RESTRICTEDWORLD TRADE
ORGANIZATIONWT/MIN(03)/SR/4
23 December 2003
(03-6742)
MINISTERIAL CONFERENCE
Fifth Session
Cancún, 10 - 14 September 2003
SUMMARY RECORD OF THE FOURTH MEETING
Held at the Cancún Convention Centre, Cancún, Mexico
on Thursday, 11 September 2003, at 2.30 p.m.
Chairpersons: H.E. Mr. Youssef Boutros-Ghali (Egypt)
(for Agenda item 1)
H.E. Dr. Luis Ernesto Derbez (Mexico)
(for Agenda item 3)
Subjects: 1. Overview of Activities of the WTO (Agenda item 1)
2. Action by Ministers (Agenda item 3)
(a) Accession of Cambodia
(b) Accession of Nepal
1. Overview of Activities of the WTO (Agenda item 1)
The following statements were made:
Greece H.E. Dr. Georgios Zanias
Secretary General,
Ministry of National Economy and
FinanceWT/MIN(03)/ST/40
Israel H.E. Mr. Ehud Olmert
Vice Prime Minister and Minister of
Industry, Trade, Labour and
CommunicationsWT/MIN(03)/ST/45
The Separate Customs
Territory of Taiwan,
Penghu, Kinmen and
MatsuH.E. Mr. Lin Yi-fu
Minister of Economic AffairsWT/MIN(03)/ST/41
South Africa The Honourable Alexander Erwin
Minister of Trade and IndustryWT/MIN(03)/ST/43
Panama H.E. Mr. Joaquín E. Jácome Diez
Minister of Commerce and IndustryWT/MIN(03)/ST/44
Netherlands H.E. Mr. Laurens Jan Brinkhorst
Minister of Economic AffairsWT/MIN(03)/ST/46WT/MIN(03)/SR/4
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Chile H.E. Mrs. María Soledad Alvear
Minister for Foreign AffairsWT/MIN(03)/ST/47
Argentina H.E. Mr. Rafael A. Bielsa
Minister for Foreign Affairs, InternationalTrade and Worship1
Venezuela H.E. Mr. Ramón Rosales Linares
Minister of Production and TradeWT/MIN(03)/ST/48
Turkey H.E. Mr. Kür şat Tüzmen
State Minister in Charge of ForeignTrade and CustomsWT/MIN(03)/ST/49
Nigeria The Honourable Adamu Danjuma Idris
Waziri
Minister of CommerceWT/MIN(03)/ST/50
Albania H.E. Mr. Ilir Ciko
Deputy Minister of EconomyWT/MIN(03)/ST/51
Madagascar H.E. Mr. Mejamirado Razafimihary
Minister of Industry, Trade and
Development of the Private SectorWT/MIN(03)/ST/52
Gabon H.E. Mr. Paul Biyoghe Mba
Minister for Commerce and IndustrialDevelopment, in Charge of NEPADWT/MIN(03)/ST/53
Paraguay H.E. Mrs. Leila Rachid de Cowles
Minister for Foreign RelationsWT/MIN(03)/ST/54
Dominican Republic H.E. Mr. Orlando Jorge Mera
Minister for TelecommunicationsWT/MIN(03)/ST/55
Mauritania H.E. Mr. Isselmou Ould Abdel Kader
Minister for Commerce, Handicrafts
and TourismWT/MIN(03)/ST/56
Romania H.E. Mr. Eugen Dijmáresçu
Minister of CommerceWT/MIN(03)/ST/57
Honduras H.E. Mr. Norman García
Secretary of StateDepartment of Industry and CommerceWT/MIN(03)/ST/58
Mongolia H.E. Mr. Chimiddorj Ganzorig
Minister for Industry and TradeWT/MIN(03)/ST/59
Colombia H.E. Mr. Jorge Humberto Botero
Minister of Commerce, Industry and
TourismWT/MIN(03)/ST/60
                                                     
1To be circulated.WT/MIN(03)/SR/4
Page 3
FAO
(Observer)Mr. Hartwig de Haen
Assistant Director-General, Economic
and Social DepartmentWT/MIN(03)/ST/61 and
Corr.1
2. Action by Ministers (Agenda item 3)
(a) Accession of Cambodia
(b) Accession of Nepal
The Chairman, addressing the accession of Cambodia, recalled that in December 1994, the
Preparatory Committee for the World Trade Organization had established a Working Party to examine
Cambodia's request for Accession to the WTO Agreement.  The Report of the Working Party on the
Accession of Cambodia was now before the Ministerial  Conference in documents
WT/ACC/KHM/21 and Add.1 and 2.
Mr. Yerxa, Deputy Director-Gener al, speaking on behalf of Mr. Meloni (Italy), Chairman of
the Working Party on the Accession of Cambodia, said that Cambodia had requested accession to the
World Trade Organization in October 1994, and that although the Working Party had been established
in December that same year, the first meeting had not been held until mid-2001.  With the Geneva
process formally engaged, the process had gained momentum.  In accordance with the guidelines and
procedures established under the WTO, the Working Party had then moved rapidly to hold several
meetings during the period 2001-2003.  The considerable amount of work, goodwill and constructive
spirit all round had made it possible to conclude successfully the accession process of Cambodia in arelatively short period of time.  The accession process of Cambodia had been among the fastest in
WTO history and, most importantly, Cambodia had been the first least-developed country to complete
its accession to the WTO under Article XII procedures of the Marrakesh Agreement.  This was a
particularly significant achievement as it reinforced the role of the WTO as a truly global
Organization.  He wished to pay personal tribute to the authorities of Cambodia and to Minister ChamPrasidh and his team of devoted and committed negotiators, who had taken on all the challenges of
the accession process and had met them boldly, rapidly and constructively, responding promptly to
the numerous requests made by Members.  The Government of Cambodia had done admirable work
in putting in place WTO-consistent legislation, and was committed to continuing its legal reform
programme.  Similarly, praise and deep apprecia tion went to the WTO membership, who had never
failed to show flexibility and goodwill to conclude  successfully and rapidly the first accession process
of an LDC under Article XII procedures.  He congratulated all concerned on bringing this very
important accession process to such a satisfactory conclusion.
