WORLD TRADE
ORGANIZATIONWT/COMTD/38
15 July 2002
(02-3932)
Committee on Trade and Development
DOHA DEVELOPMENT AGENDA: TRADE-RELATED CAPACITY-BUILDING AND THE
ROLE OF REGIONAL DEVELOPMENT BANKS
Regional Development Banks Meeting of 3 May 2002
EXECUTIVE SUMMARY1. A first policy dialogue between the WTO and Heads and representatives of six major regional
development banks (RDBs) was held at the WTO on 3 May 2002 at the initiative of the Director-
General.  The objective of the meeting was to enhance WTO's partnership with the banks in response
to the technical assistance and capacity building mandates established by the Fourth Ministerial
Conference, held in Doha, Qatar, in November 2001. The following institutions were represented: the
Arab Monetary Fund; the African Development Bank; the Asian Development Bank; the European
Bank for Reconstruction and Development; the Inter-American Development Bank; the Islamic
Development Bank; the World Bank; and the New Partnership for Africa's Development (NEPAD)
Secretariat.
2. Participating Heads and representatives of regional development banks met in a private
meeting with the Director-General.  This was followed by a meeting with the WTO membership.  The
programme for the meeting is contained in Annex I.  A summary of the private meeting is attached in
Annex II.  Statements made at the meeting with the WTO membership are attached in Annex III.
3. The Director-General of the WTO welcomed all participants to the first policy dialogue,
which was an important event in the WTO's history of inter-agency cooperation.  RDB's close
relationships with countries in their respective geographical areas, where common trade and
development problems exist, would assist the WTO in responding to the technical assistance andcapacity building needs of developing countries.  The Director-General invited the RDBs in the
implementation of the Doha Development Agenda.
4. The position emerged that the RDB and the WTO needed to work together to enhance the
complementarity and coherence of regional integration processes with trade liberalisation efforts at
the multilateral level.  As part of their support for structural reforms in developing countries, RDBs,together with the Bretton Woods institutions, had embraced trade and integration issues as one of the
objectives for the promotion of economic growth and poverty reduction in their respective regions,
thereby contributing to the common objectives pursued at the global level.  In light of the new
opportunities created by the new trade negotiations, the WTO hoped to see the banks play a greater
role in supporting developing countries obtain benefits from the open trading system.
5. The heads and representatives of the RDBs recognised the value of their partnerships with the
WTO and the World Bank. These partnerships should go beyond technical assistance and should be
mutually supportive.  This included, for instance, direct lending for policy and institutional reforms in
support of trade liberalisation, and promotion of regional integration and cooperation through trade-WT/COMTD/38
Page 2
related information database, trade financing facilities and trade facilitation infrastructure investments.
In addition, attention was drawn to the work of the RDBs in providing technical assistance for
capacity building and research, on grant and lending bases, to assist their respective borrowing
members to meet the challenges of trade negotiations, implementation of trade agreements and
accession negotiations.
6. At the private meeting, four broad areas for strategic cooperation emerged.  First, the heads
and representatives of the participating institutions  recognised the ever-increasing demand for trade-
related technical assistance and capacity building.  Given the limited human and technical resources
of developing countries, RDBs had embarked on a number of technical assistance programmes to
enable them implement WTO rules and obligations, participate more effectively in the work of the
WTO, and draw on the benefits of trade liberalisation. However, the demand for technical assistance
and capacity building was greater than the supply, and this trend seemed to continue.  Concern wasfurther expressed about the reluctance of developing countries to borrow for capacity building, whose
return was not immediate.  It was stressed that developing and least developed countries needed to
understand that expenditures in trade-related technical assistance, including for negotiations, were
long-term investment for growth.
7. Second, the participating institutions agreed on the critical importance of mainstreaming trade
into national development plans and poverty reduction strategies for developing countries to fully
benefit from the Doha Development Agenda.  The Director-General suggested that the RDBs convene
policy dialogues of trade and finance ministers at the regional level, to which the WTO and the World
Bank would also be invited.  Bringing together trade and finance ministers was a first step in shaping
a country's trade agenda in the context of its overall development.  In this regard, it was recognisedthat the model by the Inter-American Development Bank offered relevant good practice for other
RDBs to follow.  The heads and representatives of the RDBs expressed willingness to work
collaboratively with the WTO and the World Bank.  They also offered to make use of their close
contact with the private sector to increase awareness on the need for trade mainstreaming.
