RESTRICTEDWORLD TRADE
ORGANIZATIONWT/COMTD/LDC/W/26
8 May 2002
(02-2587)
Sub-Committee on Least-Developed Countries
ENHANCING THE PARTICIPATION OF LEAST-DEVELOPED COUNTRIES IN THE
MULTILATERAL TRADING SYSTEM
Note by the Secretariat
I. INTRODUCTION
A. BACKGROUND
1. The Sub-Committee adopted the WTO Work Programme for Least-Developed Countries
(LDCs) on 12 February 2002.1 In the Work Programme adopted, the Sub-Committee was instructed to
annually consider, an item on: " Enhancing the Participation of LD Cs in the Multilateral Trading
System and the Global Economy ". This document has been prepared to facilitate discussion under this
agenda item of the Sub-Committee.
2. Section I briefly highlights the major trends and changes in LDCs trade through the 1990s.
Section II reports on recent developments and initiatives in each of the subject areas outlined as a
basis for review in paragraph 15 of the WTO Work Programme for LDCs (WT/COMTD/LDC/11).
Finally, Section III puts forward some of the possible issues that could be further considered with aview to enhancing the trade and participation of  the LDCs in the multilateral trading system.
B. 
OVERALL TRENDS AND PATTERNS IN LDC S' TRADE
3. Trends and changes in the trade patterns of developing and LDCs' trade have been reported in
previous background documents prepared by the WTO Secretariat.2 WTO Research indicates that
merchandise goods and commercial services trade (exports and imports) of the LDCs have grown
between 1990 and 2000.3 This growth in LDCs' trade through the 1990s has largely matched global
trade expansion over the same period (see Chart below).
4. LDCs share in world trade has remained largely static through the 1990s. The LDCs as a
group accounted for only 0.5 percent of global trade in goods and 0.4 per cent of trade in services.
Import data reveal similar trends though LDC merchandise imports amounted to $ 41 billion and
continued to exceed merchandise exports which totalled $35 billion in 2001.
                                                     
1 WT/COMTD/11.
2 WT/LDC/SWF/IF/14/Rev.1, WT/COMTD/W/65,  WT/COMTD/W/31 and WT/COMTD/W/15. See
also recent IMF, OECD, UNCTAD and World Bank publications.
3 Between 1990 - 2000, the average growth of LDCs' merchandise exports and imports was 7.8 and 6.4
percent per annum respectively. LDCs' commercial serv ices export and imports over the same period grew by
6.3 and 6.4 percent. Post 1998, the growth in merchandise exports was significant in the four oil-exportingLDCs (Angola, Equatorial Guinea, Sudan and Yemen), on account of the sharp rise in fuel prices and earnings.WT/COMTD/LDC/W/26
Page 2
Source: WTO: International Trade Statistics (2001)
5. The overall trends do not capture the significant differences within the LDC group. In some
LDCs, there has been significant export diversification and changes to the product composition of
merchandise exports (see also Table 1 and Section I.C below). However, most LDCs continue to be
dependent upon a very small range of export products, with o n average, the top three export
commodities for each LDC, accounting for over 70 per cent of each countries total merchandise
exports.4 In these LDCs, a few primary commodities, mainly minerals and tropical agricultural
products  account for a significant share of total exports.
6. One of the features of the trade patterns of LDCs has also been the large year-to-year
variations in exports and imports. These variations on the export side are often attributed to
commodity price fluctuations (including most recently, changes in the prices of petroleum products)
and/or the concentration on a few export items. Indeed, the year-to-year variations among the LDCs
are markedly stronger on the export side than on the more diversified import side.
7. These trends have also contributed to a concentration of exports within the LDC group. Three
LDCs accounted for more than one half of the total LDC merchandise exports in 2001.5 The
differences in performance within the LDCs as a group and in comparison to the faster growth
                                                     
4 See WTO Secretariat document WT/LDC/SWF/IF/14/Rev.1 (2001); UNCTAD: Least Developed
Countries Report (1999) & "Market Access for the LDCs: Where are the Obstacles" (OECD:1997)
5 WTO: International Trade Statistics (2001).  The top LDC exporters in the period 1990-2000, were
those with a more diversified production structure including manufactures (e.g. Bangladesh) and some oil-exporting LDCs (e.g Angola and Yemen).Merchandise
0246810
Exports ImportsCommercial services
0246810
Exports ImportsChart 1:  Merchandise and commercial services trade of LDCs, 1990-2000
(Average annual percentage change)
LDC World%%WT/COMTD/LDC/W/26
Page 3
experienced in other countries can be traced to a mix of external and domestic factors and include
policy, structural and market access factors (see also Section I.D below).
C. STRUCTURE OF TRADE /SECTORAL TRENDS
(i) Trade in Goods
8. Volatile changes in commodity prices have of ten contributed to the declining share of many
LDCs in world trade (see Table 1 below). These LDCs usually depend on a narrow range of primary
commodity exports.6 The trade of these LDCs is particularly vulnerable to downswings that are on
average stronger than global contractions, while upswings in their trade on average have been far less
pronounced in comparison with global upswings.7 This limits their scope to participate more
extensively in world trade and points to the need for diversification of their economies and exports.
Table 1:  Merchandise Exports of Least Developed Countries, 1990-2001
(Billions of US Dollars and percentage change)
Value
(Billions
of US$)Annual percentage change
2001 1990-2000 1998 1999 2000 2001
Total LDCs (47) a3 5 8 - 61 52 7 ( 1 )
Oil exporters (4) b14 11 -30 50 62 (-2)
Exporters of manufactures (7)c12 16 20 15 25 (4)
Commodity exporters (30) 8 1 -4 -5 -5 (-9)
LDC with civil strife (6) d1 -7 -2 -17 -3 (-9)
Memorandum item:
World 6162 6 -2 4 13 -4
Source : Adapted and updated from WTO: International Trade Statistics (2001)
a Of the 49 LDCs, no merchandise trade data available for Eritrea  and Tuvalu.
b Angola, Equatorial Guinea, Sudan and Yemen.
c Bangladesh, Cambodia, Lao PDR, Le sotho, Madagascar, Myanmar and Nepal.
d Afghanistan, Burundi, D.R. of Congo, Rwanda, Sierra Leone and Somalia.
9. As illustrated in Table 1, the growth in LDCs that exported fuels or manufactured goods was
rapid in the 1990s. Four LDCs (Angola, Equatorial  Guinea, Sudan and Yemen) sharply increased their
oil production and exports in the 1990s. In 2000-2001 they accounted for more than 40 per cent of
total LDC exports, compared with 30 percent in 1990. Another group of seven LDCs,8 exporting
manufactured goods, also recorded high rates of export growth in the 1990s. Their total merchandise
exports amounted to US$ 12 billion in 2001, representing more than a third of total LDC exports. In
contrast, the merchandise export performance of the 30 LDCs that were exporters of agricultural
goods and other non-fuel commodities was quite modest. Within this group of 30 LDCs, 17 countries
experienced negative export growth in the last de cade. Six countries (Afghanistan, Burundi, D.R. of
Congo, Rwanda, Sierra Leone and Somalia), particularly affected by civil strife, also experienced
negative growth over the last decade.
                                                     