The results of the accession negotiations constituting the terms of entry of Cambodia into the
WTO were contained in the following documents: the Report of the Working Party
(WT/ACC/KHM/21), the Schedule of Concessions and Commitments in Goods(WT/ACC/KHM/21/Add.1), and the Schedule of Specific Commitments in Services
(WT/ACC/KHM/21/Add.2).  This accession package had been adopted by the Working Party at its
meeting on 22 July 2003 on an ad referendum  basis.  By this action, the Working Party had completed
its mandate and had forwarded the documentation to the Ministerial Conference for decision as
appropriate.  The Appendix to the Report reproduced the Draft Decision for the MinisterialConference and the Draft Protocol of Accession  of the Kingdom of Cambodia to the Agreement
Establishing the World Trade Organization.  In accordance with usual WTO practice, the Protocol of
Accession incorporated the specific commitments undertaken by Cambodia in relation to matters
negotiated in the Working Party.  Once again, on behalf of the Chairman of the Working Party, he
wished to pay tribute to the continuous efforts, g oodwill and spirit of compromise shown all round to
overcome the difficulties encountered in this accession process.  In the crucial final stages, the
traditional spirit of pragmatism of the WTO had prevailed and had allowed the work to be concluded.WT/MIN(03)/SR/4
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The results achieved spoke for themselves, and in this  context he wished to add that the terms of this
accession did not preclude access of Cambodia and LDCs to the benefits under the Doha Declaration
on the TRIPS Agreement and Public Health.  On behalf of the Chairman of the Working Party, he
recommended the Report of the Working Party, as well as the Draft Decision and Protocol of
Accession, for approval by the Ministerial Conference.  The fact that Ministers were today ready toadmit Cambodia into this organization was a great testimony to the perseverance and tireless efforts of
Mr. Meloni, and he wished to express appr eciation to him for his dedicated efforts.
The Chairman, on behalf of the Ministerial Conference, thanked Mr. Meloni for having
served as Chairman of the Working Party on the Accession of Cambodia.
The Ministerial Conference then approved the te xt of the Protocol of Accession of Cambodia
(WT/MIN(03)/18) and, in accordance with the Decision-Making Procedures under Articles IX and
XII of the WTO Agreement agreed in Novemb er 1995 (WT/L/93), adopted the Decision on the
Accession of Cambodia (WT/MIN(03)/18).  The Ministerial Conference then adopted the Report of
the Working Party on the Accession of Cambodia in documents WT/ACC/KHM/21 and Add.1 and 2.
The Chairman, addressing next the accession of Nepal, recalled that in June 1989, the GATT
1947 Council had established a Working Party to examine the request for accession of Nepal to the
General Agreement on Tariffs and Trade.  Having regard to the Decision adopted by the General
Council on 31 January 1995, the GATT 1947 Accession Working Party had been transformed into a
WTO Accession Working Party.  The Report of the Working Party on the Accession of Nepal wasnow before the Ministerial Conference in documents WT/ACC/NPL/16 and Add.1 and 2.
Mr. Girard (Switzerland), Chairman of the Working Party on the Accession of Nepal,
introducing the report, said that following Cambodia, Nepal was the second least-developed country
to successfully conclude its process of accession to the WTO Agreement.  Nepal's accessionrepresented considerable years of work and co-operation between Nepal and members of the Working
Party, and enabled Nepal to join the WTO as an equal and active Member.  Nepal had undertaken
deep and substantial commitments, both on the multilateral side – few, if any, transition periods had
ultimately been sought by Nepal – and on market access.  The negotiations had resulted in Nepal
accepting an average tariff binding of 42 per cent in agricultural products and around 24 per cent in
industrial goods.  Nepal had agreed to broad commitments in 11 services sectors, revealing its clear
belief in the benefits of liberalization as an engine for future growth and prosperity.  Nepal'scommitment to the objectives and purposes of the multilateral trading system should and would serve
as a welcome encouragement to Ministers as they carried out their work in Cancún.  He paid tribute to
the previous Chairmen of the Working Party, Mr. Farrell (New Zealand) and Mr. Fortune (New
Zealand) and expressed his appreciation and thanks for their efforts through the years.  He then
recommended that the package of Nepal's accession documents be adopted by the MinisterialConference.
The Chairman, on behalf of the Ministerial Conference, thanked Mr. Girard for having served
as Chairman of the Working Party on the Accession of Nepal.
The Ministerial Conference then approved the te xt of the Protocol of Accession of Nepal
(WT/MIN(03)/19) and, in accordance with the Decision-Making Procedures under Articles IX and
XII of the WTO Agreement agreed in November 1995 (WT/L/93), adopted the Decision on the
Accession of Nepal (WT/MIN(03)/19).  The Ministerial Conference then adopted the Report of the
Working Party in documents WT/ACC/NPL/16 and Add.1 and 2.
Mr. Cham Prasidh, Minister of Commerce of Cambodia, said that on behalf of the
Government and the people of Cambodia, he wished  to express deep gratitude to all WTO Members
for their support and acceptance of the accession of the Kingdom of Cambodia to the WTO
Agreement.  Cambodia was the first least-developed country to join the WTO since the latter hadWT/MIN(03)/SR/4
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come into being in 1995.  This historical event would be hailed by developed countries as proof that
the WTO could deliver for one of the world's poorest countries.  He wished to thank all those who had
helped make this accession a reality – Mr. Meloni, Chairman of the Working Party on Accession of
Cambodia, whose excellent stewardship had led to a very successful conclusion of the negotiations,
the Director-General, and the Accession Division of the WTO Secretariat.  He wished to recognizeMr. Ricupero, UNCTAD Secretary-General, and his de dicated team of experts.  He also wished to
recognize the ASEAN countries, the European Communities and its member States, as well as
Mr. Lamy, EC Trade Commissioner, the People's Republic of China and other WTO Members for
having restrained themselves in negotiating bilateral market access with Cambodia.  He wished to
recognize the Ambassadors to Geneva from Bangladesh and Sweden for their effective lobbying
activities for LDCs, the United States and USTR Robert Zoellick, Japan, Korea, Australia, Canada,
India, Chinese Taipei and Panama, for their constructive support which had finally opened the way toCambodia's accession.  He also wished to pay tribute to former Director-General Mr. Mike Moore, to
Mr. Denis Belisle, ITC Executive Director and to  Ms Esperanza Duran, AITIC Director.  He also
wished to thank New Zealand, UNESCAP and UNDP  for their technical assistance in training
Cambodian trade negotiators.  Subject to ratification by its Parliament, Cambodia's membership was
now just a matter of days.  This accession was an important milestone for Cambodia in its endeavourto integrate its economy into the world trading system.  Many Members might wonder how Cambodia
–a war-torn country which a few years earlier ranked 45th out of 49 LDCs – had been able to meet all
the requirements and conditions of Members and to join the WTO today.  This had been the result of a
lengthy, costly, tiring and painful process of negoti ations.  It was also the result of the combination of
seven positive domestic and external factors occurring at the most opportune time in Cambodia'shistory.
