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Emerging Trade Opportunities for LDCs from the Green Transition

During the 9th Global Review of Aid for Trade held in Geneva in June 2024, the WTO launched a policy note titled "LDC Trade Priorities – Looking Forward." This note delves into the crucial role of trade in advancing the socio-economic development objectives of Least Developed Countries (LDCs). TULIP Consulting's Director, Colette van der Ven, contributed to this policy note. Her contribution, which focuses on the green transition, emphasises the importance of ensuring that this transition does not create a green divide that leaves LDCs behind.

She highlights the need for a narrative shift at the WTO to avoid the green divide. Developed countries must recognise the negative implications of green trade measures on LDCs and prioritize an approach that aligns with environmental and developmental goals. Developed countries must also integrate the principles of common but differentiated responsibilities and respective capabilities in green trade discussions. LDCs must adopt a proactive stance on green trade at the WTO, balancing both offensive and defensive interests. There is also a need for institutional arrangements that simultaneously address all three pillars of the trade-environment-development nexus.

To implement this narrative shift concretely, she outlines several key strategies, including enabling LDCs to access goods, services, and technologies necessary for the green transition, helping LDCs develop new export markets for environmental goods and services in which they have a comparative advantage, and facilitating LDCs' access to environmentally sound technologies.


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