The least-developed countries (LDC) services waiver
Published 26 June 2025
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Summary
The least-developed countries (LDCs) services waiver (the waiver) is a World Trade Organization (WTO) mechanism that allows members to offer preferential access to their services markets for least-developed countries.
LDCs are a group of low-income countries that:
- face structural impediments to sustainable development
- are highly vulnerable to economic shocks
There are 44 countries that have been designated as LDCs by the United Nations (UN). [footnote 1]
Trade is a prerequisite for development. In 2020, just 0.53% of world commercial services exports originated in LDCs – down from the 0.59% recorded in 2011. [footnote 2]
WTO members have a shared ambition to increase LDCs’ share in global services exports as a means of supporting their efforts to diversify their economies and build economic resilience.
The waiver aims to grow LDC participation in the global services sector by allowing WTO members to grant LDC service exporters non-reciprocal preferential access to their markets. These preferences are designed to allow LDCs to export services more easily to preference-granting members.
The UK’s commitments under the WTO’s General Agreement on Trade in Services (GATS) form the basis for services market access into our country, with additional preferences available to LDCs under the waiver. Through our GATS commitments, all WTO trading partners are guaranteed to benefit from a liberalised services environment in the UK. The UK’s preferences under the waiver supplement this.
Services trade is intangible. Examples of trade in services include:
- a lawyer providing legal advice through online platforms to clients in a foreign jurisdiction
- an architect travelling abroad to consult on a project
When a tourist visits a country to explore museums or national parks, that country is also exporting cultural services.
The UK’s role in the waiver
The UK government champions the role of services trade in supporting development and believes that economic growth in LDCs can be strengthened by increasing their participation in global services trade.
In January 2021, the UK government made a notification at the WTO of the preferences it grants to LDC services suppliers under the LDC services waiver. This notification reflects the UK’s continuation of the commitments it had made as an EU member under the EU’s 2015 notification.
In addition to the UK’s existing GATS offer commitments, the preferences in the waiver provide LDCs with:
- increased certainty and clarity for their services exports to the UK
- preferential terms for accessing the UK market for contractual service suppliers and independent professionals travelling to the UK on a temporary basis
In 2014, the LDC Group put forward a collective request at the WTO to identify areas of particular interest to them as priorities for preferential treatment. The UK’s preferences were developed to reflect some of the services sectors and modes of supply highlighted by the LDC Group in this request.
Preferences have also been granted on a sectoral basis in areas prioritised by the LDC group, such as:
- accounting
- bookkeeping
- architectural and urban planning services
- advertising
- translation and interpretation services
In addition to extending preferences for sectors covered by the GATS, the UK has extended preferences to a range of sectors not included in its original GATS offer. Examples of these sectors include:
- cosmetic treatment
- manicuring and pedicuring services
- hairdressing services
- washing, cleaning and dyeing services
Timeline
2005
During the sixth WTO Ministerial Conference in Hong Kong, the challenges that LDCs faced in exporting services were recognised and officially noted.
2011
The eighth WTO Ministerial Conference in Geneva then adopted the LDC Services Waiver allowing members to grant preferential market access to LDC services suppliers in specific sectors.
2013
No WTO member made notifications under the waiver between 2011 and 2013. As a result, during the ninth WTO Ministerial Conference in Bali, a decision was adopted on operationalising the waiver, setting out steps to encourage members to make use of it.
2014
In July 2014, the LDC group at the WTO submitted their ‘Collective Request’, outlining the areas in services where they sought preferential treatment.
2015
In February 2015, a high-level meeting took place to discuss the request, and at this meeting, more than 25 developed and developing countries indicated which sectors and modes of services supply they would be willing to grant preferential treatment for LDCs.
2021
The UK made a notification at the WTO of the preferences it intended to grant to LDC services suppliers under the LDC Services Waiver, replicating the commitments it had made as part of the EU’s 2015 notification.
2023
As of June 2023, more than 50 WTO members, representing nearly 90% of global services trade, have granted preferences to LDCs under the waiver.