UN sets up group to review support for LDC graduation

The United Nations has established a working group to review and update its support framework for countries graduating from the least developed country (LDC) category, as Bangladesh and Nepal await a decision on their requests to defer graduation.

The ad hoc “Working Group on Smooth Transition for Graduating LDCs” will be led by the permanent representatives of Angola and Finland, according to a recent ministerial declaration of the 81st United Nations General Assembly (UNGA).

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The group is mandated to conduct a comprehensive review of existing provisions, support measures, including those introduced under the Doha Programme of Action, such as the Sustainable Graduation Support Facility (iGRAD), and other areas with relevance to smooth transition, according to the UN.

It will assess the implications of graduation, particularly the impact of the loss of LDC-specific international support measures, drawing on country experiences and existing assessments.

The group will also identify challenges faced by graduating countries and their development partners in designing, preparing and implementing smooth transition strategies.

Bangladesh, Nepal and Cambodia are scheduled to graduate from the LDC category in late November this year. However, Bangladesh and Nepal have applied for deferment of their graduation.

Officials who attended the UNGA sessions said the requests are under consideration and that a decision could come from the General Assembly this month.

The ministerial declaration also said LDCs can derive significant benefits from a universal, rules-based, open, transparent, predictable, inclusive, non-discriminatory and equitable multilateral trading system under the World Trade Organization.

The declaration expressed concern that the multilateral trading system is increasingly under threat, with trade restrictions, including tariffs inconsistent with WTO rules, principles and commitments, rising globally amid heightened trade tensions and stalled multilateral negotiations.