8. Third, all participants reiterated the necessity of linking policy and operational work.  In this
regard, the value of the Integrated Framework was recognised.  Given their operational strength at the
country and regional levels, the Director-General proposed that the RDBs be closely associated with
the implementation of the Integrated Framework, incl uding in the follow-up phase to the IF diagnostic
trade integration studies.  It was stressed that IF-type inter-agency coordination was indispensable not
only for LDCs, but also for non-LDC low-income countries and possibly for other developing
countries.  The RDBs agreed to follow up on this su ggestion with the WTO as the IF coordinator, and
the World Bank as the lead agency for trade mainstreaming.
9. Fourth, the heads and representatives of the RDBs appealed to the WTO to keep them fully
informed of developments during the trade negoti ations.  Such briefings would help advance and
focus their trade-related work at the country and regional levels.  They expressed frustration that they
would be expected to offer trade-related technical assistance in support of the implementation of the
Doha Development Agenda, and yet be excluded from the trade negotiations and WTO bodies,including as observers.
10. Finally, the Director-General proposed that this dialogue should continue, on an annual basis,
within the framework of a WTO-World Bank-Regi onal Development Bank Dialogue.  This idea was
widely welcomed by the participating institutions.  The Director-General undertook to convey this
message to his successor, Dr. Supachai.WT/COMTD/38
Page 3
ANNEX I
PROGRAMME
DOHA DEVELOPMENT AGENDA, TRADE-RELATED CAPACITY BUILDING AND
THE ROLE OF REGIONAL DEVELOPMENT BANKS
3 MAY 2002, WTO, GENEVA
10.00 Private meeting between WTO Director-Gen eral Mike Moore and Heads of regional
development banks and other invited organisations.
− Introductory remarks by WTO Director-General Mike Moore
− Briefing by Director of Technical C ooperation Division, Mr. Chiedu Osakwe, on
WTO Technical Assistance Plan 2002 and current cooperation with regional
development banks . 
− Discussion
12.15 Signing of MOUs
12.30 Press Conference with Heads of regional development banks13.00 Luncheon hosted by  WTO Director-General
Afternoon session – WTO Members and Observers invited to participate
15.00 Dialogue with WTO Members and Observ ers along the theme of "Developing
partnerships: cooperation between regional development banks and the WTO in
responding to capacity-building needs of the Doha Development Agenda "
Introductory remarks by Director-General of the WTO
15.15 Presentations by Heads of Regional Banks (10 minutes each)
Mr. Enrique Iglesias, President, Inter-American Development Bank
Dr. Jassim Al-Mannai, Director-General, Arab Monetary Fund
Mr. Olabisi Ogunjobi, Vice President,  African Development Bank
Mr. Joseph Eichenberger, Vice-President, Asian Development Bank
Mr. Abdul Aziz M. Kelaibi, Director, Cooperation Office, Islamic Development Bank
Professor Willem Buiter, Chief Economist, European Bank for Reconstruction and
Development
16.15 Floor open for discussion
17.00 Regional and multilateral perspectives on capacity building pursuant to the Doha
Development Agenda (10 minutes each)
Ms. Frannie Léautier, Vice-President, World Bank
Ambassador Faizel Ismail of South Africa, on behalf of the New Partnership for
Africa's Development Secretariat
17.20 Discussion continues18.00 Concluding remarks by Director-General of the WTOWT/COMTD/38
Page 4
ANNEX II
Issues that emerged from the private meeting
• Agreement that Regional Development Banks are key to the effective implementation of the
DDA.  Effective TA and CB should be regional.
• Regional development banks, WTO and the World Bank will collaborate effectively to work with
trade and finance ministers on:
- diagnostic trade research;
- assisting trade and finance ministers coordination;
- the necessity of trade expansion for growth;
- explaining to beneficiary countries that grant  support will not be enough, but
that they also have to borrow for trad e expansion, and that it is in their own
interest to do so.
• RDBs expressed a need to know  and be briefed  on what is going on in WTO negotiations.  This
will effectively inform the support, TA and CB that RDBs can offer at the regional level.
• RDBs, World Bank and WTO together  should demonstrate cooperation.  This will enable
leveraged  resources for some agencies whose trade-related TA envelopes are shrinking .
Therefore, RDBs, the World Bank and the WTO must demonstrate more coherent country
strategies.
• The necessity and value of diagnostic trade integration studies that lay a basis for effective
capacity building.  Need to pursue trade diagnostic collaboratively.
• The database is very critical in order to cover gaps, achieve transparency, and common
approaches to building capacity at the local level.
• Necessity of collaborating effectively in convening meetings of trade and finance ministers.
• Although there should be priority focus on LDCs, it needs to be recognized that there are non-
LDC low income economies in dire need.  If we do not take account of this, we would be creating
a more unjust world.
