RESTRICTEDWORLD TRADE
ORGANIZATIONWT/COMTD/LDC/M/25
29 August 2001
(01-4140)
Sub-Committee on Least-Developed Countries
Twenty-Fifth Session
NOTE ON THE MEETING OF 20 JULY 2001
Chair: Ambassador Simon Fuller (United Kingdom)
A. ADOPTION OF AGENDA
1. The Sub-Committee adopted the proposed agenda contained in document
WTO/AIR/1576/Rev.1.
B. REQUEST FOR OBSERVER STATUS
2. The Chairman recalled that Members had agreed at the 25th Session of the Committee on
Trade and Development (CTD) to invite ad hoc  observers from intergovernmental organisations,
listed in document WT/COMTD/W/22/Rev.5, to observe meetings of the CTD and the Sub-
Committee on a meeting-by-meeting basis.  He proposed that, the Sub-Committee invite the agreedintergovernmental organisations to participate at the 25
th Session and at the next formal meeting.
3. It was so agreed.
C. FOURTH SHORT TRADE POLICY COURSE FOR LEAST-DEVELOPED COUNTRIES
4. The Chairman welcomed participants from th e Fourth Short Trade Policy Course to the
meeting. He noted that representatives from thirty-eight of the forty-nine LDCs were attending the
session of the Sub-Committee.  Some were participating as observers. Thirty LDCs were Members of
the WTO. Nine were in the process of accession. He noted that sixteen of these LDCs were not
resident in Geneva. He recalled that the Sub-Committee, at its 21st Session last year, had agreed to
maintain the practice, to the extent possible, of  inviting participants from the annual Short Trade
Policy Course for LDCs to attend meetings of the Sub-Committee.  In scheduling this session of the
Sub-Committee, account had been taken of the need to involve LDCs' capital-based representatives
who were present in Geneva to attend the Short Trade Policy Course. He stated that this was anopportunity for the Non-Resident LDCs to engage  in the work of the WTO.  He urged course
participants to participate fully in the discussions of the Sub-Committee. He proposed that the
Secretariat should continue to factor in the timing of the Short Trade Policy Courses with sessions of
the Sub-Committee on a constant basis.
5. The representative of Bangladesh said that he had participated in the opening ceremony of the
Fourth Short Trade Policy course. The Ambassador expressed satisfaction with the number of
countries participating and their seniority. He added that in addition to sending a single participant to
which all LDCs were entitled, Bangladesh had sent a further ten participants to attend the course. This
was being funded by his government. He said that th e training courses were invaluable to Members of
the LDC Group.  An increase in the frequency of these courses would be beneficial to LDCs. He alsosuggested that in addition to the Geneva-based courses, WTO experts undertake courses within LDCs.
This would help in disseminating information on the WTO to a broader audience.WT/COMTD/LDC/M/25
Page 2
6. The representative of the United States welcomed the holding of the Fourth Trade Policy
Course for LDCs and supported the inclusion of acceding LDCs in the course. She encouraged the
Secretariat to increase such opportunities to explain the workings of the WTO to LDC officials, in
order to integrate LDCs more fully in the multilateral trading system.
7. The representatives of Denmark, European Communities , Japan , Mauritania , Guinea , Canada,
Djibouti and Egypt  welcomed the participants of the Fourth Short Trade Policy course.
8. The Chairman thanked Members for their commen ts and the specific suggestions made that
the Secretariat should further consider in its programming.
D. FOLLOW-UP TO THE HIGH-LEVEL MEETING ON LEAST-DEVELOPED COUNTRIES
(i) Integrated Framework Progress Report
9. The Chairman recalled that the Secretariat had circulated a Progress Report to the LDC-III
Conference contained in WT/LDC /SWG/IF/17/Rev.1. Together with the Director-General, he had
also reported on the IF Pilot Scheme, to the General Council, at its meeting on 8 May 2001. He said
that the implementation of the IF Pilot Scheme was well underway, in a process led by the World
Bank. The Director-General would be reporting on the implementation of the IF Pilot Scheme at
Doha, in accordance with the decision to review the Pilot Scheme, no later than the Fourth WTO
Ministerial Conference. He invited Ambassador Iversen (Denmark), to report on the results of theSecond Meeting of the Integrated Framework Steering Committee (IFSC), held in Geneva, on 3 May
2001.
10. Ambassador Iversen (Denmark) as Chairman of the IFSC stated that the Steering Committee
had been reasonably satisfied with the progress made on the IF. The core Agencies had been given the
go-ahead to proceed with the implementation of the Pilot Scheme. He reported that at the secondmeeting of the IFSC, held on 3 May 2001, two additional donors, Finland and Japan, had made
pledges to the IF Trust Fund. Subsequently, Switzerland, Ireland and the United States had announced
their pledges to the Trust Fund at the Genera l Council and at the Third UN Conference on LDCs
(LDC-III) in May. He informed Members that the World Bank senior management had also approved
its contribution of US$1.5 million. Together with the earlier pledges made at the first SteeringCommittee meeting in March, the total pledges to the IF Trust Fund amounted to US$ 6.2 million.
The agencies had appealed to donors for the speedy disbursement of their pledges to the Trust Fund,
managed by UNDP, so as to allow them to proceed with the implementation of the IF Pilot Scheme.
11. He reported that the World Bank, on behalf of the core agencies, had presented the revised
Pilot Phase Work Program, which was adopted by the IFSC at the meeting. The revised Work
Program provided the operational basis for the implementation of the Pilot Scheme. The IFSC had
also endorsed the selection of three pilot countries: Cambodia, Madagascar and Mauritania, based onthe recommendation by the Inter-Agency Working Group (IAWG). He said that the agencies would
report on the three pilot countries within the framework of the implementation of the Pilot Scheme, at
the Fourth WTO Ministerial Conference in Doha. To assess and monitor progress during the Pilot
Phase, an illustrative list of indicators had been developed and was presented to the IFSC by the
World Bank, on behalf of the core agencies. He noted that clear benchmarks for measuring progresswere important for the possible extension of the IF Pilot Scheme to other LDC beneficiaries.
12. He said that the Steering Committee had taken note of the on-going consultations undertaken
by ITC, on behalf of the core agencies, with the five LDCs: Bangladesh, The Gambia, Haiti, Tanzania
and Uganda. These LDCs had held stand-alone Round Tables under the "old" IF. Once the
consultations were finalised with the five LDCs, IT C would present a list of prioritised and sequenced
technical assistance projects, in support of mainstr eaming, for each of these five LDCs, first to the
IAWG, and then to the Steering Committee.WT/COMTD/LDC/M/25
Page 3
13. Ambassador Iversen reported that the Development Assistance Committee (DAC) of the
OECD had made a presentation on the Guidelines on Capacity Development on Trade, adopted by
OECD Ministers, in April. The guidelines emphasised the importance of coordination, among
bilateral donors, and between bilateral and multilateral donors, at the headquarters and at the country
level. The IFSC had noted the necessity for coordination amongst donors for the successfulimplementation of the Pilot Scheme. He said that the DAC had also organised a follow-up informal
meeting, at the end of June, to further discuss the issue of coordination and the IF.
