RESTRICTEDWORLD TRADE
ORGANIZATIONWT/COMTD/LDC/M/28
26 June 2002
(02-3554)
Sub-Committee on Least-Developed Countries
Twenty-Eighth Session
NOTE ON THE MEETING OF 24 MAY 2002
Chair:  Ambassador Johan Molander (Sweden)
1. The outgoing chairman, Ambassador Simon Full er (United Kingdom) welcomed Members to
the Twenty-Eighth Session of the Sub-Committee and called the meeting to order. He recalled that at
the last session of the Committee on Trade and Development (COMTD) on 25 April 2002, Members
had elected Ambassador Molander (Sweden) as the new Chairman of the Sub-Committee. He thanked
Members of the Sub-Committee and the WTO Secretariat for the support provided to him. Over the
last year there had been  significant advances in market access for LDCs. There was also the re-vamp
of the Integrated Framework (IF). Several important issues for Members of the Sub-Committee wereaddressed.  These included at the trade segment of the LDC-III Conference in Brussels to which the
Sub-Committee had made significant contributions a nd to the ten-year Programme of Action adopted
at the conference.  The Sub-Committee on Least-Deve loped Countries also contributed inputs to the
Doha Ministerial Declaration. A WTO Work Programme for LDCs was adopted.
2. The Chairman thanked Members for his election as Chairman of the Sub-Committee on
Least-Developed Countries at the 40th Session of the COMTD, on 25 April 2002. He thanked
Ambassador Fuller (United Kingdom), the outgoing Chairman, for his stewardship and commitment
in moving forward the work of the Sub-Comm ittee. Under Ambassador Fuller's Chairmanship,
substantive outcomes and concrete results were achieved. These included most notably:
- the WTO "deliverables" at the Third UN Conference on LDCs (LDC-III)
held in May 2001;
- the consensus building that paved the way for the LDCs'-related paragraphs
in the Doha Ministerial Declaration, and;
- the adoption of the WTO Work Programme on LDCs on 12 February 2002.
3. He noted that Members of the Sub-Committee had expressed their appreciation to
Ambassador Fuller for his work over the past year. He counted on Members and the Secretariat's
collective support and guidance to facilitate progress in the Sub-Committee.
4. The representatives of European Communities, Mauritania , Senegal , Canada , Zambia ,
Guinea, Norway, Ethiopia,  Bangladesh , Denmark , Uganda as rotating coordinator of LDCs , India ,
Morocco, Australia,  Switzerland  and the United States  welcomed the appointment of the new
Chairman, and offered him support in the work ahead. They thanked the outgoing Chairman for his
role in the work of the Sub-Committee.
A. ADOPTION OF AGENDA
5. The Sub-Committee adopted the agenda for the meeting contained in WTO/AIR/1790 with
the proposed amendment to consider item B (v) as item B (ii) and to include under Other Business,WT/COMTD/LDC/M/28
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"prioritisation of the work of the Sub-Committee on Least-Developed Countries", proposed by the
European Communities.
B. WTO  WORK PROGRAMME FOR LEAST-DEVELOPED COUNTRIES
6. The Chairman  noted that the WTO Work Programme for LDCs, WT/COMTD/LDC/11, had
been adopted by the Sub-Committee on 12 February 2002, in accordance with the mandate contained
in paragraph 42 of the Doha Ministerial Declarat ion. Ambassador Fuller as Chairman of the Sub-
Committee had thereafter reported on the Work Programme at the meeting of the General Council
held on 13 February 2002. At the General Council, Members welcomed the Work Programme for
LDCs and underscored the importance they attached to its effective implementation. They noted that
the effective implementation of the WTO Work Programme would serve to further LDCs' integration
into the multilateral trading system and would underscore the WTO's commitment to supporting
LDCs' efforts to accelerate their trade development.  Also, as agreed to in the Work Programme, the
Director-General would make an interim report to the General Council at its last meeting in 2002,
currently scheduled for 10-11 December 2002. While the Sub-Committee would closely monitor
developments and the implementation of the Work Programme, it was recognized that the Work
Programme for LDCs adopted was not simply a work programme for the Sub-Committee; but was aLDCs' work programme for the entire WTO. Some elements, for example on technical assistance and
capacity building, called for coordinated action and work in cooperation with other agencies and
organizations, such as that underway in the Inte grated Framework Pilot Scheme. The Chairman said
that he intended to draw attention to each of the main systemic issues listed in the work programme.
He proposed to set a road map for its effective implementation, indicating where relevant possibleactions and timeframes for actions would be taken, in a planned and properly sequenced manner.
7. The Sub-Committee on Least-Developed Countries  considered, as on the agreed agenda, the
main elements for the LDCs' Work Programme.
(i) Trade-Related Technical Assistance and Capacity Building Initiatives for LDCs: Integrated
Framework (IF) Status Report
8. The Chairman introduced the first element on Trade-Related Technical Assistance and
Capacity Building Initiatives for the LDCs, which focused on the Integrated Framework.  He  recalled
that Ministers in the Doha Declaration had accorded emphasis to technical cooperation and priority to
the delivery of technical assistance to LDCs. Im plementation of the Doha mandate on trade-related
technical assistance and capacity building was ongoing. The Committee on Trade and Development
(COMTD) had at its meetings been regularly monitoring technical cooperation and the
implementation of the WTO Annual Technical Assistance Plan for 2002. In the annual plan, Membershad recognized the important role of technical assistance in areas of agreed negotiations in Doha. For
the effective implementation of  technical assistance commitments in the WTO Work Programme for
LDCs, work in the COMTD as well as that curr ently underway under the Integrated Framework (IF),
was of relevance. The Sub-Committee would  continue its work in this regard.  He emphasized the
need for coordinated actions by all stakeholders namely agencies, donors and participating countries.He said that coordination in the delivery of trade-related technical assistance and capacity building
had begun successfully with the implementation of the IF Pilot Scheme.
9. He drew attention to the 26 February 2002, Joint Communique from the IF Heads of Agency
(WT/IFSC/1). The Communique set out some important elements and possible follow-up actions,
such as the extension of the Pilot Scheme and the idea of identifying "lead donors" for the individualbeneficiary countries under the IF scheme. Members were briefed on the outcome of the Second IF
Heads of Agency meeting by the WTO Secretariat, at the IF Steering Committee, in March 2002. The
Sub-Committee was informed that the Director-General had also briefed the General Council on 14WT/COMTD/LDC/M/28
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May 2002. The Chairman requested Ambassador Iversen (Denmark), as Chairman of the IF Steering
Committee (IFSC) to report on the recent work and developments in the IF Steering Committee.
10. Ambassador Iversen (Denmark), as Chairman of the IFSC reported on the last IFSC meeting
held on 8 March 2002, and noted that the meeting had been productive, with action taken or agreed in
a number of areas in relation to the implementation of the IF Pilot Scheme. The IFSC had recognisedthe successes of the first phase of the IF Pilot Scheme in Cambodia, Madagascar, and Mauritania. The
Diagnostic Trade Integration Studies (DTIS),  which had been prepared, under the leadership of the
World Bank, were acknowledged as useful. Concrete progress was being made in ensuring follow-up
to the technical assistance and capacity building need s identified in the studies. It was agreed at the
IFSC, that the main responsibility of coordinating  effective practical follow-up, following the logic of
mainstreaming trade into development plans, rested with the beneficiary countries. Bilateral donors
and agencies agreed to identify "lead donors" to assi st governments in coordinating follow-up to the
DTIS.  The designation of lead donors was a step that would fill one of the missing links that had
hampered concrete responses under the old IF. At  the multilateral level, most agencies had been able
to identify the areas to which they could respond. Follow-up had begun as the multilateral agencies
had placed on record the responses they envisioned. At its meeting of 7-8 March 2002, the Inter-
Agency Working Group (IAWG) had approved the first disbursement of funds from the IF Trust Fundto initiate follow-up in Cambodia.  Some agencies had also undertaken specific projects financed from
their own budgets.  Since in a number of areas  of capacity building, follow-up needed to be
coordinated to generate maximum benefits, agencies were also consulting amongst themselves
regarding the implementation of follow-up activities.
11. Ambassador Iversen reported that representatives in Geneva, since the last IFSC, had held
meetings to discuss in detail how such follow-up could be coordinated. The challenge was to achieve
coordination in agency responses, which would be an important task of the IAWG. Ambassador
Iversen as Chairman of the IFSC summarized the di scussions relating to follow-up in the pilot project
countries. The summary was endorsed by the IFSC, and was contained in document WT/IFSC/W/10.
Another item on the agenda of the IFSC concerned follow-up in the 5 LDCs that had held roundtables
under the old IF.  The IFSC was given a status report by the ITC on progress made. The ITC's status
report had been issued as document WT/IFSC/W/8/Add.6.
12. He recalled that the decision to extend the pilot phase of the IF was taken in September 2001
on the basis of agreed criteria. The next wave of IF countries were: Burundi, Djibouti, Eritrea,
Ethiopia, Guinea, Lesotho, Mali, Malawi, Nepal, Senegal, and Yemen. The World Bank was the lead
agency in the preparation of the DTIS. The Bank had prepared a calendar of extension, which also
contained a timetable of action in these countries (WT/IFSC/W/11).  On the financial status of the IFTrust Fund, the UNDP had submitted a status report, which was contained in WT/IFSC/W/7/Add1.
The report showed that pledges amounted to 9.2 million US Dollars.  Since then, further pledges had
increased the overall total to US Dollars 10.2 million.  He encouraged donors to disburse funds in a
timely manner so as to facilitate the smooth implementation and extension of the IF programme. The
core agencies supported the further extension of the IF, that was to be preceded by a thorough reviewby the IFSC.  They had also agreed to act swiftly to extend the benefits of the IF to as many LDCs as
possible by the conclusion of the Doha negotiations. He noted that clear criteria had been established
for the extension of the IF to countries participating in the process, and these criteria would govern
any future extension. He concluded his report by stating that good progress had been made and that
the next meeting of the IFSC was scheduled on 12 July 2002.
13. The representative of the United States requested that the statement by Ambassador Iversen
be made available to delegates.
14.  The representative of Mauritania thanked Ambassador Iversen for his report and constant
efforts that had  advanced work in the IFSC. There was mention of the success of the first phase of the
Pilot Scheme that was agreed  by all parties. Following the first phase, there was now an urgent needWT/COMTD/LDC/M/28
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to move to the second stage of the pilot scheme namely the concrete and effective implementation of
the technical assistance projects that had been identified. As follow-up, Mauritania had submitted
specific programmes to the IFSC meeting, at its meeting on 8 March 2002. He hoped that the
decision-making process in the IAWG would be speed ed up so that the financing  required as in the
case of Cambodia could be made available to Mauritania as soon as possible. He said that inparagraph 2 of WT/IFSC/W/10 it was mentioned th at Mauritania and Cambodia had organized Round
Tables. However, the meetings held were sectoral consultations on trade, organized in June 2001 in
Mauritania and another consultation was organized alongside the advisory group in Paris. Since the
Agencies had taken a decision on the IF in 2001, the Round Table process had been somewhat
modified but these sectoral consultations were still on the same line and were to mobilize and increase
awareness of the need for resources.
