RESTRICTEDWORLD TRADE
ORGANIZATIONWT/IFSC/M/4
8 July 2002
(02-3794)
Integrated Framework Steering Committee
Fourth Session
NOTE ON THE MEETING OF 8 MARCH 2002
Chair: Ambassador Henrik Reé Iversen (Denmark)
A. ADOPTION OF THE AGENDA
1. The Chairman welcomed members to the fourth meeting of the Integrated Framework
Steering Committee, and proposed that the agenda be adopted.
2. It was so agreed.
B. REPORTS BY THE IAWG C HAIRMAN ON THE 29TH MEETING , 16-17 J ANUARY 2002; THE
JOINT AD HOC INFORMAL MEETING WITH THE DAC/OECD, 17-18 J ANUARY 2002; THE
SECOND MEETING OF THE IF H EADS OF AGENCY MEETING , 26 F EBRUARY 2002
3. The Chairman said that the report of the 29th meeting of the IAWG, and the joint meeting
between the DAC/OECD and the IAWG were available in the room.  Copies of a letter written jointly
by the DAC Chairman and by the IAWG Chairman  summarising, on their own responsibility, the
main points of the meeting were also available in the room.  Moreover, the Heads of the IF Agencies
had met at the World Bank last week to discuss the IF and other related issues.  The Chairman handed
the floor to Mr. Osakwe, Director, Technical Cooperation Division, WTO, to report on these
meetings.
4. Mr. Osakwe said that he would draw atten tion in his presentation to some basic points
contained in the reports before the IFSC.  He added that the points covered in his presentation were
also dedicated agenda items of the Fourth Session of the IFSC.  Regarding the implementation of the
IF Pilot Scheme, Mr. Osakwe drew attention to the completed Diagnostic Trade Integration Studies
for Cambodia, Madagascar, and Mauritania.  These reports contained prioritised matrices for technical
assistance and capacity building. He said that  the DTIS's had been very well executed, and
consultations between bilateral donors and agencies had progressed at a desirable pace. He said thatparticipants at the 29
th and 30th meetings of the IAWG, at the joint DAC OECD/ IAWG meeting in
Paris, and at the IF Heads of Agency Meeting, had expressed the view that follow-up had yet to be
taken to a desirable stage.  He drew attention to the letter he had sent out with Mr. Jean-Claude Faure,
to which were annexed very specific recommendations that the IAWG had agreed would enhance
implementation and follow-up in the pilot countries.  He added that the need to ensure effective
follow-up was reflected in paragraph 5 of the joint communiqué of IF Heads of Agencies (document
WT/IFSC/1), which instructed the UNDP and World Bank representatives to enter into coordination
with bilateral donors and LDC beneficiaries to identi fy lead donor responsibilities, to effect follow up
in Pilot Countries.
5. On  appraisal of the IF Pilot Scheme, he recalled that it had been agreed that agencies should
undertake an appraisa l of the Pilot Scheme, and that following this, there should be a review of theWT/IFSC/M/4
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Pilot Project.  He said that progress had been made on the IF, but that weaknesses remained.  Some of
the areas of weakness were:
- effective implementation of follow-up;
- absence of a clear designation of roles and responsibilities for agencies, donors, and
beneficiary countries; and
- indicators for evaluating progress.
6. Mr. Osakwe noted that the state of documentation needed to be improved.
7. On the extension of the IF Pilot Scheme, he recalled that it had been agreed that the five IF
"Roundtable LDCs"1  were also part of the Pilot Project.  He  also recalled that at the last meeting, the
IFSC had agreed to extend the IF to eleven LDCs: Burundi, Djibouti; Ethiopia, Eritrea, Guinea,
Senegal, Lesotho, Malawi, Mali, Nepal and Yemen.  He said that IF Heads of Agencies had, as
recorded in paragraph seven of the communiqué issued following their meeting, reconfirmed theextension of the IF to these countries. Work ha d already commenced in Lesotho, Malawi, Senegal,
and Yemen.  Regarding the state of the IF Trust Fund, he said that there was a discrepancy between
pledged contributions and actual remittances to the Fund, and this could affect the actual progress of
work.
8. On the meeting of the IF Heads of Agencies,  he said that the communiqué that had been
issued consisted of three main parts. In the first four paragraphs, the Heads of Agencies welcomed
the launch of the Doha Development Agenda, and stressed the importance of coherence between trade
and development communities.  The central importance of technical assistance was underlined, and it
was emphasised that technical assistance and enhanced market access went hand in hand.  The
importance of integrating trade liberalisation into development frameworks was also stressed.   In thesecond part of the communiqué, Heads of Agencies focussed on the need for effective follow up to
the Pilot Project countries.  They also agreed to extend the benefits of the IF to all LDCs, as far as
possible, before the conclusion of the Doha Trade Round, on the basis of the agreed criteria.  Heads of
Agencies instructed the UNDP and World Bank representatives to enter into coordination with
bilateral donors and LDC beneficiaries to identify lead donors who would be able to effect follow upin Pilot Countries.  The third and last part of the communiqué was dedicated to identifying areas
where heads of agencies would agree to work toge ther to support the Doha Development Agenda.  He
said that each Head of Agency gave a precise list of what agencies could do to support LDCs and
developing countries in the context of current negotiations. On the question of coherence and
coordination between providers of technical assistance and capacity building, the Heads of Agencies
explicitly endorsed the creation of a trade-related technical assistance database.   He said the database
would be predicated on agreed categories of trade-related  technical assistance and capacity building,to which agencies and country providers would report.
9. The Chairman thanked Mr. Osakwe for his summary presentation.  He said that he was
somewhat unhappy with the state of documentation, notably in connection with the timeliness of
distribution,  and added that it was necessary to improve performance in this respect.
                                                     
1 Bangladesh; Gambia; Haiti; Tanzania and UgandaWT/IFSC/M/4
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C. IMPLEMENTATION OF THE IF P ILOT SCHEME IN CAMBODIA , M ADAGASCAR AND
MAURITANIA :  FOLLOW -UP TO THE DIAGNOSTIC TRADE INTEGRATION STUDIES : (TECHNICAL
ASSISTANCE  MATRICES : DOCUMENTS TO BE ISSUED ).
10. The Chairman said that the Diagnostic Trade Integration Studies for the three pilot countries –
Madagascar, Mauritania, and Cambodia - were available in the room.  The studies contained technical
assistance matrices, which identified  prioritised capacity building needs. They also contained policy
recommendations aimed at enhancing the country's integration into the world economy.  The studies
had been  discussed extensively in Integrated Framework Workshops held from 5-6 November 2002
in the case of Mauritania, and 19-20 November 2001 in Cambodia.  The workshop for Madagascar
was yet to be held.
11. The Chairman recalled that  the DTIS responded to the need to create an adequate policy
framework that would enable trade policy, and trade-related capacity building and technical
assistance, to be "mainstreamed" into overall development strategies geared to the reduction of
poverty.  He congratulated the World Bank for taking the lead in the preparation of the studies, and
other agencies and donors for their constructive engagement in the process.  As the IF was still in a
pilot phase,  a number of aspects of the process could be strengthened.  He believed that there was
now a concrete menu of technical assistance and capacity building needs.  As the Heads of the SixCore IF Agencies made clear in their recent communiqué,  the onus was very much now on
development partners to ensure that concrete follow up took place.  For this reason, he believed that
this agenda item was a critical one, which he expected to find at every single IFSC meeting
henceforth.
