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WT/COMTD/SE/M/38  
 
21 October  2019 
(19-6845) Page: 1/7 
Committee on Trade and Development  
Thirty -Eighth Dedicated Session    
 
NOTE ON THE MEETING OF 29 APRIL  2019 
H.E. Mr Chad Blackman  (Barbados ) 
A. ADOPTION OF THE AGEN DA ................................ ................................ ....................  1 
B. MINISTERIAL DECISION  ON THE WORK PROGRAM ME ON SMALL ECONOMIE S 
(WT/MIN(17)/63 –WT/L/ 1030) – CHALLENGES A ND OPPORTUNITIES EXP ERIENCED  
BY SMALL ECONOMIES I N THEIR EFFORTS TO R EDUCE TRADE COSTS, P ARTICULARLY  
IN THE AREA OF TRADE  FACILITATION (WT/CO MTD/SE/W/34 ) ................................ ..... 1 
(I)  OUTCOME OF THE WORK ON "CHALLENGES SMALL ECONOMIES EXPERIENCE IN THEIR 
EFFORTS TO REDUCE TRADE COSTS, PARTICULARLY IN THE A REA OF TRADE FACILITATION" – 
COMMUNICATION FROM GUATEMALA ON BEHALF OF THE GROUP OF SMALL, VULNERABLE 
ECONOMIES (WT/COMTD/SE/W/38)  ................................ ................................ ......................  1 
C. VULNERABILITY OF SMA LL ECONOMIES TO NATU RAL DISASTERS AND TH E  
IMPACT ON TRADE - PRESENTATION BY THE WT O SECRETARIAT  ................................ .... 5 
D. SMALL ECONOMIES' TRA DE IN COMMODITIES - PRESENTATION BY THE  
COMMON FUND FOR COMM ODITIES  ................................ ................................ .................  7 
E. OTHER BUSINESS  ................................ ................................ ................................ .... 8 
 
A. ADOPTION  OF THE AGENDA  
1. The draft agenda as contained in  document  WTO/AIR/COMTD/SE/ 10/Rev.1  of 18 April 2019 
was adopted .  
B. MINISTERIAL DECIS ION ON THE WO RK PROGRAMME ON SMAL L ECONOMIES 
(WT/ MIN ( 17)/63 –WT/L/1030) – CHALLENGES AND OPPOR TUNITIES EXPERIENCED  BY 
SMALL ECONOMIES IN T HEIR EFFORTS TO REDU CE TRADE COSTS, PARTICUL ARLY IN THE 
AREA OF TRADE FACILI TATION (WT/COMTD/SE/ W/34)  
2. The Chairman  said that the Ministerial Decision  contained in document 
WT/MIN(17)/63 -WT/L/1030 , inter alia, instructed continued work on the challenges small economies 
experience in their efforts to reduce trade costs, particularly in the area of trade facilitation. 
Accordingly, discussion on this matter had continued in 2018 in the Dedicated  Session, on the basis 
of a Secretariat document contained in WT/COMTD/SE/W/34. Last  year, two meetings of the 
Dedicated Session were held: one in June to discuss the difficulties faced by small, vulnerable 
economies  (SVEs) on the matter, and the other in November, to explore possible solutions. He said 
that the fruits of that work were reflected in the outcome document WT/COMTD/SE/W/38, prepared 
by the SVE Group. He then gave the floor to Guat emala, the Coordinator of the SVE Group, to 
introduce the document.  
(I)  OUTCOME OF THE WORK ON "CHALLENGES SMALL ECONOMIES EXPERIENCE IN 
THEIR EFFORTS TO REDUCE TRADE COSTS, PARTICULARLY IN THE AREA OF TRADE 
FACILITATION" – COMMUNICATION FROM GUATEMALA ON  BEHALF OF THE GROUP OF 
SMALL, VULNERABLE ECONOMIES (WT/COMTD/SE/W/38)  
3. In introducing document  WT/COMTD/SE/W/38 , the representative of Guatemala , on behalf of 
the SVE Group,  said that the objective of the document was to record the outcomes of the WT/COMTD/SE/M/38  
 
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  substant ive discussions that were held in the Dedicated Session on the topic of reducing trade costs. 
The topic had been mandated by Ministers at the Eleventh Ministerial Conference  (MC11)  in Buenos 
Aires, and had been thoroughly discussed in three  different meetings.  All discussions were based on 
a background note prepared by the Secretariat that disaggregated relevant statistical information 
from the "Aid for Trade at a Glance 2015" study , in particular statistics on the main sources of trade 
costs in goods and services for SVEs. Discussions were enriched with case studies and examples 
from representatives of SVE Members.  Trade costs in goods , transport infrastructure , border 
measures and procedures , trade costs in services , technology and trade costs , non-trade measures , 
and n atural disasters and their impact on trade  were among the topics that had been discussed , 
along with  some suggested  solutions for such challenges, at a national, regi onal and multilateral  
level.  The Group believe d that this document was very important since it show ed the specific 
challenges that SVEs face d regarding trade costs , as well as  a pathway of possible solutions to 
reduce them. It  could also be a useful tool for donors and Aid for Trade  partners, as it showed 
priority areas to focus their support for SVEs.  The representative  said that t he implementation of 
the Trade   Facilitation Agreement  (TFA)  and customs  modernization had been  highlighted as useful 
tools to reduce costs at the border.  She suggested that it  would be useful to compile some of the 
data currently available in different  international organizations to monitor the impact of the 
implementation of  the TFA and other meas ures in the actual reduction of trade costs.  
4. The representative of Mongolia  noted that transport was one of the highest costs in SVEs. He 
also pointed out that Mongolia was not only a n SVE, but also a landlocked country. According to  the 
Economic and Socia l Commission for Asia and the Pacific (ESCAP ) – World  Bank Trade Cost Database, 
30% of Mongolia' s trade cost s were related to its geographical location. The country was  therefore 
working to overcome the barriers that ar ose because of its landlocked status by implementing  the 
TFA, as well as the "Mongolia -Russia -China Economic Corridor " with its neighbours.  Mongolia 's 
agriculture was predominantly animal husbandry. The country produced no rice, no sugar and no 
crops except for a small amou nt of wheat and vegetables. Mongolia was also prone to natural 
disasters caused by a combination of drought, heavy snowfall and high winds , in concurrence with 
extremely low temperatures in winter. In 2009-2010, a total of eight million livestock w as lost as a 
result of these disasters , affecting  the livelihoods of tens of thousands  of herder households , as well 
as the industry.  The representative said that  many developing countries relied on the production 
and export of a few commodities that accounted for a large share of their total export earnings . 
According to a recent United Nations Conference on Trade and Development (UNCTAD ) study, 67% 
of developing countries  were commodity dependent and , among them , least developed countries 
(LDCs) were even more dependent. This dependence on a few commodities made developing 
countries vulnerable to shocks and pric e fluctuations in world markets. In the case of Mongo lia, in 
2018, more than 80 % of exports were minerals , and lower commodity prices had a negative impact 
on export and tax revenues. Mongolia was trying to reduce the vulnerability of its economy 's 
dependenc e on the mining sector. In an effort to  diversify, it was pursuing policies to increase the 
trade turnover with its main partners and to boost export s of value -added and non -mining products.  
He suggest ed that future meetings could explor e export diversification  strategies for developing 
countri es, so as to mitigate volatility in commodity markets . This could help SVEs become less 
vulnerable to external shocks , and thus better integrate into the global economy.  
5. The representative of Sri Lanka  said that trade costs were a major challenge that many  
economies faced in their efforts to integrate into the multilateral trading system (MTS) . However,  
the impact on SVEs was greater,  because  the share of trade costs in exports and imports was much 
higher than for larger economies. For SVEs, reducing trade costs was the only way of enhancing 
competitiveness, given that they were not able to reach significant economies of scale. In the 
meeting of the Dedicated Session in June 2018, two experts from the count ry's capital  had shared 
Sri Lanka's  perspective with regard to the main sources of trade costs and some initiatives that were 
being taken to address them . Some of  the major sources of trade costs identified during this session  
by the experts were high tra nsportation and logistics costs due to the remoteness of the countr y, 
and the lack of proper internal road infrastructure . Border costs including tariff and non -tariff 
barriers, access to modern technology for examining cargo, and lack of infrastructure su ch as cold 
storage facilities to store perishable goods , were also source s of trade costs . The representative 
noted that approximately 270,000 tonnes of fruit were los t per year in the absence of adequate 
means of harvesting, transporting, storing, process ing and packaging. This showed  that minimizing 
losses of perishable goods was the most effective way of increasing food availability, rather than 
increasing production . Due to a lack of technologic al and financial resources, Sri Lanka did not have 
the abil ity to introduce best agricultural practices to significantly reduce post -harvest losses.  The 
representative mentioned other sources of trade costs in Sri Lanka, such as the quality of WT/COMTD/SE/M/38  
 
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  infrastructure and the timeliness of deliveries. She also said that the  implementation of the  TFA had 
been identified as a useful tool to reduce costs at the border . Through donor assistance, Sri Lanka 
had launched its Trade Information Portal . However , a national single window system had not been 
implemented , as a  donor had yet to be found for this purpose . She added that  the evolution of 
sanitary and phytosanitary  (SPS)/technical  barriers to trade (TBT) standards was one of the factors 
that hindered trade cost reduction. Here, the most recent challenge her countr y had faced was how 
to address the increasing number of interceptions of fruit and vegetable consignments under the 
European Union Notification System for Plant Health Interception s – the EUROPHYT system  – on the 
alleged presence of harmful organisms in th e commodities. It had taken Sri Lanka several years to 
obtain donor funding to put in place the prescribed solutions , and until that time it had not been 
able to export those commodities  to the E uropean Union. In closing, she said that efforts to assist 
SVEs to reduce their trade costs should not only be based on assistance under the Aid for Trade 
initiative. Certain policy prescriptions in the context of special and differential treatment (S&D) w ould 
also be useful .   
6. The representative of Mauritius  said t hat he wished to point to  a number of sources of trade 
costs for SVEs , and in particular for Small Island Developing States (SIDS) . These included the lack 
of raw materials, issues relating to rules of origin, and distance from markets.  He explained that it 
was difficult for SVEs to compete with big producers, and that was why many were trying to diversify 
their economies by developing their services sectors. A possible solution to help SVEs address such 
cost components would be to provid e some flexibilities, since these costs put SVEs at a competitive 
disadvantage compared to other countries. He also indicated that he agreed with  the views shared 
by Sri Lanka regarding  the TFA and the difficulty in finding partners to provide technical as sistance.    
7. The representative of Barbados  said that the outcome document outline d the discussions on 
relevant topics reflective of the current challenges in trade costs for SVEs, and include d possible 
policy solutions emerging from the discussions.  Of par ticular relevance to his delegation  was the 
topic related to natural disasters and their impact on trade. Discussions provided a continued 
awareness o f the adverse effects natural disasters could  have on trade costs, recognizing that 
damage to port infrast ructure and roads was significant in hampering trade.  Barbados look ed forward 
to continued discussion on this topic as well as on all other topics of relevance aimed at assisting 
small economies to mitigate these challenges.  
8. The representative of Saint Luc ia, on behalf of the  Organi zation of Eastern Caribbean States 
(OECS ), said that  progress in the Work  Programme on Small Economies was vital  for securing the 
interests of small economies . He noted that the voices of small economies were  often drowned out  
in the MTS  by the interests of larger and more dominant partners , and called on Members to accept 
the uniqueness of small economies among the developing countries . Regarding the outcome 
document, he said that  it further confirmed the impact of  structural constraints faced by small 
economies . It illustrated the challenges that small economies  grappled with , and highlighted the 
main impediments to increase export performance and competitiveness. He pointed to a number of 
issues  in this regard  – including  inadequate transport infrastructure, non -tariff measures, ineffective 
border procedures, high tariffs and access to finance  – and proceeded to provide some specific 
examples of the challenges faced by SVEs  in relevant areas . He also  noted that the se limitations 
were further complicated by natural disasters. In closing, he said that it was important for Members 
to accept that more robust systemic level responses were required, as the ad hoc  and embedded 
flexibilities for SVEs were insufficient to su pport a pathway of sustainable development.  A pragmatic 
and realistic solution to address  the interests of small economies needed to be considered.  
9. The representative of the Plurinational State of Bolivia  said that landlocked developing 
countries had problems related to transport , which had a damaging effect on their trade. Every 
possible avenue to help landlocked countries overcome this geographic condition , including 
multilateral solutions , needed to be explored.  
10. The representative of Cuba said that  his country had always attached great importance to the 
Work Programme on Small Economies. As Guatemala had explained, SVEs faced growing challenges 
to integrate into international trade. Many of these challe nges were described in the document  
presented by Guatemala. However, there were other policies that seriously affected the conduct of 
trade relations in countries such as Cuba, and that had extraterritorial effects on other Members. He 
said that, on 17 Apr il 2019, the Government of the United States had announced the adoption of 
new measures to tighten the economic, commercial and financial blockade which had been imposed 
on Cuba for 60 years. He indicated that this ran counter to the principles and purpose s of the Charter WT/COMTD/SE/M/38  
 
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  of the United  Nations and international law . The measures implied that legal proceedings could 
henceforth be brought in United States' courts against Cuban and foreign entities outside the 
jurisdiction of the United States. This would pose  further obstacles to the entry into the United States 
of senior executives of foreign companies and their families who legitimately invested in properties 
that were nationalized in Cuba. He believed that this was a miscarriage  of justice . Making reference  
to the Helms -Burton Act of 1996 , he indicated that such actions   had long been rejected by the 
international community. He said that his country had rejected this legislation since it entered into 
force, because its overarching purpose was seen to be the imposition of colonial domination over 
Cuba. He also noted that no other American Government since the adoption of that legislation, 
including President Trump in his first two years in office, had applied it. He went on to say that, in 
addition to these me asures, limits had once again been placed on the remittances that Cuban 
residents in the United States sent to their families and relatives. The trips of United States citizens 
to Cuba were further restricted, and additional economic sanctions were being r einforced with the 
application of new regulations. The representative noted that all these measures, and those that 
additionally made up the legal framework of the economic, commercial and financial blockade that 
the United States applied to Cuba, hindered  the normal conduct of his country's trade and harmed 
third countries that wished to trade with Cuba, in violation of the rules established in the WTO. He 
indicated that this type of measure was booming in an international context in which some wanted 
to trample multilateralism, and this exacerbated the difficulties experienced by SVEs. He additionally 
said that these measures and actions constituted a violation of international law and trade rules, 
and represented an attack on the sovereignty of Members. C uba advocated a rules -based MTS that 
respected each state's sovereign decision to choose its economic and social development system. 
He called on Members to stop what he referred to as an irrational escalation and a policy of hostility 
and aggression that had become an economic war against his country and others.  
11. The representative of Ecuador  said that  for SVEs, trade costs constitute d a barrier to access 
international market s. In many cases, this mean t that goods were not globally competitive. He also 
pointed to the potential consequences of climate change on trade  costs. On th ese and other issues 
that would be  discuss ed in the future in t he Committee, it was essential to explore different 
perspectives, institutional a rrangements and public policy options that adjust ed to the various 
realities faced by each countr y. In fact, several Members  were of the view  that the current flexibilities 
were insufficient to address the challenges they faced . The representative  emphasize d that the 
strategic role of public policy in positively impacting trade costs was clear. The need for b etter 
infrastructure, both physical and digital, and access to financing were examples of this. SVEs needed 
to continue working to reduce trade costs and increase trade flows.  
12. The representative of El Salvador  welcomed the outcome document . She indicated  that a 
major step in addressing the problems identified was the effective implementation of the TFA. In the 
area of border measur es, she sa id that a process was underway to strengthen the Central  American 
Customs Union. Some of  the measures that had been implemented concerned  the simplification and 
integration of customs procedures , which was expected to result in a reduction in logistics costs for 
businesses, an increase in trade and a reduction in the time needed for  border procedures . In 
addition, Central American countries had recently agreed on a single customs document  that cover ed 
trade  in goods in the region. However, much remained  to be done in the area of trade facilit ation, 
mainly because commercial costs in El Salvador remained high due to transport, access to 
information and lack of electronic processes.  With regard to non -tariff b arriers, a recent  Economic 
Commission for Latin America (ECLAC ) study indicate d that administrative and logistical burdens 
impose d high costs on imports of goods  into El Salvador, where entrepreneurs pa id an average of 
18% in addition to the value of the goods. According to the study, these non -tariff factors affect ed 
trade in goods and had a greater impact than tariffs , given that the average applied tariff in the 
region was low.   
13. The representative of Afghanistan  said that  his country was a small economy and a landlocked 
developing one. As such, Afghanistan  affiliate d itself with the intervention by Mongolia,  and believe d 
that there was a lot to be done in the area of transport infrastructure, border pro cedures and access 
to trade finance. He support ed the recommendations of the outcome paper , and encourage d 
Members to implement previous Ministerial  Decisions concerning  SVEs, as well as relevant provisions 
in WTO Agreements , including  the TFA. He also noted the vulnerability of small economies to natural 
disasters  due to their geographical location. He said that his delegation was keen to continue  
discussions on th ese issues . WT/COMTD/SE/M/38  
 
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  14. The representative of Trinidad and Tobago  said that concerted effort s were required to address 
the particular challenges and vulnerabilities of small states. She indicated concern with the practice 
of de-risking , which she said  threaten ed to exclude small and other vulnerable states from accessing 
global financial markets and regulated financial services. She also highlight ed natural disasters and 
their impact on trade . Implementation of the TFA remain ed an important initiative for Trinidad and 
Tobago as it would  lead to improve ments in domestic trade governance and export success.  Trinidad 
and Tobago had submitted its instrument of acceptance of the TFA to the WTO on  29 July 2015 and 
had become  the ninth WTO Member and the first Caribbean Community  (CARICOM ) member state 
to acce pt the TFA. She said that her country  support ed the need to address the particular challenges 
and vulnerabilities of small and other vulnerable states to ensure their full participation in , and their 
contribution to , a more prosperous future.  
15. The represent ative of Vanuatu  said that the situation of the Pacific Island countries was well 
known. The se countries were SIDS with economic vulnerabilities  that stemmed from factors such as 
high trade costs, and which made their trade uncompetitive internationally . The structural and 
geographical characteristics of their economies also contributed to high trade costs. In addition, 
Pacific  Islands were highly dependent on imported fuels , which represented even more costs because 
they did not have fuel  sources of their own.  Another vulnerability faced by these countries related 
to their dependen ce on a narrow range of export sectors, which made them susceptible to external 
economic shocks.  She emphasized the importance of the TFA for the Pacific Island countries, and 
indicated the need to continue to explore how WTO rules could help these countries better integrate 
into the MTS.  
16. The Dedicated Session took note  of the interventions.  
C. VULNERABILITY OF SMALL ECONOMIES TO N ATURAL DISASTERS AND  THE IMPACT 
ON TRADE - PRESENTAT ION BY THE WTO SECRE TARIAT  
17. The Chairman said that the present agenda item concern ed a presentation by the 
WTO Secretariat on the vulnerability of small economies to natural disasters and the impact on trade.  
He invited a representative of the Development Division to make the presentation.  
18. The representative of the Development Division  said that  the research that had been 
undertaken since April 2018 on this subject would be presented  at a symposium on Natural  Disasters 
and Trade to be held on 10 May 2019 . He explained that  three country/regional studies had been 
carried out . The study for Nepal focused on the effects of the 2015 earthquake, while the one for 
the Eastern Caribbean addressed the impact of the hur ricanes on Dominica in 2015 and 2017, and 
on Saint Lucia . A third study looked at the Pacific and focused on Fiji, Tonga and Vanuatu.  This work 
had started in April 2018 when Members approved extra -budgetary funding provided by the mission 
of Australia. Tw o symposia had been held  thus far. The first symposium  had allowed the concepts 
to be o utlined , and the work to be launched . A second symposium in December 2018 had permitted  
more detailed discussions on issues relating to recovery, resilience, early warning systems, and 
services related to weather. From May to September  2018, the country research itself was 
undertaken . This was followed by desk research by colleagues in other  divisions and was taken up 
in several Trade Policy Reviews (TPR s). The research had been organized around four key headings 
for each country study . The first heading concerned the susceptibility, risks and hazards that each 
region faced and the macroecono mic impacts.  As there was no agreed definition of "national 
disasters" , it was decided to focus on  a definable subset of natural disasters. Thus, geo -physical 
risks would include earthquakes, tsunamis, volcanic eruptions, etc ., while hydro -meteorological r isks 
would cover floods, storms, cyclones, hurricanes and droughts.  After studying the susceptibility of 
each country, the research turned to the macroeconomic impact. For example, the impact of 
Hurricane Maria was twice the size of Dominica's  GDP. Other f actors such as the impact on economic 
growth, trade, the current account deficit and debt, among others , were also  looked at . 
