The World Trade Organization (WTO) successfully concluded its Development Week (November 17-21), with key meetings of the Committee on Trade and Development (CTD) and its Sub-Committee on Least Developed Countries (LDCs). The week underscored members’ commitment to enhancing the integration of developing economies and LDCs into the global trading system through new proposals, analytical work, and targeted Aid for Trade initiatives.
The CTD meetings on November 18 and 21 saw the introduction of three new submissions aimed at addressing current trade challenges and development needs:
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Japan’s Proposal: Focused on bridging the gap between domestic trade policies and WTO trade rules to better support the integration of developing economies and LDCs into global trade and value chains.
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China’s Submissions: Addressed the development dimensions of carbon standards and proposed ways to further support the multilateral trading system.
Members welcomed the WTO Secretariat’s new analytical notes, particularly on the implementation of special and differential treatment (SDT) provisions, acknowledging them as a vital basis for better understanding the use of flexibilities within WTO agreements.
A key biennial Secretariat note highlighted the growing, yet challenging, participation of developing economies:
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Merchandise Exports: Developing economies’ share of global merchandise exports increased to 47% in 2024, up from 46% in 2022.
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Commercial Services: Their share of commercial services exports remained stable at 33%.
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Diversification Challenges: Despite progress in accessing new markets, many developing economies continue to face difficulties in diversifying their main export destinations.
The Sub-Committee on LDCs on November 17 reviewed trade trends, noting that while LDC exports grew at an average annual rate of 6.7% from 2019-2024, their share of world exports remains stagnant at around 1%. Members stressed the need for further efforts to enhance LDCs’ export capacity.
Experiences shared by Comoros and Timor-Leste, recently acceded LDCs, highlighted the progress in regulatory reforms but also ongoing challenges in meeting post-accession commitments and fully participating in WTO discussions. The session underscored the significant market access benefits for LDCs joining the Government Procurement Agreement (GPA), valued at an estimated $1.7 trillion in procurement markets.
The Aid for Trade session on November 20 reviewed updates from major development partners, stressing the critical role of financial and technical support:
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World Bank: Disbursed $74 billion in Aid for Trade from 2021-2023, with its Trade Facilitation Support Program leveraging over $800 million in lending.
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African Development Bank (AfDB): Highlighted initiatives to advance the African Continental Free Trade Area (AfCFTA) and reported mobilizing $100 million for technical assistance.
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Inter-American Development Bank (IDB): Focused on trade-facilitation reforms and support for knowledge-based services.
Members also considered a draft ministerial decision proposed by Australia and Barbados on “Reinforcing members’ commitment to Aid for Trade partnerships,” which calls for better monitoring, evaluation, and awareness of multilateral technical assistance programs.
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Preferential Trade Arrangements: Japan notified a three-year extension of its Generalized System of Preferences (GSP) for graduating LDCs. The European Union noted an increase in its GSP utilization rates.
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Small Economies: Members reviewed a Secretariat note on the interface between trade and climate change, acknowledging the unique vulnerability of small economies to climate change, limited markets, and geographic remoteness.
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China-Africa Partnership: China informed members about the extension of zero-tariff treatment for 100% of tariff lines to 53 African countries under the China-Africa Economic Partnership for a Shared Future.
The Development Week meetings successfully advanced the work agenda, reinforcing the WTO’s role in promoting development through trade.
