LDC
GRADUATION
REPORT BY THE CHAIRPERSON OF THE
SUB-COMMITTEE ON LEAST
DEVELOPED
COUNTRIES (LDCS) TO THE GENERAL COUNCIL[1]
1._
As you are aware, the WTO's 13th
Ministerial Conference (MC13) instructed the Sub‑Committee on LDCs (hereinafter
referred to as the Sub-Committee) to continue its work on the remaining
elements of the LDC proposal with a view to making recommendations, if any, by
December 2024 (paragraph 3, WT/L/1189).
2._
Since then, Members have been
examining provisions identified by the LDC Group. I reported on this work to the
General Council (WT/COMTD/LDC/31)
in December 2024. In my report, I indicated that more time could help to allow
Members to engage on this issue. I also indicated my intention to update the
General Council by July 2025. The General Council took note of the need for
continued discussions on this topic, and agreed to revert to this issue in July
2025.
3._
Since the beginning of the year,
I have been holding consultations in various configurations. I provided an
update at the 101st session the Sub-Committee held on 27 March (JOB/COMTD/LDC/4).
At that meeting, the LDC Group indicated that they would revise their proposal
contained in document JOB/COMTD/LDC/1.
4._
On 6 June 2025, the LDC Group
tabled their revised proposal contained in document JOB/COMTD/LDC/7,
which includes a draft General Council decision. The proposal narrowed down the
list of provisions, initially listed in Annex 2 of the document WT/GC/W/807/Rev.2.
The latest proposal focuses on three substantive items: i) subsidies; ii) trade-related
aspects of intellectual property (TRIPS); and iii) agriculture, and calls for a
[six-year] transition period after graduation from the LDC category.
5._
On 16 June, Members considered
the revised proposal in the 102nd session of the Sub‑Committee. I
also held informal consultations on 23 June with a view to exploring possible
ways forward prior to the July General Council. In both these meetings the
proponents indicated that the revised proposal was the result of extensive
consultations within the LDC Group and among Members retaining key provisions
of direct relevance to graduating LDCs. The proponents reiterated that they
were merely seeking an extension of LDC flexibilities for a limited time after
graduation.
6._
Many Members welcomed the
efforts made by the LDC Group in streamlining the proposal. While Members remained
committed to engage in further discussions, several noted that the limited remaining
time before the July General Council may not allow for the conclusion of this
work. Furthermore, some Members expressed reservations regarding the revised
latest textual proposal.
7._
Differences of views continue
to persist on various elements of the LDC proposal, including whether the
proposed text by the LDC Group required an amendment of certain WTO Agreements,
or would constitute a new commitment from the Membership. A number of Members
shared the view that customized solutions to address the particular
circumstances of graduating LDCs, including through waivers, would be the
appropriate way of addressing the needs of graduating LDCs.
8._
The proponents indicated that
they exercised a lot of flexibility pointing to significant prioritization
reflected in the revised proposal. The LDCs consider an outcome on LDC
graduation as an essential component of the WTO's 14th Ministerial
Conference. The proponents reiterated their commitment to work closely with
Members with a view to achieving an outcome, including, if possible, at the time
of the July General Council.
9._
As
Members are aware, we have been discussing this topic for a number of years. I
would like to underline that we have had a round of exchanges on the technical
aspects of the LDC proposal, including elements contained in the revised text. I would also like to acknowledge the flexibilities demonstrated by
the LDC Group. At the same time, it has been highlighted that outstanding
elements are the most critical ones to resolve. At this juncture, based
on the discussions that we have held so far, the Sub-Committee is not in a
position to make any recommendations to the July General Council. I encourage
the LDCs to intensify their engagement with key delegations which could
facilitate further progress on this issue. I remain available to support Members in any
way I can.
10._
This
concludes my report.
__________
[1] The report is issued under the Chair's own responsibility. It is without
prejudice to the positions of Members or to their rights and obligations under
the WTO. This does not purport to be exhaustive.