RESTRICTEDWORLD TRADE
ORGANIZATIONWT/COMTD/M/21
8 July 1998
(98-2703)
Committee on Trade and Development
Twenty-First Session
NOTE ON THE MEETING OF 19 JUNE 1998
Chairman:  H.E. Mr. I.A. Chowdhury (Bangladesh)
A. Adoption of the Agenda
1. The Committee adopted the provisional agenda contained in WTO/AIR/845.  Four items were
placed under "Other Business".
B. Review of the application of special provisio ns in the multilateral trading agreements and
related Ministerial Decisions in favour of developing country Members, in particular least-
developed country Memb ers (WT/COMTD/W/35)
2. The Chairman recalled that the Secretariat had prepared document WT/COMTD/W/35 as
background material to provide delegations with comprehensive information on actions taken
pursuant to WTO provisions in favour of devel oping country Members.  The Committee had held an
initial exchange of views on this subject at its last meeting, and the Chairman had conducted informal
consultations at which two issues had arisen.
3. First, there was concern, among developing and developed country Members alike, about
problems that the developing countries, in particular the least-developed among them, may haveencountered in implementing their Uruguay Round ob ligations within the special transition periods
that had been provided.  The Chairman reminded delegations that problems encountered in the course
of implementation was an issue to which individu al Ministers, at the recent WTO Ministerial
Conference had referred.  In addition, paragraph 8 of the Ministerial Declaration stated: "When we
meet at the Third Session we shall further pursue  our evaluation of the implementation of individual
agreements and the realization of their objectives.  Such evaluation would cover, inter alia , the
problems encountered in implementation and the consequent impact on the trade and development
prospects of Members". Also, the Director-General made reference to this issue in his Report to
Ministers on the High-Level Meeting for the Least-Developed Countries: "Without a strong
commitment by WTO Members to finance in the budg et the growing needs of technical assistance in
an appropriate way, the essential objective  of implementation of commitments made in the Uruguay
Round, especially by the developing  and least-developed countries, could be in serious jeopardy".
4. Second, informal consultations showed that some  delegations believed it would be useful for
the Committee to discuss the issue of "special and differential" treatment (S&D) not only in the
context of the implementation of various provisions in individual WTO Agreements, but also at abroad, conceptual level.WT/COMTD/M/21
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5. The representative of Morocco said his delegation attached importance to the implementation
of S&D provisions in the WTO agreements and in special Ministerial Decisions in favour of
developing countries, in particular the least-developed.  These provisions were integral parts of the
Agreements and Decisions and were intended to strike a balance between countries at different levels
of development.  His delegation welcomed the Secretariat document, and had observed from it that alarge part of these provisions had not been implemented, and in fact could not be implemented.
6. He proposed that the Committee should move to a new more analytical stage of its work, and
proceed to a real evaluation of the S&D provisions.  The evaluation should aim at three objectives.
First, the Committee, with the assistance of the Secr etariat, should assess the difficulties encountered
by developing, least-developed and developed countri es in the implementation of the S&D provisions.
Second, the real impact and the real implications  of these provisions on the trade and economies of
developing countries should be evaluated to determine whether the expectations held at the time theprovisions had been adopted had been met.   Third, there should be an assessment of the concept of
S&D, the extent to which the concept had been well established, its relevance, and any scope for
improvement in the light of rapid changes in the structure of international trade relations. If the
concept was no longer relevant, then the initial expectations would not be met and the risk of
marginalization would increase. Evaluation was essential.  Such evaluation could be conducted withSecretariat proposals and with the assistance of other international organizations such as UNCTAD.
In this regard, his delegation recalled, as an instructive example, the joint WTO/UNCTAD study on
tariff peaks and tariff escalation.
1
7. The representative of Egypt supported Morocco's view that the Committee should move to
another phase, and Morocco's proposals that the concept of S&D treatment should be evaluated,
inter alia , at a broad conceptual level. His delegation attached value to an analytic study by the
Secretariat to follow-on from WT/COMTD/W/35 to evaluate the implementation of S&D treatment
and the extent it had achieved its specific objectives. His delegation envisaged conclusions and
recommendations in order to enhance the implementation of S&D provisions for developing
countries.
8. The representative of India endorsed the statement and three proposals of the Moroccan
delegation.  His delegation drew attention to paragraph 5 of the Ministerial Declaration which referred
to the work of the Committee, and the agreement of the Ministers on the need for effective
implementation of S&D provisions.  In this context, the proposal by Morocco was relevant and
urgent.  The Committee should move beyond factual studies as provided in WT/COMTD/W/35.  To a
large extent, it should be noted, that the S&D provisions built-in to WTO Agreements had not been
implemented.  His delegation felt that an analytic study prepared by the Secretariat with inputs fromUNCTAD would assist the Committee on Trade and Development in responding to the concern in
paragraph 2 of WT/COMTD/W/35 which stated that, " .. the Secretariat has not found it possible to
insert meaningful information on the implementation of the provisions: that is the case most
particularly for provisions of a preambular nature, and for provisions that call on Members
autonomously to take account of the trade interests of developing country Members in the course ofimplementing the WTO Agreements".  Against this  background, his delegation proposed, as part of
the exercise to be undertaken by the Secretariat, that developed country Members should provide the
Committee with information on measures that they had taken autonomously to take account of the
trade interests of developing country exports.  His delegation also referred to the paper on tariff peaks
and tariff escalation, prepared by the WTO and UNCTAD, as providing a good example of the kind ofanalytical paper that was needed.  His delegation was of the view that the preambular language in
WTO Agreements, including the preambular language from the WTO Agreement, were integral parts
of the balance of rights and obligations of WTO Members, and his delegation supported the proposal
                                                     
1 The Post-Uruguay Round Tariff Environment for Developing Country exports, UNCTAD/WTO Joint
Study, (TDB/B/COM.1/14).WT/COMTD/M/21
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for a broad conceptual discussion which focussed on how to give effective meaning to these
provisions.
