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Latin America & Caribbean

Waiting on a waiver - what the WTO's new services initiative could mean for LDCs

Marcus Bartley Johns's picture

Workers sort, repack, and ship goods in Al Obaied Crop Market, North Kordofan, Sudan. Source - Salahaldeen Nadir/World BankThe World Trade Organization (WTO) Trade Facilitation Agreement (TFA) has been getting a great deal of attention since it was finalized at the 2013 Bali Ministerial Conference– and rightly so. As we’ve written before on this blog, trade facilitation is a powerful driver of increased competitiveness and trade performance in developing countries.
But last month, the spotlight at the WTO was on another important decision from Bali—how to maximize the impact of a waiver to support exports of services from Least Developed Countries (LDCs).

At a meeting on February 5, around 30 WTO Members, covering most major export markets for LDCs, set out in concrete terms what preferences they could provide. The preferences cover a wide range of services and modes of supply, as well as regulatory issues that LDCs have identified in a “collective request” to other WTO Members. 

New Voices in Investment: How Emerging Market Multinationals Decide Where, Why, and Why Not to Invest

Gonzalo Varela's picture

Emerging market multinationals (EMMs) have become increasingly salient players in global markets. In 2013, one out of every three dollars invested abroad originated from multinationals in emerging economies.

Up until now, we have had a limited understanding of the characteristics, motivations, and strategies of these firms. Why do EMMs decide to invest abroad? In which markets do they concentrate their investments and why? And how do their strategies and needs compare to those of traditional multinationals from developed countries?

In a book we will launch tomorrow at the World Bank, “New Voices in Investment,” we address these questions using a World Bank and UNIDO-funded survey of 713 firms from four emerging economies: Brazil, India, Korea, and South Africa.

At the Heart of the Matter: Improved Market Access to Food Supplies

Bill Gain's picture
Hi-Las workers weighing and sizing mangoes. Source -

At the Ninth WTO Ministerial Conference held in Bali on December 2013, all WTO members reached an agreement on trade facilitation and a compromise on food security issues, a contentious topic which had previously stalled talks during the 2008 Doha Development Round. The “Bali Package,” as it came to be known, was quickly heralded as an important milestone, reaffirming the legitimacy of multilateral trade negotiations while simultaneously recognizing the significant development benefits of reducing the time and costs to trade.

Seven months after the Bali Ministerial Conference, however, the Trade Facilitation Agreement (TFA) has yet to be ratified as India is concerned that insufficient attention has been given to the issue of food subsidies and the stockpiling of grains. India maintains that agreements on the food security issue must be in concert with the TFA.
Despite the current impasse in implementing the Bali decisions, the food security concern at the heart of the matter sheds light on the importance of improving the agribusiness supply chains of developing countries to ensure maximum efficiencies. Consider the fact that in 2014, farmers will produce approximately 2.5 billion tons of food. Yet, 1.3 billion tons are lost or wasted each year between farm and fork, while 805 million people suffer from chronic hunger.

Power Pools: How Cross-Border Trade in Electricity Can Help Meet Development Goals

Michael Pollitt's picture

Power lines strecth over water. Source - DCCXLIXFor nearly three-fifths of the world population, the lack of access to energy is a major challenge to economic development and poverty reduction.

Increasing cross-border trade in electricity can play a major role in helping overcome these challenges. Trade in electricity can help bring down energy prices, mitigate against power shocks, relieve shortages, facilitate decarbonization and provide incentives for market extension and integration.

Yet, countries have been reluctant to trade electricity across borders. Global exports of electricity are currently around 3 percent of total production. This is an anomaly in the energy sector. Think of oil. Roughly 64 percent of all oil produced is traded between countries.

A recent working paper published by the World Bank looks at the institutional arrangements of regional power pools in both developing regions and those in developed countries. In understanding how the regional integration of electricity markets has developed, the paper is able to draw useful lessons for the promotion of future trade arrangements.