Regarding domestic factors, the first was national reconciliation, peace and political stability.
Cambodia had come a long way.  For about three decades, Cambodia had been a country torn apart by
civil war.  From 1975 to 1979, Pol Pot and his Khmer Rouge followers had conducted a genocidepolicy that had led to the loss of one-third of the Cambodian population.  For the sake of national
reconciliation, Cambodia had paid a very heavy price by accepting the participation of armed political
opponents in the 1993 general elections organized and supervised by the UN and its UN Transitional
Authority in Cambodia (UNTAC).  This had resulted in the setting up of a multiparty liberal and
democratic system in Cambodia with a coalition go vernment made up of two political factions and
one opposition party in Parliament, and the restorati on of a constitutional monarchy with His Majesty
Samdech Preah Norodom Sihanouk as the King of Cambodia.  For the sake of peace, Cambodia had
paid another very heavy price by accepting to grant general amnesty to the Khmer Rouge forces in
exchange for the dismantling of their political an d military organization.  Applying this "win-win"
solution, Cambodia had had peace in 1998 for the first time in its history.  With peace in Cambodia,
development was possible.  With peace and political stability in Cambodia, sustainable development
was possible.  Second was the liberal market economy and macro-economic stability.  Sinceeverything had had to be rebuilt from scratch, a liberal market economy had been put into place, as
there had been no big vested economic interests in Cambodia.  This situation had allowed Cambodia
to undertake all the necessary reforms.  With the strong determination of the Government and the
strong leadership of Prime Minister Samdech Hun Sen, many administrative, financial and legal
reforms had been undertaken, leading to steady economic growth of an average of 6 per cent, anannual inflation rate of less than 5 per cent, and a stable commodity price index during the past 5
years.  Third, the setting up of a powerful WTO Th ink Tank team regrouping the most knowledgeable
and most senior officials in all Ministries as well as members of the business community to negotiate
Cambodia's accession to the WTO, had permitted better coordination and better understanding on the
reforms to be undertaken and the pace of the reforms to be achieved.  Cambodia's timely and wellcoordinated replies to WTO Members' questions had accelerated the pace of multilateral and bilateral
negotiations.
There were four positive external factors:  (i) the recommendations of the Third UN
Conference on the LDCs in Brussels (May 2001);  (ii) the Doha Ministerial Declaration (NovemberWT/MIN(03)/SR/4
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2001);  (iii) the selection of Cambodia as one of the 3 pilot countries for the implementation of the
Integrated Framework on Trade-Related Technical Assistance to the least-developed countries (May
2001); and (iv) the General Council's Decision of 10 December 2002 on Accession of Least-
Developed Countries (WT/L/508).  These four actions in favour of the LDCs had been very important
for Cambodia's accession.  By virtually "riding these waves", Cambodia had been able to acceleratethe pace of negotiations and the frequency of Working Party meetings.  The WTO procedures had
been streamlined in an unprecedented and unconventional manner, upon strong urging from the
Cambodian side.  Regarding the substance of the negotiations, there had been several issues on which
Cambodia's commitments and concessions had been used by Members as a precedent to influence
their current negotiations in the Doha Development Round.  It had been pledged in Doha and
elsewhere that Members should exercise restraint in seeking concessions and commitments on trade in
goods and services from acceding LDCs, taking into account the levels of concessions andcommitments undertaken by existing LDC Members.  Some Members had simply forgotten that
pledge when they had negotiated with Cambodia.  In some instances, Cambodia's LDC status had
simply been ignored under the sacrosanct principle of "no one size fits all", and Cambodia had had to
pay a dear price because of its relative economic openness and its strong economic performance.  He
would not elaborate on that price, but only wished to ask all Ministers at Cancún to find the time andthe courage to read the document recently publish ed by OXFAM International entitled: "Cambodia's
Accession to the WTO – How the law of the jungle is applied to one of the world's poorest countries."
While Cambodia did not share all the viewpoints of OXFAM International, that document reflected to
some extent quite genuinely the results of the accession negotiations.  It was a document worth
reading, because it provided a good idea of what privileges or what special and differential treatmentCambodia, as an LDC, was supposed to enjoy, and what in reality it had been made to accept.
Nevertheless, Cambodia had managed to secure a package of commitments and concessions it felt
was the most affordable and possible deal for its accession, bearing in mind Cambodia's scant political
and economic weight and its current reliance on external assistance from the major donor countries,
who were also WTO Members.  Cambodia believed that the package of concessions andcommitments that it had had to accept went far beyond what was commensurate with the level of
development of an LDC.  Nonetheless, Cambodia accepted the challenges, not only because of the
benefits of joining the world trading system, but also because of the risks and perils of remaining
outside the WTO system and being marginalized and subject to unilateral unfair treatment from more
powerful trading partners.  In sum, for the sake of national reconciliation and peace in the country,
Cambodia had paid heavy prices, and for the sake of integration in the world economy, Cambodia had
paid another heavy price to join the WTO.
In times of harsh and fierce global competition, the survival of Cambodia depended on its
ability to seize the right opportunities and at the right time.  Its accession to the WTO was such a case.
Therefore, despite the high price Cambodia had accepted to pay for its entry into the WTO, it was not
the time to lament, but to make the best of the situation, while bearing in mind the need to comply
with the already agreed rules.  The commitments and concessions Cambodia had accepted were not
beyond its reach.  With the strong determination and commitment of its Prime Minister, Samdech Hun
Sen, and of the members of its Government, and wi th the strong dedication and hard work of the
Cambodian WTO Think Tank which he had had the honour to lead, Cambodia could and would
implement what it had pledged and committed to do.  This would be an uphill task.  Cambodiacounted on the support and technical assistance of all Members to make its accession a worthwhile
endeavour.  Cambodia would strive to prove to Memb ers that it would be a valued Member of the
WTO.  On this auspicious occasion, on behalf of the Royal Government of Cambodia and the
Cambodian people, he wished all the best of luck and thanked all for their guidance, patience and
sympathy.  He also wished to thank the Government and people of Mexico for their warm hospitality.