14. Finally, he stated that the implementation of the IF Pilot Scheme had begun immediately after
the IFSC meeting in May. The next meeting of the Steering Committee was scheduled on 3 October
2001. He reminded Steering Committee Members that the Doha Ministerial was the timeframe set by
Members to review the Pilot Scheme, with a view to its extension to other LDCs. Concrete results
were needed from the three pilot countries and from the five LDCs that had held Round Tablemeetings. This had been stressed to the core agencies in the World Bank-led process. Ambassador
Iversen confirmed that the IF was on the right track. He said that he would report back to the Sub-
Committee on further progress.
15. The Chairman thanked Ambassador Iversen for his report and invited Mr. Osakwe, from the
WTO Secretariat, in his capacity as Chairman of the Inter-Agency Working Group (IAWG) of the IF
to report on the current status of the implementation of the Pilot Scheme.
16. Mr. Osakwe stated that the implementation of the Pilot Scheme was proceeding satisfactorily.
It had begun with the selection of three pilot countries: Cambodia, Madagascar and Mauritania, at the
IFSC meeting, on 3 May 2001. Early reports from the country missions, led by the World Bank, with
the support of the other agencies, showed that the pilot phase was on the right track.  He said that bydesign, the pilot phase would work  on specific step s, as follows: i) the World Bank in consultation
with the other agencies and the pilot country w ould define the Terms of Reference; ii) a Trade
Integration Strategy would be drafted, essentially focusing on competitiveness issues, such as
domestic and external restrictions to the full inte gration of the LDC into the global economy; iii) the
Trade Integration Strategy would be discussed in a workshop/meeting, in the LDC, with the agencies
and in consultation with donors. An Action Plan that was a programme of trade-related technical
assistance would be drawn up. The Action Plan would focus on trade priority areas of action for the
integration of the LDC.  He stressed that the Action Plan would be drafted in close consultation with
donors and the LDC, given the experience and lessons fr om the "old" IF, to ensure that all the relevant
stakeholders were engaged; and iv) the Trade Integration Strategy and the Action Plan would be
forwarded to either a World Bank Consultative Group (CG) meeting or to a UNDP Round Table.
17. Mr. Osakwe said that in Cambodia, Madagascar and Mauritania, initial missions led by the
World Bank had taken place in the months of June and July. The Terms of Reference had been
drafted. It was expected that in the month of September, the draft Trade Integration Strategy studies
for both Madagascar and Mauritania would be available. By mid-October, the draft Trade Integration
Strategy for Cambodia would be made available by the Bank. He said that the process of consultations
with the donors and beneficiary pilot LDCs would start once the draft Trade Integration Studies wereready.  Initial reports from the World Bank based on the consultants working on the field had been
received.  These reports indicated clear and satisfactory promise.
18. He added that as mandated by the Steering Committee, the Director-General in his capacity as
Chairman of the Heads of the IF Agencies, would report on the implementation of the IF Pilot
Scheme at the Doha Ministerial. The initial draft report would be discussed amongst the agencies atthe official level at the next meeting of the IAWG scheduled in the first week of September 2001.
Thereafter, he said it would be brought to the notice of the IFSC at its next meeting on 3 October
2001, a full month before the Doha Ministerial. Finally, he said that as part of the implementation of
the Pilot Phase, the ITC on behalf of the agencies, was consulting with those five LDCs that had held
stand-alone Round Tables under the old "IF". Prelim inary reports received from ITC indicated theWT/COMTD/LDC/M/25
Page 4
emergence of an understanding on the priority projects in support of mainstreaming from the earlier
stand-alone trade sector roundtables. The ITC had informed the IAWG that they would prepare a draft
report on behalf of the agencies, by the third week of August 2001.
19. The Chairman thanked Ambassador Iversen and Mr.Osakwe for their reports on progress
under the IF, and invited comments from the floor.
20. The representative of the European Communities expressed satisfaction with the reports and
stated that the IF appeared to be firmly back on track. He welcomed the work undertaken by the
Secretariat and by the other agencies, specifically the World Bank. He reiterated the commitment of
the Communities and its Member states that had financed a part of this programme. He urged that the
timetable for the Pilot Scheme be kept so as to have a meaningful report for the Doha Conference.
More progress would result in mounting confidence in the IF programme. He expressed the hope that
the dates indicated for the presentation of the Trade Integration Strategies and other reports, would bemaintained, without slippage. He noted that in addition to the Pilot Scheme there was the
accompanying work in LDCs that had held Round Tables. He requested that a status report on the five
LDCs should be part of the report made by the Director-General to Doha. He said that it was
important to show the breadth of the activities and not focus only on the three pilot countries. Finally,
he said there was a need for a benchmark at Doha that could allow Members to consider further stepsat the Ministerial Conference.
21. The representative of Japan said that his delegation attached great importance to the IF
programme. He noted that the redesigned IF had moved to the implementation phase. His delegation
stated that transparency and co-ordination in the IF  had significantly improved with the establishment
of the IFSC and the expanded IAWG.  At the same time, he said that there was scope for furtherimprovement to enhance co-ordination in the impl ementation of the IF Pilot Scheme. He said that
trade-related technical assistance by development partners, in the beneficiary pilot countries, should
be well coordinated and supportive of the IF Pilot Scheme. He said that it was appropriate that donors
contributing to the IF Trust Fund were informed of the utilization of the Trust Fund resources, in
order to consider further possible contributions to the IF. He also suggested that the contributingdonors be informed and consulted on the project documents of the Pilot Scheme at an early stage. His
intention was not to negotiate project documents. He stressed that it would enable donors to consider
and contribute in the implementation of the Pilot Scheme. He recalled that the IF Trust Fund had two
windows, with window II for the earmarked contri butions. He suggested that donors contributing
under Window II be kept informed of their contribut ion. This he said would promote transparency and
coordination among donors, agencies and the LDCs concerned.  It would also strengthen the IF.
22. The representative of the United States said that her delegation strongly supported the IF.  She
informed the Sub-Committee that, in May 2001, the United States had contributed US$ 200,000 to the
IF Trust Fund. She was encouraged that the implemen tation of the IF Pilot Scheme for the three pilot
countries was underway and looked forward to periodic reports on the status of the pilot scheme. The
IF Pilot Scheme studies were important in the context of technical assistance to be discussed at Doha.
Her delegation suggested the IFSC, oversee the process of gathering further information such as, thestatus of the PRSPs and the schedules of CG meetings on possible additional Pilot Phase countries.
