RESTRICTEDWORLD TRADE
ORGANIZATIONWT/COMTD/M/23
21 April 1999
(99-1625)
Committee on Trade and Development
NOTE ON THE MEETING OF 7 DECEMBER 1998
Chairman:  H.E. Mr. I.A. Chowdhury (Bangladesh)
I. ADOPTION OF THE AGENDA
1. The Committee on Trade and Development (CTD) adopted the provisional agenda contained
in WTO/AIR/987/Rev.1 with the addition of one it em;  statement by Ambassador Bruun, Chairman of
the Sub-Committee on Least-Developed Countries.  It  was also agreed that the briefing by UNCTAD
on the results of the "Partners for Development" Meeting, Lyon, 9-12 November 1998 and follow-up
envisaged", should be taken up in the afternoon, to suit the UNCTAD Secretariat.
II. STATEMENT BY AMBASSADOR BRUUN, CHAIRMAN OF THE SUB-
COMMITTEE ON LEAST-DEVELOPED COUNTRIES ON DECISIONS BY THE
SUB-COMMITTEE ON LEAST-DEVELOPED COUNTRIES
2. The Chairman of the Sub-Committee on Least- Developed Countries (SCLDC) informed the
CTD that the Sub-Committee had decided to forward two Secretariat documents to the General
Council through the CTD.  The documents were  WT/COMTD/LDC/W/10 entitled "Implementation
of WTO Agreements: Survey of the Difficulties Faced by Least-Developed Countries and the Current
Response" of 19 October 1998, and WT/COMTD/LDC/W/11/Rev.1 "Market Access for Exports of
Goods and Services of the Least-Developed Countries: Barriers and Constraints" of 26 October 1998.
The revision of the Market Access document contained information about the recently notified market
access offers made by the delegations of Mauritius and the United States.  The SCLDC had suggestedthat both documents should retain their status as working documents by the Secretariat.
3. Ambassador Bruun noted that the SCLDC had agreed to ask the Secretariat to prepare two
non-papers, on the Secretariat's own responsibility, each containing a short structured list of the main
points that emerged during the Sub-Committee's discussions of the two papers.  Those lists would
accompany the documents to assist further discussions under the aegis of the General Council.  Inaccordance with of the terms of reference of the Sub-Committee, which required the Sub-Committee
to report to the Committee on Trade and Development for consideration and appropriate action, the
matter was being referred to the CTD for formal referral to the General Council.
4. The representative of Mexico referred to the document on market access
(WT/COMTD/LDC/W/11/Rev.1), and noted that the procedure suggested raised doubts.  He wanted
to know if the document would not first be disc ussed in the CTD.  Furthermore, regarding the non-
paper to be prepared by the Secretariat on observations made by Members in the course of the
SCLDC exchange of views on the market access pa per, he wondered how this document would be
prepared and how it would be submitted to the General Council.
5. The Chairman of the SCLDC clarified that the two documents would be submitted to assist
the discussions in the General Council.  This did not imply that the SCLDC had completed theWT/COMTD/M/23
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consideration of the two documents.  No further discussions of the issues were therefore precluded
either in the SCLDC or in the CTD.
6. The representative of the European Commun ities agreed that the documents referred to
should be forwarded to the General Council, but emphasised that they should be further discussed
both in the SCLDC and in the CTD.  He also sought a status briefing on the High Level Symposiumon Trade and Development under "Other Business".
7. On the basis of the clarifications offered by the Chairman of the SCLDC, the Committee
agreed to forward to the General Council WT/COMTD/LDC/W/10 entitled "Implementation of WTO
Agreements: Survey of the Difficulties Faced by Least-Developed Countries and the CurrentResponse" of 19 October; WT/COMTD/LDC/W/11/ Rev.1 entitled "Market Access for Exports of
Goods and Services of the Least-Developed Countries: Barriers and Constraints" of 26 October; and a
Secretariat non-paper containing a structured list of points made by Members in the course of theexchange of views on the two documents.
III. CONCERNS AND PROBLEMS OF SMALL ECONOMIES
8. The Chairman recalled that this item had been  considered for the first time at the previous
Session, on the basis of a paper circulated by Barbados, Jamaica, Lesotho, Mauritius, Sri Lanka and
Trinidad and Tobago entitled:  "Concerns and Problems of Small Economies" (WT/COMTD/W/50
and Corr.1).
9. He informed the CTD that, following an invitation from the World Bank, the WTO
Secretariat was now part of an Advisory Board of the Task Force on Small States established by the
World Bank and the Commonwealth, and was participating at a meeting of the Board at that time.  Healso informed Members that Fiji, Guatemala and Mauritius had circulated new documents on the item.
10. The representative of Mauritius referred to the initial paper circulated by his delegation and
other co-sponsors, WT/COMTD/W/50 and Corr.1, highlighting the vulnerability and specificities of
small states.  The new paper circulated by his delegation (WT/COMTD/W/55) was meant to offer a
Mauritian perspective and national experience on the problems and concerns of small economies.This paper elaborated on the concept of vulnerability.  The paper was sub-divided into several
categories.  These were geography, remoteness from the main centres of trade with effects for cost of
production and competitiveness, climatic conditions, etc.  He elaborated various concerns relating to
these factors, as mentioned in the paper.  He hoped that Members would carefully examine the paper
compiled by Mauritius, and that they would also study the national experiences of other small
economies that would be presented in the CTD.
11. The representative of Lesotho recalled that Lesotho was both an LDC and a small economy.
Recalling the working paper WT/COMTD/W/50 and Corr.1 of which his delegation was a co-
sponsor, he highlighted the following factors of vulnerability in Lesotho's economy.
(a) a land-locked state: Lesotho was within the boundaries of South Africa, with
transportation links that go through South Africa. For instance, the nearest port was
600 kms away at Durban.  This factor translated into high import costs and unit costsof production;
(b) harsh climatic factors:  the El Nino  phenomenon had affected the pattern of rainfall,
with adverse effects for agriculture.  In a total land area of 30,350 square kilometers,
only 9 per cent of the land was arable;WT/COMTD/M/23
Page 3
(c) crop failures:  the South African Food Security Technical Assistance Unit had noted
that Lesotho should import 301,000 tonnes of cereal to compensate for the shortfall
in 1997-98.  The Food and Agricultural Organization had also forecast a sharp
increase in cereal imports from the 1997-98 level.  As a result of crop failures, the
Government had considered extraordinary support for farmers such as free orsubsidized tractor services and provision of fertilizers;
(d) limited options:  Lesotho's natural resources were scarce.  The principal natural
resources of Lesotho were water and the people;
(e) remittances from migrant workers: This was a strong link to the economy of South
Africa.  Migrant worker remittances accounted for about 40 per cent of GDP.
However, these remittances had been declining from 1993 due to retrenchment of
workers by South Africa.  IMF data suggests a declining trend of such remittances toabout 29 per cent in the period 1998-99.  This was a further illustration of Lesotho's
vulnerability to economic developments in South Africa;
(f) small industrial base: Lesotho's potential was limited by various factors.  The
domestic market was small with a total population of approximately 2.1 million,
widely dispersed in the rural areas;  there was heavy reliance on imported rawmaterials and finished goods, hence a large import bill;  and Lesotho could not secure
a significant export market, resulting in more imports than exports.  Economic
difficulties were largely based on Lesotho's small industrial base, and limited product
diversification;
(g) Fluctuations of commodity prices: Lesotho exported mainly wool and mohair.
However, export earnings from these were unpredictable because of frequent changes
in commodity prices.  Lesotho was a pricetaker on world markets, with adverse
effects for FDI.
12. The representative of Lesotho commended the WTO for the Integrated Initiative for LDCs
Trade Development.  However, he said that in the preparations for the 3rd Ministerial Conference,
additional consideration should be accorded to sm all economies in the light of the issues raised.
13. The representative of Fiji, introducing the paper by his delegation (WT/COMTD/W/54)
supported the statement by Mauritius on behalf of small economies.  He highlighted the geographical
features of Fiji;  its commitment to the WTO agenda, principles and disciplines;  vulnerability factors;
the export sectors of sugar, canned tuna and garments;  the importance of preferences; and the cost of
adjustment to Fiji.  He re-affirmed Fiji's commitment to the WTO agenda of trade liberalization and
recognized the benefits that global economic integration could bring.  However, there were specificdifficulties particularly in small island economies which posed serious limitations on trade
liberalization undertakings.  He drew attention to several vulnerability factors that were unique to
small island economies.  These included: limited na tural resources, small labour force, geographical
fragmentation, remoteness from major markets and susceptibility to natural disasters, such as flooding
and hurricanes, which were typical features of most  islands in the South Pacific.  He emphasized the
importance of three product areas: sugar, canned tuna and garments, and stressed the importance of
preferences as well as the elimination of trade restrictions for these products.  The erosion of Fiji's
trade preferences by the gradual dismantling of preferential trade agreements posed a real threat to its
survival.  Fiji was exploring alternative strategies to secure foreign exchange earnings with minimum
social disruption, but this would take time.  At this stage and given the peculiarities of a small islandeconomy, Fiji could not efficiently trade on the global market without preferences, particularly those
afforded under the Sugar Protocol of the Lomé Convention and with Australia under SPARTECA.WT/COMTD/M/23
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14. The representative of Fiji underscored the importance of financial assistance to least-
developed and small economies to sustain costs of adjustment.  His delegation was not against
globalization and liberalization, but against the pace with which the process was dictated by the
developed economies, through the various multilateral institutions and instruments, including
international financial institutions.  In the view of his delegation, equity and justice were absent in themanner of application and the pace of trade liberalization.  He strongly supported the debate within
the WTO and its Member countries concerning the difficulties that vulnerable developing countries
faced in the current pace of trade liberalization.  He hoped that as a result of this awareness and
debate, some positive action would ensue in the immediate future.  To this end, his delegation
requested that the CTD should, as a special and targeted effort, accord priority to the development of
an acceptable framework within the jurisdiction of the WTO to address the concerns of least-
developed and small vulnerable states with the objective of enabling them to to undertake andcomplete trade liberalization policies at a pace sensitive to their different stages of developments and
susceptibility to climatic hazards.
