RESTRICTEDWORLD TRADE
ORGANIZATIONWT/COMTD/LDC/M/16
8 September 1999
(99-3734)
Sub-Committee on Least-Developed Countries
NOTE ON THE MEETING OF 12 JULY 1999
Chair:  Ambassador Benedikt Jónsson (Iceland)
I. ADOPTION OF AGENDA
1. The Sub-Committee adopted the agenda contained in WTO/AIR/1114, with the addition,
under "other business", of the date of the next meeting of the Sub-Committee.
2. The representative of Bangladesh informed the Sub-Committee that between 21 and
25 June 1999, the LDCs represented by their delegations from Geneva together with officials from
their capitals had met in Sun City, South Africa.  They had drawn up proposals for a Comprehensive
New Plan of Action (CNPA) for integrating LDCs into the global economy in the context of the
Third WTO Ministerial Conference.  In his capacity as coordinator of the LDCs and as he had been
the coordinator of one of the Sun-City workshops, he had formally submitted those proposals to theChairman of the General Council.
1  He said that he thought it appropriate to keep the Committee on
Trade and Development and the Sub-Committee informed.  The proposals which were focused, sharp
and succinct had been drawn up by the LDCs themselves.  The level of preparedness on the part of the
LDCs for the forthcoming Ministerial Conference was better than ever before.
3. The Sub-Committee took note of the statement made.
II. FOLLOW-UP TO THE HIGH-LEVEL MEETING ON LEAST-DEVELOPED
COUNTRIES
A. PROGRESS IN THE IMPLEMENTATION OF THE INTEGRATED FRAMEWORK - PRESENTATION BY
THE SECRETARIAT
4. The Chairman said that the Sub-Committee, at its last meeting had had before it an updated
progress report on the follow-up to the High-Level Meeting contained in document
WT/COMTD/LDC/W/13.  That report explained prog ress made but also some of the obstacles
encountered in the implementation of the Integrated Framework.  He said that he believed that that
report had triggered a healthy discussion about the Integrated Framework process.  Ms. Annet Blank,
the WTO coordinator for the Integrated Framework, had just come back from an Inter-Agency
meeting in Dhaka, Bangladesh.  She would give an update of what happened at that meeting as wellas during the Launch-Workshop for Bangladesh which had also been held in Dhaka on 23 June 1999.
He reminded delegations that the document to assist LDCs in preparing for the trade-related round-
tables had been circulated in document WT/COMTD/W/15.  It was also available online at
http://www.ldcs.org.
5. The progress report of Ms. Blank is attached in Annex I.
                                                     
1Document WT/GC/W/251 of 13 July 1999, entitled "The Challenge of Integrating LDCs into the
Multilateral Trading System" contains that contribution.WT/COMTD/LDC/M/16
Page 2
6. The representative of the United States said th at her delegation needed some time to study the
progress report more thoroughly.
7. The representative of India asked whether any similar workshops were planned for other
LDCs.
8. The representative of the European Communities said that his delegation was concerned by
the progress report.  His delegation had not previously had the sense that the process was back to
square one which the progress report seemed to indicate by mentioning that the idea of having
separate trade-sector round-tables from the larger UNDP round-tables and World Bank consultative
group meetings was questioned.  That would mean that trade again would be one small part of a larger
round-table.  His delegation's first impression was that the ambitious approach to set up something
special for trade-related activities to enhance awareness was not working satisfactorily.  The signs
from the last months had shown that it was difficult to organize round-tables and that the idea of"launch-meetings" had to be introduced in order to make progress.  His delegation did not have any
answers to the questions, but it had noted all the points of criticism which had been mentioned.  The
question was how the Integrated Framework could be made to work better.  It was possible that the
diagnosis had to be discussed in an extended fashion before the next formal meeting of the
Sub-Committee in order for that question to be answered.
9. The representative of Haiti sought clarification from the World Bank as he had understood
that the World Bank was involved in the preparation of the trade-related round-table for Bangladesh.
His impression was even that there was perfect coordination among the six Agencies in the case of
Bangladesh.  He wondered if the World Bank took such an active part in the preparation of the
trade-related round-table for Bangladesh because Bangladesh was part of the World Bank consultativegroup countries or if it was independent of whether Bangladesh was part of the World Bank
consultative group countries or not.  Regarding bureaucracy he said that in order to implement the
recommendation emanating from the 1997 High Level Meeting for LDCs, a certain organization had
been necessary and the Administrative Unit had so far carried out work which could facilitate the
holding of trade-related round-tables.  The recently published document entitled "Trade-Related"Round Table Meetings"/Consultations:  Outline Sugge sted to Assist the Least-Developed Countries
in Preparing their Documentation for Trade-Related Round Tables/Consultations and an Indicative
Timetable for the Preparation of such Meetings"
2 seemed to be an important instrument that could
facilitate the task of organizing trade-related round-tables in the future.  He noted that Bangladesh was
moving fast as the launch-meeting had just been held and in two or three months time Bangladesh
would hold its trade-related round-table.  The Ambassador of Bangladesh could perhaps share the
successful experience of his country with other delegations.
10. The representative of Bangladesh said that his government only attempted to remain in
conformity with the Integrated Framework, but th at did not mean that there were no obstacles.  He
said that three elements were worth underscoring as they were significant for the implementation of
the Integrated Framework.  First, there had to  be coordination among the six Agencies.  Second,
priority had to be accorded to the Integrated Framework in the LDCs.  It was essential that LDCsrecognized the importance of the Integrated Framew ork in the picking order of programmes in their
countries. Third, it was important for the LDCs to know whether the Inte grated Framework would
bring new financial resources or whether it would divert resources from already prioritised and
approved projects.  That would be an important factor in the assessment of whether an LDC would
place priority on the Integrated Framework.
11. The representative of Egypt said that his delegation shared the concerns expressed by the
European Communities regarding the progress report given by Ms. Blank.  There had been some
progress in the Integrated Framework, but that wa s not enough.  The slow pace of implementation had
                                                     
2Document WT/COMTD/LDC/W/15 of 17 May 1999.WT/COMTD/LDC/M/16
Page 3
been mentioned for almost a year and a half.  However, some new alarming elements had been
mentioned in the progress report, especially the idea of changing the trade-related round-tables into an
integral part of larger donor meetings rather than a separate event on their own.  He said that his
delegation believed that that would make the process lose the momentum it had been given by the
High-level Meeting of 1997.  His delegation supported the proposal made by theEuropean Communities of having an informal meeting before the next formal meeting of the
Sub-Committee to address the issue.
12. The representative of the World Bank said that he would undertake to refer the question posed
by the delegation of Haiti to the World Bank headquarters in Washington.
13. Ms. Blank replied to the question about launch-workshops and said that a launch-workshop
had also been held in Haiti with the assistance of the UNDP.  The report she had given had been very
frank and even if it had seemed gloomy to some, she did not agree that it was all that gloomy.  Thingswere happening:  Twenty LDCs were in various stages of preparation for the holding of trade-related
round-table meetings.  It had been said that in order to focus the attention on trade issues it would be
good if the six Agencies could assist LDC government s to organize separate trade-sector round-table
meetings.  To facilitate progress in the Integrated Framework a better instrument might be to use the
existing framework of UNDP round-table meetings and World Bank Consultative Group meetings totag on a trade-related round-table.  All the actors  involved were needed to give the Integrated
Framework and trade issues the place they deserved.  She wished to remind delegations that the
Integrated Framework was not being changed as in the text of the Integrated Framework itself it was
stated that in order not to reinvent new mechanisms, wherever possible the trade-sector round-tables
should be incorporated in the UNDP round-tabl e cycle or the World Bank consultative group
meetings.  That was nothing new.  The six Agencies initially sought to make the process more
effective by suggesting the organization of separate round-table meetings, which they still continued
to assist the LDCs in organizing.  However, in order to respond to the problems encountered and to
get to the stage of trade-sector round-tables, the agencies had thought that, by going back to the text of
the Integrated Framework, they could facilitate progress for some LDCs.
14. The Chairman said that in view of the importance delegations seemed to attach to the
Integrated Framework he proposed the holding of  an open-ended informal brainstorming session at
which both the least-developed country delegations and the donors could openly express their
opinions about what the objectives of the Integrated Framework were and to what extent those
objectives have been achieved.
15. The Sub-Committee took note of the statements made.
B. ADDRESS BY A REPRESENTATIVE OF THE UNDP ON THE ROLE OF THE UNDP IN THE
INTEGRATED FRAMEWORK
16. The Chairman said that the Sub-Committee had b een keeping itself informed about the role of
the other lead-agencies of the Integrated Framework by regularly inviting representatives of those
agencies to its meetings.  He had the pleasure of announcing that Mrs. Eimi Watanabe , Assistant
Administrator and Director, Bureau for Development Policy at the UNDP, had accepted to address theSub-Committee.