6 WT/COMTD/LDC/W/31. Unprocessed raw materials accounted for about 75 per cent of least-
developed countries' exports in 1995.
7 WT/COMTD/W/65
8 Bangladesh, Cambodia, Lao PDR, Lesotho, Madagascar, Myanmar and Nepal.WT/COMTD/LDC/W/26
Page 4
(ii) Trade in Services 9
10. Trade in Services, accounts for about one-fifth of total world trade.10  However, as in goods,
LDCs' share in global trade in commercial services through the 1990s was marginal. In 2000, LDC
exports of commercial services amounted to about US$ 6 billion while imports totalled US$ 14
billion. The share of services in total exports of goods and services of LDCs is estimated to be 14
percent – which is lower than the global average (about 20 per cent). Services trade however is animportant and leading sector in some LDCs.
11 Moreover, as highlighted in recent studies,12 services
liberalization also attracts foreign investment, particularly in sectors such as telecom, financial
services, transport, etc. which are central to economic activity, but often in short or inadequate
domestic supply in LDCs.
11.  While for commercial services as a whole, LDCs share in world trade was static through the
1990s, for some sectors, such as travel services, LDCs as a group witnessed robust growth. Exports of
travel services in LDCs expanded faster than other services and have now become the largest sub-category accounting for more than 40 percent of LDCs services exports by the end of the 1990s.
Transportation services accounted for about one fifth and other commercial services for about one
third of LDCs total commercial services exports.
12. These aggregate numbers conceal variations at the country level.
13 The six LDCs with the
largest exports of commercial services (Ethiopia, Maldives, Myanmar, Nepal, Senegal and Tanzania)
together account for about 40 percent of the LDCs' total service exports. The rate of growth of
commercial service exports also differs markedly among the LDCs. Over the last decade, exports of
commercial services in 19 LDCs14 outpaced the annual global growth rate (of around 6 per cent).
However, there were also 13 LDCs15 where the value of services exported is estimated to have
declined over the same period. On the import side as well there were differences in individual countryexperiences. Eight LDCs
16 recorded robust double-digit annual growth rates over the last decade
whereas in 9 other LDCs17 the value of commercial services imported decreased through the 1990s.
D. TRENDS BY REGION
13. Of the forty-nine countries currently designated by the United Nations as "least-developed",
34 are in Africa, 8 are in Asia, 5 are in the Pacific and 1 each is in the Caribbean and the Middle East.While African LDCs accounted for 69 per cent of all LDCs trade in 1980, its share fell to 57 per cent
of all LDCs trade in 1997, with most of this relative decline coming in the period 1990-1997.  At the
same time, the share of total LDC trade accoun ted for by Asian LDCs nearly doubled from 17 to
                                                     
9 There is a paucity of official trade data from LDCs. For four LDCs, no official data on commercial
services was available for any year in the 1990s.
10 World trade in services currently stands at a value of about US$ 1,350 billion with an annual growth
rate of around 6 per cent through the 1990s.
11 WTO International Trade Statistics (2001). In 1998, services exports in 9 LDCs accounted for more
than one half of their total export earnings and for another 7 LDCs the share of services exceeded one third oftotal export earnings.
12 See also World Bank (2002): Global Economic Prospects and the Developing Countries – Making
Trade Work for the Poor - Chapter 3.
13 Updated and adapted from WTO International Trade Statistics (2001).
14 Angola, Cambodia, Cape Verde, Comoros, Equa torial Guinea, Gambia, Haiti, Kiribati, Lao PDR,
Madagascar, Maldives, Mauritania, Mozambique, Myanmar, Nepal, Sao Tome and Principe, Solomon Islands,Tanzania and Vanuatu.
15 Bangladesh, Burundi, Central African Republic, D. R. of Congo, Djibouti, Guinea, Malawi, Mali,
Niger, Senegal, Sudan, Togo and Zambia.
16 Bangladesh, Cambodia, Cape Verde, Equatorial Guinea, Haiti, Maldives, Myanmar and Sudan.
17 Burundi, Burkina Faso, Central African Republic, D. R. of Congo, Djibouti, Lesotho, Mali, Niger
and Togo.WT/COMTD/LDC/W/26
Page 5
33 per cent, with the bulk of the growth coming in the period 1989-97. Pacific Island LDCs accounted
for 1.2 per cent of LDC trade, though their level of exports nearly tripled between 1990 and 1997.18
14. The decline in African LDCs share of trade has been notable, in contrast to the relatively
stronger performance of some Asian exporters such as Bangladesh (where merchandise exports more
than tripled through the 1990s). As noted earli er, many African LDCs as commodity exporters,
dependent on a small basket of exports, experienced negative or negligible growth over the lastdecade. There were exceptions, for example in Uganda exports on average grew by around 12 per
cent between 1990 – 2000.  This was despite fluctuations in the price and output of their main export
commodity, coffee. Some of the factors accounting for differences in the individual country and
regional performances are highlighted in the following section (Section I.D).
15. There were also significant changes in the destination of LDC exports, with a shift from
Western Europe to Asia and North America over the last decade (see Table 2 below). Western Europe
accounted for more than one half of LDC exports in 1990 though it had seen its share decline to lessthan 40 percent by the end of the decade. In 2000, selected countries in the Asia/Oceania region
imported more from LDCs (US $ 10.3 billio n) than North America (US $ 9.4 billion).
Table 2:  Merchandise imports of selected regions from LDCs, 1990 and 2000
(Billions of US dollars)
1990 2000
Western Europe 11.5 12.0
Asia/Oceania (10) 193.2 10.3
North America 4.8 9.4
Total of the above 19.5 31.6
Source : Adapted from Table II.7 of WTO International Trade Statistics (2001)
16. As can be inferred from Table 3 below, the rise in imports from LDCs in the Asia/Oceania
region is largely concentrated on mining products (fuels) while in the case of North America this
expansion has been on account of the tripling of manufactured imports between 1990 and 2000.Within Asia/Oceania, China has become the mo st important market for LDCs, importing goods
valued at US $ 4.0 billion goods (mainly crude oil) in 2000.
Table 3:  Product structure of merchandise imports of selected regions from LDCs, 2000
(Percentage share)
Total Agricul.
productsMining
productsManufactures
Western Europe 100 24 18 58
Asia/Oceania (10) 14100 19 73 8
North America 100 5 46 48
Source : Adapted from Table II.7 of WTO International Trade Statistics (2001)
                                                     