15. The representative of Barbados welcomed the national experiences presented by previous
speakers.  These statements demonstrated that small economies had physical, structural and
institutional characteristics which affected the processes of economic growth, inhibited their ability tocompete, increased their vulnerability to external events, and limited their capacity for adjustment.
Her delegation would also circulate a country paper on Barbados elaborating its characteristics as a
small economy.  In the interim, statistics would be presented to show the geographical features and
circumstances of Barbados.
16. Barbados was an island state situated in the Caribbean hurricane belt.  Its total land area was
266,000 sq.km.  Foreign exchange earning sectors were limited to tourism and international business
services.  The country's trade flows, were concentrated in two to three main markets.  This market
dependence was a source of vulnerability, since the growth of export trade was linked to the
performance of the markets.   Regarding transportation, Barbados had only one airport and 30 cargo
ships which served its trading needs.
17. She noted that the effect of small size was recognized in national economic policies.  Most
countries had policies specifically designed to promote the viability of small businesses or enterprises.
It followed that this policy should also be applied to the global economic arena in the context of
multilateral trade agreements.  The multilateral trading system had to respond to the needs of all
participating countries;  the full participation of small states in the multilateral trading system was
critical to their economic development.  Different countries had different needs which had to be
recognized and accommodated.  Effective participation in the multilateral trading system was not azero sum game for the world's trading partners.  In this connection, her delegation welcomed and
commended the measures by Mauritius, a small economy, to offer duty free access to a certain
number of products originating from LDCs.
18. She recalled the position stated by her delegation at the 22
nd Session of the CTD that "the
application of the rules governing the multilateral trading system must not be insensitive to theimperative of equitable international development".  In this regard, her delegation affirmed that
improved special and differential treatment provisions in WTO Agreements were needed for all
developing countries, including LDCs and small economies.
19. The representative of the Dominican Republic concurred with the views expressed by
previous speakers.  The Dominican Republic was also a small and vulnerable economy with specific
needs.  These needs had already been extensively stated by previous speakers.  They should be
studied and addressed in the WTO, having in mind the preparations for the 3rd WTO Ministerial
Conference.WT/COMTD/M/23
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20. The representative of Guatemala stated (WT/COMTD/W/56) that the benefits from
participation in the multilateral trading system were not as significant for small developing economies
as for others.  To reap the benefits of the system, there was the need to re-adjust some internal
policies.  At the same time, international cooperation had been boosted to substantially improve the
preparedness of small economies to participate in the ambitious opening up process, and to negotiateand implement WTO commitments.
21. Guatemala's low level of development was reflected in its low productive capacity, which
limited Guatemala's capacity to achieve its objectives under the WTO.  While a substantial
agricultural sector existed, with adequate produc tion commensurate to the country's manpower, there
was a lower level of urbanization and insufficient development of the educational sector.  Thus, the
country was less prepared structurally for, and had a limited understanding of, the imperatives of the
multilateral trading system.  International trade was changing rapidly and small economies haddifficulties in implementing and complying with commitments under WTO rules.  This was further
complicated by negotiation of new commitments.  Internally, some were unprepared to face the
challenges of the liberalization process.  For instance, fiscal income in small economies depended
more than in larger economies on external trade, and could only sustain a low level of external
reserves.  Weaknesses of small developing economies were intensified by heavy dependence onexternal funding, higher levels of trade openness, concentration and vulnerability in the export sector,
lack of economies of scale, small internal consumption capacity, small markets, and limited influence
on the structure of world prices.
22. In order to increase preparedness and the abilit y to share fully in the benefits offered by the
multilateral trading system, it was clear that small developing economies must continue to applysound macroeconomic policies, engage in efficient and rational resource allocation, and undertake
appropriate institutional changes as well as improve the quality of education.  This approach would
enhance the opening-up of their trade, especially in  the agricultural sector.  The technological base
had to be improved by obtaining more and newer forms of technology, and public management had to
be improved.  However, internal policies were insufficient to improve the level of internationalpreparedness of small economies.  International cooperation was vital and had to be enhanced.  The
effects of low investment due to geographical, social and economic drawbacks had to be offset.
Incentives had to be provided for intra-regional investment in small economies. The development of
processing industries required to be boosted.  Transfer of technology was crucial.  Effective and
continuous market access for products of export interest for small economies was also important.  In
this regard, discriminatory rules of origin against products and exports from small economies had to
be eliminated.  The type of mechanisms that should be adopted for achieving globalization andassisting small developing economies, within the multilateral trading system, to raise their level of
development, and share of the benefits from the trading system, was an open question.  His country
understood that continued development depended on solid and consistent policies, sustainable
development and a dynamic private sector.  However, the key to prosperity depended on a constant
flow of productive capital, elimination of obstacles to trade in goods and services, integration into andpresence in the multilateral trading system.
23. The representative of Egypt supported the CTD addressing the difficulties of small
economies.  For his delegation, two points stood out.  First, was the hope, initially raised by the
representative of Tanzania in the previous meeting, that LDCs would exit the LDC category as
quickly as possible.  His delegation was fully associated with that hope. However, what was beingnoted in the statements being made on the current item  were the specific difficulties that were being
confronted by small economies.  His delegation was convinced that more focus on the issues and
difficulties facing both LDCs and small economie s.  Lesotho, both as an LDC and a small economy,
reflected some problems common to both.  The CTD should focus particularly on those trade-related
problems and how they can be meaningfully addressed in the WTO.  Second, a recurring issue in thediscussions, so far, was the impact of the relatio nship between the smallness of the economies, theirWT/COMTD/M/23
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vulnerability, and their competitiveness (or lack of it ) in an international environment.  His delegation
considered that this could be an interesting and specific approach to further explore, and to study in
greater detail, possibly on the basis of a paper to be prepared by the Secretariat.  This approach could
encompass the question of the impact of smallne ss, remoteness and the vulnerability of small
economies on the competitiveness of the production of these economies and their trade situation.  Toconclude, his delegation re-emphasised the importance of addressing the difficulties of small
economies, and re-expressed the hope that there would be specific and practical recommendations to
address the problems raised.
24. The representative of El Salvador agreed with previous speakers that the problems and
difficulties of small economies should be addressed.  Although her delegation supported trade
liberalization, it should be properly paced according to the levels of economic development.  She
supported the position expressed by the representative of Egypt regarding a document to be preparedthat would contain, inter alia , practical recommendations to address the problems of small economies.
25. The representative of Tanzania made preliminary comments focused on document
WT/COMTD/W/50.  He recognized the problems identified by small economies.  These problems had
a negative impact on the trade viability of the economies in question.  Natural and environmental
disasters had catastrophic effects on these economies.  However, he said that his delegation wouldhave been more at ease if the document had been offered more clarity on the concept of small
economies.  The paper addressed the problems of small economies in a broad sense whereas
paragraph 6 of the Declaration of the 2
nd Ministerial Conference had only referred to " certain  small
economies".  Nonetheless, the WTO should recognize the problems of small economies and address
these problems.  At the same time, certain issues in the paper were debatable.  In this regard, hisdelegation cautioned on the criteria for measuring or assessing the level of development as suggested
in paragraph 3 of the paper.  He also hoped that small economies would support the initiative to
establish an independent foundation to reduce the high costs in the use of the WTO dispute settlement
system.  Finally, he hoped that issues raised in the paper could be addressed within the framework of
WTO provisions, as suggested in paragraph 23 of the paper.
26. The representative of Morocco recalled that one of the cardinal objectives of the WTO was to
achieve the integration of all states into the mult ilateral trading system, in particular developing
countries which were at risk of marginalization.  He was aware of the problems raised for small
economies largely because of the vicissitudes of climate, geography and economy.  His delegation
was prepared to address the problems raised by small economies within the CTD and in other bodies
of the WTO.  Small economies had specific problems to be addressed.  It was evident that all
developing countries encountered difficulties with respect to their integration into the multilateraltrading system.  He suggested that account could be taken of the proposals being made by sponsors of
the item through special and differential treatment provisions, as suggested by Barbados.  The
problems could also be addressed through technical cooperation projects and other positive measures.
For instance, the elimination of market access restrictions would be one of the positive measures that
could be undertaken.  It could also be possible to request the Secretariat to produce an analyticalpaper, as suggested by Egypt.
27. The representative of Brazil stated its sensitivity to the problems of small economies.  He
welcomed the proposal to consider the item in the CTD.  The difficulties raised should be addressed
not only by the WTO but also by other international organizations which focused on development and
financial matters.  Within the framework of the CTD, his delegation considered that the examinationof the item could follow a two-track approach, firstly, by further refining the concept of small
economies in order to determine its conceptual fit with the rules-based system of the WTO, and
secondly, as suggested by the Egyptian delegation, by discussing technical aspects of specific
problems of the small economies and how these problems could be addressed by WTO technical
cooperation and assistance.WT/COMTD/M/23
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28. The representative of the United States stated its support for discussions in the CTD on the
concerns and problems of small economies.  Her delegation was sensitive to the problems of small
economies and further recognized that every WTO Member  had specific concerns related to its
situation in size, income level, geographic location and other characteristics. The United States was
mindful of the critical value that WTO-consistent preferences play for all developing countries, inparticular LDCs, including small economies.  In this regard, the United States had contributed
enormously and would continue to do so in a WTO- consistent manner.  In addition, the United States
had also contributed to hurricane struck economies, such as the economies that had been devastated
by Hurricane Mitch.  However, she shared the position of Brazil regarding some of the proposals that
had been made.  Proposals for addressing the problems of small economies, including specific
proposals for assistance had to be considered within  the framework of the rule-based system and the
balance of rights and obligations for Members.  Proposals could also be considered within theframework of WTO technical assistance programmes.