23. The representative of Mauritania thanked all st akeholders for their commitment to the IF and
its success. He said that his country had been selected for the Pilot Phase of the IF.  He thanked the
agencies for the trust and confidence reposed in Mauritania. It reflected several years of work on trade
policy and trade expansion that had preceded the IF. In the month of June, the first phase of work hadstarted with studies on the key sectors of the economy: agriculture, livestock, fisheries, tourism and
competition. The World Bank as lead agency, involved in these studies and in the implementation of
the pilot programme, would supervise the studies carried out. He said the reports of these studies
would be drawn up by September 2001 and would be followed up by a validation study in October.
He said that close coordination amongst the six agencies was important, with each intervening inWT/COMTD/LDC/M/25
Page 5
areas where they had a comparative advantage. His government also attached importance to co-
ordination, by setting up an Inter-Ministerial Committee, supervised by the Prime Minister. At the
expert level, a pilot committee with senior officials from different Ministries, had also been set up. He
added that LDCs attached importance to technical as sistance so that synergy could be created between
trade and poverty alleviation. He stated that the three pilot countries needed the support of all LDCs tosucceed in the implementation of the first phase of the IF pilot programme, so that it could be
extended to other LDCs as quickly as possible. He added that the LDC Ministerial Meeting, in
Zanzibar, provided an opportunity for an exchange in views on the pilot scheme, in preparation for
Doha.
24. The representative of Bangladesh noted that the contributions to the IF Trust Fund had
increased from US$ 4.5 million to US$ 6.2 million. He acknowledged the report on the IF at the
General Council in May, and the personal commitment and the active intervention of Mr. Moore torevive the IF. He hoped that the inflow of funds would lead to constructive and positive assistance to
LDCs. Depending on the success of the pilot scheme, he hoped that further programmes would be
drawn up. He said that US$ 300,000 had been allocated to Bangladesh. His government was
discussing disbursement of this amount on a specific  project under the Pilot Scheme. He noted that at
the High-Level Segment of the ECOSOC, several organizations had indicated their access to funds.UNIDO, for instance, had obtained over US$ 8 million from the EU, for a LDC in Africa. He said that
there was need for some mechanism to incorporate all these programmes into a coherent framework.
He requested the WTO to also coordinate with other agencies outside the six core agencies of the IF.
25. The representative of Guinea thanked Ambassador Iversen and Mr. Osakwe for their reports.
She expressed appreciation with the progress made but noted that the programme had existed for
several years. It had only recently received contributions from development partners to the Trust
Fund. She invited other donors to also participate in the IF Trust Fund. She expressed hope that
following implementation in the pilot phase, other LD Cs would also be able to participate in the IF.
26. The representative of Senegal thanked Ambassador Iversen and Mr.Osakwe for their reports.
He said that LDCs placed importance on the programme. He noted that following the collective
efforts of stakeholders, the IF had taken off with a pilot phase. He thanked the donors for their
contributions to the Trust Fund. He said that it was important to have a follow-up to the IF pilot
programme that currently was being applied in three LDCs. He said that the implementation of the
programme should be extended. He suggested a clear calendar for the extension of the pilot
programme so that the programme set up with all LDCs in mind could be implemented.
27. The representative of Canada acknowledged the efforts of the agencies, the donor community,
and the participating LDCs in ensuring that the IF, as a coherent approach, was progressing well. She
thanked Ambassador Iversen for the progress made in the IFSC. She supported the recommendation
of the European Communities to report on all eight LDCs in the progress review for Doha. With
regard to the comments made by Japan, she agreed that transparency was important. In this regard,
she acknowledged the periodic progress reports prov ided by the Secretariat on behalf of the IAWG.
She added that the periodic circulation of short written reports, which could be sent to Capitals, wouldbe useful. As suggested by Senegal, she agreed that a plan for extension and for follow-up on the pilot
scheme needed to be worked on.
28. The representative of Switzerland reiterated the support of his delegation for the IF.
Switzerland had made a contribution of US$ 500,000 to the IF Trust Fund. This contribution had been
publicly announced at the LDC-III Conference and was also being brought to the attention of the Sub-Committee. His delegation expected to be properly informed on the use of the funds, periodically.
29. The representative of Djibouti thanked Ambassador Iversen and Mr.Osakwe for their reports.
He said that the implementation of the Pilot Scheme would depend on the ability of the IFSC to attractWT/COMTD/LDC/M/25
Page 6
more funds, and to enable the participation of other LDCs in the programme. He said that work was
needed to integrate other countries into the IF.
30. Ambassador Iversen (Denmark) said that the views expressed suggested that the IF was
useful. There was need for regular monitoring of progress made. He assured Members that there
would be diligence and accuracy in reporting. He noted the interest in reporting on all eight LDCs tothe Doha Ministerial.  Of the eight LDCs, he added that there was a difference in the status of these
countries. While implementation of the pilot phase had been initiated from start in three of them, in
the other five there had already been work undertaken under the old "IF" scheme. He suggested that
ITC, look into the existing work in the five LDCs, and report back, before further actions were taken.
He took note of the suggestion by Japan and Ca nada, for improved transparency. He said that
coordination among all donors was the principle underlying the IF. He said that he expected that the
Chairman of the IAWG would do his utmost in this context. He noted the interest in the extension of
the Pilot Scheme, and assured LDCs, that following an appraisal of the pilot scheme, the IFSC, would
consider its extension and further funding.
31. Mr Osakwe in response to the issues raised said that firstly, a report on the five Round Table
countries would be provided. He said that ITC, on behalf of the core agencies, was preparing a report,
to be completed by the third week of August. The report would be considered by the IAWG in
September, and would subsequently be presented to the IFSC, in October, together with an outline of
the report by the Director-General.  Secondly, he welcomed the recognition of the improved
coordination and transparency in the Pilot Scheme. He  agreed with the need to build on it further. He
said that the suggestions would be conveyed to the other agencies, and that further progress could be
expected. Thirdly, on the suggestion that contributing donors be consulted on the project documentwith regard to the pilot countries, he said that th e agencies, under the World Bank led process, would
consult with donors and the beneficiary LDCs in drawing up the Action Plans. With regard to the
proposal of specifically consulting contributing donors on specific projects, he said that the suggestion
would be conveyed to the IAWG, and he would report back subsequently on this. Fourthly, he
recognized the value of regular periodic reports that  were requested by Members, in addition to the ad
hoc oral reports that were provided.  This was necessary.  However, he said for written reports, there
was a need to find a balance between piecemeal ad-hoc reporting, at moments in time, with periodic
reports based on a sufficiently reasonable accumulation of data, that would make it meaningful.
Fifthly, he noted the importance attached to stable financing for the IF. He thanked donors for their
support and said that at the present time, there were no resource difficulties for the pilot scheme.
Sixthly, he said that incorporating other agencies could add value to the work undertaken under the
IF, as had been expressed by some Members. However, in the Joint Statement by the Heads ofAgencies, in July 2000, agencies had taken the posi tion that the issue would be reviewed after two
years. He would also convey the request by Bangladesh, for the expansion of the agencies, to the
IAWG. Seventhly, he noted the request for a calendar for the possible extension of the Pilot Scheme.