Mr. Hari Bahadur Basnet, Minister for Industr y, Commerce and Supplies of Nepal, said that
he wished to express his sincere thanks to the people and the Government of Mexico for the kind
hospitality extended to his delegation and the excell ent arrangements made for the Conference.  Nepal
was finally joining the WTO.  He could not over-emphasize what this meant to his country.  It was aWT/MIN(03)/SR/4
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watershed event for Nepal and its people.  On this important occasion, on behalf of His Majesty's
Government of Nepal and the Nepalese people, he wished to extend his sincere gratitude to all
Members for the decision they had just taken to bring Nepal into the fold as the 148th Member of the
WTO.  After lengthy and comprehensive negotiations, Nepal, a least-developed land-locked country
tucked in the lap of the high Himalayas, was set to join the mainstream of the international economic
regime.  Nepal's people had pinned high hopes on this membership and the follow-up activities.  It
was Nepal's conviction that its accession would not only enhance its effectiveness and efficiency in
trading, by adapting itself to the many trade-relate d rules and regulations, but would also result in the
expansion of trade, leading to a higher level of growth and enhancement of the quality of life of its
people.  Nepal believed that the WTO system would help countries like Nepal to get out of the vicious
circle of poverty and lead them on to the virtuous cy cle of prosperity by being responsive to the needs
and aspirations of the underprivileged and marginalized people of the least-developed countries.  Asthe world was increasingly globalized and inter-connected, there was a mutuality of interest in doing
that, and it was only through the mutuality of efforts that those objectives could be attained.
He also wished to thank those trading partners with whom Nepal had negotiated intensively to
bring the process to a successful conclusion.  Without their best of efforts and understanding, it would
not have been possible for Nepal to complete the negotiations.  He especially appreciated their hard
work and indomitable spirit in the final stage of negotiations.  He also wished to put on record Nepal's
profound appreciation for the purposeful and resolute efforts of the Chairman of the Working Party in
successfully steering the accession process.  Similarly, he wished to register Nepal's heartfelt thanks
to the Director-General for his active and supportive involvement in the process, and to his efficientand untiring Accessions Division for completing the necessary process of Nepal's accession.  He had
not imagined that the accession process would involve so much coordination and hard work.  His
sincere thanks were also addressed to the UNDP and other relevant agencies for their valuable
assistance.  He also wished to thank UNCTAD, especially for the useful and ready technical advice it
had provided Nepal throughout the entire process.  Nepal was most grateful to its fellow LDCs andmany other friendly countries who had always expressed an unqualified support for its  accession.  He
also wished to thank the WTO Sub-Committee on LDCs for coming out with very positive guidelines
for the acceding LDCs.  He was confident that th e goodwill and understanding which Nepal had had
the privilege to tap during the negotiation process would continue to spring up in the days ahead, as it
became involved in the WTO's activities.
Nepal had pursued liberal economic policies for quite some time, and this process had been
further intensified since the 1980s.  The Government had played the role of facilitator and had tried to
create a favourable environment for unleashing the innate creativity and entrepreneurship of Nepal's
people.  While striving to create the right policy framework, the Government had concentrated its
activities on building social and economic infrastructure and on ensuring an accelerated rate of
economic growth to be shared by the widest section of the community.  Promotion of pro-poor andsustainable growth, and the reduction of poverty, were therefore fundamental priorities of the
Government.  With a population of about 23 million, Nepal's GDP was roughly US$ 5 billion.  The
average annual growth rate in the last decade had been around 5 per cent.  However, about 38 per cent
of the people still lived below the poverty line.  Over the years, there had been consistent
improvement in socio-economic fields such as the infant mortality rate, literacy rate and access tohealth facilities, as well as in building infrastructure.  Still, Nepal had a long way to go.  An enhanced
level of economic growth, generated in large measure by consolidation of economic fundamentals and
the expansion of international trade, had played an important role in diffusion of the benefits of
growth to the wider community.  In all these devel opments, international trade had played a key role.
It was not only a source of foreign exchange and a principal instrument for the generation of incomeand employment, but also a prime mover of entrepreneurship, an important means of transfer of
technology and a source of creation of much-needed capital in Nepal.  The sustained ability to trade,
the widening of the economic base for foreign trade and the effective backward linkages had been a
great challenge.  Foreign trade also occupied an important place in Nepal's economic activities
because of its relative size, as it represented about 30 per cent of its GDP.  Over the years, Nepal'sWT/MIN(03)/SR/4
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foreign trade had grown rapidly, but the growth  had been rather non-linear and unsteady.  The
volatility of the international market, the overdependence of Nepal on products like garments and
carpets, the infancy status of its business sector, the lack of economies of scale and the constantly
shifting global trends had heavily curtailed Nepal's comparative advantage in international trade.  In
addition, Nepal was a land-locked country, which placed a heavy burden on its competitiveness.Therefore, the enhancement of its trading capacity , an enabling international environment and the
effective and pro-active market access mechanisms for LDC products would contribute to enhancing
its trading potential, and thus allow Nepal to  meaningfully integrate into the international economic
and trading system.  It was in this spirit that Nepal had committed itself to undertaking various
obligations in accordance with WTO principles and provisions.  Nepal believed that this would lead to
the enhancement of the efficiency of its entrepreneurs and also make its trading activities competitive,
by promoting a better business environment.  While Nepal would do its best to fulfil thesecommitments, it expected to receive an effective and enhanced level of support and cooperation from
its developed partners.
The global trading system should be made more equitable, universal and sustainable in order
for all to reap the benefits of liberalization and globalization.  This would also contribute to promotingpeace and prosperity around the world.  Inclusiveness of all in prosperity was key to lasting peace,
success and progress in the 21st century.  He wished to stress that Nepal had come a long way in the
run-up to its membership in the WTO.  Preparing, as Nepal now was, for a long and uncharted voyage
to the new world, with the many challenges and opportunities ahead, Nepal needed a strong and
resilient ship and good navigational tools and skills.  As Nepal embarked on this voyage, it soughtcontinued support and cooperation from the international community to weather the tempestuous
currents and overcome the many obstacles it might face, so that it would sail smoothly towards the
promised land.  To that end, Nepal looked forward to a productive and meaningful engagement in the
WTO.