19. The other three headings concerned  the trade issues arising from  disaster response , disaster 
recovery and disaster resilience . On disaster response, there was overlap with the discussion on 
trade costs. These costs also added to the burden of delivering response s, whether for humanitarian 
relief providers or SMEs seeking to import spare parts or equipment that had been damaged.  With 
regard to disaster recovery,  the issues that had been identified had to do with structural changes to 
small economies. For example, the difficulty in maintain ing the manufacturing sector in the face of 
high trade costs, as well as the  repeated damage from th ese kind of events. There was also the 
difference in resilience in different sectors such as tourism, with considerable resilience, and WT/COMTD/SE/M/38  
 
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  agriculture, which took much longer to recover.  Regarding disaster resilience , with the Sendai 
framework  now in place, the focus was on how to break th e cycle of disaster and debt , particularly 
in some of the small economies. One of the points that came out quite strongly was that, given the 
high cost of imported fuels, a number of small economies we re looking for ways to produce their 
own green or renewable energies, although  this required significant investment. Other issues that 
had emerged were how to expand insurance cover and adopt government procurement systems.  
20. The representative of Guatemala , on behalf of the SVE Group,  said that  natural disasters had 
been discussed under the topic of reducing trade costs since they were exogenous sources of trade 
costs and had an impact on trade opportunities for SVEs . Small economies were vulnerable to natur al 
disasters, in particular due to their geographical location and dependence on agriculture. Damages 
to infrastructure such as roads and ports due to natural disaster s had been identified as increasingly 
significant trade costs.  The SVE Group took note th at reports on disaster -affected country research 
had been made on several SVEs such as Dominica, Saint Lucia, Fiji, Tonga and Vanuatu, and 
acknowledged that the findings could shed light on the problems of small economies and allow  for 
discussion toward fi nding multilateral solutions for Members affected by natural disasters.  
21. The representative of Ecuador  said that small economies were the most vulnerable to the 
forces of nature. Vulnerability not only depend ed on the physical characteristics of a country; it was 
also heightened by climate change. Over the past years Ecuador ha d experienced earthquakes or 
cyclical changes in ocean currents and their effects on the w eather. El  Niño or La Niña weather 
phenomena brought  either excessive rainfall or drought. This had devastating effects on agriculture, 
thus jeopardizing food security and the exports of several countries. For this reason, diversification 
and industrialization were seen  as mitigation policies  in the context  of climate change . Vulnerability 
was also linked to significant fluctuations in the value of goods, especially raw materials. This was 
why it was particularly important to analy ze and follow the raw material markets. The representative 
added that his coun try had been severely affected by the lower oil prices seen over the past few 
years . This ha d required complex measures such as a balance -of-payments safeguard, adopted in  
compliance with multilateral trade rules , which was indicative of the challenges tha t SVEs were facing 
in difficult international circumstances.   
22. The representative of Barbados  said that vulnerability was the exposure of an economy to 
exogenous shocks that had the ability to dampen economic growth, which adversely affec ted the 
quality of life and the standard of living of its people. This was a factor that could not  be overlooked 
when considering trade costs in small economies . For Barbados, a country particula rly susceptible 
to hurricanes and flash flooding, building resilience to natural disaster s was a significant factor in 
attempt ing to mitigate these costs. His country  looked forward to future discussions on this issue 
and all other relevant issues that imp acted trade in small economies.  
23. The representative of Saint Lucia  said that OECS states were on the front lines of hazards 
related to climate change. Several had recently suffered the catastrophic impacts of climate 
change -induced hurricanes. In the case o f Dominica, having rebuilt after Tropical Storm Eri ka in 
2015, local authorities had to start from scratch  again, after the damage infl icted by Hurricane Maria 
in 201 7. The costs of such events on small economies extended beyond infrastructure losses , to 
include social fallouts such as displacement of population and outflows of skilled labour and capital. 
The international community had undertaken commitments to reduce the impact of suc h risks 
through relevant targets in the Sustainable Development Goals (SDG s) and the Sendai Framework 
for Disaster Risk R eduction. Against this backdrop , the OECS states had championed an analytical 
assessment by the WTO Secretariat of the link between natural disasters and their impact on trade. 
