RESTRICTEDWORLD TRADE
ORGANIZATIONWT/COMTD/SE/M/5
10 October 2003
(03-5350)
Committee on Trade and Development
Fifth Dedicated Session
NOTE ON THE MEETING OF 17 JULY 2003
Interim Chairman:  Mr. Neil McMillan (United Kingdom)
Subjects discussed:
A. A DOPTION OF THE AGENDA ........................................................................................................1
B. R EPORT TO THE GENERAL COUNCIL ACCORDING TO PARAGRAPH 35 OF THE DOHA
MINISTERIAL DECLARATION (WT/COMTD/SE/W/9) ...............................................................3
C. O THER BUSINESS ........................................................................................................................6
1. The Secretariat, in the absence of the Chairman of the Committee on Trade and Development
(CTD) Ambassador Habib Mansour of Tunisia, opened the Session by extending a special welcome to
the Trade Minister of Mauritius and the representatives of non-resident WTO Members and Observers
who were in Geneva as participants in the "Geneva Week".
2. The Secretariat further said that Rule 13 of the Rules of Procedure of the CTD stated that, "If
the Chairperson is absent from any meeting or part thereof, the Committee on Trade and Development
shall elect an interim Chairperson for that meeting or that part thereof"1.  The Secretariat invited
Members' suggestions for an interim Chairperson.
3. The representative of Mauritius proposed Mr. Neil McMillan, Minister and Deputy
Permanent Representative of the United Kingdom, as interim Chairperson of the Fifth Dedicated
Session of the CTD.
4. The Committee elected Mr. Neil McMillan (United Kingdom) as interim chairperson of the
Fifth Dedicated Session of the CTD.
A. ADOPTION OF THE AGENDA
5. The Chairman said that the draft agenda for the meeting was contained in Airgram
WTO/AIR/2132/Rev.1 of 15 July 2003.
6. The agenda was adopted.
7. The Minister of Trade of Mauritius recalled that the WTO Work Programme on Small
Economies had been established in line with the mandate given in paragraph 35 of the Doha
Ministerial Declaration.  He said that it was significant that a large number of non-Geneva based
delegations were present in the Dedicated Session.  That was a sign of their commitment to the
important work on small economies.  The idea of hold ing the Dedicated Session back to back with the
Geneva Week, enabled the participation of a large number of small economies in the Dedicated
Session at a crucial juncture when Members were preparing for the Cancún Ministerial Conference.
                                                     
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Page 2
He said that he would not over-emphasize the importance that small economies attached to the Work
Programme on Small Economies.  He also commended the commitments of other Ministers from
small economies who were not able to attend the Fifth Dedicated Session and said that it would not
have been possible to steer the process and work to its present status without their support.  He
reminded delegations that the first official recognition of the need to address the concerns of smalleconomies in WTO had emerged in paragraph 6 of the Geneva Ministerial Declaration.  Since then,
the small economies had been working to secure concrete measures in favour of their economies
which were beset with innumerable inherent weaknesses and constraints arising out of factors beyond
their control.  Small economies were perpetually at the mercy of natural vagaries which repeatedly
destroyed their infrastructure and assets, including standing crops and the basic means of economic
operation, which had been acquired at high costs and sacrifices.  Those economies were thus exposed
to sudden catastrophes with subsequent hardships which undermined the livelihood of their peopleand their efforts in pursuing a stable growth trajectory.  That was compounded by other characteristics
peculiar to small economies, including the smallness of their markets, lack of economies of scale,
remoteness, poor resource endowment, high unit cost of infrastructure and high transportation costs.
Small economies were dependent on few commodities and services of which they did not have any
control over the market prices.  They were unable to acquire an appreciable market share and toinfluence the market dynamics.  Under such conditions, it was naive to argue that the small economies
could cause trade distortion and prejudice the market interests of other economies.
8. He went on to say that it was important to recall that the small economies had based their
work in different bodies on those arguments in order to advance their agenda and to enhance the
understanding of some WTO Members who were, until recently, believed only in the cliché that smallwas beautiful and to whom the stark realities and characteristics of small economies were unknown.
The proponents had, through their efforts, been able to create a greater understanding of their
problems and concerns.  However, that work had only partially been done.  The small economies were
yet to see how soon concrete measures could be put into place to provide responses to their problems.
