Making WTO Membership Work for Least-developed Countries

This policy brief by the International Institute for Sustainable Development (IISD) analyzes the World Trade Organization (WTO) accession experiences of Nepal and Cambodia, the first least-developed countries (LDCs) to join the WTO since 1995. The document examines the challenges of the accession process, the stringency of the resulting commitments, and the difficulties in implementing legislative reforms, concluding that WTO membership has had limited direct impact on trade expansion due to persistent supply-side constraints and inadequate post-accession technical assistance.

• The WTO accession process for Nepal and Cambodia was strenuous and time-consuming, failing to realize promised simplifications for LDCs. Both countries followed standard complex procedures, with Cambodia's process lasting approximately 10 years and Nepal's taking over eight years from re-application.
• Despite WTO assurances to exercise restraint, Nepal and Cambodia agreed to trade commitments more stringent than those of many incumbent LDC members. This includes very low average bound tariff rates—26 per cent for Nepal and 19 per cent for Cambodia—and high tariff binding coverage (99.4 per cent and 100 per cent respectively).
• Cambodia accepted specific obligations that exceeded standard TRIPS Agreement provisions and LDC norms. It agreed to join the International Convention for the Protection of New Varieties of Plants (UPOV) and was uniquely required to bind its agricultural export subsidies at zero.
• Both countries failed to meet their ambitious legislative reform targets by the end of 2007. Cambodia adopted only 24 of 47 committed laws and regulations, while Nepal enacted three of 10 new laws and eight of 25 amendments.
• WTO membership has had limited direct impact on trade expansion or diversification in the short term. While it increased predictability for duties on non-preferential products, significant obstacles remain, such as U.S. garment export exclusions from the Generalized System of Preferences (GSP) and cumbersome rules of origin.
• The most significant indirect benefit of accession has been the potential to attract foreign direct investment (FDI) by signaling a stable business environment. This is evident in Cambodia, which saw an almost six-fold increase in FDI since 2003, though Nepal's experience shows membership does not guarantee such investment.
• Technical assistance was vital during the negotiation phase but became inadequate after membership. There is a critical lack of support to address supply-side constraints, such as poor infrastructure, high electricity costs, and inadequate certification bodies for safety and quality standards.

APA

Baumüller, H., Adhikari, R., & Dahal, N. (2008). Making WTO Membership Work for Least-developed Countries. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/tkn_making_wto_membership_work.pdf

Chicago

Baumüller, Heike, Ratnakar Adhikari, and Navin Dahal. Making WTO Membership Work for Least-developed Countries. International Institute for Sustainable Development, 2008. https://www.iisd.org/system/files/publications/tkn_making_wto_membership_work.pdf.

Wikipedia

{{cite report |last1=Baumüller |first1=Heike |last2=Adhikari |first2=Ratnakar |last3=Dahal |first3=Navin |title=Making WTO Membership Work for Least-developed Countries |publisher=International Institute for Sustainable Development |date=September 2008 |url=https://www.iisd.org/system/files/publications/tkn_making_wto_membership_work.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{baumller2008making, author = {Baumüller, Heike and Adhikari, Ratnakar and Dahal, Navin}, title = {{Making WTO Membership Work for Least-developed Countries}}, institution = {International Institute for Sustainable Development}, year = {2008}, month = sep, url = {https://www.iisd.org/system/files/publications/tkn_making_wto_membership_work.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }