RESTRICTEDWORLD TRADE
ORGANIZATIONWT/COMTD/W/63
12 October 1999
(99-4296)
DRAFT REPORT (1999) OF THE
COMMITTEE ON TRADE AND DEVELOPMENT
Chairman:  Mrs. Absa Claude Diallo (Senegal)
1. This report covers the activities of the Committee on Trade and Development (CTD) and the
Sub-Committee on Least-Developed Countries (SCLDC ) for the period 25 November up to the date
of issue.  The last annual report of the Committee is contained in document WT/COMTD/W/52 of25 November 1998.
2. The Committee held five sessions during the period, on 7 December 1998, 2 March 1999,
4 June 1999, 7 July 1999 [and 18 October 1999 ].  The Minutes of these meetings are contained in
documents WT/COMTD/M/23, WT/COMTD/M/24, WT/COMTD/M/25, WT/COMTD/M/26 [and
WT/COMTD/M/27 ].  The CTD also held several informal consultations.  The 23
rd Session was
chaired, and the 24th Session opened, by Mr. Iftekhar Ah med Chowdhury (Bangladesh).  At the
24th Session, Mrs. Absa Claude Diallo (Senegal) was elected Chairperson of the CTD, and chaired that
and the subsequent sessions.
3. The Sub-Committee held four formal meetings, on 25 November 1998, 1 March 1999,
12 July 1999 and 28 September 1999.  The Minutes of these meetings are contained in documents
WT/COMTD/LDC/M/14, WT/COMTD/L DC/M/15, WT/COMTD/LDC/M/16  and
WT/COMTD/LDC/M/17.  An informal "brainstorming" session was held on 28 July 1999 to discuss
issues related to the Integrated Framework.  The SCLDC was chaired by Mr. Hans-Henrik Bruun(Denmark) until June 1999 and subsequently by Mr. Benedikt Jónsson (Iceland).
4. At its 24
th and 25th Sessions, the CTD agreed to grant observer status to 11 intergovernmental
organizations, on an ad hoc , meeting by meeting basis, pending a final decision of the
General Council on observer status for intergovernmental organizations.  The organizations in
question are:  the Arab Maghreb Union; the Economic Community of West African States; theEconomic Cooperation Organization;  the Inter-Arab Investment Guarantee Corporation;  the Islamic
Development Bank;  the Organization of African Un ity; the Organization of the Islamic Conference;
the South Centre; the South Pacific Forum; the West African Economic and Monetary Union; and the
World Intellectual Property Organization.  A full list of intergovernmental organizations with
observer status in the Committee is contained in document WT/COMTD/W/22/Rev.3.WT/COMTD/W/63
Page 2
I. WORK OF THE COMMITTEE ON TRADE AND DEVELOPMENT
5. The principal themes addressed by the Committee since its previous report were as follows:
(a) Trade and Development: High Level Symposium on Trade and Development;
(b) Review of the application of special provisions in the Multilateral Trading
Agreements and related Ministerial Decisions in favour of developing country
Members, in particular least-developed countries;
(c) Concerns and problems of small economies;
(d) Development dimension of trade facilitation;
(e) Development dimension of electronic commerce;
(f) Technical assistance and training;
(g) Possible input by the Committee into the 3rd WTO Ministerial Conference;  and
(h) Market access:  preferential tariff treatment for least-developed countries.
(a) Trade and Development:  High Level Symposium on Trade and Development
6. The need to clarify the positive relationship between trade and development was repeatedly
emphasized by Members at formal and informal CTD meetings.  Among issues raised were
implementation of the WTO Agreements, in particular provisions relating to differential and more
favourable treatment of developing countries, technical assistance, and the timing and sequencing of
trade liberalization.
7. As part of the preparations for the 3rd Ministerial Conference of the WTO, the General
Council on 14 October 1998 accepted a proposal by Egypt for a High Level Meeting on Trade and
Development.  Following consultations, a High Level Symposium (HLS) on Trade and Development
took place on 17 and 18 March 1999, back to back with a similar HLS on Trade and Environment.
The purpose of the HLS was to hold an informal, hi gh-level dialogue on trade and development which
would provide a forum for an exchange of view s on trade and development issues, address the
development dimension of international trade issues and trade-related concerns of developing
countries, including LDCs, and highlight the role of the WTO in promoting developmental objectives
set out in the Preamble to the Marrakesh Agreement. A Secretariat background document was
prepared for the HLS,1 and a compilation of the main points raised was made available to WTO
Members.  A publication by the WTO Secretariat on the two High Level Symposia is in preparation.
8. At the HLS, it was stressed that development was one of the central goals of the original
architects of the GATT.  Although trade was an important and necessary condition for growth anddevelopment, it was not a sufficient condition.  Consequently, there was a need for coherence
amongst institutions and policies in the areas of trade, finance and development. Participants warned
against the dangers posed by protectionism to the gains of trade and the stability of the multilateral
trading system.  Participants highlighted the importance of integrating the developing countries, in
particular the least-developed countries, into the multilateral trading system.  The proposal by the
                                                     
1 High Level Symposium on Trade and Development, Geneva, 17-18 March 1999.  Background
document.  (Job No.1232)WT/COMTD/W/63
Page 3
Director-General of the WTO for bound, duty-free market access for imports from LDCs received
wide support.  The importance of enhanced technical assistance and capacity-building for developing
countries was underscored.
(b) Review of the Application of Special Provisions in the Multilateral Trading Agreements and
related Ministerial Decisions in Favour of Developing Country Members, in particular
Least-Developed Countries
9. The CTD continued its review, initiated in 1996, of the application of special provisions for
differential and more favourable treatment of developing countries, in particular the least-developed
countries.  At its 22nd Session,  the CTD requested the Secretariat to undertake a review of the
implementation of "special and differential treatment" provisions by compiling information, in a
formal Secretariat Note, on the difficulties, if any, that Members may have experienced in theimplementation of these provisions.  It was agreed that this review would be conducted on the basis of
a questionnaire to be circulated by the Secretariat and completed by Members, and on the basis of
information contained in documentation available in the Secretariat.
10. At the 25
th Session, notwithstanding the low rate of returns by Members to the questionnaire
circulated by the Secretariat, it was agreed, following a proposal by the Secretariat, that the Secretariatwould circulate information that it had compiled, thus far, as an informal document.  Responses
received both from the informal Note and the questionnaire would be used in revising the Informal
Note for final circulation as a working document.  The final document was circulated in
October 1999.
2
11. At the 25th Session of the CTD, one Member proposed convening a Seminar to assess the
impact of special and differential treatment provisions.
(c) Concerns and Problems of Small Economies
12. During its 23rd, 24th and 26th Sessions, the CTD continued its discussion, begun at its
22nd Session, of the concerns and problems of small economies, on the basis of a paper circulated by
five members (Barbados, Jamaica, Mauritius, Sri Lanka and Trinidad and Tobago).3  S e v e r a l
Members also circulated papers4 or made extensive statements describing their national experiences as
small economies.  Following a proposal from the Chair, representatives from the Commonwealth
Secretariat and the World Bank made a joint presentation to the CTD, at its 26th Session in June 1999,
of the draft recommendations and conclusions of the World Bank/Commonwealth Advisory Task
Force on Small States, on which the WTO Secretariat is represented.
(d) Development Dimension of Trade Facilitation
13. The CTD's work on trade facilitation was initiated by an invitation from the Chairman of the
Council for Trade in Goods (CTG) who invited the Chairpersons of all relevant subsidiary bodies of
the CTG, as well as the Chairpersons of the Counc il for Trade in Services, the Council for TRIPS and
the CTD, to contribute to the CTG's work programme on trade facilitation by addressing aspectsrelated to the work undertaken under their mandates.  At its 23
rd Session in December 1998, the CTD
requested the Secretariat to produce a draft document for its contribution.  A note entitled
"Development Aspects of Trade Facilitation"5 aimed at meeting that request.  The issue of trade
facilitation was then discussed at a number of formal and informal meetings of the CTD.  The
                                                     
2 WT/COMTD/W/64
3 WT/COMTD/W/50 and Corr.1
4 WT/COMTD/W/54-56
5 WT/COMTD/W/57 and Corr.1WT/COMTD/W/63
Page 4
Committee's final contribution was forwarded to th e Chairman of the Council on Trade in Goods by
letter from the Chair in April 1999.