17. Mrs. Watanabe's statement is attached in Annex II.
18. The representative of Morocco said that the facts had to be seriously evaluated in order for
progress to be made in the Integrated Framework.  He said that his delegation had had the privilege,
together with the delegation of Canada, to initiate the Integrated Framework.  There seemed to be theapprehension that the organization of a trade-related round-table was the final aim of the exercise.  He
said that, in his view, this was a false judgement.  Another mistake was on the part of theWT/COMTD/LDC/M/16
Page 4
six Agencies.  They did not seem to know where to turn when all LDCs wished to organize
trade-sector round-tables with the result that they gave little assistance to all LDCs from which no
LDC seriously benefitted.  The stakeholders in the Integrated Framework had to have the courage to
say that it was impossible to satisfy all demands at the same time in view of the financial and human
resources available.  The assistance had to be stag ed according to the LDCs' readiness to participate.
It was essential for LDCs to build a relation with the six Agencies and to try to obtain financial
assistance from the bilateral donors.  It was also im portant for the LDCs to try to engage civil society
which could contribute with additional resources.  In order to obtain financing it was necessary to
envisage serious activities which could easily be implemented and which would lead to concrete
results.  That did not necessarily mean for a country which had not yet begun the exercise to ask for a
trade-related round-table.  The preparation should not  be too hasty as donors would not come forward
with financing for projects they did not believe in.  More interaction was needed between the different
players in the Integrated Framework.  A joint meeting of the Trade and Development Board of
UNCTAD and the Committee on Trade and Development of the WTO would be something
exceptional.  One could therefore imagine the difficulty involved in trying to unite all the stakeholders
of the six Agencies.  However, that would be most  useful as it was through interaction between the
agencies and their constituencies that light could be shed on the process.  It was therefore necessaryfor the six Agencies to select, together with the LDCs themselves, the LDCs which were ready to hold
trade-related round-tables and the LDCs which had to take certain steps before it was possible for
them to organize round-table meetings.  For some LDCs, it might be the case that neither the financial
resources nor the interest for a trade-related round-table might exist.  It was up to the government of
each LDC to choose their course of action.  It could not be uniform for all LDCs.
19. The representative of Morocco went on to say that the LDC meeting in Sun City,
South Africa, that he had had the pleasure to attend, had been somewhat of a model of what
governments and agencies could do together.  The meeting had been called around a well defined
subject and had a concrete outcome which had been transmitted to the WTO General Council.  The
result of the Sun City meeting was encouraging because of the constructive interaction that had takenplace between the delegations from Geneva and from capitals to formulate negotiating positions for
the next Ministerial Conference in Seattle and to explore how to defend their interests.  It was a large
achievement in the sense that it had allowed delegations to think in terms of concrete participation and
not only in terms of complaining about the situation.   That was actually the secret of all negotiations.
20. The representative of Haiti said that his delegation shared two of the points raised by the
delegation of Morocco:  the vision of trade-sector round-tables and the exact and positive evaluation
of the Sun City meeting.   Mrs. Watanabe had mentioned cooperation between the six Agencies and
between the agencies and the governments of the LDCs.  The case of Haiti was a concrete example of
the general vision about the trade-related round-tables given by Mrs. Watanabe.  The government of
Haiti had just launched the round-table process after 18 months of preparations.  That was why he had
been surprised to hear that the process was moving so fast in Bangladesh.  Having prepared a
round-table for 18 months, the case of Bangladesh seemed like magic.  The situation was not the samein Haiti as in Bangladesh.  Haiti had had political problems which had prevented progress, but there
had also been problems at the level of coordination among agencies in Haiti.  Even if one of the
six Agencies took the lead in organizing the trade- sector round-table meeting in a particular LDC, his
understanding of the idea behind the Integrated Framew ork was that all the six would still be integral
parts of the process.  The fact that the UNDP was the lead-agency in Haiti should not mean that theWorld Bank would be reluctant to contribute.  One of the problems of coordination among the
six Agencies that his government was confronted with was related to the World Bank.  He had raised
this concern with the World Bank representative in Geneva and with the representative of the World
Bank to the Inter-Agency Working Group in order to see if it was possible to get the World Bank fully
on board the process to obtain a balance among the six Agencies.  His government had appreciatedthe efforts so far by the UNDP, UNCTAD, ITC and the WTO.  Even the IMF, which had been
somewhat reluctant in the beginning, had promised to participate.  He asked the representatives of the
other agencies present to assist in encouraging the World Bank to take a more active part in theWT/COMTD/LDC/M/16
Page 5
trade-related round-table to be organized in Haiti.  The representatives of the UNDP who had visited
Haiti had then witnessed the interest the entire Haitian society, including the public and private
sectors and even the media, had shown for the round-table.  The trade-related round-table was
considered a national event in Haiti.  However, the trade-related round-table was not an end in itself,
it was a means with multiple consequences.  His government had begun to understand the benefitsthat could come from multinational cooperation when the agencies coordinated their efforts, when the
government cooperated with the private sector and when the private sector coordinated with the
international players.  Coordination began to yield results already in the launching of the process.  In
the launching process, the government had successfully tried to define its trade policy.  The
Prime Minister had made the opening statement accomp anied by the Minister of Finance, the Minister
of Trade and representatives of the President.  Even the private sector, which up to then had
considered the public sector an enemy, was present in number to show that it wished to help thecountry progress.  The Prime Minister had stressed the necessity to link trade and development, of
which the UNDP also seemed to be convinced.  What was important for his government was that all
development and trade actors had a coherent approach.  The Integrated Framework, if well
implemented, could assist LDCs emerge from their exclusion.  This would be achieved if the
six Agencies gave an example of a well coordina ted approach, if the government managed to define
its policies and was supported by the six Agencies and if the private sector cooperated with the
government in order to consolidate production capacity to export and in order to rewrite the
legislation.  Haiti was an LDC exactly because it presently lacked capacity and a national vision for
development and a coherent trade and economic policy and the support of the international
community in the entire exercise.  The trade-rela ted round-table would be an occasion, not only for
the six Agencies, but also for other development partners, and there were several which had shown a
great interest, such as the governments of Canada, the U.S., France, Japan, Chinese Taipei, the E.C.,
and Venezuela to show that they had a coherent approach.  The six Agencies therefore had to try to
coordinate their approach with that of the bilateral partners.  There were also other agencies which
had shown an interest in the process such as UNIDO, FAO and ILO.  The ITU had also expressed aninterest to assist in the area of telecommunicati ons.  The round-table was therefore an occasion for the
government to try to join all the potential internat ional collaborators.  Even if the round-table never
took place, the understanding of the necessity to join all the different actors was already an
achievement.  The holding of a round-table meeting was thus not an end in itself but a beginning of a
process which had to be looked at, at every stage.
21. The representative of Haiti continued by  thanking the UNDP and UNCTAD which had
provided the government of Haiti with national and international consultants who had helped prepare
the documentation necessary for the holding of a trade-related round-table meeting.  The consultants
were charged with the task of putting together a multi-year implementation calendar.  That calendar
had to be accompanied by mechanisms for periodic follow-up and evaluation as the round-table
meeting was not an end, but a step in process.  His government had tried to facilitate the participation
of its partners who did not speak French by making available a summary of the documentation inEnglish and Spanish.  Since Haiti had entered CARICOM, it had become necessary to have
translations of documents into other languages than French in order to allow for the participation of its
partners.  The government of Haiti and the private sector were working together.  A steering
committee had been established at the occasion of the launching of the round-table process with
representatives of both the private and public sectors and with the assistance of UNDP.  The aim hadbeen to have the World Bank on the steering committee as well, especially as Haiti was part of the
World Bank consultative group cycle, but his government was disappointed to note that the World
Bank had been reluctant to participate.  His government would be pleased to see the World Bank
around the table with the other partners.  Not the least as the results of the trade-related round-table
meeting could be considered at the next consultative group meeting concerning Haiti.  He hoped thatthis message would reach the World Bank and that the World Bank would change its decision.  The
UNDP had already promised to assist in the formul ation of a global vision of  trade and sustainable
development.  WTO, UNCTAD and ITC had also already made substantial contributions in the
preparatory phase.  The Inter-American Development Bank was ready to assist as well.  He said thatWT/COMTD/LDC/M/16
Page 6
he wished to thank all those who had assisted his government and would continue to do so.  In
particular, he wished to congratulate the team at the Administrative Unit for the guide entitled
"Trade-Related "Round Table Meetings"/Consultations:  Outline Suggested to Assist the
Least-Developed Countries in Preparing their Documentation for Trade-Related Round
Tables/Consultations and an Indicative Timetable for the Preparation of such Meetings"3.  That
document had been put together following the experiences of problems encountered in Haiti.  It
should be a useful guide for all LDCs wishing to orga nize a trade-sector round-table.  He said that he
hoped that all LDCs would make use of the opportunity and organize a round-table, not as an end in
itself, but as a response to LDC demands and with a process of evaluation, in order for LDCs to
liberate themselves of the situation of marginalization in which they found themselves.
22. The representative of Zambia said that his government was one of those who had not yet
finalized the preparatory process for holding a trade-sector round-table.  However, everything
possible was being done in order to hold the round-table before the end of the year.  He wondered if
any concrete lessons could be drawn from the Uganda experience with the attempted trade-related
round-table in Kampala.  His delegation had had the impression that financing of the Integrated
Framework was a problem and wondered what concrete  steps were taken to ensure adequate finance.
23. The representative of Tanzania said that his delegation shared the views expressed by the
delegations of Morocco and Haiti and looked forward to the replies to the question posed by the
delegation of Zambia.  The Integrated Framework process had a serious structural problem.  LDC
expectations of the follow-up to the High-Level Meeting did not seem to tally with reality.  LDCs had
expected that the High-Level Meeting would lead  to improved supply capacity of their countries.
That did not seem to be the reality.  The notion of technical assistance used seemed to be too narrowand mainly include training and institution building.  That type of technical assistance was not
sufficient as it could not address the main supply-side problems the LDCs were facing.  That was why
the expectations of the LDCs could not be met by the Integrated Framework.  When ministries in
general went to donors, they presented well formulated and appraised projects while the ministries of
commerce, under the Integrated Framework, went to  donors with a needs assessment.  Donors would
not look at needs assessments, they wanted projects ready to finance.  Trade-sector round-tables based
on  needs-assessments would therefore not be successful.  More work on the needs-assessments had to
be done to come up with a well prepared programme.  For that, more time was needed.  The
six Agencies should therefore assist the LDCs de velop carefully designed programmes which would
catch the eyes of the donor community.  If trade was to be the engine of growth in LDCs, then
technical assistance was not enough.  The Integrated Framework had to go beyond technical
assistance.
24. The representative of Nepal said that the experience of the last few decades demonstrated that
trade-liberalization fostered economic growth.  However, development in LDCs contributed to growth
in world trade.  Reference had been made to the Sun City meeting of LDCs.  At that meeting,
delegations had briefly discussed the last issue of the development report and especially the emphasis
on the levels and patterns of consumption.  One of the topics discussed was that if the level ofconsumption in developing countries, and especially in the least-developed countries, could be
enhanced, it would contribute to growth in world trade.  If the 0.4 per cent that LDCs account for in
total world trade could be enhanced through the Integrated Framework for example it would
contribute to growth in world trade.  That was the expectation with which his government had
participated in the High-Level Meeting.  Expectati ons had been raised in each of the areas that the
High-Level Meeting had dealt with; market access and supply-capacity which was influenced by
measures going beyond technical assistance.  If the trade performance of the LDCs was to be
improved a number of issues including technical assistance, but also trade-related infrastructure, were
critical.  Unless those issues were addressed, any expectations of significantly changing current trade
                                                     
3Document WT/COMTD/LDC/W/15 of 17 May 1999.WT/COMTD/LDC/M/16
Page 7
patterns of LDCs were unrealistic.  His government was engaged in the process of preparing for a
country-level round-table.  However, in judging progress, it was necessary to remember that the
preparatory process was important in itself.  He suggested that the experience of Uganda be shared
with other LDC delegations.  A coherent message from the six core Agencies could be helpful for
LDCs in their effort to coordinate different ministries, the private sector and civil society.
25. The representative of Canada said that her government had confidence in the Integrated
Framework.  When the process was initiated it had been understood that it had to move at several
levels at the same time, within the LDCs, at the le vel of the agencies and within the donor community.
A coordinated effort at those three levels would take time so her delegation was not disheartened at
the pace at which the process moved forward.  In particular, it seemed as if inter-agency cooperation
had been moving as well as could be expected.  Ha ving discussed the issue of the round-tables and
whether or not they should be seen as the summ it of the process and leaning towards the conclusion
that there was so much involved in putting them together that the preparatory process itself was as
important as the round-tables, her delegation wondered how success or failure in that process could be
evaluated.  Her delegation recognized that there was a way forward and acknowledged the work that
had been carried out.  Her delegation also encouraged everybody involved to make the effort to make
the Integrated Framework a reality.
26. The representative of Japan said that his delegation, like the delegation of Canada, was quite
confident about activities under the Integrated Framew ork.  Results would come with time and there
were at least 20 LDCs which were preparing for the holding of trade-related round-table meetings.
However, his delegation noted that there were some LDC Members which felt that the Integrated
Framework fell short of their expectations and which had expressed frustration during the meeting.There did not currently seem to be any clear solutions to that problem.  Mrs. Watanabe had given an
objective and comprehensive analysis of the current situation for the Integrated Framework.  Her
statement could be used by officials in capitals as food for thought when considering how to proceed
with the Integrated Framework.
27. Mrs. Watanabe said that the comments made by delegations would help the agencies, not only
in terms of coordination, but also in terms of the concrete support that the agencies were providing at
the country level.  The agencies had to work more extensively at the country level and at the level of
headquarters in the preparatory process for the organization of trade-related round-table meetings.
Many of the speakers had agreed that the round-table in itself was one event along a process in each
LDC.  The round-table was an important part of the process, particularly in terms of resource
mobilization.  However, the Integrated Framework should be considered as a multi-year process of
which the preparatory process for round-tables was an important stage.  The agencies therefore had tobe more proactive in that stage.  The agencies had some homework to do in bringing all the
six Agencies into the process in each LDC.  Re garding the questions raised relating to the
trade-related round-table meeting held in Uganda, she suggested that a separate meeting be organized
at which the Uganda experience could be discussed in detail.  However, the points she had mentioned
earlier about the importance of a coherent presentation by the LDC government in terms of thefinance and trade ministries, and the importance of the consultative process leading up to the
round-table, which should include the private sector  and civil society, were experiences drawn from
the Uganda experience.  She had also taken note of the suggestion to include other intergovernmental
organizations apart from the six lead-Agencies, such as FAO and ILO, in the round-table process.
Regarding how to evaluate success in the Integrated Framework process, she said that if it was theprocess and not the round-tables that was important, that was the type of issue regarding which the
consultative process had to continue, not only among the agencies, but also with WTO delegations
and with the boards of the different agencies.  That everyone was learning by doing in the Integrated
Framework had to be reflected in the design of th e process.  Additional indicators of success, apart
from the holding of round-tables, therefore had to be discussed.WT/COMTD/LDC/M/16
Page 8
28. Ms. Blank referred to the statement by the dele gation of Tanzania and said that she wished to
clarify what the round-table was supposed to achieve  and what the input into a successful round-table
should be.  What should be presented to the donors at the round-table was not the needs-assessment,
although the needs-assessment was the basis of what would be presented, but rather a number of
project proposals:  the kind of project proposals that the donor community was used to and which theycould take on for possible execution and/or finance.  That was why the preparation for the round-table
was so important.  Problems of financing the Integrated Framework had been mentioned as well.  The
round-table had as one of its objectives to encourage LDCs' development partners to take on the
implementation and/or financing of the project proposals prepared and presented by the LDC.  Model
documentation for LDCs to use when preparing their round-table documentation had been produced
and was available in document WT/COMTD/LDC/W/15.
29. The Chairman said that with the presentation by Mrs. Watanabe, the Sub-Committee had had
the opportunity to hear from the five other lead-age ncies involved in the Integrated Framework.   He
suggested that the Sub-Committee kept the door open to continue to invite representatives of those
agencies, from time to time as appropriate, for the Sub-Committee to be updated on their work.
30. The Sub-Committee took note of the statements made and agreed  to meet in an informal
brainstorming session on the Integrated Framework on 28 July 1999 at 8 a.m.
III. REPORT BY THE SECRETARIAT REGARDING THE COMPILATION OF
EXISTING MARKET ACCESS INFORMATION
31. The Chairman said that, at the Sub-Committee's meeting of 25 November 1998, the
Secretariat had been asked to compile existing information on market access barriers facing least-
developed country exports.  He had therefore asked the Secretariat to brief the Sub-Committee about
how far they had proceeded with this task.
32. A representative of the Secretariat said that the proposal of compiling existing information on
market access conditions relating to products of export interest to individual least-developed countries
on a country by country basis had come from Am bassador Bruun, the previous chairman of the
Sub-Committee.  It stemmed from work that the Secretariat previously had undertaken and which had
been circulated in document WT/LDC/HL/14/Add.1, which was prepared in the context of the
1997 High-Level Meeting on LDCs. The Secretariat was currently in the process of updating that
information on the basis of tariff and trade information contained in the Integrated Database, and in
notifications made to the Secretariat.  Representatives had before them two sample tables showing
market access conditions on two particular products, each of export interest to one particular LDCs, in
the instance, Angola and Bangladesh respectively. The products selected were Crude Petroleum Oilsfor Angola and Frozen Shrimps and Prawns for Bangladesh. The product definition was at the 6 digit
HS level.  The tables presented import informatio n into the 23 markets which were featured in the
previous document (WT/LDC/HL/14/Add.1).  Info rmation on trade flows were presented for the
years 1993 to 1995 in the sample tables.  However, the Secretariat was currently collating information
for 1996 and 1997 from IDB sources.  The tariff information used in the tables contained the finalUruguay Round rates, applied MFN rates as of 1997, and preferential rates e.g. GSP, GSTP, LDC and
stated preferences awarded through other arrangements, eg. Lomé, which included offers made at or
since the 1997 High-Level Meeting.  The Secretariat had also tried to bring in information on other
duties and charges mentioned in the schedules of different members and information on non-tariff
measures collected from notifications to the Secretariat and other relevant sources.  The informationcurrently available in the Secretariat should enable the compilation of similar tables for products of
export interest for each of the 29 LDCs that are Members of the WTO.  The Secretariat estimated that
on the basis of the data available, product coverage for the individual LDCs would be roughly
90 per cent of total exports in value terms.WT/COMTD/LDC/M/16
Page 9
33. The products in the tables had been selected among exports which accounted for at least
3 per cent of total exports of the individual countr ies.  For example, frozen shrimps and prawns from
Bangladesh was a product that did fulfill that criteria.  The tariff and NTM situation in all of the
chosen markets for WT/LDC/H L/14/Add.1 were presented, whether or not the products were
exported to those countries.  Any individual LDC typically had a rather concentrated direction oftrade into some selected markets, and for other markets, the current trade situation in the statistics
might be that there is no trade.  However, in order to give an idea of potential markets, the Secretariat
had chosen to provide information on all the market s included.  The Secretariat would ensure that the
tables would be consistent with the work undertaken under the aegis of the Committee on Agriculture
on identifying bound tariffs and other duties and charges on products of interest to developing
countries.  The aim was to circulate full sets of the draft tables during the course of the month of
August.  That would provide conc erned Members with the opportunity to bring to the Secretariat's
attention any errors or omissions in the data.  The tables would subsequently be corrected and a
revised version circulated.  The complete tables should allow Members to identify specific market
access barriers facing products of export interest to LDCs.
34. Another representative of the Secretariat said that he would explain the sample tables in more
detail.  The sample tables have been attached to this document for ease of reference (Angola and
Bangladesh).  Each table was divided into a number of columns, each with different titles.  For ease of
reference, and for expository purposes, each column had also been assigned a letter A through P.
35. Column A, with the title "Market" gave the na me of the trading partner.  As was mentioned
earlier, there were 23 markets.  Those markets collectively accounted for 95 per cent of all LDC
exports, taken globally.  It was clear that any given LDC would export a particular product to onlysome of those markets.  To identify the actual e xport markets to which a given LDC would export any
particular product, the markets had been put in bold and were surrounded by a bold border.
36. Column B, titled "Imports in thousands of US Dollars" from all LDCs gave, for any particular
market for any one of the 23 markets, the total value of imports of the particular product from all
LDCs.
37. Column C, titled "Market share", indicated the share of all imports of the particular product
into any one the 23 markets, accounted for by LDCs.
38. While columns B and C dealt with LDCs in the aggregate, Columns D-I, indicated the value
in dollar terms of imports of the particular product from the individual LDC for any one of the
23 markets.  The market share was the share of all imports of that particular product accounted for by
the individual LDC for any one of the 23 markets.  Blank cells indicated that there were no data
available or no imports of the particular product from the LDC concerned.  By comparing columnsD-I with columns B and C, it was possible to see how the imports of a particular product from an
individual LDC compared with the imports of that same product from all LDCs.  The values presented
in the sample tables were for the years 1993-1995.  Data  for 1996 and 1997 were being collated and
would be presented in the final version.
39. Column J, with the title "Tariffs, MFN Bound" gave data on MFN tariffs bindings for the
given product for each importing market.  Where several duties occurred within a single 6 digit
tariff-line, a tariff range was given.
40. Column K, with the title "Applied" gave data on applied tariff rates as of 1997 for each
importing market.  Again, where several duties occurred within a single 6 digit tariff-line, a tariff
range was given.  In some cases, applied rates were shown as exceeding MFN bound rates.  That wasthe case where countries had committed to reduce tariff rates over a period of time to the bound
levels.WT/COMTD/LDC/M/16
Page 10
41. Column L, with the title "GSP/GSTP" provided information on duties applying to a particular
product under the GSP/GSTP schemes operated by each of the trading partners.
42. Column M, with the title "LDC" gave information on preferential market access accorded to
LDCs only.  Information in that column included ma rket access offers that had been notified to the
secretariat at or since the 1997 HLM on  LDCs.
43. Column N, with the title "Other" gave information on specific preferential schemes falling
outside the GSP/GSTP system, including preferences under the Lomé convention.
44. Column O, with the title "Other Duties and Charges" gave information on other duties and
charges, including specific taxes and customs surcharges.
45. Column P, with the title "Non-tariff Measures" gave information on some types of non-tariff
measures. The information in that column drew  on information contained in WT/LDC/HL/14/Add1,
which in turn drew on notifications to the WTO and the UNCTAD Database on Trade ControlMeasures.
46. The representative of the United States asked if there were any data beyond 1995 which
would reflect any market access gains since the establishment of the WTO and any additional market
access opening efforts, in particular since the High-Level Meeting on LDCs.  Her government had
made quite an effort in terms of duty-free treatment of LDC exports which had been notified in 1998.
47. A representative of the Secretariat replied that it was indeed the intention of the Secretariat to
bring the tables up to date.  The Secretariat had had technical problems in bringing data from the
Integrated Database into the tables.  Updated figures existed.  The two sample tables did therefore not
reflect the status of the information available in  the Secretariat.  However, information in the
Integrated Database would probably only give tr ade data up to 1997 and would probably not reflect
efforts made in connection with the High-Level Meeting for LDCs.  Nevertheless, the tariff data in the
sample tables, including the GSP information was going to reflect the offers made at or since the
High-Level Meeting.
48. The Sub-Committee agreed to ask the Secretariat to circulate a draft version of the document
as soon as possible for comments by delegations, with the aim of considering a final version at the
next meeting of the Sub-Committee.
IV. FUTURE WORK OF THE SUB-COMMITTEE INCLUDING POSSIBLE INPUT BY
THE SUB-COMMITTEE INTO THE 3RD MINISTERIAL CONFERENCE
49. The Chairman said that he had put the item of the future work of the Sub-Committee on the
Agenda in order to get delegations' ideas about what they wished to take up in the Sub-Committee in
the near future.  However, to initiate the item, he said he wished to share some of his own ideas as to
what the Sub-Committee might do.  The primacy of the General Council in the process leading up to
the Third Ministerial Conference had been emphasized in many bodies.  He therefore sought
delegations' guidance as to whether there was scope for the Sub-Committee to assist the General
Council in any way.  There were many issues that were of particular interest to least-developed
countries and he would make an effort to enable the Sub-Committee to take up as many of them aspossible.  However, in order for the Sub-Committee to be efficient it could be wise to concentrate on a
few.
50. He considered four broad issues of primary importance.  The first one was "market access".
The Sub-Committee had been working on the issue of market access for some time and had been
considering both access and supply-side constraints.  The Secretariat was, as had been explained, inWT/COMTD/LDC/M/16
Page 11
the process of putting together additional material for the Sub-Committee.  However, more could be
done in terms of access as had been shown by the initiative by former director general, Mr. Ruggiero
for bound duty-and quota-free access for all LDC exports.  More could also be done to alleviate
supply-side constraints.  Government policy and international assistance were relevant in that respect.
The Integrated Framework for trade-related technical assistance was also important as it was designedto address supply-side constraints.
51. The second area was "capacity building".  Capacity-building was a cross-cutting issue as it
was relevant for a number of other issues.  The Sub-Committee might wish to analyze the priority
areas for capacity-building in LDCs and which type of capacity-building would be most efficient in
each case.  The Integrated Framework would, of course, fit in under this heading as well.
52. The third area was "implementation".  It was assumed in the WTO that one basic condition
for benefitting from the WTO Agreements was th e capacity of the Members to implement the
Agreements.  It had been noted in this and other fora that LDCs face specific challenges in that
respect.  He therefore wondered if there was scope for work in this area by the Sub-Committee.
53. Finally, debt relief was an issue that often had been raised in the Sub-Committee although it
was not an issue that directly concerned the WTO.  However, "coherence" was something that the
WTO explicitly had been asked to deal with in collaboration with the IMF and the World Bank.  Ithad become increasingly clear that the efficiency of an international initiative for debt reduction
would be enhanced by a corresponding effort in terms of market access.  That had also been
underlined by the support proposals for duty-free access for LDC exports had received from the
management of the World Bank and the IMF.