He said that the small economies recognised the sustained contribution of the CommonwealthSecretariat to the work in the Dedicated Session.  The Commonwealth Secretariat had consistently
supported the agenda of the small economies.  Other regional organizations had also been
instrumental in advancing the cause of the small economies.  In that regard, he acknowledged the
work done on the issue at the level of the AC P, the African Union, SADC, COMESA.  Other
intergovernmental organisations such as CARICOM, PACIFIC FORUM and the Indian Ocean
Commission had equally spearheaded the process in their own regional settings.  All these forces had
been brought onto a common platform.  The small economies had had to travel far to flag theirconcerns in all major international fora.  In th e WTO itself, it had not been easy to convince some
partners that, as globalisation proceeded, the cost of adaptation and adjustments of the small
economies was high.  Given their inherent vulnerabilities, those economies were exposed to the
vicissitudes of the globalized system and the prospects of an ever increasing marginalisation from the
multilateral trading system.  Those concerns had gained greater recognition at the Doha MinisterialConference.  He recalled that he had been designated as spokesperson of the small economies at the
Doha Ministerial Conference.  He was thankful to all colleagues for the trust they had placed in him.
It was thanks to the cooperation of all that explicit consensus could be reached at the Doha Ministerial
Conference for the establishment of a Work Programme on Small Economies.  Ministers had then
recognized that the plight of small economies was becoming increasingly serious.  The DohaMinisterial mandate therefore called for urgent action for framing responses to the trade-related issues
of small economies.  The General Council had accordingly been empowered to keep the Work
Programme under review and to make recommendations for action to the Fifth Session of the
Ministerial Conference in Cancún.  A structural programme of work had therefore been established
right after the Doha Ministerial Conference to be carried out in Dedicated Sessions of the CTD.  TheCTD was also instructed to report back to all m eetings of the General Council.  Indeed, the issue of
small economies had become a standing item on the agenda of the General Council.WT/COMTD/SE/M/5
Page 3
9. He continued by saying that the Fifth Dedicated Session had brought together the systemic
work done so far.  WTO Members had been provided with all relevant information and
documentation as well as responses to questions posed by interested WTO Members on specific
issues affecting them.  The agenda of the small economies was contained in document
WT/COMTD/SE/3 which set out seventeen proposals to address the various problems confrontingsmall economies.  However, the small economies reserved the right to come up with additional
proposals in the light of the ongoing work for the fulfilment of the Doha Ministerial Mandate.  That
Work Programme on Small Economies was an integral part of the Doha Development Agenda.  It was
in that context that Members needed to view all th e work undertaken in the Dedicated Sessions of the
CTD.  The full range of the WTO agenda devolving from the Doha Ministerial Conference was
reflected in a checklist of issues (JOB(03)/98) prepared by the Chairmen of the General Council and
of the Trade Negotiations Committee (TNC) in the context of the preparations for the Fifth Session ofthe Ministerial Conference.  The Work Programme on Small Economies had logically and rightfully
been included in that checklist which would be part of the overall programme of work at the
Ministerial Conference in Cancún.
10. He further said that it had not been easy to come to a common understanding and to rally
consensus.  He thanked the delegations of the United States, the European Commission, Japan andCanada for their contribution in taking forward the Work Programme on Small Economies.  He also
recognised the commitment and efforts made by the WTO Director-General in that regard.  He said
that he recognized that it was primarily incumben t on the small economies themselves to continue to
ensure that the understanding and cooperation that had prevailed thus far would be upheld and
consolidated.  Members would need to make extra efforts in the coming months so that the work onsmall economies was completed on target and produced a meaningful and comprehensive package of
measures that would help resolve the problems faced by small economies.  The Fifth Dedicated
Session had an important responsibility as it was going to take an important decision.  Members
would be required to give their approval to the report of the Dedicated Session of the CTD in order for
the General Council to transmit the relevant decisi ons to the Fifth Ministerial Conference.  Other
small economy Ministers were anxiously awaiting the outcome of the deliberations of the Dedicated
Session as they were eager to inject a new sense of urgency in the Work Programme so that the
process of marginalisation of small economies could be reversed.  He concluded by saying that he did
not doubt that the small economy constituency could rely on the support of other Members in that
endeavour.
B. R
EPORT TO THE GENERAL COUNCIL ACCORDING TO PARAGRAPH 35 OF THE DOHA
MINISTERIAL DECLARATION (WT/COMTD/SE/W/9)
11. The Chairman said that agenda Item B related to the Committee's report to the General
Council according to paragraph 35 of the Doha Ministerial Declaration which stated that:
"We agree to a work programme, under the auspices of the General Council, to
examine issues relating to the trade of smal l economies.  The objective of this work is
to frame responses to the trade-related issues identified for the fuller integration ofsmall, vulnerable economies into the multilateral trading system, and not to create a
sub-category of WTO Members.  The General Council shall review the work
programme and make recommendations for action to the Fifth Session of the
Ministerial Conference."