12. The Chairman invited Mr. Ataman Aksoy from the World Bank to provide an update on
"progress to date" on the implementation of the IF Pilot Scheme.
13. Mr Aksoy said he would begin by providing some background to the DTIS process.  He said
that it was an observed fact that over the last decade, tariffs in LDCs had fallen dramatically,
quantitative restrictions had been almost all eliminated; and foreign exchange controls had been
relaxed.  There had thus been significant changes in LDC's trade regimes.  However, if one comparedtrade and GDP data for middle income countries with data for LDCs (controlling for countries
experiencing conflict), growth rates for LDCs were about half those for middle income countries.
Thus, the response to liberalisation had been much lower than anticipated. When one sought an
explanation for this phenomena, types of constraints on growth responses to liberalisation could be
identified: first, there were the "behind the border " constraints, which had little to do with trade
regimes per se , but which limited supply responses to liberalisation; and second, market access
restrictions which were now beginning to be bindi ng constraints on LDCs' growth.  He referred to
graphs he had prepared which showed that the tariffs faced by rich producers were lower than  those
faced by poor producers, despite preferential agreements.  The reason was that principally the exports
produced by the poor were concentrated in agricultural products and low-wage manufacturing
products.  He said that tariffs in these areas were roughly three times higher than tariff faced by most
industrial goods.
14. Based on these facts, he said that the purpose of the DTISs was to  respond to this new trade
agenda.  Consequently, the studies focused on global market access issues, on trade in services; on the
regulatory framework for production; on trade facilitation; and conditions in key sub-sectors
identified for each country.  The DTIS then look ed on the impact of the elimination of these
constraints on poverty, and on this basis developed a matrix of identified TA priorities and policyissues. He said that the studies brought out the fact that policy issues were as important as technical
assistance issues.WT/IFSC/M/4
Page 4
15. Turning to the work undertaken in the Pilot Countr ies, he said that missions to Mauritania and
Madagascar had taken place in July 2001, and to Cambodia in August 2001.  By the end of
November, three reports had been completed, and national workshops had been  held in Cambodia
and Mauritania.  He said that  work had begun in Yemen, Lesotho, Malawi, and Senegal.  He said that
the mission to Senegal had taken place in February, the mission to Malawi in March;  the mission toLesotho would take place in April; and the mission to Yemen in May.
16. He said that the findings from the studies showed that constraints were country and sector
specific. However, a few areas had come up regularly in the studies.  Trade facilitation and transport
were much more important constraints now that the trade regime was more liberalised.  Second,
preferential market access played an important role in trade expansion flowing from domestic
reforms.  He illustrated these points with examples from the Cambodia DTIS.  Concerning trade
facilitation, the study showed that export procedures and payments (legal or illegal) added about15 per cent to the export price of rice.  The simple elimination of this excess could increase the
income of poor farmers by 2 to 6 per cent.  Port charges in Cambodia were nearly four times higher
than those in neighbouring Thailand.  Nearly ninety-nine percent of trade firms interviewed identified
customs procedures, export licences and procedures as their biggest constraint.  The Mauritania DTIS
showed that whereas it cost 2000 Dollars to ship a forty-foot container from Baltimore to Hong Kong,it cost over 7000 Dollars to ship the same container from Baltimore to Nouakchott.  While a number
of factors entered into play, some of these related to maritime rules and the existence of quasi cartels.
The magnitude of the implicit tax involved was many times that of existing tariffs.
17. Mr. Aksoy said that while the studies were important, follow up in terms of technical
assistance and policy action was also critical.  Follow up required leadership by beneficiary countries,and the close involvement of agencies and donors. A number of challenges were faced in the follow
up process.  The first was managing expectations.  There was a long lead time between the completion
of the DTIS and their incorporation into the PRSP process.  Furthermore, improved trade outcomes
would manifest themselves mainly over the medium  term.  Quicker trade outcomes would be possible
if there were to be improved market access in key areas of export interest, notably agriculture.Second, there was a need to maintain and manage partnerships with donors and agencies established
over the past year.
18. The Chairman thanked Mr. Aksoy for his presentation, and handed the floor to the
representatives of the three Pilot Project countries – Cambodia, Madagascar, and Mauritania, which
had benefitted from the DTIS process.
19. The representative of Cambodia said that his country saw the IF as a way of drawing benefits
from globalisation.  One of the reasons for moving fast was that his government saw trade as a
substitute for official development assistance.  Over the last few years, Cambodia had doubled its
trade.  The government was aware of the importance of integrating trade and development policies,
and of implementing a complementary reform agenda. He said that the principle of country ownership
was an important spur to quick reforms.  He said that a trade sector strategy had been presented to a
Consultative Group meeting in June 2001.  This provided the impetus to work on the DTIS, and tofinalise a matrix of technical  assistance in December 2001.  He said that the DTIS focused on policy
constraints, as well as constraints and opportunities in key sectors:  rice, agriculture, fisheries,
garments, tourism, and labour services.  The report also looked at developments in trade policies in
major export markets. He said lessons from the DTIS had helped Cambodia frame policy responses.
Trade policy was now part of the five-year plan;  and  the Ministry of Commerce was an integral partof the PRSP team.  He said that the development of  a growth corridor between the capital and the
deep sea port was being explored, as well as the establishment of a free trade zone with Thailand.
Cambodia had also appointed a full time ambassador to the WTO.  In response to the DTIS, port
charges were being examined, as were export charges on rice.WT/IFSC/M/4
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20. The representative of Cambodia said that steps had been taken to ensure that trade policy
formulation was a participatory process.  He identified two broad categories of technical assistance:
assistance for compliance with rules; and capacity building to enhance trade competitiveness. He said
that the strength of the IF was to bring together the expertise of the six agencies in responding to these
needs. His government had used the IF to draw suppo rt form various bilateral agencies.  He said that
the IF process had required a big investment of political capital, and it was therefore necessary to keep
the momentum going.  He said that in this respect he was happy that the 30th meeting of the IAWG
had approved the first  follow up project for Cambodia.  He said that it was also important to ensure
that political commitments made by ministers transl ated into a practical difference at the technical
level.  He pointed to Cambodia's recent experience at the second meeting of its working party on
accession,  at which he felt the political commitment made by ministers  had not filtered down to the
technical  level.  He said that concrete commitments, and not paper were needed.
21. The representative of Madagascar said that the government of Madagascar had participated in
the Integrated Framework since its inception in 1997.  An IF workshop was held in early 2000, and a
trade strategy paper had been prepared.  At this point, new arrangements for the Integrated
Framework were developed following the inter-ag ency meeting held in July 2000.  Following the
initiation by Madagascar of efforts to integrate trade and sector strategies into an overall developmentframework, Madagascar was selected to participate in the IF Pilot Project.  A Diagnostic Trade
Integration Study was prepared in October 2000, but prevailing political conditions prevented the
holding of a workshop.  Nevertheless, the trade ministry was consulting with agencies and donors on
how to ensure follow up to the DTIS.  A delega tion from the ministry of commerce was to visit
agencies in Geneva from the 17
 to 24 March 2002, in order to prepare a specific project  document.
Madagascar was conscious of the role of trade in development and poverty reduction.  It  counted on
donors and agencies to work in partnership with Madagascar to ensure that the momentum created by
the DTIS process was preserved.