18 See WT/COMTD/W/65.
19 Asia/Oceania comprises 10 economies only (Australia, China, Japan, New Zealand and the six Asian
NICs).WT/COMTD/LDC/W/26
Page 6
E. DOMESTIC AND EXTERNAL FACTORS AFFECTING TRADE PARTICIPATION 20
17. As has been noted above, there are still some significant differences in regional or individual
country performances for the LDCs as a group. These can be attributed to a mix of domestic factors
and external linkages, including regional ones. For example, the success of Laos PDR and Cambodia,
can be attributed to their emerging from war eco nomies, and in becoming associated with ASEAN,
while the rapid trade expansion in Bangladesh can be attributed to its success in diversifying its export
structure and attracting foreign investment.
18. The major challenge for LDCs remains that of trade-related capacity building which would
enable them to take advantage of improvements in market access opportunities. Meeting this
challenge within the context of addressing the domestic and external factors affecting LDCs trade
participation will also include inter alia  increasing international investor confidence. Improved access
to markets, increased capital/FDI inflows, stabil ity in commodity prices and alleviating the debt
burden would contribute to LDCs efforts in meetin g their trade and development challenge. However,
favourable external conditions and natural resource endowments by themselves are not sufficient to
boost LDC trade. Often addressing supply–side and policy constraints is equally if not more
important. Key factors are at play such as, the need for the diversification of LDCs export and
production structure, s ound macroeconomic and exchange rate policies, trade policy reform and
liberalization. Priority also needs to be accorded to human resource development and building
institutional infrastructure in the trade policy area.   Political stability and governance issues are also
factors that have a bearing on LDCs ' participation in the global economy.
II. RECENT DEVELOPMENTS AND INITIATIVES TO ENHANCE PARTICIPATION
A. THE NEGOTIATING AGENDA OF THE LDC S IN THE CONTEXT OF THE DOHA MINISTERIAL
DECLARATION AND DECISIONS
(i) Zanzibar Ministerial Meeting
19. Thirty LDCs are Members of the WTO. As a group, 21 they constitute over 20 percent of the
existing membership. A further nine are in the process of accession. LDCs have a significant and
growing role to play in the rules-based multilateral trading system. In preparation for the Fourth WTOMinisterial Conference, LDC Ministers met in Zanzibar, Tanzania on 22-24 July 2001. The purpose
was to adopt a common position for the Doha Ministerial Conference. The Zanzibar Declaration
22 and
the negotiating objectives and proposals of LDCs contained therein were submitted and presented by
Tanzania, on behalf of LDCs, to the General Council.23
20. The Zanzibar Declaration, contained specific proposals on several Implementation Issues,
Market Access for LDCs, the Built-in Agenda, Accessions, New Issues, Capacity Building and
Technical Cooperation. LDCs' Trade Ministers also decided to organize further Ministerial level
                                                     
