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Sub-Committee on Least Developed Countries - Market access for products and services of export interest to least developed countries : summary of recent developments - Note by the Secretariat
日期:2016/09/23
作者:WTO Secretariat
文件編號:WT/COMTD/LDC/W/64
附件下載:WTCOMTDLDCW64.doc
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MARKET ACCESS FOR PRODUCTS AND SERVICES OF EXPORT INTEREST
TO LEAST DEVELOPED COUNTRIES: SUMMARY OF RECENT DEVELOPMENTS

NOTE BY THE SECRETARIAT[1]

Contents

1 executive summary. 3

2  Introduction.. 4

3  LDCs' TRADE PROFILE. 5

3.1  Trends in Goods and Commercial Services. 5

3.2  Merchandise Trade Developments. 10

3.2.1  Overall trend. 10

3.2.2  Commodity price movements. 11

3.2.3  Trends in product composition. 12

3.2.4  Major products and markets of LDCs. 13

3.3  Services Trade Developments. 16

4  MARKET ACCESS FOR PRODUCTS OF EXPORT INTEREST TO LDCS. 18

4.1  Duty-free market access granted by selected Members. 18

4.2  Recent initiatives to improve market access for LDCs. 20

annex. 22

 


List of Tables

Table 1: Trends in LDC exports of goods and commercial services. 5

Table 2: LDCs and world trade in goods and commercial services, 2005-2015. 8

Table 3: Trade balance of goods and services (BOP), as a percentage of total trade, 2005 and 2015  9

Table 4: LDCs' top ten exported products, 2005 and 2015. 13

Table 5: LDCs' top ten imported products, 2005 and 2015. 14

Table 6: LDCs' top ten export markets, 2005 and 2015. 15

Table 7: Duty-free market access under LDC schemes in selected Members, 2014. 19

Table 8: Notification of preferences in favour of LDC services and service suppliers. 21

 

 

List of Charts

Chart 1: Evolution of LDC exports of goods and commercial services, 2005-2015. 5

Chart 2: LDCs' total trade balance, 2005 and 2015. 6

Chart 3: Development in merchandise trade volume of LDCs and developing economies. 6

Chart 4: LDCs' shares in world exports, 2005-2015. 7

Chart 5: Merchandise trade of LDCs, 2005-2015. 10

Chart 6: Merchandise trade balance of LDCs, 2005-2015. 11

Chart 7: Export prices of primary commodities, 2005-2015. 11

Chart 8: Evolution of merchandise export structure of LDCs, 2005 and 2015. 12

Chart 9: LDCs commercial services exports by region, 2005-2015. 16

Chart 10: Growth in trade in commercial services by economic grouping, 2015. 17

Chart 11: Growth in LDC exports of commercial services by selected sector, 2015. 17

 

 

List of Annex Tables

Annex Table 1: Merchandise exports and imports of LDCs by selected country grouping, 2014. 22

Annex Table 2: Export prices of primary commodities, 2005-2016, Q2. 24

Annex Table 3: LDCs merchandise trade balance by product groups, 2005-2015. 25

Annex Table 4: Imports from LDCs by major markets and product groups, 2005-2015. 26

Annex Table 5: Exports of commercial services of the LDCs by category, 2005 and 2015. 28

Annex Table 6: Major multilateral non-reciprocal LDC preference schemes undertaken by Membersa 29


1 executive summary

1.1.  LDC exports of goods and services grew by an annual average of 7.6% over the 2005‑2015 period and, thus, slightly more than the exports of other developing economies (7.3% average). However, this fact is due to distinctly higher growth rates in the first part of the period. In recent years, LDCs' exports were constrained by unfavourable developments in the prices of commodities. In 2015, LDC exports of goods and commercial services decreased by 20.1% to US$195.5 billion, while LDC imports fell by 7.5% to US$303.6 billion, resulting in an overall trade deficit of US$108.1 billion.

1.2.  LDCs were able to increase their share in world exports of goods and commercial services from 0.7% in 2005 to 1.03% in 2014. However, in 2015, their share stood at 0.9% and hence fell below 1% for the first time since the crisis year 2009. This recent decrease reflected lower values of merchandise exports, due to falling prices of commodities.

1.3.  In 2015, merchandise exports of the LDCs contracted by 25%, a significantly bigger drop than in 2014. As a result, the share of LDCs in world merchandise exports decreased to 0.97%. As their imports declined by "only" 9% in 2015, the LDCs recorded a new high in their merchandise trade deficit (of US$87 billion in 2015).

1.4.  The year 2015 has seen a steep reduction in the price of commodities, especially fuels; also due to the slow-down in the Chinese economy and an increase in world supply. For exporting countries, this decline has been partially compensated by an increase in the US dollar exchange rate.

1.5.  Petroleum oils (HS 27.09) dominated LDC exports in 2015, even if their share in exports fell to 28% (48% back in 2005). The importance of clothing products has increased though: in 2015, six out of the top ten products belonged to clothing, accounting for 20% of LDC merchandise exports.

1.6.  In 2015, China was the top destination for LDC merchandise exports, followed by the European Union (EU) and the United States. The EU was the largest destination for LDC exports of agricultural and manufacturing products.