15. The representative of Senegal said that follow-up activities to the first phase of the Pilot
Scheme were important. The presentations by the representatives of Cambodia, Madagascar and
Mauritania at the IFSC meeting in March had suggested a strong interest in moving to the second
phase namely the implementation of the prioritised projects identified. The LDCs that were to benefit
from the extension of the IF saw it as a strong and encouraging signal. His delegation would work to
ensure the success of the IF. He recognized that activities were underway, and Senegal had receivedrepresentatives of the World Bank on a number of occasions. Prior studies had been conducted. There
was however a need to move on. This was important in the context of capacity building and the
origins and objective of the IF. Over and above the trade-related technical assistance received to date
in terms of training for negotiations there was a need for further assistance in terms of institutional
and material infrastructure for trade. This was a shared objective without which the importance of theIF for LDCs would not be fully realized.  In the WTO Technical Assistance plan, there were many
Seminars, workshops and training activities, which were required but there was need to move further
to set up the institutional and material infrastructure for trade. Bilateral and multilateral donors were
aware of this and he urged them to take this into account in the pilot scheme.
16. The representative of Canada said that the IF was working with the efforts of the agencies and
beneficiary countries that had engaged actively over the past year since the new, revised programme
was put in place.  In the course of the past year, 3 studies had been completed, 5 additional countries
had engaged in follow-up to their Round Tables, and 4 more studies were underway. This implied that
25 percent of all LDCs had currently some activity underway. Seven other studies were already
planned and would begin shortly. This was remarkable given that the revised programme had only
really begun in May 2001. She thanked the core agencies for their work.
17. The Ambassador of Zambia said that the IF had become more or less synonymous with the
Doha Development Agenda. His delegation was anxious  to see its extension to cover as many LDCs
as possible. Zambia stated that it would like to join the programme and would be expressing this in
writing shortly.
18. The representative of the European Communities supported the statement made by Canada.
As mentioned by Ambassador Iversen among others , the IF was in a phase where the follow-up was
central and that the success of the programme would hinge on getting the national implementation
structures right and operational. This issue was being examined as well as the questions of "lead
donors" to ensure that the appropriate structures were set up and financed.
19. The representative of Guinea thanked the Chairman of the IFSC for his report and said that
her delegation was pleased to be a part of the Pilot Scheme. The World Bank led delegation was
expected to start up the IF process in Conakry. In order to facilitate the extension of the programme,
Guinea counted on the cooperation of all partners so that the technical assistance connected with the
IF would be realized in the spirit of the Doha Decl aration. She said that the progress made in the first
phase of the pilot scheme in Cambodia, Madagascar and Mauritania would be realized and that
conclusions would be drawn for the LDCs benefitting from the second phase of the pilot programme.WT/COMTD/LDC/M/28
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20. The representative of Norway lent support to the comments that had been made by Mauritania
and Senegal on the importance of immediate follow-up. In  this respect there was need to prioritize the
work related to identification of lead donors. His delegation was of the view that the lead donor could
also include multilateral organizations. Donor countries through their embassies in the beneficiary
countries could contact the UNDP and the World Bank concerning this question. However, he saidthat the final word on lead donor identification rested with the beneficiary country government itself
to ensure genuine ownership of the process.
21. The representative of the United States stressed the importance of concrete results in the
follow-up to the Diagnostic Studies that were underway or nearing completion. This was important
for the interim report to be prepared at the end of the year. The United States urged the expansion of
the IF process to the next group of LDCs as soon as possible. He was encouraged by the strong
interest expressed by some delegations to participate in the process. His delegation was prepared tomake its contribution through bilateral programmes to help meet the identified trade-related assistance
needs as well as to work with multilateral agencies and bilateral donors in the process.
22. The representative of Ethiopia thanked the Chairman of the IFSC for his report and the World
Bank for the work schedule that had been prepared following the previous meeting of the Steering
Committee. He sought clarification from the Bank on the exact time schedule to deliver technicalassistance to Ethiopia. The document WT/IFSC/W/11 had stated that these dates were "to be
determined".
23. The representative of Bangladesh said that the Diagnostic Trade Integration Studies were
useful but success in these studies was not enough to ensure concrete results. As stated by the
Director-General on 13 May 2002 the effective follow-up to the diagnostic studies was needed toensure the sustainability of the IF process. Research results from the diagnostics had to translate into
operational activities for LDCs. He hoped this aspect of the IF would be taken into account. The
demand for assistance was immediate and its provision would facilitate the faster integration of LDCs
into the multilateral trading system.
24. The representative of the World Bank in response to the query from Ethiopia said that World
Bank economists had made some contacts with th e Ethiopian government in January and that a
mission chief had been identified to do the trade-diagnostic study. They were in the process of
finalizing dates in the coming months. He said that the Bank shared the sense of urgency expressed by
the representative of Ethiopia and remained available to provide further clarification on the matter.
25. Ambassador Iversen (Denmark) as Chairman IFSC said that the comments made were in line
with his reflections on the IF process. The results and goals achieved over the first year had been
reflected in the statement by Canada.  He was aware of the crucial importance of follow-up in thesecond phase.  This would also be one of the key issues at the next IFSC meeting scheduled on 12
July 2002. Bilateral donors, multilateral agencies and the recipient countries themselves were aware
that the real success of the work would be achieved if reasonable coordination and follow-up could be
secured. This would allow for programmes that could have some impact on LDCs capabilities to
participate in the on-going negotiations. He appealed to all parties and the agencies for their assistance
to achieve these results.
26. The Chairman thanked Ambassador Iversen for his report that had highlighted some of the
recent developments in the implementation of the IF Pilot Scheme. Copies of his statement were made
available to Members. He invited Mr. Chiedu Osakwe, in his capacity as Chair of the IAWG to
provide some additional information, including a briefing on the new IF web-site that had beenlaunched on the margins of the OECD Ministeria l Meeting to further improve information flows.
27. Mr Chiedu Osakwe, Director, WTO Technical Coop eration Division in his capacity as Chair
of the IAWG said that his report on the implementation of the Pilot Scheme was  a supplement to theWT/COMTD/LDC/M/28
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statement that had been made by the Chairman of the IFSC. Before presenting the new IF web-site
(http:/if.wto.org) he commented briefly on the recent IAWG decision-making, follow-up to the
diagnostics trade integration studies (DTIS), and the extension of the IF. Mauritania had spoken of
accelerating decision-making in the IAWG. He said that there was no problem or difficulty in
decision-making. The IF was a complex process that was working well. Agencies had builtconfidence in the working procedures over the past 18 months. While understanding the need for
speed and some degree of urgency, he said that it was also recognized that the IF was a process of
interdependent decision-making, with  beneficiary countries, core agencies and donors involved. It
had therefore run at its own speed. With regard to effective action to be taken on follow-up to the
DTIS, he said that it needed to be LDC beneficiary country-driven. As mentioned by the EC, after the
DTIS had been completed, national structures for implementation needed to be set up. The core
agencies had noted the progress made in this regard in Cambodia and Mauritania. In Madagascar thedomestic civil situation  was a challenge. In Cambodia, the benefits of the beneficiary country being
in the driver seat had been evident.  Cambodia had used the IF as a mechanism for putting trade in
their development plans. Cambodia had made a presentation at the Monterrey Summit on Financing
for Development.  A specific session on the IF had also been designated at the next World Bank
Country Consultative Group (CG) meeting to be held in the third week of June in Cambodia.  Further
reports on this session would be made available.
28. For effective follow-up, he noted that several ingredients were necessary.  First, a coordinated
response from the six core agencies was needed. The agencies had been working on this. He referred
to paragraph 5 of the Joint Communique (WT/IFSC/1) that designated the World Bank and the UNDP
to consult with the local authorities and lead donors in this regard. Second, the identification of leaddonors and the roles of such lead donors would be key to effective follow-up action. This would not
imply "donors of last resort". He reconfirmed that  following the last IFSC meeting, donors had met
this challenge of identifying lead donors, which th ey would announce in the near future. He said that
there had mostly been a focus on technical assistance in the discussions of the effective follow-up to
the DTIS. In the revamped IF there was a clear understanding among all the stakeholders that prioritytechnical assistance recommendations was not the only component for follow-up. There was also
follow up on the domestic policy reforms that needed to be undertaken. A lot of technical assistance
to be delivered would need to be coupled with domestic policy reform for it to be better absorbed. In
response to the emphasis placed on the extension of the IF beyond the 11 + 3 LDCs, he noted that the
agencies in paragraph 7 of the Joint Communique (WT/IFSC/1) had agreed to extend the IF to as
many LDCs, as possible, before the conclusion of the Doha Round on 1 January 2005. This extension
would take place on the basis of agreed criteria.
29. Mr. Osakwe informed the Sub-Committee on Least-Developed Countries that senior
management had received Ambassador Chowdhu ry appointed as the new UN High Level
Representative (at Under Secretary General Level) with responsibility for the LDCs. Ambassador
Chowdhury had laid out the agenda for future work and had requested WTO Secretariat support for
the reports he would be presenting to the General Assembly on an annual basis, and at the High LevelSegments of the ECOSOC that would be dedicated to LDC issues.  Senior management had extended
him support and indicated that he would also be regularly invited to the WTO for those activities that
focussed specifically on LDCs. Also, following a meeting of the Director-General with six Regional
Development Banks (RDBs) in May, agreement had been secured that the RDBs would be associated
with the implementation of the results of the IF diagnostics.
30. Mr. Osakwe presented the new IF web-site that was still work in progress and that had been
developed in response to requests from Members. The web-site was simple in its design. It featured
sections on the IF at a glance, IAWG, IFSC, Documents, Calendar of Meetings etc. The web-site
would be updated on a regular basis. He encouraged Members to visit the site and provide feedback
and comments for its improvement. The Internet address was (http:/if.wto.org).WT/COMTD/LDC/M/28
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31. The representative of UNIDO said that the progress achieved was welcome. LDCs and
agencies had given importance to follow-up to th e diagnostic studies. Actions for capacity-building
had been stressed as well as the need for inter-agency coordination and coordination with the donor
countries. UNIDO was not a member of the IAWG but it had many activities in LDCs to strengthen
their institutional capacities and to facilitate trade. Programmes were developed to strengthenenterprises and to meet standards/quality/certification requirements. Projects were also developed at
the regional or sub-regional level. He mentioned a programme underway in the 8 COMESA countries
in this regard. This project had been funded with the assistance of the EC and was being delivered
with a view to strengthening cap acities in the region. Within the IF, for instance in Senegal and
Burundi, UNIDO in cooperation with the donors remained available to further assist beneficiary
countries.
32. The Chairman thanked the Chairmen IFSC and IAWG for their reports. He recalled that the
Sub-Committee had been instructed in the WTO Work Programme for LDCs, to report annually to the
COMTD on its monitoring and review of technical a ssistance, including, in particular, the IF Pilot
Scheme. The substantive discussions and briefing on the implementation of the IF in the Sub-
Committee would be an element of the end-of-the y ear report to be compiled and considered in the
COMTD. He proposed that the Sub-Committee take note of the statements and reports made.
33. It was so agreed.
(ii) Enhancing the Participation of LDCs in the Multilateral Trading System
34. The Chairman said that work in the WTO had to be responsive to the needs and particular
constraints faced by many of the LDCs. Some LDCs were also Non-Residents or had small missions.
Measures that had been taken to increase LDCs' integration and participation in the global economywere therefore important. To facilitate the annual review of this item, the Secretariat had prepared the
document WT/COMTD/LDC/W/26.