(e) Development Dimension of Electronic Commerce
14. The CTD continued its discussion on electronic commerce, which had been initiated by a
Working Paper submitted by Egypt.6  The discussions in the CTD were part of a comprehensive Work
Programme on Electronic Commerce adopted by the General Council on 25 September 1998.7
Implementation of the Work Programme was assigned to four WTO bodies,  namely. the Council forTrade in Services; the Council for Trade in Goods; the Council for TRIPS; and the CTD.
15. At the request of the CTD, the WTO Secretariat prepared a background note on Development
Implications of Electronic Commerce.
8  The issue of electronic commerce was discussed extensively
at informal consultations on 23 November 1998, and at the 23rd Session of the CTD in December
1998.  Members touched upon a large range of issues relating to electronic commerce and
development including potential benefits from electronic commerce for developing countries and
potential problems developing countries might face with respect to electronic commerce.
16. A one-day seminar on Electronic Commerce and Development was held on
19 February 1999.9  Representatives of developing and developed country authorities and the private
sector made presentations and held informal exchanges of views.  The discussions on developmental
aspects of electronic commerce in the CTD continued at its 24th 25th  and 26th Sessions.  In a
communication from the Chairman of the CTD, dated 7 April 1999, and addressed to the Chairman of
the General Council, the CTD transmitted its interim report on progress made in the implementation
of the WTO Work Programme on Electronic Commerce.10  At its 26th Session, the CTD adopted its
final contribution to the Work Programme.11
(f) Technical Assistance and Training
17. At the 25th Session, the Secretariat drew attention to serious budgetary difficulties relating to
the delivery of WTO technical assistance.  These difficulties stemmed from the expanded workprogramme of the WTO, in relation to developing and transition economies, including issues arising
from implementation of the WTO Agreements.  As much as 90 per cent of WTO technical assistance
was expected to be covered through extra-budgetary resources.  Uncertainty of funding presented
enormous difficulties for efficient and predictable planning.
18. In response to the Secretariat presentation, Members requested the Chairperson of the CTD to
write to the Chairperson of the Committee on Budget, Finance and Administration, informing the
Budget Committee of the situation and requesting the Budget Committee to revisit the funding ofWTO technical cooperation on an urgent basis.  The Chairperson of the CTD and the Secretariat made
a presentation to an informal joint meeting of the Budget Committee and CTD on September 1999.
[The issue was further discussed at the 26th Session of the CTD on the basis of a Note by the
Secretariat concerning technical assistance activities and their financing.
12]
19. There was a strong consensus amongst Members on the necessity for evaluation of technical
assistance activities, on the basis of clear, identifiable criteria.  At the 24th Session, the CTD reached
                                                     
6 WT/COMTD/W/38
7 WT/L/274
8 WT/COMTD/W/51
9 WT/COMTD/18
10 WT/GC/23
11 WT/COMTD/19
12 Joint document WT/BFA/42 and WT/COMTD/20WT/COMTD/W/63
Page 5
an understanding that the Secretariat should proceed, on its own responsibility, with an evaluation of
technical assistance, based on two questionnaires  attached to a Secretariat Background Note on
"Evaluating WTO's Technical Cooperation".13  An initial evaluation by the Secretariat, based on the
responses to the two questionnaires, is to be  communicated to the CTD in the spring of 2000.
[(g) Possible Input by the Committee into the 3rd WTO Ministerial Conference
20. The possible input by the CTD into the Seattle Ministerial Conference was identified by the
Chairperson, on her election, as deserving of priority attention by the Committee. Members held an
initial exchange of views on this item at informal consultations on 5 May 1999.  The issue was further
considered by Members at the 25th Session of the CTD14, where it was agreed that it would be further
discussed at the 26th Session.
21. [At the 26th Session, the CTD/Members ---------------,  etc.  This paragraph/section to be
updated after the 26th Session of the CTD].]
(h) Market Access:  Preferential Tariff Treatment for Least-Developed Countries
22. At the High-Level Meeting on Integrated Initiatives for Least-Developed Countries' Trade
Development, 27-28 October 1997, WTO Members, including developing country Members, had
announced autonomous market access offers in favour of least-developed countries (LDCs).
