WORLD TRADE
ORGANIZATIONWT/GC/W/259
21 July 1999
(99-3037)
General Council Original:  English
PREPARATIONS FOR THE 1999 MINISTERIAL CONFERENCE
Technical Assistance
Communication from Canada, Denmark, Neth erlands, Norway, Sweden and Switzerland
The following communication, dated 16 July 1999, has been received from the Permanent
Mission of Norway.  The communication also attaches a letter, dated 12 July 1999, sent from the
Coordinator of the WTO African Group to the Ambassador/Permanent Representative of Norway, thetext of which is reproduced as an Annex to this document at the request of Norway.
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Proposal
1. The third WTO Ministerial Conference in Seattle reconfirms the importance of technical
cooperation as an integral activity of the WTO.  The responsibility to finance these activities should
therefore be shared by all the Members.  The Conference decides that technical assistance in principle
shall be financed through the regular budget.  Technical assistance shall be directed to the needs
related to the implementation of WTO agreements and Ministerial Declarations and to the integrationof developing countries in the international tradin g system.  Furthermore, the Ministerial Conference
decides that the additional funding for technical assistance shall be made possible through an increase
in the existing regular budget and not through reallocations.  The necessary increase in the budget to
meet at least the current annual demand for technical assistance, i.e. Sw F 10 million, shall be phased
in by the same amount over a period of three years starting from year 2000.  Ministers recognize thatthis does not exclude potential extra-budgetary contributions.
Background
2. Technical cooperation is a systemic issue of fundamental importance, as reflected in the
relevant provisions of the WTO agreements and as confirmed by Ministers in past WTO MinisterialConferences.  Technical assistance is provided in order to build institutional and human capacity and
to enhance the ability of Members, and developing countries and LDCs in particular, to meet their
rights and obligations.  While technical assistance is an important part of integrating developing
countries into the multilateral trading system, it is not a substitute for other actions by Members which
can contribute to a better integration of the developing countries in the international trading system.
3. Technical cooperation activities increased more than fourfold between 1995 when the WTO
Agreement entered into force, and 1998.  The demand for technical assistance provided by the WTO,
including those funded by individual trust funds, is expected to represent approximately 10 million for
1999.  In 1999 Sw F 716,000 was provided through the regular WTO budget, representing only
0.56 per cent of the total WTO budget of Sw F 127 million.WT/GC/W/259
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4. This high dependency on voluntary extra-budgetary contributions provided by some Members
has even increased in recent years.  Whereas 80 per cent of technical cooperation activities were
financed by a number of Members through volu ntary, extra-budgetary contributions in 1998, this
proportion is projected to increase to 90 per cent in 1999, creating a high degree of volatility as well
as uncertainty as to the continued availability of funding.  In addition, dependence on yearly ad-hocgrants that are subject to each Member’s financial situation and priorities makes it difficult to plan
even the short-term technical cooperation activities.  In July 1999 a Global Trust Fund for technical
cooperation was established with the view to achieve a more efficient management of extra-budgetary
resources.  This Trust Fund will continue to serve as a base fund for extra-budgetary funding.
5. WTO activities under the Integrated Framework, which resulted from the Singapore
Declaration, have had to be financed with the Trust Funds at the Secretariat’s disposal.  Moreover, the
High-Level Meeting also endorsed two recommendations with implications for technical cooperationon efforts to assist least-developed countries in the process of accession, and on assistance in
preparing their trade policy reviews.
6. The limited capacity of the Secretariat and the need to improve the efficiency in
implementing technical assistance, calls for clos er cooperation between the Secretariat and other
relevant international organizations to enhance developing countries integration into the internationaltrading system.  In addition, there is a need for a more rational approach in meeting the demand for
technical assistance from Members through the establishment of medium- and long-term plans.
7. The solution in order to secure financing of technical assistance on a sustainable basis is to
increase the regular WTO budget for this purpose.WT/GC/W/259
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ANNEX
Letter from the Coordinator of the WTO African Group, Ambassador Rana of Kenya to the
Ambassador/Permanent Representative of Norway H.E. Mr. Häre Bryn
"As Coordinator of the WTO African Group, let me primarily thank you for the confidence of
the Norwegian delegation in Members of the WTO African Group on the basis of which you
forwarded the Norwegian proposal to the African Group for its consideration.
The Group carefully considered the Norwegian proposal on Technical Assistance at its
meeting of 9 July 1999.  Members welcomed the proposal and agreed to support it.  It was consideredthat technical assistance was one of the most important priority issues for African countries in the
multilateral trading system.  Technical assistance is a core WTO activity, a pre-condition for the
implementation of African Members' obligations and commitments, and hence a necessary condition
for their integration into the multilateral trading system.
In considering the Norwegian draft, Members recalled the discussions at the 27th Session of
the CTD on 8 July 1999, and again expressed alarm at the report, by the WTO Secretariat, of the
deficit faced in the delivery of WTO technical assistance.  In this connection, there was strong support
for the Norwegian proposal that WTO technical assistance should be funded through the regular
budget.
At the same time, I should bring to your attention that the view was expressed that not 'all'
Members would be in a position to be responsible for the financing of technical cooperation activities,
particularly the African Members who are the primary beneficiaries.
You may wish to circulate this letter as an attachment to the Norwegian proposal, as evidence
of the support of the WTO African Group, and of the Group's position and concerns on the question of
technical assistance."
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