29. The representative of Bolivia expressed satisfaction that this item was being addressed in the
CTD.  Its treatment demonstrated the concern of several Members for the problems of small
economies.  He recalled paragraph 2 of the preamble to the Marrakesh Agreement, which recognized
that positive efforts should be made to ensure that developing countries, including the least-developedamongst them would secure a share in the growth of world trade commensurate with the needs of their
economic development.  He stressed some of the economic and trade difficulties faced by small
economies like Bolivia.  These included a non-diversified economic base, with considerable
dependence on foreign trade;  vulnerability to price fluctuations on international markets;  effects of
trade-dependency on domestic macroeconomic policies;  major access problems in markets for theirsmall- and medium-sized businesses;  and, in Bolivia's case, serious economic consequences resulting
from being land-locked.  Recent studies had demonstrated that the present prejudice against Bolivia as
a result of its lack of access to the sea totalled US$4 billion per decade, an amount equivalent to the
total foreign debt.  To improve the participation of small economies in international trade, a shared
effort had to be made by all WTO Members.  To this end, his delegation welcomed the proposals bythe representative of Egypt that the item should be considered in the CTD on the basis of a Secretariat
analysis.  Technical assistance was an extremely important element, which was useful in capacity-
building and in strengthening domestic trade policy institutions.  Nevertheless, technical assistance
was not a solution to all problems and the key matter to be addressed was improved market access for
small economies.
30. The representative of the European Communities congratulated Mauritius on its paper.  His
delegation attached great importance to the concerns and problems of small economies and would
study the issues raised in the document very clos ely.  The document showed that the concerned and
affected economies deserved sympathy.  Efforts should be made to enable these economies to fully
participate in the multilateral trading system.  His delegation believed that it was important to retain
the item on the agenda and continue with the discussions not only in the CTD, but also in other
Committees which might discuss some of the ideas generated in the discussions on the item in theCTD.  Nonetheless, it was important to ensure that the discussions should stay focused on trade.  In
this connection, it seemed that some of the issues raised went beyond issues that could be addressed,
or redressed, either in the CTD specifically or at the WTO generally.  This did not imply foreclosing
the debate on these issues that were not trade focused, but rather that all Members should not entertain
too-high expectations given the vast spectrum of problems that had been raised.  Against this
background, he suggested that the first step should not be to request a note from the Secretariat on the
issue, but rather for the delegations which had begun analytical work to be more precise as to what the
consequences would be.  For instance, precision was required as to the areas where technical
assistance was required.  Furthermore, the starting-point was and had to be the relationship to the
rule-based multilateral trading system.  In this conn ection, he agreed with the views expressed by the
representative of Brazil.  More discussions were required because he was not certain that the
Secretariat could produce a background on the basis of the exchange of views so far.WT/COMTD/M/23
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31. The representative emphasised the issue of the categories of countries.  The High-Level
Meeting for Least-Developed Countries (HLM) had taken place from 27 to 28 October 1997.  The
focus and emphasis of the HLM were still fresh in the minds of Members.  Confusion should not be
created by an over-emphasis on different categories of countries.  It would be difficult to encompass
all the criteria that had been identified under one common denominator.  His delegation was open tothis attempt, but doubted the possibility.  It was important to bear in mind that initiatives already
existed which needed follow-up and implementation.  He also reminded Members that productive
discussions on technical assistance were underway, and urged Members not to divert attention from
these discussions, at a stage where discussions were also on-going on evaluation, and to venture into
other new aspects of WTO technical assistance.  He concluded that his delegation was fully aware of
and sympathetic to, the issues but were unsure as to how they should be addressed in addition to the
initiatives that were underway.  However, his delegation was open to the maintenance of the item onthe agenda and the continued discussion of the issues raised, including how initiatives or solutions
which were proposed would fit into the rule-based multilateral trading system both in the CTD and in
other Committees with related competencies.
32. The representative of India emphasised his delegation's sensitivity to, and sympathy for, the
concerns and problems of small economies.  He commended the initiative of the representative of
Mauritius and others in circulating their papers.  He agreed with the views of Egypt and Brazil that
this was the time to go beyond the conceptual stage and attempt to address their concerns.
33. Geography could not be changed;  for example, very little could be done about the fact that a
country was land-locked.  Thus, it would be useful for countries to focus on things that could be
changed.  In this regard, he would highlight four po ints which were pertinent for the next stage of the
discussion of this item in the CTD.  First was the pace of liberalization, where some Members had
pointed that it would be unfair to expect LDCs and small economies to maintain the same pace of
liberalization as others.  The pace of liberalization would translate into commitments in a rule-based
system such as the WTO.  Second was the issue of market access.  A paper had been submitted to the
Committee and the General Council by the Sub-Committee on Least-Developed Countries.  It wouldbe useful to consider the refinement of this paper, and in doing so, to take account of the concerns of
small economies.  It should be recognised that market access concerns were of tremendous
importance to small economies and needed to be addressed at some point in time.  Third was the issue
of technical assistance.  Although some Members had argued that technical assistance was not the
whole answer, this, however, was not equivalent to  discounting technical assistance altogether.  The
CTD had to focus on technical assistance in order to determine whether the normal channels of
technical assistance and its format were enough for small economies, and thereby determine whether arefinement was necessary.  Finally, his delegation agreed with other representatives that coordination
with other organizations was essential.  It was evident that the concerns and problems of small
economies were tackled by other organizations apar t from the WTO.  He supported the proposal by
the representative of Egypt for a Secretariat paper on the subject.
34. The representative of Nicaragua re-affirmed his delegation's support for, and commitment to,
the multilateral trading system.  Nicaragua was committed to the liberalization of its markets and to
globalization.  Serious commitments had been undertaken with expectations of obtaining benefits.
These benefits were periodically or constantly threatened due to the size of Nicaragua's economy and
the frequency of natural disasters.  These factors further reduced the benefits that Nicaragua could
draw from the multilateral trading system.  This was why his delegation felt that the serious accountshould be taken of the needs that had been expressed by the small economies as the WTO began to
prepare for the 3
rd Ministerial Conference.
35. The representative of Japan considered it apparent that some concrete views were emerging in
the discussions of the item.  His delegation, similar to views expressed by previous delegations,
understood, were sensitive to, and sympathised with, the condition of small economies.  HeWT/COMTD/M/23
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appreciated the constructive suggestions by the representative of Egypt, which were worth
considering.  At the same time, his delegation shared the view expressed by the European
Communities that the WTO was a rule-based Organization, and therefore efforts in the item under
consideration should be focused on relevant issues.  Furthermore, the points made by the
representative of India were worth considering.
36. He recalled that at the High-Level Meeting for LDCs in October 1997, there were 12 specific
round-tables in which each country voluntarily presented its needs assessments.  His delegation felt
that this sort of self-focus in the determination of needs would be a good idea.  In other words, small
economies should produce their own needs assessments and identify in what areas these needs would
be required.  This model, used in the context of  the HLM for LDCs, presented the possibility of a
useful approach.  In this regard, the paper by Mauritius was excellent.  His delegation urged others to
present their economic difficulties in a written form.  These written needs analyses would assist theSecretariat in its own analysis.  This approach w ould approximate the "spirit of ownership" which was
indispensable for succeeding in development.  He urged all small economies to develop this "spirit of
ownership" of their development plans.
37. The representative of Switzerland shared the concerns of Members that had documented the
vulnerability of the small economies to climatic and economic fluctuations.  His delegation also
understood the points made on the risks of marginalization which faced small countries other than the
LDCs.  His delegation was concerned about the marginalization of any country.  It would be
worthwhile to contribute to any effort in the WTO to reduce this risk.  Recalling the views expressed
by the European Communities, the CTD should focus on trade and development issues.  In this
regard, his delegation was uncertain as to the specific contributions the CTD could make on smalleconomies.  He was mindful of the possibility of the CTD dispersing its efforts in different directions
which would ultimately reduce efforts that could be made in other areas such as in respect of LDCs,
technical assistance reforms, etc.  This did not imply that the concerns expressed by several small
economies should not be taken seriously.  On the contrary, the placement of the item on the agenda of
the CTD showed that there was concern for, and accommodation of, their problems.
38. He noted several conceptual issues.  First, he supported the approach for proceeding as
suggested by the representative of Brazil and others.  If there was to be a Secretariat paper on the
subject of small economies, it should focus on the trade dimension and what was possible within the
rules-based multilateral trading system to alleviate the problems.  Second was the dynamic concept of
development.  In this regard, the representative of India had correctly noted that the size of any
economy was not a dynamic concept which could be changed.  Nonetheless, his delegation supported
the initiative by the representative of Mauritius, and hoped that it would not have a negative effect onthe other items on the agenda of the CTD.
