WORLD TRADE  
ORGANIZATION   
WT/L/566 
24 May 2004 
 (04-2227) 
 Original:   English/ 
 French 
  
 
DAKAR DECLARATION OF THIRD LDC TRADE MINISTERS’ MEETING 
 
Dakar, Senegal, 4-5 May 2004 
 
Communication from Tanzania 
 
 
 The following communication, dated 17 May 2004, is being circulated at the request of the Delegation of Tanzania.  
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DAKAR DECLARATION OF THIRD LDC TRADE MINISTERS’ MEETING 
 
  We, the Ministers responsible for trade of th e Least-Developed Countries, meeting in Dakar, 
Senegal, from 4 to 5 May 2004, to take stock, review progress and exchange views on developments 
in the WTO negotiations after the 5th WTO Ministerial Conference which took place in Cancún Mexico from 10 to 14 September 2003,   
1. Re-affirming  our commitment to the multilateral processes guided by the principles and 
objectives stipulated in the Marrakesh Agreement Establishing the World Trade Organization for the 
creation of a rules-based trading system that takes account of the development needs of the 
Least-Developed Countries, and ensure that they  secure a share in the growth of world trade 
commensurate with the needs of economic development,  
2. Further reaffirming  the LDCs common negotiating positio n for the Doha Round spelt out in 
the Dhaka Declaration (Document WT/L/521) a dopted during our Second Meeting which took place 
in Dhaka, Bangladesh, from 31 May to 2 June 2003 to prepare for the Fifth WTO Ministerial Conference,    
3.  Concerned  about the continued marginalization of  LDCs in world trade,  
 4.  Encouraged  by the observed desire among WTO Members since Cancún to further carry 
forward the negotiations,  
5. Call upon  the Members of the WTO to fully take into account the interests and development 
needs reflected in the LDCs Dhaka Declaration, and urge Members to take into account the realities of 
LDCs and agree on the following:  WT/L/566 
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Agriculture 
 
6. Agriculture is the backbone of the LDCs ec onomies.  This sector provides employment and a 
livelihood for over 60 per cent of the labour for ce, and for some LDCs, agricultural products 
constitute more than 70 per cent of exports.  LDCs c onsider that, in view of the current situation of 
negotiations, their concerns as expressed in the Dh aka Declaration are still topical and relevant.  
Whereas the Derbez Text takes on board the LDCs concern regarding the exemption from reduction 
commitments, we furthermore, submit the following proposals:     (a) Developed countries shall provide bo und duty-free and quota-free market access for 
all products originating from LDCs.  Furthe rmore developing countries are also urged 
to extend such facilities to products from LDCs; 
  (b) Members shall exercise restraint in applying TBT (technical barriers to trade) and 
SPS (sanitary and phytosanitary) measures to  products from LDCs.  Technical and 
financial assistance shall be provided  to LDCs for improving agricultural 
infrastructure, productivity and diversifi cation for development of facilities and 
systems for compliance with the SPS and TBTs requirements for exporting 
agricultural commodities; 
  (c) Erosion of preference margins due to MFN tariff reductions shall be offset by 
establishing compensatory and other appropr iate mechanisms, including measures 
that promote exports from LDCs;  
  (d) The elimination of export subsidies that are provided by developed countries to 
products of export interest to LDCs shall be on a fast-track basis; 
 
 (e) The fast and substantial reduction of domestic support measur es which impede the 
exports of LDCs, shall be achieved through the establishment of accurate criteria and 
a ceiling of the green box as well as phasing out the blue box and the amber box; 
  (f) Food aid provided by Members to meet emergency situations, and humanitarian and 
development objectives, and to address the chronic food deficit situation in LDCs 
shall be allowed. 
 
