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The UK and the Lao People’s Democratic Republic (LDPR) have agreed to a memorandum of understanding (MOU). The MOU emphasises the parties' commitment to the obligations under the UN Framework and the Paris Agreement and their cooperation in decarbonising economic activities.
On Friday 26 July 2024, the Rt Hon Mr David Lammy, Secretary of State for the Foreign Commonwealth and Development Office and His Excellency Mr Saleumxay Kommasith, Deputy Prime Minister and Minister of Foreign Affairs signed a Memorandum of Understanding (MoU) during their bilateral meeting at National Convention Centre where the ASEAN Foreign Ministers’ Meetings took place, formalising bilateral cooperation to promote decarbonisation of economic activities of mutual interest and to support climate-risk based decision making, job creation, and strengthen community resilience.
The agreement is expected to offer potential opportunities for trade in goods and technology as LDPR works to fulfil its obligations on carbon reduction. The commitment to open markets and transparency in regulations could help boost the UK’s growing trade with the country, which is not yet a market on the radar for many UK exporters.
The MOU identifies four critical areas for cooperation:
- Energy transition
- Adaptation and resilience
- Carbon markets and sustainable finance
- Urban planning and green transport
LDPR is situated in Southeast Asia on the Indochinese Peninsula. The country has a population of 7.8 million and is the world’s 137th largest economy. Total trade between the two countries was £111 million in the four quarters to the end of Q1 2024. UK exports were heavily biased to services, which saw a 90% increase in 2023. Barely 0.5% of LDPR’s imports are from the UK.
The UK and LDPR do not currently have a preferential trade agreement. As the LDPR is a member of the World Trade Organization, trade between these countries is on Most Favoured Nation (MFN) terms.
Full details of the MOU are available at UK and Laos sign Memorandum of Understanding on the Green Economy Framework - GOV.UK (www.gov.uk)
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