20 See also WT/COMTD/W/15 for a more detailed account on the factors underlying the varied trade
performances of Developing and Least-Developed Countries.
21 Of the forty-nine countries designated as LDCs, Thirty are WTO Members: Angola, Bangladesh,
Benin, Burkina Faso, Burundi, Central African Repub lic, Chad, Djibouti, Gambia, Guinea, Guinea Bissau,
Haiti, Lesotho, Madagascar, Malawi, Maldives, Mali, Mauritania, Mozambique, Myanmar, Niger, Rwanda,
Sierra Leone, Senegal, Solomon Islands, Tanzania, Togo, Uganda, Zaire and Zambia. A further nine are in theprocess of accession: Bhutan, Cambodia, Cap Verde, Laos, Nepal, Samoa, Sudan, Vanuatu and Yemen.Ethiopia and Sao Tome and Principe have observer status in the WTO. The remaining least-developed countriesare: Afghanistan, Comoros, Equatorial Guinea, Eritrea, Kiribati, Liberia, Somalia and Tuvalu.
22 WT/L/409
23 WT/GC/M/71. Tanzania (on behalf of the LDCs) presented the outcome and proposals emanating
from the Zanzibar meeting at the informal Special Session of the General Council on 30-31 July 2001.WT/COMTD/LDC/W/26
Page 7
meetings to precede future sessions of the WTO Ministerial Conference.  The WTO and UNCTAD
Secretariats, upon request, participated in the Zanzibar meeting and provided technical assistance.
21. Following the Fourth WTO Ministerial Conference, the organization and management of the
Doha work programme as envisaged in paragraphs 45 to 52 of the Ministerial Declaration has begun.
The Trade Negotiations Committee (TNC) has been established and has met on 1 February and 12
April 2002. Chairpersons for various WTO bodies have been appointed and a negotiating structurehas been set-up. 
24 At the April meeting of the TNC, all the non-residents participated. The next
meeting of the TNC has been scheduled for July 2002.
22. LDCs continue to engage and contribute to the work in these bodies with a view to advancing
their negotiating proposals and agenda. Specific elements of the Doha Development Agenda such as
the adoption of the WTO Work Programme for LDCs (as mandated in paragraph 42 of the Doha
Declaration) has taken into account several of the key concerns and issues of interest to LDCs.  Work
on technical assistance and capacity building has successfully commenced with the approval of theWTO budget and with pledges of CHF 30 million from a wide range of donors for the Doha
Development Agenda Trust Fund.
23. While LDCs have been proactive in elaborating a common negotiating agenda and proposals,
they have also faced capacity constraints on account of their lack of or limited representation in
Geneva. The WTO has accorded priority to initiatives to assist LDCs and capacity-constrainedmissions overcome the limitations they face in the coverage of meetings and participation in
negotiations. As elaborated below, this is bein g addressed through targeted capacity-building
initiatives as well as by scheduling a limited number of WTO meetings on a daily basis.
(ii) The LDC Consultative Group
24. The WTO LDCs' Consultative Group was set up in January 2001 to play a co-ordinating role
among WTO LDC Members and Observers. This informal group meets regularly to identify and
further LDCs' priorities and to accelerate their in tegration into the rules-based multilateral trading
system. The Consultative Group has also enabled the more effective participation of LDCs in the
WTO. The Group has a rotating Coordinator elected from among its members, who serves a six-
month period of office. The Secretariat services and provides interpretation for meetings of this group.
25. The establishment of this informal LDC Group was particularly important in the LDCs'
preparations for the Fourth WTO Ministerial Conference, in Doha, Qatar in November 2001. In 2001,
the LDCs Consultative Group held regular week ly meetings. And from September 2001, up to the
Doha Ministerial meeting in November, the LD Cs Consultative Group held numerous unscheduled
meetings, in addition to their weekly meetings. Post-Doha, the LDCs' Consultative Group continues to
play an important role in coordinating positions of LDC Members in the ensuing trade negotiations.
Due to the fact that several LDC delegations are understaffed and capacity constrained, the existence
of this informal Group enables selected LDCs to act as focal points for particular Negotiating Groups.
These focal points report to the wider Group at their regular weekly meetings.
26. Due consideration is being given to assistance through a new WTO "Internship Programme
for Selected Missions in Geneva" to assist the rotating coordinator of the LDC Consultative Group
and other groupings such as the WTO African Group, and the ACP. Voluntary contributions are usedto provide interns (for not more than ten months) to  work in the missions of the rotating co-ordinators.
Currently Zimbabwe and Jamaica (not LDCs) are beneficiaries of the programme that began last year.
The continuation of the internship programme will depend on the availability of financial resources.
(iii) Trade Policy Courses
                                                     
24 TN/C/1WT/COMTD/LDC/W/26
Page 8
27. Another area that has contributed to the devel opment and enhanced participation of LDCs is
the Trade Policy Courses run by the Training Institute. In June 2001, the Director-General decided to
reconstitute the Secretariat's Training Division as the WTO Training Institute.25 Guided by the Doha
Development Agenda to meet the demands for training, the General Council, in December 2001,
approved a revised budget proposal encompassing inter alia , the doubling of training capacities over a
transitional year allowing it, to be fully operational in 2003. The doubling, within the budget, impliesthe doubling of the number of three-month trade policy courses from three to six annually.
28. Since 1995, over 170 officials from LDCs have been trained at the regular Trade Policy
Courses. In addition to the three-month trade policy courses, the Training Institute's activities were
extended to include: training of trainers, a diversified range of short trade policy courses, distance-
learning services, and co-operation with universities and other institutions of learning in curriculum
development on WTO and trade-related issues. Beneficiaries from LDCs also receive fellowships to
participate in two three-week In troduction to the WTO courses (in English and French respectively).
These courses are specifically targeted at trade policy officials from LDCs. Fellowships are also
granted to LDCs' representatives participating in  the one-week specialized courses on WTO Dispute
Settlement Rules and Procedures, which are, since 2002, also organized by the Training Institute.
(iv) Negotiating Tool Kit
29. Complementing the training provided, the Secretariat has commenced work on the
development of a Toolkit for Negotiators on a priority basis.
26 It will consist of three modules: (i)
background to negotiations and simulations; (ii) textual database for enabling the comparative
analysis of negotiating texts proposed by delegations; and (iii) development of a user-friendly
software to allow market access negotiators to analyze trade and tariff information. With regard to (ii),
this software will provide developing and least-developed country Members with the capability ofanalysing textual data, comparing texts and constructing their own negotiating proposals. A Data
Capture Software for texts will be included in the Toolkit for Negotiators. The Toolkit will be
available in English, French and Spanish, the three official WTO languages.
B. I
NITIATIVES IN FAVOR OF NON-RESIDENTS
30. Twenty-four Members of the WTO do not have a mission in Geneva.  Eleven of these are
LDCs.  Furthermore, four LDCs in the process of accession have no representation in Geneva.  While
these countries have a key stake in the multilateral trading system, absence severely constrains the
ability of these countries to articulate their interests in the context of the WTO's work, and compounds
capacity shortfalls. This reduces the degree of national ownership of multilateral trade decisions, and
can also limit the extent to which rule-making adequately responds to the specific constraints faced bya significant subset of Members and Observers.
31. Over the last three years, the Secretariat has undertaken a number of initiatives to assist non-
resident countries to better participate in the work of the organization.  Since, by definition,
representation remains the prerogative of sovereign states, the WTO's initiatives have focused more
on building capacity and improving the flow of info rmation to non-resident Members.  This includes
activities undertaken as part of the WTO's regular technical cooperation actions, trade policy courses;
technical assistance provided in the context of Trade Policy Reviews; and the Reference Centreprogramme.  Specific forms of assistance provided by the WTO to non-residents, whether LDCs or
developing countries, are: regular briefing notes on work undertaken in the WTO; briefings given by
senior officials; and Geneva Week.
                                                     