1.7.  In 2015, LDCs' exports of commercial services expanded to US$36 billion, up by 1%. This trend contrasts with the performances recorded by other developing economies and developed economies, which experienced sharp declines. As a result, the share of LDCs in world exports of commercial services increased to 0.8%. LDCs' services exports continue to be dominated by low- to middle-skilled services sectors, such as travel (tourism) and transport. In 2015, LDCs' services exports growth was fostered by the sustained expansion of the tourism sector.

1.8.  In 2015, LDCs’ services trade remained concentrated within a few economies. The top ten leading exporters accounted for more than two-thirds of the group’s services receipts, a proportion virtually unchanged since 2005. The LDCs, as a group, are net commercial services importers. Over the years, the LDCs' services trade deficit has widened from US$16.3 billion in 2005 to US$39 billion in 2015.

1.9.  Progress has continued in advancing market access opportunities for LDCs. Most of the developed country Members accord either full or nearly full duty-free and quota-free (DFQF) market access to LDC products. A number of developing country Members have significantly expanded their DFQF coverage and now offer almost comprehensive DFQF market access to LDC products. Continuous improvements are being noted in the provision of DFQF market access to LDC products, including the further easing of rules of origin conditions in certain markets. Since the last report, several Members have submitted notifications regarding preferential treatment for services and services suppliers from LDCs –  pushing up the number of notifications to 23.


Introduction

2.1.  This Note prepared by the Secretariat responds to paragraph 8 of the WTO Work Programme for the Least Developed Countries, which mandates annual reviews of market access for products originating from LDCs (WT/COMTD/LDC/11/Rev.1). It builds on previous Secretariat studies by updating the information on trends in LDCs' trade and market access conditions. This year's version contains a more concise summary of recent trade developments compared to previous editions. However, it attempts to provide more detail on trade flows of individual LDCs with a view to better gauging their participation in world trade. In this regard, the Addendum (WT/COMTD/LDC/W/64/Add.1) to this Note contains export and import statistics for individual LDCs on both the top five products and top five markets for the years 2005 and 2015.

2.2.  The Note is divided into two main chapters, in addition to the executive summary and the introduction. Chapter 3, on trade profile, provides a description of the recent trends of LDCs' trade flows, both in goods and commercial services. Chapter 4 contains information on duty-free market access for LDC products and on recent initiatives undertaken by Members to improve market access for LDCs, mainly based on Members' notifications. The Note does not attempt to be comprehensive in covering all aspects that condition market access for LDC products. It should therefore be read in conjunction with previous Secretariat notes prepared on this topic, to gauge the different factors that determine market access for LDCs.

2.3.  Despite improvements in the production of national data, the statistical coverage of LDCs remains incomplete. The Secretariat has been using reported national figures whenever available. In many instances, it was still necessary to rely on mirror statistics i.e. data reported by LDCs' trading partners. The disadvantage of using mirror data is that it does not allow taking into consideration trade among the LDCs, as well as trade with non-reporting developing economies.

2.4.  Data based on balance of payments (the main source of information for trade in services) have been presented according to the current (sixth) edition of the IMF Balance of Payments Manual (BPM6), while the previous year's edition was based on the fifth edition of the manual. These methodological changes should be taken into account when comparing between previous versions and the current version of this Note.

2.5.  The definition of geographical and other groupings in this report serves only statistical purposes; it does not imply an expression of opinion by the Secretariat concerning the status of any country or territory, the delimitation of its frontiers, nor the rights and obligations of any WTO Member in respect of WTO agreements.


LDCs' TRADE PROFILE

3.1  Trends in Goods and Commercial Services

3.1.  LDC exports of goods and services grew by an annual average of 7.6% over the 2005‑2015 period and, thus, slightly more than the exports of other developing economies (7.3% average). However, this fact is due to distinctly higher growth rates in the first part of the period. During 2005-2010, the annual average growth rate was 14.7% for LDCs and 11.2% for other developing economies. In contrast, during 2010-2015, annual export growth was only 0.9% in LDCs as compared to 3.6% in other developing economies. After 2011, the growth in the total value of LDCs' exports was constrained by unfavourable developments in the price of commodities (see Section 3.2.2.), on which they depend more than the other developing economies.

Chart 1: Evolution of LDC exports of goods and commercial services, 2005-2015

(Index, 2005 = 100; BOP BPM6)

Source:   WTO Secretariat.

 

Table 1: Trends in LDC exports of goods and commercial services

(Billion dollars and percentage; BOP, BPM6)

 

 

Value ($bn)

Annual rate of growth (%)

 

2005

2015

2010

2011

2012

2013

2014

2015

2005-2015

Total goods and commercial services

94.3

195.5

27.4

23.1

3.3

5.0

-2.1

-20.1

7.6

Total goods

84.8

159.5

29.6

23.0

2.5

3.7

-3.9

-23.7

6.5

Fuels and Mining

49.9

60.7

28.4

25.5

-2.1

-0.9

-6.4

-47.4

2.0

Other goods

34.9

98.7

31.4

19.0

9.9

10.4

-0.6

5.5

11.0

Commercial services

9.5

36.0

12.4

24.2

9.4

14.7

9.9

1.0

14.3

Source:   WTO Secretariat.

 

3.2.  In 2015, LDC exports of goods and commercial services decreased by 20.1%, down to US$195.5 billion, while LDC imports fell by "only" 7.5% to US$303.6 billion, resulting in an overall trade deficit of US$108.1 billion in 2015. In 2005, the overall trade deficit stood at US$9.8 billion, thus had increased by more than 11 times during this period – in nominal terms.


