WORLD TRADE
ORGANIZATIONWT/COMTD/LDC/W/30
7 May 2003
(03-2424)
Sub-Committee on Least-Developed Countries
ENHANCING THE PARTICIPATION OF LEAST-DEVELOPED COUNTRIES IN THE
MULTILATERAL TRADING SYSTEM
Note by the Secretariat1
I. INTRODUCTION
1. Following the adoption of the WTO Work Programme for Least-Developed Countries
(LDCs),2 the Sub-Committee on Least-Developed Countries ("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 Note, prepared for discussion in the Sub-Committee, updates
the previous Secretariat document.3
2. There is a considerable body of research and data on LDCs' trade performance.4  As indicated
in the following section, the share of LDCs in glob al trade has remained largely static and marginal.
However trade performance alone does not capture the integration of LDCs or steps taken to enhance
their participation.  The multilateral trading system as embodied by the WTO has in the past few years
witnessed a more active role of LDCs in its work and in the ongoing negotiations.  Section III of thedocument gives a brief account of the negotiating agenda and proposals made by LDCs in the context
of the Doha Development Agenda (DDA) negotiations.  Initiatives taken by the Secretariat are also
outlined in this Section of the document.  This is followed by some concluding remarks in Section IV.
II. RECENT TRADE DEVELOPMENTS OF LEAST-DEVELOPED COUNTRIES
3
A. OVERVIEW
3. Through the 1990s, the merchandise and commercial services exports of the LDCs expanded
at about the same rate as world trade.5  Over the period 2000 - 2002, their merchandise exports and
imports have grown somewhat faster than world trade.  Estimates of LDCs' commercial services trade
in 2002, points to a below average growth of exports but an above average growth for imports.
Consequently, between the period 1990-2002, (see Chart 1 and Tables 1, 2) there has been no erosion
in the share of LDCs in world trade but also no significant change in their overall situation as
                                                     
1 This document has been prepared under the Secretariat's own responsibility and without prejudice to
the positions of Members and to their rights and obligations under the WTO.
2  The WTO Work Programme for LDCs (WT/COMTD/LDC/11) was adopted by the Sub-Committee
on 12 February 2002.
3 WT/COMTD/LDC/W/26.
4 Trends and changes in the trade patterns of developing and LDCs' trade have also been reported in
WT/COMTD/W/100 and Add.1, WT/COMTD/LDC/W/26, WT/LDC/SWG/IF/14/Rev.1, WT/COMTD/W/65,
WT/COMTD/W/31,  WT/COMTD/W/15 and recent IMF, OECD, UNCTAD and World Bank publications.
5 Between 1990 – 2000, a nnual growth rates of LDCs merchandise and commercial services exports
were 7 and 6 per cent respectively.  World trade in goods and services over the same period grew annually at 6and 7 per cent respectively.WT/COMTD/LDC/W/30
Page 2
marginal participants in world trade.  This observation for LDCs as a group does not, however, apply
to the experience of individual LDCs within the Group.
Merchandise
6.4
4.95.2 5.3
02468
Exports ImportsCommercial services
5.1
4.75.8
5.3
02468
Exports ImportsChart 1:  Merchandise and commercial services trade of LDCs, 1990 -  2002
(Average annual percentage change)
LDC  World%%
4. Between 1990 – 2002, WTO Secretariat estimates indicate that average annual growth rates
of merchandise trade in some 18 LDCs,6 namely, Angola, Bangladesh, Cambodia, Equatorial Guinea,
Guinea-Bissau, Haiti, Kiribati, Lesotho, Madagascar , Mali, Mozambique, Myanmar, Nepal, Lao PDR,
Sudan, Tanzania, Uganda and Yemen, outpaced the growth in global trade over the same period (See
Chart 2(c) and (d) and Addendum Table).  The strong  performance of some LDCs was offset by the
weak performance in others.  Thirteen LDCs, witnessed negative growth in trade and in absolute
terms, merchandise exports in 2000-02 was below even the 1990 levels.7
5. In Chart 2 (a) the sum of exports and imports of individual LDCs8 is ranked in descending
order.  Merchandise trade exceeded US$ 1 billion in 21 of the 47 LDCs for which data is available.9
Of these 21 LDCs, only three, namely Bangladesh, Angola and Yemen, had merchandise trade of over
US$ 5 billion.  While by trade volume, most LDCs are marginal players in world trade,10 per capita
trade in some LDCs is significant (see Chart 2 (b)) and points to the importance of the external sector
in these countries.  This is particularly true for some of the smaller LDCs (e.g. Small Island
Developing States (SIDS)) or those particularly  well endowed with natural resources (e.g. oil-
exporting LDCs).  LDCs such as Angola, Cape Verd e, Equatorial Guinea, Kiribati, Maldives, Samoa
and Vanuatu all had per capita trade in excess of US$ 500.
                                                     
6 For 12 of these 18 LDCs, average annual growth rates exceeded 10 per cent or more than twice the
growth rate in global trade during the same period.
7 Prolonged periods of civil strife in some LDCs, such as, Afghanistan, Burundi, Democratic Republic
of Congo, Sierra Leone, Somalia and Rwanda severely affected their trade performance through the 1990s.
8 Secretariat estimates averaged out for the period 2000-2002 to account for year-on-year fluctuations.
9 No data available for Eritrea and Tuvalu.
10 The average annual growth rates in their trade over the period 1990-2002 (in charts 2 (c) and (d))
should be examined in the context of the small trade base of most LDCs.WT/COMTD/LDC/W/30
Page 3Chart 2:  Merchandise Trade of LDCs, 1990-2002
Chart 2 (a): Merchandise trade of LDCs, 2000-2002 
(Exports plus imports, billions of US Dollars) 
 Sene gal  Cambodia  Sudan  Myanmar  Yemen  Angola  Bangladesh 
0246810121416Chart 2(b): Per Capita merchandise trade of LDCs, 2000-2002 
( Exports plus imports, US Dollars)
Vanuatu Equatorial Guinea Angola 
Lesotho Maldives 
Cape Verde Samoa 
0200400600800
Chart 2(c): Merchandise exports of LDCs, 1990-2002a 
(Average annual percentage change in dollar values)
 Equatorial Guinea  (35)
 Bangladesh 
 Sierra Leone  (-13)Kiribati 
Guinea-Bissau 
Rwanda  Afghanistan  Lao PDR  Lesotho Mozambique 
D.R, Con go  Zambia  Cambodia 
 Yemen 
 Tanzania  Uganda 
-10-5051015202530Chart 2(d): Merchandise imports of LDCs, 1990-2002a 
(Average annual percentage change in dollar values)
Burundi Samoa Somalia  Lao P.D.RAngola Myanmar Cambodia 
Equatorial Guinea 
Nepal Haiti 
D.R, Congo
-10-5051015202530
World Average
a Referring to the growth between the average of the years 1989-1991 and 2000-2002.
Note: Countries are ranked in descending order ( from left to right) of the sum of merchandise exports and imports in 2002.
Source: WTO estimates. See addendum Table.WT/COMTD/LDC/W/30
Page 4
B. STRUCTURE OF TRADE
(i) Trade in Goods
6. Merchandise exports of LDCs as a Group grew by 4 per cent in 2002 to US$ 38 billion.  A
breakdown is provided in Table 1.  Unlike previous years, in 2002, commodity exporters (both fuel
and non-fuel) recorded stronger growth than the exporters of manufactured goods.  However, given
the limited time period and provisional data available, it is premature to advance a full explanation forthese recent developments.
7. As a commodity, oil is the single most important category of LDCs' merchandise exports.
Four oil exporting LDCs, Angola, Equatorial Guinea, Sudan and Yemen, accounted for about
37 per cent of total LDC exports in 2002.  Fluctuations in oil prices had a strong influence in the
export earnings of the LDC as a group.  Fuel prices declined in the first half of the 1990s, but
increased in the second half.  This volatility in o il prices contributed to the falling share of LDCs in
world merchandise exports in the 1990-95 period and to its increase in the 1995-2000 period.  Year-on year variations affect export earnings and point to the need for export diversification in
commodity-exporting LDCs.
Table 1 :   Merchandise Exports of Least-Developed Countries, 1990 – 2002
 (Billion dollars and percentage)
 Value Annual percentage change  
       