22. The representative of Mauritania underlined the importance given by his government to the
Integrated Framework.  He recalled that Mauritania had prepared a needs assessment under the old
version of the IF, and that throughout 1999, the government had begun a comprehensive domestic
process  to integrate trade and development strategies.  In January 2000, a high level meeting was held
involving domestic stakeholders, agencies and donors, with a view to preparing an IF round table.  In
July 2000, heads of agencies decided to review the working of the IF, and Mauritania was selected as
one the Pilot Countries.  In December 2001, the results of the DTIS process were presented to the
Consultative Group meeting for Mauritania held in Paris.  The government committed itself to
integrating the findings of the DTIS into a pover ty reduction strategy.  The matrix of technical
assistance needs clearly identified priority areas of  action.  He drew the attention of the meeting to a
draft proposal developed in cooperation with the UNCTAD and the ITC, which – drawing on the
matrix of TA needs-  identified three project areas:  a trade information centre; a centre to promote
fisheries projects; and a programme for training for trainers in international trade matters.  The
government was looking forward, after four years of process and studies, to seeing the first concreteresponses materialising on the field.
23. The Chairman said that the statements made were encouraging, and showed that the IF
process could make a difference.  He recalled the point made by the World Bank that the IF was not a
quick fix, and that results would require perseverance.
24. The representative of the United Kingdom, speaking on behalf of bi-lateral donors, welcomed
progress that was being made under the IF pilot programme and thanked the countries and agencies
for their reports and presentations.  Donors believ ed that it was important to remember that the
primary objective of the new IF approach was to embed a trade agenda into the development strategy
of a country and notably with respect to the PRSP and UNDAF process.  Indeed in terms of appraisal
of the pilot programme this had to be a key benchmark to monitor the success of the initiative.WT/IFSC/M/4
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Importantly, the close partnership of the IF process with a country's development strategy allowed for
the presentation of the prioritised matrices of  trade-related capacity building needs at the Consultative
Group and Round Table meetings of the World Bank and UNDP respectively and to which the major
donor resources for large-scale capacity building needs were made available.  The resources
committed to the IF trust fund by bilateral donors now exceeded $ 9 million (or CHF 15 million).This was considerable given the short time that the new IF process had been in place (there were
seventeen bilateral donors).
25. The representative of the United Kingdom stressed that the bilateral response had to be
accompanied by multilateral agency action to the prioritised matrices.  Equally a considerable element
of the DTIS consisted of policy recommendations which if appropriately undertaken were of
significant benefit to recipient countries.  Beside s donor activities in the CG and Round Table process
and their contribution to the IF trust fund, in terms of  "fast tracking" follow-up to the diagnosticstudies, donors had strong sympathy with the idea of a "lead donor role" (as detailed in paragraph 5 of
the Joint Communiqué of the Heads of Agencies).  Indeed donors had already identified six of the
countries where IF work is already being undertaken and where they were prepared to act as lead
donors (of course subject to consultation with recipient countries), and were working hard to cover the
other countries.  However, it needed to be stressed that the role of lead donor was not to act as donorof last resort, but as one having a strong field presence, it allowed donors to play a catalytic role.  By
being engaged from the outset in the IF process in -country, this would facilitate good donor follow-up
after the completion of the diagnostic studies.  In this respect, donors believed that clear commitment
to reform and effective follow-up action on the part of the pilot countries were fundamental. Local
ownership was critical for successful capacity building.  However, it was recognised that capacity toco-ordinate was limited in many least developed countries and needed to be facilitated and financed.
Consideration needed to  be given to using funds from  the IF trust fund to assist countries to translate
country action plans into concrete priorities and to co-ordinate with donors. Obviously, all parties
needed to work together to specify guidelines in this regard.
26. The representative of the United Kingdom said donors believed that the matrix of capacity
building needs which evolved from the process more easily attracted donor and multilateral agency
responses than stand-alone initiatives, and could be met through the normal round table and
consultative group process, bilateral donor country programmes, and according to the comparative
advantage  of activities, by the other multilateral agencies. In addition, bilateral donors recognised that
they did not have country programmes in all of the IF pilot countries undertaken. To address this,
support to implementing agencies such as UNCTAD and ITC was being considered, and already some
donors had started discussions and identified funding to be provided to those agencies to supportitems listed in the prioritised matrices for the pilot countries.  Finally, donors were very supportive of
the philosophy of the "IF concept" as now currently crafted. The tripartite process of involving
recipient and donors countries working with the multilateral agencies provided a very transparent
mechanism to move ahead.  They believed it provided a viable structure to ensure effective delivery
of trade-related capacity building and co-ordination to avoid duplication and moreover to provide acoherent policy framework to ensure that the benefits of trade are realised by developing countries.
27. The representative of Canada said that the donors collectively had crafted the statement made
by the United Kingdom, and wished to place on record Canada's positive assessment of the state-of
play-in the IF process.  She said that it was very important that once trade was mainstreamed that
beneficiary countries raised the issue in capitals with donors.
28. The representative of the United States said that United States aid missions had been
encouraged to expand trade-related capacity-build ing in their programmes.  Several meetings had
been held with the World Bank and the Pilot project countries, and responses to the matrix of
prioritised TA were being identified.  The United States government would implement these
programmes as soon as possible.  The United States was engaged with the government and the privateWT/IFSC/M/4
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sector in Zambia to encourage trade mainstreaming in Zambia, and was also engaged in  parallel IF
activities in Mali and Mozambique.   The United States was ready to assume the role of lead donor in
Mali, and was looking into what role they could play in Burundi; Djibouti; Eritrea; Ethiopia; Guinea;
Lesotho; Malawi; Senegal; and Yemen.
29. The representative of Denmark said that the government's basic policy document gave
priority to trade-related capacity building, which was being integrated into bi-lateral programmes.
Denmark was also prepared to continue its support of multilateral trade cooperation.  As the latest
budget in Denmark  had yet to be passed, it was more difficult for him to provide any specific details
on actual levels of commitment.
30. The representative of the European Communities said that ownership by beneficiary countries
was critical. It was necessary that the governments of beneficiary countries should be fully behind the
changes and actions that needed to be effected on the basis of the DTIS process.  He complementedthe government of Cambodia for its commitment to the process.  He asked that the WTO Secretariat
ensure that the final versions of the documents be prepared.
31. The representative of the Netherlands said that it was important to increase awareness of the
Integrated Framework at the field level.  He said that the Netherlands had taken steps to ensure that
field officers and ambassadors were briefed on the IF.
32. The representative of Uganda said that it was pleased that lessons learnt from the past had
yielded good results. He said there was a clear attempt to mainstream trade into development
strategies.  He said that if the IF failed, talk about coherence would remain a pipe dream.  It was
therefore refreshing to see that there was evidence of increased coherence on the part of donors and
also of beneficiary countries.  He said that the designation of lead donors in certain countries waswelcome, and that lead donors would be useful in coordinating follow-up.  He said there was value in
the idea, first mooted at the IAWG meeting in Pa ris, of using Trust Fund money in assisting the
beneficiary country to take the lead  to ensure follow-up.
33. The Chairman invited the agencies to take the floor to present how they  envisioned following
up on the pilot projects.
34. The representative of the World Bank said his agency was working closely with the IMF on
three dimensions: (i) getting country teams and governments to consider policy issues identified in the
study in order to bring these issues into the countr y team's discussions with governments. (ii) working
within PRSP teams to channel  the DTIS findings in to the PRSP  (iii) using outstanding monies from
the sum allocated from the IF Trust Fund for the DTIS to help implementing counterparts in
beneficiary countries to articulate the projects and programmes identified.