Cotton 
 7.  Cognisant  of the role of cotton as a critical industry within the agriculture sector in the 
economy of LDCs, particularly those in the West , East and Central regions of Africa where it 
contributes substantially to the GDP, total export ea rnings as well as in promoting rural development, 
employment and poverty reduction,  8. Deeply  concerned  about the adverse effects of domestic  support and subsidies granted to the 
production and export of cotton by some devel oped countries that cause distortions in the 
international trade of this product and undermine trade opportunities and worsen economic and social 
situation of LDCs that are cotton producers and exporters. 
 9. We urge  Members of the WTO to expeditiously co nsider adopting the proposals submitted to 
WTO by the proponents of the Sectoral Initiative on Cotton as contained in Document WT/GC/W/516 
of 7 October 2003.  These proposals stress the following:   (a) The complete elimination of export s ubsidies over a period of three years and the 
elimination of production-rela ted domestic support over a period of four years, in 
each case as from 1 January 2005.  WT/L/566 
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 (b) The setting up of a cotton sector support fund.  10. We welcome  the results of the WTO Regional Workshop held in Cotonou from the 23 to 24 of 
March 2004 and recommend that the conclusions of this meeting concerning the development aspect 
of the Sectoral Initiative on Cotton be implemente d expeditiously so that the cotton sector is 
reinforced within all cotton producing LDCs. 
 11. We also  strongly believe that the global and effectiv e response to the request contained in the 
Sectoral Initiative on Cotton must also take into account the trade aspects through the adoption by the 
WTO of a decision aiming at the elimination of  domestic support and subsidies granted to the 
production and export of cotton.   
 12. We remain open and flexible to ways and a pproaches likely to resolve the various aspects of 
this issue and we expect, from the concerned countr ies, concrete proposals to resolve urgently the 
problems raised in the sectoral Cotton initiative. 
 
Non Agricultural Market Access (NAMA)  
 
13. Deeply  concerned about continued ma rginalization and declining share of their world trade 
LDCs  emphasize that the Doha Work Progr amme, including the negotiations on NAMA, shall 
contribute to the effective improvement for market access in favour of LDCs, in particular by 
encouraging their industrialization,  
 14.  Whereas the Derbez Text takes on board th e LDCs concern regarding the exemption from 
reduction commitments, we furthermore submit the following proposals:  
 (a) Developed countries shall provide bo und duty-free and quota-free market access for 
all products originating from LDCs within th e year 2004, with realistic, flexible and 
simplified rules of origin, which takes into  account the industrial capacity of LDCs, in 
order to increase their share of world trade.  Developing countries are also encouraged to extend such facilities to products from LDCs; 
 
 (b) Erosion of preferential margins due to MFN tariff reductions shall be offset by 
establishing compensatory and other appropr iate mechanisms to fully address the 
impact of erosion of preferences, incl uding measures that promote exports from 
LDCs; 
 
 (c) LDCs underscore that negotiations on NTBs should commence as soon as possible 
and be dealt with by the NAMA Group. As an early harvest, LDCs want a moratorium on all contingency measures th at include antidumping actions against 
export of LDCs. 
 
Commodity Issues 
 
15. We note  the heavy dependence of LDCs on a few commodities and the adverse effects of 
persistent decline and sharp fluctuations in comm odity prices and urge members to address the trade-
related issues in the on going negotiations. 
  Special and Differential (S&D) Treatment 
 
16. We recall the Doha mandate on S&D Treatme nt and reaffirm the proposals submitted by 
developing countries, including those of LDCs, ai med at strengthening the special and differential 
treatment  provisions and to make them more precise, effective and operational. WT/L/566 
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17. We are concerned that Annex C of the Derbez Text, is not a substantial package as most of 
the proposals contained therein are of no economic value and do not provide sufficient policy space 
for LDCs.        18. We are further concerned about the lack of progress on S&D issues in the Doha work 
programme. 
 19. We submit the following proposals for the way forward:   (a) All the S&D Treatment shall be c onsidered in the Committee on Trade and 
Development Special Session, to allow the fu ll participation of  LDCs in the work. 
  (b) All Agreement-specific proposals be addr essed as a matter of priority.  A specified 
timeframe shall be established in order to make all the S&D provisions more precise, 
effective and operational.  
 
Implementation-Related Issues and Concerns 
 
20. We express deep concern about the continued lack of progress in the implementation issues 
and remain convinced that appropriate solutions to the implementation-related issues and concerns 
shall contribute to LDCs increasing integration in to the multilateral trading system.  We therefore 
urge members to complete the work on th ese issues as a matter of priority.   
 
Trips and Public Health 
 
21. We call upon Members to expeditiously im plement the Decision of the General Council 
adopted on 30 August 2003 on the TR IPS Agreement and Public Health. 
 
Services 
 
22. We welcome the Decision on the Modalities for the Special Treatment for LDCs Members in 
the Negotiations on Trade in Services, adopted on 3 September 2003; 
 
23. We call upon members to fully take into acc ount these modalities in the current request and 
offer process so that LDCs can benefit from market access opportunities and capacity building as 
stipulated in the Decision as well as ensuring appropriate flexibilities in their commitments. 
 