2002 1990-2000 2001 2002
Total (47) 38 7 1 4 Oil exporters (4)
a14 11 -10 8
 Exporters of manufactures (7)b12 15 6 0
 Commodity exporters (36) 11 -1 14 4
Memorandum item :  
World 6240 6 -4 4  
Note:   No data available for Eritrea and Tuvalu.
 a  Angola, Equatorial Guinea, Sudan and Yemen.
 b  Bangladesh, Cambodia, Lao PDR, Lesotho, Madagascar, Myanmar and Nepal.
Source:  WTO and UN Comtrade Database.
8. Seven LDCs (Bangladesh, Cambodia, Lao PDR, Lesotho, Madagascar, Myanmar and Nepal),
saw a significant expansion in their trade through the 1990s.  As exporters of manufactures, their
exports collectively grew at an impressive rate of 15 per cent per annum.  These countries nowaccount for about a third of total LDC exports.  Notwithstanding the marked slowdown in 2002,
exports from these countries are not subject to sharp fluctuations in export prices.  However, changes
in consumer tastes or demand and the possibility of  increased competition, for example in textiles and
clothing with the phased integration of these produc ts under the Agreement on Textiles and Clothing,
pose new challenges and opportunities to some of these LDCs.
9. A majority of the LDCs, about two-thirds, are dependent on a few non-fuel commodity
exports. Data estimates for 2002 indicate that exports of these countries rose by 4 per cent afterWT/COMTD/LDC/W/30
Page 5
marked gains in 2001.  Among the larger LDC non-fuel commodity exporters, Senegal, Mali and
Tanzania, had above average export growth rates in 2002.  The robust growth in the exports of the
non-fuel commodity exporters in 2001-02, was in contrast to the decline in export earnings of
commodity exporting LDCs through the 1990s.  A combination of external and internal factors, such
as the fall in commodity prices, market access opportunities, lack of product diversification and value
addition in exports, macroeconomic and exchange rate policies, or in some instances civil strife mayhave contributed to the year-by-year fluctuations in  export earnings of these LDCs.  It is encouraging
to note that over the past two years, some non-fu el commodity exporters have increased their export
shipments, despite the adverse price developments in commodity markets.  Export diversification and
processing up the value chain in some of these LDCs may have improved their export performance.
10. On the imports side, LDC merchandise imports continue to exceed exports.  In 2002,
merchandise imports of LDCs rose by 3 per cent to US$ 45 billion.  However, the annual growth in
LDC imports (4.9 per cent), was less than the gr owth in exports (6.3 per cent) during the period
1990 – 2002.  The variation in the year-on-year growth rates on the import side, though significant,
was also less pronounced than those for LDC exports.  This was on account of a significantly more
diversified import structure in LDCs.
(ii) Trade in Services
11. As in goods, LDCs share in global commercial services trade is marginal (see Table 2 below).
In 2002, while globally, trade in services accounted for about one-fifth of total trade, in LDCs,
commercial services accounted for about one-eighth of total LDC exports.  However, these aggregate
estimates conceal variations at the country level.  Trade in services is an important and leading export
sector in some LDCs.
11  On the import side, LDCs imports of commercial services in 2002 have
increased to US$ 16 billion.  The deficit of US$ 10 billion in LDCs' commercial services trade
continues to be much larger than their deficit in merchandise trade.  This larger deficit may partly be
accounted for by the importance of imports and liberalization of services in some LDCs as a means of
attracting foreign investment, particularly in sectors such as transport, telecom, financial services etc.
which though central to economic activity are often in short domestic supply.
Table 2 :   Commercial Services trade of Least-Developed Countries, 1990-2002
 (Billions of dollars and percentage)
Value Annual percentage change
       
 2002 1990-2000 2001 2002  
Least-Developed Countries
Exports 6 6 -4 5
Imports 16 4 13 4
Memorandum item :  
World exports 1538 7 -1 5  
Source: WTO estimates.
                                                     
11 In 1998, services exports in nine LDCs accounted for more than one half of their total export
earnings and for another seven LDCs the share of services exceeded one third of total export earnings.  See alsoWT/COMTD/LDC/W/26 for a fuller account of services trade in individual LDCs.WT/COMTD/LDC/W/30
Page 6
C. DIRECTION OF TRADE
12. Table 3 below, lists LDC exports to selected regions for the years 1990, 2000 and 2001.  The
breakdown of exports by destination indicate significant changes, with the share of North America
and Developing Asia, increasing rapidly.  In value terms, LDC exports to the North American and
Developing Asia markets doubled and quadrupled respectively over the 1990s. Western Europe, with
imports in 2001 totalling US$ 12.8 billion continues to be the top importer of LDCs products.However, its share as a market for LDC exports has reduced considerably over the last decade from
58 per cent in 1990 to 38 per cent in 2001.  Japan's share over the same period has also dropped by
more than half to 3 per cent in 2001.
Table 3: Merchandise imports of selected regions from LDCs, 1990, 2000 and 2001
(Billions of US dollars and percentage)
 Value  Share
 1990 2000 2001  1990 2000 2001
Western Europe 11.5 12.0 12.8 58 36 38
Asiaa3.7 11.6 10.7 19 34 32
   Japan 1.3 1.2 1.1 7 4 3   Developing Asia 2.4 10.2 9.4 12 30 28North America 4.8 10.1 10.2 24 30 30
Total 20.0 33.7 33.7  100 100 100
a  Including Japan, Australia, New Zealand and 11  Developing Asia economies (Chinese Taipei; China; Hong Kong, China; India;
Indonesia; Rep. of Korea;  Malaysia; Pakistan; Philippines; Singapore; Thailand).
Source: UN Comtrade.
13. Between 2000 and 2001, LDCs trade to Developing Asia dropped in value terms, from
US$ 10.2 billion to US$ 9.4 billion. Over the same period, LDC exports to Western Europe and North
America marginally increased over previous year levels.  The product composition of LDC exports to
these regions as highlighted in Table 4 accounts for some of these trends.  In  2001, more than two
thirds of Developing Asia's imports from LDCs consisted of mining products (mainly fuels).  The
decline in oil prices contributed to the decrease in Developing Asia's imports from LDCs in 2001.
Table 4: Product structure of merchandise imports of selected regions from LDCs,  2001
(Percentage)
 Total Agricultural Mining Manufactures
  products products
Western Europe 100 21 26 52
Asiaa100 23 66 11
    Japan 100 38 43 19    Developing Asia 100 21 69 10North America 100 5 42 51
     
a  Including Japan, Australia, New Zealand and eleven  Asian developing economies (Chinese Taipei; China; Hong Kong, China;
India; Indonesia; Korea, Rep. of; Malaysia; Pakistan; Philippines; Singapore; Thailand).
Source: UN Comtrade.WT/COMTD/LDC/W/30
Page 7
14. The product composition of LDCs' trade as outlined in Table 4 indicates that more than half
of LDC exports to major developed country markets in Western Europe and North America were of
manufactured goods.  Japan and Developing Asia, mainly imported agricultural and mineral products
from LDCs.  Agricultural products accounted for a fift h or more of total imports from LDCs in all
regions except North America.
15. Though developed countries continue to be the major destination for LDCs' exports,12 the
importance of developing countries as a market for LDC products has also increased over the last few
years.  Table 5 provides an analysis13 of the share of developing countries in individual LDC exports.
While some land-locked LDCs surrounded by developing and other least-developed countries could
be expected to have a high proportion of their exports transited or destined to neighbouring markets, it
is interesting to note that out of a sample of 41 LDCs, 14 (or more than one-third) depended mainly
on developing country markets for their merchandise export earnings. Out of these 14 LDCs, only two
are petroleum exporters (Yemen and Sudan).  For another group of 11 LDCs (group B), 30 to50 per cent of their exports are shipped to developing countries.  For the remaining 16 LDCs (group
C), the share of developing countries in exports was less than 30 per cent.  Taking all the 41 LDCs
together as a group, on average, 37 per cent of the exports were destined for developing country
markets.
Table 5:  Share of developing countries in LDC exports, 1999-2001  (Percentage)
A.  LDC with a high share (ranging from 50 to 99 per cent)
Bhutan (99), Somalia (97), Guinea Bissau (93), Yemen (86), Djibouti (83), Togo (74), Sudan (72),
Benin (67), Zambia (63), Myanmar (58), Lao People 's Democratic Republic (56), Burkina Faso (55),
Afghanistan (53), Mali (51).
B.  LDC with an average share (ranging from 30 to 50 per cent)
Senegal (49), Tanzania (45), Nepal (45), Uganda (44),Lesotho(43), Ethiopia (42), Vanuatu (42),
Niger (41), Maldives (37), Angola (31), Equatorial Guinea (31).
C.  LDC with a small share (ranging from 0 to 30 per cent)
Malawi (29), Cambodia (29), Kiriba ti (27), Gambia (25), Chad (22), Mauritania (18), Comoros (17),
Liberia (16), Madagascar (15), Central Af rican Republic (12), Sierra Leone (11),
Congo, Dem. Rep. (9), Bangladesh (8), Guinea (7), Haiti (6), Sao Tome (3).
Source:  UN, Comtrade and WTO estimates.
16. As indicated in the Tables 4 and 5 above, LDCs export manufactured and primary products to
developed and developing country markets.  Studies14 indicate that there remain significant import
restrictions in some of the products and markets of  interest to LDCs.  Enhancing LDCs integration
into the global economy therefore will involve initiatives over a broad front and requires addressingboth the external and domestic policy or supply-side constraints faced by LDCs.
                                                     