He said that this would be communicated to the IAWG and the results of the discussion would be
reported to Members. Lastly, he said that for tr ansparency, the request for information on the use of
finances contributed to the Trust Fund would be provided by the agencies. This request would be
communicated to the agencies at the next meeting of the IAWG.
32. The Chairman proposed that the Sub-Committee take note of the reports made by
Ambassador Iversen and Mr. Osakwe and that the sub-item be retained on the agenda for the next
meeting. He noted that IF Steering Committee would next meet on 3 October 2001. At that meeting, itwould review progress in the implementation of th e IF Pilot Phase. The Director-General would
thereafter report on progress made to Ministers at Doha.
33. It was so agreed.WT/COMTD/LDC/M/25
Page 7
(ii) Recent Improvements in Market Access for Least-Developed Countries
34. The Chairman said that the market acces s survey (WT/LDC/SWG/ IF/14/Rev.1 & Add.1),
considered by the Sub-Committee, had shown significant improvements in market access
opportunities for LDCs.  He reported that since the issue of the survey, there had been further
developments and improvements. For example, Ne w Zealand's offer of duty-free and quota-free
treatment for all LDCs' exports had come into effect on 1 July 2001. Japan and Morocco had also
recently notified measures taken. He recalled the reporting procedures in place for notifications of
market access measures specifically in favour of LDCs.1 He stated that the CTD at its 34th session,
considered the notification by Japan (WT/COMT D/N/2/Add.10). The Chairman of the CTD had
referred the notification to the Sub-Committee for discussions. He invited the representative of Japan
to present the notification.
35. The representative of Japan stated that the Generalized System of Preferences (GSP) scheme
had been notified and that his elaboration was limited to aspects related specifically to LDCs. He said
that at UNCTAD X, in March 2000, Japan had announced its intention to provide duty-free and
quota-free treatment to essentially all products exported by LDCs. Japan had subsequently
implemented some measures on 1 April 2001. Firstly, the Government had extended the GSP for 10
years, effective 1 April 2001. The details were contained in WT/COMTD/N/2/Add.10. Secondly, inextending the GSP, the government had given specia l consideration to LDCs. It had established a new
category of products for which duty-free and quota-free treatment was granted specifically and
exclusively for LDCs. Thirdly, to promote exports from LDCs, Japan, while taking due consideration
of the influence on domestic industry, had extended the product coverage by adding 360 items for
LDCs. About 99 per cent of industrial products, including textiles, were eligible for duty-free andquota-free treatment from LDCs. Fourth ly, GSP benefits were granted additionally to the Democratic
Republic of the Congo (DRC), Kiribati, Tuvalu and Zambia. All LDCs were now  eligible for the GSP
scheme. He added that the GSP tariff rate would be applied in the fiscal year 2001, although the
ceiling would not be removed till the end of fiscal year 2005, with regard to refined copper imported
from the DRC and Zambia. Finally, he said that his delegation would continue to promote exportsfrom LDCs and that Japan would further consider it s response with regard to the remaining products.
36. The Chairman stated that the GSP scheme of Japan extended for a period of 10 years,
effective 1 April 2001, had enhanced the product coverage of preferences accorded to LDCs. He
noted that the products eligible for duty-free and quota free treatment, when exported by LDCs, also
covered textiles and clothing and some agricultural items, as listed in Annex 1 of the notification. He
also noted that Japan would consider further improving market access for LDCs in the context of
progress in a new round of trade negotiations.
37. The representative of Guinea thanked Japan for the measures taken to assist LDCs.
38. The Chairman drew attention to the Communication from Morocco (G/C/6 and
WT/LDC/SWG/IF/18), a developing country, on market access measures in favour of African LDCs.
The Council for Trade in Goods (CTG) considered the notification at its meeting on 5 July 2001. The
CTG had referred the notification to the Sub-Committee for substantive discussion. He invited therepresentative of Morocco to present the measures notified.
39. The representative of Morocco said that at the October 1997 High Level Meeting in Geneva,
his delegation had announced unilateral measures in favour of African LDCs. This had followed the
evaluation undertaken indicating the problems of LDCs related to market access. At the Cairo
Summit, Morocco, had taken measures in favour of  African LDCs. This had been outlined in the
notification (G/C/6 and WT/LDC/SWG/IF/18). The unil ateral market access provided for the removal
                                                     
1 Paragraph 59 of WT/COMTD/LDC/M/24. These repor ting procedures were agreed to by Members at
the 32nd session of the CTD (WT/COMTD/M/32) and the CTG meeting on 14 March 2001 (G/C/M/47).WT/COMTD/LDC/M/25
Page 8
of all customs barriers on several products imported from these countries. Debt to Morocco, owed by
African LDCs, had also been cancelled. His gove rnment hoped to extend these measures to other
LDCs in the future. The product coverage was based on a study by the Moroccan Trade Institute,
which had examined the principal products originating from African LDCs. The measure was taken
with a sense of solidarity with the 34 African LDCs included in the initiative. Finally, he expressedsatisfaction with the outcome of the LDC-III C onference and the programme of action adopted. He
hoped that it would enable LDCs to integrate fully into the multilateral trading system.
40. The Chairman said that the debt cancellation for African LDCs and the preferential tariff
treatment accorded by Morocco, were concrete steps. He noted that the duty-free treatment given
could assist in the integration of African LDCs into the multilateral trading system and could also
further promote intra-regional trade.
41. The representative of Norway welcomed this initiative. He encouraged other developing
countries to offer similar schemes with as wide a product coverage, as possible.
42. The representative of Switzerland informed the Sub-Committee of the revision in their GSP
scheme. He said that his delegation had implemented a GSP that was generous and which had been
extended to all LDCs, since 1997. On Switzerla nd's imports from LDCs there were presently no
duties on industrial products and very few duties  on agricultural or food products that had been
processed. Duty-free treatment for LDCs applied to about 90 percent of all tariff-lines. He added that
in response to the appeals made by intergovernmental organizations and LDCs, Switzerland had taken
a new initiative to improve market access for products originating from LDCs. His government had
now approved a proposal to provide LDCs market access in line with the recent initiatives taken by
the EU and Norway (Everything But Arms). He sa id that the changes to the GSP would come into
effect in a phased manner and would be notified shortly.
43. The representative of Bangladesh expressed appreciation for the measures taken by Japan,
Norway and Switzerland. He also thanked Morocco , for the "South-South Cooperation", evident in
opening their markets to African LDCs, and several other countries that had provided market access
for LDCs. He said that market access was key for the development of countries that had made "trade"the core of their development strategy. Gains from trade capacity building and the IF would not be
fully realized, without access to markets. LDCs accounted for 0.4 percent of world trade, and
providing greater access to LDCs, would not affect trading partners significantly.  There was a gap in
meeting LDCs requests for market access by the developed country partners. In addition to tariffs, he
said that on market access, LDCs, were referring to non-tariff measures as well. In this regard, he
referred to paragraphs 45 and 46, of the report of the Secretary-General, to the High Level Segment of
the ECOSOC, contained in document E/2001/83. He said that market access should be meaningfuland that the effect of denying preferences even though they formally existed needed to be looked into.
