WORLD TRADE
ORGANIZATIONWT/COMTD/42
11 September 2002
(02-4754)
Committee on Trade and Development
WTO MINISTERIAL TRADE CONFERENCE
FOR CENTRAL ASIAN AND CAUCASUS COUNTRIES
Tbilisi, Georgia
21-22 May 2002
The WTO Secretariat would like to circulate to Members and Observers for their information
the Report* of the above-mentioned meeting.
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REPORT
I. BACKGROUND
1. A WTO Ministerial Trade Conference for Central Asian and Caucasus countries was held in
Tbilisi, Georgia, from 21-22 May 2002 in cooperation with the host country, Georgia.  The meeting
provided a unique opportunity for countries of the region as well as WTO and regional and
international agencies to exchange views on a broad range of issues.  The main objectives of the
Conference were to assist countries which are either in the process of joining or have recently joined
the WTO to participate successfully in the multil ateral trading system;  and to identify ways to
support countries' preparations for and participation in the current negotiating process.
2. These objectives were pursued through sessions focused on the following broad topics:
• Challenges and opportunities in the multilateral trading system: Trade and
Investment;
• The multilateral trading system in a post Doha Framework: New Issues Emerging
from Doha and challenges ahead;
• Trade-rule-making and liberalization: regionalism and the WTO in light of Doha;
• WTO Technical Cooperation/Accessions.
The WTO Ministerial Trade Conference was the first ever high-level conference of its kind held in the
region.  It allowed participants to consider trade issues of mutual concern, address wider societalconcerns, exchange information on the WTO and its functioning and share experiences with regard to
their participation in the WTO.
                                                     
* This document has been prepared under the Secr etariat's own responsibility  and without prejudice to
the positions of Members and to their rights and obligations under the WTOWT/COMTD/42
Page 2
3. Ministers, Deputy Ministers and high-level government officials were invited from
Afghanistan, Armenia, Azerbaijan, Georgia, Ira n, Kazakhstan, Kyrgyz Republic, Pakistan, Russian
Federation, Tajikistan, Turkey, Turkmenistan, Ukraine and Uzbekistan.
4. Also invited to the Conference were various bilateral donors, the diplomatic corps in Georgia,
regional and international organizations and bodies (the World Bank, IMF, UNDP, ITC, the
Economic Cooperation Organization (ECO), th e Black Sea Economic Cooperation (BSEC),
International Chamber of Commerce, Joint Vienna Institute (JVI), OECD, OPIC, OSCE, EBRD,
UNCTAD, UNECE, ESCAP, the Asian Development Bank (ADB), Islamic Development
Bank (IsDB), the World Economic Forum), as well as some NGOs.
5. The Conference brought together more than 200 participants.
6. Background documentation, including briefing notes prepared by the WTO Secretariat, was
provided to officials at the Conference.
7. The Conference drew considerable media attention from local and international press, radio
and TV.  The Director-General held a media conference at the conclusion of the Conference.
8. This summary report has been prepared by the WTO Secretariat for the information of
Conference participants.
II. OPENING OF THE CONFERENCE
9. H.E. Mr. Irakli Menagarishvili, Minister of Foreign Affairs of Georgia, welcomed
participants.  The President of Georgia, H.E. Mr. Eduard Shevardnadze, then delivered a keynote
address.  He stressed the growing role of the World Trade Organization in the sustainabledevelopment of the world economy and underlined the critical importance of the Doha Ministerial
Declaration.  The launching of a new trade round in Doha was essential towards ensuring continued
trade liberalization and economic growth.  The President underlined the crucial role that Georgia's
accession to the WTO played in its integration into the global economic system.  For newly acceded
countries, enhanced technical assistance will continue to be an indispensable tool to facilitate thisprocess of integration.  The President welcomed the funds made available by WTO Members for
technical assistance through the Doha Development Agenda Global Trust Fund.  Also, the President
welcomed the specific reference made in the Doha Declaration to the provision of technical assistance
to small low-income developing countries in transition.
10. The Conference was formally opened by the Director-General, Mr. Mike Moore, who
outlined for participants the overarching objectives of the Conference.  First, the Conference could
assist countries of the region, which are either in the process of joining the WTO or have recentlyjoined, to participate successfully in the multila teral trading system.  Second, the Conference could
help identify ways to support countries' preparat ion for and participation in, the current negotiating
process. The Director General said that the Conference presented a unique opportunity to exchange
views and share experiences on a broad range of WTO trade-related issues.  He further indicated the
importance for the WTO Secretariat to learn directly from the countries about the challenges that theyface.WT/COMTD/42
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III. SUMMARY AND MAIN ISSUES EMERGING FROM THE CONFERENCE
11. The Conference led to exchanges of views and deliberations between the participants on a
broad range of trade-related issues.