12 Developed country markets currently account for about 60 per cent of LDCs total exports.
13 Secretariat estimates are for the three-year period 1999-2001.
14 See WT/COMTD/LDC/W/28.WT/COMTD/LDC/W/30
Page 8
17. Paragraph 42 of the Doha Ministerial Declaration, recognises that the meaningful integration
of LDCs into the multilateral trading system, will involve efforts by all WTO Members.
Improvements in market access, support for the diversification of LDCs production and export base,
and trade-related technical assistance and capacity building are some of the initiatives/measures
needed to further the participation and growth prospects of LDCs.
III. RECENT DEVELOPMENTS/INITIATIVES TO ENHANCE PARTICIPATION
18. As discussed in the preceding section, though the individual trade performance of some of the
LDCs may have been robust and encouraging, the LDC Group as a whole, continued to be marginal
participants in global trade.  Enhancing the participation of the LDCs in the global economy requires
initiatives over a broad front.  Based on the checklist of issues identified in paragraph 15 of the WTO
Work Programme of LDCs ,15 recent developments and initiatives to further LDCs' integration into the
multilateral trading system are highlighted.  The sub-sections follow the sequence of this checklist.
A. THE NEGOTIATING AGENDA OF THE LDC S IN THE CONTEXT OF THE DOHA MINISTERIAL
DECLARATION AND DECISIONS
19. Concrete steps have been taken in the context of the Doha Development Agenda (DDA) to
advance the negotiating agenda and the priorities of LDCs.  The Doha Ministerial Declaration itself
has references to issues of interest and concern to LDCs.16 Ministers in paragraph 3 of the Doha
Ministerial Declaration, committed themselves to address "the marginalization of least-developed
countries and to improve their effective participation in the multilateral trading system".  The
concerns expressed by LDC Trade Ministers in the Zanzibar Declaration (WT/L/409) were also
acknowledged in paragraph 42 of the Doha Ministerial Declaration.
20. The Trade Negotiations Committee (TNC) and the DDA negotiating structure was
established17 in early 2002, to oversee the organization and management of the Doha Work
Programme. The TNC has since held eight formal meetings on 28 January and 1 February 2002,
24 April 2002, 18-19 July 2002, 3-4 October 2002, 4-6 December 2002, 4-5 February 2003,
4-5 March 2003, and 4 April 2003.18 The next meeting of the TNC has been scheduled on 9 May
2003. Numerous informal meetings, often at the level of Senior Capital-based officials have also beenheld.  LDCs have been active participants in the negotiations.  Where possible, efforts have been
made to facilitate the participation of Non-Resident delegations, for instance, the next Geneva Week
for Non-Residents has been scheduled for 14-18 July 2003 to coincide with the meeting of the TNC.
21. Thirty LDCs are Members and a further ten are currently in the process of acceding to the
WTO.  The LDCs as a group, account for more than a fifth of the Membership and have an importantstake in the outcome of the Doha Development Agenda negotiations.  In the proposal driven
negotiating process, LDCs have made several submissions on a wide range of issues of interest to the
Group.  Areas covered by submissions include special and differential treatment, market access, trade
in services, dispute settlement and TRIPS.
                                                     
15 WT/COMTD/LDC/11.
16 WT/MIN(01)/DEC/1.  Several references are made to the interests and concerns of LDCs in  the
Declaration, viz. in paragraphs 2-3, 9, 15-16, 21- 22, 24-28, 32-33, 36, 38-39, 42-43, 44 and 50.  The Decision
on Implementation Related Issues and Concerns (WT/MIN(01)/17) and the Declaration on the TRIPS
Agreement and Public Health (WT/MIN(01)/DEC/2) also contain several references to developing and LDCs.
17 See TN/C/1 endorsed by the TNC as envisaged in paragraphs 46 of the Doha Ministerial Declaration.
18 Records of the meetings of the TNC are contained in the document series TN/C/M/-.WT/COMTD/LDC/W/30
Page 9
22. In some instances, an "early harvest" of decisions/measures of particular importance to LDCs
has been possible.  This has resulted in the:
(a) adoption of the WTO Work Programme for LDCs,19 as mandated in paragraph 42 of
the Doha Ministerial Declaration;
(b) Decision on the "Extension of the Transition Period under Article 66.1 of the TRIPS
Agreement for LDC Members for Certain Obligations with Respect toPharmaceutical Products"
20 giving effect to paragraph 7 of the Doha Declaration on
the TRIPS Agreement and Public Health (WT/MIN(01)/DEC/2);
(c) Adoption by the General Council of the draft waiver21 in respect of the obligations of
LDC Members under Article 70.9 of the TRIPS Agreement until 1 January 2016;
(d) Decision on the "Accession of LDCs"22 adopted by the General Council, pursuant to
paragraphs 9 and 42 of the Doha Ministerial Declaration and paragraph 18 (iii) of the
WTO Work Programme for LDCs (WT/COMTD/LDC/11); and
(e) Decision on the "Implementation of Article 66.2 of the TRIPS Agreement",23 giving
effect to the instructions of the Doha Ministerial Conference in paragraph 11.2 of the
Decision on Implementation Related Issues and Concerns (WT/MIN(01)/17).
23. The Decision on Implementation Related Issues and Concerns, adopted at the Fifth
Ministerial Conference also addresses several of the concerns raised by developing and least-developed countries.
24  Those issues which could not be fully resolved were included in the
Compilation of Outstanding Implementation Issues raised by Members, contained in
Job(01)/152/Rev.1.  The compilation includes proposals made by the LDC as a Group.25  I n
accordance with paragraph 12 of the Doha Ministerial Declaration, negotiations on outstanding
implementation issues are being treated as an integral part of the Doha work programme.
24. As listed above, the decisions/measures adopted by the Membership is evidence of some of
the concrete steps taken in response to the specific needs of LDCs.  However, there is still further
work to be done and that is ongoing in bodies such as the Special Session of the Committee on Trade
and Development, Special Session of the Council for Trade in Services, Negotiating Group on Market
Access and the Special Session of the Dispute Settle ment Body.  LDCs as a Group have put forward
proposals in several of the key areas of interest to them.  While it is not within the scope of this paper
to examine in detail the negotiating objectives of the proposals submitted, the active participation by
LDCs in the ongoing negotiations is underscored in Table 6 below, which highlights with document
reference numbers, the LDC proposals to date.
                                                     