39. The representative of Uruguay welcomed the paper on the concerns and problems of small
economies.  He encouraged others to detail their own national experiences.  Following the suggestions
by the representatives of the European Communities and India, his delegation would exclusively
focus on trade issues.  First, he recalled the Secretariat study on special and differential treatment inWTO Agreements.  An important feature of special and differential treatment provisions was the
longer transitional time-frames provided for small economies and for developing countries for them to
adapt to or comply with the provisions of WTO Agreements.  This provision was important.  Market
access was an equally important issue.  In this connection, when "special and differential" provisions
were introduced, the intention was to improve market access of developing countries in general.  Itwas apparent to his delegation that market access was still incomplete.  Market access was an
important issue, and it would be a valuable contribution if the WTO could effectively improve market
access conditions both for small economies and  for developing countries in general.WT/COMTD/M/23
Page 10
40. The representative of Australia welcomed the papers and expressed appreciation to Mauritius,
Guatemala, Fiji and others who had indicated that th ey would present papers on their specific national
concerns and experiences.  The papers so far were useful contributions that outlined specific concerns
about their capacities to participate in and take advantage of trade liberalization and the multilateral
framework of trade rules.  His delegation agreed that the WTO should be sensitive to the individualdevelopment needs of its Members.  This would require identifying particular problems faced by
developing country WTO Members, and determining the scope for WTO action to respond to these
problems.  There was a role, therefore, for the CTD and the Sub-Committee on Least-Developed
Countries in the discussions under this item.  The papers currently before the CTD were timely
reminders to focus the discussions on the specific concerns and circumstances of Members.  Members
needed to keep in mind the issues raised in the papers such as technical cooperation, trade facilitation,
electronic commerce and the implementation of specia l and differential treatment provisions in WTO
Agreements.
41. His delegation had noted the re-affirmation that technical cooperation had to be needs driven.
Full implementation of this principle would provid e an avenue to respond to some of the concerns
raised in WT/COMTD/W/50 and Corr.1.  Nonetheless, his delegation recognized that there were other
broad policy issues and discussions that would be required.  In thinking about further work, hisdelegation agreed with the positions taken by Br azil, the European Communities, Switzerland and
Uruguay namely, that it would be useful to focus on the trade dimension of the subject, the concerns,
problems and issues raised; and then determine what could be done within the existing rules-based
system.
42. The representative of Panama understood the concerns expressed by representatives who had
spoken previously.  She sought possible solutions, for instance, to ensure better and improved market
access for small economies.  She agreed with the representative of Morocco that special and
differential treatment provisions should be used, and that the WTO should work with other
international organizations on this objective.  If a list of studies were drawn up on the concerns and
problems of small economies, it would be obvious that the problems had been identified andactions/measures also proposed as solutions.  It was now time for the CTD to find and agree to the
appropriate mechanism to ensure that these actions are effectively applied.  Countless documents and
studies existed.  Future WTO negotiations were approaching.  Her delegation considered that the CTD
should work together in partnership to ensure that solutions were found.  There was a need to
strengthen the resources and capacities of small economies so that they could participate more fully in
the multilateral trading system.
43. The representative of Canada was sensitive to the concerns and problems of small economies
as expressed in the papers and interventions made by several representatives.  Her delegation
encouraged other Members to share their concerns, difficulties and problems with Members of the
CTD.  This was a very useful exercise.  The proposals made in the course of the meeting were
constructive.  Proposals by Egypt, India and Brazil were all worth considering.  Her delegation agreed
that the consideration of the concerns and problems small economies should focus on the tradedimensions.  Her delegation supported further work on the role of the CTD in addressing these
problems.
44. The representative of Barbados, speaking a second time, supported the proposal by Egypt and
others, to request the Secretariat to prepare an analytical paper on issues relevant to the impact on
trade of smallness and vulnerability.  She proposed that the Secretariat should conclude the analyticalpaper within a short time-frame so that it could be used in the preparatory process for both the 3
rd
WTO Ministerial Conference and the next Round of negotiations.  While her delegation agreed thatsome further brainstorming was necessary to clarify the issues, it was certain that Members, including
her delegation, would cooperate for any clarification that would be required.WT/COMTD/M/23
Page 11
45. The representative of Mauritius expressed ap preciation to all Members who had intervened,
and particularly to those who had supported the concerns and problems of small economies.  He
joined the representative of Barbados in supporting the proposal by Egypt.  Before the next meeting,
his delegation, after consultations with other Members, intended to outline how they saw the process
evolving.  His delegation sought the assistance of the Secretariat in guiding the CTD on this item.Against the background of his experience as former Chairman of the CTD, the representative of
Mauritius assured the representative of Switzerland that the evolution of work under the item on small
economies was intended to benefit the CTD.
46. The Chairman noted that a proposal had been made that the Secretariat should commence
work on a paper on small economies.  He also noted that the representative of Mauritius had said that
there would be further contributions and inputs into the Secretariat paper, including from the
delegation of Mauritius.
IV. ELECTRONIC COMMERCE
47. The Chairman said that the main item for discussion was the Secretariat paper on the
Development Implications of Electronic Commer ce, contained in document WT/COMTD/W/51.  He
recalled that at the Informal Consultations of the CTD on 23 November, Members, in preliminaryreactions, had welcomed the paper and expressed satisfaction with its scope and content.  While
expressing their wish to further analyze the paper, Members had emphasised, inter alia , the fine
balance in the paper between the potential benefits of electronic commerce and the problems faced by
developing countries.
48. The representative of Norway regretted that it had not had the chance to comment on the
Secretariat Paper at the Informal Consultations on 23 November 1998.  He welcomed the paper for its
usefulness.  In the view of his delegation, the essent ial issue raised in the paper was the need to build
up capacity in developing countries so that they could use the opportunities presented by e-commerce
as a means of conducting and facilitating trade.  It was evident that e-commerce offered potential
benefits for developing countries.  These potential benefits were well set out in the Paper.  However,what his delegation found most important was the description of what governments in developing
countries should do to enhance the use of the internet.  In this regard, he highlighted some of the
issues discussed in the paper.
49. First, the availability of physical infrastructure should be enhanced for conducting
e-commerce.  The regulatory environment and the price of telecommunications services were import
Widespread access to telecommunications was essential.  In order to attain this objective,
governments should focus on regulatory reforms and allow private competition in thetelecommunications sector with the aim of reducing and keeping low the price of telecommunications.
Governments should abstain from using the telecommunications as a major revenue earner for the
government.  Duty free or low duty access to computer equipment would also be important to ensure
widespread access and use.  Second, governments should invest in education, not just in higher
education, but also in primary and secondary education.  Widespread access to telecommunicationscould facilitate low-cost distance learning via the Internet.  In this sense, access to education and
access to telecommunications services interconnected.  Third, developing countries or any other
country, that wished to participate actively in e-commerce must ensure that domestic laws and
regulations were conducive to the use of e-commerce for trade-related communications and delivery.
According to the Secretariat's paper, developing countries have so far made few legislative reformsthat would accommodate the requirements for e- commerce.  Fourth, governments should avoid
narrow sectoral approaches in choosing measures for building national capacity for e-commerce.
Electronic commerce had the potential for system-wide and cross-sectoral benefits.  GovernmentsWT/COMTD/M/23
Page 12
should not attempt to pick "winners" (national champions), for instance, in trying to invest and
develop particular sectors to facilitate e-commerce at the cost of others.  An exception should be the
educational sector where the return of earmarked investments in telecommunication access and
computer equipment could be very high.
50. His delegation concluded that to enhance the use of e-commerce, developing countries should
focus on enhancing physical infrastructure;  proceed with regulatory  reform of the
telecommunications sector;  allow private competition in the telecommunications sector;  develop
supportive domestic legislation and regulations for the use of e-commerce;  ensure low duty access for
computer equipment;  invest in education, includin g primary education.  The private sector should be
the driving force on how to utilise the potential presented by e-commerce.
51. The representative of Egypt expressed appreciation to the Secretariat for the interesting paper.
He drew attention to paragraph 2 of the Secretariat Note, which stated that it was a first step to
address the issues in a preliminary manner.  He raised a number of issues which he hoped that the
Secretariat would address in future revisions or elaborations to the Note, which he hoped could be
produced soon.  He addressed a series of specific issues, as follows:
- More attention needed to be accorded to the use of information technology to
integrate developing countries in the multilateral trading system, contained in thethird bullet point of the mandate from the General Council to the CTD.  Not all trade
problems of developing countries could be solved by e-commerce.  However,
attention should be given to how e-commerce in particular, and information
technology in general, could be used to solve some of these problems, particularly at
a time when the share of developing countries in global trade was declining.
- Additional analysis was required from the Secretariat on investment requirements for
e-commerce, and the costs faced by developing country firms in using e-commerce,
as noted in paragraph 14 of the Note.
- The relationship between rural and urban areas in developing countries and its effect
on telecommunications density required further analysis.
- Further work was required on the issue of revenue allocation and duties, which were
briefly addressed in paragraphs 43 and 44.  It would be desirable to determine how
significant duties were in specific terms and in specific countries and to estimate how
liberalization would affect revenues and their effects whether positive or otherwise.
- Legal issues (paragraph 35) were also important and required further work,
particularly questions relating to taxation in relation to e-commerce.
- Issues regarding the substitution effect of e-commerce in trade of developing
countries also required further study.
- Further analysis should be made on the effects of e-commerce on inter-firm relations
and how supply and demand would be affected on a disaggregated level.  Related to
this would be the possible effects of e-commerce on competition at the sectoral level.
- The difficult issue of statistics should be incorporated into future discussions.  It
would be useful if an elaborated Secretar iat Note would present how statistical issues
are to be dealt with.WT/COMTD/M/23
Page 13
- The importance of human resource development had been highlighted by several
speakers.  More detailed work was needed on the human resource needs of
developing countries in e-commerce.  To this end, innovative solutions and success
stories should be emphasised.  He called on the delegations of developed countries to
share their experiences in e-commerce with  developing countries.  Many of these
experiences could be shared because, for instance, small and medium size enterprises
in developing countries would have a lot in common with comparable enterprises in
developed countries.  Another area where experiences could be shared because of the
cross-cutting character was in signatures where experience was illuminating and
innovative and could be shared with others.  Yet another area was fraud on the
internet, and ancillary issues pertaining to jurisdictional questions.
- Further analysis was needed on the possibility of designing market solutions to policy
challenges, and the relationship between private sector development and
governmental regulation, particularly for development purposes.  This was a
controversial area.  His delegation should like to see these issues addressed.