54. The Chairman continued by saying that he had mentioned these issues, not as a ready
work-programme for the Sub-Committee, but to trigger delegations' thoughts.  He welcomed
comments on which issues the Sub-Committee could most usefully concentrate, but also on the
procedures delegations considered most appropriate.  Many issues could be dealt with either alone or
in connection with other issues.  Coherence and technical assistance for example could be dealt with
either separately or as cross-cutting issues.  He also welcomed delegations' views on the urgency ofdealing with the different matters.  He reiterated that the General Council was the appropriate WTO
body with which proposals for the Third Ministerial Conference should be placed but asked if
delegations considered that there were elements which could usefully be brought forward to the
General Council by the Sub-Committee, through the CTD, under the Sub-Committee's regular
mandate.
55. The representative of the United States said that her government placed the issue of the LDCs
as a priority for the discussions in the context of preparations for the Third Ministerial Conference.
However, her delegation was of the view that any contribution by the Sub-Committee should be
consistent with the treatment of the issue in the Committee on Trade and Development and with any
approach taken by that Committee.  Any work done by the Sub-Committee would be useful to help
delegations present proposals or take considerations in the General Council.  Her delegation would
caution that any procedural approach taken for submitting inputs from the Sub-Committee would beconsistent with what would be agreed in the Committee on Trade and Development for submitting
inputs to the General Council.
56. The representative of the European Communities said that, in substance, the points identified
by the Chairman were pertinent in preparing for the Third Ministerial Conference.  The market access
information the Secretariat was about to compile was useful in showing the exact value of theRuggiero initiative on increased market access fo r LDC exports which had been followed-up by the
European Communities.  Such a study would show where the barriers were and what such and
initiative would mean.  With the tables, the discussion could be extended to tariff escalation and that
type of issues.  The other issues mentioned by the Chairman, such as implementation, capacityWT/COMTD/LDC/M/16
Page 12
building and coherence all figured on the agenda of the European Communities as well.  His
delegation had already put forward proposals in the General Council on some of them and for others,
his delegation would shortly do so.  His delegations could subscribe to treating all those points, but
the question was how to bring them forward.  The debate in the Committee on Trade and
Development the preceeding week on procedures for bringing proposals forward to the GeneralCouncil had not been conclusive.  Many of the issues could be put before the normal General Council
which would then decide whether it would be considered as background information or how it could
be fed into the preparations for the Third Ministerial Conference.  However, there did not seem to be
agreement on such an approach yet and the Committee on Trade and Development first had to decide
how it would go about submitting its input.  Nevertheless, those procedural issues should not stop the
Sub-Committee from discussing which issues were most suitably treated in the Sub-Committee.  The
Sub-Committee could not wait for guidance from the Committee on Trade and Development forever.If delegations agreed that those four issues mentioned were the most important ones, the
Sub-Committee should start considering what it could do and what could be updated.  Documents
such as those that had been derestricted WT/COMTD/LDC/W/10 and
WT/COMTD/LDC/W/11/Rev.1 on supply-side constraints and across the board market access issues
which were relevant and should, in some way or another, form a background to the Third MinisterialConference.
57. The representative of Haiti said that his delegation agreed with what had been said by the
representatives of the European Communities and the United States about the possibility for the
Sub-Committee to work on its own initiative, while respecting the hierarchy.  The Sub-Committee
would not submit proposals directly to the General Council but would always consult the Committeeon Trade and Development.  However, taking into account the specificity of the Sub-Committee in
dealing with the numerous problems of the LDCs it would be worthwhile for the Sub-Committee to
continue to work on the four issues mentioned.  That might facilitate a consensus to be reached in the
General Council when the issues reached the Ge neral Council.  His colleague from Guinea would
speak about an initiative which might be added to th e list of proposed issues to be dealt with in the
Sub-Committee.
58. The representative of Guinea suggested that, as an important meeting of LDCs had recently
been held in Sun City, South Africa, the Sub-Committee should concentrate on the points raised in
Sun City in order to make a recommendation to the General Council.
59. The representative of Tanzania said that his delegation could go along with the idea expressed
by the previous speakers.  His delegation did not have any main difficulty in following the hierarchy
that had been set and following the common practice of presenting issues in the General Council.However, the Sub-Committee should continue its work  in the areas that needed more focus.  His
delegation supported the proposal put forward by the delegation of Guinea.  The Secretariat might be
asked to circulate, to the Sub-Committee, the proposals that came from the Sun City meeting.  That
proposal had already been circulated to the General Council.
4  The Sub-Committee could use that
document and try to identify which of the issues mentioned there fell within the four areas mentionedas priority areas of work for the Sub-Committee.  He said that he strongly felt that the issue of debt
relief, although somehow seen as being outside  the WTO mandate, since it affected LDCs trade
viability, should be discussed and brought forward to the General Council, either by individual
delegations or as a committee through the Committee on Trade and Development.
60. The representative of the United States reiterated that her delegation encouraged the
Sub-Committee to continue its work on the issues laid out by the Chairman.  Her delegation had only
questioned the procedural aspect, especially as the Committee on Trade and Development had
discussed the procedural aspects of getting the results of its work to the General Council.  While that
issue still was considered by the Committee on Trade and Development, her delegation cautioned
                                                     
4Document WT/GC/W/251 dated 13 July 1999.WT/COMTD/LDC/M/16
Page 13
against making any rapid decision in the Sub-Committee on the procedures.  However, her delegation
endorsed proceeding with work in the Sub-Committee along the lines of the subject matters suggested
by the Chairman.  Her delegation had taken note of the points raised by the delegation of Haiti,
Guinea and Tanzania and wished to see the document from Sun City to analyze how it could fit in
with the work of the Sub-Committee.  Regarding debt relief, it might fit in under the Chairman'scategory of coherence as far as it concerned the work of the WTO.
61. The Chairman recalled that the document from the Sun City meeting had been transmitted to
the General Council and would be circulated to WTO Members.4  He therefore assumed that the main
debate on it would take place in the General Council unless it was specifically decided that that
Sub-Committee look into those issues as well.
62. The representative of Brazil said that his delegation attached importance to LDC issues in the
context of the preparations for the Third Ministerial Conference.  The Chairman had pointed out four
important issues which stressed many aspects of the difficulties LDCs faced in integrating into the
multilateral trading system.  The Sub-Committee should go on examining those issues.  The
procedural issues should be left to the Committee on Trade and Development and, for the time being,
the Sub-Committee should concentrate on substantive issues.
63. The representative of Japan said that his delegation found valid the substance of the
Chairman's proposal for the Sub-Committee's input into the Third Ministerial Conference.  The issues
of implementation, market access and coherence were all issues of significance for LDCs'
development perspectives.  On the other hand, his delegation had been involved in the numerous
discussions in the Committee on Trade and Devel opment on those issues.  The Committee on Trade
and Development had almost made a report as input into the Third Ministerial Conference.  TheChairman of the Sub-Committee had to consider, with the Chairman of the Committee on Trade and
Development, how to avoid duplication of the work done in the two committees.  The Committee on
Trade and Development, although discussing several issues in detail, treated a wide variety of issues
related to developing countries in general.  Paragraph 9(c) of the Geneva Ministerial Declaration,
specifically referred to the follow-up process to the High-Level Meeting.  The Sub-Committee could
therefore concentrate on paragraph 9(c) and bring the results of its deliberations to the General
Council.
64. The representative of Switzerland said that his delegation attached importance to the issues of
the LDCs and could go along with the substantiv e proposals put forward by the Chairman.  However,
his delegation joined others in cautioning the Sub-Committee in going too far in terms of procedures.
He had followed the discussions in the Committee on Trade and Development and it was not clear
what its future focus would be.  It was therefore important for the chairpersons of the two committeesto coordinate with each other in order not to duplicate work in the two bodies.  Further consideration
was necessary before the Sub-Committee could decide how to proceed.
65. The Chairman said that delegations' comments had reflected the priority areas mentioned and
that there seemed to be broad agreement to concentrate, in substance, on the four issues he had
suggested.  However, he reiterated that he respected the hierarchy in the WTO and would take theprocedural aspects into account.  In addition, he would ensure that any duplication of work in the
Committee on Trade and Development and the Sub-Committee on Least-Developed Countries would
be avoided.
V. OTHER BUSINESS
66. The Chairman informed delegations that the next meeting of the Sub-Committee tentatively
had been scheduled for the afternoon of Wednesday, 29 September 1999.WT/COMTD/LDC/M/16
Page 14
ANNEX I
The Integrated Framework for LDCs:  A Progress Report
1. The Launch-Workshop in Bangladesh
A launch-workshop was held in Dhaka, Bangladesh on 23 June 1999, co-hosted by the
Ministry of Commerce and the World Bank.  The Workshop had as its main goal to inform
participants of the objectives and steps of the Integrated Framework (IF), to create a general
awareness about the IF,  to kick-start preparations for a trade-related meeting (TRM) in October 1999
in Bangladesh and, as part of that process, to establish a Steering Committee of local relevant
stakeholders.  The launch-workshop was inaugurated by H.E Mr. Tofail Ahmed, Minister ofCommerce.  For Bangladesh, representatives from the Ministry of Commerce and the private sector
participated.  The Additional Secretary of the Ministry of Commerce presided over the meeting.