19 WT/COMTD/LDC/11.  Adopted by the Sub-Committee on Least-Developed Countries on
12 February 2002.
20 IP/C/25 adopted by the Council for Trade-Related Aspects of Intellectual Property Rights (Council
for TRIPS) on 27 June 2002.
21 WT/L/478 adopted by the General Council  on 8 July 2002.
22 WT/L/508. The Guidelines on LDCs Accession were adopted by the General Council on
10 December 2002.
23 IP/C/28 adopted by the Council for TRIPS on 19 February 2003.
24 WT/MIN(01)/17 adopted by Ministers on 14 November 2001. There is specific reference to LDCs in
sections 2.2, 3.5(ii), 3.6, 4.4, 5.3(ii), 5.4, 6.2, 8.2, 10.5 and 12.1(ii) of the text. Many of the other provisions
covered in the Decision also applied to developing countries as a whole (including LDCs).
25 Proposals (dated 22 October 2001) were made by LDCs in Section 6, 8 and 10 of Job(01)/152/Rev.1.WT/COMTD/LDC/W/30
Page 10
Table 6: LDCs Negotiating Agenda/Proposals in the context of the DDA
Topic/WTO Bodies LDC Proposal (s) Comment
Committee on Trade and
Development, Special SessionTN/CTD/W/4 and Add.1
Non-Paper (30.1.03)The LDCs as a Group have submitted
proposals and participated actively in
the review of special & differential
treatment provisions with a view to
strengthening them and making them
more precise, effective andoperational.  The LDCs have in their
submissions made a number of
Agreement-specific proposals as well
as a few proposals on cross-cutting
and institutional issues.
Council for Trade in Services,Special SessionJob (02)/30
Job (02)/205Proposals on Modalities for the
Special Treatment of LDCs in theGATS negotiations were submitted by
the LDC Group.  A checklist of the
issues raised in the discussions was
circulated in Job(02)/135.  The LDC
Group announced its intention to
circulate a revised draft proposal on
modalities in the near future.
Some LDCs and developing countries
have also submitted a proposal calling
for the implementation of GATS
Article IV in the negotiations
(S/CSS/W/131). Submissionsconcerning the objectives of the
Assessment of Services have also
been made (S/CSS/W/114 and 132,
TN/S/W/3).
Dispute Settlement Body,Special SessionTN/DS/W/17
TN/DS/W/37
Job (03)/70The LDC Group, has submitted
proposals in the context of
negotiations on the improvement andclarification of the DSU.  These
include submissions for enhanced
special and differential treatment as
well as more general proposals under
consideration in the DSB, SpecialSession.
Negotiating Group on MarketAccessTN/MA/W/22 LDCs as a Group, have submitted
their proposal on the modalities for
the non-agricultural market access
negotiations.
Negotiating Group on Rules Job(01)/152/Rev.1
(LDC Proposals inLDC Proposals on Anti-dumping
Practices and Subsidies and
Countervailing Measures inWT/COMTD/LDC/W/30
Page 11
Topic/WTO Bodies LDC Proposal (s) Comment
Section 6 and 8) Job(01)/152/Rev.1 are being
addressed in the Negotiating Groupon Rules in accordance with
paragraph 12(a) of the Doha
Ministerial Declaration.
25. The table is not exhaustive and includes only the written submissions made by the LDCs as a
Group in the context of the DDA negotiations.  Other informal groups, like the African Group which
include a number of LDCs26 have also been active in the DDA negotiations and work programme.
However, proposals submitted by the African Group or other sub-groups of developing and least-
developed countries have not been covered or listed in column 2 of the table above.
26. The proposals and regular inputs of LDCs point to their increased participation in multilateral
trade negotiations.  As highlighted in the following sections, technical assistance and the pooling of
scarce resources, for instance through informal  groupings like the WTO LDCs' Consultative Group
have helped LDCs.  Their active involvement in the DDA negotiations and work programme, despite
the capacity constraints faced, is encouraging and bodes well for the further integration of LDCs inthe rules-based multilateral trading system.
(i) The WTO LDCs' Consultative Group and Meetings of LDC Trade Ministers
27. The LDCs as a Group have pooled scarce resour ces and coordinated positions closely.  The
WTO LDCs' Consultative Group has facilitated this process as Geneva-based LDC trade
officials/Heads of  Delegation meet on a regular basis.  Based on their work in the WTO LDCs'
Consultative Group, the LDCs have often articulated their positions in the meetings of the various
WTO Bodies and Negotiating Groups.
28. The Consultative Group was set up in January 2001 to play a co-ordinating role among WTO
LDC Members and Observers.  It enables LDCs to further their own priorities with more effective
participation in the procedural operations and substantive discussions of the WTO.  As mentioned in
Table 6 of the preceding section, several important proposals in key negotiating areas have been
advanced by the LDCs, through this Group.  Among the proposals to emanate from the LDC Groupare those on special & differential treatment, modalities for Services and non-agricultural market
access negotiations and DSU.
29. 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, and those focal points then report to the wider Group at their regular weeklymeetings.  The Group has a rotating Coordinator elected from among its members, who serves a
six-month period of office.  The WTO services and provides interpretation for meetings of this group.
Under the WTO Internship Programme, voluntary contributions are used to provide interns (for not
more than six months) to work in the missions of the rotating co-ordinators.
27
30. LDC Trade Ministers have also organised meetings to prepare for the WTO Ministerial
Conferences.  The first such LDC Trade Ministerial Meeting was held in Zanzibar, Tanzania, on 22 –
                                                     
26 Of the 49 countries currently designated by the United Nations as "least-developed", 34 are in Africa,
eight are in Asia, five are in the Pacific and one each is in the Caribbean and the Middle East.
27 See Annex 1 of WT/COMTD/W/104/Add.1/Rev.2 for a full listing of the Informal Groups covered
by the WTO Internship Programme.WT/COMTD/LDC/W/30
Page 12
24 July 2001, to prepare for the Fourth Ministerial Conference.  The Zanzibar Declaration,28 was
presented by Tanzania, on behalf of LDCs, to the General Council in July 2001.  It set out the
negotiating objectives and the common position taken by LDCs at the Doha Ministerial Conference.
31. The LDCs have already started coordinating their work and negotiation positions in
preparation for the Fifth WTO Ministerial Conference to be held at Cancun, Mexico in
September 2003. The Second LDCs' Trade Ministers Meeting has been scheduled from 31 May –2 June 2003, in Dhaka, Bangladesh.  The WTO and UNCTAD Secretariats have been invited to
participate at the LDC Ministerial Meeting in Dhaka.
(ii) LDC Unit
32. In response to the specific request made by LDCs, the Director-General announced the
establishment of an LDC Unit in the WTO Secretariat.
29   The Unit was staffed and set up in February
2003, as part of the Development Division of the WTO.  As the  focal point for all LDC issues in the
Secretariat, the LDC Unit addresses  policy issues of interest to LDCs, including those arising in the
context of the DDA negotiations.  The LDC Unit is also responsible for the management of the
Integrated Framework (IF) and services the Sub-Committee on LDCs, the WTO LDCs' Consultative
Group, the IF Working Group and the IF Steering Committee.
(iii) WTO Training and Technical Assistance for LDCs30
33. To deliver technical cooperation to developing and least-developed countries in the WTO, the
Director-General, in March 2003, merged the WTO Training Institute and the Technical Cooperation
Division to constitute the Institute for Training and Technical Cooperation (ITTC).  The Institute is
responsible for the delivery of all WTO training and technical assistance.
34. Trade-related capacity building continues to be important in enhancing LDCs integration into
the multilateral trading system.  And the WTO, in collaboration with other bilateral, regional andmultilateral agencies, has a role to play in the delivery of training and technical assistance to LDCs.
In particular, WTO's technical cooperation activities are geared towards human and institutional
capacity building with a view to assisting beneficiaries "adjust to WTO rules and disciplines,
implement obligations and exercise the rights of membership."
31  In addition, WTO training and
technical assistance has also been focussed on building the negotiating capacity of LDCs and otherbeneficiary countries in the context of the DDA negotiations and work programme.
35. Training is important in building capacit y/understanding in LDCs' to implement WTO
Agreements and to participate in the ongoing negotiations.  Training courses delivered by the WTO
include the regular three-month Trade Policy Cour ses (TPCs), the three-w eek "Introduction to the
WTO Courses" specifically for LDCs,
 and specialized courses such as the Dispute Settlement
Courses.32 33 In light of the heavy demand for training, the General Council, in December 2001,
approved a revised budget encompassing, inter alia , the doubling of training capacities.  The increase
within the budget implies the doubling of the number of three-month TPCs from three to six annually.
                                                     
