Lao PDR addresses challenges to agricultural trade facilitation

In a presentation to the Policy Dialogue session “Good practices in agricultural trade facilitation”, Mr. Chanhphasouk Vidavong, Deputy Director of Technical Division, Economic Research Institute for Trade, Ministry of Industry and Commerce, Lao People’s Democratic Republic (PDR), outlined good practices and challenges to trade facilitation in agricultural products in his country.

Seventy per cent of the country’s population depends on agriculture for a livelihood, the majority being smallholders. There is little value-addition for agricultural products and many agribusinesses lack production expertise and innovation capacity. There is limited understanding of the implications of technical barriers to international agricultural trade, including sanitary and phytosanitary measures. Being landlocked and with limited trade facilitation infrastructure, is also a major challenge.

A number of ministries, such as those dealing with agriculture, fisheries, industry and commerce are formulating policies to accelerate technology transfer for trade facilitation. A national trade facilitation body is being set up to improve coordination among government agencies responsible for border management issues. Lao PDR is also implementing a national single window for export and import and has set up the Lao Trade Information Portal to enhance trade transparency and predictability. It is necessary to develop private sector capacity to comply with trade rules and regulations.

The Lao PDR experience with agricultural trade facilitation has shown the need to increase marketing knowledge and upgrade information and communications technology (ICT) capacities.

 Reporter: Maame Agyeben, TID, ESCAP