Two bilateral donors (UK and Canada) as well as a representative of the Government of Nepal also
attended.
At the workshop, representatives of the core agencies and the Administrative Unit (AU)
presented and took questions on the Integrated Framework and its steps.  One of the objectives of the
launch-workshop was to form a Steering Committee of local stakeholders to prepare the trade-related
round-table meeting, which the Bangladesh authorities plan to hold in October of this year.  At the
workshop's conclusion, a preliminary list of names for the Steering Committee was drawn up, fromamong various Ministries and the private sector.  In addition, the Chair said that he would shortly send
out invitations to the local donor community to pa rticipate in the Steering Committee.  The World
Bank has made available a consultant to assist the Steering Committee in its work and to help write
the draft multi-year programme of trade-related technical assistance, to be endorsed at the
trade-related round-table meeting.
The launch-workshop received press coverage.
2. Inter-Agency Working Group Meeting
The core agencies of the Integrated Framework had decided to combine the launch-workshop
with a meeting of their Inter-Agency Working Group in Dhaka.  Below are some of the main points
discussed.
Assessment of Launch-Workshops in General
While agencies perceive the launch-workshop as a useful instrument to catalyse preparations
for a trade-related round-table meeting, they are of the view that it should not constitute an automatic
and additional step in the IF which could delay or complicate the process.  It should be decided on an
ad-hoc basis whether the conduct of such is meeting is useful to stimulate awareness and interest in
the IF process in the country.  It is probably not useful to hold a workshop in all LDCs, and not all the
core agencies and the Administrative Unit need to be necessarily present at all future
launch-workshops.  More important is adequate representation of all the relevant local  stakeholders at
the meeting.
Round-Tables
It is recalled that in order to enable development partners to fully respond to the needs
identified by the LDCs in their Needs Assessments, to find the necessary resources to do so, and to
draw up a multi-year programme for trade-related technical assistance which would fit into the
country's overall development strategy, the conduct of a trade-related round-table is a necessary step.WT/COMTD/LDC/M/16
Page 15
Initially the core agencies had been of the view that such trade-related round-table meetings would be
more effective if held separately from the comprehensive UNDP Round Tables/World Bank
Consultative Group Meetings, so as to allow the necessary focus on trade-issues and the role of trade
in economic development.  However, in view of  the difficulties which are currently arising in
organizing such separate round-table meetings (TRM), agencies agree that efforts should be made bythe various players in linking the trade-related round-table meetings to the comprehensive UNDP
Round-tables (RT) or the World Bank's Consultativ e Group Meetings (CGs).  Players in the RT/CG
cycle are usually the Ministries of Finance/Planning and the UNDP or the World Bank.  For the
Integrated Framework to be incorporated in the agenda of such a RT/CG, the Minister of Trade should
therefore have to liase with his/her colleagues in the Ministries which are responsible for the RT/CG.
Apart from including the Integrated Framework en marge  (such as was the case in Uganda in
December 1998) or as an item on the agenda of the RT/CG, the link could be further strengthened ifthe Multi-Year Program of trade-related technical assistance (MYP) - to be endorsed at the TRM -
were incorporated in the UNDP’s Country Strategy Notes (CSN) or World Bank’s Country Assistance
Strategy (CAS) documents.  (As stipulated in the te xt of the Integrated Framework).  In order to
include the Integrated Framework, or the issue of trade in development in general, in the RT/CG
process, preparatory activities, i.e. consultations  with the Government and UNDP/W orld Bank local
office would need to start at an early stage.  Even in cases where inclusion of the IF in the RT/CG
agenda is not possible, a link  should be established to place a marker in the follow-up process of the
RT/CG (as in the case of Gambia, Tanzania).
For the Integrated Framework to operate successfully, the active participation of all involved
is vital.  The players who make it happen are the governments in the LDCs, the six core Agencies, and
the donor community.  Communication between the vari ous players inside each LDC, inside each of
the core-agencies, between the core agencies and inside the administrations of the bilateral donors is a
conditio sine qua non  for the success of the Integrated Framework.  Such coordination and
communication is also the IF's strength as it allows for a degree of analytical and structural disciplineto the provision of technical assistance.
It should be recognized that in organizations like the World Bank, the IMF and UNDP, trade
is but one of the many activities these organizations are involved in and the core agencies agree that
efforts should continue inside these organizations - as well as inside ITC,UNCTAD and WTO - to
mainstream trade and the Integrated Framework issues in their operations.  It must also be recognized
that trade and the Integrated Framework do not always feature as one of the priorities in thedevelopment policies of LDCs themselves.  As is often also the case for the place of "trade" and the IF
in the aid policies of donors.  This may be partially due to a misconception about the coverage of the
IF, which as a matter of fact is much wider than "trade" and covers capacity building  to enable LDCs
to use exports as an engine for their economic development.  This includes addressing many of their
supply-side constraints.
The WTO management will take up the matter of "mainstreaming" the IF with the
World Bank and UNDP.  The IMF will be briefing its field representatives and where possible would
encourage the local (government) Focal Points to  be involved in informal donor meetings which
usually take place in the countries.  ITC and UNCTAD will also support the preparatory process byseeking finance for the project proposal to facilitate the implementation of the IF.  This proposal was
approved by the six Agencies in Dhaka and seeks to enable LDCs to hold TRMs in a supportive
environment at the national and international levels, which will allow for the formulation and
endorsement of LDCs' specific multi-year technical assistance programmes in trade development.
Basically it aims to secure the availability of a pe rson in the country to assist the government in its
preparation of the trade-related round-table.  The project will deploy activities aiming at creating
awareness among all stakeholders of the IF process, building a national capacity, providing direct
technical support, and obtaining general consensus over the programme proposed.  It is to provide
resources for national and international consultants.WT/COMTD/LDC/M/16
Page 16
The outline document and timetable for a round-table meeting prepared by the Administrative
Unit in consultation with the six Agencies is a good basis and a useful tool to prepare the Multi-Year
Programme for trade-related technical assistance (MYP) (circulated as document
WT/COMTD/LDC/W/15).  The MYP is based on the Needs Assessment of the LDC and will contain
an Inventory of ongoing relevant projects as well as list the remaining priority needs presented inproject proposals for donors' consideration.
Focal Points:  30 LDCs have so far reported an IF Focal Point, a senior official in a relevant
Ministry (usually Trade/Commerce). Co-ordination and communication with other stakeholders in the
IF process (i.e. other Ministries, private sector, donor community etc.) is necessary for a Focal Point
to be effective.
State of Play of TRMs under the IF:  according to information received, LDCs which are
preparing trade-related meetings in the next 6-12 months are Bangladesh, Benin, Bhutan, Djibouti,
Ethiopia, Gambia, Guinea, Haiti, Malawi, Mali, Mo zambique, Nepal, Tanzania and Zambia. Agencies
recognize that the possibility of a regional trade-related meeting should be explored in the five Pacific
Islands LDCs - Kiribati, Samoa, Solomon Islands, Tuvalu and Vanuatu.  The Administrative Unit has
been in communication with UNDP, ADB, ESCAP and the Forum Secretariat to invite them to raisethis issue at the Pacific donors consultation (5 – 7 July 1999).
Monitoring and Evaluation
Agencies engaged in a frank exchange of views on problems faced in the implementation of
the IF.  The critical self-evaluation brought out the following issues:
(a) There is a perception that agencies have not delivered concrete results.  This
perception is often based on the number TRMs held.  While it was recognized that the
number of TRMs was one of the possible yardsticks to measure progress, it was alsonoted that the IF should be assessed in terms of "process" as a framework for the
better co-ordination and delivery of technical assistance.  The IF is after all, at first
instance a process to better coordinate trade-related technical assistance based on the
demands from LDCs.  The number of activities on-going or already carried out under
the IF would be another measure of progress (see below).
(b) The IF has been regarded with scepticism and seen as a bureaucratic exercise with
some agencies voicing concern at the inadequate attention to the policy framework.
(c) The IF has been viewed as ambitious in its co-ordination requirements.  A certain
degree of difficulty in coordination has been perceived, both within the LDCs and
within and between the development partners (including the core agencies) reflectingdifferences in priorities and mandates.
(d) The IF might have raised largely unfulfilled expectations in the LDCs of "new and
additional" assistance rather than co-ordinated and more efficient delivery of
technical assistance by the agencies.
In order to address these criticisms, any misconceptions would have to be cleared/clarified.