28 WT/L/409.
29 The announcement was made at the General Council in December 2002. See WT/GC/M/77.
30 See the Annual Technical Assistance Plans for 2002 (WT/COMTD/W/95/Rev.3) and 2003
(WT/COMTD/W/104/Rev.2 and Addendums) and the new Strategy for WTO Technical Cooperation(WT/COMTD/W/90) for a fuller account of WTO Training and Technical Assistance.
31 Paragraph 38 of the Doha Ministerial Declaration (WT/MIN(01)/DEC/1).
32 In addition, the Institute's training activities include trade-training capacity building (training-of-
trainers), distance learning services, and cooperation with universities in curriculum development on WTO and
trade-related issues.
33 Beneficiaries from LDCs receive fellowships to pa rticipate in the "Introduction to the WTO" courses
and the specialised courses on Dispute Settlement.WT/COMTD/LDC/W/30
Page 13
In the context of the DDA, two Regional Trade Policy Courses were held in 2002 for African
Government representatives (in Nairobi and Casablanca respectively).  Two similar courses are being
held in 2003.  WTO training courses like the DDA Advanced Training Programme for Senior
Government Officials have also been developed to build negotiating capacity.  The WTO Annual
Technical Assistance Plan for 2003, lists the regions and beneficiaries to participate in these courses
(ten courses have or are being delivered/scheduled including one specifically for LDCs). 34
36. In addition to training, the delivery of WTO technical assistance has also been stepped up
since the Doha Ministerial Conference.  The WTO Technical Assistance Plans have accorded priority
to the delivery of technical assistance to LDCs.  Activities listed in the WTO Secretariat Annual
Technical Assistance Plans include: national/regional seminars, technical missions, workshops,
conferences and symposia.35  In 2003, assistance is also being provided to LDCs through the
extension of WTO Internship Programme to include an intern for the co-ordinator of the WTO LDCs'
Consultative Group.    In sum there were 70 national activities for the LDCs in the 2002 Plan.36  This
was increased in the 2003 Plan, when up to three national activities have been allocated to each LDC.
In 2003, LDCs will participate in approximately 150 regional activities in addition to the 115 national
activities programmed for LDCs.
37. Work on the implementation of the 2002 and 2003 plan has been carried out at several levels.
While the WTO can address some of the technical assistance needs of developing and least-developedcountries, for others, coordination with the relevant multilateral, regional and bilateral agencies is
required.   WTO has been fostering close collaboration with other organizations involved in trade-
related technical assistance.  For example, in th e Joint Integrated Technical Assistance Programme
(JITAP) and the Integrated Framework (see also Section III.E).  Synergies and coordination has also
been possible in the context of the DDA work programme as information on technical assistance bythe WTO and relevant organizations is shared through the joint WTO and OECD Doha Development
Agenda Trade-Related Technical Assistance and Capacity Building Database.
37
38. The increased WTO training and technical assistance to LDCs and other beneficiary countries
has benefited from more secure and predictable funding.  Pursuant to the mandate contained in
paragraph 40 of the Doha Ministerial Declaratio n, a Doha Development Agenda Global Trust Fund
(DDAGTF) has been established by the General Council, on 20 December 2001, to fund WTO
technical cooperation activities.
B. INITIATIVES IN FAVOUR OF NON-RESIDENTS
39. There are 24 WTO Members and 12 Observers, who do not have any form of representation
in Geneva (i.e. are Non-Residents).  Of the Non- Resident Members, ten are LDCs (Burkina Faso,
Chad, The Gambia, Guinea-Bissau, Malawi, Maldives, Niger, Sierra Leone, Solomon Islands, and
Togo), while five of the Non-Resident Observer s are LDCs (Equatorial Guinea, Lao P.D.R., Samoa,
Sao Tomé & Principe, and Vanuatu).  As reflected in the Doha Declaration, technical assistance in
favour of Non-Residents is a priority for the Membership.38  Since, by definition, representation
remains the prerogative of sovereign states, the WTO's initiatives have focused more on building
capacity to participate in the work processes/negotiations of the WTO and improving the flow of
information to Non-Resident Members.
                                                     
34 See Annex VI of WT/COMTD/W/104/Rev.2 for the Calendar of the Advanced DDA Negotiations
Training Courses for Senior Government Officials in 2003.
35 Other activities listed in the Plan include: the setting-up of the WTO Reference Centres (see Section
III D); Geneva Week for Non-Residents (see Section III B); and assistance in the context of the Trade PolicyReviews (see Section III.F).
36 Forty-five of the national activities for LDCs had been delivered.  This figure excludes ad hoc
activities carried out in LDCs  (WT/COMTD/W/101/Add.4).
37 http://tcbdb.wto.org/index.asp (See also Section III.D).
38 Paragraph 38 of the Doha Ministerial Declaration. WT/MIN(01)/DEC/1.WT/COMTD/LDC/W/30
Page 14
40. Steps have been taken by the WTO to meet the special challenges faced by the Non-Residents
and to enhance their participation in the multilateral trading system.  The WTO organises "Geneva
Week" during which representatives of Non-Residents from Capital and from Europe-based missions
are invited to Geneva.  The objectives of the Week are to: brief participants on the state of play of
work in the WTO;  familiarise participants with the work processes of the WTO; provide information
about the range of technical assistance on offer; and provide an opportunity for participants – duringtheir stay – to be involved in the work of WTO bod ies.  They also have the chance to interact with
officials from other Geneva-based agencies, and with Geneva-based delegations. Geneva Week was
initiated in 1999, and has since been held every year.  To date, five Geneva Weeks have been
organized by the Secretariat.  The next Geneva Week will focus on preparations for the Cancun
Ministerial Conference and has been scheduled from 14 – 18 July 2003 to coincide with meetings of
Trade Negotiations Committee and the Dedicated Session of the Committee on Trade and
Development on Small Economies.  As of 2002, Geneva Week is funded through the regular budgetof the WTO.
41. Non-Residents are kept up to date on the WTO's work programme and trade developments.
Regular WTO Briefing Notes are prepared by the Secretariat which include a summary of meetings of
the various WTO Committees and Bodies.  The WTO Secretariat has also forwarded trade news
summaries to the Non-Residents, based on despatches by wire agencies.
42. As reflected in the recent WTO Annual Technical Assistance Plans, greater priority has been
accorded to technical cooperation activities for Non-Residents. WTO technical assistance and training
activities for non-residents include national, regional or Geneva-based seminars and workshops; trade
policy courses; technical assistance provided in the context of Trade Policy Reviews; and the WTO
Reference Centre programme.  In assisting Non-Re sidents, the WTO has worked closely with other
organizations, such as the Commonwealth Secretar iat, the Forum Secretariat and the Agency for
International Trade Information and Cooperation (AITIC).
C. I
NFORMATION TECHNOLOGY SUPPORT
43. The WTO has continued to develop information technology tools to assist LDCs' in their
integration.  These initiatives enable LDCs to electronically access WTO training materials and up todate information.  Through the establishment of Reference Centres, the WTO Secretariat has helped
decision makers in least-developed and developing countries better understand the WTO.  The WTO
has provided computer equipment, internet connections and training for the establishment of 128
Reference Centres. This includes the setting-up of an additional 11 Reference Centres over the past
year (see table below).  Under the WTO Annual Technical Assistance Plan for 2003,
39 equipment in
15 Reference Centres (of which 10 are in LDCs), will be upgraded.  A Reference Centre Help Desk is
also being maintained by the Secretariat to provide technical advice and support to the Reference
Centres via electronic mail and telephone.
Table 7 - Distribution of WTO Reference Centres in: Number
LDCs 43
LDC Embassies/Missions 3
Developing and Transition Economies 56
Regional and Sub-Regional Organizations 26
Total 128
                                                     
39 WT/COMTD/W/104/Rev.2.WT/COMTD/LDC/W/30
Page 15
44. The provision of internet access for LDC Reference Centres is among the specifically
designed activities for LDCs in the WTO Technical Assistance Plan.  A pilot project has been
initiated to provide reliable internet connectio n to Reference Centres in LDCs through Societé
Internationale de Telecommunications Aeronautiques (SITA).  The 2003 WTO Annual Technical
Assistance Plan extends the provision of an internet connection to 27 LDCs through SITA.
45. Over 3000 trade officials from least-developed and developing countries have received
training to access and use on-line WTO materials.  In this regard, a series of interactive information-
technology tools are being designed to assist bene ficiary countries.  The computer-based training
courses developed include CD ROMs on the Agr eement on Textiles and Clothing, Agreement on
Sanitary and Phytosanitary Measures, General Agreement on Trade in Services (GATS) and the
TRIPs Agreement.  Computer-based training courses on Customs Valuation and on the Dispute
Settlement mechanism are currently being produced for distribution in 2003.  The results of the
Uruguay Round are also available electronically on CD ROM.
46. Users of the WTO website,40 including those from LDCs have continued to access and benefit
from the information provided by the website.  The website offers the latest news, developments and
information on the rules and mechanisms of the global trading system, WTO Agreements,
international trade (including statistics), schedule of WTO meetings and WTO documents on-line.
There are currently 37,000 registered users and on average 550,000 visitors per month on the WTOwebsite, including those from LDCs.
47. In addition to the WTO website, the WTO Trade Information Centre, in cooperation with
other WTO divisions unveiled a new WTO Members website
41 on 1 May 2002.  The website contains
information and/or compilations of data that are not readily available on the WTO website.
Least-developed and developing country Members can also participate in a series of online forums ontrade and development which draw on the expertise of specialists at the World Bank and the WTO.
The Trade and Development Centre
42 for instance, seeks to highlight the role of developing and least-
developed countries in the WTO, and continues to attract a large number of users every month.
48. As mentioned in Section III.E, a new website43 for the Integrated Framework (IF) has been
launched by the World Bank on behalf of the six agencies.  The website provides information toLDCs and other users on the IF, including on its management, implementation and the IF Trust Fund.
49. In collaboration with the OECD, the WTO has established the Doha Development Agenda
Trade-Related Technical Assistance and Capacity Building Database (TCBDB) which can be
accessed online.
44  The database has been developed as a tool to supplement the information contained
in the WTO Annual Technical Assistance Plans by  focussing also on the technical assistance and
capacity building provided by other agencies/donors in the context of the DDA negotiations.  The
database provides information on national and regional trade-related technical assistance and capacity
building projects.  Data is reported by bilateral donors and multilateral/regional agencies.  At present,
the period of coverage is 2001 - 2002.  The database has been useful and effective in monitoring the
implementation of the technical cooperation and capacity building commitments in the Doha
Declaration by indicating activities delivered.  Synergies among donors and where possible
coordination in the delivery of assistance has also been facilitated.
50. Data and software tools have been developed to assist least-developed and developing
countries in the negotiations.  A Toolkit for negotiators has been designed by the WTO in
                                                     
