WTO makes no specific pledges for graduating LDCs

The World Trade Organisation (WTO) has noted with satisfaction the progress achieved by the least developed countries (LDCs) but said nothing concrete about ways for LDCs to meet the post-graduation challenges.

It said it acknowledged the particular challenges that LDC graduation presents, including the loss of trade-related international support measures.

“We recognise the role that certain measures in the WTO can play in facilitating smooth and sustainable transition for these Members after graduation from the LDC category,” read the 12th Ministerial Conference (MC12) outcome document released on Thursday.      

The WTO on Friday agreed on an unprecedented package of trade deals, touching on health, reform, and food security.

The WTO in its declaration said, “In this difficult context, we note with satisfaction the progress achieved by LDC Members who have met or who are about to meet the graduation criteria set by the United Nations Committee for Development Policy (CDP) and acknowledge the particular challenges that graduation presents, including the loss of trade-related international support measures, as they leave the LDC category.”

“We recognise the role that certain measures in the WTO can play in facilitating smooth and sustainable transition for these Members after graduation from the LDC Category,” the declaration also said.

Bangladesh and other Least Developed Countries(LDCs) that are set to graduate to a developing nations in 2026 have long been lobbying to extend their duty-free and other preferential trade benefits for six to nine years after their changes in status as a member of the WTO.

According to the WTO provision, graduated LDCs are entitled to enjoy their long running duty-free market access facility to the countries falling under the European Union block for three years from the dates they changed their LDC category.

Besides, the graduating countries will also get capacity building supports from developing nations under the initiative of Enhanced Integrated Framework (EIF).

Again, the graduating LDCS are eligible for enjoying the TRIPs waiver facility for five more years. 

The deals were forged in the early hours of the sixth day of a conference of more than 100 trade ministers that was seen as a test of the ability of nations to strike multilateral trade deals amid geopolitical tensions heightened by the Ukraine war, reports Reuters.   

The Geneva-based intergovernmental organisation reaffirmed its decision at the 10th Ministerial Conference in Nairobi on implementing preferential treatment in favour of services and service suppliers of LDCs and increasing LDC participation in services trade. 

It instructed the Council for Trade in Services to review and promote the operationalisation of the waiver, including exploring improvements in LDC services export data, reviewing information on LDC services suppliers and consumers of LDC services in preference providing Member markets, and assessing best practices in facilitating the use of the preferences.   

At the conference, WTO Director General Ngozi Okonjo-Iweala told the delegates, “The package of agreements you have reached will make a difference to the lives of people around the world. The outcomes demonstrate that the WTO is in fact capable of responding to emergencies of our time.”

Earlier, she had appealed to the WTO members to consider the delicate balance required after nearly round-the-clock talks that have at times been charged with anger and accusations, reports Reuters. At one stage, a series of demands from India appeared set to paralyse talks but accommodations were found, trade sources said. 

Under the package, members agreed to loosen intellectual property (IP) protections for Covid-19 vaccines and limit, not eliminate, subsidies for illegal fishing for at least the next four years, reports Al Jazeera. 

The pared down deals on two of the most contentious areas under the WTO’s purview drew a mixed response, with some campaigners arguing the agreements did not go far enough.

“This agreement fails overall to offer an effective and meaningful solution to help increase people’s access to needed medical tools during the pandemic as it does not adequately waive IP on all essential Covid-19 medical tools and it does not apply to all countries,” said Christos Christou, international president of Doctors Without Borders.