Chart 2: LDCs' total trade balance, 2005 and 2015

(Billion dollars; BOP, BPM6)

Source:   WTO Secretariat.

 

3.3.  In volume terms, LDC merchandise exports grew by 7.9% in 2015, while their imports expanded by 3.1%. In comparison to 2005, the export volume increased by almost 1.5 times while the import volume more than doubled (see Chart 3). This development in volume terms shows, inter alia, the high impact of the decrease in prices on the trade figures in nominal terms.

Chart 3: Development in merchandise trade volume of LDCs and developing economies

(Indices, 2005 = 100)

Source:   WTO Secretariat. LDCs' data are computed based on deflators sourced from UNCTAD.

 

3.4.  Regarding LDCs' integration in global trade, Chart 4 shows that LDCs were able to increase their share in world exports of goods and commercial services from 0.7% in 2005 to 1.03% in 2014. However, in 2015, their share fell to below 1.0% for the first time since the crisis year 2009. This recent decrease reflected lower values of goods, due to falling prices of commodities, particularly fuels. For exports of commercial services, LDCs were able to further increase their market share to 0.8% in 2015. Table 2 contains the respective figures for both exports and imports for all years since 2005.


Chart 4: LDCs' shares in world exports, 2005-2015

(Percentage; BOP, BPM6)

Source:   WTO Secretariat.

 

3.5.  Regarding the trade balances of individual economies, Table 3 shows the ratio of trade balance to total trade (sum of exports and imports) – expressed in percentages – for each individual LDC ("normalised trade balance"). The normalised trade balance represents a record of a country’s international transactions with the rest of the world, normalised on its own total trade. A trade surplus or deficit in this analysis is related to total trade – giving a more pertinent measure of trade performance.

3.6.  In 2015, the trade balance ratio of goods was positive for only four out of the 48 LDCs – namely for Angola, Equatorial Guinea, Chad and Guinea-Bissau (see Table 3). However, for all of the first three, the ratio had deteriorated in comparison to 2005; only Guinea-Bissau was in position to turn the negative ratio of 2005 into a positive one in 2015. All the other LDCs had negative ratios in both years – with the exception of Myanmar, Yemen, Guinea, and Zambia that had positive ratios in 2005. Especially Eritrea, Burkina Faso and the Solomon Islands could reduce their negative ratios markedly between 2005 and 2015. Eritrea, for example, had a ratio of -90% in 2005 (i.e. their negative trade balance of 2005 reached a value of 90% of the nominal trade turnover of 2005) and a ratio of "only" -56% in 2015. The economies with the highest negative normalised trade balances in 2015 were Timor-Leste, Afghanistan, and Sao Tome and Principe.

3.7.  Regarding trade of commercial services, eleven out of the 48 LDCs showed positive normalised trade balances in 2015, with Eritrea, The Gambia and Cambodia on the top positions. Equatorial Guinea, the Democratic Republic of the Congo and Lesotho were the LDCs with the highest negative normalised trade balances in 2015, between -96% (Equatorial Guinea) and -83% (Lesotho).

 

 


Table 2: LDCs and world trade in goods and commercial services, 2005-2015

(Billion dollars and percentage; BOP, BPM6)

Value (US$bn)

Annual percentage change

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2005-2015

Total trade in goods and commercial servicesa

   World

12,656

14,536

16,925

19,500

15,536

18,488

21,978

22,275

22,910

23,329

20,681

5.0

   LDC

198

236

298

391

338

401

492

526

557

573

499

9.7

     Share in world

0.78

0.81

0.88

1.00

1.09

1.09

1.12

1.18

1.22

1.23

1.21

...

Total trade in goodsa

   World

10,102

11,660

13,499

15,615

12,082

14,721

17,722

17,881

18,246

18,340

15,998

4.7

   LDC

163

195

244

319

269

325

398

426

449

456

388

9.1

     Share in world

0.81

0.83

0.90

1.02

1.11

1.10

1.12

1.19

1.23

1.25

1.22

...

Total trade in commercial servicesa

   World

2,554

2,876

3,426

3,885

3,455

3,767

4,256

4,393

4,664

4,988

4,683

6.3

   LDC

35

41

54

73

69

76

94

101

108

117

111

12.2

     Share in world

0.70

0.73

0.80

0.94

1.01

1.02

1.12

1.15

1.16

1.18

1.19

...

Goods exports

   World

10,165

11,760

13,642

15,754

12,236

14,914

17,950

18,134

18,555

18,628

16,189

4.8

   LDC

85

105

131

171

128

166

205

210

218

209

159

6.5

     Share in world

0.83

0.89

0.96

1.09

1.05

1.12

1.14

1.16

1.17

1.12

0.98

...

Commercial services exports

   World

2,599

2,942

3,523

3,964

3,534

3,842

4,350

4,468

4,747

5,064

4,754

6.2

   LDC

9

11

14

18

19

21

26

28

32

36

36

14.3

     Share in world

0.36

0.39

0.40

0.46

0.52

0.54

0.59

0.63

0.68

0.70

0.76

...

Goods imports

   World

10,040

11,561

13,356

15,475

11,928

14,528

17,493

17,628

17,936

18,052

15,807

4.6

   LDC

78

90

112

148

140

159

193

216

231

247

229

11.3

     Share in world

0.78

0.78

0.84

0.95

1.18

1.09

1.10

1.22

1.29

1.37

1.45

...