9. He noted the views expressed regarding difficulties for developing as well as developed
countries in the implementation of S&D provisions and said it would be useful to determine why
developed countries faced problems in implementing these provisions. His delegation suggested thatthese problems could be addressed in the analytical study to be prepared by the Secretariat, and
proposed that the Chairman undertake informal consultations to move the process forward.
10. The representative of Bangladesh, on behalf of the least-developed countries, supported the
statements and proposals by Morocco and India.  Bangladesh believed that there was a legal and
practical necessity to undertake the evaluation and analysis that had been requested because full
implementation of the special provisions was essential to the integration of the least-developed
countries into the multilateral trading system.  Although the Secretariat Note WT/COMTD/W/35 hadpointed out that preambular language could not be meaningfully applied, yet they constituted integral
parts of the WTO Agreements.  The implementation of the special provisions was a matter of vital
interest for Bangladesh.  It was essential to determine the reasons why developed countries could not
implement the special provisions, and to identify the areas of difficulties.
11. The representative of the United States said his delegation had mixed responses to the three
proposals by Morocco.  The proposals were useful because they helped to focus on further work. On
the first issue, it was clear that all countries face d challenges in implementing the special provisions.
In this connection, further discussions would be fruitful because it would identify the difficulties,
highlight the concerns and frustrations of both developed and developing countries in failing to
implement certain provisions.  His delegation considered that it was not the job of the Secretariat tocollate such matters. Members should state their specific concerns.  The task of assessing and
evaluating was for Members, not for the Secretariat.
12. His delegation requested more precision on the second Moroccan proposal to evaluate the real
impact of S&D provisions.  The Secretariat had provided information and data, to the extent available,
on the potential impact of the provisions with regard to tariffs on developing countries and theireffects on their trade.  His delegation wondered what more could be done in this regard.
13. He was sceptical about the third proposal to redefine and re-work the concept of S&D.  Time
was required for reflection.  There could be counterproductive implications to such broad, generic
discussions, as in the 1980s.  They could produce a North-South divide, and inhibit progress by both
developed and developing countries.  He consid ered that the S&D discussion could be more
productive if focused on specific issues and situations.  The parameters of the discussions would be to
determine if the S&D provisions in the WTO Agreements were workable, and, if they were not, howthey could be improved. The Committee should avoid controversy, and understand that there were
limitations on tasks for the Secretariat as opposed to what Members could do.
14. The representative of the European Communitie s said more time was needed to reflect on
Morocco's proposals.  However, her delegation welcomed the proposal in relation to its intention to
focus on the issue of implementation.  The European Communities were committed toimplementation, which was an essential part of WTO operations.  To this end, difficulties that arose
should be addressed.  In order to be effective, her delegation was in favour of focusing on specific
issues and identifying particular problem areas as opposed to open-ended general discussions.  Her
delegation would contribute actively and positively to the process and welcomed the consultations to
be undertaken by the Chairman.
15. The representative of Canada underscored the importance of implementation, including the
implementation of S&D provisions to ensure that th e benefits of the multilateral trading system wereWT/COMTD/M/21
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widely shared.  Her delegation noted that the importance of implementation had been underscored at
the First Meeting of African Trade Ministers, as contained in the Report of that meeting, circulated by
the Permanent Mission of Zimbabwe in WT/COMTD/W/43.  Her delegation urged other developing
countries to follow the example of African c ountries in conducting national assessments of the
implementation of the Uruguay Round Agreements.  This was an essential first step in addressing thesubject of implementation, and thereafter in determining what further steps would be required.  Her
delegation expressed an interest to participate in the informal consultations by the Chairman.
16. The representative of Switzerland stated a preference for pragmatic approaches to problem-
solving on a case-by-case basis.  The problems addressed should be brought to the Committee by the
affected countries.  In response, therefore, to Morocco's proposal for a more analytical and conceptual
exercise, her delegation preferred avoiding an abstra ct exercise and also avoiding a confrontational
exchange of views.  The Moroccan proposals required further reflection, and her delegation supportedinformal consultations to further address the proposals.
17. The representative of Tanzania supported the Moroccan proposal that the Committee should
go beyond factual reporting of the implementation of special provisions and evaluating their impact,
and also supported Bangladesh, on behalf of the least-developed countries for a mechanism to
evaluate implementation.  The Secretariat needed to take note of this concern.  He supported theposition of the United States that the Committee should not rush into an overall evaluation of the
special provisions, but proceed cautiously.  Fundamental questions could arise, such as who qualifies
for S&D, which could be counterproductive.  Tanzania emphasised that while the current discussions
focused on implementation with regard to S&D, there was a need to focus on the overall problems
regarding implementation, and thereupon search for solutions.  This approach had been mandated bythe Ministerial Conference. Problems and difficulties should be identified and collated by the
Secretariat, and then discussed at the level of the General Council.