35. Mr Chiedu Osakwe, Director, WTO Technical Cooperation Division said that the document
had been circulated in the three official languages of the WTO to facilitate discussion. Several WTO
Secretariat operational Divisions had contributed to the preparation of the document including theDevelopment and Research Division, the Trad e Policies Review Division, Agriculture and
Commodities Division, and the Training Institute among others. Within the Secretariat there was
priority focus on implementation of the LDC Work Programme and this had been reflected in the
preparation of the document. The Note by the Secretariat had 3 Sections. Section I examined the
major trends in LDCs' trade of merchandise goods and commercial services through the 1990s. The
overall trends indicated that the LDCs share in gl obal trade had not grown significantly and accounted
for around 0.5 % of world trade. These aggregate trends, however, had not reflected the significantdifferences in performance of LDCs in a regional or  individual country context.  Some countries for
example Bangladesh, Cambodia and Uganda had experi enced rapid expansion of their external sector
through the 1990s. They had performed well with regard to domestic policy reforms, building donor
and foreign investor confidence, and in successf ully combining domestic reforms with the trade-
related technical assistance received. Trade was a tool for economic development and povertyreduction. The issue of market access in this context was also of importance. While there had been
significant improvements in preferential access, there were still high tariffs in many of the sensitive
sectors of interest to LDCs.
36. Mr. Osakwe said that Section II examined the recent developments and concrete measures
taken to enhance LDCs' participation. The WTO Secretariat had undertaken concrete initiativesthough there was scope for further improvements. Together with UNCTAD, support had been
provided to LDCs Ministers for the Zanzibar Meeting prior to the Doha Ministerial Conference.
Further support in cooperation with UNCTAD and the recently appointed UN High Level
Representative for LDCs, Ambassador Chowdhury, co uld be provided in advance of future WTOWT/COMTD/LDC/M/28
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Ministerial Conferences.  Initiatives in favour of Non-Residents had also been undertaken. Geneva
Week was being held twice a year and its funding would now be from the regular budget of the WTO,
as agreed by the BFA Committee. The WTO Reference Centre programme had been successful in
LDCs and other countries. Senior Management had approved the replacement of old equipment but
this would be done on a one-off basis. The IF Diagnostic Trade Integration Studies (DTIS) wereproviding important contributions. The Director-Gen eral had provided support and initiated contacts
with the relevant bodies to enhance LDCs and de veloping country participation in international
standard-setting bodies. WTO technical assistance was being formally coupled with Trade Policy
Reviews (TPRs). The TPRs were being prepared join tly with technical cooperation officials so as to
better identify the technical assistance needs of LDCs within a coherent policy framework. He stated
that senior management would shortly be finalising a new internship system in addition to the regular
internship programme. On the basis of this new system, the WTO Secretariat would finance 1 internfor the co-ordinators of Informal Groups such  as CARICOM, African Group, LDC Consultative
Group, for periods of up to 6 months. This was based on the general understanding that co-ordinators
of these groupings rotated after 6 months. Section III dealt with issues and not recommendations for
further consideration. He hoped that the document would contribute to the exchange of views.
37. The representative of Uganda speaking on behalf of LDCs thanked the Secretariat for
introducing the document WT/COMTD/LDC/W/26 and for providing other logistical support to
LDCs. He stated that as LDCs, the work of the Sub-Committee to the LDCs, particularly in regard to
efforts aimed at enhancing their participation in the multilateral trading system was of importance.
The continuing marginal participation of LDCs was of great concern. LDCs as a group, constituted
about 20% of the membership of the WTO, yet accounted for only 0.5 per cent of global trade ingoods and 0.4 per cent of trade in services. This performance was gloomy and translated itself on the
ground to poverty that was not just an academic or statistical issue but had real life implications. He
said that the Secretariat note pointed out that, for most LDCs, if the somewhat misleading averages
were removed, the situation was getting worse. This strengthened the case for more concrete and
fundamental improvement of market access through greater security and predictability which could
only be achieved through binding of preferential access, accompanied with simplified and harmonized
rules of origin for the effective use of the preferences. While he acknowledged and thanked trading
partners like the EU and US that had institut ed programmes for preferential treatment of LDC
products, these preferences would be nullified, unless accompanied by measures eliminating several
of the trade restrictive barriers to which he had referred.
38.  The representative of Uganda recalled that as mentioned by the Chairman, the WTO Work
Programme for LDCs was not for the Sub-Committee alone but for the entire membership. TheSecretariat note had also cited supply-side constraints, the debt burden, lack of capital flows,
instability in commodity prices and insufficient  market access as constituting some of the main
challenges facing LDCs. It also provided detailed information on recent developments and initiatives
to enhance the participation of LDCs such as mo re Trade Policy Courses, initiatives in favor of
Non-Residents, information technology support, th e Integrated Framework (IF) Pilot Scheme, the
participation of LDCs in international standard  setting bodies and LDC Trade Policy Reviews. He
stated that the importance of these initiatives was recognized, and appreciated and that they should
continue. However, as Members considered the LDC Work Programme, due attention should also be
accorded to the issue of how the WTO agreements/provisions themselves had either contributed to or
hindered the integration of LDCs into the international trading system. If these fundamental issuessuch as the implementation problems faced by many developing and LDCs were not addressed, then
the initiatives mentioned in the paper, useful as they were, would hold diminished value.
39. He stated that in examining the issue of participation of LDCs in the WTO it was important,
to relate this participation to outcomes and to suggest corresponding concrete actions that could be
taken by WTO Members to enhance the participation of LDCs in the multilateral trading system. Itwas not sufficient simply to recognize LDCs improved participation in establishing negotiating
positions, but it was also important to underscore the need for the various negotiating bodies to takeWT/COMTD/LDC/M/28
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on board all their substantive proposals. In order to improve LDCs' position in the multilateral trading
system, the priority need was to assist in th e effort towards improving LDCs' supply capacity. If
LDCs could not take full advantage of the benefits of improved market access all other efforts for
enhancing participation in the multilateral trading system would remain ineffective.
40. He said that with more creative approaches, some of the WTO activities could be
strengthened to achieve a greater impact and benefit a greater number of LDCs. This required
increased resources. LDCs welcomed the doubling of training capacities under the Trade Policy
Courses run by the WTO Training Institute and looked  forward to the increase in the share of LDCs in
their total annual intake. Similarly, the recently initiated Internship programme was welcomed. This
was an effective capacity building and training programme that provided the needed technical
backstopping of LDCs' understaffed Geneva Missions. He noted that no LDC had so far benefited
from this programme. The representative strongly appealed for increased voluntary contributions toenable LDCs to benefit from the programme. Prog ress made in the implementation of the IF in a
number of the 14 LDCs that had been identified for the Pilot Scheme was noted. The Doha mandate
called for the extension of the IF model to all LDCs. He said that there was no programme of work
that enabled Members to assess the extent to which this mandate was met and in what timeframe.
Both a review and an assessment of the progress on the follow-up to the three diagnostic studies werenecessary in terms of response of donors and agencies to the technical assistance requirements
identified in the three diagnostic studies.
41. The representative suggested that the way forwar d lay first, in identifying the problems that
the LDCs faced in the multilateral trading system and whose solution also lay within the mandate of
the WTO. These included a) lack of equal participation in the agenda-setting and negotiations in theWTO; b) capacity and supply-side constraints; and c) declining and unsatisfactory trade performance.
The three problems were inter-linked and hence he said that the solution should be holistic. He offered
some suggestions to address these problems and looked forward to further discussions.
a) Improving Participation in Agenda Setting and Negotiations: The Secretariat note had
mentioned the efforts made by LDCs to prepare and present issues of interest and concern tothem. It was true that despite their severe resource constraints, LDCs had worked hard
through the mechanisms of the informal LDCs ' Consultative Group in Geneva and the LDC
Ministerial Conferences, to prepare and present their agenda in the WTO. However, it was
felt that LDCs were not consulted enough and their core views were not taken into account
even when the motions of consultations had been attempted. This serious anomaly should be
addressed.
b) Capacity Building and Supply Side Constraints: These issues had been mentioned a
number of times. Yet action seemed to be lacking. One common assumption behind the
actions that had been taken to address this problem was that such problems could be
overcome in a short time and through seminars, training courses, and other such activities.
Such initiatives were useful to create awareness and knowledge among officials. But the real
need was to assist in building domestic institutions, expanding the knowledge base andimproving capacity to understand, analyze, advocate, negotiate, and take advantage of trading
opportunities. This was a long-term process, requiring resources and the cooperation of
trading and development partners. This also meant that the LDCs should not be expected to
negotiate in areas where they did not have the domestic institutions and capacity to
understand and analyze, such as the Singapore Issues. He said that external factors likeresolution of the debt problem, flow of invest ment and transfer of technology could also help
resolve supply side constraints.
c) Improving Trade Performance: Building solutions by improving the effective participation
of the LDCs in agenda-setting and negotiations, and by building domestic capacity, wouldWT/COMTD/LDC/M/28
Page 10
also have had a positive impact on their trade performance. This was also an area that WTO
Members would need to examine more closely.
42. He added that in responding to a number of points highlighted in the Secretariat note like the
meagre share of the LDCs' world trade, their deteriorating terms of trade and performance, the WTO
and its Members should take action to redress these through ways such as: i) asking developedcountries  to take immediate action to effectively implement all the provisions in favour of LDCs.
This included article 66.2 of the TRIPS Agreement and, articles IV and XIX of the GATS, as well as
other articles in the other WTO Agreements and Ministerial Decisions; ii) removal of tariff escalation
so that preferential market access for value-added products was not compromised, and transferring
technology to assist diversification efforts by the LDCs. Immediate and adequate technical and
financial assistance should be provided to the LDCs to comply with any technical and SPS measures
taken by developed country trading partners; iii) all developed countries should grant immediate,duty-free and quota-free access to all products from LDCs. This needed to be accompanied by simple
and harmonized rules of origin and simple and efficient administrative arrangements; iv) the terms of
trade of major exports and imports of individual LDCs should be regularly monitored and a
mechanism instituted to redress any negative deve lopment that may arise. He looked forward to
further discussion and attention to these issues.
43. The representative of Bangladesh said that the LDC Coordinator had made substantive
observations on this agenda item which his delegation fully endorsed. The meeting was important
because the WTO work programme adopted needed to be implemented expeditiously.  He thanked the
Secretariat for the document prepared. The document  highlighted major trends and changes in LDC
trade in the 1990s and also put forward some issues that could be considered to enhance theparticipation of LDCs in the multilateral trading system. The initiatives taken by the WTO Secretariat
to improve participation were noted. Firstly, the Note had stated that the share of LDCs trade had
remained static through the 1990s, this gave the impression that the LDCs were not worse off.
However, if the period before 1990s was considere d, the share of LDCs in world trade had continually
declined. It had fallen from 3 per cent in the 1960s, to 2 percent in 1970s, to 0.8 per cent in 1980, to0.4 per cent in 2000. This share would fall even further unless the world community in cooperation
with the LDCs took drastic measures. Secondly , he said that the document had identified the
significant differences in trade performance within the LDC group. But the differences in
performance had been traced to a mix of domestic and external factors. In spite of undertaking major
structural reforms, a majority of LDCs had not been able to expand their trade.  This was because the
problems lay elsewhere. The LDCs faced high tariffs in the products of interest to them. LDCs had
undertaken import liberalization while developed countries had not undertaken similar measures.Since most LDCs continued to be dependent on a very small range of products, export diversification
was critical for the growth of the LDCs. Technical assistance was needed in this area. Thirdly,
Bangladesh was mentioned in the document as a country that had experienced stronger growth in
merchandise exports and the success was attributed to diversifying export structure and attracting
FDI. This was not the case, as the export base in Bangladesh had not been diversified and FDI wasconcentrated in few service sectors like telecom and gas, which did not necessarily earn foreign
exchange. While in Africa, there was concentration in primary commodity exports, Bangladesh had
concentration in only one manufacturing product that earned the lion share of export earnings.