Commercial services imports

   World

2,509

2,810

3,329

3,806

3,376

3,693

4,162

4,319

4,581

4,913

4,612

6.3

   LDC

26

30

40

54

50

55

68

72

75

81

75

11.3

     Share in world

1.03

1.07

1.19

1.43

1.49

1.50

1.64

1.67

1.65

1.65

1.63

...

a            World total trade is calculated as the average of world exports and imports, according to the BOP presentation (BPM 6). Total LDC trade in this table is approximated as the sum of their exports and imports. Total trade shares are calculated in relation to the corresponding world exports plus imports.

Source:   WTO Secretariat.


Table 3: Trade balance of goods and services (BOP), as a percentage of total trade, 2005 and 2015

(Percentage; BOP, BPM6)

 

Goods

Commercial services

2005

2015

2005

2015

Angola

48.5

35.7

Eritrea

-33.3

58.0

Equatorial Guinea

68.7

35.1

The Gambia

27.1

43.2

Chad

52.9

19.6

Cambodia

25.5

33.6

Guinea-Bissau

-8.2

18.8

Myanmar

-30.0

25.5

Solomon Islands

-27.6

-0.7

Vanuatu

32.4

24.2

Mali

-6.1

-1.3

Tanzania

3.6

17.6

Zambia

2.6

-1.8

Lao People's Dem. Rep.

72.8

17.6

Tuvalu

-3.0

Djibouti

11.1

8.3

Burkina Faso

-36.5

-3.0

Madagascar

-6.1

5.8

Congo, Dem. Rep. of

-5.6

-4.0

Togo

-26.4

5.8

Madagascar

-27.2

-8.9

Sao Tome and Principe

-5.3

3.9

Benin

-19.8

-12.1

Nepal

-22.0

-3.6

Bangladesh

-13.5

-12.5

Haiti

-70.0

-6.2

Mauritania

-39.1

-15.5

Sudan

-83.2

-8.9

Lao People's Dem. Rep.

-22.9

-15.6

Rwanda

-36.4

-9.6

Cambodia

-15.0

-16.8

Senegal

-7.3

-13.2

Guinea

6.5

-17.0

South Sudan

-14.4

Togo

-18.2

-20.5

Uganda

-10.1

-16.9

Tanzania

-27.5

-23.9

Bhutan

-50.6

-18.7

Malawi

-36.0

-25.4

Yemen

-61.2

-19.6

Bhutan

-32.4

-26.4

Zambia

11.0

-19.6

Uganda

-26.4

-27.9

Comoros

-7.1

-20.5

Senegal

-28.8

-30.2

Ethiopia

-19.8

-23.6

Niger

-23.3

-31.1

Solomon Islands

-21.3

-28.3

Mozambique

-12.5

-36.6

Benin

-20.1

-33.2

Lesotho

-34.1

-37.2

Afghanistan

-35.7

Myanmar

39.5

-41.5

Guinea-Bissau

-78.7

-43.4

South Sudan

-42.2

Mali

-39.5

-44.0

The Gambia

-36.4

-42.7

Malawi

-36.6

-46.7

Sierra Leone

-32.6

-43.9

Liberia

-10.0

-46.9

Sudan

-10.4

-44.7

Mauritania

-67.5

-50.3

Rwanda

-48.9

-47.8

Central African Republic

-69.4

-51.7

Haiti

-48.0

-54.0

Burkina Faso

-70.4

-51.8

Eritrea

-90.5

-56.2

Niger

-53.6

-56.1

Central African Republic

-15.5

-62.7

Kiribati

-58.3

-57.7

Ethiopia

-60.3

-68.7

Mozambique

-33.0

-65.9

Vanuatu

-55.0

-71.2

Tuvalu

-60.0

-66.7

Burundi

-51.2

-71.5

Bangladesh

-52.7

-67.7

Kiribati

-88.1

-71.8

Chad

-93.1

-71.6

Djibouti

-74.8

-74.4

Timor-Leste

-72.5

Nepal

-43.2

-77.1

Burundi

-89.4

-73.6

Liberia

-39.7

-78.6

Sierra Leone

-4.9

-74.9

Comoros

-73.8

-81.7

Guinea

-71.9

-78.4

Yemen

15.3

-83.5

Angola

-94.4

-82.9

Sao Tome and Principe

-71.4

-85.9

Lesotho

-84.3

-83.1

Afghanistan

-87.2

Congo, Dem. Rep. of

-77.3

-87.2

Timor-Leste

-94.6

Equatorial Guinea

-95.7

-96.4

Notes:     …       Data not available/not applicable. LDCs are ordered based on their normalized trade balances in 2015.

Source:   WTO Secretariat.

 


3.2  Merchandise Trade Developments[2]

3.2.1  Overall trend

3.8.  In 2015, merchandise exports of the LDCs contracted by 25%, thus by an even more distinct degree than the 3% decrease in 2014. Merchandise imports of LDCs declined by 9% in 2015. As LDCs depend to a high degree on exports of fuels and mining products, this mirrors the general negative trend of decreased prices and demand in 2015, but concerns the LDCs more intensively than most other economic groupings.

Chart 5: Merchandise trade of LDCs, 2005-2015

(Billion dollars and percentages)

Source: WTO Secretariat.