Haïti : de l’impact positif des échanges sur le redressement du pays et son essor économique

Calvin Djiofack Zebaze's picture

A busy Haitian market. Source - Glenda PowersL’horizon semble se dégager pour Haïti, qui poursuit son redressement depuis le séisme dévastateur de 2010. Et cela, grâce (en partie) au commerce extérieur.
Les autorités haïtiennes le savent qui s’emploient, avec le Groupe de la Banque mondiale et d'autres donateurs, à identifier les obstacles aux échanges pour les démanteler et doper ainsi les secteurs exportateurs.
Au début du mois, une équipe de la Banque mondiale s’est rendue à Port-au-Prince pour une semaine de travail avec les principaux acteurs, publics et privés, de la logistique commerciale du pays, notamment des représentants du ministère du Commerce et de l'Industrie. L’objectif ? Discuter de solutions pour renforcer le programme de facilitation des échanges du pays, financé par un fonds fiduciaire multidonateurs conçu pour aider les pays en développement à renforcer leur potentiel économique et à lutter contre la pauvreté grâce au commerce.

How Trade Is Helping Haiti Recover and Grow its Economy

Calvin Djiofack Zebaze's picture

 Sun rising behind clouds in Haiti. Source - Yinan ChenThings are looking up in Haiti as the country continues to rebuild from the devastating 2010 earthquake. And part of this progress is a story of trade.

The Haitian government recognizes this, and is working with the World Bank Group and other donors to identify and remove barriers to trade to better promote export growth.

A World Bank team traveled to Port au Prince earlier this month for a week long workshop with the main stakeholders (public and private) intervening on trade logistic in the country, including the Ministry of Commerce and Industry, in order to discuss ways to strengthen the Haitian Trade Facilitation (TF) program. The program is funded through the Trade Facilitation Facility, a multi-donor trust fund dedicated specifically to helping developing countries realize economic development and poverty reduction through trade.

What Will the Trade Facilitation Agreement Mean for the Aid for Trade Agenda? New e-Book Provides Answers

Jaime de Melo's picture

The world’s 45 Least Developed Countries that are not oil producers (non-oil LDCs) are exporting less and less in the global market place. Between 1985 and 2012, the world market share of non-oil LDCs’ exports of goods and services fell from 1.2 percent to 0.8 percent—all while their share in world population rose from 7.5 percent to 9.9 percent.

The 2005 Aid for Trade (AFT) initiative was designed to arrest this decline. Yet, LDCs’ trade costs continue to fall less rapidly than those of their competitors.

Clearly, it’s time to re-evaluate the AFT initiative.

A new e-book does just that, and, contrary to what some may think, concludes that the initiative has been beneficial. But due to a collective failure to clearly articulate its results, the achievements of the AFT initiative are now at risk as development budgets come under increasing pressure.

Eliminating Customs of Corruption: New Approaches in Cameroon & Afghanistan

Gerard McLinden's picture

Corruption continues to plague customs administrations around the world regardless of their level of development and despite intense public attention.

Recent high profile cases in many first world countries reinforce what we always knew—that no country is immune, and that there are no quick fix solutions available. The very nature of customs work makes it vulnerable to many forms of corruption, from the payment of informal facilitation fees to large scale fraud and other serious criminal activities.

But this blanket generalization belies some genuine progress in countries where reforms are making a measurable impact on operational effectiveness and integrity. 

How Much Cement Do I Export? And Other Weighty Questions

Amir Fouad's picture

WITS is how World Bank economists and users like you can answer tough questions on trade.For client countries of the World Bank, there is no shortage of interest in—or desire for—information on trade flows and market access. Improving trade performance is a critical component of many client countries’ development strategies, and trade data hold the key to understanding how countries are faring in the quest to eliminate trade barriers, increase competitiveness, and turn improved market access into actual trade flows.

But the trade data arena is large and complex, full of topical jargon, different nomenclatures and coding systems, availability constraints, and potentially complicated indicators. For newcomers, trade data navigation can be particularly challenging, which belies the immense value and richness in the wealth of information that has become available and accessible over the past few years.

Enter the World Integrated Trade Solution, or WITS.