25 See also WT/COMTD/W/96 for a fuller account of training activities in 2001 and
WT/COMTD/W/89/Rev.1 for future activities planned by the Training Institute.
26 See section on "Tools for Technical Assistance" in the Annual Technical Assistance Plan
(WT/COMTD/W/95/Rev.3).WT/COMTD/LDC/W/26
Page 9
32. Geneva Week was initiated in 1999. To date, 4 Geneva Weeks have been organized by the
Secretariat. The Geneva Week consists of briefings on various aspects of the WTO's work
programme. Officials are invited from Capitals as well as from Europe-based missions. In 2001,
Geneva Week was held in September, and focused on the preparations for the Doha Ministerial
Conference. The 2002 Geneva Week focused on the various elements of the Doha Development
Agenda.  Geneva Week also gives the opportunity for non-residents to take part in substantive aspectsof WTO work.  In 2001, the Chairman of the General Council consulted with non-residents on their
views regarding the Doha Ministerial Declaration.  In 2002, the timing of Geneva Week was such as
to enable non-residents to take part in the second meeting of the Trade Negotiations Committee. As of
2002, Geneva Week is funded through the regular budget.
33. The WTO also works closely with other organizations in providing technical assistance to
non-resident LDCs.  An extended trade policy training course has been developed for non-resident
participants through the sponsorship of the Commonwealth Secretariat.  Close links have beendeveloped with the Pacific Forum Secretariat which have enabled WTO trade policy courses to be
held in the pacific region. The WTO also works closely with the Swiss-sponsored Agency for
International Trade Information and Cooperation (AITIC).
C. I
NFORMATION TECHNOLOGY SUPPORT
34. The WTO has initiated activities in favor of least-developed and developing countries that
enable these countries to use information technology to access WTO training materials and up to date
information. Since 1997, the WTO Reference Centers provide business and academic communities,
Government officials and others with access to WTO documents and databases along with
information relating to trade thus linking LDCs to the WTO electronically.
35. Since October 1997, the WTO has provided computer equipment, internet connections and
training for the establishment of 117 computerised Reference Centres (see table below). About 3,000
trade officials in the relevant Ministries of LDCs  and developing countries have received training
from the WTO so as to access and use WTO on-line materials. The objective of the WTO's
information technology support and training activities is to increase capacity of developing countries,
especially LDCs, to engage in the multilateral trading system. World trade news is electronicallydistributed daily by the WTO to the Reference Centers. In order to provide technical advice and
support to the Reference Centers via electronic mail and telephone, a Reference Center Help Desk
maintained by the Secretariat, was created  in 1999. The Commerce, Trade and Foreign Affairs
Ministries in least-developed and developing countries are using the Reference Centres to access
WTO training materials and information on CD-ROM and through the Internet.  Some hard copies ofthese materials are also made available.
Table 4 - Distribution of WTO Reference Centers in: Number
LDCs 42
Developing and Low- Income Countries 47
Transition Economies 2
Regional and Sub-Regional Organizations 26
Total 117
36. A pilot project has been initiated to provide a reliable internet connection to LDC Reference
Centers. Internet access and e-mail service is being provided to these Reference Centers throughSITA, a cooperative that provides internet services to airports around the world.WT/COMTD/LDC/W/26
Page 10
37. The WTO web-site27 is another information technology tool increasingly used by developing
and least-developed countries.  There are 31,840 registered users of the WTO web-site from over 100
countries, and this is increasing at the rate of about 2,000 per month. Visitors to the web-site, many ofwhom are from LDCs, can now regist er to receive information by electronic mail from the WTO. The
information available is updated regularly and includes access to Press Releases, articles on recent
developments, and schedules of meetings of WTO Bodies.
38. Interactive training courses on the Agreement on Textiles and Clothing and on WTO
information and training have been develope d on CD-ROM. A further number of computer-based
training modules on CD-ROM are being designed in the three official WTO languages. This will
cover the SPS Agreement and Developing Countries, the TRIPS Agreement and Developing
Countries, and the GATS and Developing Countries.  A library of 16 CD-ROMs has been provided to
each Reference Centre along with a complete set of the Short Trade Policy Courses on CD-ROM.
This library gives access to trilingual versions of  the complete results of the Uruguay Round, Trade
Policy Reviews, BISD series and other invaluable reference and information tools for trade officials.
Updated editions of the CD-ROMs are provided to WTO Reference Centers as they become available.
39. The Trade and Development Centre web-site is being used to highlight WTO participation in
major conferences and other activities aimed at enhancing the role of developing countries in the
WTO.  This specialized web-site continues to attract an average of 12,000 visitors per month. During
March 2002, a total of 564,840 individuals visited the WTO web-site,  the highest total achieved since
the site was launched in 1996.  This is a 60 per cent increase over the 348,998 visitors a year earlier in
March 2001.  The number of hits registered was nearly 17 million. The WTO Information Technologysupport has assisted LDCs to get updated information and increased their participation in the global
economy.
D. T
HE INTEGRATED FRAMEWORK PILOT SCHEME : DIAGNOSTIC TRADE INTEGRATION STUDIES
40. To enhance participation and in response to th e complexity of LDCs' trade-related needs and
challenges, the Integrated Framework (IF) was launched in October 1997 by six multilateralinstitutions (IMF, ITC, UNCTAD, UNDP, World Ba nk and the WTO). The six core agencies, each
within their distinct competence and comparative advantage, complement each other to deliver greater
development dividends to LDCs in the multilatera l trading system. Endorsed by Ministers in Doha,
the IF is a mechanism for mainstreaming trade into LDCs' national development plans and poverty
reduction strategies, and also for the coordinated delivery of trade-related technical assistance within a
coherent policy and inter-agency framework. The IF approach can play a key role in addressing some
of the bottlenecks limiting the ability of LDCs to benefit from the multilateral trading system,including supply-side constraints, and deficits in human and institutional capacity.
41. The IF is built on the principles of countr y ownership and partnership amongst agencies,
donors and beneficiaries. The World Bank is the lead agency to coordinate efforts of the beneficiary
LDCs in mainstreaming work, with the support of the core agencies.  The WTO is the Coordinator of
the IF, whose tasks include the chairing of the Inter-Agency Working Group (IAWG) and acting asthe IF Secretariat.
28  The IF Steering Committee, independent of WTO bodies, is the highest
governing body for the IF and provides overall policy oversight and guidance by assigning
responsibility amongst the agencies, donors and LDC beneficiaries.  The UNDP is the manager of the
                                                     