The Director-General said that it was with great personal pleasure that he welcomed
Cambodia and Nepal to the WTO family.  This occasion was a water-shed in the evolution of this
institution since its establishment in 1995.  These two countries represented the first LDCs to have
completed accession procedures pursuant to Article XII of the Marrakesh Agreement.  It marked a
significant step forward towards strengthening the credibility and universality of the WTO system.
Indeed, these two accessions had finally put to rest the doubts and criticism to which the WTO had
been exposed regarding its capacity or willingness to encourage least-developed trading partners toparticipate in its work.  Ministers, the WTO system and, most importantly, Cambodia and Nepal had
every reason to be proud of this achievement.  Having said this, he also wished to stress that the
challenge of accessions was far from over.  Twenty-five governments, eight of which were LDCs,
were currently still in the negotiating process.  Others were showing interest in initiating their
accession proceedings.  Cancún should therefore also be the occasion for Members to reaffirm theircommitment to integrating these economies into the mu ltilateral trading system as rapidly as possible.
Members might also need to take into account some  of the candid remarks by Minister Cham Prasidh
of Cambodia.  The Secretariat was fully committed to fulfilling the challenge of providing timely and
focussed technical assistance.  These economies needed it now, and they would continue to need it in
the future.  The WTO was making efforts to enhance the quality of assistance.  A great deal ofprogress had been made, but much more needed to be done.
All representatives who spoke welcomed Mr. Cham Prasidh, Minister of Commerce of
Cambodia and other members of the delegation of Ca mbodia, as well as Mr. Hari Bahadur Basnet,
Minister for Industry, Commerce and Supplies of Nepal and other members of the delegation ofNepal.  They congratulated them for their involvement and commitment which had contributed to the
successful completion of their respective accession negotiations.  They welcomed the completion of
the accession process which would allow Cambodia and Nepal to join the WTO, and looked forward
to working with both countries in the WTO.  They expressed appreciation and gratitude to the
Chairmen of the Working Parties for their chai rmanship and their commendable work which hadWT/MIN(03)/SR/4
Page 9
facilitated the accession process of the two countries, and also to the Director-General and his staff.
The accession of Cambodia and Nepal, which would be  the first two LDCs to join the WTO since its
inception, would strengthen the multilateral trading system and would make the WTO a truly
universal organization.2
The representative of India said that India was very happy to see Cambodia and Nepal at the
threshold of WTO membership.  The accelerated pace with which Members and the WTO Secretariat
had conducted the accession negotiations of both countries was also commendable.  The accession of
Nepal and Cambodia was of particular interest to India since it had close economic and trade ties with
both countries spanning several centuries.  Nepal was also a friendly neighbour.  India hoped that
their economic cooperation and trade relations would be further strengthened by Nepal's accession.
India looked forward to working closely with th ese Governments in the WTO to ensure that the
multilateral trading system responded positively to the needs and concerns of developing countries.
Nepal had applied for accession to the GATT as early as 1989.  For a least-developed country, 14
years was a long period to wait to become a Member of the rules-based multilateral trading system.
Although the accession process for both Cambodia and Nepal had been accelerated during the past
few months, the onerous obligations that had had to be undertaken by these two LDCs in theiraccession processes went well beyond the generally applicable obligations of LDC Members.  This
had been despite the Guidelines for Facilitating and Accelerating Negotiations with Acceding LDCs
adopted by the General Council in December 2002.  India's apprehension was that this might
discourage other LDCs from pro-actively pursuing th eir accession to the WTO.  India therefore urged
Members to refrain from seeking onerous commitments from acceding LDCs and to preserve thespirit of the decisions taken by Ministers at Doha and subsequently in the General Council.  In
conclusion, India supported the adoption of the respective documents relating to the accessions of
Nepal and Cambodia, including the Working Party Reports and the Protocols of Accession.
The representative of Sri Lanka said that at Doha, Ministers had recognized that accession of
LDCs remained a priority and that accession negotiations of LDCs should be facilitated and
accelerated.  Sri Lanka was therefore pleased that keeping to the spirit of that commitment, the
General Council had been able to adopt Guidelines on the accession of LDCs, thus accelerating the
process which would enable Cambodia and Nepal to sign their respective Accession Protocols that
day in Cancún.  Sri Lanka, Nepal and Cambodia were bound by a centuries-old Buddhist cultural
heritage. They were also Members of regional groupings of Asia.  Sri Lanka and Nepal were
Members of the South Asian Association on Regional Cooperation (SAARC) and worked together toadvance economic cooperation in many spheres.  In order to demonstrate Sri Lanka's eagerness to see
Nepal join the WTO expeditiously, and as a symbol of the SAARC spirit of cooperation, Sri Lanka
had not sought any accession commitments from Nepal.  Sri Lanka shared the joy of Nepal and
Cambodia joining the WTO on this auspicious occasion.
