The multilateral decision on duty free quota free market access and least developed countries' export performance

This paper assesses whether the export performance of least developed countries (LDCs) has improved after the adoption of the 2005 multilateral Hong Kong Ministerial decision on duty free quota free (DFQF) market access for products originating from LDCs, as compared to the period before the adoption of this decision. The empirical analysis shows that this has indeed been the case. This decision has exerted a far higher positive effect on LDCs' export performance of primary products than on their export performance of manufactured products. It would therefore be desirable that DFQF preference schemes be better utilized to diversify LDCs' exports.