18. The representative of Japan stressed the importance which his delegation attached to the
special provisions, and to the implementation of WTO Agreements in the era of globalization.  While
a basis was required for further work, the Secretariat could not be expected to prepare every sort ofanalysis.  Some types of analysis needed to be Member-driven.  To this end, his delegation would like
to determine from developing countries and least-developed countries what particular issues they
would like to study. The Committee must avoid c onfrontation in its discussions.  His delegation
desired to participate in the informal consultations by the Chairman.
19. The representative of Mauritius underlined the vital importance of implementation
particularly the provisions in favour of developing countries, and to this end welcomed the proposals
by Morocco.  He favoured the caveat by the United States and Tanzania on the need to proceed withcaution.  His delegation had noted that in all declarations and Ministerial statements, developing
countries had stated that they were encountering problems with regard to implementation.  However,
it was the duty of developing countries to identify concrete areas and submit proposals where they
were having problems.  Thereupon, consideration would be given to possible solutions, improvements
and adjustments.  His delegation would like to be part of the informal consultations.
20. The representative of Norway emphasised that although his delegation did not disagree with
the Moroccan proposals to evaluate the impact of the special provisions, nonetheless it preferred a
modified approach in which concerned countries, particularly developing countries, outlined their
concrete experiences.  Such experiences would enable the Committee to advance its work.  The
Secretariat should not be overburdened, and there should be an appropriate division of work betweenthe Secretariat and Members. He requested the Moroccan proposal in writing.
21. The representative of Brazil stressed that sharper focus and attention to specific issues
constituted the best way forward for achieving concrete results. Small delegations needed to haveWT/COMTD/M/21
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more light shed on the implementation of the results of the Uruguay Round because the
implementation of the special provisions related to the balance in the implementation of the Uruguay
Round Agreements and the compromises made in the negotiation of these Agreements.  The concerns
of developing countries should not be ruled out.  If developing countries wanted a broader debate,
their preference for this approach should be accommodated.  Brazil had noted that several countrieswanted an ambitious agenda for the next trade r ound.  These countries should note that others wanted
a proper assessment of the status of implementation before proceeding further.  His delegation was
convinced that the informal consultations by the Chairman would be productive, and Brazil desired to
participate.
22. The representative of Mexico requested that the Moroccan proposal should be circulated in
writing.  Matters pertaining to development were controversial in international trade.  In order to
undertake the analysis that had been requested, the starting-point must be development-friendly.  The
Committee needed to understand the different approaches and gain from the experiences of other, for
instance UNCTAD.  UNCTAD had considerable experience in development, and could make useful
contributions to the analysis envisaged.  It was also necessary to consider the development impact of
the S&D provisions.  The Committee was now moving to a new stage of its work, and needed to take
a broader view.
23. The representative of Pakistan expressed support for the Moroccan proposals, and associated
his delegation with the statements made by Egypt, Bangladesh and India.  Pakistan supported the
request for an analytical study by the Secretariat which would be useful, inter alia , through its
identification of problems of implementation in various countries in particular with regard to the
application of S&D provisions.
24. The representative of Australia iterated two specific principles underpinning its position.
First, the work of the WTO should be Member-driven.  To this end, contributions by Members should
identify issues and focus on particular problems given the large scope of issues in the area under
consideration.  Second, the Committee should proceed cautiously, sensibly and with perspective.  The
work of the Committee should be anchored on concrete experiences, practical issues, and clearquestions.  This would ensure the most constructive and productive discussions possible and yield real
results.  Her delegation expressed its wish to be part of the Chairman's informal consultations.
25. The representative of the Republic of Korea narrated his delegation's experience as a guide on
how best to proceed.  Members should focus on specific problems and difficulties of implementation.
At the High-Level Meeting his delegation had announced commitments to provide special treatment
to least-developed countries.  However, implemen ting the commitments presented difficulties similar
to those experienced by other developing countries.  The problem was that there appeared to be nofirm legal basis in WTO rules for accommodating commitments for autonomous market access
improvements, including under the so called Enabling Clause.  Existing provisions appeared
insufficient.  There was a strong will on the part of various developed and developing countries, like
Korea, to implement the measures, but in a rule-b ased organization, such as the WTO, Korea wanted
to act in accordance with the rules.  This was the reason that Korea had not yet finalized its
implementation of its commitments.  Therefore, rather than waste time by requesting the Secretariat to
provide assessment papers, countries that encountered difficulties should clearly state the difficulties,
just as Korea had done.  To this end, frank informal consultations would be more fruitful than formal
meetings in addressing problems encountered in the application of the special provisions.
