WTO members explore ways of boosting LDCs’ capacity to participate in services trade

Speakers underlined that LDCs' capacity to participate in services trade is hindered by infrastructure issues, skills development, the regulatory environment and limited technological capacity. The importance of international cooperation in tackling these challenges was stressed, with some speakers citing the importance of an Aid for Trade roadmap to address these constraints.

While LDCs' exports of commercial services have grown above the world average in the last decade, their share in global services exports remained at 0.53% in 2022. Stressing the high degree of concentration of LDC services exports in traditional services such as tourism and transport, speakers underlined the potential of high-skilled services sectors, such as information and communication technologies (ICT), finance and business services. Speakers also pointed to significant opportunities in digitally delivered services. 

Deeper integration into regional networks also represents an untapped opportunity for LDCs, speakers underlined. This includes regional trade agreements, such as the African Continental Free Trade Area (AfCFTA) and the Association of Southeast Asian Nations (ASEAN) as well as regional economic communities.

A services provider from Cambodia highlighted that leveraging technologies and embracing digitalization could help increase LDCs' services trade. The Association of Professional Societies in East Africa (APSEA) underlined some of the initiatives undertaken to enhance regional services trade, including participation in trade negotiations, policy formulation and technical assistance provided to services suppliers. Challenges associated with the development of the tourism sector in Mauritania were also discussed, including the need for sustainable tourism projects.

In the regular session of the Sub-Committee on LDCs, the United Nations Economic and Social Commission for Asia and the Pacific, the United Nations Economic Commission for Africa, and the International Trade Centre provided insights into several initiatives aimed at strengthening LDCs' trade capacity in services. The Regional Digital Trade Regulatory Integration Initiative was highlighted as a way of assessing the readiness of LDCs to engage in digital trade.

Information about the experience-sharing session is available here.

There are currently 45 LDCs, of which 35 are WTO members. Seven are in the process of joining the WTO: Comoros, Ethiopia, São Tomé and Principe, Somalia, South Sudan, Sudan and Timor-Leste.

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