44. The Chairman also updated Members on further information brought to his attention. The
Director-General had received letters from the Czech Republic, Hungary and the Slovak Republic in
response to his request for notifications and information on preferential market access for LDCs. In
the responses, the concerned Members informed the Director-General of the existing GSP schemes,offering duty-free and quota-free access to all LDCs' exports. Copies of the letters were circulated to
the Sub-Committee. He also reported that at the CTD meeting in May 2001, Norway had announced
further improvements in their preferential scheme in favour of LDCs. Norway would offer duty-free
and quota-free treatment to all LDCs' exports (except arms), with effect from 1 July 2002. The
Chairman proposed that the Sub-Committee take note of the statements made, and report to the CTDand the CTG, as appropriate, on the market access measures taken specifically in favour of LDCs. He
urged Members to update notifications, to enable the Secretariat to report on the improvements in
market access for LDCs, on a periodic basis.
45. It was so agreed.WT/COMTD/LDC/M/25
Page 9
E. THE THIRD UNITED NATIONS CONFERENCE ON LEAST-DEVELOPED
COUNTRIES, BRUSSELS; 14 –20 MAY 2001
(i) Report on the Meeting by UNCTAD Executive Secretary to the Conference
46. The Chairman drew attention to the Thir d UN Conference on LDCs (LDC-III) held in
Brussels. He said that the outcome of the Conference was reflected in the Plan of Action adopted.
The contributions of the Sub-Committee to the thematic session on "Trade" at LDC-III had been well
received. He invited the representative of UNCTAD, Mr. Iftekar Chowdhury, Ambassador/Special
Advisor to the Secretary General of UNCTAD, to brief the Sub-Committee on the Conference.
47. The representative of UNCTAD said that LDC-III, in Brussels, was held pursuant to the UN
General Assembly resolution 52/187, of 18 December 1997. UNCTAD was designated as the focal
point and Mr. Ricupero, the Secretary-General of the Conference. The Conference had all major
stakeholders participating.  The conference was organized with a view to achieving an action-orientedoutcome. The event was organized on three tracks: i) the thematic debate on contemporaneous issues,
Chaired by Ministers from developed countries and LDCs; ii) the Conference itself; and, iii) the NGO
forum. He reported that the subjects covered were  wide and that the participation was enthusiastic.
The concept of early "deliverables" provided th e international commitment within the Programme of
Action. He praised the contributions of the WTO Sub-Committee on LDCs, in this regard. There were
distinct outcomes from the Conference. First, the Programme of Action (PoA), where there was
agreement, on a number of commitments and a broad set of actions. He reported that the
commitments were in seven areas of complementary actions, for LDCs, and their development
partners. These areas were: fostering a people-centred policy framework, good governance at the
national and international level, building human and institutional capacities, building productivecapacities to make globalization work for LDCs, enhancing the role of trade and development,
reducing vulnerability and protecting the environment, and mobilizing financial resources.  Second,
was the Brussels Declaration in which participants reaffirmed the need to broadly improve the quality
of life of the peoples of the LDCs.
48. He reported that other initiatives announced  at LDC-III included, an Investment Advisory
Council for LDCs, established by ICC, comprising senior business executives and political leaders
from LDCs. An inter-agency initiative including FAO, WTO and UNIDO was launched, to establish a
Trust Fund, to support upgrading of LDCs' food safety and quality assurance capabilities. There was
also an endorsement by the EU, to fight communicable diseases that severely affected LDCs, and an
agreement on the pricing mechanism for some key pharmaceutical products. Some countries
announced their intention to contribute to the IF Trust Fund. A World Trade University was launched,
to serve as an institute for higher but affordable learning. He added that the preparatory processleading to the Conference, as well as the intern ational attention at the Conference itself, led to
announcements of some unilateral market access measures in favour of LDCs, such as the EU –
Everything But Arms (EBA) initiative. Similar initiatives, were also announced by other countries,
including, Hungary, Morocco, Japan, New Zealand a nd Norway. The EU also announced its initiative
to forego the use of anti-dumping measures on LDCs. A multi-agency technical assistance programmefor FDI, was also launched by the World Bank  Group, MIGA, UNCTAD and UNIDO. Several (29),
bilateral investment treaties were signed by LDCs, with developed and developing countries, thus
leading to increased FDI fl ows and economic cooperation.
49. He said that the implementation and follow-up of the outcome of the Conference was of
immense significance. Implementation and follow-up would be at the country and global level. Hehoped that it would exemplify the partnership between state authorities, international agencies and the
civil society. At the Conference, LDCs also cl aimed ownership of the programmes, although the
removal of structural impediments in LDCs, was the responsibility of all. He reported that UNCTAD
had commenced action on the segments within its ma ndate. In this regard, for the LDC MinisterialWT/COMTD/LDC/M/25
Page 10
meeting, hosted in Zanzibar, in preparation for Doha, UNCTAD together with the WTO was
providing assistance and cooperation.
50. The representative of the European Communities said that as hosts of the Conference they too
had an interest in its outcome and follow-up. He said that "Trade" as reported by UNCTAD, was a
specific commitment in the Plan of Action (Commitm ent 5). There had been an effort to mainstream
issues in the Conference, with "Trade" as an integral part of the combined effort. He said that his
delegation was pleased with the outcome, specifically with the level of concrete commitments. He
noted that the implementation of the commitments would start and was important. There were
politically important commitments at the Conference, such as on Market Access, the IF, and
accessions. He said that this provided a basis for further work to integrate LDCs into the world trading
system. In terms of priorities, he said his delegation was preparing a concise presentation on
implementation, which would be circulated. He said that many of the points raised in Commitment 5were related to the WTO. The WTO had done good work in preparation for the Conference, having
provided information on trade. He hoped this work would continue and help in monitoring the
implementation of these commitments. He added that there was a basis in Doha to further these
issues. In furthering the agenda that was laid out in the Plan of Action, the forward-looking dynamics
of the trading system, and the benchmarks, would need to be fully seized.
(ii) Follow-up on WTO Contributions to the Conference
51. The Chairman invited the Sub-Committee to consider the follow-up on WTO contributions to
the Conference.  He recalled that the WTO contributions were:
(a) a report by the Director-General to LDC-III on the implementation of the IF
(WT/LDC/SWG/IF/17/Rev.1);
(b) a  report on mainstreaming, based on the IF seminar held on 29-30 January 2001,
(WT/LDC/SWG/IF/15/Rev.1);
(c) a study on market access opportunities fo r LDCs (WT/LDC/SWG/IF/14/Rev.1 &
Add.1);
(d) a status report on LDCs' accession to the WTO (WT/LDC/SWG/IF/11/Rev.2); and
(e) a report by the Director-General on the institutional integration of LDCs into the
multilateral trading system (WT/LDC/SWG/IF/16/Rev.1).