26. The representative of Morocco responded to the various comments.  First, his delegation
would circulate its elaborated proposal, in writing. Second, the statement by the United States was
positive and constructive.  His delegation wanted to avoid North-South co nfrontation, which was not
the objective of their proposal.  Morocco simply sought a functional, positive and constructive
dialogue.  Third, several international organizations such as the IMF, the World Bank, UNDP andWT/COMTD/M/21
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UNCTAD regularly conducted assessments of the imp act of their decisions on the trade of developing
countries.  The WTO could also do the same.  Finally, his delegation requested the Secretariat to
assist the Committee in the evaluation exercise by providing a structure and framework for the
discussions, in the absence of which the discussions in the Committee could be disorganized.
27. The Chairman agreed to undertake informal consultations in respect of the three proposals by
Morocco on S&D, and on why, and in what areas, the developed countries had encountered
difficulties in implementing the special provisions in  favour of developing countries.  He invited the
Secretariat to conduct informal consultations with all interested delegations on the issue of an
appropriate accommodation under WTO provisions for autonomous improvements in market access
in favour of least-developed countries, and to keep him abreast of the consultations.
C. Electronic Commerce
28. The Chairman reminded the Committee of the Working Paper circulated by Egypt entitled
"Electronic Commerce in Goods and Services":  WT/COMTD/W/38.  The delegation of the
United States had circulated two informal papers on the subject, the presentation by
Ambassador Rita Derrick Hayes to the General Council Meeting of 19 February; and, the series ofquestions and answers regarding the U.S. proposal at that General Council Meeting to the effect that
WTO Members should agree to continue the practice of not imposing customs duties on electronic
transmissions.
29. Since the last meeting, three other delegations had presented documents on the subject of
electronic commerce to the General Council.  These were Canada (WT/GC/W/82);  theEuropean Communities (WT/GC/W/85);  and, Australia (WT/GC/W/86).  The Chairman recalled that
the contents of the documents were discussed at the General Council Meeting of 24 April, 1998.
30. WTO Members had adopted a "Declaration on Electronic Commerce" on 20 May, 1998 at the
Second WTO Ministerial Conference (WT/MIN/(98)/DEC /2).  He drew attention to the fact that
through the Declaration, WTO Members had, inter alia, instructed the General Council to: "establish acomprehensive work programme to examine all trade-related issues relating to global electronic
commerce, including those issues identified by Members.  The work programme will involve the
relevant WTO bodies, take into account the economic, financial and development needs of developing
countries, and recognize that work is also being undertaken in other  international fora".
31. At the time the Committee had last discussed the subject of electronic commerce formally, it
had anticipated a study by the WTO Secretariat on the subject.  It had decided that it would wait for
that study before proceeding further to request additional papers from the Secretariat, for example, onthe enhancement of the participation of developing countries in electronic commerce.
32. Finally, the Chairman recalled his informal consultations on 24 April, 1998, at which he
sought the views of delegations on how he might best proceed with the subject.  At the informal
consultations he had drawn two conclusions.  First, there was a widely-shared need for an educational
process on electronic commerce;  to this end, account should be taken of work in other organizations,notably UNCTAD.  Second, Members needed to avoid unnecessary overlap amongst different WTO
bodies in discussing electronic commerce.
33. The Chairman called for comments focusing mainly on how work could be usefully done on
this subject in the Committee on Trade and Developm ent, bearing in mind the need to avoid overlap
with other WTO bodies and to avoid duplication of work with other organisations.WT/COMTD/M/21
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34. The representative of Tanzania requested clarification on how to proceed with the discussions
on electronic commerce in the light of the language by Ministers in the Ministerial Declaration
instructing the General Council  to: "establish a comprehensive work programme to examine all trade-
related issues relating to global electronic commerce".  His delegation requested a clarification as to
whether this instruction implied that a special working group would be established, or that the
Committee Trade and Development should proceed without further delay?  His delegation understood
paragraph 7 of the Egyptian paper to suggest that it was within the mandate of the Committee to
discuss electronic commerce.
35. The Chairman noted that the Ministerial Council was the highest WTO body; accordingly, its
decision was final.  However, he also noted that the text of the Ministerial Declaration on electronic
commerce included the phrase that, "The work programme will involve the relevant World Trade
Organization ("WTO") bodies".  The Chairman assumed that this phrase very clearly encompassedthe Committee on Trade and Development.  Nonetheless, he requested Members, in their comments,
to offer their views on the clarification sought by the representative of Tanzania.
36. The representative of Egypt recognised the importance of the point raised by Tanzania.
Nonetheless, he recalled that there were five requests in paragraph 49 of the Egyptian paper –
WT/COMTD/W/38.  Some of these could overlap w ith the process that might take place in the
General Council.  In spite of this possibility, Egypt believed that work could begin in the Committee
since the subject had been discussed in the Committee on Trade and Development, and their paper
had been presented months previously, and that the process should start with the Secretariat preparing
the analytical paper which his delegation had requested.  The Ministerial Declaration stated that work
could begin in the relevant WTO bodies taking into account the development needs of the developingcountries.
37. He emphasised the importance of addressing the issue of the enhanced participation of
developing countries in electronic commerce.  He provided information to the Committee on the
meeting that was hosted by the Economic Commission for Africa (ECA), on the essential issues
relating to the provision of cost-effective global connectivity, and computer/internet access to thepoor, in particular women.  At this Conference, the World Bank estimated that the challenge of
providing the poor with information technology in volved raising connectivity rates from 5 lines
per 1,000 to 5 lines per 100.  It was observed that China had been able to accomplish this target.