12. He reminded Members that the content of the draft report of the Dedicated Session to the
General Council had been first discussed at the Fourth Dedicated Session when a group of small
economies had submitted document WT/COMTD/SE/W/8 containing a proposed report by the
Dedicated Session.  Based on that proposal, the Chairman had prepared a draft report, on his own
responsibility, which had been discussed during informal consultations on 3 July 2003.  Following theWT/COMTD/SE/M/5
Page 4
comments made by delegations at that meeting, a revised draft had been prepared which was
contained in document WT/COMTD/SE/W/9.
13. However, before going into details of the draft contained in WT/COMTD/SE/W/9, he said
that he wished to suggest some additional technical changes to the draft report.  The first two changes
related to paragraph 4.  He suggested the inclusion of the words "In accordance with the frameworkand procedures for the conduct of the Work Programme on Small Economies" at the beginning of the
second sentence of paragraph 4.  The first two sentences of paragraph 4 would therefore read:  "The
General Council also instructed the CTD to report  regularly to the General Council on the progress of
work in the dedicated session.  In accordance with the framework and procedures for the conduct of
the Work Programme on Small Economies, the Work Programme on Small Economies has since been
a standing item on the agenda of the meetings of the General Council".  The second change related to
the reference to the WTO documents at the end of paragraph 4.  That reference needed to be correctedto read:  "These progress reports are reflected in the minutes of those meetings, contained in
documents WT/GC/M/74-78, and WT/GC/M/80".  He said  that the third and final change pertained to
Section II of the report entitled "Submissions and Proceedings".  He said that he had been informed
that the Governments of Mongolia and Papua New Guinea wished to be considered as co-sponsors of
documents WT/COMTD/SE/W/3 and WT/COMTD/SE/W/8.  He therefore suggested that that bereflected in a new paragraph, to be inserted after paragraph 9.  That paragraph would therefore read,
"At the 5
th Dedicated Session, Members were informed that the delegations of Mongolia and
Papua New Guinea wished to be considered as co-sponsors of documents WT/COMTD/SE/W/3 and
WT/COMTD/SE/W/8."  He also suggested that that paragraph contain a second sentence stating that;
"The Dedicated Session adopted this report at the Fifth Dedicated Session".
14. The representative of the United States said that her delegation could support the
recommendation in Section IV of the draft report as it was worded.  Her delegation welcomed the
intensified dialogue that Members had had on the subject of small economies.  She said that efforts
had been made to consider the unique characteristics and problems faced by small economies.  The
dialogue of the past year had been useful in trying to define what those problems were, and inbeginning to try to identify ideas as to how they might be addressed more effectively.  She said that
good progress had been made in the Work Programme, despite the initial difficulties.  Some
momentum had been gained and ideas had been put forward.  Her delegation therefore looked forward
to working with other delegations over the course of the next year to frame solutions to the problems
that had been identified.
15. The representative of the European Communities said that his delegation had had the
opportunity, since the last Dedicated Session, to engage in a number of informal discussions with the
proponents of the proposals that had been tabled in the Dedicated Session.  That exercise had been
useful both in terms of deepening his delegation's own understanding of the nature of those proposals
and in terms of providing an opportunity to consider some of them from a more technical perspective
and to understand what their implementation would involve.  His delegation looked forward to
continue that exercise with the participation of the wider membership.  He encouraged the proponentsto bring their ideas to a wider circle of interested Members so that more Members could be engaged in
the process.  With respect to future work he sa id that it was important to continue the exercise
emanating from the Doha Ministerial Declaration with continued seriousness and vigour in order to
identify the problems faced by small economies and the corresponding solutions.  He assured the
Minister of Mauritius and the other small economy proponents of his delegation's continued interestand support for the work with the aim of finding suitable responses that could be agreed by all WTO
Members.
16. The representative of Saint Kitts and Nevis said that although the draft report indicated that
some progress had been made, there was no indication of what that progress was.  As he represented a
country without a permanent representation in Geneva he asked for an explanation of the nature of theprogress made.WT/COMTD/SE/M/5
Page 5
17. The Chairman responded that progress had been made in two areas.  First, something which
the Ministers at the Doha Ministerial Conference were keen to see happen had happened, which was
that Members understanding of the unique problems of small economies had been enhanced.  That
educational part of the work carried out in the Dedicated Session had been successful.  Some of the
comments made by the Minister of Mauritius reflected a number of points that had been made duringthe past year in that respect.  Second, although there was not yet agreement on the proposals contained
in document WT/COMTD/SE/W/3, the Committee had began considering those proposals.  Members
had also expressed a willingness to continue cons idering those proposals in a positive spirit with a
view to arrive at some clear conclusions within a relatively short period of time.
18. At this point in the discussion, the Chairman put forward the Report for adoption.
19. The report was adopted.
20. The representative of Canada said that, as one of the delegations that had been involved in the
informal discussions, she wished to express her delegation's full support for the process.  She
congratulated the proponents on the constructive approach they had taken by working closely with
other Members.  She agreed with the representative of the European Communities that the dialogue
on the small economy issues should be widened for all Members to be involved.