52. The Chairman added that following consultations a paper on "Food Safety and Quality,
Standards and Technical Regulations" (WT/LDC/SWG/IF/10) was also agreed to. He said that the
focus was now on follow-up to the Global Programme of Action. He noted that paragraph 113, of the
Global Programme of Action, requested international or ganizations to mainstream the relevant aspects
of the various commitments into their work programmes and intergovernmental processes. He invitedcomments and suggestions from Members.
53. The representative of the United States said that it was useful that the WTO had prepared
reports on its activities. She expressed appreciation for the efforts of the WTO Secretariat to provide
technical assistance to LDCs with regard to the SPS and TBT Agreements, and the Seminar on the
"Policy Relevance of Mainstreaming Trade into Country Development Strategies". The measurestaken to assist in the institutional integration of LDCs into the multilateral trading system were also
commendable. It was suggested that the WTO disseminate information on such activities and that
these reports should be distributed to LDCs and to other international organizations.WT/COMTD/LDC/M/25
Page 11
54. She stated that the revised note on LDCs accessions was a useful companion to
WT/ACC/7/Rev.2, and highlighted the specific status and experience of LDC accession applicants.
The WTO accession process could be a tool in mainstreaming trade into the development programmes
of LDCs that were not yet WTO Members. She said that the discussions in the Sub-Committee had
increased attention on the needs of LDCs in the accession process. Her delegation had presented itsviews at LDC-III, in a joint declaration with Canada, EU and Japan. She said that the US was
committed to improving and accelerating the negotia ting process for those LDCs that were ready to
undertake a protocol package of commitments, provide market access, and adopt and reinforce their
trade rules. In this effort, her delegation would take account of Article XII of the WTO Agreement,
the Uruguay Round Decision on Measures in favour  of LDCs, and other special and differential
treatment provisions in the WTO Agreements. She said that securing adequate technical assistance
and assuring that existing programmes were utilized and coordinated were critical in helping LDCsassure compliance with WTO rules. Without implementation of WTO provisions, the value of WTO
membership was undermined, particularly for LDCs.  The accession process promoted the integration
of economies into the trading system, with trade the engine for economic development. She renewed
the commitment of her delegation to work flexibly and diligently with LDC accession applicants.
55. The representative of Egypt said that the implementation of the Plan of Action adopted in
Brussels was important.  This was stressed at the conclusion of the Conference. He also noted the
reference made in paragraph 113 of the Plan of Action, which invited international organizations to
mainstream the different aspects of the Plan of Ac tion in their work. In this regard, since Commitment
5 related to "Trade", his delegation considered it appropriate that the Sub-Committee undertake to
mainstream the Plan of Action into the work of the WTO. He said that some recommendations in thisregard, could be made to the CTD. He suggested the item be retained on the agenda, for further
discussion, at the next meeting of the Sub-Committee.
56. The Chairman proposed that Members mandate him to discuss specific proposals, with the
Secretariat, that could be brought back for the consideration of the Sub-Committee at its next meeting.
He said that he would examine how work in the six areas of WTO "deliverables" could be continued,and the results of the "Trade" commitments at LDC-III could be incorporated in a manner consistent
with the mandate of the WTO.
57. It was so agreed.
F. LEAST DEVELOPED COUNTRIES ' MINISTERIAL MEETING PREPARATORY FOR
THE FOURTH WTO MINISTERIAL CONFERENCE, ZANZIBAR, TANZANIA, 24 JULY 2001:
REPORT BY LEAST DEVELOPED COUNTRIES COORDINATOR
58. The Chairman said that the LDC Ministers would meet in Zanzibar, Tanzania, on 24 July
2001. A meeting of senior officials would precede the Ministerial meeting. At the request of LDCs,
the Secretariat had prepared a factual note (WT/COMTD/INF/2), which had been forwarded to the
LDC Coordinator in support of the preparations for the meeting. The Secretariat would participate at
the meeting, and would be represented at the level of Deputy Director -General. He requested
Ambassador Ali (Bangladesh) to brief Members on the prospects and preparations for the meeting.
59. Ambassador Ali (Bangladesh) said that the senior officials were scheduled to meet in
Zanzibar, on 22-23 July, and this would be follow ed by the LDC Ministerial meeting on 24 July 2001.
The meeting was proposed by Tanzania prior to the Brussels Conference, at an LDC -III preparatory
meeting.  He stated that LDCs had been part icipating in trade negotiations, yet had found their
position in world trade deteriorating over time. He recalled that at the first WTO Ministerial inSingapore, there were measures proposed for LDCs, some of which were being discussed in the Sub-
Committee. Thereafter at the second WTO Ministerial in Geneva, there had been follow-up to the
measures taken.  At Seattle, however, there was no pr ogress on measures in favour of LDCs. This had
been a disappointment for LDCs.  Therefore, pr ior to the Fourth WTO Ministerial, LDCs wereWT/COMTD/LDC/M/25
Page 12
meeting in a bid to convince the world community that measures should be taken to facilitate the trade
of LDCs. The Zanzibar meeting would focus on issu es before LDCs at the Fourth WTO Ministerial.
He said that LDCs were trying to formulate their positions in several areas, including market access.
Other aspects that were important included rules of origin, LDCs' accessions and the IF pilot scheme.
He said that it was too early to prejudge the ou tcome of the meeting, although Geneva-based LDCs
had held a series of official meetings to negotiate their positions. He expected two documents to
emerge: i) a political declaration; and, ii) a programme of action. The programme of action would
contain specific ideas. In the programme, attention would be focused on WTO issues such as
implementation, the built in agenda, and new issues. He thanked UNCTAD and the WTO for the
support provided. Most LDCs were expected to be present at the Zanzibar meeting. He said that
UNCTAD had funded the participation of 3 members from each LDC delegation. He thanked the
countries that had contributed to the UNCTAD Trust Fund established to facilitate the participation ofLDCs at the Zanzibar meeting.
60. The representative of the United States regretted the inability her delegation to endorse the
issues Note, prepared by the WTO Secretariat, given the short time available to analyze it. She stated
that parts of the Note fell outside the range of matters dealt with by the Sub-Committee.
61. The Chairman said that the paper had already been distributed to LDCs and had been
circulated only for the information of the Sub-Committee.
62. The representative of the European Communitie s thanked the Ambassador of Bangladesh for
his report. He said that it was useful to receiv e information on the meeting in preparation for Doha.
He hoped that the LDC Ministerial meeting would be successful, and would help advance the issues
for LDCs in the framework of the Doha Conference.  It would also, he hoped, take an open view on
the broader context. He said that the issues paper prepared by the WTO was a useful background note.