- The Secretariat, in a future note might assist developing countries in weighing various
public policy options.  Paragraph 29 of WT/COMTD/W/51 offered a good exampleof the price of telecommunications.  It indicated that developing countries should
strive to reduce the price of telecommunications, but to an extent might still provide
incentives to foreign investors to be attracted to these countries.  A trade-off was,
therefore, apparent.  The variables pertinent to such trade-offs required elaboration.
- The issue of intermediaries in e-commerce required further analysis in the light of
their potential effects on transactional costs.  On this issue, various views existed.
Some have argued that these intermediaries may disappear, but that other forms of
intermediaries (cybermediaries) may appear.
- The degree of penetration of e-commerce in different sectors also required further
analysis.  For example, it would be useful to know why some sectors, for example,the services sector, had experienced deeper penetration by e-commerce than others.
The results of such analysis would have signficant policy implications for developing
countries.  In the services sector, the effects of e-commerce on the movement of
natural persons would also require closer analysis.  The larger issue would be to
understand how e-commerce would affect Members obligations and commitments in
the GATS.  It was possible that commitments could be stretched because some of the
transactions undertaken by governments may not be detected even though the sameMembers had undertaken specific commitments in this area.  Concern had been
expressed as to the potential of e-commerce for undermining the protection that some
developing countries accord domestic producers in specific sectors.
- The issue of infrastructure: physical infrastructure, e-commerce infrastructure, and
the governance of the internet, was important and also required further analysis.
- E-commerce in the LDCs and in Africa required special attention.  African
connectivity rates was one specific issue which could be further studied;  for instance,
in 1995 only four African countries had full internet connectivity, while at present,
this had increased to about 47 countries.  His delegation hoped that this progress
would continue, although telecommunications infrastructure in Africa was low and
weak.  In recognition of the low levels of connectivity and low levels of
telecommunications infrastructure, the World Bank had recommended that Africa
should increase its connectivity levels from a rate of five lines per 1,000 to at leastWT/COMTD/M/23
Page 14
five lines per 100.  This would require substantial investments by governments in
developing countries before this recommended level can be achieved.
52. The representative of the United States stated that the Secretariat note was balanced and
useful, containing several issues that would lead to useful discussions.  She highlighted several issues;
a defining feature of e-commerce was access to networks to provide the band-width needed toadvance e-commerce services.  Access included providing for competition and regulation in network
services, including the terms and conditions for interconnection and in favour of new entrants.
Investment was initially important, particularly in technical and human resources.  Investment in
infrastructure could be encouraged through regimes that guarantee non-discriminatory treatment for
companies.
53. She clarified that EDI was a closed system and was not the same as Internet-based
information services.  EDI was a proprietary information system developed exclusively for the use ofselect users.  To the contrary, the Internet was an open system which could be used by services-
providers around the globe to share information.  Some developing countries appeared to have
specified in law that the only system that could be used for customs purposes was the UNCTAD
developed EDI system.  The United States believed that it was unwise to stipulate the sole use of any
particular technology.  It was better to permit the use of the best technology as determined by themarket-place.  In paragraph 21, the Secretariat provided statistics which give a snapshot of the
Internet today, which revealed the United States in an overwhelmingly dominant position.  However,
future data should show a declining trend of U.S.  dominance of the Internet, and show increasing use
in the developing world.  The data provided by the representative of Egypt assisted in indicating the
direction of use.  In 1995, the number of users in Africa was small but in just a few years, the numberhad increased significantly.  The U.S. was keen to see a steady increase in Internet use in Africa.  It
was also interesting to note that several developing countries were increasing Internet use.
54. In paragraphs 28, 29 and 32 of the Note, the Secretariat discussed aspects of electronic
commerce that had already been covered in the WTO framework.  The United States agreed with the
analysis in the paragraphs regarding the need to do  more in the areas of basic telecommunications and
the ITA.  Her delegation highlighted the significance of the long-term benefits that could accrue to
duty-free environment for cyberspace, as noted in paragraph 43.
55. Responding to the issue of developed country policies raised by the representative of Egypt,
she said that her delegation would circulate a document recently released by the United States on
national initiatives, included focusing on developing country needs.  This originated from some of the
efforts begun in Geneva which were targeted at the 2
nd WTO Ministerial Conference in May 1998.
The United States realized that e-commerce had to be global for any benefits to materialize even forU.S. companies.  Section III of the paper to be ci rculated, specifically dealt with this issue.  The
United States would circulate additional papers as the CTD proceeded with the WTO work
programme on e-commerce.  These papers would highlight some of the points raised by Egypt. She
also highlighted the interest of the United States in small and medium size enterprises.
56. Infrastructure was a vital issue which she hoped would be examined in the February Seminar
on Electronic Commerce and Development.  UNCTAD was to be applauded for including a
programme discussing infrastructure at the Lyon Summit on Partners of Development,
9-12 November 1998.  Some of the statements made at UNCTAD proved that for developing
countries, the benefits of electronic commerce for developing countries could out-weigh any effects
that might be perceived as negative.
57. The representative of the United States also informed the CTD that a seminar would soon take
place on WTO Secretariat premises on e-commerce by a private sector-led organization.  This wouldWT/COMTD/M/23
Page 15
provide information on work being undertaken by a number of companies, and should show that more
could be accomplished in future WTO seminars and focusing on development in particular.
58. The representative of Uganda welcomed the Secretariat paper.  His delegation recognized that
e-commerce was a phenomenon that had come to stay and was irreversible.  However, the pace of
evolution of e-commerce was considerable, and beyond the level of development and the capacity ofmany developing countries, in particular the least-developed countries.  This situation made it
imperative to address the needs faced by developing countries and to address those problems which
hampered their ability to take advantage of e-commerce.  The biggest problem regarding e-commerce
which developing countries had to grapple with in the short and medium-term was the problem of
weak and poor physical infrastructure, notably in  the areas of energy and telecommunications.  As
contained in the Secretariat paper, the availability of good infrastructure was a prerequisite for
benefitting from e-commerce.  Good infrastructure was lacking in many developing countriesespecially the LDCs.  He stated that in Uganda, power supply, telephones, fax and internet facilities
were scarce, concentrated in urban areas, unreliable and expensive.  Recently, the Ugandan
government had liberalized the telecommunications sector and the results were encouraging.  This
problem of poor infrastructure in developing countries had to be addressed in order to level the
playing field.  He called on the international community to assist developing countries in this area.Similar assistance was also required in the development and improvement of human infrastructure
requirements for e-commerce, technology transfer, etc.
59. The representative of Uruguay welcomed the Secretariat paper and expressed appreciation to
the delegations of the United States, Uganda, Norway and Egypt, for their valuable comments.
Paragraphs 29, 30 and 32 on physical infrastructures contained concrete Secretariat suggestions todeveloping countries as to how to improve access to telecommunications, through reduction or
elimination of tariffs for hardware or software, and improving developing country commitments under
the GATS and the ITA (a plurilateral Agreement).  However, there was no clear identification of the
type of contributions, inputs or experiences th at developed countries would give to developing
countries in e-commerce.  Paragraph 43 of the Secr etariat Paper, relating to the revenue implications
for developing countries from the use of e-commerce, referred to recent WTO Secretariat research on
which it would be useful to have further information.  Paragraph 44 noted that taxation of electronic
transmissions is not impossible and that different methods of doing so were being studied by
governments.  He asked what was included under the concept of electronic transmissions.  Referring
to paragraph 48 on legal matters, he agreed that there must be a legal framework because the growth
and development of e-commerce were intimately link ed with the need to ensure legal security and
privacy.  In this regard, it would be useful to cooperate with international organizations in this areasuch as UNCITRAL, UNCTAD and others.
60. The representative of Peru welcomed the Secretariat for the useful paper, which would ensure
that the development dimension should be a positive contribution in the debate on e-commerce.  The
benefits obtained by developing countries from e-commerce would depend on how certain challenges
are tackled, including access to computer infrastructure and training of human resources.  Anotherimportant element was the development content, bearing in mind, cultural and linguistic diversity,
referred to in paragraph 34 of the note.  Efforts to face these challenges should be made by
Governments which would also have to promote the active participation of the private sector.  The
note indicated how domestic policies could exert influence in creating an environment favourable to
foreign investment, promoting private competition in domestic markets, and facilitating access tocomputer goods and services by means of tariff reductions.  Domestic decisions which could result in
specific commitments in the context of the GATS and the ITA could also facilitate this process.
However, it could be questioned whether these efforts would be sufficient or whether they would need
to be complemented by further efforts at the multila teral level.  Having regard to the potential of e-
commerce and its potential for the integration of the developing countries into the world economy, hefelt that domestic policies should be integrated with international initiatives.  If the WTO had a role toWT/COMTD/M/23
Page 16
play, then the document and the CTD debates could be a basis for considering the multilateral aspects
of such efforts, including, inter alia , the identification of modalities for technical cooperation.
Technical cooperation would be efficient in assisting developing countries to overcome access
problems, problems with training, and initiating development content in e-commerce as well as
financial resources that would be required for such efforts.
61. The representative of the European Communities welcomed the Secretariat paper as very
useful.  His delegation agreed that the paper emphasised the right aspects and highlights the salient
issues to be examined by the CTD, such as the positive educational benefits.  In this regard, human
resource development was crucial even for the European Communities.  The representative of Egypt
had raised a vast set of questions, several of which were directed at the developed countries, seeking
to learn from their experiences.  All these questions could not be answered.  However, his delegation
would think about several of the questions raised.  The European Communities would endeavour topresent its experiences, for instance, with small and medium sized enterprises.  Delegations had
emphasized the vital importance of technical infrastructure.  He agreed with the importance accorded
to this issue.  Further work was needed on this issue, including technical assistance aspects.
