The ARISE Plus project has 3 main objectives including (1) Enhancing regional economic integration, (2) Increasing awareness on trade preferences, and (3) Strengthening support services for smallholders and micro businesses.

Despite challenges posed by COVID-19 and macroeconomic instability, in its five years of implementation, the project has achieved remarkable results. Some of the notable achievements include conducting various trainings for public and private sector stakeholders on a wide range of subjects, including organic coffee farming, quality and sustainable sourcing in the wood-processing sector. In addition, ten quality champions have graduated from the project and were trained to assess, coach and guide companies in improving their quality using the most up-to-date tools and techniques.

Furthermore, the project conducted an in-depth gap analysis on the ATIGA and published a handbook on the ATIGA notification process. The project also published six Everything But Arms (EBA) business guides and trained public and private sector professionals on the EBA scheme. The Quality Platform was launched in Lao PDR as a one-stop quality shop which allows users to discover quality requirements, connect to needed institutional and individual expertise and services, and learn from best practice cases.

Moreover, the project published a study on the implications of the LDC graduation, which found that Lao PDR should harness the power of trade promotion to avoid losing a potential 7.3% in exports at LDC graduation. The project also published two Export Roadmaps for the wood and coffee sectors, giving detailed insights into the global and national contexts of the sectors, analyzing challenges, and laying out a detailed plan of action for the future. Lastly, the project published four guides on the topic of e-commerce and a handbook explaining the WTO ePing notification system.

Quotes:

“The partnership that the MOIC has had with the EU and ITC spans over the last 15 years. These efforts are highly relevant to our national strategy of diversifying the economy, rebuilding from COVID-19, and graduating from Least Developed Country (LDC) status by 2026, through accelerating trade integration, eliminating poverty and increasing shared prosperity.” Said H.E. Dr. Manothong Vongsay, Deputy Minister of Industry and Commerce, Lao PDR.

“The EU is the 4th trade partner of the Lao PDR. Our trade is still relatively modest at around 500 million US$ per year. The recent studies show that there is good potential to increase our trade, especially in promising sectors such as specialty agriculture (like coffee and tea) and wood processing under the ARISE Plus project.” Said H.E. Ms. Ina Marčiulionytė, Ambassador of the European Union to Lao PDR.

“As we close this project, our commitment to Laos endures. We pledge to continue our dialogue and forge stronger partnerships with stakeholders. Exploring potential future avenues, in line with the Resilience Framework and the 9th National Socioeconomic Development Plan 2021-2025 of the Government of the Lao PDR focusing on Green and inclusive economy, Human capital and Good governance.” Says Ms. Sylvie Betemps Cochin, Chief, Office for Asia and the Pacific, International Trade Center.

The ARISE Plus project has been instrumental in promoting inclusive economic growth, trade intelligence, and participation in global value chains in Lao PDR. Through its collaboration with key government agencies, trade support institutions, and the private sector, the project has facilitated market access, built capacity, and created opportunities for Lao exporters. As the project officially concludes, it leaves behind a legacy of enhanced competitiveness, improved resilience, and sustainable economic growth for Lao PDR.

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With its launch in 2019, the EU-funded ARISE Plus Lao PDR project has since provided support to the public and private sectors with a focus on smallholders and SMEs in order to integrate the Lao economy into global production chains. The project is now in its final year, it remains committed to providing continuous opportunities for the public and private sectors in Lao PDR, with a specific focus on the two key sectors: coffee and wood processing.

Several key outcomes of the project have been achieved, including recommendations on trade policy, capacity-building, and assistance with policy design and implementation. Additionally, stakeholders have been able to better understand trade intelligence and opportunities. Notably, the project has contributed to the growth of the coffee and processed wood sectors, including specialty coffee. In the past six months, efforts have been made to consolidate results, complete remaining activities, and collaborate with other projects. This will enhance the project’s sustainability and allow for a comprehensive analysis of its impacts through an improved monitoring framework. The project is set to conclude in December 2023.

Quotes:

“During the first six months of this year, after the project was approved for an additional year without cost extension, the project has been able to accomplish many activities according to its plan. Examples include improving the assessment of the ASEAN Trade Agreement (ATIGA), dividing the responsibilities among the relevant sectors, and developing monitoring tools; and improving the study on the trade impact of LDG graduation.” Said Dr. Khamphet Vongdala, Director-General, Department of Planning and Cooperation, MOIC.

“I am confident that the second half of 2023 will see even an acceleration of this fast pace, to reach the completion and full achievement of all the activities by the end of the project. Given the very high commitment and the excellent relationship we have developed with MoIC, with NIU, with other partners such as LNCCI, and with the EU Delegation, I am sure that we will attain all the objectives that were set at the inception of the project”. Said Mr. Ashish Shah, Director of the Division of Country Programmes, ITC.

In the four and a half years since the project began, an impressive total of 1,812 individuals have benefited from its diverse range of activities. The numbers highlight its commitment to fostering widespread participation and delivering tangible outcomes for all stakeholders

“The EU is very pleased with ARISE Plus concrete outputs that fully contributes to our cooperation objectives and our vision of a win-win partnership with Lao PDR the project is playing crucial role to support Lao PDR to benefit better from regional integration and trade agreement, such as the ASEAN, the Regional Comprehensive Partnership and other Free-Trade agreement negotiations.” Said H.E. Ms. Ina Marčiulionytė, Ambassador of the European Union to Lao PDR.