12. The programme was structured around four main themes and there was a final Round Table
discussion in which Ministers commented individually on the various sessions.
Session 1: Challenges and Opportunities in the Multilateral Trading System: Trade and
Investment
13. The moderator, the Director-General of the WTO, Mr. Mike Moore, made an introductory
statement raising a series of questions for possible discussion:
• How to reap the new market opportunities on the export side;
• How to participate successfully in the globalization process;
• How can domestic policies enhance cross-border trade, foreign direct investment and
capacity building;
• How can the WTO assist countries in the region to enhance their opportunities and
understandings in the area of trade and investment;
• How to draw from the body of WTO law and rules to assist domestic policies;
• How to build human and institutional capacity to better understand the multilateral
trading system and participate therein.
14. Presentations by participating countries covered national economic performance, the situation
of domestic trade and finance and new investment opportunities, and the evolution of underlying
regulatory and macroeconomic conditions over the recent period.  Participating countries discussedthe main challenges countries face in light of deve lopments in the multilateral trading system and the
global economy.  They examined how domestic policies can enhance cross border trade, foreign
direct investment and capacity building and the mechanisms to enhance transparency,
non-discrimination and stability of trade and finance policies.  Statements were also made by some of
the invited agencies such as the IMF, World Bank, ADB, ITC, OPIC, Georgian BusinessConfederation.
15. The main points made are summarized as follows:
• In 2001 the Central Asian and Caucasus region had overcome the shock of a financial
crisis in the region and had been poised to achieve positive rates of growth.  Theaftermath of 11 September events, however, had brought the region's expectations to
a standstill.  Losses in production and trade resulting from a slowdown of economicactivity and investment are estimated at billions of dollars.  Only very recently, signs
of recovery have started to emerge in some of the countries of the region and
standards of living are once again on the verge of modest increases.
• Due to weak productive structures and institutional capacities, the transition
economies of the region are vulnerable to external shocks. Domestic reform needs to
be supported by sound macroeconomic conditions and transparent regulatory policies.WT/COMTD/42
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• Overall FDI had expanded rapidly in 2000, but contracted sharply in 2001. FDI
required transparent, predictable and stable conditions and is adversely affected by
inflation, policy instability, lack of predictability and time-consuming administrative
regulations.
• Many participating countries summarized their respective legislative reform
programmes to implement the WTO Agreements and drew attention to the economicsectors that provide incentives for foreign investment and foreign private capital.
Agriculture, tourism and financial services were some sectors with structural
difficulties that would continue to need state economic assistance.
• The experience of many countries confirmed that trade liberalization together with
the implementation of the WTO Agreements and other financial and economicpolicies, are sine qua non conditions for economic development and attracting FDI.
• The participation of regional institutions, such as UN economic commissions and
regional development banks in the reform process of economies in transition would
facilitate reform and adjustment and help provide a proper perspective to consider the
priorities and concerns of the region.
• Conference participants stressed the need for their countries to participate actively in
the current negotiations and follow closely the implementation of the DohaDevelopment Agenda.
• Accession to the WTO is an essential step towards integration of transition economies
into the multilateral trading system.  All interested countries in the region should
commence WTO accession negotiations as an essential element of their economicreform programmes.
• Participants indicated that trade rules sh ould apply equally to both current WTO
members and to acceding countries.  Accession to the WTO gives impetus to andhelps to consolidate economic reform and to promote adjustment. No additional
requirements should be imposed upon non-member countries.
• Many of the participating countries are parties to various regional economic and trade
agreements that support the process of development and these need to be preserved.
Irrespective of bilateral differences, participating countries need to cooperate to
achieve trade and economic objectives.
• Participants recognized the importance of private-public sector partnerships.
• The representatives of international organizations and regional bodies outlined their
activities in the region and noted that recent studies confirmed that economic
development and trade liberalization are complementary.  The participating countries
agreed that close cooperation among international organizations providing technical
assistance is necessary especially in view of their different mandates, expertize andresources.WT/COMTD/42
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Session 2: The Multilateral Trading System  in a post-Doha framework: new issues
emerging from Doha:  challenges ahead
16. Key issues posed in this session related to how countries in the region could better engage in
the negotiating process and what kind of domestic adjustment could be necessary, including at theinstitutional and policy levels, to respond to the negotiating process.