China had a penetration of 8 lines per 100.  Initially, when Africa was connected to the internet, only
the educated and the wealthy had access to information technology.  This pattern had not significantly
changed.  The urgent objective was to connect the poor.  A 1995 African regional symposium on
telecommunications and development had stressed the importance of building Africa's informationinfrastructure.  At that time, only four African countries had full internet connectivity; in 1997,
47 countries achieved full internet connectivity.  Experts had proposed that the profile of Africa's
internet and information technology connectivity needed to be changed through better infrastructures,
more effective government policies, innovative educational programmes to access the majority of
people, and ensuring that the poor and the young could also benefit from this technology.  This was acrucial and dynamic area.  Much had been accomplished in various international organizations.  The
WTO had a role to play, in particular in relation to internet trade-related issues.
38. The representative of the United States agreed that the Committee on Trade and Development
had a clear role and responsibility in the work programme decided by Ministers on electronic
commerce. Egypt's paper was constructive.  Evidently, the issues raised by Egypt would be part of thework programme.  At the same time, Members must be deferential to the process in the
General Council, and allow the Council to determin e the specific responsibilities of different bodies.
However, his delegation believed that some activity could go on in the interim.  First, the Committee
could begin immediately to consider the role of  electronic commerce in technical cooperation.
Second, it would be useful to be informed of work by UNCTAD.  UNCTAD could be asked toWT/COMTD/M/21
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provide a paper for the information of the Committee on its activity, in order to avoid duplication and
overlap.  Third, the United States would support the proposal for a special Committee meeting or
seminar on electronic commerce as part of the work programme of the Committee on Trade and
Development.  Fourth, it was early to respond to Ta nzania's question as to whether there will be a
special body to address the subject of electronic commerce, but even informally his delegation had notunderstood that there would be any proposals to that effect.  However, his delegation would counsel
patience until the General Council  had taken a decision apportioning responsibilities.
39. The representative of Brazil noted the caution hinted at by the United States, and agreed this
was necessary.  However, the Committee should not be idle on the subject while waiting for the
General Council, nor feel hindered by the fact that the General Council had not yet decided on the
structure and scope of the work programme.  It was useful to know that there was a lot of informal
activity that was already taking place.  His delegation was not aware of these informal activities andconsultations.  He believed that Members had to discuss the subjects fully, and acquire a knowledge
of what they were negotiating and what the stakes were.  He recalled that one of the reasons for the
difficulty in negotiating the draft Ministerial Declaration was the fact that in many instances,
delegations did not know what the implications were and also, in several instances, did not know what
the proposals were.  Members of the Committee should be fully involved, and the development needsof the developing countries should be fully taken into account.  Brazil regretted that there had been no
response yet to the requests made by the Egyptian delegation four months ago.  It was further
regrettable that the Committee was still at the stage of discussing "starting work".  Brazil, therefore,
supported the Egyptian proposal that work should begin immediately.
40. The representative of Morocco welcomed the Egyptian paper and expressed support for the
efforts of Egypt to conduct an educational exerci se on the issue for Members in the Committee before
decisions were taken on the subject. It supported the Egyptian proposals.  To a considerable degree,
the paper covered developing country concerns, although there were some issues and difficulties not
reflected in the document.  First, there was the difficulty that several countries did not yet have
competition law or policy.  The debate proposed by Egypt and the analysis requested would have apositive effect because it would assist competent au thorities to adapt their legislation to trends in
electronic commerce.  Second, it was still unclear how fiscal and taxation policies would be managed
in electronic commerce.  His delegation had taken note of the proposal by the U.S.  Third, there was
the difficulty of correctly managing the infrastructure in order to make it possible for developing
countries to integrate into this infrastructure, and thus forestall any further marginalization of
developing countries.  His delegation had more c oncerns.  These would be raised and coordinated
with Egypt.  Morocco supported the Egyptian proposal for a special session of the Committee on
Trade and Development to address the subject of the electronic commerce.  Finally, his delegation
emphasised the importance of inter-organizational cooperation and the mobilization of synergies in
order to avoid overlap and duplication.  The organizations that could usefully cooperate on this
subject included UNCTAD, WTO and International Telecommunications Union (ITU).
41. The representative of Switzerland noted that although new interests tended to excite,
nonetheless, there was a need to proceed methodically.  Ministers had mandated the General Council
to prepare a work programme.  Therefore, the Committee should wait for the General Council  to
draw up a work programme before it began work on electronic commerce or requested the Secretariat
to prepare studies.  It was likely that the work programme to be drawn up by the General Council
would include a large part if not all of the Egyptian proposals.  Switzerland would like to avoid thesituation in which different WTO bodies decided their own work programmes, and requested the
Secretariat to prepare studies which may overlap.
42. The representative of the European Communities stated that her delegation had now had the
time to consider the Egyptian proposals and saw merit in the suggestions.  The Communities would
accord varying emphasis on different aspects, for instance on mode of delivery, the impact ofWT/COMTD/M/21
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electronic commerce on trade, the role of government, and what space there would be for regulation.
