The Covid-19 crisis has dealt the biggest blow to least developed countries (LDCs), according to a presentation by the WTO Secretariat, which highlighted a 10.3% decline in exports of merchandise trade in 2020 compared to 2019 and a 10.5% decline in imports.
This is sharper than the global 7.7% decline in exports and 7.8% in imports over the same period.
Due to their dependence on travel exports, LDC exports of services are estimated to have dropped around 40% in the first three quarters of 2020, double the decline experienced by the rest of the world (19%).
There’s consensus that the ongoing crisis has revealed the importance of building LDCs' trade infrastructure and strengthening their capacities to keep the pandemic in check and better integrate into the world economy. Supporting micro, small and medium-sized enterprises and creating jobs will be essential to support economic recovery.
Fekitamoeloa Katoa Utoikamanu, United Nations under-secretary-general and high representative for the least developed countries, landlocked developing countries and small island developing states, said that international trade was expected to remain central in the next programme of action for LDCs, alongside other issues such as the need to improve access to sustainable energy, finance, employment and achieving food security. Lifting LDCs out of poverty and attaining the United Nations (UN) Sustainable Development Goals also features prominently on the agenda. In addition, the international community is looking to accelerate the graduation of countries from LDC status in a sustainable manner.
There are currently 46 least-developed countries on the UN list, 35 of which are WTO members.
Chad, on behalf of the LDC Group, called on the international community to seek an ambitious new programme of action, fine-tuned to the needs of LDCs.