Any paralysis stemming from the slow progress in organizing TRMs would have to be redressed
quickly.  (The project proposal to facilitate the implementation  of the IF will hopefully contribute to
this).  Bureaucratic delays and co-ordination problems would have to be resolved.  UNDP and WorldBank being the two agencies with field representatives in LDCs are invited to continue their efforts to
"mainstream" the IF in their operations and to include TRMs in the preparations for the RT/CG
cycles.  In spite of difficulties perceived, it was recognized that the Integrated Framework had
achieved a degree of coordination between the six core Agencies which hitherto had not  existed.  ItWT/COMTD/LDC/M/16
Page 17
was also recognized that the Integrated Framework is contributing to an awareness raising and an
internal reflection inside the development partners about the role of trade in aid policies.
Monitoring:  Status of Implementation - Progress Report
Progress made so far by the agencies in implementing the Integrated Responses:  based on the
information provided by the core agencies in end 1998/early 1999, of the nearly 2000 entries in the
Integrated Responses, in 39 LDCs, about 900 have been completed or are in advanced stages of
completion.  Over 15 per cent of all responses were Joint Entries indicating synergy and co-ordination
achieved under the IF.  Over 15 per cent of all entries have not started due to lack of funds
(trade related round-tables could remedy this), reformulation of projects or of the LDCs' priorities, or
other reasons.WT/COMTD/LDC/M/16
Page 18
ANNEX II
Address to WTO Sub-Committee on LDCs
Delivered by Mrs. Eimi Watanabe, Assistant Administrator and
Director, Bureau for Development Policy, UNDP
(12 July 1999)
1. Introduction
I am very pleased to be here today to speak before this Committee which has shown so much
leadership in mustering the political forces for organizing the High Level Meeting on IntegratedInitiatives for LDCs Trade Development and in shap ing the content of the Integrated Framework for
Technical Assistance for Trade and Trade-Related Activities.  As a co-sponsor of this important
initiative, UNDP has been engaged from the onset in promoting and implementing the Integrated
Framework, which we see as a tool for reversing the growing marginalization of the LDCs in the
global economy.  Today I would like to share with you UNDP’s view of both the progress made aswell as the challenges in implementing the Framework.
This past year has seen considerable advancement in the activities of the Framework at all
levels.  Most importantly, there is an increasin g recognition of the close link between trade and
development in our partner countries, which we must continue to develop.  Several countries havenow entered the phase of preparing multi-year technical assistance programmes on trade.
Concurrently, we are also developing the building-b locks for trade, such as strengthening its support
institutions and developing a policy dialogue between Government, the business community and civil
society to generate the supply response to the new opportunities offered by the multi-lateral trade
based system.
Among the six co-sponsoring Agencies, coordination between our various technical
assistance programmes has increased with resultant synergies.  The efficiency thus being gained
responds to the current climate for ODA, with its overall pressure to do more with less.
Along with progress, we have also faced challenges, which have proven educational.  First,
they have shown us some of the areas we need to focus more on.  Second, they have taught us thatstrengthening the understanding of the important connection between trade and development is crucial
to the success of the Framework and indeed, to the overall aim of integrating the LDCs into the global
trade system.
2. Progress Made
Distinguished delegates,  in 40 out of the 48 LDCs, we are now ready to move from the initial
stages of the Framework, which is the Needs Assessments and Integrated Responses of the
six Agencies to those needs, to the more advanced, next phase.  This is the preparation of the
multi-year programmes which will eventually feed into the respective donor meetings.  In the first two
stages, participant countries raised the need to strengthen a wide range of areas, such as theunderstanding of WTO rules and obligations, accession to WTO, the correction of institutional
deficiencies, and the establishment of information systems for trade.  Subsequently, more than
20 countries have expressed an interest to WTO in organizing a donor meeting.  To date, only Uganda
has held such a meeting.
Some among us believe that action is being taken too slowly and that the six Agencies have
little to show for the steps we have carried out so far. While we agree that we, collectively, should
have done more and we with greater speed, our view is that donor meetings should not be seen as anWT/COMTD/LDC/M/16
Page 19
end in itself or even a primary goal.  Yes, they can provide a forum for a policy dialogue between the
Government and its development partners, especially in terms of resource mobilization.  But we
should not rush to a donor meeting if the preparatory process of formulating a sound multi-year TA
programme, as envisaged in the Integrated Framewor k, is not ready to be reviewed at the Round-table
(RT).  Indeed, in some cases, the multi-year programme is barely formulated, and does not involve thebusiness community.  Just as such thorough preparation and consensus building is critical for
undertaking negotiations at WTO, we believe that resource mobilization through the RT process can
be productive only if this homework has been done.  The issue is thus not in the holding of the RT,
but the quality of the preparatory process leading up to it.
Some countries are presently engaged in exactly such a substantive preparatory process which
will in turn make their donor meetings more fruitful.  Gambia, for example, while preparing for thetrade RT, has been reviewing and modifying its Investment Code after consultations with its business
partners.  Likewise in Angola, the Government is now preparing a trade policy, which takes time not
only to establish, but also to fully operationalize.  These are the kinds of activities that should be
carried out parallel to the preparation of the multi-year programme before convening a RT.
Furthermore, let me stress that preparation and approval of projects need not be frozen while acountry looks forward to a RT.  Laos which has not yet requested a RT is presently embarking on a
UNDP-formulated trade project for which Australia has made a generous grant.  Once Laos decides
that they want a trade RT, this project and others will be part of the package of on-going activities that
need to be coordinated with the national programme presented by the Government.
3. Issues
Distinguished delegates, let me return to th e problems encountered in the implementation of
the Framework because it is important at this stage that we have a common understanding of these
difficulties.  Only then can we start developing a workable response to them.
Firstly, unfortunately, a few of the participating countries have experienced tense political
moments, sometimes leading to the brink of civil war, impeding progress; not much can be done
within the scope of this Framework in such cases.  However, more frequently, the bottlenecks are of a
policy nature and therefore are amenable to the policy dialogue between the donor community and the
concerned Government, and therefore, I shall focus on these.
(i) Governments often express concern that the time table is too rushed.
Understandably, they feel it does not provide the flexibility needed to adequately
adjust to changes produced by the liberalization process.
(ii) This leads to the second problem, that of  coordination of government work.  In
particular, I refer to that between the trade and finance ministries, and the areas inwhich their functions overlap, and unfortunately, sometimes clash.  Coordination of
international assistance and the determination of priorities between the trade sector
and the finance sector are areas which have been particularly hard for individual
ministers to agree upon.
Finance sectors have substantive concerns about the potential consequences of prioritising
trade in the national budget.  Indeed, the changes associated with the opening of markets pose several
difficulties for participating countries.  The immediate loss of jobs due to restructuring of the
economy and the decline in internal revenue from import duties provoked by the lowering of tariffs
are among the most worrisome.  Some governments have also expressed their view that TA withoutaccompanying investment is not enough.  These governments are rightly concerned about the
deficiencies in their infrastructure, including roads, harbours, and communication technology.  The
real disagreement lies with the sequencing of reform.WT/COMTD/LDC/M/16
Page 20
(iii) The lack of policy consensus within the government feeds into to a third problem,
that of the need to bolster relationships among government, the private sector, and
civil society.  The sustainability of growth and the reduction of poverty depend on
collaborative efforts at all levels, but perhaps most critically on the collaboration
among government, the business sector and civil society
(iv) Finally, perhaps the most fundamental issue is the LDCs sometimes feel more
threatened than empowered by the prospect of free trade.  This roadblock is more of a
conceptual impasse than a logistical one, and therefore, we cannot traverse it by
simply altering a few procedural aspects of the Framework.  There is still a lack of
acceptance of the synergy between trade and sustainable human development.  This is
true not only at the local and national levels, with the finance sector, for example, butat the international level as well.  Often, the multitude of ways that trade and
development can and should be integrated needs to be further clarified and further
enhanced.
4. Recommendation
The problems I have addressed above are complex, and thus their solution  requires time and
effort.
On the side of the agencies, I believe that we need a more pro-active stance.  The fundamental
principle of the Framework to ownership by the countries and their role in piloting the Framework isnot incompatible with a more participatory role of the six Agencies.  First, the agencies can and
should facilitate the process and smooth out some of the difficulties that I highlighted above.  Second,
they need to extend the timeframe and change the signposts of success.  Let us adopt more appropriate
and flexible benchmarks.  Rather than aim for a donor meeting, for example, we could first aim for
the existence of a robust trade policy followed by other measures and activities which can be easilymonitored as concrete signs of progress.  Or we might concentrate on strengthening the analytical
capacities of the business community to enhance its dialogue with the government on policy matters.
Also, we need to devise more safeguards to alleviate the short-term burdens of restructuring weak
economies and be more aggressive in developing a positive agenda around free trade and FDI,
focusing on employment creation, expansion of small and medium-scale enterprises and poverty
reduction.
It is the responsibility of all concerned to consider ways of softening the impact of the
transition of LDCs from a relatively closed to an open economy.  This requires we exploit much more
the potential of coordinating trade and development.  At the national level, we can do this by
strengthening the dialogues that already exist within government, and amongst government, civil
society, and the private business sector, and by fostering new and innovative collaborativepartnerships.  At the international level,  one of our goals  should be the integration of a development
agenda into the next round of trade negotiations recognizing that special measures are needed to
enable LDCs to compete on a more level playing field.