17. The lead speaker, Mr. George Gachechiladze,  Minister of Economy, Industry and Trade
presented a Georgian perspective on these matters.  The Minister underlined the key role that WTO
membership plays in Georgia's economic development strategies.
18. The Minister stressed the challenges of domestic reforms that were implemented, both at the
institutional and regulatory level, including the introduction and amendment of domestic laws and
regulations compliant with WTO rules.
19. The Minister further stressed that as a result of the Doha Ministerial Conference:  a broader
range of trade issues will be addressed and the outcome of discussions and negotiations will have
important implications for global economic development.  This presents a considerable challenge for
acceding and newly acceded countries from the region.
20. In the Minister's view one main outcome of th e Doha Conference was the introduction of the
notion "small-low-income developing countries in transition". The Minister stressed that technical
assistance is particularly required for these countries.
21. In the ensuing discussion, several delegations took the floor to express their views, which can
be summarized as follows:
• Good progress has been made and concrete steps taken following the Doha
Ministerial Conference.  Institutionally, negotiating bodies have been established and
chairpersons of all the individual negotiating bodies decided upon.
• The modalities for conducting the negotiations will be critical in securing the full
participation of countries from the region.  For many countries, the conclusion oftheir accession negotiations and the implementation of WTO obligations, following
accession, are critical issues.  At the same time, for many countries, all preparationsare in place for active participation in the negotiating process.
• Technical assistance is required to assist Caucasus and Central Asian Countries to
implement their WTO obligations and commitments as well as to prepare for thenegotiations.
• Participating countries underlined that a thematic focus will be essential in particular
areas including in market access, agriculture liberalization and intellectual propertyrights protection.  Many countries called for the extension of geographical indications
to products other than wines and spirits.
• New issues will need to be accommodated after the next Ministerial Meeting in
Mexico.
• Participating countries indicated that the WTO negotiating process needed to be
comprehensive.  It is essential to have full participation of all Members and acceding
countries therein.WT/COMTD/42
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Session 3: Trade-rule-making and liberalization : regionalism and the WTO in light of the
Doha mandate
22. The lead speaker, Ms Carmen Pont Vieira, of the WTO, introduced the subject and explained
that WTO Members recognize that regional trade agr eements can play a significant role in promoting
trade liberalization, in enhancing trade opportunities and, ultimately, in fostering economic
development. According to WTO rules, regional trade agreements are allowed if certain conditions
are met, but interpreting the wording of these rule s has proved controversial and has jeopardized the
work of the Committee on Regional Trade Agreements.  This issue is now an important challenge
when nearly all WTO Members and acceding countries are parties to regional agreements or are
considering concluding them.  In the Doha Decl aration, Members agreed to negotiate a solution.
23. In the discussion that followed, participants made several points, which can be summarized as
follows:
• Participating countries underlined the importance of regional trade agreements for
countries in the region and expressed their continued support for furthering regionalcooperation to facilitate trade.
• Regional preferential trade agreements can be important means, inter alia, to
accelerate growth, increase bargaining power and alleviate external shocks.
• The representatives of the two main regional bodies (ECO and BSEC) presented an
overview and gave detailed reports on achievements in two of the major tradeinitiatives in the region. The representatives also explained the cooperation existing
between the regional bodies and the WTO and how it can be strengthened in future.
• Some delegations questioned the need to negotiate more WTO rules (on RTAs) when
the existing ones are not functioning. At the same time, delegations called for stricter
and clearer rules on RTAs to solve problematic issues and uncertainties in GATT
Article XXIV and GATS Article V.
• Several participants referred to the en largement of the European Union and
questioned the legitimacy of extending to the markets of new members tradeprotection measures put into effect by the original members only.
Session 4: WTO Technical Cooperation/Accession
24. The moderator, Mr. Chiedu Osakwe, Director of  the Technical Cooperation Division of the
WTO introduced the subject.  He referred to the WTO Technical Assistance Plan for 2002, the
mandate on technical assistance that emerged from  the Doha Ministerial Conference and the Doha
Development Agenda Database (which is currently being developed in partnership with the OECDand  the Doha Development Global Trust Fund). The moderator also reviewed the Secretariat's
strategic responses to the Doha mandate and looked at the results to date.  The moderator indicated
that to be included in the Technical Assistance Plan for 2003, technical assistance requests for 2003
should be submitted to the Secretariat before the end of July.