He said that it was realized that implementation would be on the forefront of concerns and there was
need for some recognition of the movement on these issues. Various papers including the "G7" paper
had appeared to bridge the gaps. He said that it was not helpful to revert back to the pre-Seattle lists
on paragraph 21 and 22, and other issues. This did not appear to be the way forward. He agreed thatnothing had emerged from Seattle, including nothing for LDCs. He said that if part of the LDC
Ministerial declaration was on "new issues", his delegation would reiterate its commitment to
accompany any new obligations with adequate technical assistance. He expressed concern with delays
in negotiating on grounds of its complexities. He said that this was not in line with recent statements
from the UN, including from Secretary-General, Kofi Annan. He said that the multilateral context and
the Doha Conference, would best serve LDCs to integrate into the world trading system, and to
extract concessions from developed countries for technical assistance, market access and other issues.
63. The representative of Senegal thanked the WTO and UNCTAD Secretariats for their
contributions to the preparations of the Zanzibar meeting.  He stated that the LDC group supported the
statement made by the Ambassador of Bangladesh, in the absence of Ambassador Mchumo, the
present WTO LDCs' Consultative Group Coordinator.  He stated that LDCs were open to the work
undertaken to prepare for Doha.  As follow-up to the Brussels Conference, they had retained the
collective ownership of the Action Plan with their development partners. He stated that the results of
the Zanzibar meeting were important and awaited so that LDCs could state their position and express
their views collectively on the issues raised. He reaffirmed the willingness of the LDC group to work
constructively in the multilateral trading system.
64. The representative of the OAU stated that African Trade Ministers would meet in the autumn
under the auspices of the Organization for African Unity.  He said that they would take account of the
outcome of the LDC Ministerial meeting in Zanzibar in their deliberations.WT/COMTD/LDC/M/25
Page 13
65. The Chairman thanked the Ambassador of Bangladesh for the briefing. He proposed retaining
the item on the agenda and requesting the WTO LDCs' Coordinator to report on the outcome of the
Zanzibar meeting at the next session of the Sub-Committee.
66. It was so agreed.
67. On a related matter, the Chairman said that the WTO Secretariat had received many enquires
from LDCs on the funding of their participation at  the Doha Ministerial. He invited Mr. Chabert,
Director, Administration and General Services Di vision (AGSD), to provide further information.
68. Mr. Chabert Director, Administration and General Services Division, said that based on the
practice for previous WTO Ministerial Conferences, measures were being taken by the Secretariat to
facilitate the participation of LDCs at the Doha Ministerial Conference. The host country, Qatar,
would pay for the accommodation and subsistence of 3 delegates from each LDC. This would in
principle include a Minister, as head of delegation, and two accompanying officials. With regard totravel expenses, the WTO Secretariat had created a Trust Fund last May. The anticipated costs for the
travel expenses were CHF 700,000.  The Head of delegation would receive a business class ticket,
while the 2 accompanying officials would receive economy class tickets. He reported that CHF
132,000 had been collected, with CHF 100,000 received from Norway and CHF 32,000 carried
forward from a Trust Fund created for the Seattle Minist erial. He said that at the last meeting of the
Budget Committee, the Chairman had urged that the additional resources be provided as soon as
possible. This appeal had been repeated at the General Council at its meeting on 18 July 2001.  A
letter was being issued to all potential donors to draw their attention to the funding requirements.
69. The Chairman thanked the Secretariat for the report and noted the appeal made for additional
funding.
G. REORGANIZATION OF WTO TECHNICAL ASSISTANCE: STATUS REPORT BY THE
SECRETARIAT
70. The Chairman invited Members to consider the item on the reorganization of WTO technical
assistance. He said that the Director-General had reported on the re-organization of WTO technical
cooperation, to the General Council, on 18 July. He congratulated Mr. Osakwe on his appointment asDirector, Technical Cooperation Division. He call ed upon Mr. Ravier, Deputy Director-General, to
brief the Sub-Committee on the new arrangements in place for WTO technical assistance.
71. Mr. Ravier, Deputy Director-General said that the reorganization of technical assistance
activities in the Secretariat were announced on 1 June 2001, by the Director-General, and came into
effect on 5 June 2001. These changes were reported to Members by the Director-General, at the
General Council, on 18 July 2001. He said that the purpose of his report was to appraise LDCs of
these changes. Firstly, there was a reorganization of the Technical Cooperation Division, with a newDirector, Mr. Chiedu Osakwe. The Secretariat Working Group on the IF and LDC Issues, had been
merged into this new Division, placing WTO technical cooperation under a single structure. He
assured Members, that the special priority and needs of LDCs had been taken into account in the
reorganization. The organizational chart ensured that the IF and technical assistance for LDCs
continued to be dealt with separately within the reorganized Technical Cooperation Division. Heexplained that the merger of the Secretariat Working Group with the Technical Cooperation Division,
was due mainly to budgetary considerations, as for the most part voluntary contributions financed
technical assistance. It had been increasingly difficult to manage voluntary contributions provided
under separate heads. He noted that while some contributions were clearly earmarked for LDCs others
were not. Therefore allocation of resources had become complex and there was greater efficiency inmanagement under a single structure.WT/COMTD/LDC/M/25
Page 14
72. Secondly, Mr Ravier stated that a Technical Assistance Management Committee (TAMC)
had been established under his chairmanship. The TAMC comprised of four Directors and when
necessary would call on experts in technical cooperation within the operational Divisions of the
Secretariat and from other international organizations. He added that the TAMC would not over-
centralize the management of technical cooperation. The TAMC would provide oversight on issuessuch as strategy, priority setting, and review the spending of resources. This would ensure better
geographic coordination and balance in the delivery of technical cooperation activities.
73. Thirdly, he added that a Technical Cooperation Audit, headed by Mr. Rolian, had been
established. The feedback and monitoring of technical cooperation and the impact of these activities
on the government or private sector in beneficiary countries would be kept under review. He said that
the Audit function was of particular importance in evaluating and responding to the needs of LDCs,
and those countries without Geneva-based representatives. He requested Members to assist andprovide feedback on WTO technical cooperation activities.
74. Fourthly, he said that the Training Division, headed by Mr. Mercier, was now the WTO
Training Institute. This change went beyond relabelling. The objectives were to expand and to
improve on the quality of training provided by the WTO. Training products were being developed
including a diversified range of trade policy courses, training of trainers, distance learning services,and cooperation with universities. He said that the LDCs would be major beneficiaries. Fifthly, he
said that a Trade Information Centre had been established, headed by Mr. Léger. It would seek to
assist countries and particularly least-developed, capacity constrained, and non-resident Members and
Observers, to better access information.
75. The representative of Bangladesh noted the report by the Secretariat and the rationale given
for the reorganization of technical cooperation in the Secretariat.  He acknowledged that change could
be integral in organizations in response to changing situations and needs. However changes in
themselves were not necessarily neutral.  He expressed concern on possible adverse consequences for
LDCs in light of the reorganization. He said attention on LDCs may be reduced. He requested the
Secretariat for a written report on the reorganization of WTO technical cooperation and itsimplications.
