Accessions of Least Developed Countries
Ten of the 26 current applicants for WTO accession are least developed countries (LDCs), about 40 percent. Countries with this designation are considered to be the world's poorest and most underdeveloped based on a number of criteria.
As part of broader efforts to address the concerns of developing countries in the context of work on the Doha Round, in December 2002, the WTO General Council formalized guidelines for a streamlined and accelerated accession process for LDCs, the General Council Decision on Accession of Least-Developed Countries (WT/L/508).
Key points of this decision included:
- Automatic recourse to "special and differential" rules in the WTO Agreements;
- Restraint by Members in seeking goods and services market access commitments;
- Account taken of the commitments of existing WTO LDC Members;
- Recourse to transitional arrangements foreseen in WTO Agreements from the date of accession accompanied by action plans for compliance supported by technical assistance and capacity building measures; and
- Participation in plurilateral agreements (defined to include tariff sectoral agreements) is optional.
Under these guidelines, the accession process becomes a tool for economic development, incorporating the applicant's own development program and laying out an action plan for progressive implementation of WTO rules. The market access schedules and protocols of accession developed under these guidelines reflect the need to address realistically these countries real trade capacity deficiencies and the difficulties they face in achieving normal WTO accession objectives.
Using the guidelines, WTO Members pledged to exercise restraint in seeking market access concessions, and to agree to transitional arrangements for implementation of WTO Agreements.
The guidelines provide more automaticity to use of these flexibilities in accession negotiations, but they do not mandate a "one size fits all" template for commitments, thereby preserving the ability of WTO Members to use the process to promote reform and build trade capacity in the applicant economic regimes while simplifying and streamlining the accession process.
The United States and other developed WTO Members have sought to support the transitional goals established in the accession process with LDCs with technical assistance to meet the benchmarks included in the protocol commitments. In this way, the accession process becomes a development tool and an opportunity to mainstream the gains from international trade in their development programs, to build trade capacity, and to provide a better economic environment for investment and growth.
Status of LDC Accessions
WTO Members are committed making WTO accession more accessible to these applicants and constantly monitor the status of the negotiations. An overview of the status of LDC accessions was recently produced by the WTO Secretariat at the request of the WTO Subcommittee on Least Developed Countries.
Afghanistan's Working Party on Accession was established in December 2004, and the Memorandum on the Foreign Trade Regime (MFTR) was circulated in April 2009. A first Working Party meeting took place in January 2011 and a second is expected in 2012. No offers have been circulated on goods or services market access.
As an LDC, Afghanistan's accession will be negotiated within the guidelines established in the Decision of the General Council on the Accession of Least Developed Countries. The United States is providing technical assistance through the United States Agency for International Development (USAID), including drafting documentation, training, legal drafting, and institution building.
Bhutan's Working Party on Accession was established in February 2001, and the MFTR was circulated two years later. The last WP meeting was held in January 2008 to review additional documentation and conduct market access negotiations for goods and services. The United States met with Bhutan in June 2008 to review new WP documentation and provide informal comments. Bhutan suspended negotiations after it established its Constitution in July 2008 and a new government was installed.
Comoros submitted its application to accede to the WTO in February 2007. The General Council established a Working Party to examine the application of the Union of the Comoros in October 2007. To date, Comoros has not yet submitted initial documentation to activate the accession negotiations and the Working Party has not met.
Equatorial Guinea submitted its application to accede to the WTO in February 2007. The General Council established a Working Party to examine the application of Equatorial Guinea in February 2008. To date, Equatorial Guinea has not yet submitted initial documentation to activate the accession negotiations and the Working Party has not met.
Ethiopia applied for WTO accession in January 2003. A Working Party was established in February 2003 and Ethiopia initiated negotiations with the submission of its initial documentation in a Memorandum on Foreign Trade Regime in January 2007. Working Party meetings were held in May 2008 and 2011 to review Ethiopia's trade regime. Ethiopia has not yet provided responses to questions submitted by WTO Members at the 2011 meeting, and no further WP meetings have been scheduled. No market access offers have been circulated to date.
The United States provides technical assistance through USAID in the form of a resident advisor for drafting documentation, training, legal drafting, and institution building in the areas of customs, licensing, intellectual property, standards and sanitary measures.
Lao People’s Democratic Republic (Lao PDR)
Lao PDR’s seventh Working Party meeting was held in June 2011, to continue review of the trade regime and the draft Working Party report, and to monitor ongoing legislative implementation of WTO provisions. The United States and Lao PDR also conduct bilateral market access negotiations and maintain an ongoing dialogue on efforts of the Lao PDR to accede to the WTO through meetings in capitals, on the margins of WTO meetings, and through digital video conferences.
Through USAID, the United States is also providing technical assistance to Lao PDR which includes help with the preparation of documentation and in-country training, like that which occurred in February 2009, in Vientiane. Most recently, the United States has established the “Luna-Lao Project”, a U.S. technical assistance program which includes a resident advisor in Vientiane. Through this program and on-going bilateral discussions, the United States works with the Ministry of Industry and Commerce to advance Lao PDR’s accession-related work
Liberia
Liberia submitted its application to accede to the WTO in June 2007. The General Council established a Working Party to examine the application of the Republic of Liberia in December 2007. The MFTR was circulated in April 2011, and Liberia is working on responses to comments and questions provided on that document. To date, there have been no market access offers circulated, nor has the Working Party met.
Sao Tomé and Principe submitted its application to accede to the WTO in January 2005. A Working Party to examine the application of Sao Tomé and Principe was established at the General Council meeting in May 2005. To date, Sao Tomé and Principe has not yet submitted initial documentation to activate the accession negotiations, and the Working Party has not met.
Sudan has had two Working Party meetings, the last held March 10, 2004. There has been no activity on Sudan's accession since it tabled revised market access offers for goods and services in October 2006.
Yemen's Working Party on Accession was established in July 2000 and the Memorandum on the Foreign Trade Regime (MFTR) was circulated in November 2002. The first Working Party meeting was held two years later. Since that time eight further WP meetings have been held, the last in September 2010, to continue review of Yemen's trade regime and conduct bilateral negotiations on revised market access offers on goods and services. Yemen’s accession process is well advanced, but subsequent political disruption in Sanaa during 2011 has delayed further work on the accession at this time.
The United States and Yemen maintain an ongoing dialogue on Yemen's efforts to accede to the WTO through meetings in capitals, on the margins of WTO meetings, and through digital video conferences. Through USAID and the U.S. - Middle East Partnership Initiative, the United States is also providing technical assistance to Yemen to include help with the preparation of documentation and targeted assistance related to customs valuation and technical barriers to trade.