 
couple of typographical errors will be corrected in the Report. These concern the Ta bles in Annex II 
and are the following: the total number of reviews of Bangladesh are 5 (not 4), and of Canada 11 
(not 5). Also, Bangladesh will be indicated as an LDC in both Tables.  
7.4.  The floor is now open if any delegation would like to speak  or make any other comments or 
correction s. 
UNITED  STATES  
7.5.  The United States appreciates the opportunity to comment on the 2019 draft in your report. 
The United States continues to place high importance on the work of the TPRB, including trade policy 
reviews. The TPR pr ocess is fundamental to a core tenet of the WTO transparency.  
7.6.  Before commenting on the report, I want to first note the consistently high-quality  work of the 
Secretariat in drafting the Secretariat report for each TPR meeting. These are valuable reports, a nd 
the information they contain is useful long after the TPR meeting has ended.  
7.7.  Turning to the 2019 draft report, the United States would like to note changes from the last 
year's annual report to footnote 1. Specifically, footnote 1 in last year 's annual report listed Members 
as "to be reviewed ", while the draft report lists two countries as "candidates for review " in 2021. We 
question the need to change the language from the footnote in the 2018 annual report to list these 
two Members as candidates for a TPR. Both Members are obligated to undergo a TPR in 2021, 
according to review schedules set forth in the WTO Agr eement, as are many other Members. We 
request that footnote 1 revert to the previously agreed text contained in the 2018 annual report.  
7.8.  And, turning briefly to paragraph 7, the United States would like to thank the Secretariat for 
the description of the fo llow-up workshops discussing the outcome of TPRs with certain Members 
and their domestic stakeholders.  
7.9.  In reviewing the paragraph, we noted a few changes from the paragraph in the 2018 annual 
report, and we would like to ask for clarification so that we accurately understand the Secretariat 's 
work. First, in 2018, the paragraph stated that the Secretariat organizes follow -up workshops at the 
request of the Member concerned. In this year 's draft report, the language has been shortened to 
"on request ". Coul d the Secretariat please clarify if it organizes these workshops only at the request 
of the Member concerned? Second, in this year 's draft report, paragraph 7 clarifies, for the first time, 
that these workshops are available to all developing countries, in  particular LDCs. We note that the 
TPRB rules of procedure WT/TPR/6/Rev.4 do not limit these workshops to developing countries. Has 
there been a change in the scope of the Secretariat 's programme? If so, when and how was that 
change made?  
7.10.   Finally, we woul d like to ask for additional transparency from the Secretariat on this area of 
its work, for example the views it expresses regarding the steps that a government may take to 
address concerns expressed by other Members in its TPR meeting. To be clear, we ar e not asking 
for these details to be added to this draft report, but in a separate document to be issued by the 
Secretariat. Such information would help Members to better understand the Secretariat 's efforts and 
messaging in this important area.  
7.11.   Again, the  United States would like to thank the Secretariat and all the Members that have 
submitted their TPRs to date. Your significant efforts continue to keep the TPR process relevant and 
useful for governments and stakeholders around the world.  WT/TPR/M/394 • Lao People 's Democratic Republic  
 
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  7.12.   We note the upco ming thirtieth anniversary of the TPRM on 27 November, and look forward 
to Member discussions regarding the past 30 years and the challenges ahead.  
7.13.   We hope that our comments will be useful for Members in the spirit of keeping this process 
relevant for the  next 30 years . 
CHAIRPERSON  
7.14.   We take note of the intervention, and the Chair will revert to the 2018 language of the footnote 
and also address, through a separate letter, the clarifications required and make some minor 
adjustment on paragraph 7 as well, jus t to take into account the availability of the assistance without 
distinction. The changes as reflected typographically, as well as the footnote, are adopted.  
7.15.   With this, I declare the meeting closed. I thank you for your participation and note that the 
next meeting of the Trade Policy Review Body will be on 12 December to undertake the annual 
overview of developments in the international trading environment which are having an impact on 
the multilateral trading system, and assisted by the Report of the Dire ctor-General.  
7.16.   I also remind you that there is a public conference celebrating the 30th anniversary of the 
TPRM. The Secretariat has taken great pains and efforts for a whole day workshop that will hopefully 
contribute to the further improvements and enhanc ement of our Trade Policy Review Mechanism, of 
which, today, we had a very successful first Trade Policy Review of Lao. That Conference will start 
at 9:30 a.m., with an opening by the Director -General and the whole division of the Trade Policy 
Review Body.  
__________