Palace, Bhutan
Geneva: Bhutan has graduated from the Least-Developed Countries (LDC) status which means an important milestone in the development path of LDCs.
However, the phasing-out of international support measures associated with LDC status could present challenges for graduating LDCs in their efforts to continue to integrate into the global economy.
Bhutan is the seventh country to graduate from LDC status following Vanuatu in 2020, Equatorial Guinea in 2017, Samoa in 2014, Maldives in 2011, Cabo Verde in 2007 and Botswana in 1994.
Decisions on LDC graduation are taken by the United Nations upon recommendation from the UN Committee for Development Policy, an advisory body to the UN Economic and Social Council. The decisions are based on certain socio-economic thresholds.
At a meeting of the Sub-Committee on Least Developed Countries (LDCs) on December 13, 2023, World Trade Organization (WTO) members welcomed Bhutan’s commitment to revitalizing its negotiations on joining the WTO and congratulated the country on its graduation from LDC status.
The Secretariat of the United Nations Committee for Development Policy updated WTO members on the LDC graduation process and the support measures available to graduating LDCs.
Deputy Director-General Xiangchen Zhang praised members for supporting LDCs on the path to graduation. He highlighted the General Council decision of October 2023 encouraging WTO members to provide a transition period for the withdrawal of support measures, such as duty-free and quota-free programmes, to LDCs after graduation.
“The successful experience of recently acceded LDCs can serve as an inspiration for Bhutan’s leaders and trade negotiators as they resume their accession process,” DDG Zhang said in a video message.
Bhutan’s WTO Ambassador, Tenzin Rondel Wangchuk, said: “Bhutan’s economy has undergone a significant transformation. Moving away from a heavy reliance on agriculture, we have actively promoted economic diversification and invested in infrastructure development, education and healthcare to improve standards of living and human development indicators. Today is a proud moment for the Bhutanese people and our development partners who have stood by our side unconditionally every step of the way.”
The chair of the Committee on Trade and Development, Ambassador José R. Sánchez-Fung of the Dominican Republic, stated: “It is very positive to be witnessing members’ goodwill and support for Bhutan’s continued economic prosperity. We look forward to welcoming Bhutan as a fully-fledged member of the WTO in the near future.”
Finland’s WTO Ambassador, Heidi Schroderus-Fox, who chairs the Enhanced Integrated Framework’s Steering Committee, said: “It is very heartening to see Bhutan’s economic development efforts come to life. That is what trade development partnerships are all about lasting positive impact on people’s lives. I would like to congratulate Bhutan for achieving this milestone.”
“I would like to congratulate Bhutan on this historic achievement. We have partnered in Bhutan’s socio-economic development since the 1960s and we continue to deepen our cooperation in trade, investment and connectivity, as well as technology and education,” said India’s WTO Ambassador, Brajendra Navnit.
With Bhutan’s graduation, 45 countries remain on the LDCs list, of which 15 are on the path to graduation. Ten are WTO members: Angola, Bangladesh, Cambodia, Djibouti, Lao PDR, Myanmar, Nepal, Senegal, Solomon Islands and Zambia. Comoros, Sao Tome and Principe, and Timor-Leste are in the process of joining the WTO; the other two are Kiribati and Tuvalu.
– global bihari bureau