35. The representative of the UNDP said it was necessary to distinguish between what could be
done in terms of supporting the process, and the programmatic dimension.  Supporting the process,
the UNDP was active in financing workshops and studies. This was set to continue.  In terms of
financing the issues identified in the matrices, the review of th e UNDP's mu lti-year programme would
lead to a re-allocation of resources, especially in the area of linking trade and poverty reduction.   In
relation to Cambodia, he said that the UNDP could act at three levels.  First, a  regional programme
on trade, investment and poverty reduction in Asia had been approved.  From this programme,
resources would be made available for Cambodia in the context of the programme's activities.
Second, the UNDP- UNCTAD programme on policy advice and competitiveness would be used as a
vehicle to finance activities in Cambodia.  UNDP field officers had also participated in collaboration
with the ITC in the development of a project which was to be funded by the Japanese funds in the
Trust Fund earmarked for Cambodia.WT/IFSC/M/4
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36. The representative of UNCTAD said that UNCTAD had embarked on the preparation of
technical assistance proposals based on the TA matrices found in the DTIS.  He said that there was
close consultation between UNCTAD and the beneficiary countries in the preparation of these
proposals.  He said that the proposals were being shared with partner agencies to identify
complementarities in action.  He said that proposals would also be shared with lead donors.  Projectdocuments had four components:  (i) background and mandate (ii) brief project description relating
the project to the TA matrix (iii) a timeframe for the implementation of the project; and (iv) an
estimated budget.  In the case of Cambodia, UNCTAD intended to present a project related to WTO
accession; a review of preferential arrangements;  projects related to assistance to  the reform of ports;
projects related to the training of port managers; projects related to ASYCUDA; and projects related
to the tourism sector.
37. He said that in the case of Mauritania, the areas identified were: strengthening capacity in
international trade; training in modern port ma nagement; improvements in the investment regime;
support for the development of the tourism sector; and improvements to ASYCUDA.  Finally, in
relation to Madagascar, the areas identified were: training of trade negotiators; implementation of the
advanced cargo information system; ASYCUDA; capacity-building in competition policy and law;
capacity building in the information sector; capacity -building in the tourism sector.  He said that
UNCTAD was undertaking these activities within existing resources and capacity.  It had devoted two
full time staff to follow up the DTIS and to coordinate with partner agencies.  He said that
UNCTAD's capacity would need to be enhanced as the Integrated framework was extended to more
LDCs.
38. The representative of the International Monetary Fund said that the IMF was not a project
executing agency, but that its focus lay in ensuring the overall integrity of the project framework, and
the consistency of the projects with the objectives of growth and poverty alleviation.  The IMF also
provided technical assistance on tariff policy and customs administration, which totaled 6 million
dollars per year. Currently, 14 LDCs benefited from such assistance.  For example, the IMF had
placed a resident customs adviser in Cambodia.  He said the DTIS had been circulated to countrymission chiefs, who expressed their satisfaction with the work done.
39. The representative of International Trade Ce ntre said that the ITC worked in close
collaboration with the Agence Intergouvernementale de la Francophonie in assisting the three LDCs
in the preparation of the DTIS.   Regarding Mauritania, he said that the ITC had developed two
project documents, which focused on two projects: a training centre; and centre for promoting
fisheries exports.  Regarding Madagascar, ITC was helping to organise a familiarisation visit in late
March in Geneva, to help develop a project document.  Regarding Cambodia, he said that there weretwo contributions; developing a national unit to m onitor trade and poverty issues; and strengthening
supply side responses in agriculture, fisheries and handicrafts.
40. The representative of the WTO said that follow-up to the IF was a prominent part of the
Technical Assistance Plan.  Regarding Mauritania, the technical assistance needs considered were
those identified in the DTIS matrix, and raised in a separate letter to the Inter-agency Working Group
by the Minister of Economic Affairs.  One area for action was customs valuation and support in the
area of customs administration constituted the priority axis of intervention by the WTO.  Four areas of
assistance could be identified:  revision of the legislation and regulations in force; a draft revision of
the customs code was in preparation; training of staff;  information and sensitization on customs-
related questions and problems; and setting up a national tariff and its proper implementation ( thiswas linked to the question of dealing with under-invoi cing).  The second area consisted of  support for
economic competitiveness and regional integration.  This area of action would consist in providing
information and training senior staff in various ministries dealing with trade-related issues to deepen
their knowledge of the world trading environment.  Priority sectors were:  investment; intellectualWT/IFSC/M/4
Page 9
property; regionalism; trade and environment; trade negotiations; the interaction between  WTO rules
and the Cotonou process; and opportunities arising out of preferential market access schemes.
41. The WTO representative said that regarding Cambodia,  the chief components were activities
in the areas of customs and agriculture.  More general requests in the matrix relating to services could
be accommodated through regional events, such as for example the various regional workshops onGATS and GATS related issues to be conducted in the ESCAP/ASEAN region.  On customs, the
WTO could organise a technical mission or workshop on customs valuation.  To maximise the
outcome, this activity should be undertaken in collaboration with other agencies.  Assistance for
Cambodia in its process of  accession  was an overarching theme which encompassed the other
specific issues.  The WTO had already planned a specific technical mission to provide assistance in
relation to commitments in agriculture.
42. The representative of the European Communities sa id that he was struck by the fact that the
agencies had individually identified follow-up activities.  He asked how the agencies envisioned
coordination amongst themselves in the follow-up process, and also with donors.  There needed to be
a way to coherently disseminate information on a coordinated basis.  This could be done on an in-
country implementation basis, through a unit.
43. Mr Osakwe, speaking in his capacity of Chairman of the IAWG, said that the importance of
coordination was recognised.  One of the decisions  taken was that without prejudice to individual
statements, it was agreed that agencies would make a coordinated statement on follow up at the next
meeting.
44. The Chairman said he would attempt to draw some conclusion on this agenda item that
reflected what had been discussed, which he hoped would help the IF process produce tangible
results.  He concluded as follows:
(i) First, as far as the three Pilot Countries were concerned, the diagnostic studies and the
prioritised matrices for technical assistance had been a success.   There was a clear
picture of what was needed, and the imp act that actions taken could have.  Two
countries had held IF roundtables (Cambodia and Mauritania), and the third,Madagascar, was to hold one as soon as the domestic situation permitted it.   It was
therefore necessary to proceed to the second stage;
(ii) Second, the main responsibility of coordi nating the follow up, following the logic of
mainstreaming trade into development plans, clearly lay with the beneficiary
countries in their capitals;
(iii) Third, bilateral donors and agencies had made useful and positive statements,
showing  they were ready to move further.  All of them had indicated that they would,
within their respective capacities and mandates, contribute to the continuing
endeavour.  Recipient countries had taken this on board and appeared to have clear
ideas as to whom they should address. Beneficiaries may express preferences as to
which partner could play the role of lead donor (not donor of last resort) with them on
coordinating follow-up;
(iv) Fourth, while it was not possible to formally appoint lead donors or agencies at this
stage, there were indications to suggest that there would be beneficiary countries that
would be able to work in partnership with lead bilateral donor or multilateral agency,
in order to carry the process to the next step; and,WT/IFSC/M/4
Page 10
(v) Finally, the idea, suggested by some speakers, of using trust fund money to facilitate
coordination in the second stage could be explored.  This could be complicated as it
involved financial rules, and it was necessary to determine if donors were willing to
accept such a use of their contributions. But it was a good idea, and he would see if
by the next meeting progress could be made on the matter.