Moreover, the aftermath of the events of 11 September 2001 had not been taken into account in the
Secretariat note as this had led to a shrinking of export earnings.  Taking export figures alone could bemisleading if not interpreted in context. In the case of Bangladesh, exports were dominated by ready-
made garments where the value addition was small. The dynamics had to be analyzed before it could
be stated that the exports of Bangladesh had increased and that it had contributed to its welfare.
44. He commended the work on technical assistance and capacity building that had successfully
commenced with the approval of the WTO budget and with pledges of CHF 30 million from a wide
range of donors for the Doha Development Agenda. The  increase in Trade Policy Courses and
training such as those on Dispute Settlement was appreciated.  He hoped that there would be widerWT/COMTD/LDC/M/28
Page 11
fellowships for LDCs.  While delivering technical assistance, the WTO and development partners
should realize that the major challenge facing LDCs was trade-related supply capacity building and
enhancing the capacity of trade supporting institutions. The technical assistance delivered had
concentrated on seminars and workshops. While they were useful, they were not a substitute for
capacity building in the LDCs. For genuine capacity building long and medium term measures wereessential. The reports on the IFSC and also on the implementation of the IF Pilot Scheme suggested
that it would assist LDCs as a mechanism for mainstreaming trade into the LDCs development plans
and poverty reduction strategies. His delegation howev er viewed the IF scheme to be a mechanism to
address supply-side constraints and to  respond to the deficits in human and institutional capacity. The
IF Pilot Scheme needed to be seriously examined in this light. In Mr. Osakwe's intervention, it had
appeared that the delivery of technical assistance was subject to domestic reforms being carried out by
LDC governments. This was not the case when technical assistance under the IF was designed. Thepurpose of the IF was different and should focus on addressing supply-side constraints. He said that in
the IF, all six agencies were involved, it was an independent programme and that it should not be
subsumed into a World Bank programme.
45. He said that LDCs needed improved market access to participate better in world trade. This
had also been pointed out in the Secretariat note. But this addressed the demand-side problem, inparagraph 42 of the Doha Declaration, where Members had agreed that "meaningful integration of
LDCs into the trading system and the global economy will involve efforts by all WTO Members". He
questioned the meaning of "efforts"? Trade without investment and transfer of technology was  not
meaningful for the LDCs. The international commun ity needed to pay adequate attention to this.
Enhanced participation of LDCs did not mean greater participation in the negotiations. His delegationviewed enhanced participation as enhanced share of LDCs in world trade. He referred to the Joint
Communique by the Heads of Agencies
1 that placed "the priority needs and interests of developing
and LDCs at the heart of the negotiations and Work Programme." In the post-Doha WTO Work
Programme, the implementation of the IF should contribute to the realization of these priorities.
46. The Ambassador of Zambia supported the statements made by the delegation of Uganda, as
coordinator for the LDCs, and by the representative of Bangladesh. He thanked the Secretariat for the
document prepared. The enhancement of LDC participation in the multilateral trading system could
not be achieved without some measure of LDC owners hip of the process itself. The statement by the
LDC coordinator gave important ingredients for enhanced participation. The statement also
supplemented the fundamental issues identified in the Secretariat document and which were needed to
assist LDCs in their integration into the multilateral trading system. The Doha Development Agenda
had been given a high political profile with the efforts of the Director-General.  These issues nowneeded to be addressed seriously and in a timely manner. He urged that the development partners
consider the issues identified in a positive fashion.
47. The representative of Mauritania took note of the document WT/COMTD/LDC/W/26. He
welcomed the efforts made in the document to focus on issues of concern to LDCs. He stated that the
document was too descriptive because it had tried to draw out a number of elements that could beconsidered to be positive in the absence of further analysis. He shared the comments made by
Bangladesh in this regard, as data from before the 1990s had not been used and this presented a partial
picture that did not fully reflect the decline in LDCs  trade share.  With respect to market access, he
believed an in-depth study was needed on the issue of "Standards" as it was one of the main barriers
for LDC exports. There was a study by UNCTAD on this but there was need for further work. Herequested a study examining the products exported by LDCs that faced tariff escalation etc., as this
would permit identification of the remaining market access barriers.  Frequently, mention was made
of preferential duty-free access for LDCs but it would be interesting to go into further depth on these
issues. The notion of equitable trade and access was also mentioned. In LDCs there was autonomous
liberalization but LDC producers were not being accorded fair and equitable treatment in the
                                                     
1 WT/IFSC/1WT/COMTD/LDC/M/28
Page 12
international market. He referred to the recent re port by OXFAM in this context. Another issue was
the connection between technical assistance and the strengthening of export capacity. The real impact
of technical assistance would need to be measured against the strengthening of export capacity. The
WTO Secretariat had already made efforts in evaluation, though this was still in the embryonic stage.
If the connection between technical assistance and export capacity were  not made it would not bepossible to depart from past schemes and offer innovative solutions to the specific problems LDCs
still faced. His delegation reserved the right to revert to this document at this or future meetings.
48. The representative of India said that given the launch of the Doha Work Programme and the
importance attached to development issues in the work programme, there was a lot to be done. He
thanked the Secretariat for the note. His delegation appreciated the various capacity building efforts
the WTO had undertaken of benefit to developing and LDCs. There was need for effective
coordination between the IF core agencies, the donors and the beneficiary countries. He welcomed thenew IF web-site that had been presented.  It was hoped that the revamped IF would greatly enhance
the capacity of LDCs in gaining meaningfully from the multilateral trading system. He thanked
Uganda for its statement and agreed with the point made that due attention should be accorded to
examination of the issue of how WTO Agreements had either contributed or hindered the integration
of LDCs and developing countries into the multilateral trading system. In this regard the importanceof making S&D provisions in various agreements mandatory and resolving the outstanding
implementation issues needed to be recognized. Ther e was also the need to enhance the participation
of developing countries in general and LDCs in particular in the international standard setting
organizations. His delegation welcomed the regular reporting by the Director-General of the WTO to
the General Council on this matter. Adequate care should be taken  when increasing the obligationsborne by developing countries,  in particular the LDCs on issues such as the Singapore Issues,
especially when these countries do not have adequa te capacity to fulfill their obligations under the
current WTO Agreements. He said that as mandated in Doha, the relevant WTO bodies should, in the
study phase, discuss these issues with a view to improving their understanding on these matters.
49. The representative of the European Communities expressed appreciation for the Secretariat
document WT/COMTD/LDC/W/26.  It was a useful summary. From the discussions there was a
rather general debate on what had been done and remained to be done. His delegation did not want to
avoid such discussion but on the other hand many of the points raised were a part of the Work
Programme and would be  considered at some stage.  There was a sense of urgency especially in the
points made by Uganda and Bangladesh and justified dissatisfaction with the overall performance of
LDCs.  As indicated in Section I of the paper the LDC performance in trade had not been very good
and if it were  not for oil and petroleum products the situation would have been bleaker. The notemade these points in a balanced way, though some of the points made in the document also went
beyond what could be discussed usefully. For example in paragraph 18, there were a lot of issues
listed, on major challenges for LDCs. Market access had been identified, which was core business for
the WTO. The question of FDI, domestic reform, commodity prices, debt, exchange rates, etc were
also important, but what could be done on these issues in this fora was limited.
50. He noted that Section II on recent developments, was more focussed. It picked up initiatives
that had been or could be followed-up in the WTO. In his delegations' view, LDC-III could have had a
bigger reference in this section as there was a specific trade component in it that was relevant to the
discussion. At the same time, he recognized that every possible initiative that could have had an
impact on trade was not mentioned because there was need to focus and limit the scope of discussion.
51. He noted that in Section III, there were issues for further consideration. Most were well
known and would continue to be addressed within  the work programme. In paragraph 66, the issues
raised such as market access, non-tariff barriers, rules of origin, technical assistance including drafting
of the Annual Plan for 2003, extension of the IF, and domestic policy reform were all relevant.  They
presented a good basis for discussion. He added that if there was a general discussion, Membersshould not lose sight of what the value added of the Sub-Committee should be. Discussion on the IFWT/COMTD/LDC/M/28
Page 13
could be undertaken, but its purpose had been defined in the pilot scheme adopted over a year ago.
The IF was adequately covered in paragraph 44 of the Secretariat Note. On the other points raised by
Uganda, he said that the urgency on market access was shared by his delegation. He said that an
UNCTAD paper on "Duty and Quota free access for LDCs – further evidence from GCE modelling"
pointed to some of the benefits that could be derived from a more general approach like the EBAscheme. This would be interesting to discuss further. The question of "binding" was a long-standing
issue that had been discussed. The supply-side and capacity building issue had also been raised by the
delegation of Uganda who had stated that action had been completely lacking which was not a view
shared by his delegation. Efforts were being made including through the appropriate channels to
address the supply side and infrastructure constraints – for example in Monterrey. He had heard in the
statement by Bangladesh that there was no liberalization in developed countries despite what
developing countries had undertaken. While understanding the frustration that might exist onparticular issues it did not reflect the overall picture which was better.
52. The representative referred to on-going work on the "Singapore Issues". He limited his
intervention to technical assistance and capacity building.   He said that what was offered in this area
was quite impressive, so far. Knowledge on the new issues could be raised in the coming months. He
said that no one should be expected to understand every detail of the issues because no delegation wasaware of all the complexities when negotiating. That was part of the risk. He thanked delegations for
their statements and contributions that would be further examined.
53. The representative of Morocco thanked the Secretariat for the Note prepared. It
complemented the annual report from UNCTAD and was an update. The document could however
have gained in substance and weight if it had given an in depth identification of market access barriersfor LDCs' products. This was the crux of the problem that needed to be addressed to improve the
participation of LDCs in the multilateral trading system. Market access measures were to be
welcomed and would need to go hand in hand with true capacity building in terms of exports
strategies for the LDCs. He mentioned the SIDA study on Trade and LDCs that focussed on market
access problems for LDCs.
54. The Chairman thanked the representative for his comments and for the recognition given for
the work of the Swedish Development Agency (S IDA) on the study entitled "Least Developed
Countries and World Trade." He said that the Swed ish delegation would be able to provide further
details for those interested in the publication.
55. The representative of Australia thanked the Secretariat for the preparation of document
WT/COMTD/LDC/W/26 and for the LDC delegations that had commented on it. Paragraph 33 of the
paper, mentioned AITIC and her delegation would like to highlight the good work that it was doing inproviding assistance to Non-Resident delegations. Also under a joint Australian – South African
initiative there was a Trade Policy training course for African Trade negotiators underway in Pretoria,
South Africa. Senior officials from about 20 countries, including a number of LDCs were
participating.  . The course was initiated in response to the need for strengthened capacity in Africa in
the post-Doha environment.  In content, the course was modelled on a similar Trade Policy trainingCourse that was run by the Department of Foreign Affairs and Trade in Australia and it covered the
whole gamut of WTO Agreements. The course represented a start of increased focus by Australia on
these types of initiatives both in Africa and, possibly, elsewhere in the world. Australia would remain
in close contact with other Members and the WTO Secretariat to ensure that the courses were
complementary to the wider training agenda underway on post-Doha trade policy issues.
