Members stress importance of boosting LDCs’ participation in agricultural supply chains

LDCs' participation in agricultural supply chains

The Centre for the Promotion of Imports from Developing Countries (CBI) outlined its current work in Burkina Faso, Ethiopia, Guinea and Senegal aimed at improving LDCs' agricultural export capacity. Members also heard from the Standards and Trade Development Facility (STDF), which directs close to 60 per cent of its support towards LDCs. STDF activities have helped increase product quality, reduce the use of chemicals and fertilizers and increased awareness of post-harvest practices, it said.

Speakers noted that the evolving regulatory environment, informal trade and climate change are some of the main challenges to sanitary and phytosanitary capacity building in these countries.

To address agricultural export inefficiencies, speakers underscored the importance of multi-stakeholder collaboration, including among government authorities, the private sector and academic representatives. The role of market intelligence, skills transfer, innovation and South-South cooperation were also highlighted as key drivers of agricultural trade competitiveness. Digitalization and regional integration were identified as opportunities for LDCs to enhance market access.

Small-scale farm producers in LDCs are particularly affected by the costs of certification, laboratory testing and regulatory compliance, speakers noted. Women face gender-related barriers, such as difficulties to access land, financial resources and export opportunities, they said.  Referring to the dried mango value chain in Burkina Faso and the peppercorn value chain in Lao PDR, speakers underscored challenges associated with high tariffs, complex sanitary and phytosanitary requirements, limited awareness of best agricultural practices, financial constraints and infrastructure barriers.

At the same time, innovative approaches are being developed in Lao PDR, such as certification processes involving several stakeholders to ensure the quality of organic food and knowledge sharing.

Speakers stressed the need for strengthening partnerships and targeting support to harness LDCs' potential in the agricultural sector and improve economic diversification.

Sub-Committee on LDCs

In the Sub-Committee on LDCs, the International Trade Centre presented its Global Trade Helpdesk. A presentation on the WTO Fisheries Funding Mechanism provided information on its monitoring, evaluation and learning framework. The chair of the Sub-Committee on LDCs, Ambassador Ib Petersen of Denmark, provided an update of the progress made in the discussions on graduation from LDC status since the beginning of the year.

Members heard from the WTO Secretariat that the LDCs' share in world trade of goods and commercial services has nearly doubled in the past 30 years, from 0.59 per cent in 1995 to 1.17 per cent in 2023. At the same time, most LDCs continue to rely on a small range of products. "Further efforts are needed to enhance LDCs' participation in world trade and take advantage of emerging trade opportunities," Ambassador Petersen said. A video of the latest trends in LDCs' trade can be watched here.

Members also considered a new communication on strengthening the implementation of the Guidelines for the Accession of LDCs and its Addendum, submitted by Djibouti on behalf of the LDC Group and India.

There are currently 44 LDCs, of which 37 are WTO members. Four are in the process of joining the WTO. These are Ethiopia, Somalia, South Sudan and Sudan.

More information about the experience-sharing session is available here.

More information on the Sub-Committee on LDCs can be found here.

Share