40 http://www.wto.org.
41 http://members.wto.org/.
42 http://www.itd.org/.
43 http://www.integratedframework.org/.
44 http://tcbdb.wto.org/index.asp.WT/COMTD/LDC/W/30
Page 16
collaboration with other organisations.  Data for the tariff negotiations is available in the WTO
Integrated Database (IDB) and Consolidated Tariff Schedules (CTS) Database.45  In April 2002, the
Internet Analysis Facility (IAF) software was developed to assist Members in market access
negotiations.  An IAF prototype is currently operational on IDB data and is continuously updated.
Least-developed and developing country Members and Observers have free access to WTO software
and data as defined in the IDB/CTS dissemination policy.46  These information technology tools have
assisted LDCs to participate more effectively in the market access negotiations.
D. THE INTEGRATED FRAMEWORK FOR TRADE -RELATED TECHNICAL ASSISTANCE IN LDC S
51. The Integrated Framework (IF) was originally launched by six core agencies (i.e. IMF, ITC,
UNCTAD, UNDP, World Bank and WTO) at the High Level Meeting on Integrated Initiatives for
Least-Developed Countries' Trade Development in October 1997.47  The objective was to increase the
benefits that LDCs would derive from the trade-related technical assistance available to them.  These
benefits would accrue through better coordination and by creating synergies and avoiding overlap,
among the IF core agencies as well as from the LDCs' other (bilateral and multilateral) development
partners. Assistance was to be delivered in response to LDC's Needs Assessments.
52. The IF sought to assist the LDCs in enhancing their trade opportunities, to respond to market
demand and to integrate them into the multilateral trading system.  In the first three years of its
operation, the IF made modest contributions to meet the original objectives established at the 1997
High Level Meeting.  The Framework was reviewed in 2000 and was subsequently reshaped.  The
"revamped" IF is being implemented initially on a pilot basis.  The two objectives of the redesigned
IF are: (i) the use of the IF as a mechanism to "mainstream" (integrate) trade into the nationaldevelopment plans or poverty reduction strategies of least-developed countries;  and, (ii) the use of
the IF as a mechanism to assist in the coordinated delivery of trade-related technical assistance in
response to the needs identified by the LDCs.
53. For trade  to be an engine for economic growth,  trade policy should be appropriately factored
into the overall national planning and development policy framework.  Furthermore the integration oftrade ("mainstreaming") into the overall development and poverty reduction strategy needs to be
rooted, not only at the policy level, but also at the levels of government institutions and of the
government-donor partnership, in order to maximise the use of available resources for trade.
Principally through such instruments as the Pove rty Reduction Strategy Papers (PRSPs), or other
national Development Plans, the IF seeks to ensure country ownership, partnership, and coordination.While the WTO (Development Division) is the Coordinator of the IF, the World Bank is the lead
agency to coordinate efforts of the beneficiary LD Cs in mainstreaming work, with the support of the
other core agencies.
54. The revamped IF defines three broad steps for mainstreaming, and subsequent presentation by
the LDC of its prioritized list of trade-related sectors in need of assistance to its development partners.
First,  a diagnostic trade integration study (DTIS) is prepared for each country.  The DTIS assesses the
competitiveness of the economy and identifies the im pediments to the effective integration into the
                                                     
45 The IDB, based on Members' notifications, contains MFN applied and bound duties, import statistics
and other reference information.  The CTS includes final bound duties and other information such as
implementation periods, initial negotiating rights etc.  The IDB is available to Members on CD ROM.
46 G/MA/115.
47 WT/LDC/HL/1/Rev.1WT/COMTD/LDC/W/30
Page 17
multilateral trading system and the global economy.48  Second,  based on the finding of the study, an
Action Matrix is developed, in consultation with all stakeholders at a national IF Workshop.  The
Action Matrix spells out a set of policy recommendations and priority technical assistance needs to
overcome the constraints identified in the study.  These technical assistance needs  may cover a wide
range of activities such as: human and institutional capacity building, customs modernization,
assistance for investment promotion activities, sectoral studies/assistance on export potential andcompetitiveness, trade negotiations capacity building, assistance on standards and quality control for
exports, improvements in the judicial system etc.  Lastly,  the trade policy priorities are incorporated
into the  national Development Plan such as the PRSPs and the priority technical assistance needs are
fed into donors' financing fora, such as the Consultative Groups (CGs) or UNDP Round Tables or
ad-hoc  IF-related donor conferences, which provide the LDC with the platform to present its trade-
related technical assistance needs to its development partners.
55. The implementation of the revamped IF began in May 2001, with a Pilot phase in three
countries - Cambodia, Madagascar and Mauritania – and was extended to eleven LDCs before the
Doha Ministerial Conference (Burundi, Djibouti, Eritrea, Ethiopia, Guinea, Lesotho, Mali, Malawi,
Nepal, Senegal and Yemen).  In addition, implementation of follow-up activities to the IF Round
Table Meetings held under the "old IF" scheme in five countries is on-going: Bangladesh, the
Gambia, Haiti, Tanzania and Uganda. Heads of Agency at their meeting in February 2001, had notedthat additional IF DTIS would be preceded by a thorough evaluation of the IF.  Accordingly, a
decision on the extension of the IF has been deferred and will be taken within the context of the
evaluation of the IF.  The second evaluation of the IF will take place in 2003.
56. In 2002, of the fourteen LDCs to which the "revamped" IF has been extended, pilot DTIS
studies were completed for Cambodia, Lesotho, Madagascar, Malawi, Mauritania, Senegal andYemen and initiated for Burundi, Djibouti, Ethiopia, Guinea, Mali and Nepal.  Completion workshops
with LDCs development partners have been held in Cambodia, Mauritania, Lesotho and Senegal.
57. The main findings from the DTIS's for Cambodia, Mauritania, Senegal and Lesotho 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 capacitybuilding; to address physical supply-side constraints; legal reform; human and institutional capacity
building; trade negotiations capacity building; support to the private sector such as enhancement of
production and export capacity in specific sectors; and market access with reduction of trade
restrictions in trading partners.
58. As mentioned in Section III.G, the WTO is programming its Trade Policy Reviews for LDCs
more closely with the DTIS exercise.  The WTO Trade Policies Review Division also provides input
into the DTIS chapters on trade policy.
59. The IF is built on the principles of countr y ownership and partnership amongst agencies,
donors and beneficiaries.  The management structure of the IF reflects this tripartite structure and
includes the Integrated Framework Working Group (I FWG), which is responsible for the day-to-day
management of the IF.  The IFWG is chaired by the WTO and consists of representatives of the six
agencies and two representatives each from LDCs and the donor community.  The Integrated
                                                     
48 The DTIS typically includes a number of components.  These are review and analysis of the
country's economic and export performance, an assessment of the international policy environment, analysis of
key labour-intensive sectors for expansion and a conclusion with r ecommendations for policy reforms and
action plans.   Specific terms of reference for the DTIS are developed for each country on the basis of the five
generic components in consultation with the Government co ncerned.  The Government is  expected to establish a
national Steering Committee to 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 criticalin instilling a degree of ownership, and the sustainability of the IF process, which in itself is a long-termcapacity-building exercise.WT/COMTD/LDC/W/30
Page 18
Framework Steering Committee (IFSC) was established to provide overall policy oversight and
guidance and to improve transparency in the operations of the IF.  The IFSC is a tripartite
arrangement  and consists of representation by the six agencies, donors and LDCs.  In practice all
WTO Members and Observers are invited to attend IFSC meetings.  The IFSC is independent of
WTO bodies.  The WTO, which houses the IF Secretariat, services both the IFWG and the IFSC.
60. The IF has a Trust Fund, established in March 2001, through voluntary contributions from
multilateral and bilateral donors.  The Fund finances the preparation of the DTIS and some follow-up
activities from the studies.  Consultations on this la tter function are on-going with a view to clarifying
its Terms of Reference.  As of 10 March 2003, total pledges to the IF Trust Fund amount to
US$ 11.8 million.  The UNDP is the manager of the IF Trust Fund.
61. As mentioned in Section III.D, a new web-s ite for the Integrated Framework has been
developed and is managed by the World Bank for the six agencies (www.integratedframework.org).
E. PARTICIPATION OF DEVELOPING AND LEAST -DEVELOPED COUNTRIES IN INTERNATIONAL
STANDARD SETTING BODIES
62. For LDCs to effectively participate in the multilateral trading system, conformity with WTO
rules in the areas of food safety, standards and technical regulations is important.  The WTO
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 fromdeveloping and least-developed countries and at the same time encourage the use of internationally
developed standards as the safety/quality reference for world trade.
63.  Developing and least-developed countries have expressed concern on their difficulties in
participating in the work of international standard  setting bodies which as a result limits their ability
to influence standards in products of interest to them.  In many of these countries, the limitedparticipation in international standard setting bodies can be attributed to several factors such as: lack
of awareness among government authorities and industry; limited infrastructure and expertise for
active participation, particularly in technical committees; and financial constraints.
64. Efforts have been made by the WTO Membership to enhance the participation of developing
and least-developed countries in the work of the relevant international standard setting organizations.At the Special Session of the General Council in October 2000,
 49 Members agreed to work on
specific elements, one of which was to encourage 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 in their work.  The Director-General has
periodically reported to Members on the steps taken.50  At the Fourth Ministerial Conference,
Ministers took note of the actions taken and urged the "Director-General to continue his cooperation
efforts with these organizations and institutions … wi th a view to according priority to the effective
participation of LDCs and facilitating the provision of technical and financial assistance for this
purpose".51  The Director-General of the WTO, the FAO, the OIE, the WHO and the President of the
World Bank also issued a joint statement reaffi rming their commitment to enhance the capacity of
developing countries to participate in the development and application of international standards.52  In
parallel, an inter-agency forum was establishe d to give operational meaning to the renewed
commitment to coordination among these organizations.
                                                     