 

3.9.  The share of LDCs merchandise exports in world exports dropped to 0.97% in 2015 – for the first time below 1% since 2007. Their share in world merchandise imports though, slightly increased from 1.4% in 2014 to 1.5% in 2015. Taking trade of developing economies as basis, the LDC share dropped to 2.1% in 2015 (2.4% in 2014) for merchandise exports while the imports share increased to 3.4% (3.3 % in 2014). Regarding exports of manufactured goods, LDCs' share in world exports of these products decreased from 0.5% in 2014 to 0.4% in 2015.

3.10.  The LDCs' collective trade deficit continues to increase and hit a record level of US$87 billion in 2015, 44% higher than in 2014 and 134% higher than in 2013. In 2015, the LDCs' oil exporters registered for the first time in more than 15 years a trade deficit of US$12 billion, from an average surplus of US$38 billion during the previous nine years. The LDCs' manufacturing and agricultural exporters recorded a US$34 billion and US$20 billion trade deficit, respectively.


Chart 6: Merchandise trade balance of LDCs, 2005-2015

(Billion dollars)

Source: WTO Secretariat.

 

3.2.2  Commodity price movements

3.11.  The year 2015 has seen a steep reduction in the prices of commodities, especially those of fuels (-45% against 2014). For exporting countries, this decline has been partially compensated by an appreciation in the US dollar exchange rate (actually, the short term fluctuations between the US dollar and the commodity prices are often negatively correlated). But the decline in commodity prices was also due to the slow-down in the Chinese economy and an increase in world supply as many projects – fuelled by high prices after 2003 – reached maturity. Financial volatility is also responsible for higher uncertainty and lower investment worldwide, leading to a further reduction in demand for minerals and oil.

Chart 7: Export prices of primary commodities, 2005-2015

(Indices, 2005 = 100)

 

Source:   World Bank.


3.2.3  Trends in product composition

3.12.  Chart 8 shows the evolution in the commodity mix of the LDCs between 2005 and 2015.[3] The decreased demand from emerging economies and fallen commodity prices of recent years, led to a shrinking share of primary products in total exports of LDCs – from 73% in 2005 to estimated 58% in 2015. The share of manufactured products on the other hand increased from 21% in 2005 to 35% in 2015, mainly due to an increasing importance of clothing exports.[4] During the same period, the share of agricultural products in LDC exports increased from 11% in 2005 to 13% in 2015.

 

Chart 8: Evolution of merchandise export structure of LDCs, 2005 and 2015

(Percentage shares)

 

Source:   2005: WTO Secretariat, 2015: Estimates based on UN Comtrade database (mirror data).


3.2.4  Major products and markets of LDCs

3.13.  Table 4 shows the top ten products (in HS-4-digits classification) exported by LDCs, for 2005 and 2015. Petroleum oils (HS 27.09) dominated LDC exports in both years. Back in 2005, almost half (48%) of total LDCs exports were allocated to this product. In 2015, petroleum oils were still the most important export product (in value terms), but their share had distinctly
fallen – down to 28% (mostly due to the fall in prices). The opposite development could be observed for petroleum gases/hydrocarbons (HS 27.11), with the share more than doubled between 2005 and 2015 (from 2% in 2005 up to almost 5% in 2015) – but on a much smaller scale (in nominal figures).

3.14.  The importance of clothing products increased between the two years; in 2005, four out of the top ten export products were part of this product group, reaching a cumulative share of 11% in LDC exports. Ten years later, six out of the top ten products belonged to clothing, with a total share of 20% in LDC merchandise exports. While back in 2005, the top ten products still covered more than two‑thirds of LDCs total merchandise exports, their share had gone down to less than 60% in 2015. This might be interpreted as a factual decrease in product concentration of LDCs' exports on the first sight, but is in fact just mostly a result of price effects (of especially petroleum oils).

Table 4: LDCs' top ten exported products, 2005 and 2015

(Billion dollars and percentages)

2005

2015

HS code

Commodity description

Value ($bn)

Share in total exports (%)

HS code

Commodity description

Value ($bn)

Share in total exports (%)

2709

Petroleum oils, crude

38.5

47.7%

2709

Petroleum oils, crude

43.0

28.0%

6110

Jerseys, pullovers, cardigans, waist-coats and similar articles, knitted or ...

3.1

3.8%

6203

Men's or boys' suits, ensembles, jackets, blazers, trousers

6.9

4.5%

6109

T-shirts, singlets and other vests, knitted or crocheted

1.9

2.3%

2711

Petroleum gases and other gaseous hydrocarbons

6.9

4.5%

6203

Men's or boys' suits, ensembles, jackets, blazers, trousers

1.8

2.3%

6109

T-shirts, singlets and other vests, knitted or crocheted

6.6

4.3%

6204

Women's or girls' suits, ensembles, jackets, blazers, dresses, skirts

1.8

2.3%

6110

Jerseys, pullovers, cardigans, waist-coats and similar articles, knitted or ...