27 http://www.wto.org
28 The IAWG consists of representatives from the six core agencies, two special representatives each
from donors and LDCs, and the DAC/OECD Secretariat.  Th e role of the IAWG is to ensure transparency and
adequate coordination of the activities of the core agenci es under the IF, primarily through the continuing flow
of information on activities under the IF. The IAWG makes periodic reports to the IF Steering Committee.WT/COMTD/LDC/W/26
Page 11
IF Trust Fund (IFTF), which is supported by voluntary contributions from bilateral and multilateral
donors.29 The IF Heads of Agency recently, supported the extension of the IF model.30
42. The IF has been implemented initially on a pilot basis in Cambodia, Madagascar and
Mauritania, and is now being extended in the second group of 11 LDCs.31 The implementation of the
IF, led by the World Bank, follows a three-step process.  First, a diagnostic trade integration study
(DTIS) is prepared for each country, which assesses the competitiveness of the economy andidentifies the impediments to its effective integration into the multilateral trading system.  Next, based
on the findings of the study, an Action Plan is developed in consultation with stakeholders in a series
of Trade Integration Workshops, and outlines a set of policy recommendations and priority technical
assistance needs to overcome the constraints identified.  Lastly, trade policy priorities are incorporated
into the country's updated Poverty Reduction Strategy Papers, and priority technical assistance needs
are considered for financing at donors' financing fora, such as the World Bank Consultative Groups
(CG) or UNDP Round Tables.
43. The diagnostic study typically includes five components.  These are a review and analysis of
the country's economic and export performance , an assessment of the macroeconomic environment
and the country's investment climate, an assessment of the international policy environment, an
analysis of key labour-intensive sectors for expansion  and a conclusion with recommendations for
policy reforms and action plans .  Specific terms of reference (TORs) for the diagnostic trade
integration study are developed for each country on the basis of the five generic components in
consultation with the Government concerned.  The Government is expected to establish a national
Steering Committee that would channel information to all relevant national stakeholders, and
coordinate and stipulate national needs and priorities for its trade development. The effectiveness of
this committee is critical in instilling a degree of ownership, and the sustainability of the IF process,which in itself is a long-term capacity-building exercise.
44. Trade integration can facilitate rapid economic  growth and development in LDCs. In this
respect, an important feature of the IF is to assist LDCs in mainstreaming their trade priority areas of
action into national plans for economic development and Poverty Reduction Strategy Papers (PRSPs).
Furthermore, the studies on trade integration and any impediments to trade expansion enable LDCsand their principal development partners to focus attention and address bottlenecks hampering growth
and participation in the global economy. The implementation of the Pilot Scheme has already had
beneficial effects on coordination amongst stakeholders; policy coherence; country ownership;
capacity-building; and follow-up and funding.
45. The main findings from the diagnostic trade integration studies for Cambodia, Madagascar
and Mauritania indicate that effective participation in the multilateral trading system requires action
on several fronts. This includes, sustained policy reform in LDCs supported by targeted technical
assistance and capacity building; support in key areas such as infrastructure and building institutional
capacity; and market access with reduction of trade restrictions in trading partners. In addition to the
macro-level analysis, the diagnostic studies have also carried out comprehensive sector specific work.
Focus has been on the sectors that are of current or potential importance to the trade integration and
growth prospects of the beneficiary countries.  For example, in the DTIS of Cambodia, Madagascarand Mauritania, the sectors examined included agriculture, fisheries, mining, tourism and essential
oils. Given the high growth and employment potential  of these sectors, expansion of trade and output
has a positive spillover in poverty-reduction efforts.
                                                     
29 As of March 2002, 17 bilateral and multilateral donors made pledges  to the IF Trust Fund,
amounting to US$ 9.8 million.
30 WT/IFSC/1.
31 Burundi, Djibouti, Ethiopia, Eritrea, Guinea, Le sotho, Malawi, Mali, Nepal, Senegal and Yemen.WT/COMTD/LDC/W/26
Page 12
46. The WTO is programming its Trade Policy Reviews for LDCs more closely with the
diagnostic trade integration studies, as in the case of Mauritania (see also Section II - F below). In the
case of Madagascar, the Trade Policy Review, completed in early 2001, has identified diagnostic
issues to explore. Technical assistance programmes are being executed jointly by some of the IF
agencies, as is in the case of the pilot countries.
47. The diagnostic trade integration studies carried out under the IF therefore have a positive role
to play in establishing the trade – growth – development/poverty reduction linkages and are a useful
tool to address the constraints facing LDCs in their participation in the trading system.
48. A new web-site for the Integrated Framework ha s been developed by the WTO. The Director-
General will officially launch the web-site on 16 May 2002 at the OECD Ministerial Meeting. This
web-site contains general information on the IF, its programmes, developments and initiatives. This
web-site will be updated on a regular basis with recent developments. The address is http://if.wto.org .
E. PARTICIPATION OF DEVELOPING AND LEAST DEVELOPED COUNTRIES IN INTERNATIONAL
STANDARD SETTING BODIES
49. It is recognized that for the effective particip ation of LDCs in international trade, WTO rules
in the areas of food safety and quality, standards and technical regulations are important. The
Agreement on Sanitary and Phytosanitary Standards (SPS) and the Agreement on Technical Barriers
to Trade (TBT) limit the scope to impose arbitrary or unjustified requirements on exports from LDCsand encourage the use of internationally developed standards as the safety/quality reference for world
trade. In addition, the WTO has provided a forum for developing and LDCs to raise issues or
challenge measures imposed on their exports, and to identify their specific technical assistance needs.
50. WTO has a close working relationship with the relevant standard-setting organizations. In the
SPS area it works with FAO/WHO Codex Alimentarius Commission, FAO International PlantProtection Convention (IPPC), and the Office International des Epizooties (OIE). Though there is no
explicit identification of relevant standard-settin g organizations in the TBT Agreement, the WTO
does work with relevant organizations such as International Standardization Organization (ISO),
International Electrotechnical Commission (IEC), and the International Telecommunications Union
(ITU). Developing and least-developed countries have expressed concern that difficulties ineffectively participating in the work of international standardizing bodies limits their ability to
influence standards in products of interest to them.
51. The limited participation of developing and LDCs in international standard setting bodies can
be attributed to several factors. These include lack of awareness among government authorities and
industry; limited infrastructure and expertise for active participation, particularly in technicalcommittees; and financial constraints. Attention has been focussed in co-operation with the other
relevant organizations and institutions to redress some of the underlying constraints.
52. At the request of the General Council,
32 efforts have been made to enhance the participation
of developing and least-developed countries in the work of the relevant International Standard Setting
Organizations. Members at the Special Session of the General Council in October 2000 agreed to
proceed with work focussing on the following elements:
- "First, encouraging international standard-setting organizations to ensure the
participation of Members at different levels of development and from all geographic
regions, throughout all phases of standard development;
- Second, requesting the Director-General to explore with the relevant international
standard-setting organizations and relevant intergovernmental organizations financial
                                                     