62. He asked how the debate at the Seminar on Electronic Commerce and Development,
scheduled for 19 February 1999 would be structured.  It was felt that that several of the importantissues raised in the course of the on-going debate could assist in structuring the debate at the Seminar
in 1999.  Furthermore, on-going parallel activities might be related and coordinated.  For instance, the
Council for Trade and Goods also had arranged discussions on the e-commerce.
63. The representative of Burundi welcomed the document by the Secretariat.  Her delegation
expressed appreciation for the views expressed by Egypt and Uganda on the subject.  Although
developing countries were forced to integrate into the multilateral trading system and had been
ineluctably drawn into the globalization process, in electronic commerce these countries faced
problems of infrastructure and other equipment problems.  These problems were more acute in rural
areas where the telecommunications network was not developed.  The marginalization of developing
countries could be further accentuated.  Most of the developing countries did not have full control ofthe impact of electronic commerce.  Regional and national seminars on the subject would be required.
Considerable financial assistance would also be required.
64. The representative of India commended the document by the Secretariat.  In paragraph 51, the
document highlighted the fact that computer software and services are now India's largest export
earner.  Against this background, India's interest in the subject of electronic commerce was evident.
He associated his delegation with several points made by the representative of Egypt, and emphasised
two points.  First, India was interested in non-discriminatory access to and transfer of technology inthis area.  This objective was being separately pursued in discussions on electronic commerce in other
fora.  Second, in paragraph 39, the consequences for developments in this area in the field of
movement of natural persons had been mentioned.  He remarked that the problem of brain drain was
not specific to the area of electronic commerce, but was a larger issue.  Furthermore, the restrictions
placed by some of the developed countries in the area of the movement of natural persons remained astrong barrier to international trade measures.
65. The representative of Mexico welcomed the Secretariat paper on the development
implications of electronic commerce and noted that in electronic commerce, it was obvious that
assisting developing countries was also to assist oneself.  The question, however, was how to conduct
this assistance.  It could be said that half of the problems were for governments to resolve, and theother half rested on global interdependence.  In this regard, the developed countries had a lot to offer
in international organizations.  Promoting developm ent to ensure that developing countries benefit
from new technologies in electronic commerce should be the objective.  The challenge was to ensure
that technical assistance and the development dimension should be focused on productivity and tradeWT/COMTD/M/23
Page 17
viability of a country to ensure a more balanced development.  Needs and the problems should be
clearly defined, the extent of resources should be  ascertained, and viable projects with productive
possibilities for an open economy should be developed.  New schemes in production for electronic
commerce should be considered which promote competition and productivity, reduce transaction
costs and promote employment as well as relations with external business partners, in particular withsmall and medium size enterprises.
66. Several relevant issues could be identified in the Secretariat document, the representative of
Mexico had identified several salient and relevant issues including:  infrastructure for e-commerce.
Modern telecommunications network and electricity distribution facilities were beneficial for
developing countries and LDCs which lagged behind on such basic services.  The problems in this
area of services were technical and required more resources for their resolution.  An important aspect
of the resolution of the problem depended on government participation combined with technicalassistance from and cooperation with the WTO and other international organizations such as the ITU,
UNCTAD, etc.  Technology was a key factor in the promotion of electronic commerce.  It was not
simply a question of acquiring business know-how a nd resources, but also k nowing how to apply this
knowledge in a technical manner.  In this regard, cooperation with international organizations
competent in the area of e-commerce was fundame ntal.  Regional bodies were also conducting
analysis on electronic commerce.  Access was also an important issue with three main elements -
access to infrastructure (fax, telephones, computers, modems, software, hardware, etc.);  access to
internet connections which offered broader access to information services and possibilities for trade;
and access to databases for business creation.  Cost was also an important aspect.  Currently, two
trends were visible.  First, a negative upward trend in cost where the infrastructure depended on thetelecommunications rates and other computer installations.  In this connection, the basic equipment
costs for computers and telephones remained very high in developing countries and LDCs.  Second,
was the positive trend of falling costs for electronic use of documents or computerized information.
Investment, education and training were also issues of cardinal importance.
67. The Secretariat document was a good basis for discussions in the CTD.  The document should
become the basis for further evolution and improvements in the CTD's deeper evaluation of the
subject.  It was possible that relevant recommendations could be drawn from the document.  The
index of document could be improved and re-ordered on a practical basis to achieve the goals of the
CTD in the light of the forthcoming Seminar on Electronic Commerce and Development, 19 February
1999.  His delegation suggested the re-ordering of the Secretariat document as follows:
(a) introduction - "potential benefits";  (b) problems of infrastructure;  (c) transparency;  (d) transfer of
technology;  (e) effects of e-commerce on employment and movements of physical persons, effects ofe-commerce on small- or medium-size businesses;  (f) financial implications;  (g) legal issues;
(h) control of internet contents;  (i) technical cooperation;  and, (j) conclusions and recommendations.
68. The representative of the United States focused on the issue of the movement of natural
persons.  She emphasised that the essential nature of e-commerce and cyberspace would put in
question the issue of movement of natural persons.  She also highlighted the point raised inparagraph 40 of the Secretariat document regarding the benefits that would accrue to developing
countries by virtue of exploiting the advantages arising from and through e-commerce, particularly
the advancement of skills in a country and overall income benefits.
69. The representative of Australia underscored the importance, in future discussions, of focusing
on the role of the liberalization of telecommunications under the GATS and the ITA could play in
addressing the difficulties in infrastructure identified by developing countries.  It would assist the
CTD in its discussions to examine how liberalization under the GATS and other relevant agreements
could contribute to building up the necessary infrastructure.WT/COMTD/M/23
Page 18
70. The representative of Egypt welcomed the initiative by the United States which was worthy
of emulation by other developed countries.  He also welcomed the Seminar to be organized by the
United States private sector on 8 and 9 December 1998, which would be of tremendous assistance to
developing country Members in their assessments of the potential benefits of e-commerce and
information technology.  He also agreed with the representative of the European Communities that
many of the issues which had been raised in the course of the discussions under item on e-commerce
in the CTD could be used in preparation for the Seminar in February 1999.  It was also hoped that the
concerns which had been raised should also be addressed in the course of the Seminar.  There was an
urgent need for more information on the issue of revenue loss.  His delegation was not fearful of the
overall benefits of e-commerce, but to the contrary was confident that the benefits of e-commerce
would outweigh the losses.  However, he simply desired a better understanding of the potential for
and impact of possible revenue loss particularly in the light of the revenue situation of manydeveloping countries.  Finally, his delegation requested for informal consultations on the issues raised
before the Seminar on Electronic Commerce and Development scheduled for February 1999.
71. The representative of the Secretariat stated that the Secretariat would take account of the
issues raised in preparing for the Seminar on Electronic Commerce and Development, 19 February
1999.  He reminded Members that the Secretariat outline for the Seminar had been earlier circulatedinformally.  The outline had been focused on two them es namely on: (i) the business use of electronic
commerce; and, (ii) the legal/regulatory issues at the level of government.  He appealed to Members
from developed and developing countries to forward to the Secretariat names of successful companies
and of individuals or organizations in countries that could make useful contributions to the private
sector and to the governmental legal and regulatory questions.
72. The representative of Canada was confident that the Seminar on Electronic Commerce and
Development, scheduled for February 1999, would assist in achieving the objectives of the CTD
Work Programme on Electronic Commerce.  Her delegation underscored the importance of clear
objectives for the February 1999 Seminar.  This objective had to be linked to the overall objectives of
the WTO Work Programme.  She agreed with the proposal by the Secretariat to structure the Seminaron two themes, and also to include private sector participation.  However, the first theme: the business
use of electronic commerce, might be re-phrased to encompass private/public partnerships.  In the
case of the second theme: legal and regulatory issues at the governmental level, the focus could be on
trade-related issues within the purview of the WTO Work Programme.  Regarding substantive
discussions at the February 1999 Seminar, her delegation hoped that discussions at other fora, such as
at the UNCTAD "Partners for Development" Meeting at Lyon, France, 9-12 November 1998,
although very useful, would not be duplicated.  The CTD Seminar should focus on the developmentaspects of electronic commerce related to the WTO Work Programme.  The CTD document provided
a good starting-point for discussions on the developm ent implications of e-commerce.  Her delegation
would comment more fully on the Secretariat document at a later stage.
V. BRIEFING BY UNCTAD ON THE RESULTS OF THE "PARTNERS FOR
DEVELOPMENT" MEETING, LYON, 9-12 NOVEMBER 1998 AND FOLLOW-UP
ENVISAGED
73. The Chairman welcomed Mr. Jean Gurunlian, Executive Secretary of Partners for
Development, and invited him to brief the meetin g regarding the Partners for Development Meeting
held in Lyon, 9-12 November 1998.
74. Mr.  Gurunlian recalled that the Lyon Meeting was the outcome of the mandate given to the
Secretary General  to organise a single meeting to serve  as an example of what UNCTAD  might
achieve in conjunction with civil society. The  meeting could not be financed out of the regularWT/COMTD/M/23
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budget, and the support of sponsors, and particularly the City of Lyon, was critical. The
representatives of civil society attending the Meeting were invited on the basis of their capacity to
participate in partnerships for development. There were 5000 participants at the summit and half were
from the private sector. Fifty Ministers and six heads of states attended,  as did numerous NGOs.
Mr. Gurunlian stated that the organisers of the meeting  had the courage to address a number ofsensitive procedural issues.  For instance, no speeches were given and there was no negotiated text to
adopt which allowed participants to focus on discussing the main issues covered by the summit.
Ministers and representatives of NGOs were placed on equal footing.