56. The representative of United States expressed appreciation for the detailed statements made
by LDCs under this agenda item. To enhance the information in the document she said that it would
be important that Members update and submit information into the integrated database. The statement
made by Uganda, the coordinator of LDCs, would be further studied so as to increase the dialogue on
the issues raised in their statement.WT/COMTD/LDC/M/28
Page 14
57. The representative of Norway commended the Secretariat for the paper. The figures presented
however camouflaged the real challenge. While 0.5 percent of world trade in goods and 0.4 per cent
of trade in services came from LDCs, the average figures did not reflect the fact that the vast majority
of LDCs were marginal. His delegation welcomed a comprehensive approach that included market
access for "all" products originating from LDCs. This would enter into effect in Norway as from 1July 2002. A comprehensive approach also involved priority for technical assistance to LDCs to
enable them to respond to challenges of overcoming technical barriers to trade and also in the area of
SPS. His delegation would support, to the extent possible, increased participation in international
standard-setting organisations as well as the effective participation of LDCs in the Doha Development
negotiations. Norway placed emphasis on assisting delegations without representation in Geneva. The
new approach to Trade Policy Review Mechanism was welcomed, where the TPR was directly
coupled to the technical assistance needs of the LDCs.  In addition to market access and technicalassistance, real development and participation in trade also required development assistance related to
supply-side challenges such as trade diversification, education and training, investment in
infrastructure both physical and institutional.  Th e responsibility also rested with LDC governments
for development of good governance including administrative and legislative frameworks for trade.
58. Mr Chiedu Osakwe, Director, WTO Technical C ooperation Division said that some of the
comments raised were for the Secretariat to respond to, while others raised issues that were a matter
for the membership. He said that the paper within its remit was balanced. Market access
considerations had been raised but he said that under the work programme there was a separate item
on market access and the Secretariat had not written this paper specifically on market access.
Although there was some commentary on market access in WT/COMTD/LDC/W/26 this was writtenonly as part of the item on "Enhancing the Participation of LDCs in the trading system." Therefore it
was not as detailed as it could be. It was recognized that LDC market share went through a
considerable period of decline but it was also a fact as stated in paragraph 4, that it was now static and
hovered around 0.5 percent of global trade. He noted that overall on market access, the prospects were
difficult and that in sensitive sectors of export interest to LDCs, there were considerable tariff peaksinhibiting their exports. He drew attention to the several statements made, including by the EU Trade
Commissioner, Mr. Pascal Lamy, at the OECD Mini sterial Meeting in Paris, recently, that had
mentioned that although there was increased and enhanced access for LDCs it needed to be made
more practical and effective.
59. He noted that paragraph 18 also highlighted the major challenge relating to trade-related
capacity building that still remained. Trade capacity building would enable LDCs take advantage of
improvements in market access. The delegations of Mauritania and Morocco had mentioned the needfor a paper on market access that would examine on a market-by-market basis, the restrictions that
LDCs' exports faced. This had been done as a "deliverable" for LDC-III and was contained in
document WT/LDC/SWG/IF/14/Rev.1 and Add.1. He furt her appealed to Members to notify their
tariffs and other trade information to the WTO Integrated Database (IDB) as it was, currently, patchy.
This was a constraint on the Secretariat as notified information was the basis for conducting studies.
60. Mr. Osakwe noted that in Section III: Issues for Further Consideration, the case for improved
market access had been underscored. On data issues, he said that the paper was a good basis for
discussion and the Secretariat would be available to enter into bilateral discussions with interested
delegations to further present the information.  He said that the paper did not suggest that domestic
policy reform had not taken place in LDCs, nor was it stated that trade-related technical assistanceshould be conditional on domestic policy reform. Nonetheless, it was a fact that technical assistance
and capacity building would be better absorbed within a process of continuing domestic reforms.
Trade capacity building would also be better absorbed as part of a broader development and poverty
reduction strategy. He noted that, for instance, Cambodia had done so, as had Bangladesh, Uganda
among others and it was an on-going exercise.WT/COMTD/LDC/M/28
Page 15
61. Mr. Osakwe restated the negotiated basis for the re-vamped IF. LDCs, donors and agencies
had agreed by negotiation and formal decision-making that the IF would be: i) a mechanism for
mainstreaming trade into PRSPs and national development plans, and; ii) based on the priority
recommendations that would emanate from the diagnostic trade integration studies, trade-related
technical assistance would also follow. Althoug h there was scope for further improvements in
technical assistance, the Secretariat was working hard to deliver.
62. He reminded Members that as announced in the COMTD in April, the process of drafting the
TA plan in 2003 had begun.  He requested Members to submit their inputs to the Secretariat before 31
July 2002. The draft plan as compiled would then be sent to the COMTD and subsequently the
Committee on Budget Finance and Administration for formal authorization. There was need to
strategically reorganize the delivery of technical assistance. Every year the volume of demands had
been increasing. The demands would be infinite and it would be difficult to pursue and everincreasing number of requests year-on-year.  Members would need to offer guidance.
63. The Chairman said that there had been substantive and good discussions on the  issue. He
recalled that the Sub-Committee had been instructed in paragraph 11 of the WTO work programme
for LDCs, to report each year to the COMTD on its monitoring and review of this item. These
substantive discussions in the Sub-Committee would be an element of the end-of-year report to becompiled and considered in the COMTD. He proposed that the Sub-Committee take note of the
statements made.
64. It was so agreed.
(iii) Market Access for Least-Developed Countries
65. The Chairman noted that Ministers in the Doha Declaration had committed themselves to
consider additional measures for progressive improvements in market access for LDCs and to the
objective of duty-free and quota-free access for products originating in LDCs.  Paragraph 7 of the
Work Programme for LDCs listed elements for review and further examination. Examination of
possible additional measures, identification of reported barriers, and factual studies based on
notifications of further improvements in preferential access schemes for LDCs such as GSP schemeswere being carried out by the Development and Research Division. Members had been briefed at the
meeting of the Negotiating Group on Market Access in April, on the ongoing research being
undertaken. He invited Mr. Bijit Bora, from the Development and Research Division, to brief
Members on the research work underway and the st udy that was being prepared by October 2002 on
market access improvements for LDCs.
66. Mr. Bijit Bora, from the Development and Research Division of the WTO Secretariat said
that the study was due to be completed by October 2002. As this was a preliminary briefing and the
study was still to be completed he wished to draw attention and seek Members views on how the
study was to be approached. The Development and Research Division was responsible for research
studies under non-agricultural market access and that mandate covered issues under paragraph 16 of
the Doha Declaration which was broad and substantive enough to cover issues in the context of LDCmarket access at the same time.  The strategy was therefore to have a broad methodological approach
to cover issues such as peaks, escalation, and identification of products of interest to developing and
least-developed countries. This required the establishment of a usable database for research and
analytical work. This was being undertaken with the Statistics Division. There was also need to build
on existing work. In this context, he referred to the recent bibliography of research on market accessthat had been prepared for the Negotiating Group on Market Access in April, contained in document
TN/MA/S/1. In parallel, a selective bibliography of research on Textiles had been prepared for the
CTG.  Both  bibliographies highlighted the substantial amount of research that had already beenWT/COMTD/LDC/M/28
Page 16
undertaken. There was a lot of literature in terms of issues that were of interest. In the document
TN/MA/S/1 there was a section on research on Market Access for LDCs. Most of the studies were
only about a year old as they were prepared for LDC-III in May 2001. The studies did contain detailed
information and databases on preferences and utilisation.  He also noted that in October 2001, there
was a Secretariat study on GSP schemes in the Quad contained in WT/COMTD/W/93.
67. Mr. Bora said that it was not the Secretariat's intention to replicate what had already been
done but it was rather to build on existing work. It was important therefore to get inputs and
suggestions from Members on what the study should co ntain. It was also important to get data. There
was some discussion on the use of "notified" data. This  could be a handicap to doing research if it was
restricted to using data only from the IDB database because it was not complete enough to do a
satisfactory study on LDCs. He drew attention to paragraph 3 of WT/COMTD/W/93, which stated
that, the "statistical part of this study is based on information from the WTO IDB. In the case of theEC the information had to be supplemented by data on preferences from UNCTAD TRAINS
database." Sources from outside the IDB were theref ore used and this was an issue for which further
guidance from Members was sought.
68. The Chairman thanked Mr. Bora for the preliminary briefing on the scope and methodology
for the study. The document was being prepared for consideration at the final session of the Sub-
Committee in 2002 scheduled in November. He said that the study could be useful not just in the
context of discussions in the Sub-Committee, but also in the framework of the ongoing broader
negotiations on market access. The study would be based mainly on Members notifications of trade
and tariff data to the Integrated Database (IDB) and notifications of preferential access schemes for
LDCs under the Enabling Clause and the 1999 waiver. To facilitate preparation of the study, Memberswere requested to notify their trade and tariff including preferential tariff data. He understood that the
Government of Switzerland had recently notified
2 improvements in their GSP scheme to the COMTD
and that the GSP scheme as revised by Japan on 1 April 2002 had also been notified.3 He encouraged
other delegations to come forward with up-to-date information of access opportunities so as to
facilitate monitoring and review.
69. The representative of Senegal said that the issue of market access was partially discussed in
the  Secretariat paper (WT/COMTD/LDC/W/26). This  was an issue of importance to LDCs and the
terms of reference and mandate from Doha had been reflected in paragraph 6 of the WTO Work
Programme for LDCs.  Paragraph 42 of the Doha Ministerial Declaration referred to "duty-free,
quota-free market access for products originating in LDCs" and also of "additional measures for
progressive improvements" which would cover other non-tariff measures. As mentioned in the WTO
paper (WT/COMTD/LDC/W/26), addressing LDCs marginalization in trade was important. Only
petroleum exporting and a handful of other LDCs had managed to diversify their economies and had
experienced growth in their exports over the last decade. For the others, exports had dropped. This
pointed to the continued existence of market access problems. He acknowledged the recent initiatives
and efforts of many developed countries such as  the EU's initiative, the AGOA by the US, Norway,
Japan, and Canada's GSP schemes among others. However the real impact of these initiatives onLDCs markets was to be determined. The terms of reference of the study on this issue should assist in
the identification of remaining obstacles.
70. He noted that the examination of other areas of LDC market access could also be of
relevance. There was a broad mandate apart from market access.  There was diversification which was
also a part of the work programme. He thanked the Secretariat for the briefing and for taking up thedifferent elements listed in the work programme. He hoped that the Secretariat study would be
prepared as soon as possible. As this was the first meeting since the adoption of the Work Programme
he said that it was a good opportunity to refine the general orientation under the Work Programme and
                                                     
2 WT/COMTD/N/7/Add.1
3 WT/COMTD/N/2/Add.11WT/COMTD/LDC/M/28
Page 17
to ensure that the Secretariat in the paper it was preparing would cover all aspects of these issues of
interest to LDCs. There was need to be innovativ e when speaking of "additional measures" in the
Doha Declaration and the LDC work programme.  There was also a need to examine what were the
measures that could be taken to improve the trading opportunity and capacities of LDCs. On the
Selective Bibliography (TN/MA/S/1) he said that it did not cover "agricultural products" as it wasprepared for the Negotiating Group on Market Access. A bibliography for "agricultural products" was
also needed for a broader picture of the market access situation for LDCs that would complement the
existing bibliographies. Agriculture was an important sector and constituted a considerable share of
LDCs' production and exports. The issue of SPS meas ures was also mentioned as it affected LDCs
exports. Access to the various studies mentioned was sometimes difficult and he said that a
compilation would also be useful.