As we all know, the WTO Ministerial Meeting in Seattle this November will determine the
direction that international trade agreements will take in the next few years.  In furthering the aims of
the Integrated Framework, we can use this occasion to underline the need to bring the trade
community and the development community together.  In doing so, we can and should argue that a
Trade Round that is also a Development Round is in the best interests of all countries, both
developing and industrialized.
Our greatest task in the road ahead, then, is to ensure that all players internalise the following
two basic tenents- which lie at the heart of the Integrated Framework.  One, that open markets can
contribute to poverty reduction and the ultimate goal of sustainable human development.  And two,WT/COMTD/LDC/M/16
Page 21
that programmes for sustainable human developmen t of LDCs can contribute to the enhancement of
the global trade system by enhancing the LDCs’ role wi thin it.  It is becoming clear that the success of
the Framework will depend upon whether we can rise to the challenge of turning these two views into
common-sense truths.
In view of the deep-rooted problems facing the LDCs, a major capacity-building programme
is required, more ambitious, broader, and with more resources than the Integrated Framework
presently provides for.  Designing a few isolated TA projects is not enough.  Donor governments and
development agencies need to respond to the extensive and longer term needs of the LDCs.
With the Third UN Conference on LDCs approaching, I would like all of us to a collective
reflection on what is truly needed to jumpstart the development of LDCs.  How can we make aidleverage trade?  Can this be done with the current levels of aid, and within the existing frameworks
and processes?  At UNDP, we ar e committed to do our utmost to come up with substantive and
workable answers to these question.  We are fully aware that there are many odds against our efforts,
not the least of which is negativism.  In UNDP, we have already focused the bulk of our TA activities
on LDCs and Low-Income Countries.  We are open to  and indeed ask for your suggestions on how we
can do more.
Thank you for your attention.WT/COMTD/LDC/M/16
Page 22ANGOLA
H.S. 270900, Product: Petroleum Oils, Crude
Imports (in US$1000)+
Market ALL Market Value
1993Mkt. Share
1993Value
1994Mkt. Share
1994Value
1995Mkt. Share
1995Tariffs* GSP
LDCs Share Angola Angola Angola Angola Angola Angola MFN
Bound **Applied GSTP LDC Other Other Duties &
ChargesNon-Tariff
Measures
Australia 0 0.0% 00 . .
Brazil 154963 5.6% 14,887.6 0.62% 13,839.4 0.54% 19,239.1 0.70% 35 0-14 . . Charges*** Import
authorization, sole
importing agency
Canada 14261 0.3% 17,144.8 0.49% 8,835.8 0.21% NB 0 0 0
Chile 70456 7.8% 28,961.9 3.71% 69,949.3 9.35% 70,455.6 7.78% 25 11 . . Air cargo and
dispatching tax,
5.3-7%
China 479377 20.3% 179,857.1 7.74% 47,971.7 3.05% 135,763.1 5.76% N/A 1.5 . . Automatic license
Chinese Taip. 94960 2.0% N/A 2.5-12.5 . . Permitted with
license
Egypt 0 0.0% 20 5 @a . @1
E.C. 324809 1.0% 104,042.2 0.54% 364,252.9 0.96% 212,530.3 0.59% 0 0 0 0 @2
Hong Kong,
China00 . 0 % 00 . .
India 0 0.0% NB 25 . . @3 Special tax 2% Canalised imports,
Import Licencing
Indonesia 0 0.0% 40 0-5 . .
Japan 26941 0.1% 43,363.5 0.16% 7,439.4 0.03% 11,389.8 0.04% sp sp . .
Korea 57604 0.5% 31,952.7 0.35% 71,179.1 0.80% 116,316.7 1.08% NB 5 . .
Malaysia 0 0.0% 50 - 5 . .
Morocco 0 0.0% 40 0 . . @4
Norway 0 0.0% 00 . .
Poland 0 0.0% 00 . .
Singapore 188186 2.9% 00 . .
SACU 220548 8.4% NB 0 . . @5 SACU common
licensing
Switzerland 0 0.0% NB 0 . . Automatic license
Thailand 117470 4.1% 12,065.4 0.56% 19,564.1 0.68% NB 0 . . Import surcharge
0.5%
Turkey 0 0.0% NB ? . .
USA 250369 0.6% 2,217,637.4 5.41% 2,116,588.2 5.17% 2,299,476.1 5.06% sp sp sp 0
+ Most recent year (1993-1996) @1 Niger and Yemen received preferences under bilateral trade agreements
. None @2 E.C. Lomé rates to all LDCs expect Afghanistan, Bangladesh, Bhutan,
sp Specific duty applied Cambodia, Laos, Maldives, Nepal and Yemen  GSP suspended for Myanmar
* Tariffs with more than one figure (i.e. o.5) indicate duties @3 SAPTA Members that are LDCs receiving margin of preference:
applied within a single 6-digit tariff line Bangladesh, Bhutan, Maldives and Nepal
** Actual or projected after full implementation of U.R. tariff commitments @4 Guinea, Mauritania, and Sudan receive preferences u nder bilateral trade agreements
N/A Not applicable, non-WTO Members @5 Malawi amd Mozambique receive duty-free preferences.  Lesotho receivesNB No binding during the U.R. duty-free as a part of S.A.C.U.
*** Include:  service charges, port tax, syndicate fee, fleet service airport tax, @a 10% reduction on all goods in categories spe cified in commitment schedules
and social security contributionWT/COMTD/LDC/M/16
Page 23BANGLADESH
H.S. 030613, Product:  Frozen Shrimps and Prawns
(imports (in US$1000)+
Market ALL Market Value 1993 Mkt. Share
1993Value
1994Mkt. Share
1994Value
1995Mkt. Share
1995Tariffs* GSP
LDCs ALL LDCs Bdesh. Bdesh. Bdesh. Bdesh. Bdesh. Bdesh. MFN
BoundApplied GSTP LDC Other Other Duties &
ChargesNon-Tariff
Measures
Australia 3344 4.1% 00 . .
Brazil 0 0.0% 35 10 . . Charges***
Canada 5197 3.0% 00 .
Chile 0 0.0% 25 11 . . Air cargo and
dispatching tax,
5.3-7%
China 1174 2.6% N/A 45 . .
Chinese
Taipei12 0.0% N/A 22.5 . . Bank
authorization
Egypt 0 0.0% 60 60 . @a @1
E.C. 167051 17.4% 22,258.4 2.34% 47,662.9 2.96% 89,811.0 4.93% 12-18 12-18 4-4.5 0 @2
Hong-Kong
China18087 9.4% 451.3 0.31% 748.1 0.36% 209.0 0.11% 0 0 . .
India 0 0.0% NB 10 . . @3 Special tax 2% Import licensing
Indonesia 244 13.5% 40 20 . .
Japan 144886 4.1% 36,057.9 1.23% 41,353.7 1.25% 74,680.6 2.12% 1 2.2 . .
Korea 355 0.8% NB 20 . .
Malaysia 1613 7.2% NB 0 . .
Morocco 0 0.0% 40 35 . . @4
Norway 1231 2.5% 00 . .
Poland 208 6.2% NB 30 21 0
Singapore 39215 53.0% 10 0 . . License: animal
product
SACU 4584 51.6% NB sp . . @5 Customs
surcharge 40%SACU common
licensing
Switzerland 3131 12.3% 00 . .
Thailand 7515 11.5% 5-60 5-60 . 0 Import surcharge
0.5%
Turkey 0 0.0% NB 3 . . Mass housing
fund levy: 43%
USA 69459 2.9% 82,909.9 3.99% 100,725.5 3.96% 67,700.1 2.80% 0 0 . .
+ Most recent year (1993-1996) @1 Niger and Yemen received preferences under bilateral trade agreements
. None @2 E.C. Lomé rates to all LDCs expect Afghanistan, Bangladesh, Bhutan,
sp Specific duty applied Cambodia, Laos, Maldives, Nepal and Yemen  GSP suspended for Myanmar
* Tariffs with more than one figure (i.e. o.5) indicate duties @3 SAPTA Members that are LDCs receiving margin of preference:
applied within a single 6-digit tariff line Bangladesh, Bhutan, Maldives and Nepal
** Actual or projected after full implementation of U.R. tariff commitments @4 Guinea, Mauritania, and Sudan receive preferences u nder bilateral trade agreements
N/A Not applicable, non-WTO Members @5 Malawi amd Mozambique receive duty-free preferences.  Lesotho receivesNB No binding during the U.R. duty-free as a part of S.A.C.U.
*** Include:  service charges, port tax, syndicate fee, fleet service airport tax, @a 10% reduction on all goods in categories spe cified in commitment schedules
and social security contribution
__________