All these issues had to be addressed, and the outcom e was still far away.  Her delegation believed that
the Ministerial Declaration was useful in the sense that it provided an indicative deadline for the
consideration of electronic commerce.  This indication would assist in focusing the mind of
delegations on the work programme.  Her delegation considered that the Committee should contributeto the decision to be adopted by the General Council in September.  The Declaration did not restrict
work to a particular body, but mentioned bodies of the WTO.  The Egyptian paper covered many
points which the work programme could take into account. A role existed for the Committee.  For
example, the second bullet of paragraph 8 of the Egyptian paper pointed to an important angle of
consideration by the Committee.
43. The Communities also re-iterated several areas of importance contained in the presentation by
Egypt, including the importance of having correct and proper infrastructure and increasing theparticipation of developing countries in line with various WTO provisions, such as Article 4 of the
GATS.  The period between now and the Special Session in September was very short.  Although her
delegation believed that holding a special session of the Committee on Trade and Development at this
time was premature, work on other aspects could start immediately.  The Secretariat could begin the
preparation of factual and analytical papers, tapping on the resources and contributions of otherorganizations such as UNCTAD.  The proposals by  Egypt were necessary and useful, but needed
proper timing to ensure work efficiency.  The Communities reminded Members that they had also put
forward several proposals in their paper on which they  desired the view of Members.  In this regard,
her delegation informed Members that they were available for informal discussions on any ideas by
Members on the proposals presented by the European Communities.
44. The representative of Hong Kong, China welc omed the paper by Egypt.  He said that
electronic commerce potentially covered a wide area of WTO activity, and also covered a wide area
of activity by other organizations and national governments.  The Special Session of the
General Council in September would need to consid er how best to handle WTO work.  His delegation
would not rule out any of the options that had b een suggested on how work would proceed.  However,
given that the subject was complex and wide-ranging, some caution was merited.  Hong Kong, China,
expressed satisfaction on the Secretariat paper that had been presented, and wondered if the
Secretariat could actually do more, in the light of the fact that Members needed to further consider the
item and take some policy decisions.  His delegation suggested that bullet points two and three of
paragraph 49 of the WT/COMTD/W/35 could be started immediately.  The last two bullets could
require a special seminar and therefore could wait until after the Special Session of the
General Council.
45. The representative of Japan welcomed the paper by Egypt.  Electronic commerce was
important for the further development of developing countries.  The issues raised by the representative
of Switzerland on the need for being methodical and for coherence in the work of the WTO were
important.  His delegation emphasised the importance of an overall work programme as contained in
the Ministerial Declaration.  Duplication must be avoided both in the WTO and with otherinternational fora.  Work and experience elsewhere could be usefully tapped, for instance, at
UNCTAD.  His delegation suggested that a contribution should be received from UNCTAD before
work commenced.  He referred to the meeting being organized by UNCTAD in the autumn, a
"Partnership for Development Su mmit" meeting in Glion.  His delegation understood that substantial
attention, at this meeting, would be devote d to electronic commerce.  UNCTAD had worked
extensively in this area, and its experience would be useful.  This was particularly relevant with
regard to indent two in paragraph 49 of the Egyptian paper.  His delegation considered that a special
meeting of the Committee on Trade and Development dedicated to electronic commerce was a good
one.  However, such a meeting should take place after the Special Session of the General Council.
Duplication must be avoided in the work of WTO bodies.  To this end, work in the Committee must
be complementary to work in the General Council.WT/COMTD/M/21
Page 10
46. The representative of India welcomed the Egyptian proposals.  His delegation emphasised
four points.  First, it noted that the proposals by Egypt had been properly inscribed on the
Committee's agenda four months previously, and were therefore consistent with the procedures of the
Committee.  The intention of the paper to focus on the development dimension of electronic
commerce was very important.  The Egyptian paper was entirely consistent  with both the proceduresof the Committee and with the mandate of the Ministerial Declaration.  Second, the proposals
contained in paragraph 49 of the Egyptian paper were all extremely important.  India considered that
the factual paper, as requested in the first indent of the Egyptian paper, should be prepared by the
Secretariat.  His delegation noted that reference had been made to the study produced by the
Secretariat, but it had expressed its view at an earlier meeting that the development dimension had not
been adequately addressed in that paper.  He felt that the second and fifth indents in the Egyptian
paper could be combined.  Third, his delegation supported the idea of a seminar, and this idea did nothave to wait for the Special Session of the General Council.  His delegation was also interested in a
special session of the Committee on Trade and Development because it would assist Members in
focusing on the development dimension of the issue.  His delegation requested the Chairman to
consult on the special session.  Fourth, the representative of India noted that the functioning of the
General Council should not restrict the Committee on Trade and Development.  If any difficultiesarose, India felt that the Chairman of the Committee on Trade and Development could take the floor
to inform the General Council of the work being done in the Committee.
47. The representative of Australia appealed for coherence in the work of the different WTO
bodies on electronic commerce.  Work in the Committee on Trade and Development was not parallel
to or an annex to work in the General Council, but an  integral part of the work of the General Council.
