Better access to G20 markets boosts LDCs' exports by 15 pct: UN report

The world's poorest countries are barely engaging in global economy, but fully liberalizing trade for these countries into G20 markets could boost their exports by about 15 percent, according to a report released on Thursday by the United Nations Conference on Trade and Development (UNCTAD).

The Key Indicators and Trends in Trade Policy 2016 said that while the least developed countries (LDCs) account for about 12 percent of the world's population, their share in global exports stands at about 1 percent.

"We've seen some progress in the last decade, but the participation of LDCs in the global economy remains marginal," said Guillermo Valles, director of UNCTAD's Division on International Trade in Goods and Services and Commodities.

The report found that LDCs generally trade much less than the size of their economies would suggest. The export-to-GDP ratios of the 48 LDCs are on average about 25 percent, substantially less than the average for other developing countries of about 35 percent.

"Fully liberalising market access for LDCs and eliminating the negative trade effect of non-tariff measures on LDCs would increase their exports by about 15 percent," the report said.

Boosting exports from LDCs could help accelerate economic growth, generate jobs, and provide financial resources for sustainable and inclusive development, the report added.

(APD)