The World Trade Organization (WTO) Director-General has noted in a speech to the Less Developed Countries (LDC) Ambassadors and Experts that in the coming months there is an opportunity to address some of the core issues affecting LDCs. There has been progress in implementing some of the Bali decisions affecting LDCs such as duty free quota free market access; preferential rules of origin; and the implementation of the LDC services waiver. There is currently an effort to put together a work program on the remaining Doha Round issues and LDCs must consider the issues that would most significantly affect their interests.

Duty free quota free market (DFQF) access

The Bali decision required developed countries to consider improving DFQF access from LDCs so that access of at least 97% is available to LDCs. Also developing countries are required to provide DFQF access. There have been encouraging announcements by China, Chile and India. The exceptions to DFQF are in a small number of sectors and a limited number of developed markets. LDCs must continue to focus on the issue.

Rules of Origin

The Bali decision required a set of multilateral guidelines and mandated the Committee on Rules of Origin to review developments on an annual basis. Progress on this issue will depend on how far the LDCs can drive the issue in the Committee, with the help of the Director-General.

Services waiver

There has been real progress on the issue of the services waiver. More than 25 members of the WTO specified the LDC services sectors and means of supply to which preferential treatment would be given. The next step is to see that these promises are implemented. Members of the WTO were given a deadline of 31 July 2015 to notify their preferences to the Services Council and there should be further landmarks in terms of delivery on the promises given. This work will be led by the Services Council and the Director General will be involved in helping to push the issue further. The issue of preferential access was to be accompanied by technical assistance to address supply side issues and there also needs to be a focus on this side of the issue.

Cotton

Cotton is an important part of discussions on world trade because most countries in the world are involved in either the export or import of cotton. The issue is important in developed countries especially because the US is a large producer of cotton. The Bali agreements provide for regular meetings of WTO member countries to discuss issues arising in respect of the cotton trade. These meetings take into account the information gathered on domestic support and export subsidies in respect of cotton and give attention to development assistance.

Many of the LDCs are focused on cotton and the now that the agriculture negotiations are again seriously underway the LDCs should engage with these discussions to see what concessions they can obtain as part of the overall agriculture negotiations. As the discussions reach a deeper technical level the proponents must come up with realistic and practical proposals. Cotton will be a necessary part of any future agreement at the WTO and there is a commitment to moving faster on this issue.

Trade Facilitation Agreement

There has been progress in implementing the Trade Facilitation Agreement and this is important for LDCs. An individual LDC cannot achieve its development goals purely by relying on its domestic market so it is necessary to connect with foreign markets. This is difficult owing to the cost of trading and there are also issues surrounding capacity. The Trade Facilitation Agreement can deal with these issues by cutting the cost of trading and giving practical help with capacity building to trade more efficiently.

The WTO members now need to ratify the agreement to ensure that it comes into force as soon as possible. Early ratification of the agreement would show the international community that the LDCs are keen to integrate into the trading system and are open to trade and investment. LDCs can talk to the WTO secretariat about the opportunities for practical support and assistance from international institutions such as the World Bank and the regional development banks.

Remaining issues of the Doha Development Agenda (DDA)

The WTO is attempting to set out a new work program for the Doha Development Agenda (DDA). Members must be engaging on the substantive issues. There are still important differences between the positions of WTO members but this is just the starting point of the negotiations. Creativity is required in finding practical solutions. The LDCs must define their positions clearly at an early stage. This may mean putting forward issues that are currently not being considered but that are important for the LDC economies.

Other developments

Support for LDCs in capacity building to help them integrate into the trading system is important. It is being delivered through the Trade Facilitation Agreement Facility; through the Enhanced Integrated Framework (EIF) for trade-related technical assistance to LDCs which is now moving into a new phase; and through the Aid for Trade initiative. The fifth Aid for Trade review is to be performed in the WTO from 30 June to 2 July 2015. This will be an opportunity for the international community to take stock of how much more needs to be done on Aid for Trade.

In addition to these developments the UN Summit on the Post 2015 Development Agenda takes place in September 2015 and the potential contribution from trade should be recognized in the Sustainable Development Goals. There will be an event in October 2015 looking at how the WTO has served LDCs over the last twenty years and in December the WTO’s tenth Ministerial Conference will be held for the first time in Africa.