Members should not be concerned about what the General Council  would do because Members of the
Committee were also the Members of the General Council.  Her delegation observed that the Egyptian
paper contained key elements that could form part of the Committee's work programme.  Morocco's
intervention had also highlighted some other issues in electronic commerce.  Australia would urge
Members to make inputs into the General Council's work programme.  Her delegation was concernedthat some thought that a vacuum existed.  Australia considered that no such vacuum existed.  The
Committee on Trade and Development could begin to examine indent three of the Egyptian proposal,
and also begin to consider the dimension of technical cooperation.  Her delegation agreed with
Hong Kong, China, on approaches.  Her delegation agreed that the proposed seminar and special
session on electronic commerce were good ideas, but it would be essential to first have the picture of
an overall integral work programme.
48. The representative of Canada noted that the points raised by Egypt would be worth pursuing.
Timing was essential.  Canada's preference was that work in the Committee should be postponed until
after the Special Session of the General Council in September.  Members should make sure that the
work programme reflected development concerns as outlined in the Ministerial Declaration.  The
Committee on Trade and Development would have an important role to play in the implementation of
the work programme.
49. The representative of Mexico underscored three points.  First, electronic commerce was an
important subject in international markets.  All countries, including the developed countries, needed
to subject it to careful examination in order to a ssess its impact, particularly on development.  Second,
the Egyptian paper was extremely useful, as was the WTO Secretariat study.  Since the Committee on
Trade and Development had already initiated work and made some progress, particularly on thedevelopment aspects, it should continue.  Account needed to be taken of whatever the
General Council proposed.  Third, the Secretariat should produce a factual paper on the lines
suggested by the Egyptian delegation.  His delegation considered that the Chairman should convene
an informal meeting, after the regular meeting of the General Council to examine the factual paper by
the WTO and also the Egyptian paper.  There should also be inputs from Members and from theUNCTAD.  The results of this informal meeting could then be conveyed to the General Council inWT/COMTD/M/21
Page 11
September, by the Chairman.  The discussions at th e informal meeting would bring more focus to the
work of the Committee on Trade and Development and the General Council  itself.
50. The representative of Ecuador stated that the Committee should accord due consideration to
the points raised by the Tanzanian Ambassador.  His delegation noted that some Members had
counselled caution.  However, to maintain the momentum of work in this area and to strengthen theoverall process, the Committee should not become immobilised.  Drive and impetus in the
consideration of the subject of electronic commerce needed to be maintained.  To this need, his
delegation gave support to the proposals by Egypt.
51. The representative of Uruguay noted that there was merit in the Egyptian proposal on the role
to be played by the Committee on electronic commerce.  His delegation further noted that the
Committee on Trade and Development was a competent body to discuss the subject.  In doing so, the
economic, financial and the development needs of developing countries should also be taken intoaccount which further highlighted the important role to be played by the Committee on Trade and
Development.  Nonetheless, Members should ensure that the General Council identified the overall
work programme in September.  Elsewhere, such as in UNCTAD, the subject was gaining
momentum.  For instance, in UNCTAD consideration was being accorded to obstacles confronted by
developing countries in electronic commerce.  Ot her Organizations could also make useful inputs
such as in the ITU and the World Intellectual Property Organization (WIPO).  His delegation
considered that it would be possible for the Comm ittee to suggest to the General Council  that certain
parameters for examining the subject be set-out.  This approach could assist the General Council in
establishing an overall work programme in September.  While noting that Mexico had suggested an
informal meeting to consider all aspects of the work, Uruguay took the view that it was up to theGeneral Council  to determine the final work programme.
52. The representative of Uganda welcomed the Egyptian paper and gave his support to the
proposals contained in paragraph 49 of the paper which would assist in deepening understanding of
the subject.  His delegation further supported the preparation of factual and analytical papers,
including the idea of a seminar.  Uganda was certain that the proposals in paragraph 49 of theEgyptian paper were not inconsistent with the Ministerial Declaration.  Concerns and fears about the
duplication of work were exaggerated.
53. The representative of South Africa noted the overwhelming support for the Egyptian proposal
as a basis for work in the Committee.  His delegation supported those proposals, but said that they
should not been considered exhaustive.  There should be scope for other delegations should they wish
to contribute.  The proposals were not contradictory to the essence of the Ministerial Declaration,
which stated that the General Council  should establish a work programme.
54. The representative of Egypt placed on reco rd Egypt's appreciation to Members who had
supported their proposals.  He observed that the discussions had become more focused and beneficial,
and emphasised the importance of engaging all organizations that were involved in the examination of
the subject.  Apart from UNCTAD and ITC, there were other relevant organizations which were
engaged, including the ITU, United Nations Commission on International Trade Law (UNCITRAL),WIPO, etc. Egypt's main concern was the position ta ken by those who wanted to await the results of
the General Council in establishing an overall work programme before work began in the Committee.
If this was the case, it meant that the Committee would have to wait until September.  Thereafter, the
Committee could only begin work later on in the year to request the Secretariat to produce a paper,
and UNCTAD to make its contributions.  This, inevitably, would shift the process to 1999.  This shiftwould not only slow down the process, but could al so not be reconciled with the position of those
delegations who were urging quick movement on this and other issues.  His delegation emphasised,
for the record, that the development perspective was a fundamental prerequisite to any discussion on
the subject of electronic commerce.  If electronic commerce was not addressed in a comprehensiveWT/COMTD/M/21
Page 12
and balanced manner, that satisfied Egypt's concerns, then  Egypt should not be blamed if it was
unable to join in any conclusions on this important  issue for the Third Ministerial Conference.  This
was a genuine concern because it was an important issue.
