WORLD TRADE WT/LDC/HL/23
30October 1997
ORGANIZATION(97-4769)
High-Level Meeting onIntegrated Initiatives for
Least-Developed Countries 'Trade Development
REPORT OFTHE MEETING
Chairman: Minister JanPronk (TheNetherlands)
TheHigh-Level Meeting washeldattheWTO on27-28 October 1997.
Minister JanPronk, Minister forDevelopment Cooperation oftheNetherlands, delivered the
opening statement. Additional statements weremade byMr.Renato Ruggiero, Director-General WTO,
Mr.Rubens Ricupero, Secretary-General UNCTAD, andMr.Denis Bélisle, Executive Director ITC.
Theagenda, contained inWTO/AIR/698 andAdds.1 and2,wasadopted.
TheMeeting tooknoteofthestatements made on"Initiatives toImprove Market Access for
Least-Developed Countries" (Agenda ItemB).Itwelcomed theannouncements ofneworadditional
preferential market access measures forleast-developed countries taken orproposed tobetaken soon
bytheEC,Morocco, United States, Mauritius, Korea, Singapore, India, Switzerland, South Africa,
Thailand, Malaysia, Egypt andTurkey. Itnoted thestatements ofJapan, Canada, Australia, Norway,
Hungary andBulgaria about theveryliberal existing market access conditions under theirpresent
GSPsystems. TheMeeting further noted theindications ofIndonesia andChile toconsider initiatives
forthebenefitofleast-developedcountriesassoonaspossible.Itinviteddelegationsthathaveannounced
initiatives toimprove market access forleast-developed countries tonotify thedetails totheSecretariats
ofWTO andUNCTAD assoonaspossible. TheMeeting alsotooknoteofthesummary ofthediscussion
onmarket access issues bytheChairperson, Minister Pronk.
TheMeetingencouragedallWTOmemberstokeepunderactivereviewalloptionsforimproving
market access forleast-developed countries presented intheComprehensive andIntegrated WTO Plan
ofAction fortheLeast-Developed Countries andtomonitor theimplementation ofthecommitments
made inthisregard.
TheMeeting recommended totheWTO thatafullreport ontheoutcome andfollow-up of
theMeeting andannouncements ofimplementation ofautonomous market access measures and
commitments infavour oftheleast-developed countries beprepared bytheDirector-General ofthe
WTO andsubmitted totheWTO Ministerial Conference inMay1998.
Under the"Provisional Application onaCountry-Specific Basis oftheIntegrated Framework
forTrade-RelatedTechnicalAssistancetoSupportLeast-DevelopedCountries'intheirTradeandTrade-
Related Activities" (Agenda ItemC),twelve roundtable presentations were made forthefollowing
countries: Nepal, Haiti, Vanuatu, Madagascar, Tanzania, Djibouti, Zambia, Mali, Bangladesh, Chad,
Uganda, andGuinea. Thepresentations, byMinisters ofthecountries concerned andbyrepresentatives
ofthesixintergovernmental organisations involved mostdirectly inthisexercise (IMF, ITC,UNCTAD,
UNDP, theWorld BankandWTO), covered eachcountry 'sneeds fortrade-related technical assistance
andanintegrated response tothese needs prepared bythesixorganisations concerned, onthebasis
ofdocuments WT/LDC/HL/12 Adds.1 to12.Following these presentations, many delegations andWT/LDC/HL/23
Page2
other intergovernmental organizations intervened tocomment ontheneeds identified bytheleast-
developed countries concerned andontheintegrated response ofthesixorganisations. TheMeeting
tooknoteofthepresentations andthestatements made.
TheMeeting recognized thatthese roundtables were pilotcases andrepresented thestartof
aprocess ofapplying onacountry-specific basistheIntegrated Framework forTrade-Related Technical
Assistance toallleast-developed countries thatexpress aninterest inparticipating intheexercise. The
Meeting tooknoteofthecommitment ofthesixintergovernmental organizations tocontinue torespond
promptly torequests from least-developed countries toparticipate intheexercise and,through their
process ofinter-agency coordination, toreview theneeds assessments ofotherleast-developed countries;
itnoted thatafurther twenty-one least-developed countries hadmade suchrequests. TheMeeting
welcomed theaimofthesixagencies tohaveagreed provisionally, before 15March 1998, under
paragraph 5(d)oftheIntegrated Framework, upon aprogramme oftrade-related technical assistance
activities thatcanbeprovided tothese countries.
TheMeeting received reports ofthetwoThematic Roundtable discussions (Agenda ItemD).
Minister Tofail Ahmed ofBangladesh presented theRoundtable Irecommendations on"Building the
Capacity toTrade inLeast-Developed Countries", andMinister AlecErwin ofSouth Africa presented
theRoundtable IIrecommendations on"Encouraging Investment inLeast-Developed Countries". These
recommendations areattached tothisReport. TheMeeting tooknoteofthetworeports andthe
recommendations.
TheChairman oftheMeeting, Minister JanPronk made thefollowing statement: "From the
consultations heldbothbefore andduring theHighLevel Meeting withagreatnumber ofparticipants,
representing least-developed countries, development andtrading partners aswellasinternational
organizations, aswellasfrom thediscussions inthetwoThematic Roundtables, Inotethatthere is
widesupport forthecontent oftherecommendations concerning thecapacity totrade, encouraging
investment, inrelation tosustainable development. Ialsonotethatparticipants feelthatthe
recommendations should apply asmuch aspossible toallagencies concerned; alsowhere sometimes
individual agencies havebeenmentioned, inthespirit oftheintegrated approach, which wehave
endorsed today. Forthatreason Itakeit,thatparticipants would expect metorequest theDirector-
GeneralofWTOtoconveytheserecommendationsforconsiderationtotheappropriateintergovernmental
organisations aswellastothegovernments oftheleast-developed countries andtheirdevelopment
andtrading partners."
TheMeeting endorsed theIntegrated Framework forTrade-Related Technical Assistance,
including forHuman andInstitutional Capacity Building, tosupport Least-Developed Countries inTheir
Trade andTrade-Related Activities, contained indocument WT/LDC/HL/1/Rev.1 (Agenda ItemE).
Italsotooknoteoftheannouncement byHong Kong, China ofadonation ofUS$1.25 million
totheWTO Trust Fundspecifically forthepurpose ofproviding technical assistance under theIntegrated
Framework.
TheChairman oftheMeeting, Minister Pronk, made thefollowing statement: "Wehavenow
endorsed theIntegrated Framework. However, theFramework isindeed onlyaFramework, which
willhavetoprove itsvalue through itsimplementation. Having heard thediscussion yesterday, I,
asaChairman, have formulated thefollowing fourrecommendations tocountries andagencies
implementing theIntegrated Framework:
(a) Intaking forward theneeds assessments andthetechnical cooperation programmes
thenextstepshould beafurther prioritization ofthedifferent elements. Inthisprocess
theindividual LDC concerned hastobeinthedrivers 'seat,inorder tomove fromWT/LDC/HL/23
Page3
aneeds assessment drawn upbypartners toademand articulation bythecountry itself,
including itsownperception ofcosts andbenefits;
(b) ApplicationoftheIntegratedFrameworkshouldnotbelimitedtoIMF,ITC,UNCTAD,
UNDP, theWorld Bank andWTO. Inthecountry-specific process, starting already
withdrawing uptheinitial needs assessment, continuous dialogue should besought
withother relevant multilateral agencies, suchasFAO, theCommon Fund andothers
thathaveexpressed theirinterest, andwithbilateral development partners. Inthis
process, alsotheprivate sector should betaken fullyaboard;
(c) Theagencies should develop atimetable formonitoring andevaluation, aswellas
indicatorsforprogress;forreportingandmonitoringfulluseshouldbemadeofexisting
mechanisms suchasUNDP Roundtables, World Bank Consultative Groups andthe
appropriate bodies within UNCTAD;
(d) Inorder tomaintain coherence intheapplication oftheIntegrated Framework asa
whole, follow-up totoday'sMeeting should beincluded intheagenda forthe
forthcoming WTO Ministerial Conference, given thefactthatthesameMinisters, when
assembled inSingapore, started thisprocess.
IwillasktheSecretariat toinclude these fourrecommendations inthereport ofthisplenary
meeting, sothattheyarebrought totheattention oftherelevant bodies."
Healsomade thefollowing suggestion: "Ialsosuggest thattheHigh-Level Meeting recommend
totheother fiveintergovernmental institutions toseekapproval oftheirparticipation andcontribution
inthisIntegratedFrameworkbytheirrespectivegoverningbodiesaccordingtotheirrespectiveprocedures
andmandates."
TheMeeting tooknoteoftheinformation provided ontheuseofinformation technology by
thesixintergovernmental organisations toenhance trade opportunities forleast-developed countries,
andonways tofacilitate itsusebyleast-developed countries. Itrecalled thecomments bytheWTO
Director-General inhisopening statement attheMeeting thatthenewinformation technologies the
WTO isexploiting inpartnership withtheWorld Bank provide agateway todevelopment which can
providethedevelopingworldwiththemostimportantresourceforraisinglivingstandards-knowledge-,
anditwelcomed theWTO 'scommitment toprovide government officials initsleast-developed country
Members withcomputers, equipment andtheknow-how toaccess theinformation provided onthe
WTO websiteby1998.WT/LDC/HL/23
Page4
ATTACHMENT
TheHigh-Level Meeting urges thatthefollowing recommendations oftheThematic Round
Tables on"Building theCapacity toTrade inLDCs" and"Encouraging Investment inLDCs":
(a) betaken intoaccount intheimplementation ofthe"Integrated Framework forTrade-Related
Technical Assistance, including forHuman andInstitutional Capacity-Building, toSupport
Least-Developed Countries inTheir Trade andTrade-Related Activities";
(b) betaken intoaccount inthework ofcountry round-tables forindividual LDCs;
(c) bebrought totheattention oftherelevant intergovernmental bodies forappropriate follow-up
andaction; and
(d) beabasis forfurther public-private sector consultations atthenational level.
TheHigh Level Meeting callsontheInternational Monetary Fund, theInternational Trade
Centre(UNCTAD/WTO),theUnitedNationsConferenceonTradeandDevelopment,theUnitedNations
Development Programme, theWorld BankandtheWorld Trade Organization tocontinue andintensify
theircooperation insupporting LDCs intheirefforts tointegrate more effectively intheinternational
economy.WT/LDC/HL/23
Page5
THEMATIC ROUND TABLE A:BUILDING THE CAPACITY TOTRADE INLDCs
TheHigh-Level Meeting onIntegrated Initiatives forLeast-Developed Countries 'Trade
Development,
recalling thatpolicy decisions, whether directly trade-related ornot,areinthepurview of
sovereign governments respectively ofgoverning bodies oftherelevant international agencies,
stressingthateffortstodesignandimplementprogrammesoftechnicaland/orfinancialassistance
willonlybesuccessful inthelonger runiftheownership ofthecountry concerned isensured,
underlining thecomplementarity ofmacroeconomic, sectoral andmicroeconomic policies,
aware thattradedevelopment isbutpartofthebroader developmental agenda which includes,
inter alia,poverty reduction, growth with equity, good governance andsocial andecological
sustainability,
recognizing withappreciation thatgovernments ofanumber ofLDCs havealready successfully
undertaken taken many ofthesteps suggested below,
I. recommends, forconsideration, thatgovernments ofLDCs:
(a) pursue and/or maintain sound macroeconomic policies asaprecondition forthe
promotion ofgrowth anddiversification ofexports andforestablishing anappropriate
environment forthedevelopment ofcompetitive traded goods industries. Thiswill
require,interalia,rationalizationandsoundmanagementofpublicexpenditure,properly
planned monetary growth, maintenance ofmarket determined exchange rates,
transparent, open, andstable trade policies, consistent withinternational obligations,
andrelatively uniform protection implemented through competitive tariffs for
domestically produced goods;
(b) accede totheWTO iftheyhavenotalready doneso;
(c) establish aneconomic andlegalframework toenhance growth ofadynamic private
enterprise sector, especially small andmicro-enterprises;
(d) design andimplement measures toenhance participation ofsmall andmicro-enterprises
ininternational trade, including through enhanced access totradefinance andinsurance;
(e) developnationalprogrammesoftrade-relatedhumanresourcedevelopmentinpartnership
withtheprivate sector, toprovide training andbusiness counselling services;
(f) review, together withtheprivate sector, public sector institutions which provide trade
support services, toensure thattheymeettheneeds ofmarket oriented trade sectors,
e.g.bysimplifying thetrade transaction process, andthattheyreceive adequate
budgetary support;
(g) strengthen public institutions focusing ontrade (e.g.customs departments, trade
ministries, trade promotion councils); enhance their effectiveness through theWT/LDC/HL/23
Page6
establishmentofcoordinatingmechanisms;andencouragerelevantagencies(egcustoms
departments) toseekgreater co-operation withtheirregional counterparts;
(h) undertake effective measures toestablish and/or strengthen trade support services on
business information, export product development, export finance, export quality and
packaging,internationalpurchasing,exportmarketingandtrade-relatedhumanresource
development;
(i) request aTrade Policy Review inorder toobtain acomprehensive overview oftheir
trade-related policies which could facilitate ongoing trade policy reform;
(j) accelerateeffortstostrengthenregionalintegrationthroughregionaltradingagreements,
consistent withWTO-obligations, which entail thefullimplementation ofexisting
agreements toremove trade barriers among neighbouring countries andfurther
liberalization oftrade andinvestment within regional groupings;
(k) give high priority, inpublic sector investment programmes, totrade-related
infrastructuralinvestment,inparticularbystrengtheningtransportandtelecommunication
networks, including intra-regionally;
(l) liberalize andreform theirdomestic transport andcommunication sectors inorder to
promote greater competition andefficiency insupport oftrade.
II. recommends,forconsideration,tothegoverningbodiesofmultilateralagenciesthattheagencies,
within thecollaborative Integrated Framework, provide technical and,where appropriate,
financial assistance to:
(a) support thedesign andimplementation ofmacroeconomic andtrade policy reforms
inLDCs;
(b) support LDCs 'accession toWTO;
(c) promote human resource development andinstitution building inLDCs intrade-related
areas, inthecontext ofstrategies developed bytheLDCs themselves, soastoachieve
maximum result through actual ownership bytheLDCs oftheprogrammes;
(d) support LDC-WTO members inimplementing theirWTO-commitments resulting from
theUruguay Round;
(e) support regional groupings toenhance regional integration, consistent withWTO-
obligations, inorder toexpand thesizeofthepotential market available toinvestors
inLDCs.
III. alsorecommends, forconsideration, totheappropriate governing body/bodies that:
(a) theWorldBankenhanceitseffortstodevelopthecapacityofLDCstoproduce(tradable)
goods andservices, including through infrastructure andhuman resource development;
(b) theWorld Bankassist LDCs toundertake public expenditure reviews thatensure public
investment funds tobeallocated inaccordance withoverall development priorities,WT/LDC/HL/23
Page7
including trade-related infrastructure requirements; andthatmultilateral aswellas
regional development banks provide andmobilize finance forsustainable andsocially
profitable trade-related infrastructure inLDCs;
(c) theWorld Bank andregional development banks consider providing finance fortrade-
financing facilities inLDCs;
(d) theWorld Bank, including EDI,andtheUNDP expand theirefforts inLDCs toinclude
strengtheningofinstitutions-aspartofbroadprogrammesforgoodgovernance-relevant
toenhance LDC-participation ininternational trade, including through building further
broad-based public-private sector partnerships andsupporting partnerships between
external trading partners;
(e) theWTO further develop itsefforts toassist least-developed countries intheprocess
ofacceding totheWTO, interalia,through providing focused assistance toLDCs
inpreparing documentation andinfacilitating theirmarket access negotiations ingoods
andservices;
(f) theWTO accommodate onapriority basis requests from LDCs forTrade Policy
Reviews andassist LDCs inpreparing fortheirreviews;
(g) theWTO andtheUNCTAD enhance LDCs 'participation intheirtradepolicy courses
andseminars;
(h) theITCexpand itsefforts toassist LDCs instrengthening thekeytradesupport services
andcapacity building efforts intherelated national andregional institutions;
(i) theITC,theUNCTADandtheWTOensurethatactivitiesforindividualAfricanLDCs,
implementedaspartoftheirJointIntegratedTechnicalAssistanceProgrammeinSelected
African Countries, form anintegral partoftheIntegrated Framework.
IV. recommends, forconsideration, thatmultilateral andbilateral development partners:
(a) support theIntegrated Framework forTechnical Assistance through thetechnical and
financial assistance theyprovide toLDCs todevelop trade-related infrastructure and
trade support services, andthrough theestablishment ofprogrammes toenhance the
technical andmanagerial skills ofexporters inLDCs;
(b) usetheIntegrated Framework forTechnical Assistance anditsresults astools for
programming theirowntrade-related technical co-operation withLDCs;
(c) support LDCs instrengthening theircapacity toparticipate effectively inmultilateral
trade negotiations andtofullyadhere totheobligations theyentered into.WT/LDC/HL/23
Page8
THEMATIC ROUND TABLE B:ENCOURAGING INVESTMENT INLDC’s
Theround table noted thevaluable contribution relating topromoting investment inLDC’s
contained inthe“Integrated Framework fortrade-related Technical Assistance, including forHuman
andInstitutional Capacity Building, toSupport Least-Developed Countries inTheir trade-Related
Activities ”(WT/LDC/HL/1/Rev.1).
Theroundtable alsodrewuponthevaluable work ofUNCTAD initsEncouraging Investment
inLeast-Developed Countries (WT/LDC/HL/5) which wasconsidered asabasis forthediscussions
andrecommendations oftheround table.
Thepresentations ofthepanelist anddiscussions wereorganized tofirstly allow foraninput
bytheprivate sector onwhattheyconsidered necessary andhowinvestments could beincreased in
LDCs. Thiswasfollowed bypanelist whoprovided perspectives fromtheviewofanLDCgovernment,
international finance agency andadeveloped country which isveryactive inproviding support toand
investing inLDCs.
Thediscussions intheround tableconcentrated around three broad areas:
TheImportance ofandProcesses related toGood Governance
Thediscussions highlighted theimportance ofgood governance incontributing towards the
necessaryenvironmenttoattractdomesticandforeigninvestment.Themeetingalsounderscored
theneedforinvestors, bilateral partners andmultilateral agencies toencourage andsupport
theprocesses which constitute thefunctioning ofsuchgood governance.
TheMixofInvestment Financing
Thediscussions revealed theincreasing complexity ofthemixofinvestment financing in
developing countries. Domestic private investment wasviewed bydelegates asthecentre-piece
around which international financial flows, riskguarantees, insurance schemes andODA are
related.
Partnerships forGrowth andDevelopment
Torealise thegoalofincreasing investment indeveloping countries, three different types of
partnerships were discussed:
- Public-private partnerships within LDCs
- Private sector partnerships withexternal firms
- Partnerships withexternal developmental agencies anddeveloping counterparts inthe
public, private andNGO sector indeveloping countries.
Using these partnerships toshape theaction agenda, aswellastoexchange views,
canbeaforce forprogress inencouraging investment.
Thefollowing aremore specific recommendations forconsideration bytheappropriate
intergovernmental organizations aswellastothegovernments oftheLDCs andtheirtrading partners:
I. TheHigh-Level Meeting recognized theimportance ofmacro economic stability forattracting
investment andrecommends aselements ofanappropriate investment climate:
straightforward,administrativelysimpleandnon-discriminatoryinvestmentcodes,which
provide asetofbasic guarantees toinvestors, whether foreign ordomestic;WT/LDC/HL/23
Page9
uniform andcompetitive corporate taxrates withaminimum ofexemptions and
concessions;
investment promotion agencies (IPAs) toformulate investment promotion strategies,
market thecountry asaninvestment location andtarget specific investors, adopting
the'bestpractices 'ofsuccessful IPAs elsewhere;
financial sector liberalization andthepromotion ofinstitutional structures and
regulations forthedevelopment andsupervision ofcapital markets andasound banking
system;
strengthened regional integration efforts, consistent withWTO-obligations, inorder
toexpand thesizeofthepotential market available toinvestors;
competition legislation andtheestablishment institutional frameworks fortheeffective
prevention ofharmful anti-competitive practices.
II. TheHigh-Level Meeting recommends forconsideration bythegoverning bodies ofmultilateral
agencies thattheagencies provide technical and,where appropriate, financial assistance to:
(a) evaluate andrationalize investment incentive schemes inLDCs;
(b) enable LDCs without national stock exchanges todetermine theviability ofestablishing
theirownstock exchanges, oralternatively ofestablishing exchanges onaregional
basis orjoining analready established stock exchange within theregion;
(c) support institutional capacity building forinvestment promotion.
III. TheHigh-Level Meeting alsorecommends to:
(a) multilateral agencies toenhance their collaboration, asinthecaseofUNCTAD,
UNIDO, MIGA andWAIPA (World Association ofInvestment Promotion Agencies),
infacilitating theexchange ofnational experiences ininvestment promotion and
encouraging theadoption of'bestpractices 'inLDCs;
(b) IFCtointensify itsefforts toidentify viable private sector investment projects inLDCs
andtomobilize finance forthese projects;
(c) theWorld Bank Group tofurther develop itsAction Programme toFacilitate Private
InvolvementinInfrastructure,creatingasynergybetweenpublicandprivateinvestment,
while giving priority attention toLDCs;
(d) UNCTAD tocontinue itsresearch onopportunities andconstraints forLDCs toattract
investment, whether foreign ordomestic, andtoformulate policy options;
(e) countries toavoid double taxation oftheirnationals, byallowing investors fromtheir
owncountries tooffset corporate taxpaidinLDCs fromhome country taxliabilities.WT/LDC/HL/23
Page10
IV. TheHigh-Level Meeting recommends thatmultilateral andbilateral donors:
(a) support LDCs inestablishing andmaintaining investment codes;
(b) support LDCs instrengthening financial system regulation, including through capacity
building;
(c) establish programmes toenhance thetechnical andmanagerial skills ofdomestic private
sector investors;
(d) support thestrengthening ofprivate sector institutions inLDCs suchasChambers of
Commerce, organizations ofco-operatives, exporters 'associations etcetera;
(e) support institutional capacity building intheagencies within LDCs charged with
investment promotion andregulation.