They belie ved the outcomes presented were a call to action and a pressing  case for additional  support 
by the international community, including through the adjustment of rules to mitigate the ongoing 
challenges faced by climate -vulnerable small states.  Many of the t raditional  S&D modalities, while 
necessary, fell short of what was needed by small economies to improve resilience in the face of 
increasing climate -related risks . He believed there was a need  to take steps to adjust the rules in 
order for  the MTS to take account of the realities of Members that were vulnerable to natural 
disasters.  
24. The representative of El Salvador  said that  her country was affected by earthquakes, 
hurricanes, volcanic eruptions, droughts and floods. These phenomena caused loss of life and  
destruction. Her delegation was willing to continue th e discussion in order to identify the best 
measures to mitigate the effects of natural disasters and to increase the resilience of vulnerable 
countries.  WT/COMTD/SE/M/38  
 
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  25. The representative of Vanuatu  said that the vulnerability of the Pacific states was exacerbated 
by environmental risks. In recent years , natural disasters had increased in frequency and severity  
causing devastating impacts to Vanuatu, Fiji and Tonga. Oceania was the region with  the highest 
exposure to natural disasters. It was at the frontline of climate change , even though its greenhouse 
gas emissions were negligible. In this context, t he discussion on trade and natural  disasters  was 
therefore  welcome . The region was  also finding ways  to overcome natural disasters and their impacts 
through regional action  – including  through regional economic integration  and regional initiatives on 
environmental measures. She went on to say that t he oceans should not be forgotten  in addressing 
the impa ct of climate  change in the region , because they were an important source of livelihood. In 
recognition of the importance of the oceans, Pacific Island Forum leaders had endorsed in 2017 the 
Blue Pacific identity as the collective driver of action and commitment for the stewardship of the 
Pacific Ocean. Building  resilience for the region needed to include both land and ocean -based 
activities affected by natural disasters.  She said that the Pacific Island countries, SIDS and SVEs 
more broadly , were dispr oportionately affected by climate shocks, which posed  a serious challenge 
to achieving the  SDGs. This vulnerability added to trade costs which made those countries 
uncompetitive . Also,  their smallness limited their ability to cope with frequent natural dis asters  and 
they had to be continually rebuilding. In closing, she welcomed the Secretariat's work on trade and 
natural disasters , and hoped that it  that would assist the Dedicated Session in finding a holistic 
approach to address the vulnerabilities of SVE s. 
26. The Dedicated Session took note  of the interventions.  
D. SMALL ECONOMIES' TRADE IN COMMODITIES  - PRESENTATION BY T HE COMMON 
FUND FOR COMMODITIES  
27. The Chairman  said that the present agenda item concerned a presentation by the 
Common  Fund for Commodities ( CFC) on small economies' trade in commodities. He invited  the 
Managing Director of the CFC to make the presentation.   
28. The representative of the Common Fund for Commodities  said that his presentation would 
deal with commodity markets and the use of tools for promoting production and trade of 
commodities. A number of SVE  countries were members of the CFC  – some  in the Caribbean region, 
some in Latin America, others in Africa and a limite d number in Asia. The CFC was an organization 
supported by members in two ways: shared capital pa id by all members , and voluntary contributions. 
The shared capital was used to cover the administrative expenses of the CFC , while the voluntary 
contributions were used for projects  in developing countries.  The Agreement establishing the CFC 
came into effect in 1989. The main  vision of the CFC  was that the commodity  sector should play its 
part in development.  When  the CFC was established, it was de termined  that 50% of the votes would 
go to developed countries , and 50% to developing countries. Any substantial decision require d 
two-thirds of votes.  Although  the CFC did not give grants or support for natural disasters , it 
nevertheless  worked to address the longer - or middle -term impact of disasters. The instruments 
used by the CFC were economic models looking at the financial rate of return, and not at the 
commercial rate of return . Twice a year , there were open calls for any count ry or private sector 
entities wishing to submit proposals , which were then examined by the technical committees for 
approval by the Board.  The CFC used a value chain approach for its  projects. It looked at producers, 
markets, production methods and consumers. The goal was to lin k producers to consumers. The 
CFC also analy zed the distribution of rents, governance and institutional issues. It  tried to 
understand  opportunities and obstac les in specific commodity value chains , and to  identify  solutions .  