55. Finally, Egypt re-iterated its rationale for requesting a special session distinct from a seminar.
The special session would include governmental actors and intergovernmental organizations.  Theseminar would also include intergovernmental organizations, and the business community,
associations, etc.
56. His delegation suggested that the Chairman suspend and not conclude the meeting, and in the
intervening period conduct informal consultations on the application of S&D provisions and on
electronic commerce, in order to enable the Committee to reach conclusions on what was required of
the Secretariat.  It would be important to reach these conclusions before the summer break so that at
the next meeting, papers would be available on the basis of which Members could make contributions.
57. The Chairman concluded by saying that he intended to undertake informal consultations
before the meeting of the General Council.
D. Other Business
- WTO programme for trainees from developing countries
58. The representative of the European Communities (Netherlands) announced the administrative
arrangement between Netherlands and the WTO Secretariat to establish a WTO Programme for
Trainees from developing countries.  The purpose of this Programme was to assist in human capacity
building in developing countries in areas related to trade policy.  Its would provide graduates and
officials from developing countries with the opportunity to learn about trade and development relatedmatters dealt with in the WTO.
59. The WTO would select and recruit.  Trainees would not take up regular staff posts, but would
be considered as WTO staff members during their assignment and would receive a normal salary.
The content and duration of the assignment would depend on the circumstances and qualifications of
each candidate.  Normally, a traineeship would be for a minimum period of 1 year, and would notexceed a maximum period of 2 years.  In order to enhance the basic objective of strengthening
institutional capacity in developing countries, trainees must return at the end of their assignment.
They would not be able to assume any other WTO post during a period of at least three years after
their assignment.
60. The Netherlands would take care of all financial costs involved.  The funds were separate
from and in addition to the already existing Nether lands Trust Fund for technical assistance.  Since
this was the first time that the WTO was introducing a Trainee programme, the Secretariat andNetherlands had agreed to start with a modest number of 3 trainees per year, in order to keep things
manageable and to learn from experience.  After an initial period of 2 years the programme would be
evaluated.  In the coming weeks, the WTO Secretariat would establish the implementation modalities,
in particular in the area of selection and recruitment, the development of tailor-made programmes and
the supervision of the trainees.  The WTO Membership would be informed in greater detail as soon aspossible.  The aim was to have the first trainee working in the WTO by September 1998.WT/COMTD/M/21
Page 13
- The Concerns and Problems of Small Economies
61. The representative of Mauritius referred to paragraph 6 of the Ministerial Declaration, and
recalled that Trade Ministers had expressed concern about the marginalization of small countries, and
had agreed to take action.  His delegation, therefore, proposed that this issue should be placed on theprovisional agenda for the September meeting of the Committee on Trade and Development.
Mauritius would prepare a paper addressing the problems and concerns of small economies which
would provide a basis for discussions.
62. The representative of Sri Lanka supported the proposal by Mauritius on the concerns and
problems of small economies.  The subject deserved attention.  Although Sri Lanka remained
committed to trade liberalization, it was an example of a small economy whose plight in the process
of trade liberalization and globalization had been neglected.
63. The representative of Bolivia supported the proposal by Mauritius and the statements by both
Mauritius and Sri Lanka which were in accordance with paragraph 6 of the Ministerial Declaration.
- Evaluation of Technical Cooperation
64. The representative of Switzerland recalled that at the March meeting of the Committee on
Trade and Development, the report by the Se cretariat on Technical Cooperation and Training
activities had given rise to an interesting debate.  Several delegations stressed the importance of an
evaluation of technical cooperation and training activities in response to the increased needs of
developing countries and to ensure the effective implementation of the Uruguay Round Agreements.
Furthermore, technical cooperation and training activ ities in the Secretariat had increased following
the High-Level Meeting for Least-Developed Countries.  It was important that technical assistanceand training should achieve their objectives.  She informed delegations that at informal consultations,
her delegation had expressed its position that the matter of evaluation was an integral aspect of
technical assistance.  Evaluation was based on ex ante  evaluation of objectives, on planning, and on
follow-up of the activities.  Accordingly, the Secretariat should have a mechanism for internal
evaluation of technical assistance activities.  Although the Secretariat already conducted suchevaluation, a more systematic and ela borate methodology should be adopted.
65. Her delegation requested that the item on the evaluation of technical cooperation and training
activities should be placed on the provisional agenda for the next meeting of the Committee.  Her
delegation also requested that the Secretariat draw-up a brief note on concrete modalities for an
internal evaluation of technical cooperation and training activities.
66. The representative of Morocco supported the two proposals by the representative of
Switzerland.  At the same time, his delegation stated a preference for an external evaluation of
technical cooperation and training activities to complement internal evaluation by the Secretariat.
67. The representative of the European Communities said that evaluation was an integral part of
any organization.  The European Communities believed  that the WTO Secretariat had the ability and
competence to evaluate its own work.  Her delegation considered that there was the need to clarify the
concept of evaluation.WT/COMTD/M/21
Page 14
- Manual on Technical Cooperation and Training
68. The Chairman informed the Members of th e Committee on Trade and Development of the
availability of the Manual on Technical Cooperation and Training, in the three WTO languages.
69. The Committee took note of the statements made.
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