75. Mr. Gurunlian informed the meeting that two groups of subjects were discussed at the
meeting. The subjects discussed in the first group were electronic commerce and transport, in view of
the fact that e-commerce presented significant opportunities for developing countries, while high
transport costs posed a significant problem for developing countries. Agreed partnerships included theprovision of free services by four of the five major Information Technology consultancy firms to
developing countries wishing to undertake a study of their legal framework for E-Commerce, and an
arrangement between  IRU and 80 countries to better manage transit traffic.  The second group was
given the title of "Profits and Development",  reflecting the fact that there can be a  convergence
between the profit motive of private enterprise and development objectives. Areas covered includedthe following: (i) commodities, particularly the minimisation  of risks resulting from price
fluctuations, and the use of modern financial instruments to reduce transaction costs; (ii) micro-
finance, were  a notable achievement in convincing several large financial institutions to raise funds
from international markets in order that these be lent by micro-finance institutions; (iii) investment,
through the participation of the Association for th e Promotion of Investment; and, (iv) the Bio-trade
programme, based on the Convention on Bio-trade which seeks to strengthen the negotiating position
of indigenous peoples,  in order to allow them to benefit from the marketing gains on products based
on indigenous resources.
76. The Chairman thanked Mr. Gurunlian for his presentation and opened the floor to questions
and comments.
77. The representative of Egypt thanked Mr. Gurunlian for his presentation,  and expressed the
appreciation of his government to the government of France, the City of Lyon and its
Mayor Raymond Barre.  He noted that the Egyptian delegation to the Lyon Meeting consisted of 18
people, 14 of whom were from Cairo, and who were ac tive in a number of fields, such as agriculture,
micro-finance and the private sector.  He expressed the view that, for the first time,  real partnerships
had been made, and that the choice of subjects  covered in the summit was excellent.  He noted that
while some of the issues discussed were new, and others longstanding,  they were all approached froma new perspective, and all required the arrangement of public - private partnerships.  He hoped that
similarly innovative events could be repeated in the future, and stated that his delegation would follow
the matter  up with UNCTAD.  He proposed that the meeting be held every four years as a regular
feature of UNCTAD's activities, adding that he hoped that others would support such a trend.
78. The Chairman thanked the representative of Egypt for his intervention.  He expressed on
behalf of the Committee its thanks and appreciation to France, Lyon and the UNCTAD  for the event,
adding that the WTO and the Committee looked forward to greater cooperation and a strengthening of
their relationship with UNCTAD.
VI. TECHNICAL ASSISTANCE ACTIVITIES: THREE-YEAR PLAN: 1999-2001
79. The Chairman stated that Members had commented extensively on the Secretariat Paper
(WT/COMTD/W/48) at the previous formal meeting of the CTD. Those comments had been
exhaustive and the Secretariat had taken note of the comments made. The Chairman informed theWT/COMTD/M/23
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meeting that he understood from the Secretariat that the paper requested by the delegation of Egypt on
the use of information technology in the delivery of technical assistance was still  in preparation and
would be ready in good time for the next meeting. He  proposed that this agenda item be carried over
to the next Session.  This was so agreed.
VII. EVALUATING TECHNICAL ASSISTANCE: ISSUES FOR REFLECTION
80. The Chairman informed the meeting that, following the request by members at the
22nd Session of the CTD, he had conducted informal consultations on the subject of evaluating
technical assistance, on the basis of the issues paper produced by the Secretariat (Job No. 4299) and
the extensive comments by members at the last formal  meeting.  He recalled that it was agreed that
the Secretariat would consult with delegations that had raised the various points. He understood that a
date acceptable to all delegation for holding such consultations was still being sought.
81. The representative of Morocco reiterated the importance attached by his delegation to the
concept of external evaluation.  He stated that external evaluation should be a systematic complement
to internal evaluation, and that the guidelines and modalities for implementation adopted by the
Committee left the window open for external eval uation.  The Secretariat Note (Job No. 4299) of
26 August 1998 mentioned this possibility and explained  certain important aspects of externalevaluation.  He added that his delegation had on several occasions underlined the positive impact of
external evaluation on technical assistance.  The r ecourse to external evaluation ensured objectivity in
addressing the concerns of all involved and in th e measurement of the impact of technical assistance
in enhancing capacity. External evaluation facilitated the implementation of technical cooperation
programmes, ensured linkages between activities, allowed for increased transparency and qualitycontrol, and could facilitate the streamlining  of the use of human resources in the  WTO.
82. The representative for Morocco further  noted that several delegations were in favour of
external evaluation. His delegation understood concerns expressed about involving the WTO in a
costly evaluation exercise, and stressed that any such exercise should be realistic and cost-effective.
His delegation was prepared to examine alternatives that would reflect the concerns of both those insupport of and those who expressed reservations about external evaluation.
83. The representative of Switzerland said that his delegation wished to see progress on this issue.
He noted that discussions had continued over the course of a year, and that there was consensus that
the evaluation of technical assistance should take place.  Current discussions centred around issues
such as whether evaluation should be internal or external,  determination of criteria and methodology,
etc.  These discussions risked indefinite continuation.  Noting that  no date had been set for informal
consultations, the representative of Switzerland expressed dissatisfaction with the present state ofaffairs.  His delegation was not opposed to external evaluation, adding that there was no contradiction
between external evaluation and the internal evaluation which had already started.  He added that
external evaluation should not interfere with the procedures already set up by the Secretariat, and
suggested that an expert from the International Trade Centre (ITC) could be invited to attend the
consultations, to provide expertise and advice in devising criteria and methodology for the evaluationof WTO technical assistance.
84. The representative of Egypt  supported the idea of inviting an expert from the ITC, and added
that the invitation could be extended to an expert from the UNCTAD. He then recalled the concern,
expressed at the time of writing of the Secretariat Note, regarding the availability of funds for
technical assistance, and asked whether any developments in this respect had taken place since thedistribution  of the Note.  He further recalled th at his delegation had requested the preparation of a
factual paper by the Secretariat, for the purpose of transparency,  regarding conditions associated with
the funds that had been provided to the WTO for technical assistance.WT/COMTD/M/23
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85. The representative of the Secretariat (Mr. J-M. Léger) said that his office had tried to schedule
informal consultations with several delegations that had expressed interest in the evaluation of
technical assistance.  The date of 10 December 1998 had been proposed, but the dates had been
unsuitable for two delegations.  Since 14 December 1998 clashed with the meeting of the General
Council, he suggested the date of 17 December.  He informed the meeting that his office wouldcontact the delegations concerned as to the suitability  of this date at the next informal meeting. The
purpose of this meeting would be to conduct a "brainstorming" exercise regarding the method of
evaluation.
86. The Secretariat representative said that  the average size of a WTO technical assistance
mission or workshop was 2.3 days, at an average cost of 10,000 Swiss Francs.  He  pointed out that
the cost of  any  technical assistance  provided by the ICC needed to exceed a lower limit of 300,000
to 400,000 Swiss Francs before any evaluation took place.  Therefore, the WTO should not becompared to the ITC or the UNCTAD, with respect to technical assistance activities.  Mr. Léger
agreed with all delegations that an evaluation was necessary, and said that such an exercise should be
in line with the technical mission undertaken.
87. He recalled that at the last formal meeting  a shortfall of 3 million Swiss Francs had been
projected for 1999. Since the last meeting, several delegations had  informally indicated possibilitiesof funding for the 1999 programme, to an extent that would reduce the projected shortfall to 1 million
Swiss Francs.  Furthermore, he informed the meeting that his office would take the necessary steps to
prepare the paper on conditions attached to funds provided for technical assistance. He added that it
was necessary to consult with donors to examine whether the disclosure of such information to
representatives at this meeting would present any difficulties.
88. The Chairman thanked Mr. Léger and invited Members to communicate, at the earliest
possible time, to Mr. Léger the suitability of  17 December 1998.
89. The representative of the European Communities supported the statement made by the
Secretariat regarding the scope and intensity of technical assistance provided by the WTO compared
with other organisations. His delegation did not wish to see an excessively bureaucratic mechanism,which was one reason why it had been reticent about external evaluation at a time when internal
evaluation had not been properly established.
90. He recalled remarks made in previous meetings that it was important to include objectives
and success indicators in the planning stage of a project.  The paper was still unclear as  to the
feedback mechanism between evaluation and future projects. Noting that the secretariat had presented
six proposals on parameters at the last meeting of the Sub-Committee on Least-Developed Countries,
the representative of the European Communities said that his delegation would be willing to pursuethis technical discussion in an informal way.
91. The representative of Switzerland  thanked Mr. Léger for the information provided to the
meeting, and enquired as to whether an ITC expert had been invited to the informal meeting proposed
for 17 December 1998, and whether there was opposition to the presence of such an expert.
92. Mr. Léger said there was no objection to the presence of an ITC expert.  The  ITC had been
requested  to provide a statement in writing regarding their approach to the evaluation of technical
assistance, and this document  could be supplemented by the presence of an expert.
93. The representative of the United States stated that his delegation supported the concept of
introducing procedures to allow a better internal evaluation by the Secretariat of its technical
assistance activities. Technical assistance  was a partnership between  the secretariat and the recipient,with an important role played by members. He said  the delivery of technical assistance was oneWT/COMTD/M/23
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component of a process that began with the identification of needs, continued with the development
and delivery of the programme by the Secretariat, in combination with appropriate officials from the
recipient country, and was supported by follow up. The identification of needs was one of the most
important parts of the process, and was required for the effective evaluation of technical assistance.
The beneficiary country  had the main responsibility to ensure that requests for technical assistancewere well focussed. While it is incumbent on the Secr etariat to ensure follow up to their programmes,
it was equally important for beneficiaries to provide on-going structures for those attending training
and to ensure that information was used to achieve the goals of the training activity.