49 WT/GC/M/59.
50 WT/GC/42, WT/GC/45, WT/GC/46/Rev.1 and WT/GC/54.
51 Paragraphs 3.5 and 5.3 of WT/MIN(01)/17.
52 WT/MIN(01)/ST/97.WT/COMTD/LDC/W/30
Page 19
65. The WTO has a close working relationship with standard-setting organizations and
institutions.  In the SPS area, it works closely with the FAO/WHO Codex Alimentarius Commission,
the FAO Interim Commission for Phytosanitary Meas ures (ICPM), and the Office International des
Epizooties (OIE).  In the TBT area it works with relevant organizations such as International
Standardization Organization (ISO), Internatio nal Electrotechnical Commission (IEC), and the
International Telecommunications Union (ITU).  In addition to collaboration with standard settingbodies, the WTO also coordinates with the ITC, UNDP, UNIDO, WHO, World Bank and other
international or regional organizations to organise training and technical assistance activities to
address the needs of LDCs with respect to food safety, standards and technical regulations.
66. The WTO continues to deliver technical assistance in the SPS and TBT area.  In the 2002
Technical Assistance Plan, 43 activities were organised on SPS and TBT issues.  Six regional
workshops were also held, four in cooperation with ISO, one in cooperation with Codex and one in
cooperation with both ISO and IEC.  Of the 17 TBT related activities planned in the 2003 Plan, threeare regional workshops on enhancing the participation of developing and least-developed countries in
standard setting activities. In 2003, there are also 19 activities on SPS issues.
67. In August 2002, the WTO with the WHO, FAO, OIE, the Codex Alimentarius, and the World
Bank, initiated the Standards and Trade Development Facility, a programme to enhance the capacity
of developing and least-developed countries to participate in standard-setting negotiations and toimplement existing standards.  The Facility aims  to increase beneficiary countries participation
through capacity building and the provision of technical assistance in the development and
application of standards and regulations for food safety, animal and plant health.
68. In June 2002, the FAO and WHO agreed to establish the Codex Trust Fund for the
Participation of Developing Countries and Countries in Transition in the work of the CodexAlimentarius Commission.  The Trust Fund seeks to help beneficiary countries enhance their level of
participation in the development of global food safety and quality standards by the Codex
Alimentarius Commission.  The FAO and WHO have also continued to provide ad-hoc  funding to
facilitate the participation of developing country officials in Codex meetings and have extended the
practice of funding developing country experts to the Joint Advisory bodies which scientificallyexamine and make recommendations for Codex standards.
69. The OIE continues to ensure the participation of all members in its annual general session.  In
addition, OIE has increased its funding for developing country experts in meetings of specialized
bodies involved in the preparation of draft standards for adoption at the general session.  Regarding
the development of standards for plant protection, the ICPM has increasingly drawn on FAO funds toensure the participation of developing country experts in both the annual meeting and in the working
group meetings which develop proposals for standards.
70. At the second Triennial Review of the Agreement on TBT, a questionnaire to assist
developing countries in needs identification was developed by the Committee.
53  Responses have been
received from 53 developing country Members, of which eight are LDCs.54  At the request of
Members, the Secretariat carried out an analysis of the priorities identified in the needs identification
questionnaire.  The lack of both financial and human resources to participate in TBT Committeesessions,
55 and meetings of other relevant international organizations was considered a common
problem faced by developing and least-developed countries.  Twenty-nine (29) per cent of the
responses indicated the need for assistance to partic ipate in the work of international standard-setting
                                                     
53 G/TBT/W/178.
54 lG/TBT/W/178, 186 and Add.1, G/TBT/W/193, JOB(02)/99 and Add.1-52.
55 In a related action, the United States and Canada have provided funds to the Inter-American Institute
for Agricultural Cooperation (IICA) to cover the costs of participation for two officials from each of IICA's 34member countries to three consecutive meetings of the SPS Committee.WT/COMTD/LDC/W/30
Page 20
activities.  The responses also revealed that a structured approach to technical assistance programmes
was needed.  Although many of the needs identified by respondents were similar, their solutions
needed to be country-specific because of the different particular circumstances and capacities of
developing and least-developed countries.
71. With regard to participation of developing countries in the setting of technical regulations and
standards, the experience of developing and least-developed countries in standard-setting bodies likethe ISO has been mixed.  While participation in the governance of ISO and in the policy development
committees is satisfactory, participation of developing and least-developed countries in the technical
work of standard-setting can be improved.  The need for increased participation of developing
countries in ISO standards development has been recognized by the ISO Technical Management
Board which has established a task force, to address this issue.
72. Initiatives have been taken to improve the situation such as the DEVCO, which plans and
monitors the ISO Programme for Developing C ountries and provides training, publications,
sponsorships/fellowships seminars, and other activities to enhance developing country participation in
ISO's activities.  Other projects, such as the launching of an ITC/Commonwealth Secretariat project
in 2001, to determine technical assistance needs in the areas of technical regulations, and sanitary and
phytosanitary measures have also assisted some developing countries, with case studies carried out in
six countries.  Developing country compliance with international standards also continues to be on theWHO's agenda with a view to strengthening national regulatory capacity in the areas of drugs,
vaccines and plasma derivatives.  In response to  requests from developing countries, UNIDO too has
developed, an integrated programme approach to technical assistance in accreditation, certification,
standardisation and metrology.  The International Organization of Legal Metrology (OIML)
Development Council also meets every year to discuss development matters, to identify fields ofspecial concern to developing countries and possible technical assistance activities and training
programmes provided by OIML and other organizations.
73. In its efforts to enhance developing and least-developed countries participation in
international standard-setting bodies, the WTO in collaboration with standard-setting bodies has and
continues to organise back-to-back meetings of  the relevant committees; joint regional/national
workshops and seminars, often in the margins of each other's meetings;  and referrals from the SPS
Committee of issues for consideration by the standard-setting bodies.  The relevant organizations have
also been invited on a regular basis to the TBT Committee to update Members on their technical
assistance activities and the steps taken to enhance the participation of developing and least-developed
countries in their activities.  This has strengthened the commitment of these organisations to takepositive measures in this regard.
F. L
EAST -DEVELOPED COUNTRIES ' TRADE POLICY REVIEWS
74. In light of recommendations at the High Level Meeting in October 1997,56 and the 1999
appraisal of the Trade Policy Review Mechanism (TPRM),57 there has been a focus on completing the
Trade Policy Reviews (TPRs) of LDCs on a priority basis.  The TPRs for LDCs have increasingly
also had a technical cooperation and capacity building component in them.
75. The increased importance given to the TPRs of LDCs has led to 17 reviews since 1998.  From
April 2002 – end April 2003, TPRs were carried out for Burundi, Lesotho (in the context of the
SACU review), Malawi, Mauritania and Zambia resp ectively. In addition all preparations were made
                                                     
