EVALUATING THE EFFECTS OF TRADE ON LAO PDR'S LDC GRADUATION

Abstract

Lao PDR has achieved remarkable progress in terms of economic development, but it still faces many challenges to achieve its goal of graduation from LDC status by 2026. LDC graduation also comes with some challenges, including the phasing out of international support measures that are associated with LDC status, which will need to be addressed. The objectives of this paper are to identify lessons learned from other countries’ LDC graduation; analyze trade access to the market and expected impacts under LDC and evaluate the perceptions of private sectors on LDC graduation. The Export Potential Indicator was applied to evaluate potential products after graduation from LDC. As there are no changes in tariff preferences and huge export potential in Thailand, Vietnam, and China markets therefore the impact on exports after is expected to be minor. However, LDC graduation is projected to significantly impact exports to the European Union market.