32 WT/GC/M/59. Meeting of the General Council in October 2000.WT/COMTD/LDC/W/26
Page 13
and technical mechanisms to assist the participation of developing countries in
standard-setting activities;
- Third, requesting the Director-General to coordinate efforts with the relevant
international standard-setting organizations to identify SPS-related technical
assistance needs and how best to address these, taking into consideration the
importance of bilateral and regional technical assistance in this regard;  and
- Fourth, requesting the Director-General to make a progress report on his initiatives
regarding elements two and three above to the General Council..."
53. The Director-General, has periodically reported to Members on the specific steps taken.33 At
the Fourth Ministerial Conference, WTO Ministers took note of the actions taken and urged the
"Director-General to continue his cooperation efforts with these organizations and institutions … with
a view to according priority to the effective participation of LDCs and facilitating the provision oftechnical and financial assistance for this purpose."
34
54. Also at the Fourth Ministerial Conference, a joint statement was issued by the Directors-
General of the World Trade Organization, the Food and Agriculture Organization of the United
Nations, the Office International des Epizooties, the World Health Organization and the President of
the World Bank.35  It reaffirmed commitment amongst these organizations to enhance the capacity of
developing countries to participate in the development and application of international standards.  The
statement underlined the necessity of exploiting synergies between standard-setting bodies and other
agencies, particularly in the area of the provision of technical assistance.  In parallel, an inter-agency
forum was established so as to give operational meaning to the renewed commitment to coordination
among the five organizations.  A first meeting of this forum took place at the WTO Secretariat on 11January 2002.  Further meetings are planned in 2002.
55. The WTO has worked with the standardizing bodies to enhance LDC participation and
benefits, for example in organizing back-to-back meetings of the relevant committees; joint
regional/national workshops and seminars – often in the margins of each other's meetings; referrals
from the SPS Committee of issues for consideration by the standard-setting bodies. Theseorganizations have been invited on a regular basis to update the TBT Committee on their technical
assistance activities and the ways in which they are seeking to ensure effective participation of LDCs
in their activities. In 2001-02, the WTO and ISO have been organizing a series of 5 regional
workshops aimed at identifying constraints and solutions to enhance the participation of developing
countries in international standard setting activities. These joint workshops (covering countries in allregions) will culminate at a final summary session/event in the ISO General Assembly in September
2002.
56. In addition to the intense collaboration with the standard-setting bodies, the WTO is also
cooperating with the ITC, UNDP, UNIDO, WHO and other international and regional organizations
on training and technical assistance activities which address the needs for LDCs with regard to food
safety and quality, standards and technical regulations. Efforts have been made to expand this
cooperation.
                                                     