Sri Lanka was presently trying to resolve a twenty-year civil conflict. Both Nepal and
Cambodia had also been scarred by civil conflict. In Sri Lanka, examples could be found every day
that peace and economic reforms were inextricably linked.  That was why Sri Lanka was determined
to pursue irrevocable economic reforms that would allow its people to reap the benefits of the global
                                                     
2 In their statements under Agenda item 1, other representatives also welcomed and supported the
accessions of Cambodia and Nepal, including: Angola, Au stria, Bahrain, Benin, Brunei Darussalam, Central
African Republic, Chile, Côte d'Ivoire, Democratic Republic of Congo, Dominica, Egypt, Georgia, Grenada,Ireland, Israel, Italy on behalf of the Presidency of  the European Union, Jamaica, Jordan, Korea, Kyrgyz
Republic, Latvia, Liechtenstein, Lithuania, Luxembourg, Madagascar, Malawi, Malaysia, Malta, Mauritania,
Moldova, Mongolia, Myanmar, Namibia, Nicaragua, Norway, Paraguay, Poland, Qatar, Romania, Saint Kitts
and Nevis, Senegal, Singapore, Slovenia, Solomon Islands, Spain, Thailand, Togo, Tunisia, Turkey, UnitedArab Emirates, United Kingdom, Zambia, Zimbabwe, Belarus (as an observer), Russian Federation (as anobserver),  Samoa (as an observer), Sudan (as an observer), Yemen (as an observer).WT/MIN(03)/SR/4
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trading system and would lay the foundation for lasting peace. This was why, for countries like
Cambodia, Nepal and Sri Lanka, who had experienced civil conflict, Members could not allow
Cancún to fail.  With their accession to the WTO, Cambodia and Nepal would not only acquire rights
but also obligations under various agreements. In this context, they might face difficulties in
implementing WTO agreements due to institutional and human resource constraints. While bothcountries had been provided with technical assistance during the accession process, they should be
provided enhanced capacity building and technical assistance to fulfil their obligations in
implementing WTO agreements.  The WTO was doing commendable work in the area of technical
assistance, and the specific needs of newly acceding LDCs would no doubt form an integral part of
technical assistance programmes that were being developed to assist Cambodia and Nepal.  With the
accessions of Cambodia and Nepal, their respective Governments and people had raised aspirations
and expectations that new trade opportunities would open up that would help them move onto ahigher economic growth path, raise living standards of their people and build a strong foundation for
peace and stability.  Sri Lanka sincerely believed that Nepal and Cambodia would realize these
expectations and achieve their developmental goals.  There were also a number of developing and
least-developed countries currently negotiating accession to the WTO Agreement.  Sri Lanka looked
forward to welcoming the Russian Federation, Saudi Arabia, Viet Nam and, especially, Bhutan, itsSAARC partner, to the WTO family in the very near future.  Sri Lanka wished Cambodia and Nepal
prosperity, rapid development, happiness and peace.
The representative of China said that as a close neighbour of Cambodia and Nepal, China was
delighted to see that after years of negotiations, Members unanimously endorsed these Governements'
respective accessions.  China had all along firmly supported Cambodia and Nepal in this endeavour.
Their hard work was now rewarded.  The accession of Cambodia and Nepal illustrated the continuous
improvement and progress of the multilateral trading system and was hence of positive significance.
China believed that the accession of Cambodia and Nepal would not only benefit these two countries
themselves, but also enhance and develop the entire multilateral trading system.  China had sharedlong-standing friendship as well as commercial and trade links with Cambodia and Nepal, and looked
forward to working closely with these two countries  in the WTO with a view to enabling all WTO
Members to benefit from the multilateral trading system.  China also hoped that other acceding
candidates could conclude their membership negotiations and join the WTO family at an early date.
Members should work together to create wealth and welfare for all countries and all people of the
world.
The representative of Japan said that the accession of Cambodia and Nepal would make the
WTO a more global organization with an appropriate representation of LDCs.  She hoped that with
the Guidelines to Facilitate and Accelerate the Accession of LDCs adopted by the General Council in
December 2002, more countries would follow the good example of Cambodia and Nepal.  Cambodia
and Nepal now faced new challenges to implement the commitments stipulated in their respectiveProtocols of Accession.  Japan continued to support both countries as they took up these challenges.
At the same time, she was convinced that Cambodia and Nepal would be able to reap maximum
benefits from their membership in the WTO by enhancing their capacity and capability to be more
competitive in global trade.
The representative of the European Communitie s said that one of the most amazing things
about the WTO up to the present was that no LDC had succeeded in joining.  The Guidelines to
Facilitate and Accelerate Accession of LDCs adopted by the General Council in December 2002 were
now bearing their first fruit here in Cancún.  While the application of these Guidelines had
undoubtedly helped push forward the accession process of these two countries, they had still tosubscribe to and implement the necessary commitments which, as stated by their representatives,
would be no mean feat.  The European Union, both  as a Union and through its member States, had
contributed significantly to the much-needed technical assistance for Cambodia and Nepal.  The
Community would continue to support them in their future efforts to build capacity and to take fullWT/MIN(03)/SR/4
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advantage of the benefits of WTO membership.  He  also wished to express support and welcome in
the name of the ten WTO Members who would be joining the European Union in 2004.
The representative of the United States said that this was an important achievement for
Cambodia and Nepal.  Cambodia was a land rich with culture and a wonderful people.  It was acountry that had endured tragedy and very great sa dness.  Cambodia would always be associated with
suffering, and he could only admire and respect Cambodia for seeking to create a better future for its
people.  The United States wanted Cambodia to be associated with opportunity and with hope.
Today, trade could be part of building that brighter future, and the United States wanted to build on
this day.  Nepal was another country of quiet dignity.  It had worked to restore democracy and
stability amidst insurgency.  Nepal was also a least-developed country, and the United States greatly
respected that Nepal appreciated that a better climate for trade and investment and the rule of law and
openness were fundamental to overcoming poverty.  All knew that to make trade most effective, theyneeded to combine -- for both Nepal and Cambodia -- aid along with trade to make their accession to
the WTO a true success.  Through this process for both Cambodia and Nepal, the United States had
also benefited, as it had learned more about two wonderful countries.  The United States looked
forward to drawing on that experience to build partnership and deeper friendship.
The representative of Bangladesh, speaking on behalf of the LDCs
, said that today was an
important day for Cambodia and Nepal, for the LDCs  and for the WTO.  No LDC had been able to
join this body for the past eight years.  Bangladesh was delighted that two new Members from among
the LDCs would soon join the organization.  Accessi on of LDCs was a priority for the membership,
and this day marked a stepping stone to accelerate the process for other LDCs.  Cambodia and Nepalhad embarked on a comprehensive programme of economic and trade policy reform to meet the
requirements of accession.  No doubt, this process of reform had been very difficult for them, yet they
had shown their full commitment to the multilateral trading system.  Cambodia and Nepal had earned
their rightful place in this organization.  Bangladesh hoped that the WTO membership would
appreciate the concessions made by the two coun tries in their commitment to the cause of the
multilateral trading system.  The LDCs were the we akest Members in the multilateral trading system.
Since 1995, Bangladesh had been urging the accessi on of LDCs on a simplified and fast-track basis.