29. He went on to say that t he areas eligible for CFC financing were the agri-food and seafood 
value chains, trade logistics, business processing, outsourcing and farming. In outlining  the CFC 's 
successes , he pointed to well-organized small -scale farmer businesses in stable value chains 
producing tea, coffee, flowers and vegetables. The main challenges faced by the CFC concerned  
limited and small -scale production and finance,  limited long-term and development finance, and a 
limited  appetite from entrepreneurs for risk. Projects also struggled with poor integration of value 
chains , and some policy environments that were not strong enough for value chain finance.  In order 
to overcome some of these difficulties, the CFC looked for projects that were innovative, financially 
viable, sustainable  and scalable  – and from which a broad social , environmental and developmental 
impact on stakeholders of commodity va lue chains  could be expected.  He went on to give examples 
of projects financed by the CFC , including a pilot coffee rehabilitation project in Nicaragua and 
Honduras, cocoa processing in Trinidad  and Tobago, and cashew processing in Sri Lanka.  WT/COMTD/SE/M/38  
 
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  30. The represent ative of Guatemala  said that  many WTO Members depend ed on commodity 
trade , and having CFC support for specific projects  was very beneficial . Since m any SVEs did not 
know about the CFC, she believed that it was a good idea for the  organization to share  information 
on its work.  She went on to provide information regarding two CFC projects her country had 
benefited from . The first was a project to improve the competitiveness of small coffee producers in 
Guatemala and Jamaica. It was based on the administrative and technical training of small producers 
and focused on improving the productivity, processing, quality and internal marketing of coffee.  The 
second project dealt with the diversification of agriculture in Guatemala and Mexico through the 
production and export of fruits. The objective was to organize the chain of production and marketing 
of tropical fruits in order to increase export s and improve the standard of living of producers.  Pilot 
farms were set up in indigenous communities in the re gion and they were trained in irrigation 
systems, technical skills, good sowing and harvesting practices, and product marketing. The project 
trained more than 3,500  producers.  
31. The representative of Ecuador  said that , in previous items on the agenda , access  to financing 
had been identified as a part of trade costs. The presentation made by the CFC dealt precisely with 
one of the bottlenecks in integrating into global markets in a more meaningful way. It also 
highlighted that the segment  of the value chain wi th the highest risk and least return was agricultural 
production, which was risk  prone due to natural phenomena. An inherent characteristic of SVEs 
concerned the vulnerability to volatile commodity prices , and m any SVE s were highly dependent on 
the price o f exports. He added that special attention should be paid to projects carried out to 
integrate developing countries in to global  value chains , with a view to mitigating the effects of 
commodity  price fluctuations on their economies by generating added value.  He asked what was the 
view of the CFC regarding the major hurdles encountered by countries attemp ting to  move up the 
global value chains.   
32. The representative of Sri Lanka  said that her country ha d received support from the CFC since 
its inception. She mentioned a number of projects in this regard, including a regional project to 
encourage more inland fisheries and aquaculture, and a project to introduce technology in the 
production of bamboo. She also noted in this context that the uniqueness of the CFC was that 
projects could be proposed not only by governments , but also by the private sector.  
33. The representative of the Plurinational State of Bolivia  expressed appreciation for the 
presentation by the CFC, and wondered if countries that were not CFC members could benefit from 
its projects .  
34. The representative of the Common Fund for Commodities  highlight ed that the CFC was 
involved in  a wide variety of projects, involving several  different pro ducts . He also said that  many  
products could not sustain a successful path over long periods. For example, excessive production, 
weather -related  factors or other factors could affect a producer's returns from one season to the 
next. In this regard, he stressed the importance of diversification whenever possible , particular ly 
into higher value products . 
35. The Dedicated Session took note  of the interventions.  
36. The Chairman said that , with  regard  to the way forward, he wished  to hold another meeting 
of the Dedicated Session after the summer break. He recalled that  the Twelfth WTO 
Ministerial  Conference  (MC12)  would  take place in June 2020. Accordingly, the purpose of the next  
meeting of the Dedicated Session would be to allow Members to begin the process of addressing the 
status of the Work Programme on Small Economies, and considering what future work could  be 
done, with a view to paving the way for eventual Ministerial guidance at MC12. 
E. OTHER BUSINESS  
37. No matter was raised under "Other Business".  
38. The meeting was adjourned . 
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