LLDC dedicated session on the margins of the WTO Public Forum

(Geneva time)

Enhancing integration of Landlocked Developing Countries (LLDCs) into global trade for sustainable covid-19 recovery: The role of digital technology

Background

LLDCs lack direct territorial access to the sea and are isolated from world markets. Complicated administrative transit procedures, multiple border crossings and inadequate infrastructure all substantially increase LLDCs trade costs. About 80% of LLDCs are commodities dependent and consequently vulnerable to shocks. Structural transformation is therefore fundamental to achieve sustainable recovery in LLDCs. LLDCs trade costs are estimates to be about 1.4 times higher than their coastal counterparts. The key prerequisites for technological advancement also lag behind. About 65% of LLDC population are still offline and only 58% had access to electricity in 2019.

Digital technology and its effective use can help LLDCs reduce their trade costs and achieve structural transformation and therefore enhance their trade performance and sustainable COVID-19 recovery.

Digital technologies have been found to have transformative potential in global commerce and reducing trade costs. Better ICT connectivity and digital technologies can help LLDCs to enhance their productivity and competitiveness and to move up the value chain ladder. Digital divide however remains one of the key challenges for LLDCs and therefore these countries are unable to take advantage of the growing technologies to diversify their trade and integrate into global trade as well as reduce their high trade costs. One of the key challenges hindering LLDCs’ trade growth is their high trade costs and undiversified exports rendering these countries vulnerable to shocks as demonstrated by the COVID-19 Pandemic. Digital technologies are fundamental in reducing trade costs and can be a driver for structural transformation.

Objective

The objective of this session is to discuss policy options for addressing LLDCs challenges and how LLDCs can leverage digital technologies to enhance structural transformation and their integration into trade and for inclusive recovery.

The session will also discuss policy options to address LLDCs ICT connectivity issues and the digital divide and how LLDCs can leverage digital technologies to enhance their integration into trade and achieve structural transformation for inclusive recovery. Finding solutions to deepening of ICT connectivity will contribute towards a sustainable and inclusive recovery in LLDCs.

The session will address the following questions:

• What is the role of ICT connectivity and digital inclusion in trade integration of LLDCs and in achieving sustainable COVID-19 recovery?
• What challenges are LLDCs facing in their efforts to leverage digital technologies to enhance their trade capacity?
• What policy options (at all levels-global, regional and national) and concrete actions are necessary to enable LLDCs to harness digital technologies and seize the new trading opportunities?

Participation

The meeting will be attended by representatives from LLDCs, development partners, UN organizations and other relevant international and regional organizations as well as the private sector and academia.

Statements

• Statement by Ms. Rabab Fatima, Under-Secretary-General, OHRLLS
• Presentation by Shamika Sirimanne, Director, DTL, UNCTAD
• Presentation by Sofie Maddens, ITU Telecommunications Development Bureau

Organizers

The meeting will be organized by Botswana as Chair of the Group of LLDCs and UN-OHRLLS and The International Think Tank for Landlocked Developing Countries (ITTLLDC).