76. The representative of Norway thanked the Deputy Director-General for his report and
welcomed the reorganization. He said that the merging of the Secretariat Working Group and the
Technical Cooperation Division should provide synergies. He was mindful of the comments made by
Bangladesh and agreed that the reorganization should not diminish the priority focus on LDCs. He
hoped that there would be improved and increased technical assistance for LDCs. He sought
clarification on the establishment of the Technical Cooperation Audit, and on whether it wasindependent from the Division providing technical cooperation. He welcomed the appointment of Mr.
Osakwe, as Director, Tec hnical Cooperation Division.
77. The representative of the European Communities welcomed the changes and the better use of
resources within the Secretariat. He said that now that the procedural changes were in place, Members
were awaiting a better and concisely defined strategy for WTO technical assistance. He said thatdrafts for this framework had already been discussed and it should include the necessary assurances
for LDCs. While the reminder was not only for the Sub-Committee, he reminded the Secretariat that
the discussions on WTO technical assistance strategy had not been completed. His delegation
expressed interest in its completion in order to enable the new structures to work on a sound basis.
78. The representative of the United States welcomed Mr. Osakwe to his new position and
expressed appreciation with the efforts made to reorganize WTO technical cooperation. She sought
further information on the TAMC, set up to ensure intra-Secretariat coordination and coherence. Her
delegation believed that technical assistance programmes should be more demand-driven and
coordinated amongst institutions.WT/COMTD/LDC/M/25
Page 15
79. The representative of Canada thanked Mr. Ravier for his report and congratulated Mr.
Osakwe on his new position. She joined other delegations in requesting a written report on the
reorganization. She suggested that charts indicating the interlinkages with the CTD, Sub-Committee
could also be included. Information on financial implications and the management of the Trust Funds
was also sought.
80. The representative of India thanked Mr. Ravier for his report and welcomed Mr. Osakwe to
his new position. He suggested that a periodic report on technical cooperation activities be provided to
both the Sub-Committee and to the CTD, following the new arrangements in place. He suggested that
the item be retained on the agenda.
81. The representative of Djibouti thanked Mr. Ravier for the report and welcomed Mr. Osakwe
on his appointment. On the concerns expressed by Bangladesh, he sought clarification on whether
LDCs would be grouped together or would receive  special treatment within the new structure.
82. Mr. Ravier, Deputy-Director General recalled that the report made by the Director-General
had been circulated to the General Council on 18 July. With respect to the request made by
Bangladesh for a written report, Mr. Ravier said that the WTO could add a few comments, or the
Technical Cooperation Division could make a short report on the same basis. On the concern
expressed that LDCs would not be accorded attention under the reorganized structure, he said that theattention to LDCs would not diminish and that the new structure would make technical assistance
more effective. The 30 LDCs that were Members and 9 in the process of accession received about 60
percent of the financial resources for technical cooperation. These proportions would not change in
the future, while the WTO's ability to respond to the requests of the developing countries would be
enhanced. In response to the question on the Technical Cooperation Audit, he said that the Audit wasnot financial. It was auditing of the management and methods of WTO technical cooperation and was
independent from the Technical Cooperation Division. He said that the Director, Technical
Cooperation Audit, reported to him, and that it was for Members to suggest different arrangements if
deemed necessary. He added that financial constraints were being faced and resources were primarily
extra-budgetary. He stressed the importance of stable and predictable funding so as to establish arational basis for delivering technical cooperation. He agreed on the need to continue reporting on
WTO technical cooperation, be it in the Sub-Committee or other fora.
83. The Chairman thanked Mr. Ravier for his statement and the offer to circulate a written report.
He proposed to retain the item on the agenda of the Sub-Committee at its next meeting.
84. It was so agreed.
H. WIPO-WTO JOINT INITIATIVE ON TECHNICAL COOPERATION FOR LEAST
DEVELOPED COUNTRIES: REPORT BY THE SECRETARIAT
85. The Chairman called upon the Secretariat to report on the  WIPO-WTO Joint Initiative on
Technical Cooperation for LDCs. He said that th e Director-General of WIPO and the Director-
General of WTO launched the initiative on 14 June 2001. A report on the assistance to be provided
under this initiative had been made to the TRIPS Council on 22 June 2001.  He invited Mr. Hannu
Wager, from the Intellectual Property Division, to report on the WIPO/WTO joint initiative for LDCs.
86. Mr. Wager from the Intellectual Property Division said that the Joint Initiative on Technical
Cooperation for LDCs, was launched by the Director-Generals of WIPO and WTO, at a ceremony
held on 14 June 2001. Representatives of LDCs attended. The initiative was aimed at helping LDC
Members of the WTO comply with their obligations under the TRIPS Agreement and to make best
use of the intellectual property system for their economic, social and cultural development. It wasopen to other LDCs as well. He said that the Joint Initiative was under the auspices of the WIPO-
WTO cooperation agreement, which came into force in 1996. The Joint Initiative would build onWT/COMTD/LDC/M/25
Page 16
existing cooperation between WIPO and the WTO an d on each organization's own existing technical
assistance programmes. It was similar to the initiative launched in 1998 to assist developing countries
to meet their commitments under the TRIPS Agreement by the year 2000. He stated that under the
Joint Initiative for LDCs, the two Organizations, would work together with countries requesting
assistance and, where appropriate, with donor countries, to maximize the use of available resources byensuring that technical cooperation activities were efficiently planned and coordinated. He stated that
the Joint Initiative envisaged assistance in two phases: i) in the first phase, WIPO and WTO would
organize two regional workshops in the year 2002, one would be for the least-developed Sub-Saharan
African countries and Haiti, and the other for the LD Cs in the Asia-Pacific region. Invitations to these
workshops would be extended to all LDCs, whethe r or not members of the WTO and/or WIPO; and
ii) the second phase would focus on country specific action plans. The workshops, together with
bilateral contacts, would draw up a list of priority  forms of assistance that would be provided. Under
the initiative, LDCs could send requests for technical cooperation to WIPO or WTO.
87. The representative of the European Communities requested information to be circulated in a
written report. He said that this would be useful  in the context of mainstreaming capacity building
efforts currently being undertaken.
88. The representative of Norway welcomed the initiative and looked forward to having further
information.
89. The representative of India welcomed the initiative and stated that it would be useful if oral
reports were followed by circulation of the remarks in writing to fully appreciate the reports made.
90. The Chairman thanked the Secretariat for the re port that would be circulated in writing. He
said that the new initiative was timely in offering as sistance to LDCs to enable them make use of the
intellectual property system for their economic, social and cultural development.
I. OTHER BUSINESS
91. The Chairman proposed that the Sub-Committee meet for its 26th session on 15 October 2001.
92. It was so agreed.
93. The representative of the European Communities announced that the Advisory Centre for
WTO Law had recently been inaugurated in Geneva. The Centre provided assistance to developing
countries, LDCs, and transition economies in WTO la w and dispute settlement mechanisms. He noted
that the assistance was provided, particularly, to poor and least-developed beneficiaries. He added that
of the nine developed countries that had funded the Centre, seven were from the Communities.
94. In the absence of any other business, the meeting was adjourned.
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