24. We further call upon members to provide impr oved offers in favour of LDCs in Mode 4, 
particularly for less skilled persons.  
Singapore Issues 
 
25. We take note of the developm ents regarding Singapore issues at and after Cancún.  The LDCs 
reiterate their position to keep out of the Doha work programme the three Singapore issues namely: 
the Relationship between Trade and Investment; the Interaction between Trade and Competition 
Policy; and Transparency in Government Procurem ent.  In respect of trade facilitation the LDCs 
propose the following approach:  
 (a) Work on clarification of various aspects of  this issue should continue.  However, this 
work should be carried out in parallel with other segments of the Doha work programme of interest to LDCs. 
  (b)  After the completion of the clarificati on process, a decision would need to be taken 
on the modalities, by explicit consensus, before negotiations can commence.  WT/L/566 
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Modalities should include, among others, the adoption of a provision whereby LDCs are exempted from WTO dispute settlement action.  
  (c) Commitment for technical and financia l assistance should be ensured to LDCs to 
conduct studies to assess the implications a nd meet the costs of implementation of 
trade facilitation measures, 
 
WTO Rules 
 
26. We are concerned about the extreme use of anti-dumping measures against LDCs by both 
developed and developing  countries.  LDCs cannot contest these measures for lack of resources and 
we therefore call upon Members:   (a) To review the rules on anti-dumping & countervailing measures in order to prohibit 
their application to LDCs` exports. 
 
 (b) To adopt simplified procedures for LD Cs for investigation of imposition of anti-
dumping and countervailing measures agains t imports into their territories. 
 27.  Recognizing  that subsidies applied by LDCs may play an important role in economic 
development and poverty alleviation programmes in  these countries, we further call upon Members: 
 
 (a) To treat as non-actionable, subsid ies required by LDCs for development, 
diversification and upgrading of infant industries. 
  (b) To treat as non-actionable, subsidies provided by LDCs for   research activities, 
adaptation of new environmental require ments and development of industries. 
  (c) To grant exemption from export competitiv eness thresholds, export subsidies applied 
by LDCs 
 
Accession 
 
28. We urge members to fully and faithfully implement the LDCs Guidelines on accession of December 2002 without seeking excessive and st renuous commitments from these countries or 
denying them rights being enjoyed by the founding LDCs  Members of the WTO.  Integrated Framework 
 
29. We recognize that the Integrated Framework (IF) is a potentially viable instrument for 
enhancing LDCs’ supply capacities,   30. We recall that the Doha Ministerial Declarati on urges the core agencies involved in the IF to 
address supply side constraints of LDCs, in partic ular diversification of LDCs’ production and export 
base and we propose that:   (a) The IF Trust Fund needs to be substantia lly supplemented in order for the Fund to be 
effective in supporting the projects in LDCs th at have long term development benefit.  
The DTIS is an important first step to identify priority projects, and that follow up 
and implementation should be  given equal importance.  
  (b) In this regard, coverage of Diagnosti c Trade Integration Study (DTIS) should be 
widened to all the LDCs.  
 WT/L/566 
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31. We note  with appreciation the recent initiative of th e donor community to increase the level of 
funding under Window II following the second IF eval uation early this year. Therefore we propose 
that:   (a) An early implementation of Window II and follow up of the DTIS should be an 
integral part of the IF process.  
  (b) The process for implementation of proj ects identified by the LDCs DTIS Action 
Matrices should be simplified, and granted sufficient funding particularly for trade 
related infrastructure.  
 
 (c) IF should constitute an effective mechan ism with sufficient funds to address supply- 
side constraints.  
  (d) Development partners shall enhance s upport to LDCs’ efforts aimed at improving the 
participation of the private sector and other stakeholders in the IF process/ 
programmes so that supply-side constraints are appropriately addressed. 
 32. We further noted with gratitude the supportiv e contribution of other organizations such as 
UNIDO towards addressing LDCs supply-side constr aints and propose extension of the composition 
of core agencies to include  such agencies.     
 
UNCTAD XI 
 
33.  We reaffirm the important role of UNCT AD as the principal forum of the UN for the 
integrated treatment of trade and development and interrelated issues in the areas of finance, 
investment, technology and sustainable development.   In this context, UNCTAD XI provides a unique 
opportunity for reinvigorating this role, and in particular, for strengthening coherence between 
development and trade.  
Appreciation 
 34. We express  our appreciation to the Government and the people of Senegal for organizing and 
hosting this meeting and for the hospitality and exce llent facilities put at our disposal, which ensured 
successful deliberations.  We also thank the Secr etariats of UNCTAD, WTO, AITIC, World Bank, 
other bilateral and multilateral Deve lopment Partners for providing fi nancial and technical support.  
Thanks are also extended to the United Nations Under-Secretary General in charge of LDCs and 
SIDCs for supporting the concerns of the LDCs w ithin the multilateral trading system with vigour. 
  
Done at Dakar, this 5th day of May, 2004 
 
 
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