21. The representative of Barbados said that the Work Programme on Small Economies was
important to her delegation and a core issue of the Doha Development Agenda.  The proponents had
high expectations of the Work Programme.  Her delegation expected that, at the conclusion of the
Work Programme, Members would adopt concrete, substantive, effective and result-oriented
measures which would lead to the fuller integration of small and vulnerable developing economies
into the multilateral trading system.  Her delegati on, therefore, felt that Members needed to pursue
their work in the second phase of the Work Programme which was the solution crafting phase, in a
timely manner.  It was therefore important that the section of the report relating to future work stated
that Members would be concluding the Work Programme no later than 1 January 2005.  Her
Government did not consider the date of 1 January 2005 as the ultimate guideline as it would prefer to
see the work concluded much ahead of that date.  Although it had taken a long time to get the WorkProgramme on Small Economies started in the WTO, its results did not need to take as long.  Her
delegation looked forward to the continuation of the committed and constructive approach that other
Members had adopted in pursuing the Work Programme on Small Economies.
22. The representative of Papua New Guinea thanked Members for accepting its delegation's
request for including a reference in the report pertaining to his delegation's wish to be added as a
co-sponsor of documents WT/COMTD/SE/W/3 and WT/COMTD/SE/W/8.
23. The representative of the Dominican Republic said that his delegation associated itself with
the statement made by the representative of Barbados.  He also welcomed the positive comments
made by the delegations of the United States, the European Union and Canada and their commitment
to work towards concrete results in the near future.  Specific results were important given the
vulnerability and the size of the economy of the Dominican Republic.
24. The representative of Japan said that his delegation had had the opportunity to participate in
some of the informal consultations with the proponents.  Those deliberations had been constructive,
educative and informative.  Referring to the observat ion made by the representative of Saint Kitts and
Nevis he said that the documents prepared by the Secretariat together with the submissions made by
the proponents had deepened Members' understanding of the specific difficulties faced by small
economies.  That framed a common ground for future discussions on the issue.  His delegation wascommitted to continue its active participation in fu ture discussions in order to build on the progress
made in the Dedicated Sessions.WT/COMTD/SE/M/5
Page 6
25. The representative of Cuba said that the issue of small economies was of fundamental
importance to her delegation and one of the priority areas of the Doha Work Programme. Her
delegation therefore welcomed the willingness expressed by several developed country Members to
analyze the proposals made by the proponents.  She believed that the educational phase which
Members had undertaken was equally important.  However, Members now needed to move to thesubsequent phase of identifying and agreeing to concrete solutions for the problems faced by small
economies.  Her delegation considered that paragraph 14 of the report was important in that respect.
Her delegation would therefore have preferred that the Work Programme be concluded before the
Fifth Ministerial Conference.  However, in a spirit of cooperation and with a view to seeking a
suitable outcome, her delegation was prepared to go along with the contents of paragraph 14 as long
as the work would not extend beyond 1 January 2005.
26. The representative of Fiji stated that, as a non-resident delegation, his Government found it
difficult to attend the deliberations in the Work Programme.  He appreciated the work done by those
who had been able to participate in and contribute to the Work Programme on Small Economies as
they had managed to put forward the case in an effective manner.  It was indeed difficult to educate
larger Members about the matter of size.  Some Members believed that the proponents were too
obsessed with their smallness, but some things in life were permanent.  The possibility for small
economies to grow bigger was limited as were their choices.  His delegation looked forward to the
continuation of the Work Programme because it was one of the most important elements of the Doha
Development Agenda.  His Govern ment would judge the success of the Doha Development Agenda
largely by the extent to which it provided solutions to particular economic and administrative
problems of the small developing countries which were among the most vulnerable of all WTOMembers.  The Work Programme on Small Economies had been able to educate WTO Members
about the peculiar situation of small economies.  What remained was for Ministers at the Cancún
Ministerial Conference to give the political impetus necessary to continue the Work Programme on
Small Economies.
27. The Chairman summed up the discussion by stating that Members had been able to adopt the
report contained in document WT/COMTD/SE/W9 with the stated amendments.  The General
Council would consider the recommendations in the report of continuing the work of the Dedicated
Sessions and seeking its completion by 1 January 2005.  The work in the Dedicated Session of the
CTD was an important contribution to the developm ental aspect of the Doha Development Agenda.
The aim of the Doha Development Agenda was to improve the integration of all Members into the
multilateral trading system and to turn small economies into bigger and better integrated economies.
C. OTHER BUSINESS
28. The Chairman said that the next Dedicated Session was tentatively scheduled to be held on
Wednesday, 15 October 2003, following the Regular Session of the CTD, tentatively scheduled for
14 October 2003.
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