Following these announcements of autonomous market access offers, several developing country
Members considered it necessary to establish a clear legal basis for preferential market access by
developing countries in favour of least-developed countries.  To this end, the Secretariat, on 23 July
1998, initiated informal consultations within the framework of the CTD for the purpose of examiningoptions for an appropriate legal framework on the basis of which developing countries could grant
preferential market access to LDCs.  These consultations resulted in a waiver on "Preferential Tariff
Treatment For Least-Developed Countries", which was agreed in the CTD at its 24ths Session and
adopted by the General Council on 15 June 1999.
15
II. WORK OF THE SUB-COMMITTEE ON LEAST-DEVELOPED COUNTRIES
(SCLDC)
23. The principal themes addressed by the Sub-Committee since its previous report were:
(a) Follow-up to the 1997 High-Level Meeting on Integrated Initiatives for Least-
Developed Countries' Trade Development;
(b) Market access for products originating in least-developed countries;  and
(c) Difficulties faced by least-developed countries in implementing WTO Agreements.
                                                     
13 WT/COMTD/W/58
14 Job No. 3578 – "CTD:  Possible Input to the Third Ministerial Conference" Informal Note by the
Secretariat.
15WT/L/304WT/COMTD/W/63
Page 6
(a) Follow-up to the 1997 High-Level Meeting on Integrated Initiatives for Least-Developed
Countries' Trade Development
24. Work in the Sub-Committee on the follow-up to the 1997 High-Level Meeting focussed on
monitoring the implementation of the Integrated Framework for trade-related technical assistance to
LDCs.  During the period under review, presentations were made before the Sub-Committee by
representatives of UNCTAD, IMF and UNDP.  With those presentations, the Sub-Committee
achieved the goal of having invited all the other five core Agencies of the Integrated Framework and
the Administrative Unit.  In addition, the Sub-Committee invited representatives of the WTO
Secretariat to provide regular up-dates on WTO's activities in this respect.  These progress reports are
noted in the Minutes of the Sub-Committee.  Particular attention has been given to difficultiesencountered in implementing the Integrated Framework in individual LDCs and ways to move
forward have been sought.  A well attended informal brainstorming session was arranged on
28 July 1999 at which participants supported th e Integrated Framework and put forward numerous
proposals for its strengthening and improvement.  It should be noted that four "round-table" meetings
under the Integrated Framework are to be held before December 1999.  The Sub-Committee will meetagain on 19 November 1999 to review progress in the meetings held.
(b) Market Access for Products Originating in Least-Developed Countries
25. To assist the Sub-Committee's discussions on market access for products originating in LDCs,
the Secretariat prepared a background paper entitled "Market Access for Exports of Goods andServices of the Least-Developed Countries: Barriers and Constraints"
16.  The lively discussions in the
Sub-Committee concentrated on the relationship between the supply-side constraints faced by the
least-developed countries and their possibility of making use of market access opportunities.  The
discussions resulted in the Sub-Committee forwarding to the General Council, through the CTD, the
document prepared by the Secretariat together with a list of points raised.17
26. The Sub-Committee also requested the Secretariat to compile existing information on market
access barriers faced by the exports of the least-developed countries.  At the 17th meeting of the
Sub-Committee in September 1999, the Secretariat distributed to the delegations concerned (the LDCs
and the major markets for their products), with a request for verification by 1 November 1999, draft
tables showing information on trade flows, tariffs and non-tariff measures applicable to imports into
23 main markets from individual LDCs.  The Sub- Committee requested the Secretariat to produce a
summary overview of the voluminous product by product data, for final publication.
(c) Difficulties Faced by Least-Developed Countries in Implementing WTO Agreements
27. With respect to difficulties faced by least-developed countries in implementing WTO
Agreements, the Secretariat, upon request by the Sub-Committee, prepared a background document
entitled "Implementation of WTO Agreements: Survey of the Difficulties Faced by Least-DevelopedCountries and the Current Response".
18  The discussions of this item led the Sub-Committee to
forward to the General Council, through the CTD, the document prepared by the Secretariat
accompanied by a list of points raised during Sub-Committee discussions.
__________
                                                     
16 WT/COMTD/LDC/W/11/Rev.1
17 Job No. 6915
18 WT/COMTD/LDC/W/10.