In December 2002, the General Council had adopted Guidelines to Facilitate and Accelerate
Accession of LDCs.  These Guidelines reflected the commitment of the membership to the cause of
the LDCs.  Although much of the negotiations for the accession of Cambodia and Nepal might have
taken place prior to the implementation of these Guidelines, Bangladesh hoped that the currently
acceding LDCs would be able to conclude their negotiations within the framework of theseGuidelines.  Cancún would be remembered for ending the stagnation of the accession process of
LDCs.  This was certainly a significant encouragement for LDCs.  Bangladesh believed that in the
coming years more LDCs would earn their rightful place in the multilateral trading system and
become Members of the WTO.  The world would be a better place with more LDC Members within
the fold of WTO membership.  Bangladesh looked forward to Cambodia and Nepal integrating intothe multilateral trading system and thereby hastenin g the process of growth and development in their
respective countries.
The representative of Canada said that Canada had been a strong supporter of the LDCs'
accession initiative that provided recommendations as to how WTO Members might facilitate LDCs'
accession to the WTO.  The approval of the terms of accession of Cambodia and Nepal spoke to the
success of this initiative and to the work of dedicated national officials in Phnom Pen, Kathmandu and
Geneva.  She wished to reaffirm Canada's commitment to facilitate the accessions of LDCs, and
looked forward to working with LDCs that were currently applying for WTO membership.  Canada
firmly believed that the WTO and the multilateral trading system were strengthened each time a newMember joined.  Canada had enthusiastically received the news of Cambodia's accession because it
had been participating in the Working Party on Cambodia's accession.  Canada had also given
technical assistance via the Canadian International Development Agency.  Not only did the WTO
membership gain a new Member, but Canada gained a new neighbour in the WTO meeting room in
Geneva.  She hoped that Cambodia would find its seat comfortable.  Canada also welcomed Nepal.WT/MIN(03)/SR/4
Page 12
While Canada had supported development assistance in Nepal, its trade-related support to Nepal had
come through the Integrated Framework for LDCs.  By assisting LDCs with the mainstreaming of
trade into their national development plans, the Integrated Framework was an excellent complement
to Nepal's WTO membership.  As Canada welcomed Nepal to the WTO, she wished to add that given
the snow-capped mountains that both their countr ies shared, she looked forward to being informed
when the first shipment of snow mobiles from Canada arrived in Nepal.  She knew it was hard to
think of snow when surrounded by the beautiful beaches of Cancún, but she could not resist
suggesting this potential source of new trade between the two countries.
The representative of Australia said that the accession of Cambodia and Nepal was significant
for all Members as it represented a successful achievement of the objective that Members had set
themselves at Doha to facilitate and accelerate the accession of least-developed countries.  Australiahad a warm and friendly relationship with both Cambodia and Nepal.  It had assisted them in their
accession processes through the provision of technical assistance and advice.  This had included
cooperation and assistance to trade officials and the provision of advice on WTO obligations,
including assistance on issues such as anti-dumping and intellectual property rights.  Australia was
particularly pleased regarding the accession of Cambodia, because Australia had only recently beenpart of the peacemaking process in Cambodia.  Therefore, Australia was very pleased to see such a
speedy accession to the WTO for a nation which had undergone so much.  Australia looked forward
to providing continued assistance to both Cambodia and Nepal through its trade-related development
cooperation activities.  This was a very significant occasion for Cambodia and Nepal, as accession
would commence a new phase of greater integration into the global economy and establish animproved platform from which further economic development could occur.  It would provide a
framework for reform that would benefit both countries and assist in attracting investment to
strengthen their economies.  As these countries took up their membership, Australia looked forward to
working with Cambodia and Nepal within the WTO to promote their mutual interest in global trade
reform.  Australia hoped that this would add a new dimension to the healthy bilateral relationship italready had with both countries.  There were 25 countries still seeking WTO membership. Australia
confirmed its commitment to giving priority to th e negotiation of the terms for their membership that
gave appropriate weight to the WTO rules and their joint objective of trade liberalization.  In this
regard, special attention should continue to be paid to the needs of least-developed countries, and to
showing appropriate flexibility in negotiating terms for their WTO accession.  He again congratulated
Cambodia and Nepal on achieving this important goal.  The effort and commitment shown by both
countries demonstrated that it should be possible for all to redouble efforts to bring aboutliberalization and reform of their trade and industrial policies.
The representative of New Zealand said that the accession of Cambodia and Nepal was a sign
of the commitment of Ministers to the objectives agreed at Doha.  New Zealand hoped that these
accessions would provide an example to other LDCs and encourage a new momentum to those LDCs'accessions still outstanding.  New Zealand also wished to reaffirm its commitment to the Guidelines
on LDCs' accession agreed in December 2002, aimed at facilitating and accelerating the accession of
LDCs.  The expansion of the WTO to include new Members, particularly LDCs, could only
strengthen the multilateral trading system on which all depended.  Cambodia's accession was an
important step toward the integration of all countries into the global economy.  The economic reformsassociated with Cambodia's accession complemented the significant advances it had made in moving
towards a more market-oriented economy.  New Zealand was pleased to have been able to support
Cambodia's accession through targeted capacity-building assistance.  New Zealand had been closely
involved in the accession of Nepal.  Indeed, two New Zealanders had chaired the Working Party on
Nepal's Accession in its earlier stages.  New Zealand had also participated actively in the WorkingParty and had been the first country to conclude bilateral market access negotiations with Nepal.
Nepal continued to be an important market for New Zealand wool, and its accession to the WTO
today provided a firm basis for this trade into the future.  Both Cambodia and Nepal, as least-
developed countries, had quota-free and tariff-free access to the New Zealand market for any and allWT/MIN(03)/SR/4
Page 13
of their products.  Once again, he warmly congratulated Cambodia and Nepal and expressed New
Zealand's interest in working closely with them on progressing the shared agenda of the WTO.
The representative of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu
said that on a similar occasion two years earlier in Doha, it was his delegation that had been
welcomed into the WTO family.  The pleasure of completing long and tough accession negotiations
was still vivid in his delegation's mind, and he had no doubt that similar feelings were being enjoyed
by the delegations of Cambodia and Nepal.  Chinese Taipei had enjoyed a close economic
relationship with Cambodia over the years.  It was the largest foreign investor in Cambodia and had
been among the first Members to sign a bilateral protocol with Cambodia on its accession to the
WTO.  Chinese Taipei was confident that the WTO membership would further strengthen this
relationship through a more liberalized trade and investment environment in Cambodia.  Theaccession of Nepal to the WTO would allow that country to further integrate into the multilateral
trading system and would bring about long-t erm benefits to its economic development.