71. The representative of the United States said that it continued to support efforts to improve
market access conditions for the LDCs. There was an effort underway to further enhance US
preferences. The Doha Declaration launched full market access negotiations and made specific
reference to take into consideration the needs and interests of the LDCs. His delegation was
committed to doing this. At the same time he said that Members should acknowledge that improved
market access for LDCs was not just the responsibility of developed Members. The World Bank hadestimated that 70 percent of duties on developing country exports of manufactures were levied by
other developing countries. There was a need for all countries to be a part of improving market access
for LDCs. While the Doha negotiations would prov ide an opportunity for all Members to liberalize
trade in products of interest to LDCs such efforts needed to be complemented by domestic reform for
their full economic benefits to be realized. He noted that the Secretariat would be hosting a 3 daytariff seminar at the end of May. This was specifically designed to provide education and data tools to
developing country Members so that they could effectively participate in the new negotiations. He
welcomed the use of the Secretariat's technical assistance funds to bring one capital-based
representative from each LDC.
72. The representative of Uganda supported the statement made by Senegal. He said that as LDCs
they were grateful for the initiatives that had already been taken by several countries to facilitate entry
of LDCs goods into their markets. The saying th e "devil was in the detail" was however appropriate.
Quite often the details of the initiatives that had been undertaken by a number of countries whether
developed or developing were not always compleme ntary and coherent so that benefits could accrue
to LDCs. He hoped that initiatives taken to provide market access for LDCs would take into account
LDCs' concerns about Rules of Origin being realistic. Issues brought up in other fora such as
subsidies in major developed country markets would also need to be addressed as LDCs' exports ofagricultural products continued to be affected. This was in effect "taking away by one hand what was
given by the other". He noted that the issue of Standards – both SPS and TBT could also be barriers to
trade. He acknowledged the new or revised GSP schemes that had or would soon be implemented by
Norway, Switzerland and Japan, and hoped that they would take account of these concerns.
73. The representative of the European Communities said that it was important that the market
access studies to be undertaken used the best data available. The OXFAM report quoted by some
delegations had used MFN tariffs instead of GSP tariffs and had presented an inaccurate picture of the
actual levels of protection. This was to be avoided. He noted that some of the work of the ITC on
market access databases and trade maps, as well as on non-tariff barriers, where there were studies on
environmental standards and market access, could be pertinent. There was need for close cooperationin this exercise with others. The  recent publication by UNCTAD using modelling to study the impact
of the EBA was interesting. He noted that there would be a tariff seminar at the WTO and that there
would be studies presented there as well. He said that it might be useful to have a deeper discussion
on this issue when there was more material. The Chairman had mentioned that there would be
consideration of the market access study at the Sub-Committee meeting in November and hesuggested that market access could be the main item  for discussion at that meeting. He suggested that
other relevant bodies working on this issue could also be invited to the meeting. The selectiveWT/COMTD/LDC/M/28
Page 18
bibliography was detailed but its presentation could be made more user friendly. He took good note
on the comments made by Uganda.  There was need for further debate on whether it really was the
case that development partners were "taking away by one hand what was given by the other." SPS and
TBT standards were consumer and health protection measures but they were not insurmountable and
assistance could be provided to meet these standards. The study on  environmental standards by theITC that he had quoted showed that there was no trade-distorting affects. On subsidies he said that the
levels of protection had been reduced.
74. The representative of Bangladesh said that the representative of United States had made the
point that Members must notify their tariff regimes. This would facilitate monitoring of tariff regimes
and would also assist in the preparation of market access studies. He was aware of the numerous
studies on market access that were available but this was a separate and stand-alone issue in the WTO
LDC work programme and he hoped that the identification and examination of market access issueswere completed soon.  It should take account of LDCs products into markets of interest to them. His
delegation looked forward to participating at the market access/tariff seminar. The international
community had made commitments both at the LDC-I II in Brussels and also at the Doha Ministerial
towards the objective of duty free and quota free market access for all LDCs' products. International
conferences were a compromise on wording as LDCs had wanted binding duty free and quota freemarket access.  At Doha, Ministers had further committed for "progressive improvements in the
market access for LDCs". He referred to a report by the UN Secretary-General presented to the
ECOSOC on the role of the UN system in supporting the efforts of African countries to achieve
sustainable development. There was a section on market access which stated that "in some cases, the
rules of origin for some imports give countries little flexibility and little room for manoeuvre in tryingto expand their exports. This has the effect of denying preferences even though it formally exists."
75. The representative of Switzerland said that it had notified
4 the modification of its GSP scheme
to the WTO with additional preferences in agri cultural goods for LDCs. In 1997, the Swiss tariff
preference scheme was extended for a 10 year period for developing and LDCs. Its product coverage
was also extended particularly for agricultural goods. Imports from LDCs into Switzerland wereaccorded duty-free access for all industrial goods and also a large number of agricultural goods. The
government had now approved a proposal that woul d in the medium term provide free access for all
products coming from LDCs. The partial review of the GSP scheme in June 2001 had improved
market access for LDCs as from 1 January 2002. In concrete terms this would be an initial 30 percent
average reduction in all customs duties still in place for LDC products from 1 January 2002. The
additional preferences granted were included as an annex in their notification. In a second phase as
from 1 April 2004 there would be an additional 30 percent average reduction for LDC exports and inthe beginning of 2005 the Swiss government would re view the situation and assess the impact of these
improvements.
76. The representative of India reiterated its support for LDC concerns in the WTO. With regard
to the intervention by the United States he stated that the developed country Members had a moral and
legal obligation with regards to improvements in  market access for LDCs. It was stressed that
developing countries themselves, including India, had on a voluntary basis been improving market
access for LDCs. He noted that many developing countries also had areas and regions in their
territories with comparable levels of development to LDCs.
77. The representative of Morocco recalled the measures taken by his country for African LDCs
in April 2000. Duty free market access was given to a number of products listed in their notification.5
78. Mr. Bijit Bora from the WTO Secretariat in res ponse to the comments made said that the
bibliography was an issue-based one. The taxonomy was set-up by issues in the context of paragraph
                                                     
4 WT/COMTD/N/7/Add.1
5 G/C/6 and WT/LDC/SWG/IF/18WT/COMTD/LDC/M/28
Page 19
16 of the Doha Declaration. What was circulated was the shorter version of 13 pages, the first version
was 50 pages. In editing, attention  had been given to focussing on the primary issues that Members
were seeking to consider. The studies that were listed under the LDC section of the bibliography did
cover market access for LDCs in general and included agricultural products. Many of the issues raised
such as rules of origin and standards were also covered in some of those studies. Some of the studieson standards related to textiles and clothing and those studies were included in the separate
bibliography on textiles. While there was an extensive listing of studies written – the issue of
delegates reading those papers was another matter. He encouraged delegates to attend the market
access/tariff seminar. The programme structure was good with the first day dedicated to market access
issues in general, covering the landscape of barriers to exports, including those for LDCs.  Papers on
negotiations, its history, modalities were also to be presented. Day two would be  on non-tariff
measures – many of the points raised in the Sub- Committee under this heading would be covered. The
third day would be on distinguishing between databases and software. There were two databases that
were accessible – the WTO IDB and the UNCTAD TRAINS database. There was a third set that the
private sector companies used as well. His primar y concern in undertaking the study was not in the
software but in ensuring that the data require d was available. Notifications by Members were
therefore important. He was encouraged by the comment by the EC to use the best data available. Heintended to follow the format used in the GSP study presented to the COMTD which was to use
credible external databases in addition to the WTO IDB.
79. The Chairman proposed that the Sub-Committee take note
 of the statements made and retain
this item on the agenda for the following meetings of the Sub-Committee.
80. It was so agreed.
(iv) Accession of Least-Developed Countries
81. The Chairman said that thirty of the forty-nine LDCs were currently Members of the WTO. A
further nine LDCs were at various stages of their accession process. At the Fourth Ministerial
Conference in Doha, Ministers had stressed the importance attached to concluding accession
proceedings as quickly as possible and their commitment in particular to facilitate and accelerate theaccession of LDCs. As part of the Co-ordinated Annual Technical Assistance Plan for 2002 the WTO
Secretariat was organising a Seminar on Accessions on 15-16 July 2002 in Geneva. The Seminar
would provide an opportunity for exchanges between WTO Member representatives and those from
acceding governments with a view to arriving at general conclusions as far as possible, based on the
experience gained from the functioning of the WTO accession process since the establishment of the
organization in 1995.  The occasion would be useful to discuss capacity constraints and technical
assistance needs in the accession process, and recommendations as appropriate. He invited allinterested Members and Observer Governments to attend the Seminar. Due to logistical constraints,
representation would be limited to one representative per delegation. To facilitate participation of all
LDCs in the process of accession, including those without representation in Geneva, the WTO
Secretariat had arranged to cover the financial costs for the participation of one capital-based
participant from LDCs that had observer status and thus a direct interest in accession matters. Theformal invitation and the programme of the Seminar had been circulated. The Seminar would be held
back-to-back with the next meeting of the S ub-Committee on Least-Developed Countries that he
intended to schedule for the afternoon of 16 July 2002.  The meeting of the Sub-Committee in July,
would primarily focus on the accessions of LDCs. At the meeting, Chairpersons of LDCs' Accession
Working Parties and the representatives of the acceding LDCs could also brief Members on the state-of-play and progress made in the accession Working Parties.
82. He recalled that the WTO Work Programme for LDCs (WT/COMTD/LDC/11), in paragraph
18, had instructed him as Chairman of the Sub-Committee to report on accession of LDCs to the
General Council at its first meeting in 2003. The ge neral conclusions of the Seminar in July, together
with the examination of a WTO Secretariat document on technical assistance delivered to accedingWT/COMTD/LDC/M/28
Page 20
LDCs that would be prepared for consideration at the November meeting of the Sub-Committee
would be the basis of the report to the General Council in 2003. The Director-General was also
expected to report on this issue to the Fifth Ministerial Conference. He said that representatives of the
WTO Accession Division and Technical Cooperation Division were available for any clarifications
sought on the WTO Seminar on Accessions.
83. The representative of Ethiopia expressed concern on the lack of progress on accession of
LDCs to the WTO since the establishment of the organization. The problems that LDCs faced in their
accession process were numerous and varied. These had included, cumbersome and time-consuming
procedures as well as lack of objective rules and disciplines for accession negotiations. Addressing
these problems required, inter alia,  making the process more effective and less onerous. Taking into
account the limited capacity of LDCs, establishing clear, simplified and fast-track procedures and
provision of adequate and predictable technical or financial assistance for the accession process wasneeded. The assistance provided needed to include capacity building for both institutional and human
resources. The WTO Work Programme for LDCs with respect to the accession of LDCs envisaged
concrete recommendations. He hoped that contributions to this end could be made at the Seminar
where briefings would be made by Chairpersons of  Acceding LDCs Working Parties and also by the
acceding LDCs themselves. Resolving the issue of accession of LDCs was important for thepreservation of confidence in the WTO and the multilateral trading system.
84. The representative of the European Communities said that substantive points had been made
by Ethiopia. His delegation also shared the concerns expressed about the lack of progress on this
issue. He believed that the Seminar and the Sub- Committee meeting to be held in July focussing
exclusively on accessions was a good idea. He urged all delegations to prepare well for this meetingin order to  examine constructive ideas and fulfill the mandate contained in the Doha Ministerial
Declaration, to which Ethiopia had drawn attention. He sought clarification on the meeting dates of
the Sub-Committee as the Work Programme agreed to in February had scheduled other dates. He
asked whether the meeting in July was an additional meeting that was being scheduled.