During the reporting period, significant achievements were made in a number of areas. The Lao Coffee Competition received 62 coffee samples and awarded 18 winners across 8 categories, while participation in the World of Coffee fair in Athens, Greece resulted in expanded business contacts for 5 coffee companies. The project also focused on strengthening accreditation capacity, training 12 officials as lead auditors and conducting a study visit to Vietnam. 36 exporting companies in three provinces benefitted from Good Hygiene Practice and Good Manufacturing Practice training programs. 24 stakeholders were successfully equipped with customized versions of the Lao PDR Trade Map and Export Potential Map to identify trade policy options. In eight companies, Quality Champions have completed quality improvement projects leading to the graduation of 10 Quality Champions. Launching LNCCI’s Quality Champions services and establishing an official quality platform with 41 registered users, including experts and institutions, marked important milestones in the project’s promotion of quality practices.

As the project’s end date approaches, the project team is confident it will meet all objectives by 31 December 2023. Taking into account the remaining challenges, the project continues to implement its remaining activities as fast as possible. From July to November, a series of events, missions, and webinars will be organized, aiming to maximize impact. These activities will involve stakeholders from different companies and organizations, in order to ensure an effective exchange of information and knowledge.

Media enquiries about ITC should be directed to
Ms. Kayamphone Kookai Singhalath
Communication Consultant, ITC
E: Ksinghalath@intracen.org T: +856 20 777 765 97

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Lao PDR is currently engaging in negotiations at the multilateral and regional levels – to formulate/strengthen trade rules in the context of the constantly evolving priorities and necessities in the world today.

With most contemporary trade agreements addressing a wide range of issues including services, investment, procurement, competition, e-commerce, and non-tariff issues, as well as environmental and social elements – it is important that Lao PDR is well-equipped to engage effectively in these global and regional efforts to modernize trade rules and better integrate into global and regional value chains. For instance, the ASEAN March 2022 launched negotiations to upgrade the ASEAN Trade in Goods Agreement (ATIGA) with the objective of making the Agreement more relevant, modern, forward-looking and responsive to regional and global developments and strengthening businesses’ capacity to benefit from regional integration. Lao PDR is taking part in these negotiations and will need to be prepared to engage with other Member States on various issues, including elements such as rules of origin, sustainable trade, facilitating the transition to the technological age, and strengthening MSMEs integration into value chains, among others.

Building upon the technical assistance provided by the International Trade Centre (ITC) to Lao’s trade negotiators and policy makers through the development of the Lao Foreign Trade Negotiations Roadmap (2021 – 2025), ITC is collaborating with the Department of Foreign Trade Policy (DFTP) of Lao PDR to design and facilitate further targeted support for Lao’s policy makers to actively engage in these trade negotiations and capacitate stakeholders to effectively represent national interests and leverage further opportunities for businesses to integrate into global and regional value chains.

On that note, ITC and DFTP organised a training programme on New Trends in Free Trade Agreements (FTAs) in Vientiane Capital from 24 – 28 October. The programme demonstrated the evolution of FTAs over time. It explored the contexts of new and emerging issues being integrated into trade agreements, such as digitalisation, green and sustainable trade, labour and gender issues, among others, and its relevance for Lao PDR. Participants actively engaged in group discussions on the relevance of new issues such as labour considerations, digitalization and procurement for Lao PDR, and challenges faced in implementing trade agreements.

“Topics discussed in this training are highly relevant to trade facilitation, investment and development of digital economy in Lao PDR – ultimately, regional economic integration. It is important to ensure that Lao PDR has the right to access overall benefits. Most importantly, to guarantee that the future policy development is in line with the direction of trending topics related to free trade zone”. Says Seng-aloun Vilaysack, Deputy Director General, DFTP.

This training programme was conducted under the ASEAN Regional Integration Support Plus – Lao PDR (ARISE Plus Lao PDR project), funded by the EU. ITC, a joint agency of the World Trade Organisation (WTO) and the United Nations (UN), supports the Government of Lao PDR in implementing the ARISE Plus Lao PDR project. The project seeks to strengthen Lao’s regional integration; increase benefits from trade opportunities and market linkages, including with the EU; and improve participation in the global value chains, focusing on coffee and processed wood products .

For more information, https://www.intracen.org/arise-plus-laos/
Facebook: https://www.facebook.com/groups/ariseplus/

About Arise Plus Lao PDR: The ASEAN Regional Integration Support – Lao PDR Trade Related Assistance project (ARISE Plus Lao PDR) is funded by the European Union (EU). It aims to contribute to inclusive economic growth, increased climate change resilience, mitigation of vulnerability and job creation in Lao PDR.
About ITC – The International Trade Centre is the joint agency of the World Trade Organization and the United Nations. ITC assists small and medium-sized enterprises in developing and transition economies to become more competitive in global markets, thereby contributing to sustainable economic development within the frameworks of the Aid-for-Trade agenda and the United Nations’ Sustainable Development Goals.

Media enquiries about ITC should be directed to

Ms. Kay-amphone Singhalath
International Trade Centre
Communication Consultant
E: Ksinghalath@intracen.org
T: +856 20 7777 6597

The post Moving towards strengthened global and regional integration: Policy makers in Lao PDR updated on evolving trends in the trade negotiations and policy space first appeared on Trade for Development - T4D.