6.4

4.2%

2711

Petroleum gases and other gaseous hydrocarbons

1.7

2.1%

6204

Women's or girls' suits, ensembles, jackets, blazers, dresses, skirts

4.9

3.2%

7102

Diamonds, whether or not worked, but not mounted or set

1.7

2.1%

7403

Refined copper and copper alloys, unwrought

4.4

2.9%

2710

Petroleum oils, other than crude

1.6

2.0%

7108

Gold (including gold plated with platinum)

4.0

2.6%

7403

Refined copper and copper alloys, unwrought

1.5

1.8%

6205

Men's or boys' shirts

2.9

1.9%

7601

Unwrought aluminium

1.3

1.6%

6104

Women's or girls' suits, ensembles, jackets, blazers, dresses, skirts

2.8

1.9%

Share of top 10 in total LDC exports:

68.0%

Share of top 10 in total LDC exports:

57.9%

Source:   UN Comtrade (importer data).

 

3.15.  LDCs' merchandise imports are less concentrated than exports (see Table 5). Also for imports, petroleum oils (HS 27.10) represent the most important product. However, its share in total imports is much lower (8% in both years) than in the case for exports. Otherwise, cars, trucks and other vehicles as well as ships/vessels[5] played important roles in both years – reaching cumulative shares of 11% in 2005 and 5% in 2015. Imports of textiles such as "fabrics of cotton" (HS 52.08) reflect the LDCs' role in global value chains, using imported fabrics as inputs into the production of final clothing products for export. Two of the top ten imported products in both years are food products (rice and wheat/meslin). The value of imports of medicaments (HS 30.04) almost tripled between 2005 and 2015.

Table 5: LDCs' top ten imported products, 2005 and 2015

(Billion dollars and percentages)

2005

2015

HS code

Commodity description

Value ($bn)

Share in total exports (%)

HS code

Commodity description

Value ($bn)

Share in total exports (%)

2710

Petroleum oils, other than crude

6.9

8.3%

2710

Petroleum oils, other than crude

15.8

7.5%

8901

Cruise ships, excursion boats, ferry-boats, cargo ships, barges and similar  ...

4.1

4.9%

8703

Motor cars and other motor vehicles principally designed for the transport  ...

4.0

1.9%

8703

Motor cars and other motor vehicles principally designed for the transport  ...

1.7

2.0%

3004

Medicaments (excluding goods of heading 30.02, 30.05 or 30.06)

3.9

1.9%

1006

Rice

1.6

1.9%

8901

Cruise ships, excursion boats, ferry-boats, cargo ships, barges and similar  ...

3.7

1.8%

8704

Motor vehicles for the transport of goods

1.6

1.9%

1701

Cane or beet sugar and pure sucrose, in solid form

3.6

1.7%

8905

Light-vessels, fire-floats, dredgers, floating cranes and other vessels

1.6

1.9%

5208

Woven fabrics of cotton, containing 85 % or more by weight of cotton

3.6

1.7%

3004

Medicaments (excluding goods of heading 30.02, 30.05 or 30.06)

1.4

1.7%

1006

Rice

3.4

1.6%

5208

Woven fabrics of cotton, containing 85 % or more by weight of cotton

1.4

1.7%

8517

Electrical apparatus for line telephony or line telegraphy

3.4

1.6%

8431

Parts suitable for use principally with the machinery of headings 84.25 to  ...

1.2

1.4%

8704

Motor vehicles for the transport of goods

3.1

1.5%

1001

Wheat and meslin

1.1

1.3%

1001

Wheat and meslin

3.0

1.4%

Share of top 10 in total LDC exports:

27.1%

Share of top 10 in total LDC exports:

22.4%

Source:   UN Comtrade (exporter data).

 

3.16.  At the level of individual economies, some heterogeneity in the product structure of exports and imports can be observed. The top exports/imports products by individual LDC are shown in Table 1 of the Addendum (WT/COMTD/LDC/W/64/Add.1).

3.17.  Table 6 lists the top ten markets by product groups for both 2005 and 2015. While in 2005, the EU, with an export market share of almost 30%, was the most important destination for overall LDC exports, China was the top destination in 2015 (market share of 33%). In 2015, exports of fuels and mining products to China accounted for 13% of total LDC exports and for almost half of LDC exports of fuels and mining products – in spite of fallen energy prices and lower demand from China. Regarding agricultural and manufactured products, the EU was still the most important market for the LDCs in 2015, as it was in 2005. For agricultural products, the EU's share decreased however from 41% in 2005 to 31% in 2015, while China's share increased from 14% in 2005 to 23% in 2015. The share of the EU as market for LDCs' exports of manufactures increased slightly, from 53% in 2005 to 54% in 2015.


Table 6: LDCs' top ten export markets, 2005 and 2015

(Billion dollars and percentage shares)

Total trade

Agricultural products

Fuels and mining products

Manufactures

2005

Value ($bn)

2005

Value ($bn)

2005

Value ($bn)

2005

Value ($bn)

EU (28)

20.6

EU (28)

3.5

China

14.0

EU (28)

9.8

United States of America

19.5

China

1.2

United States of America

12.5

United States of America

6.3

China

15.3

India

1.1

EU (28)

7.2

India

0.7

Thailand

3.6

United States of America

0.6

Thailand

2.8

Canada

0.6

Japan

3.5

Thailand

0.6

Japan

2.6

Japan

0.4

India

2.0

Japan

0.5

Chinese Taipei

1.6

Hong Kong, China

0.3

Chinese Taipei

1.8

Saudi Arabia, Kingdom of

0.4

Chile

1.2

Turkey

0.1

Canada

1.6

Viet Nam

0.3

Korea, Rep. of

1.0

Mali

0.1

Chile

1.2

Pakistan

0.2

Zimbabwe

0.9

Singapore

0.1

Korea, Rep. of

1.1

Zimbabwe

0.2

Canada

0.7

South Africa

0.1

Grand Totala

70.1

Grand Totala

8.5

Grand Totala

44.4

Grand Totala

18.5

Share of top 10:

85.9%

Share of top 10:

74.6%

Share of top 10:

92.1%

Share of top 10:

88.0%

2015

Value ($bn)

2015

Value ($bn)

2015

Value ($bn)

2015

Value ($bn)

China

75.9

EU (28)

5.6

China

29.5

EU (28)

29.3

EU (28)

48.8

China

4.2

EU (28)

12.9

United States of America

11.2

United States of America

34.2

India

3.4

India

5.7

China

4.2

India

23.3

Saudi Arabia, Kingdom of

1.5

United States of America

4.8

Japan

2.8

Thailand

12.9

Thailand

0.8

Thailand

4.8

Canada

2.0

Japan

9.9

United States of America

0.8

South Africa

2.5

India

1.4

Switzerland

6.9

Japan

0.8

Chinese Taipei

1.7

Turkey

1.2

South Africa

6.6

Pakistan

0.5

Japan

1.3

Thailand

0.9

Canada

5.8

Malaysia

0.3

Saudi Arabia, Kingdom of

0.9

Australia

0.8

Saudi Arabia, Kingdom of

5.4

Zimbabwe

0.3

Canada

0.7

Russian Federation

0.7

Grand Totala

229.8

Grand Totala

18.2

Grand Totala

64.8

Grand Totala

54.6

Share of top 10:

74.9%

Share of top 10:

88.3%

Share of top 10:

95.3%

Share of top 10:

91.7%

a             "Grand Total" refers to sum of available reporters (importers).

Source:   UN Comtrade.

 

3.18.  The major trading partners for exports and imports of each individual LDC can be consulted in Table 2 of the Addendum (WT/COMTD/LDC/W/64/Add.1).


3.3  Services Trade Developments

3.19.  Statistics on trade in commercial services reflect the new services classification contained in the 6th edition of the IMF Balance of Payments Manual (BPM6). Thus, data presented in this paper are not comparable to previous editions.[6]

3.20.  In 2015, LDCs' exports of commercial services expanded to US$36 billion, up by 1%. This trend contrasts with the performances recorded by other developing economies and by the developed group, which saw sharp declines. As a result, the share of LDCs in world exports of commercial services increased to 0.8%. Although in a steady rise over recent years, LDCs' export participation remained overall negligible. On the imports side, LDCs' payments for services reached US$75 billion in 2015, contracting by 8%, due to dropping imports of other commercial services. Participation in global imports stood at 1.6%.

3.21.  LDCs' services exports continue to be dominated by low- to middle-skilled services sectors, such as travel (tourism) and transport. Their aggregate contribution, in 2015, reached 73.4% of total services exports compared to 56.7% for other developing economies and 37.7% for developed economies.

Chart 9: LDCs commercial services exports by region, 2005-2015

(Billion dollars and percentages)

Source:   WTO-UNCTAD-ITC estimates.

 

3.22.  In 2015, LDCs' services exports growth was fostered by the sustained expansion of the tourism sector. Travel exports rose by 6%, reaching some US$19 billion, led in particular by LDCs in Asia (+8%). Rapid growth reflected increasing inflows of international tourists in particular to leading LDC travel exporters. For example, in 2015, international tourist arrivals to Myanmar grew by 52% and in Cambodia by 6%. However, LDCs' payments for travelling abroad also increased, estimated to have expanded by 3% in 2015. Tanzania remained the largest travel spender among the group.

Chart 10: Growth in trade in commercial services by economic grouping, 2015

(Annual percentage change)

Source:   WTO-UNCTAD-ITC estimates.

 

Chart 11: Growth in LDC exports of commercial services by selected sector, 2015

(Annual percentage change)

Source:   WTO-UNCTAD-ITC estimates.

 

3.23.  LDCs' transport receipts contracted only by 1%, much less than for the rest of the world (‑10%) as exports from Ethiopia, the main LDC transport exporter, recorded positive growth. Transport imports decreased by 2%. Trade other commercial services fell, with exports down by 9%, and imports by 15%.[7] Goods–related services exports grew by 6%, while imports stagnated.


3.24.  Goods-related services is a new aggregation of services in BOP statistics, which includes "manufacturing services on physical inputs owned by others" and "maintenance and repair services n.i.e.". The first category covers essentially manufacturing on a contract basis including activities such as processing, assembly, labelling, packing, etc. The second comprises maintenance and repair work by residents of an economy on goods that are owned by non-residents and vice versa. Many economies, in particular LDCs, are not yet collecting statistics for these new services arising from globalization and the fragmentation of the production process across different economies. Thus, data should be taken with caution.

3.25.  In 2015, LDCs' services trade remains concentrated within a few economies. The top ten leading exporters accounted for more than two-thirds of the group’s services receipts, a proportion virtually unchanged since 2005. Starting in 2014, Myanmar ranks as the largest exporter of services among the LDCs, boosted by rising exports of goods-related services, which, as mentioned above, are not yet recorded by most LDCs. For imports, Angola alone represented one‑quarter of the group’s total commercial services payments. Annex Table 5 provides services exports for individual LDCs by sector.