33 Reports by the Director-General on "Actions to  increase the Participation of Developing Country
Members in the work of the relevant International Standard-Setting Organizations is contained in documentsWT/GC/42, WT/GC/45, WT/GC/46/Rev.1 and WT/GC/54.
34 See 3.5 and 5.3 of WT/MIN(01)/17. Implementation-related issues and concerns - Decision of 14
November 2001.
35 "Participation of developing countries in the deve lopment and application of international standards,
guidelines and recommendations on food safety, animal and plant health – Joint Statement circulated by theDirectors-General of the FAO, OIE, WHO, WTO and the President of the World Bank" WT/MIN(01)/ST/97WT/COMTD/LDC/W/26
Page 14
F. LEAST DEVELOPED COUNTRIES ' TRADE POLICY REVIEWS
57. The Trade Policy Review Body's (TPRB) Report to the Singapore Ministerial Meeting
suggested that greater attention be paid to the coverage of LDCs in the preparation of the TPRB
timetable. This was followed by the High Level Meeting in October 1997 that recommended that the
WTO accommodate requests from LDCs for Trade Policy Reviews on a priority basis and assist
LDCs in preparing for their reviews.36 The 1999 Appraisal of the operation of the Trade Policy
Review Mechanism (TPRM) also drew attention to this matter.37
58. The increased importance given to the reviews of LDCs has led to 12 such reviews since
1998. The programme of reviews for the year 2002 includes 4 LDCs, namely Haiti, Malawi,
(completed in February 2001) Mauritania, and Zambia, and at least 5 are scheduled for 2003, namely
Burundi, Lesotho, Maldives, Niger and Senegal (see Table 5 below).
TABLE 5 - T RADE POLICY REVIEWS OF LDC S
Completed (15) Bangladesh (twice), Benin, Burkina Faso, Guinea, Lesotho,
Madagascar, Malawi, Mali, Mozambique, Senegal, Solomon
Islands, Tanzania, Togo, Uganda (twice), and Zambia
Scheduled till 2003 (8) Burundi,  Haiti, Lesotho, Maldives, Mauritania, Niger,
Senegal and Zambia
59. In addition to meeting its transparency goals, Trade Policy Reviews (TPRs) of LDCs have
increasingly performed a technical assistance role. The reviews have enhanced understanding in these
countries of the WTO Agreements and its relationship with the trade policy structure in place,
enabling better compliance and integration in the multilateral trading system. Since 2000, the
preparation of reviews of LDCs responds more systematically to technical assistance needs with a
view to feeding the findings into the Integrated Framework process38 and poverty reduction strategies
(PRSPs). The Secretariat Report for a LDC review includes a section on technical-assistance needs
and priorities, as identified in co-operation with the Member concerned.
60. The review process for LDCs now also include s a three-to-four-day seminar on the WTO, the
trade-policy review exercise, and the role of trade in economic policy. In 2001, seminars were held in
the context of the reviews of Haiti, Malawi, Mauritania and Uganda. In 2002, such seminars havealready been held in Maldives and are also scheduled for Burundi, Lesotho and Mauritania. The
seminars and the technical-assistance section in the Secretariat reports involve close co-operation
between the WTO's Trade Policy Review Divisi on (TPRD) and Technical Cooperation Division. In
the Trade Policy Review area, there are 15 technical assistance activities, planned for 2002, of which
7 activities involve the LDCs.
61. In addition to trade policy formulation, the review process also discusses the economic impact
of trade measures, and places individual Members' trade and economic regimes within the wider
context of developments in their region.  Given the growing importance of regional trade agreements
                                                     
36 The Report of the High-Level Meeting is contained in WT/LDC/HL/23.
37 WT/MIN(99)/2.
38 In Lesotho, Malawi, and Mauritania for instance, preparation of the TPR has fed into the Integrated
Framework process; in particular, the drafting and prep aration of the Diagnostic Trade Integration Studies.WT/COMTD/LDC/W/26
Page 15
and groupings, the analysis in the reports has proved useful in discussing the wider impact of recent
economic developments in certain regions, as well as the more general question of the impact of
regionalism on the multilateral trading system.
62. The increased focus on completing TPRs of LDCs, which also has a technical assistance
component in it, is a positive step being taken by the WTO Secretariat to enhance participation of
LDCs into the multilateral trading system.
III. ISSUES FOR FURTHER CONSIDERATION
63. Through the 1990s, trends in LDC trade indicate that the group as a whole, has seen its share
in global trade remain largely static and margin al. Though there is heterogeneity in the LDC group
with some countries witnessing robust growth, many  LDCs, in fact the majority experienced marginal
or no growth in trade this past decade. The intern ational community recognizes the marginalization of
LDCs and is committed to addressing it.  Concrete actions have been taken, including at the Third UNConference for LDCs (LDC-III) in May 2001, to en hance LDCs' participation. Members of the WTO
Sub-Committee on LDCs contributed to the successful outcome of the LDC-III Conference with
“deliverables” for the thematic session on trade.
39
64. At Zanzibar, LDC Trade Ministers defined a common LDC negotiating position and agenda
for the Fourth WTO Ministerial Conference. The importance attached by Members to these issues wasreflected in the adoption of the WTO Work Programme for LDCs at the Sub-Committee where LDC
concerns continue to be the focus of future work.
65. The WTO LDC Consultative Group also continues to meet regularly and has enhanced the
participation of LDCs in WTO bodies. The eff ectiveness of the LDCs Consultative Group was
reflected in the run-up to Doha, as the LDCs s ubmitted a number of proposals prepared following
discussion and development of common positions in the Group.  LDCs, for example, had inputs in the
proposals on TRIPS and Public Health, Implementation issues, market access etc. The paragraphs in
the Doha Ministerial Declaration dealing with LDCs and those with technical cooperation, also had
substantive input from LDCs. Continued LDC input in  the negotiating process will further assist in
integrating LDCs in the rules-based multilateral trading system.
66. In this regard, the Doha Development Agenda, with its "development" focus has brought
some of the issues of concern to LDCs to the fore. While recent developments and initiatives have
assisted LDCs, there is scope for further improvements in several areas:
• Improved market access with the elimination of tariff and non-tariff barriers facing LDC
exports, particularly in products and markets of interest to them. LDCs have sought
predictability and improvements in access. Addressing some of the difficulties faced incompliance and administration of origin requirements, standards etc. has also been a
priority. In the Doha Ministerial Declaration, Ministers committed themselves to “the
objective of duty-free, quota-free market access for products originating from LDCs” and
“to consider additional measures for progressive improvements in market access for
LDCs.” Market access improvements continue to be the focus of further action, including
in the context of ongoing market access negotiations in goods and services;
• Priority in the delivery of Trade-Related Technical Assistance & Capacity Building for
LDCs is to continue with a view to their more effective participation in the multilateral
                                                     
39 See also WT/COMTD/LDC/M/24 – 25.WT/COMTD/LDC/W/26
Page 16
trading system. In this regard, additional activities will be considered in the drafting of the
WTO Annual Technical Assistance Plan for 2003; 40
• The further extension of the Integrated Framework (IF) could be considered, as it
continues to function as a development mechanism for capacity building, domestic policy
reform and further trade integration. National ownership as an integral element of the IF
is key to achieving these objectives; and
• Domestic policy reforms that include sound macroeconomic and fiscal management will
assist LDCs in enhancing their participa tion in the multilateral trading system and
ensuring that the benefits to be realized from external trade liberalization are not offset.
__________
                                                     
40  Assistance is also being provided to LDCs by bilateral donors, multilateral and regional
organizations. For example, in the context of the ongoing efforts to enhance the participation of developing and
LDCs in International Standard-Setting Organizations.