Graduation from LDC Status: Potential Implications for the Pacific Fisheries Sector

Since 1971, the United Nations has recognised the least developed countries (LDCs) as a group of economies with inherent characteristics that create particular economic vulnerabilities and disadvantages. In the case of the Pacific region, although the graduation criteria - defined in 1971 - has already been met by some countries within the region, the graduation process itself has been delayed. This is in view of the unprecedented challenge that the reality of climate change poses for the region in terms of economic vulnerability. This uncertainty may adversely affect key export-oriented industries, notably the fisheries sector – a key source of foreign exchange and expansion of formal employment opportunities for many countries in the region. This issue of Commonwealth Trade Hot Topics explores the potential trade-related effects of graduation from the group on the fisheries sector which may arise from the loss of a tariff preference for LDC Pacific Island Countries (PICs).