85. The representative of the WTO Secretariat clarified that a calendar of meetings was circulated
to delegates earlier this year. This calendar had sought to avoid any duplication and clash of formal
meetings in the WTO. There had, therefore, been some re-arrangement of meeting dates. In 2002
there would be two additional meetings of the Sub-Committee that were now scheduled in July and
November. The proposed date for the next meeting would be discussed later under Other Business.
86. The representative of Mauritania shared the concerns expressed by Ethiopia and other
acceding LDCs. This was an important issue and not much progress had been achieved. This was
despite the fact that the Brussels Conference, the Zanzibar Declaration and Doha Declaration all hadset down guidelines and mandates. Practical measures and a more precise calendar  were needed so
that in the next few months there was some realization of the efforts made in this area.
87. Mr. Cato Adrian from the Accession Division of the WTO Secretariat said that 9 LDCs were
currently in the process of accessions. These were: Bhutan, Cambodia, Cape Verde, Lao PDR, Nepal,
Samoa, Sudan, Vanuatu and Yemen. In addition, Equatorial Guinea, Ethiopia and Sao Tome &Principe were observers to the WTO and were seriou sly considering applying to join the organization.
The broad picture and assessment was that Vanuatu was a very mature accession, the accession of
Cambodia was moving along with considerable moment um and held the promise of concluding in the
next year if not earlier, Nepal had made major advances, and Samoa had also had a very good start
earlier in the year.  This year, it was hoped that the accessions of Bhutan, Lao PDR, Sudan andYemen, and if possible also that of Cape Verde would be activated. He said that there were two
principle objectives of the seminar: i) It would be an opportunity to have an informal and constructive
dialogue between the Members and acceding governments; and ii) it was hoped that these exchanges
would, at the conclusion of the seminar, lead to general recommendations acceptable to all
participants. These recommendations could be part of the report the Sub-Committee would send to theWT/COMTD/LDC/M/28
Page 21
General Council at the end of this year. These recommendations would be particularly important
because in all active LDC accessions the issues raised had evolved around the same themes:
- capacity building;
- the establishment of appropriate implementation and enforcement
mechanisms; and,
- increasing awareness of the multilateral trading system within the public
administration, the business community as well as the public at large.
88. Mr. Adrian said that the bulk of the recommendations from the seminar, therefore, needed to
focus on how technical assistance could be provided to strengthen the development of legislation and
institutions compatible with WTO requirements. He emphasized that although accession to the WTO
viewed as a complex exercise could be seen as an objective in itself, it should not be seen as the
ultimate goal. The overall objective could only be to make the new LDC Members effectiveparticipants within the multilateral trading system so that they could derive the maximum benefit from
their membership.  The period of accession could be used to build a modern legal framework and
related institutional infrastructure in the acceding countries. If countries acceded, and then became
only passive new Members, the accession process w ould largely have failed in its purpose. He
stressed the usefulness of informal exchange of views between WTO Members, who came to theaccession working parties with their requests and expectations, and acceding governments who
responded to the messages from WTO Members.  The seminar was being organized to ensure that the
dialogue between WTO Members and acceding governments would be factual, frank and
constructive. He hoped it would lead to mutually agreed and meaningful recommendations that could
advance accessions and the acceding LDCs capacity to handle WTO matters.
89. The representative of Zambia said that timeframes were a principle that guided work in the
WTO. Setting  timeframes to guide work was commendable. Using the same logic on the process of
accession, why was it that acceding LDCs such as Ethiopia, following good preparations could not be
given an estimate for concluding the accession process. He sought further clarification on what could
be the timeframe for concluding accessions.
90. Mr. Cato Adrian from the Accession Division of the WTO Secretariat said that the fastest
accession to date was less than 3 years. This was in countries such as Kyrgyz Republic and Georgia.
To give an example of LDCs, he said that Cambodia applied for accession in 1994, but the process for
various internal reasons did not really get active at that time. There was serious engagement since the
beginning of last year and from thereon Cambodia had been very committed to the process. The
period between when the accession process picked up in earnest last year until the end of this year or
the first part of next year could be the period required for an LDC like Cambodia to accede. In thecase of Ethiopia, he said that it had not yet formally started the accession process. Without formally
applying for membership there was no Accession Working Party. However, he mentioned that he had
been to Addis Ababa on accession-related work and it was his understanding that the Ethiopian
authorities had done a lot of work to prepare for po ssible negotiations. This preparatory work would
make it possible for the process if it commenced to proceed quite rapidly.
91. The representative of Canada said that in the timetable for the IF Pilot Scheme diagnostic
studies (WT/IFSC/W/11),  two of the LDCs listed  were in the formal process of accession and
Ethiopia was about to join the process. This augured well for capacity building and preparation for the
accession process as the diagnostics could identify what needed to be done and what support was
required.
92. The representative of the United States said that negotiations on accessions to the WTO
provided an opportunity for integrating LDCs into the global economy. The accession process itselfWT/COMTD/LDC/M/28
Page 22
was not simply "membership" and the commitments made in the process would help individual LDCs
to establish a better environment for trade and investment thereby raising standards of living. For
these reasons the United States and other members had chosen not to adopt a "one size fits all"
approach to LDC accessions. The US was committed to improving and accelerating the negotiating
process for LDCs that had signalled their readiness to undertake a protocol package of commitmentsto provide market access and adopt and enforce trade rules. She welcomed the oral report from the
Secretariat on the status of accessions of LDCs. She recognized those currently in the negotiations
process and looked forward to upcoming Working Pa rty meetings for a couple of LDCs. She said that
important progress was witnessed up to Doha most notably with Vanuatu but unfortunately the final
gate was not yet reached. She looked forward to completing that process.
93. The Chairman said that the discussion had been a good preview  for the forthcoming Seminar
to be held back-to-back with the next Sub-Comm ittee meeting in July. The issue of timeframes for
accession and other issues could be further discussed at the July meeting of the Sub-Committee when
the Chairpersons of the LDC Accession Working Parties would also be present.
(v) Support, as appropriate, to Agencies assisting in the diversification of Least-Developed
Countries production and export base
94. The Chairman said that assistance in the diversification of LDCs production and export base
was an important aspect of the Work Programme. This went beyond the competence of the WTO.
However, it was recognized that the work of other multilateral, regional and bilateral organizations
was of direct relevance.  Among multilateral agencies, work on this issue was being undertaken by
ITC, UNDP, UNIDO, UNCTAD and the World Bank among others. In April 2002, the ITC, a joint
subsidiary body of the WTO and UNCTAD held its Joint Advisory Group (JAG) meeting. The issueof support  for the diversification of LDCs' producti on and export base was mentioned at the JAG.  He
requested the Deputy Executive Director of ITC to report on its work in this area.
95. Mr. Joseph Smadja, Deputy Executive Director of the International Trade Centre (ITC) said
that he was making the report on behalf of the Executive Director, Denis Bélisle. One of the main
objectives for ITC was to enhance the delivery of its technical assistance dealing with LDCs’ supplyside constraints with a view to reducing their dependence on a narrow production and export base.
This was in line with paragraph 42 of the Doha Ministerial Declaration, and within the framework of
the IF initiative. ITC provided support to LD Cs’ business community in their export-marketing
efforts. Advice was given on product development and adaptation issues, highlighting value addition.
ITC had identified marketing opportunities for commodities, manufactures and services.  Its aim was
to help develop and market competitive products and services on the world market, thereby
contributing to the expansion and diversification of the LDCs’ export base. ITC aimed at building a
stronger supply capacity in LDCs in selected sectors with export potential, identified through the IF
process, by the Diagnostic Trade Integration Studies and stakeholders’ meetings. The ultimate
objective was to reduce poverty by creating job and income opportunities for the poorest. ITC, in
partnership with the civil society, was reviewing export market arrangements and advising enterprises
and trade support organizations on the formulation of specific export development strategies forlabour-intensive sectors.
96. He quoted specific examples of technical assistance being provided by ITC under the IF Trust
Fund that was aimed at enlarging the export base of selected LDCs:
(a) In Bangladesh, there was awareness-raising of leather entrepreneurs on global market
opportunities and improving their skills on quality management, standards and designwith a view to meeting the requirements of evolving and new markets. A number of
workshops for tanneries, footwear and leather goods companies were being scheduled
in the near future both locally and overseas;WT/COMTD/LDC/M/28
Page 23
(b) ITC was assisting in the formulation of strategies for export diversification of
products and sectors that had good potential, such as agro-processing in The Gambia;
mushrooms and green beans in Tanzania; and, silk and legumes in Uganda. Activities
included, improvements in export production technology and quality management,
training in product conditioning and in marketing;
(c) ITC was strengthening the supply-side responses in Cambodia in three product
sectors, namely, diversified agriculture, fresh water fisheries and handicrafts. These
three sectors were selected following consultations with stakeholders and business
associations.  They would be strengthened through concentrated support in marketing
information, product development and adaptation, quality upgrading, business
networking, and other promotional activities also dealing with investment promotion;
(d) Quality management and marketing advice in fisheries represented the core of the
new ITC project in Mauritania which was the result of its participation in the IF
process. ITC’s contributions to the IF initiative had been designed with specific
objectives in mind. It wanted concrete results by promoting the participation of the
private sector and by using to the largest extent possible locally available expertise.
This would maximize IFTF resources and enhance local capacity. There were alsoefforts to optimize the potential for a broad based coalition of all development
partners.
97.  He noted that ITC's activities and programme that addressed supply-side constraints of LDCs
had mainly targeted agriculture-related sectors that were directly relevant to the export earnings of
LDCs.  The overall approach had intended to trigger a supply response by creating greater awarenessand understanding of market opportunities. In certain cases, ITC was also acting as a broker between
buyers and sellers.  As examples, he mentioned that a buyers-sellers meeting on textile and clothing
would be held in Durban in July 2002, where co mpanies from various LDCs - Mali, Mozambique,
Zambia would participate. Another meeting for West-African enterprises covering foodstuffs would
also take place in the summer. He also mentioned a few of ITC’s global product developmentinitiatives in 2002, which also addressed the specific needs of LDCs.  These were on: i) Hides and
skins: the bi-annual fair of the leather industry “Meet in Africa” which would be held in Tunis in
October, where a number of enterprises from LDCs in Benin, Chad, Ethiopia, Eritrea, Mali would
take part and the commercial contacts of these African suppliers would be broadened. This activity
was the third of its kind – the first two had been held in Cape Town and Casablanca.  ii) Essential oils:
Marketing advice and technology transfer were being provided under ITC projects, which would
allow Burundi and Cambodia to enlarge their export base in the near future. iii) Wood products:Technical advice on product development and business networking covering selected wood products
would be provided to various LDCs from Africa a nd Asia. ITC assistance, particularly to Togo, would
be extended to selected enterprises to develop promotional tools and arrange for their participation in
selected major trade fairs in Europe. v) Spices: Technical workshops on product development and
marketing were to be held in Ethiopia and Madagascar, in cooperation with other partners such as theAmerican Spice Trade Association and the European  Spice Association. Other product sectors where
LDCs export-oriented enterprises would receive ITC support included organic products, coffee,
cashew nuts, crafts, textiles and clothing. He said that with additional resources other initiatives could
be launched to address country-specific supply-side concerns prioritised through the different stages
of the IF process and based on the conclusions of the Diagnostic Trade Integration Studies. It would
allow for the development and implementation of a set of specific activities to individually assist the
new group of 11 LDCs in  the IF pilot phase. Two documents were circulated to Members. They
illustrated the types of activities carried out by the ITC in the context of the Doha Ministerial
Declaration and the Monterrey consensus.WT/COMTD/LDC/M/28
Page 24
98. The Chairman thanked the Deputy Executive Director of ITC for his report on activities
undertaken by the ITC to assist in the diversification of LDCs economies. He noted that in addition to
the bilateral support received, the WTO did support and contribute to the annual budget of the ITC.