VIII.  TRADE FACILITATION: CONTINUATION WITH THE IDENTIFICATION OF
MEMBERS' PRIORITIES ON DEVELOPMENT-RELATED ISSUES AS
CONTRIBUTION TO THE WORK PROGRAMME OF THE COUNCIL FOR TRADEIN GOODS (CTG) ON TRADE FACILITATION
94. The Chairman recalled that this item had been  the subject of informal consultations held on
23 November 1998.  The results of the consultations clearly suggested that the contributions   of the
CTD to the Work programme of the CTG should focus on the following three items: (i) trade
facilitation  through electronic commerce and its impact on Small and Medium Enterprises (SMEs);(ii) trade facilitation as a "win-win" situation a nd a factor in economic development; (iii) any other
issues that may be identified from a compilation of points made in the CTG on the subject, including
from the Trade Facilitation Symposium that was held in March 1998.
95. He informed the meeting that it had been ag reed at the informal consultations that the
Secretariat should, on the basis of present contributions by Members, produce a paper that the CTDwould consider as its contribution to the Work Programme of the CTG. He proposed that the CTD
agree with the understanding that emerged at the informal consultation that the Secretariat should
produce a draft paper for its contribution.  It was so agreed.
IX. OUTSTANDING REQUESTS FOR OBSERVER STATUS
96. The Chairman said that there were nine outstanding applications for Observer Status in the
CTD.  He had undertaken informal consultations regarding the organisations concerned on
23 November 1998.  The results of these consultations suggested that Members needed more time to
reflect on the applications.  A Secretariat Informal Note on Observer Status for International
Intergovernmental Organisations in the WTO had been prepared and circulated on 27 November 1998
in response to a request by the delegation of Egypt.
97. He proposed that Members consider approving the requests for Observer Status of the
Organisations as follows: (i)  South Centre ; (ii) Economic Cooperation Organisation (ECO);
(iii) South Pacific Forum; (iv)  the Inter-Arab  Investment Guarantee Corporation; (v) the West
African Economic and Monetary Union  (WAEMU);  (vi) Arab  Maghreb Union; (vii) Islamic
Development Bank; (viii) Organisation of the Islamic Conference (OIC); and, the Organisation of
African Unity (OAU).
98. The representative of Switzerland thanked the Secretariat for the Informal Note.  He said that
there was some discrepancy between the information required of applicant bodies, as detailed in the
Note, and the actual letters of application that had been forwarded to the delegations. While his
delegation did not have any substantive objection to any of the Members, it did consider that
procedural and systemic issues were involved.  It was difficult to formulate a judgement regarding the
applications against the criteria set out in the Note, on the basis of the short letters sent. Consequently,
the representative of Switzerland suggested that if other Members shared this view that theWT/COMTD/M/23
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organisations should be invited to submit applications with fuller information as a  matter of
transparency and procedure.
99. The representative of the United States said his delegation was not prepared to approve
Observer Status until the General Council completed its work on guidelines for granting observership
status.
100. The representative of the Republic of Korea said his delegation had no objection to granting
Observer Status to the applicants. He noted that the Informal Note referred to attendance obligations,
and recalled that in the previous meeting reservations had been expressed by several delegations.  He
therefore suggested the secretariat follow the guidelines on attendance obligations, as this would
prevent the granting of Observer Status to an excessive number of organisations.
101. The representative of Australia  said his delegation very much supported the request for
observership by the Secretariat of the South Pacific Forum. He said that the letter from the Acting
Secretary General of the Forum provided sufficient indication of the importance of acceding to the
Forum's request for observers status. Five of the Forum's members were least developed countries,
most members suffered from handicaps related to size or geographical isolation, and very few had
representations in Geneva, even though 5 were WTO members and 3 were in the process of accession.
The representative of Australia said that his country had worked closely with Forum members whohad acceded to the WTO in the recent past or were in the process of acceding, and had provided a
range of technical assistance to these countries. He concluded by saying that the granting of Observer
Status to the Forum would be very much  in the interests of its members and also of the WTO.
102. The representative of Egypt repeated a proposal he had made in the informal meeting that the
Informal Note clearly showed that Observer Status  was granted on an ad hoc basis in other WTO
bodies, and that requests in the CTD should be treated similarly until the General Council had
completed its work on guidelines for the granting of Observer Status.  He noted that several applicants
had been awaiting a decision for a long time, and that it would be inappropriate to delay their
application further by requesting additional information.  He proposed that applicant organisations  be
invited to attend on an ad hoc basis, and that an y requests for further information be made in the
course of their ad hoc  observer status.  Noting that Observer Status was usually renewed on a
meeting-by-meeting basis, any organisation that  failed to meet the attendance obligation could have
their status as Observer revoked.
103. The Chairman invited reactions to this proposal.
104. The representative of the European Communities said that his delegation fully supported the
South Pacific Forum (SPF) and the West African Economic and Monetary Union (WAEMU) in their
respective requests for Observer Status, and was  satisfied  that the two organisation were closelylinked to trade issues and met the other criteria described in the Informal Note.  He said that as far  as
other organisations were concerned, more information was required, especially with regard to their
links to trade issues.  The Committee should be careful to avoid arguments that could be used to
obtain Observer Status elsewhere in the WTO , and should not neglect the systemic impact of its
decisions. Reacting to the  proposal made by Egypt,  the representative of the European Communitiessaid his delegation agreed that more information was required of applicants.  His delegation was
flexible as to whether further information should be sought from applicants by inviting them to attend
or rather by requesting a written statement, as long as it was made clear that further input was needed
from the applicants.
105. The representative of the United States indicated that he was unable to support the proposal
made by Egypt, on account of the fact that his instructions related solely to the granting of permanent
Observer Status.  The proposal had been noted for referral to his authorities in Washington.WT/COMTD/M/23
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106. The representative of Tanzania said that his delegation supported the proposal made by
Egypt. He expressed the hope that the United States would drop its objection to ad hoc arrangements,
since this was not consistent with the approach to ad hoc arrangements  taken in other bodies.
107. The representative of Burundi said she supported the Egyptian proposal, particularly with
regard to the Organisation.
108. The representative of Uganda said his delegations supported the proposal made by Egypt, and
the statements made by Tanzania and Burundi. His delegation was particularly in support of the
applications for Observer Status made by the OAU, OIC, IDB and the South Centre.
109. The representative of Bangladesh said his delegation supported the proposal by Egypt. He
said that each of the organisations was qualified for admission as Observers, adding that a number
were active in the field of trade and development. His delegation supported full Observer Status for all
the applicants, irrespective of their stance in any particular field, and that this position was fullyconsistent with the Committee's position on transparency and wider global participation.
110. The representative of Switzerland said that the proposal made by Egypt for the granting of
Observer Status  on a meeting by meeting basis was acceptable to his delegation.
111. The Chairman said that it was necessary to make some progress on this item, and requested
that the Secretariat and concerned delegations  arrange a date for informal consultations.
X. OTHER BUSINESS
112. The representative of the European Communities said that the CTD should reflect on and
provide some input to the High Level Sympos ium on Trade and Development, 17-18 March 1999.
He asked the Secretariat and other delegations whether they had formed more articulate viewsregarding the format and content of the Symposium, and said that the CTD could be a forum to gather
ideas to make the Symposium a successful event. He added that though the Symposium was not
strictly speaking within the framework of the WT O, his delegation considered it an important event
and desired that it be fruitful to the work undertaken in the CTD.
113. The representative of Mexico agreed with the statement made by European Communities, and
said that the Committee could make a substantive contribution regarding the content and manner of
organisation of the Symposium in order to take full advantage of the opportunities it would offer.
114. The representative of Egypt said that the Director-General had chaired an informal meeting
and had received comments on a proposal made by the Secretariat, which itself was based on a paper
submitted by Egypt to the General Council. Several of these comments had been taken into account,
and three topics of discussion had been identified for the Symposium.  His delegation judged that
preparations by the Secretariat were proceeding satisfactorily, and welcomed either formal or informaldiscussions concerning the symposium in this Committee.
115. The representative of Panama indicated the concern and interest of her delegation in the
support and contribution by the CTD to the greater participation of Members in the forthcoming
Symposium. She suggested that the Secretariat should ensure the participation of different sectors
involved in strengthening commerce as well as the representative participation of Members.
116. The Director, Development Division, briefed Members on the arrangements, so far, for the
HLS on Trade and Development.  Consultations held by the Director General and comments by
delegations on an outline for the Symposium constituted the basis for the Secretariat's work.  TheWT/COMTD/M/23
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Symposium would be held on 17-18 March 1999, and woul d be held back to back with the similarly
structured High-Level Symposium  on Trade and the Environment, 15-16 March 1999.  He informed
delegations that the Director-General had circulated a Background Note setting out the outlines for the
two symposia, and added that the Director Genera l would make a statement to the General Council
later in the week.
117. The Chairman made several concluding remarks.  First, he noted that 1998 had been a good
year in which the CTD had addressed a wide spectrum of issues, making significant progress on some
issues and initiating substantive deliberations on others.  If the CTD had not achieved the integration
of all economies into the Multilateral Trading System in a way allowing them to derive maximal
benefits, it had certainly contributed to the process. Second, the Sub-Committee on Least-Developed
Countries, under the chairmanship of Ambassador Bruun, had complemented and facilitated the work
of the CTD.  Third, he noted that he viewed delegates attending the Sessions of the CTD ascolleagues, who shared in a common responsibility of giving trade a development bias. Finally, he
thanked the Secretariat and the supporting staff for their work, and extended seasons greetings to all.
118. The representative of Mexico requested information on the next formal meeting of the CTD.
119. The Chairman said that the next meeting had been scheduled for 2 March 1999.  The
possibility of advancing the date of the meeting had been envisioned, but this was no longer
practicable given the overall programme of WTO meetings for February.
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