Duty-free quota-free (DFQF) scheme

Duty-free quota-free (DFQF) scheme

The Duty-free quota-free (DFQF) scheme, which provides preferential market access to Least Developed Countries (LDCs), remains largely unutilized according to a report by the LDC Group at the World Trade Organisation (WTO). The DFQF scheme was initially established at the WTO Hong Kong Ministerial Meeting in 2005. India became the first developing country to extend this facility to LDCs in 2008, granting access to 85% of its total tariff lines. The scheme was later expanded in 2014 to cover approximately 98.2% of India's tariff lines for LDCs.

The World Trade Organisation (WTO) is an international organization that deals with the rules of trade between nations. It was established on January 1, 1995, as a successor to the General Agreement on Tariffs and Trade (GATT). The WTO's main objective is to ensure smooth, predictable, and free trade among member countries. It operates based on the principles of Most-favoured Nation (MFN) treatment and National treatment. The WTO is a member-driven organization, with decisions made through consensus among member governments.

Special and differential treatment is provided to LDCs and developing countries through various WTO agreements and decisions. These provisions aim to give these countries special flexibilities and rights to support their economic development.

In conclusion, the DFQF scheme, designed to provide duty-free and quota-free access for LDCs, has not been fully utilized by these nations. Despite efforts by India and other countries to extend preferential market access, LDCs have not taken full advantage of the scheme. The report by the LDC Group at the WTO sheds light on the need for further efforts to promote and facilitate trade for the economic development of LDCs.

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