The meeting took note of the statements made and endorsed  the chairman's conclusions.
D. IMPLEMENTATION OF THE FOLLOW -UP ACTIVITIES TO THE IF R OUND TABLE MEETINGS IN
BANGLADESH , THE GAMBIA , HAITI, TANZANIA AND UGANDA : REPORT BY ITC .
45. The Chairman recalled that under the old Integrated Framework, Bangladesh, the Gambia,
Haiti, Tanzania, and Uganda had organised country round tables to generate responses to their needs
assessments.  He also recalled that subsequently, the IFSC at its first meeting had requested the Inter
Agency Working Group to consult with the five Governments to examine the trade-related technical
assistance projects presented at the round tables, and identify and prioritise those projects in support
of mainstreaming.  It was agreed that this list of prioritised projects would then be considered by the
IF Steering Committee for funding through the IF Trust Fund within a ceiling of US$300,000 for eachcountry.  At the 3
rd session of the IFSC, the ITC had presented projects proposals for the five
countries, and  they had been approved by the Steering Committee at referendum.  He invited the ITC
to make a progress report on the implementation of the activities contained in the approved projects.
46. The representative of the ITC recalled that at the third session of the IFSC, the follow up
projects to the five  roundtables were approved.  All projects submitted were designed to support
governments in their efforts to mainstream trade into their national development plans, to provide
linkages with export-led poverty reduction strategies, and to assist exporters integrate into the global
trading system.  He said the documents were submitted to the government for formal approval, as well
as the UNDP, and became operational in January.  The report containing details of developments in
country projects are annexed to these minutes.
47. The representative of Haiti said that the fourth session of the IFSC demonstrated the progress
that had been achieved on the Integrated Framework.  First, he said that the report by the ITC
accurately reflected the work undertaken in Haiti.  He said that the IF had fostered much closer links
between the government and the private sector.  Secondly, he said that the ITC was in daily contact
with the Haitian ministry of Trade to move the IF  forward.  A dialogue had been established between
the Ministry of Trade, the Chamber of Commerce, the Inter-American Development Bank and the
European Communities to develop specific projects for capacity building for both the government and
the private sector.  He said that the ITC was uniquely placed to assist both the public and private
sectors.  He said that it was important to continue to follow up on the five round table countries.  He
said that the 290,000 US Dollars initially devoted to  follow-up activities had been utilised, and that
Haiti would soon be soliciting additional support.  There was now substantial momentum in the
Integrated Framework, and he impressed on the development partners who were going to makecontributions at the 11 March pledging conference that money devoted to trade-related capacity
building was money well spent.
48. The representative of Uganda said that the five roundtable countries should also be considered
to be Pilot Project countries, and that lessons drawn from the DTIS process be applied to the five
roundtable countries.  He said that Uganda was putting much emphasis on strengthening institutionsthat would foster cooperation between the  private sector, the government, and civil society in terms
of policy-making.  He said that Uganda's inter-institutional IF committee also played a key role in
economic policy-making overall.  A national export strategy study was also being  drafted.  It was
hoped that this would be mainstreamed into the poverty reduction strategy .WT/IFSC/M/4
Page 11
49. The representative of Bangladesh said that the ITC carried out an initial mission to initiate
follow-up, and looked forward to concrete results.
50. The Chairman said that the key outstanding question related to how to proceed.  He recalled
that it had been discussed as to whether new diagnostic studies should be introduced to these
countries.  This had been considered to be too unwieldy.  He said that the example of Uganda's exportstrategy being mainstreamed into the country's poverty reduction strategy was useful.  He suggested
that the ITC should look at projects that could assist the five countries in their mainstreaming
endeavours.
51. The meeting took note of the statements made.
E. APPRAISAL OF THE IF P ILOT SCHEME : REPORT BY THE IAWG C HAIRMAN
52. The Chairman said that Members had before them an informal document which compiled the
views submitted by some of the IF agencies regarding the implementation of the IF Pilot Scheme,
based on experience to date.  He said it was necessary  for the passage of time to draw the full lessons
from the pilot project.  However, an honest appraisal was welcome at this juncture, given the
completion of the DTIS in Cambodia, Madagascar, and Mauritania, and the DTIS processes under
way in some LDCs.  He  invited the Chairman of IAWG  to make some brief introductory remarks on
the reports.
53. Mr Osakwe said that the document contained the views of four organisations which had made
written submissions: the IMF, UNCTAD, the World Bank, and the WTO.  The appraisal document
did not deal with the Integrated Framework in its entirety, but focused on the implementation of the
Pilot Project.  He said that there were several poin ts that had been raised in the appraisal exercise, as
follows:
- First, the DTIS's had been of very high quality;
- Second, trade-related technical assistance and capacity building did not work if it was
not delivered within a coherent policy framework;
- Third, there was huge scope for improvement in terms of coordination.  To begin
with, improvement could be made to coordination within beneficiary countries:
amongst various ministries and departments who needed to come to a common
understanding on the role of trade in development.  In this respect, a problem existed
in the fact that the focal point for the Integrated Framework often was accommodated
in a different ministry from the coordinating point for the PRSP and for national
development plans.  It was therefore clear that resources from the DTIS had to be
properly linked to the PRSP process, and internalised by the ministry responsible forthe PRSP or development plans.  On the side of agencies, more needed to be done to
coordinate responses;
- Fourth, there was a lack of clarity in the definition of the respective roles and
responsibilities of beneficiaries, agencies, and donors.  Steps had been taken to
address this.  The donors had agreed to designate lead donors to assist in coordinatingfollow up.  He also refered to paragraph 5 of the joint communiqué by heads of
agencies, which instructed the UNDP and the World Bank to enter into consultations
with donors and beneficiaries to help identify lead donors.  However, more thought
was required in developing a systematic country follow up process;WT/IFSC/M/4
Page 12
- Fifth, it was recognised that the cycles of the DTI and the PRSP did not match.  It was
necessary, therefore, to consciously link the two cycles into a lock-step process;
- Sixth, it was necessary to ensure that pledged commitments were matched by
disbursements.  He said that some of the pledges were time-bound; and,
- Finally, it was necessary to develop indicators to rigorously evaluate the Pilot Project.
54. The representative for the World Bank said that the World Bank had initiated a number of
changes to the way the DTIS process was conducted.  A preliminary mission was put in place to
ensure proper coordination with other agencies, donors and beneficiaries, from the start of the process.
Second, there were time-lags in processes like the PRSP.  It was necessary, therefore, to understand
that adjustments could not be made overnight.  He added that since May 2001, the amount of
interaction between the World Bank and donors had increased greatly.  He said that the follow up to
the DTIS would determine the success of the process.  This was not purely a question of the deliveryof technical assistance: the DTIS process showed that 60 percent of the factors constraining the
integration of LDCs into the world economy were policy issues.  The success of the project needed to
be measured not simply in terms of the quantum of technical assistance delivered, but also in terms of
changes to the policy environment and in institutional capabilities.
55. The representative of the European Commission said that the World Bank was to be
commended for the high quality of the studies.  For its part, the European Commission wished to see
greater attention given to the regulatory and institutional framework relating to international trade.