The representative of the Philippines, on behalf of ASEAN Members
, said that these countries
welcomed Cambodia's accession and were confident that Cambodia would make a significant
contribution to the strengthening of the multilateral trading system.  ASEAN Members believed that
through its full membership, Cambodia would be able to accelerate and fulfil its development goals.
On a more practical note, with Cambodia's accession to the WTO, Mr. Cham Prasidh, who was
currently the Chairman of ASEAN, could now speak on behalf of ASEAN Members.  ASEAN
Members also congratulated Nepal as a full member of WTO and hoped that through its membership,Nepal would contribute positively to the overall objectives of the multilateral trading system and
further enhance the development proposals of its Members.  ASEAN Members thanked all those who
had contributed and given full support to the two countries since the beginning of their accession
processes.
The representative of Guinea congratulated the Director-General on his status report on the
implementation of the commitment by Ministers to facilitate and accelerate the accession of
least-developed countries to the WTO.  Her delegation welcomed the adoption of the Guidelines on
Accession of LDCs in December 2002, and welcomed also the accession of Cambodia and Nepal.
Both countries had admittedly faced a number of difficulties during their accession processes, but had
overcome them with panache.  These accessions marked an important step forward in the process of
integrating least-developed countries into the global economy, but above all they marked a decisiveturning-point in the development of the WTO.  When visiting Cambodia that year, she had had an
opportunity to assess the extent of the efforts Cambodia had made in a very short time to reform its
economy and achieve appreciable results.  Accession to the WTO would unquestionably open up new
prospects for this country.  Her delegation was also certain that, in the context of South-South
relations, many LDCs would draw on Cambodia's ex ample in the process of internalization and
implementation of the Integrated Framework for Trade-Related Technical Assistance.  The accession
of Cambodia and Nepal should not be an end in itself, but rather the catalyst for a process in favour of
other LDC candidates for accession.  Therefore, she wished to make an urgent appeal to all Members
for greater understanding and flexibility to enable LDC candidates to accede to the WTO easily and
expeditiously.
The representative of South Africa said that it was important to note that both Cambodia and
Nepal, which were least-developed countries, had nevertheless become convinced of the advantages
of joining the WTO.  This fact was encouraging for those who were campaigning vigorously for a
more equitable, but nevertheless rules-based, global trading system, and indicated that Members wereon the right track.  This also strengthened South Africa's belief in the value of a global, rules-based
trading system, which protected the interests of both rich and poor alike, but which also took due
account of the need to accommodate different levels of economic development.  Many Members were
from Africa, and had shared that belief when joining the WTO.  South Africa hoped that Cambodia
and Nepal would both benefit from their WTO membership, and that their evident faith in the WTOWT/MIN(03)/SR/4
Page 14
as an organization working towards a more equitable global trading system would be rewarded.
Members were encouraged by the decision of these two countries to seek membership.  However,
they were challenged, since they had to ensure in Cancún that the faith of so many developing, and
especially least-developed, countries in the WTO was maintained, and in fact grew.  As one
delegation had stated earlier, unless the WTO bicycle kept moving forward, it would fall over.  Thatwould have very serious consequences for all.
The representative of Pakistan said that Pakistan enjoyed close historical, cultural and
political relations with its neighbour Nepal, a fellow member of the South Asian Association for
Regional Co-operation (SAARC).  With Nepal's accession, the only South Asian country whose
membership was still pending was Bhutan, who woul d hopefully join soon.  Pakistan also enjoyed
close and friendly relations with Cambodia, a country which had suffered greatly in the recent past.Both Cambodia and Nepal had made considerable domestic efforts to secure their accession.  The
Guidelines adopted in December 2002 had helped ensure their early accession.  The WTO was now
much closer than ever to the goal of universality.  This was a goal all should pursue with vigour.
The representative of the Lao People's Democratic Republic, speaking as an observer
, said
that his country wished to learn lessons from and exchange experiences with Cambodia and Nepal in
order to be well-prepared for its accession.  Lao hoped to gain momentum for its accession with a
view to integrating into the world trading system in the near future.  Lao was in the early process of
accession to the WTO.  It had submitted an application in 1997 and the Working Party had been
established in 1998.  The Memorandum on the Foreign Trade Regime had been prepared andsubmitted to the WTO in March 2001.  To clarify some issues in the Memorandum, 263 questions had
been raised by Members, and Lao had recently finalized the answers to these questions.  Lao believed
in the multilateral trading system and that it would generate wealth and prosperity for each Member,
through enhancing trade opportunities, transferring technology, and generating employment and
benefits.  However, Lao had to recognize that such opportunities did not come automatically as abenefit to each individual country, and was very much dependent on the country's ability to seize
them.  In this regard Lao, as an LDC, required technical assistance to help facilitate its smooth
integration into the world trading system, and requested Members' attention and priority for fast-track
accession.  He wished to put on record his sincere appreciation to the WTO as well as to the Mexican
Organizing Committee for their hospitality and the excellent arrangements made for this Conference
The representative of Viet Nam, speaking as an observer
, said that it was all the more
remarkable that the accessions of Cambodia and Nepal had been concluded during the Doha
Development Round, where development was at the heart of the work programme.  As a close
neighbour of Cambodia and an ASE AN friend, Viet Nam sincerely hoped that the promise would be
delivered, and that trade would help bring economic development and a better life to the Cambodian
people.  On behalf of the Vietnamese Government and people, he hoped that with their accession tothe WTO, Cambodia and Nepal would embark on a j ourney to prosperity.  He also hoped that Viet
Nam would join the WTO as soon as possible.
The Ministerial Conference took note of the statements and of the expressions of welcome
and support.
The Chairman then informed the Ministerial Conference that the signing ceremonies of the
Accession Protocols of Cambodia and Nepal would be held on 12 September at 2 and 2:45 p.m,
respectively, in Press Conference Room C.  A press meeting would be held that evening in Press
Conference Room A on the Accession of Cam bodia from 8:30 - 9 p.m., and on the Accession of
Nepal from 9 - 9:30 p.m.
The meeting adjourned at 8 p.m.
__________