25. The lead speaker, Ms Tamara Beruchashvili, Deputy Minister of Foreign Affairs of Georgia,
outlined the key challenges that newly acceded countries face in meeting their legal WTO obligations.
She highlighted the challenges with regard to th e implementation of commitments and stressed theWT/COMTD/42
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need for continued technical assistance.  The Deputy Minister welcomed various technical assistance
initiatives that had been taken by the WTO, in several cases jointly with other agencies.  The
Deputy Minister also stressed key issues in the post-accession period, including meeting notification
requirements and the necessity for countries to develop human and institutional capacity, and acquire
specialized expertise through training.  The Deputy Minister expressed her readiness to share theGeorgian experience with acceding countries and offered to host other regional activities on trade-
related issues.
26. In the discussion, participants identified priority technical assistance needs for the region.
Priorities identified included the following:
• Technical assistance for implementation support in such areas as:
- drafting domestic legislation;
- meeting notification obligations;
- scheduling commitments;
- tabling requests and offers; and,
- mainstreaming trade into development plans and Poverty Reduction Strategy
Papers.
• Technical assistance for pre- and post-accession support.
• Technical assistance with a focus on agriculture, services, TBT, SPS, TRIPS, etc.
• Training for trade negotiations, for trade policy makers and trainers.
• Thematic-based workshops.
• Establishment of WTO Information Centres and WTO Reference Centres.
• Support in developing and setting up national trade databases.
• Strengthening the interaction between the public and private sector.
• Technical assistance through seminars, conferences, workshops to build support for
the WTO, explain membership benefits, raise private sector awareness and related
matters.
• Participants stressed the need for agencies to coordinate their respective technical
assistance activities conducted in various countries.
• Participants stressed the importance of linking technical assistance to aid and
domestic policy reforms.
27. There was considerable focus on the second broad theme of this session –  accessions.
• Participating countries noted that those participants who were not yet members of the
WTO were actively pursuing accession negotiations or had applied for accession toWT/COMTD/42
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WTO.  As provided for in paragraph 9 of the Doha Ministerial Declaration,
participating countries expressed support for the acceleration of the accession
negotiations and their expeditious conclusion.
• Participating countries in the process of accession emphasized the need for flexibility
in the accession negotiations.  Participants addressed concerns arising from the
accession process, whereby each accession is conducted on its own merits (case by
case).  Participants indicated that it would be desirable to put acceding countries at
the same level of rights and obligations as Members with regard to the WTO
Agreements and market access commitments in goods and services.
• Transitional arrangements to implement certain complex WTO Agreements such as
TBT, SPS, TRIPS, and agriculture, should be considered whenever necessary in light
of the limited resources and administrative capacities of many of the accedingcountries.
• Participating countries in the process of accession acknowledged that WTO and other
international organizations, as well as individual partners, had been providing highquality technical assistance in connection with WTO accession.  They requested that
technical cooperation activities be continued and intensified in the short and mediumterms and proceed in symmetry with the accession negotiations.
• Participating countries also felt that technical assistance should be continued after
accession to facilitate the implementation of the agreed commitments includingcompliance with the WTO notification requirements.
• It was also suggested that, at the initial stages, technical assistance should address the
advantages and disadvantages of WTO accession.
• Participating countries requested that the WTO Secretariat evaluate the possible
consequences of accession to the WTO on the existing regional trade agreementsamong acceding countries.
• Participating countries also noted that technical assistance should address expressly
the issue of participation in the Doha negotiations. In this respect, there was animmediate and urgent need for capacity building with particular regard to the new
issues.
• Participating countries were informed that  in pursuance of the Doha Ministerial
Declaration a seminar on accession to WTO open to all acceding governments and
WTO partners would be held in Geneva on 15-16 July 2002.
28. Following the Director General's summary of the proceedings, Mr Irakli Menagarishvili,
Minister of Foreign Affairs made his closing remarks, after which Mr. Mike Moore formally closed
the Conference.  Many useful ideas and insights on how best to assist the region to integrate into themultilateral trading system had emerged from the Conference.  It was generally felt by the participants
that this Conference was a first step that should be followed-up by further activities in the region.  In
this regard, the Director-General undertook to circulate a Secretariat report on the Conference to all
participants and the WTO membership for information.
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