Regarding the concept of lead donors, he said that it was important that beneficiaries were in
agreement with the concept.  He sa id that in the long run, the aim should be to ensure that beneficiary
countries were in the driving seat.
56. The representative of the United States said that the United States was impressed by the
commitments made by agencies in the joint communi qué issued by heads of agencies.  It was vital
that multilateral agencies and bi-lateral donors make commitments to address urgent trade-related
capacity building needs, and to begin preparations for long term capacity building, infrastructure
needs and policy reforms.  She encouraged the agen cies to investigate mechanisms for creating other
operational trade programmes.  Concerning the DTIS, she suggested that they be put on-line to
facilitate access.  Concerning lead donors, she asked if it was possible to get feedback from
beneficiaries regarding the concept.
57. The Chairman recalled that a first discussion had taken place earlier under the item on follow
up to the pilot projects.
58. The representative of Lesotho said that capacity in capitals was an issue regarding follow-up.
Assistance was required to put into place the structures to derive benefit from the IF.  He said that it
was a good idea to have lead donors to coordinate the process.  He said that as part  of the Investment
Policy Review with UNCTAD, a lead donor had been  identified, and thus a similar exercise could be
undertaken in the IF.  It was necessary that the lead donor chosen had an understanding of the
dynamics in the beneficiary countries.
59. The representative of Uganda said that the pilot projects represented an improvement over the
old IF.  He underlined the importance of follow-up.  He said that the idea of a lead donor was a good
one, provided it was understood that it would not be a donor of last resort, but would focus on
coordinating follow-up.  He said that in some cases it was necessary to develop institutional capacity
amongst donors to coordinate follow-up.WT/IFSC/M/4
Page 13
60. The representative of Haiti  said it was necessary to consult with his capital on the concept of
lead donors.  It was important to look carefu lly at what donor would play the lead role.
61. The representative of the United States thanked beneficiaries for their input.  She recalled that
lead donors could be either bilaterals or multilaterals.  The role of the lead donor was indeed related to
coordination, and ensuring consistency in the process.
62. The meeting took note of statements made.
F. EXTENSION OF THE IF P ILOT SCHEME : PROGRESS REPORT BY THE WORLD BANK.
63. The Chairman recalled that, pursuant to Paragraph 11 of the framework document of the IF
Pilot Scheme, the Inter-Agency Working Group (IAWG) at its 27th Meeting, 6-7 September 2001,
reviewed the on-going implementation of the Pilot Scheme in the LDCs and considered its extension
to other LDCs.  As a result, the IAWG agreed that the following eleven LDCs be considered for thenext phase of the IF Pilot Scheme: Burundi, Djibouti, Ethiopia, Eritrea, Guinea, Lesotho, Malawi,
Mali, Nepal, Senegal and Yemen.  The Steering Comm ittee took note of the list of the pilots at its
third session, and the extension was confirmed by the Heads of IF Agencies at their meeting in
February.  The chairman invited Mr. Ataman Aksoy  from the World Bank to present a progress
report on the extension of the IF Pilot Scheme.
64. Mr. Aksoy said that when the eleven countries ha d come forward expressing an interest in the
IF,  the World Bank had consulted with its country teams and with governments about the timing,
organisation, and structure of missions.  At the last IFSC meeting, clearance had been given to go
ahead with four of the countries.  He said that work on the other seven countries would begin.
65. Mr. Osakwe clarified that the extension of the IF to eleven Pilot Project countries had been
confirmed by the Heads of Agencies at their meeting in February 2002, and this was recorded in
paragraph 7 of  the joint communiqué.
66. The representative of Burundi said his government welcomed the support given by agencies
and donors to the IF.  Burundi was happy to be on the list of pilot project countries.  He said that,
following a request by the government, the UNDP had initiated together with UNIDO an assistanceprogramme for the formulation of the integrated framework, and for industrial and commercial re-
deployment.  Two studies had been carried out: one on the elements of industrial strategy; and  the
other on the legal, institutional, administrative, and regulatory framework of the industrial and trade
sector. He said that the two studies were finalised in November 2000, and  some recommendations
had emanated from it.  First, identification of projects that could be put into practice by private
operators.  Second, evaluation of the institutional, legal, and administrative framework for the
promotion of the industrial and private sectors.  Third, the aim of producing a diagnostic study that
would serve to support the rehabilitation of Burundian industry and its integration into world markets.
Fourth, putting in place support framework for export crops.  Finally, developing projects that would
be highly labour intensive in order raise the purchasing power of the population at large.
67. He said that the participants at the finalisation workshop had taken note that the integrated
framework process tied in with the national development strategy through the development of theprivate sector.  Consequently, a further project w ould be aimed at fostering the links between the
integrated framework and the private sector, to enable private sector agents to identify areas of export
interest.  An administrative unit already exists, drawing on the expertise of the World Bank, the
UNIDO, the UNDP, and the ITC. This unit already supported a private operator in the area of
essential oils for agro-alimentary, pharmaceuticals, and cosmetic purposes.  The other areas of interestwere flowers, fruit and vegetables, textiles, confectionery and cereals. Terms of reference had beenWT/IFSC/M/4
Page 14
drawn up to examine the impact of transport conditions and the institutional framework, on the
development of non-traditional exports.  This same  study would also look at small and medium scale
enterprises, and the strengthening of standards. There would also be  a section devoted to services and
mining.  All this would lead to a national strategy and implementation timetable.  For all these
reasons, Burundi looked forward to the implementation of the DTIS phase of the IF pilot project.
68. The representative of Benin said that  his delegation had followed with interest discussions on
the integrated framework.  He said that  the integration of trade into national development plans for
poverty reduction was a universally shared goal.  In  the light of the positive experience of the pilot
project countries, Benin requested to be included in the next list of least developed countries to be
covered by the IF.
69. The representative of Yemen said that the World Bank had conducted a preliminary mission
to Sanaa in February and that this had been fully satisfactory.  He said that with regard to the question
of lead donors, his delegation would consult with its capital.
70. The representative of Ethiopia said Ethiopia was pleased to be included in the second phase of
the pilot programme.  She said the World Bank had consulted with authorities as to how to proceed.
Referring to the long lead time between the preparation of the DTIS and its incorporation into the
PRSP, she said that her country was busy with the PR SP process, and would finalise this in the course
of the year.  The question remained as to how to integrate the DTIS into the PRSP.
71. The representative of Guinea said that Guinea had been participating in the IF since
September 1997, the date at which it had formally submitted to the six agencies its needs assessment.
She said the implementation of follow up activities was supposed to enhance the contribution of trade
to development.  She said that that a delegation fro m Guinea had taken part in an informal roundtable
in Geneva at the WTO, with development partners.  A multi-year strategy document was presented.
Following this meeting, the authorities had initiated, in collaboration with the UNDP and the UNIDO,
a process of reflection regarding the development of the private sector, and this included a chapter on
trade.  The government had benefitted from technical assistance from the ITC.  This process had led
to the identification of the strategic priorities for the development of trade, and a document setting outa poverty reduction strategy focusing on trade was developed.  In October 2000, an intermediary
PRSP had been drafted.  This draft had emphasised the role of trade in poverty reduction.  All these
different actions were highlighted in document WT/IFSC/W/9.  For these reasons, the six agencies
had proposed Guinea take part in the IF pilot project.  Guinea had sent officials from governments and
participants from the private sector to better understand the working of the Integrated Framework.