56 The Report of the High-Level Meeting is contained in WT/LDC/HL/23. The Meeting recommended
that the WTO accommodate requests from LDCs for Trade Policy Reviews (TPRs) on a priority basis and assist
LDCs in preparing for their reviews.
57 WT/MIN(99)/2. Attention was drawn to the need fo r greater coverage of LDCs in the preparation of
the timetable of the Trade Policy Review Body (TPRB).WT/COMTD/LDC/W/30
Page 21
for the review of Haiti.  The LDCs scheduled to be reviewed in 2003 or shortly thereafter are:
Senegal, Niger and Haiti (see Table 8 below).
76. The periodic examination and peer reviews of national trade policies remains an important
function of the WTO.  The objectives of the Trade Policy Review Mechanism include increasing the
transparency and understanding of countries' trade policies and practises through regular monitoring;
improving the quality of public and intergovernmental debate on the issues; and enabling amultilateral assessment of the effects of policies on the world trading system.
T
ABLE 8 – T RADE POLICY REVIEWS OF LDC S
Completed (22) Bangladesh (twice), Benin, Burkina Faso, Burundi, Guinea,
Lesotho (twice), Madagascar, Malawi, Maldives, Mali,
Mauritania, Mozambique, Senegal, Solomon Islands,
Tanzania, Togo, Uganda (twice), and Zambia (twice)
Scheduled (3) Haiti, Niger and Senegal
77. The TPRs have also been performing a technical assistance role in LDCs and have been
useful in increasing the understanding of the trade policy structure in place and its relationship with
the WTO Agreements.  The preparations for the review process in LDCs, as in 2002, includes a
seminar on the WTO, the trade-policy review exercise, and the role of integrating trade in economic
policy ("mainstreaming").  Such seminars have been  held in 2002 in the context of the review process
for Burundi, Haïti, Lesotho, Malawi, Mauritania, Niger, Senegal and Zambia.58  Assistance is also
provided in the collection of information and th e setting up of an Inter-Ministerial WTO Committee.
The TPR contributes to the identification and pr ioritisation of capacity building needs, as the
Secretariat, in consultation with the LDC Member concerned, includes a section on technical
assistance in the TPR report.  As part of the WTO Technical Assistance Plan for 2003, there are
11 TPR related technical assistance activities/missions planned in LDCs.
78. In addition, the TPR exercise in LDCs contribu tes to the Integrated Framework (IF).  Each
LDCs' trade policy review process is a part of the broader IF "mainstreaming" exercise for the
Member involved.  The preparation of the TPRs of LDCs responds more systematically to the
technical assistance needs with a view to feedin g these findings into the IF process and national
development plans such as the Poverty Reduction Strategy Papers.  For instance, in Burundi, Lesotho,Malawi, Mauritania, and Senegal, preparation of the TPRs has fed into the IF process, in particular,
the drafting and preparation of the Diagnostic Trade Integration Studies (see also Section III.E).
79. In LDCs, the reviews have enhanced the understanding of the WTO Agreements, enabling
better compliance and integration into the multilatera l trading system.  The review process, apart from
contributing to trade policy formulation, also considers the economic impact of trade measures, andplaces individual Members' trade and economic regi mes within the wider context of developments in
their region.  With regional trade agreements beco ming increasingly important, the analysis in the
reports has proved to be useful in considering th e wider impact of recent economic developments in
certain regions, as well as considering the questio n of the impact of regionalism on the multilateral
trading system. The reviews also contribute to identifying needs and priorities in LDCs, enablingtechnical assistance to be targeted to those areas where it is most needed.  These efforts together with
                                                     
58 WT/TPR/122.WT/COMTD/LDC/W/30
Page 22
those by LDCs themselves, can lead to more effective trade regimes and contribute to LDCs'
integration into the world trading system.
IV. CONCLUSIONS
80. The marginal participation of LDCs in world trade continues to be a matter of serious
concern.  It poses a challenge that needs to be addressed by the global community and by the LDCs
themselves.  The WTO and the international community  can continue to play a positive role in the
integration of LDCs.  In this regard, WTO Ministers have reaffirmed their commitment to address the
problems faced by LDCs at their meetings in Marrakech, Singapore, Geneva and Doha.  Concrete
actions have been taken, including at the Thir d UN Conference on LDCs (LDC-III), in support of
LDCs development and poverty reduction efforts.  Steps have been taken to mainstream the trade-
related elements of LDC-III Programme of Action into the work of the WTO.59
81. The DDA negotiations and work programme presents a unique opportunity to address
development issues and the needs of LDCs in particular.  LDCs have grasped this opportunity and putforward their positions and proposals in several areas of interest to them.  Their increased
participation in the shaping of the global trade rules and architecture is a welcome development.
LDCs have started coordinating their negotiating positions as preparations intensify for Cancun.  The
WTO LDCs' Consultative Group has played an active role in this regard.  Bangladesh, the current co-
ordinator of LDCs is hosting the Second LDC Trade Ministers Meeting, to be held on 31 May –2 June 2003, in Dhaka.  The UNCTAD and WTO Secretariats have been invited to attend the
meeting.
82. The WTO Secretariat has supported LDCs in their efforts to integrate into the rules-based
multilateral trading system.  A number of the cap acity building initiatives to further the trade
integration of LDCs have already been highlighted.  The Director-General has placed priority andtaken steps to service the special needs of the least-developed countries through the creation of an
LDC Unit in the Secretariat. Addressing the margin alisation of LDCs however would require further
efforts on the part of the Membership as a whole.
83. Areas where there is scope for further improvements include: (a) Improving effective market
access for LDCs, in line with paragraph 42 of the Doha Ministerial Declaration and in the context ofongoing market access negotiations in goods and services;
 60 (b) Continued priority to LDCs in the
delivery of WTO training and technical assistance.  Additional activities for LDCs may also be
considered in the drafting of the WTO Annual Technical Assistance Plan for 2004;61 and (c) Sound
macroeconomic, trade and exchange rate policies in LDCs are required in enhancing their
participation in the multilateral trading system.
                                                     
59 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. As mandated in paragraph 42 of the Doha
Ministerial Declaration, the WTO Work Programme fo r LDCs adopted by Members, takes into account the
relevant trade-related elements of the Brussels Declaration and Programme of Action into the WTO's work.
60 In paragraph 42 of 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".
61 Additional activities may also be considered by bilateral donors, and other multilateral or regional
organizations that provide trade-related technical assistance to LDCs.WT/COMTD/LDC/W/30
Page 23
Addendum Table : LDCs Merchandise Trade by country, 1990-2002
Merchandise Trade (a) (b)     Merchandise trade per capita (b)   Exports growth (c)   Imports growth (c)
2002 2002 1990-2002 1990-2002
Least Developed Countries US$ billions US$ % %
 Afghanistan 0.73 27 -5 -2
 Angola 10.56 781 7 8 Bangladesh 14.13 106 13 8 Benin 1.02 159 2 7 Bhutan 0.30 357 5 7
 Burkina Faso 0.83 72 5 2
 Burundi 0.18 26 -6 -4 Cambodia 3.11 253 25 23 Cape Verde 0.26 576 5 6 Central African Republic 0.26 69 1 -1 Chad 0.72 90 0 7
 Comoros 0.11 186 -7 6
 Congo, Dem. Rep of 1.79 34 -8 -5 Djibouti 0.17 271 -5 -2 Equatorial Guinea 2.19 4670 35 19 Ethiopia 1.64 25 3 3 Gambia 0.23 167 -6 1
 Guinea 1.32 174 0 -1
 Guinea-Bissau 0.14 116 12 1 Haiti 1.32 162 6 11 Kiribati 0.07 752 18 6 Lao PDR 0.86 160 14 10 Lesotho 1.02 493 15 0
 Liberia 0.93 288 5 0
 Madagascar 1.96 122 9 8 Malawi 0.99 94 1 0 Maldives 0.47 1652 4 10 Mali 1.68 151 8 5 Mauritania 0.67 244 -4 1
 Mozambique 1.74 96 15 3
 Myanmar 4.92 102 19 20 Nepal 2.21 94 12 8 Niger 0.72 64 0 1 Rwanda 0.29 33 -4 -3 Samoa 0.14 790 4 3
 Sao Tome and Principe 0.03 176 -5 0
 Senegal 2.55 260 3 2 Sierra Leone 0.23 44 -13 2 Solomon Islands 0.13 291 -3 -3
 Somalia 0.29 32 -2 10
 Sudan 3.40 107 13 5
 Tanzania, United. Rep. of 2.39 70 8 3
 Togo 0.97 210 4 2 Uganda 2.07 92 7 18 Vanuatu 0.12 594 5 0 Yemen 6.01 337 17 3 Zambia 2.05 201 -3 2
Note: There are no data available for Eritrea and Tuvalu.
(a) Merchandise exports plus imports.
(b) Referring to the average over 2000-2002.
(c) Referring to the average growth rate between 1989-1991 and 2000-2002.
__________