3.26.  The LDCs, as a group, are net commercial services importers. Over the years, the LDCs' services trade deficit has widened reaching US$39 billion in 2015 up from US$16.3 billion in 2005. However, while both the transport sector and "other commercial services" sectors have experienced persistent trade deficits, travel (tourism) has been recording an expanding surplus since 2005. In 2015, the travel surplus attained US$11.4 billion.

MARKET ACCESS FOR PRODUCTS OF EXPORT INTEREST TO LDCS

4.1  Duty-free market access granted by selected Members

4.1.  Table 7 provides statistics on duty-free market access accorded to LDCs by selected Members, which have notified LDC preference schemes to the WTO. The preferential LDC schemes of Australia, New Zealand, Norway and Switzerland provides full duty‑free market access for LDC exports. For Canada, Chile, the EU and Japan, 97% or more of their tariff lines are free of duty for products originating from LDCs. In 2014, China and India considerably improved the duty-free coverage of their LDC schemes, with around 95% of their tariff lines being free of any import duty. Imports from LDCs were subject to trade‑weighted average duties of 0.3% and 1.4% in China and India, respectively.

4.2.  In 2014, LDCs exported the highest number of products (in terms of national tariff lines) to the EU, followed by China, Canada and the United States. In dollar terms, half of LDC exports were dutiable under the Unites States' GSP LDC scheme, with a trade-weighted average tariff of 8.2%. However, eligible LDCs enjoy significant duty-free access to its market under the Africa Growth and Opportunity Act (AGOA) and the Caribbean Basin Initiative. For instance, the United States provided 97.5% duty-free market access to LDC beneficiaries of the AGOA. Hong Kong, China; and Singapore, have no LDC preference scheme but almost all LDC products enter their markets duty‑free on an MFN basis.


Table 7: Duty-free market access under LDC schemes in selected Members, 2014

Market

Sector

LDC duty scheme

Imports from UN-LDC countriesb
(million US$ and percentage)

Number of tariff lines

Number of tariff lines with imports from LDC beneficiariesa

Dutiable

Duty free (%)

Total

Dutiable under MFN

Dutiable under LDC scheme

TOTAL

Duty free (%)

Weighted applied dutyc

Australia

Total

0

100.0

985

633

0

854.9

100.0

0.0

Ag

0

100.0

138

44

0

40.2

100.0

0.0

Non-ag

0

100.0

847

589

0

814.6

100.0

0.0

Canada

Total

105

98.6

2,154

964

1

3,451.1

99.9

0.0

Ag

105

92.8

375

185

1

82.5

99.4

0.0

Non-ag

0

100.0

1,779

779

0

3,368.6

99.9

0.0

Chile

Total

41

99.5

468

468

0

504.4

100.0

0.0

Ag

41

97.1

23

23

0

0.9

100.0

0.0

Non-ag

0

100.0

445

445

0

503.4

100.0

0.0

Chinad

Total

636

95.1

3,345

2,994

87

71,377.7

97.8

0.3

Ag

143

90.5

241

225

27

1,915.0

71.3

5.1

Non-ag

493

95.7

3,104

2,769

60

69,462.7

98.6

0.1

European Union

Total

91

99.0

4,182

3,197

8

49,144.3

100.0

0.0

Ag

73

96.5

714

525

6

3,877.7

100.0

0.0

Non-ag

18

99.8

3,468

2,672

2

45,266.6

100.0

0.0

Iceland

Total

707

91.8

-

-

-

-

-

 

Ag

707

63.3

-

-

-

-

-

-

Non-ag

0

100.0

-

-

-

-

-

-

India

Total

674

94.1

1,619

1,547

205

13,847.9

95.0

1.4

Ag

343

77.1

290

268

95

2,825.1

87.4

6.4

Non-ag

331

96.7

1,329

1,279

110

11,022.8

97.0

0.1

Japan

Total

197

97.9

1,078

718

23

6,215.0

99.3

0.1

Ag

69

96.5

158

97

4

445.9

99.8

0.0

Non-ag

128

98.3

920

621

19

5,769.1

99.2

0.1

Korea, Republic of

Total

1,187

90.3

1,430

1,265

167

5,822.9

81.5

1.5

Ag

696

59.7

222

211

94

228.8

51.3

20.7

Non-ag

491

95.3

1,208

1,054

73

5,594.1

82.7

0.8

New Zealande

Total

0

100.0

795

519

0

97.4

100.0

0.0

Ag

0

100.0

108

38

0

19.2

100.0

0.0

Non-ag

0

100.0

687

481

0

78.2

100.0

0.0

Norway

Total

0

100.0

954

300

0

385.6

100.0

0.0

Ag

0

100.0

146

68

0

31.5

100.0

0.0

Non-ag

0

100.0

808

232

0

354.0

100.0

0.0

Russian Federation

Total

7,415

36.3

-

-

-

-

-

-

Ag

997

62.8

-

-

-

-

-

-

Non-ag

6,418

28.3

-

-

-

-

-

-

Switzerland

Total

0

100.0

1,298

1,090

0

3,707.7

100.0

0.0

Ag

0

100.0

292

226

0

160.8

100.0

0.0

Non-ag

0

100.0

1,006

864

0

3,546.9

100.0

0.0

Chinese Taipei

Total

6,159

31.0

858

689

624

3,890.3

96.9

0.4

Ag

1,145

23.7