The representative of Guinea had also travelled to  Conakry to follow up with the delegation that had
gone to Mauritania, and to consult with agencies and development partners.  On 4 March 2002, thegovernment had written to the six agencies to say th at all the conditions for participation in the DTIS
were brought together.  The government was ready to integrate the findings of the DTIS into the
PRSP which would be finalised later in 2002.  Guinea was ready to welcome the mission led by the
World Bank from 5-8 April 2002.  Guinea called for the support of all partners in the IF process to
keep the momentum of the IF going in Guinea.
72. The representative of Uganda said that paragraph 7 of the joint communiqué by Heads of
Agencies demonstrated the political commitment at th e highest level to the integrated framework, and
confirmed the extension  of the IF to eleven new pilot project countries.  This was to be welcomed.
73. The representative of Canada said that the question of extension had arisen in previous
meetings.  At first, Canada had been hesitant regarding extension, but given  the results of the DTIS
process in the three initial pilot studies, Canada welcomed the extension to eleven new countries.  She
said the designation of lead donors and their inclusion in the process from the outset would facilitate
follow up.WT/IFSC/M/4
Page 15
74. The representative of the United States concurred with the Canadian statement, and was
interested in knowing what preparations had been underway on the part of the World Bank.
75. The representative of the European Communities endorsed the statements made by the US
and Canada, and welcomed the elaboration of a detailed calendar for extension.  He recalled that at
the last meeting of the IFSC, the IAWG had proposed the extension of the pilot phase to eleven newcountries.  There had been initial hesitation, but no  objection had been stated within the two week
time-frame the members of the IFSC had  prepared themselves for comments.  Therefore the
extension had been approved.
76. The representative of Zambia asked whether it was possible for the steering committee to
study the positive lessons learnt from the pilot studies, so that LDCs not participating in the IF could
learn from the lessons.
77. The representative of Nepal said that his gove rnment looked forward to the IF mission, and
enquired as to the precise state of the preparations.
78. The representative of the IMF said his organisation had always been concerned to preserve
the integrity of the IF, and supported the extension of  the IF to the eleven countries.  He said that
paragraph 7 of the joint communiqué of heads of agencies said that the lessons had to be drawn from
the pilot projects; that the extension of the IF should be done on the basis of agreed criteria; and, thatany further extension should proceed on the basis of a review of the IF.
79. The representative of the World Bank said the World Bank had been ready in October to
extend the Pilot Project to all eleven countries.  At the time, formal clearance was needed form the
IFSC to proceed with the extension to all  11 countr ies, so a full timetable had not been drawn up. The
World Bank was happy to continue and set up a timetable as soon as possible, and the interaction withcountries had been kept up through country teams.  It was therefore possible for the World Bank to
revert to the IFSC with a timetable within a short space of time.  He said that despite the increase in
capacity at the World Bank to manage the IF process, it was not possible to conduct all the DTIS
simultaneously.  The World Bank would develop a timetable that would ensure that enough time and
capacity were devoted to the studies, and which provided time for discussion by all partners.
80. The Chairman said there was no doubt as to where the process lay, and that everyone was
agreed that the IF should be extended to all eleven countries.  He said that this was clearly indicated in
the joint communiqué by the six heads of agencies, and that those who had been doubtful about the
extension of the IF project were now enthusiastically in favour of the extension.   He said that the
IFSC welcomed the preparation of a new  timetable for the extension of activities to all eleven
countries.
81. Mr. Osakwe recalled that the position of heads of agencies in favour of extending the Pilot
Project to all eleven countries, and which was reflected in paragraph 7 of the joint communiqué, was
not a matter for interpretation.  Heads of agencies had unambiguously committed to the extension.  He
said that the points referred to by the representa tive of the IMF did not in anyway qualify the clear
commitment to extend the IF to eleven countries.   The reference to a thorough review of the IF
related to the general extension of the IF beyond the eleven Pilot Project countries.
82. The representative of the United States thanked the World Bank for its positive attitude, and
recalled that senior members of her government had written to the World Bank outlining their views,
and that these had been accommodated.  She said that the criteria that were set for extension covered
aspects of progress that were desirable in pilot project countries.  The criteria were therefore not
impediments to extension.  The United States l ooked forward to a timetable for the extension.WT/IFSC/M/4
Page 16
83. The representative of the European Communities recalled that the decision to extend the IF
Pilot Project to eleven other countries had been taken at the third session of the IFSC.
84. The Chairman said that while there had been hesitations, the process had led to a universal
endorsement of the decision to extend  the IF to the 11 new least-developed countries.
85. The meeting took note of statements made.
G. REVIEW OF THE IF- I NDICATORS FOR ASSESSING AND MONITORING PROGRESS IN THE IF
86. The Chairman said that owing to the lack of time, and because this item was not urgent, that
the IFSC would revert to this agenda item at a subsequent meeting.
H. FINANCIAL REPORT BY UNDP ON THE IF T RUST FUND.
87. The Chairman said that the report was co ntained in document WT/IFSC/W/7/Add1.  Due to
time constraints, the IFSC would have a substantial discussion on this item at a subsequent date.
I. RATIONALISATION OF ACTIVITIES UNDER JITAP AND IF
88. The Chairman recalled that  the current phase of the JITAP was drawing to a close at the end
of the year, under the terms that had been agreed for its operation.  The main question that needed to
be answered was how to build on the successes of the JITAP; and, maximise the synergies with the
Integrated Framework.  He also recalled, in paragraph 39 of the Doha Ministerial Declaration, that
Ministers instructed the Director-General to consult with the relevant agencies, bilateral donors, and
beneficiaries to identify ways of enhancing and rationalising the IF and the JITAP.
89. The representative of Tunisia said the guidelines for the rationalising of JITAP and IF
activities were in paragraph 31 of the Doha Ministerial Declaration.  He said that there was little
comparison between the two programmes.  While certain actions undertaken under the programme
were similar, the beneficiary countries – whether potential or current – were not identical. JITAP
covered developing countries as well as LDCs.  The implementation of the ministerial directive in
paragraph 31 would need to focus on refining the type of actions conducted under the JITAP, butcould not in any circumstance mean that the two programmes would be merged, or that one would
substitute for the other.  He said that the JITAP programme was a success, and this was borne out by
the mid-term review, which had described the JITAP programme as a pioneer exercise that was
unique in its kind.  He said that for this reason, 25 other African countries had requested participation
in the programme. One way of improving and rationalising the programme would be through a phase
of extension and follow up, which would consist of the consolidation of the gains to date, capacity
building efforts geared to strengthening integrat ion into the multilateral trading system; and,
strengthening export capacities through sector strategies.
90. The representative of Uganda said that discussions under this item should be conducted when
the review of  the JITAP was completed.
91. The representative of Canada said that the evaluation would be completed in May, and she
encouraged parties to put their ideas on paper.
92. The Chairman proposed that IFSC await the completion of the evaluation of the JITAP, to
consider the topic formally.WT/IFSC/M/4
Page 17
93. The meeting  took note of the statements and agreed to the Chair's proposal.
J. JOINT IF S EMINAR "TRADE MAINSTREAMING AND ENHANCING THE IF A PPROACH ": REPORT
BY THE CHAIRMAN OF THE IAWG.
94. The Chairman  recalled that at the last meeting, the possibility of holding a second seminar on
mainstreaming was discussed.  Initially, this had been planned for February 2000, but a variety of
factors, including the pressures of work for the six agencies concerned, meant that the Inter-agency
Working Group decided to postpone the holding of this seminar.  He said that the target date was for
sometime in the autumn, and that the precise details would be announced nearer the time.