99. The Ambassador of Zambia expressed appreciation for ITC's capacity building work oriented
towards the supply-side of trade and for the dive rsification of LDCs production and export base.
Following the discussion on market access, he stressed that the capacity to produce and take
advantage of improved access was critical. The Doha mandate on diversification for LDCs could
translate into concrete benefits if ITC, UNCTAD and other organizations with expertise in supply-
side capacity building and diversification were given more resources. These organizations were given
a special role to play in the Doha agenda as indicated in paragraph 42 of the Doha Declaration. It
would therefore appear appropriate that they should benefit from the money pledged for the Doha
Agenda. It was indicated however at the last JAG meeting that this was not the case. He said that ifITC was not assisted by the money pledged for the Doha Agenda his delegation would suggest that it
received more funding directly into the ITC Trust Funds. It was hoped that a similar level of
generosity that was exhibited in the fund-raising for the Doha mandate would also be exhibited
towards ITC. He asked what plans there were to assist organizations such as the ITC in terms of their
resource needs. He sought clarification from the Sub-Committee on this matter.
100. The representative of Mauritania thanked Mr. Smadja for his report and said that ITC did
offer valuable support. The project in Mauritania that had been mentioned as an example for the
establishment of a fisheries promotion centre could be truly deemed as a project for the diversification
of exports. It would enable his country to transform fisheries products representing more than 50
percent of Mauritania's exports. Mauritania would have better access to market information,particularly as far as prices were concerned. There would also be constructive partnership between the
State and the private sector. The ITC project was assisting the 1998 new government policy to
transform and give value addition to fishery products before their export and bring the fishery sector
closer to the national economy. His delegation stated that this project should receive the required
funding either through the IFTF or from other sources. The point made by Zambia was relevant in thisregard as it would enable concrete work on diversification.
101. The representative of Canada said that as the current donor coordinator for the JITAP
programme and the ITC she was speaking on behalf of the donors. She said that there were two trust
fund windows within ITC that were and continued to be generously funded by donors. There was also
the JITAP programme which operated in Africa th at was currently funded to the tune of US$ 10
million. JITAP operated with the collaboration of the three organizations – ITC, UNCTAD and the
WTO. The various Trust Funds provided significant funding for the ITC in addition to the corefunding which it received from the UN and from the WTO. The Doha Development Agenda funds in
her view and as had been decided in other meetings was for the technical assistance plan of the WTO.
There were also other windows of funding. The IFTF had two windows, one was for the diagnostics
and the second was the follow-up programmes from the diagnostics. Cambodia had already taken part
and Mauritania would follow. The IFTF had received generous funding from donors. The IF coreagencies, including the ITC could take advantage of these windows. There was in place a mechanism
to ensure that the funding needs were being me t and that donors were putting money forward into
these windows.
102. The representative of European Communities said that the representative of Mauritania had
made some pertinent points. Work in this area was important and would be looked at very carefully.
103. The representative of Bangladesh said that so far only ITC had reported under this agenda
item. He suggested that other relevant agencies could also be invited to report under this item. The
importance of the diversification of the LDCs production and export base was illustrated in the
Secretariat Note (WT/COMTD/LDCW/26). In the not e it was mentioned that LDCs usually depended
on a narrow range of primary commodity exports and that this limited their scope to participate moreWT/COMTD/LDC/M/28
Page 25
effectively in world trade. Many African LDCs as  single commodity exporters dependent on a small
basket of exports had experienced negative growt h. Even Asian LDCs that had managed to increase
their trade performance were dependent on 1 or 2 manufactured exports. This indicated the need for
diversification of LDCs production and export base. He urged the international community to come
forward to assist technical assistance projects that addressed this concern.
104. The representative of Canada said that the TA database that was being developed by
September would also be of benefit for discussions. It had 3 sections, with the first section on the
immediate negotiations and WTO related training. The second was on supply-side assistance. A full
picture would be available on what all the bodies and donors were doing in terms of export
diversification programmes. Once the database was established there could be further discussion.
105. Mr. Joseph Smadja, Deputy Executive Director of the International Trade Centre (ITC)
thanked Members for their appreciation of ITC's work. Donors had made generous contributions to
the ITC through a series of Trust Funds. Needs far exceeded resources available though this was not
specifically the case for assistance in the area of trade promotion but was rather valid for all aspects of
development assistance. ITC was also working to identify information to be put into the Database that
Canada had referred to. ITC would be providing the requested information by the deadline set in July.
The database would give a full picture of assistance delivered by ITC in the supply-side area.
106. The representative of Uganda sought a clarification from the representatives of the World
Bank or IMF. He said that on this agenda item the World Bank and IMF, were among the agencies
considered relevant for providing support to LDCs in the diversification of their export and
production base.  ,. However, some of the policies that were espoused by the World Bank and IMF
sometimes had a negative effect on the export and production base of LDCs. Policies such as cuttingdown of public spending sometimes implied that LD Cs could not give support to fledgling industries
that could help diversification. Possible government support to the agriculture sector was also
sometimes affected. Policies such as liberalization across the board also did have a negative effect on
exports and some industries. He sought clarification from the Bank and the Fund as they were
expected to assist LDCs in their diversificati on. Their policies however were sometimes undermining
these efforts.
107. The representative of the International Monetary Fund said it was important to comment on
the remarks made by Uganda. The IMF had a very broad programme of cooperation with LDCs and
the specifics of IMF's cooperation with each particular country would need to be looked at in each
case. The overall approach would be to promote im proved coherence in policy-making in LDCs and
their contacts with the Bretton Woods institutions. For example, in the discussions on market access,
he had wanted to bring to the attention of Members that the IMF was also preparing a market accessstudy which included extensive coverage of LDCs. This was being prepared for the Fund's on-going
surveillance of economic, fiscal and monetary policies. He offered to make a statement at the next
meeting of the Sub-Committee to inform Members of the range of the IMF's activities in this area.
108. The representative of the World Bank supported the comments made by the IMF. He said that
some of the issues raised could be discussed further on a bilateral basis. He also offered to make a
statement at the next meeting of the Sub-Committee. The impact of structural adjustment programmes
on government budgets had in the current approach been given a lot of attention. The poverty impact
of the lending instruments and the policies recommended were being examined. This was being
addressed in the PRSP process. There was attention be ing paid to issues such as the impact of fiscal
policy on macroeconomic stability as well as the impact of the various expenditure programmes.
109. The Chairman proposed that the Sub-Committee take note  of the report and statements made.
As encouraged by the representative of Bangladesh and others he intended to invite other agencies
with competence on this aspect of the Work Programme to provide reports to the Sub-Committee.WT/COMTD/LDC/M/28
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110. It was so agreed.
(vi) Mainstreaming, as appropriate, trade-related aspects of the LDC-III Programme of Action
111. The Chairman stated that the adoption of the Work Programme for LDCs, as mandated in
paragraph 42 of the Doha Declaration, was a step in the direction of mainstreaming, as it sought to
assist LDCs in their meaningful integration into th e multilateral trading system. He said that Members
would agree on the importance of regular monitoring and reporting of these commitments as
envisaged under different elements of the LDC work programme. He proposed that this work
continued to be regularly monitored by the Sub-Committee under an agenda item entitled: "Follow-up
to Ministerial Decisions/Declarations." Members could report on measures taken in fulfilment of
these Decisions and Declarations such as the High Level Meeting; Brussels Conference; and WTO
Ministerial Declaration and Decisions.
112. It was so agreed.
113. The representative of Zambia apologised for taking the floor after the closing of the item. His
delegations' perception was that under this item Members could be moving towards some agreement
on some modalities. For instance, for negotiating as far as LDCs were concerned the binding
instrument for the preferential market access gran ted for LDCs. He sought clarification on how the
Sub-Committee would continue to monitor how mainstreaming of the LDC-III Programme of Action
was being undertaken and what mechanism was being put in place to allow for future reporting.
114. The Chairman said that his suggestion merely reflected what had already been agreed upon in
the WTO Work Programme for LDCs (WT/CO MTD/LDC/11) adopted on 12 February 2002. In
paragraph 21 of the document it stated that "the Sub-Committee shall establish an item on its agenda
entitled: "Follow-up to Ministerial Decisions/Declarations" where Members will be invited to reporton measures taken in fulfilment of these Decisions and Declarations". It was precisely this agreement
that he had proposed to confirm at the meeting. It was not his intention to go beyond what had been
agreed to in February 2002.
115. The representative of Zambia drew attention of Members to paragraph 13 in section (d) of the
LDC work programme. The last sentence of that paragraph stated that "the Sub-Committee shall
accordingly consider possible means of implemen ting these elements" and would "monitor, review
and report". If it was the view of the Sub-Committee that it could consider these elements at another
sitting the proposal was acceptable to his delegation. This was a task that still had to be established
and which constituted an important element of the work ahead.
116. The Chairman said that it was his understanding that the delegate from Zambia wanted
examination of section (d) and paragraph 13 of the Work Programme. He had made his proposal on
this agenda item pursuant to this. At this or at a future meeting the delegate from Zambia wanted todiscuss the implementation of these elements. If this was acceptable he would also consult with the
Secretariat for a discussion at one of the future meetings. Under the agenda item on the "Follow-up to
the Ministerial Decisions/Declarations" that had been agreed to, Members could report and in
particular discuss implementation measures.
117. It was so agreed.
C. OTHER BUSINESS
118. The Chairman proposed that the Sub-Committee meet for its 29th Session in the afternoon of
16 July 2002. Participants of the Seminar on Accessions would be in Geneva and this would enable
acceding LDCs including the Non-Residents among them to participate at the session.WT/COMTD/LDC/M/28
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119. It was so agreed.
120. The representative of the European Communitie s said that he had wanted to informally
suggest that the Sub-Committee's proceedings focus on one or two issues of the work programme at
each meeting. He noted that as developments unfolded this was being done because there was now a
Sub-Committee meeting with focus on accessions in July. If the study was circulated on marketaccess he expected a major discussion on the issue in November. Capacity building was another issue
to be looked at. There was merit and possibility of  better preparation by focussing discussions on one
or two subjects of the work programme at each meeting. He did not wish to raise a procedural debate
on the matter. Other elements could stay on the agenda but there would be an understanding that
discussion would focus on a few elements rather than the whole list each time. This would also give
more direction to the work of the Secretariat.
121. The representative of United States supported the EC  on its proposal and said that it would be
the most practical and manageable way to proceed. The US would focus more carefully on each of the
items of the Work Programme. She looked forward to reactions on this proposal from LDCs.
122. The representative of Canada supported this approach fully and suggested that the substantive
discussion on capacity building take place after the receipt of the first draft of the database so that
there could be good discussion on the issue. She hoped that this database would be available bySeptember 2002.
123. The representative of Mauritania supported the proposal made by the EC and said that it
would be useful if it was decided in advance what issue in the work programme was to be focussed
on. For example if it was on capacity building there was need for a document to be prepared by the
Secretariat to give the state of play. Similarly on market access there was need to prepare in advance.He was convinced that the Secretariat had taken due note of this.
124. The Chairman thanked the European Communities delegate for the suggestion and said that it
had been his intention at future meetings to focus on a few issues of the work programme at a time.
The next meeting would concentrate on accession is sues. Future meetings would similarly focus more
precisely on one or two main items.
125. In the absence of any other business, the meeting was adjourned.
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