K. ELECTION OF THE CHAIRMAN OF THE IF S TEERING COMMITTEE
95. The Chairman said that he had understood that the his position would be limited to one year,
and was more than happy to pass on the position to somebody else.
96. The representative of Lesotho recalled that the terms of reference on the IFSC specified that
the initial chairmanship would go to a developed country, and then subsequently to a least developed
country, which would have been Lesotho.  However, for a number of reasons, Lesotho preferred not
to take the chairmanship at that time, and proposed  that Denmark continue to chair the IFSC, given
the good work to date.
97. The representative of Yemen endorsed the proposal made by Lesotho.
98. The representative of Uganda endorsed the proposal made by Lesotho.
99. The representative of Zambia agreed that Denmark should continue to Chair, but said that the
question of the vice-chairmanship remained open.  This was an internal problem for the LDCs, and
they would consult amongst themselves.
100. The representative of Guinea said that she endorsed the proposal made by Lesotho.
101. The representative of Canada supported the proposal made by Lesotho.
102. The representative of Lesotho said that LDCs would consult amongst themselves to identify
the vice-chair.
103. The representative of Uganda said there was unanimity regarding the Chairmanship, and he
would, as coordinator for the LDCs, report back to th e IFSC with the result of their consultations on
the vice-chairmanship.
104. The Chairman said he accepted to continue to chair the IFSC.
L. ANY OTHER BUSINESS
105. There being no other business, the meeting was adjourned.WT/IFSC/M/4
Page 18
ANNEX I
Status Report on the Implementation of Follow-up Activities to the Round Tables
in Bangladesh, the Gambia, Haiti, Tanzania and Uganda
Report by the International Trade Centre, 8 March 2002
At the Third Session of the Integrated Fram ework Steering Committee held on 12 October
2001, the five projects to follow-up on Round Tables held under the old IF scheme were approved, in
principle.
Subsequently, project documents were submitted for formal approval to UNDP and the
concerned LDCs.  The five documents, with a budget of US$ 291,000 each, were all signed by
end 2001 and became operational upon receipt of the funds by ITC in January 2002.  Preparatory
activities to ensure a rapid kick-off were undertaken since November 2001 and the situation as of
today is as follows:
Bangladesh :  The project aims at raising awareness amongst leather sector entrepreneurs of
global market opportunities, customer preferences, quality standards and design requirements, in
order to maximize export revenue. Capacity building is at the core of project activities.  Access to
market intelligence and improved promotional skills are other building blocks.
The national team responsible for project implementation is being established and a review of
the leather sector was initiated.  A first ITC mission took place, as planned, in February to take stock
of all available information materials, discuss priorities of sectoral requirements with all concernedstakeholders and establish detailed implementation modalities.  The "IF" label of the project was a
facilitating factor during the mission in obtaining full support by the international agencies
represented in Bangladesh and for mobilizing synergies in project implementation.  A forthcoming
presentation of a project work plan with details of capacity building events is expected to consolidate
those synergies and create project momentum.
The Gambia :  The two main focus areas of the project are to assist in the preparation of sub-
sector strategies for products having good export potential and to strengthen the capacities of the
Department of State for Trade, Industry and Em ployment (DOSTIE) and of the Gambia Investment
Promotion and Free Zone Authority (GIPFZA) to provide efficient trade and invest promotion related
services. Detailed work plans have been prepared  for the two project modules. Recruitment of two
national consultants is under way for the sub-sector analysis and it is expected that a first short-list of
sub-sectors having good export potential will be ready by end April 2002. The preparation ofdiagnostic studies on the selected sub-sectors is expected to be completed by July 2002, which will be
followed by market orientation tours for selected exporters.
On the trade information module, initial consultations have been held with DOSTIE and
GIPFZA and a plan of work has been agreed upon. A first technical mission is planned for April
2002.  It has been agreed with the Government of the Gambia that the activities being executed underthe IF project should result in the formulation of a full-fledged export development project in the
country with a special emphasis on poverty reduction. A multi-agency programming mission will be
proposed to this effect for the second half of 2002.
Haiti :  The project objectives are to: Improve the legal framework for trade and build the
capacity of lawyers to draw up international contracts; Strengthen the capacity of the Ministry of
Commerce through the analysis of the institutional restructuring plan and the development of human
resource capacities in trade information and trade negotiation; and prepare a diagnostic study on theWT/IFSC/M/4
Page 19
export supply potential to support the formulation of an export promotion and development strategy.
Within the framework of the first objective a joint ITC/WTO mission was organized in December
2001 to advise the Government of Haiti on implementation issues and to review of the Code of
Commerce and arbitration procedures.  Two training seminars on international contracts for 40
lawyers are scheduled in April 2002 in Port-au-Prince.  A workshop on trade information for 12participants, from public and private sectors, will be held in mid-March under the second objective.
Other activities programmed in spring 2002 include the formulation of a road map aimed at
strengthening the Ministry of Commerce in the delivery of business advisory services and the
preparation of the diagnostic study on the export supply potential.
Tanzania : The main focus of the project is to assist in the preparation of sectoral export
strategies for products having good export potential applying the « coaching » and « do it yourself »
approach. It also aims at providing assistance for strengthening the Inter-Institutional Committeesestablished under the JITAP programme.  After a series of consultations with stakeholders it has been
decided that sector strategies will be prepared for th e fish and horticulture sectors. In particular, the
focus will be on sub-sectors, which have high impact on poverty reduction in rural areas. Products
that will receive particular attention are mushrooms and green beans. A detailed work plan will be
ready by mid-March which is expected to cover activ ities for strategy formulation as well as activities
which have a direct impact on the export readiness of mushroom and green bean producers. An
international consultant has been identified to provide assistance in mushroom production technology
and group formation.
Activities carried out under this project are expected to provide pilot examples of how trade
can help reduce poverty. This is expected to have two implications. Firstly, such pilot cases will helpto mainstream trade issues in future updates of the PRSP and second, it is expected that the IF project
will help attract further resources being made available to Tanzania under the HIPC initiative for the
purpose of funding export-led poverty reduction activities.
Uganda : As in Tanzania, the main focus of the pr oject is to assist in the preparation of
sectoral export strategies for products having good export potential, applying the « coaching » and «
do it yourself » approach, followed by the formulation of a national export strategy. It also aims at
providing assistance for strengthening the Inter-Institutional Committees and the network of trainers
established under the JITAP programme.
The Government of Uganda is currently finalising  a plan of work for the preparation of export
strategies for two product sectors to be covered by the project  for silk and legumes (including herbs
and beans). The focus of the activities will not only be on the preparation of the sector strategies but
also on executing activities which will provide tangible benefits to silk and legume producers and thushelp reduce poverty in rural areas. It is expected that the activity plan will be finalised by
mid-March 2002.
In addition, comprehensive terms of reference have been prepared for the compilation of a
diagnostic trade study. A suitable national consultant has been selected to undertake the study, which
is expected to be ready by June 2002.
A detailed concept paper has been prepared defining the approach, the scope and the
methodology for the formulation of the National Export Strategy (NES). The launch workshop for the
NES process is planned for April 2002. The NES process being proposed has its basis in the Regional
Executive Forum on Export Strategies organised by ITC on the occasion of the Africa Trade Week in
Nairobi in November 2001
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