• Massive institutional problems at the domestic level for developing countries, particularly in
Africa in managing trade negotiations.  Assistance needed in this regard.
• Developing countries need to know how to nego tiate positively for growth and poverty reduction
and not defensively.
• The understanding was reached that Regional Development Banks, the World Bank and the WTO
will pursue this dialogue annually, and that the IMF should be invited to the next meeting.
• The Director-General Mike Moore undertook to convey the above understanding to the WTO
Membership and to Dr. Supachai, his successor.WT/COMTD/38
Page 5
ANNEX III
Statements made at the meetings
1. Statement by the WTO Director-General
Background/purpose to the meeting
1. Welcome to Geneva.  Thank you for agreeing to participate in this meeting.  I thought that we
should meet for four specific purposes, namely, to:
(i) review  with you the unprecedented mandate and common challenge that face
the WTO, Regional Development Banks, and other economic, development,
and financial institutions, arising from Doha;
(ii) explore  and identify  with you the concrete roles that Regional Development
Banks could play in the implementation of the Doha Development Agenda;
(iii) share with you and seek your support for a proposal to expand our WTO
Trade Policy Courses in association with developing country universities.
Your support for this proposal with scholarship funding can make a bigdifference to making this happen.
(iv) propose  that we consider establishing an annual dialogue amongst our
various Secretariats and ensure periodic consultations between the WTO and
Regional Development Banks for the implementation of the Doha
Development Agenda.  I believe that this  is long overdue.  Furthermore, ourMembers consider that the WTO should establish a predictable and firm
relationship with regional development banks to assist Members on various
concrete areas.
2. But lets start by reminding ourselves from a WTO perspective what technical cooperation is
not.  We need to be absolutely clear about the limits of what the WTO can do and cannot do withregard to the Doha Development Agenda.  It is not for us to tell countries and companies to make T-
shirts or shoes, build airports or seaports.  It is true over 10 per cent of our budget goes to the
International Trade Centre which exists to help businesses navigate through agreements and rules to
get products to markets, and they do an excellent job. That's their core business.  Other organizations
can help with physical infrastructure; that's their core business. We can and do cooperate with other
agencies.  But we must stick to our core business which is trade liberalisation, the Doha Development
Agenda and bringing down barriers to trade so that people everywhere can benefit.
Scope of the Doha mandates
3. The Doha Ministerial Conference established an unprecedented mandate for the international
community on trade and development.  The Doha Ministerial Declaration was not simply an isolated
Declaration by Trade Ministers.  At Doha, the enti re international community was focused.  It set a
far-reaching agenda for new trade negotiations.  New specific commitments were undertaken on trade
and development.  This agenda clearly also encompassed all multilateral and regional economic,
development, and financial institutions.
4. The scope of the Doha Development Agenda is extensive and far-reaching.  Negotiations
were initiated in several areas including agriculture, services, market access for non-agriculturalWT/COMTD/38
Page 6
products, TRIPS, Rules, the Dispute Settlement Understanding, clarifying and improving anti-
dumping procedures and Trade and the Environment.  There are also outstanding implementation
issues in existing Agreements that still require negotiations.
5. At the same time, preparatory work is underway on new issues, including trade and
investment, trade and competition, transparency in government procurement and trade facilitation.All these issues are critical areas of reform for any economy, whether developing or developed.  Trade
liberalisation in these areas offer opportunities for better allocation of resources and thus for economic
growth.
6. Important, as well, is the keen desire of developing and least-developed countries to be
assisted to undertake necessary domestic policy reforms and stimulate appropriate supply-side
responses that will enable them to draw on the benefits of the open, rules-based trading system.
7. I believe that the WTO and Regional Development Banks could and should work together in
coordination to assist Members and Observers in several areas, including:
- areas of negotiations;
- areas where preparatory work is underway;
- areas of domestic policy reforms;
- supply-side responses; and
- support for the expansion of WTO Trade Policy Courses in association with
developing country universities with scholarship funding.
8. These areas provide scope for the coordinated intervention of Regional Development Banks,
the World Bank, and the WTO.  Technical cooperation and capacity building constitute a core
element of the Doha Development Agenda.  They are essential for developing countries to participatemeaningfully in the trading system and in the negotiations.  Joint and coordinated delivery of
technical cooperation and capacity building needs to form a key component of our work and our
partnership.
Partnerships
9. Well defined partnerships with other institutions are key to implementation of the Doha
Development Agenda.
10. I would like to inform you that since Doha, I have met with the Heads of the six agencies
responsible for the Integrated Framework - the IMF, ITC, UNCTAD, UNDP, the World Bank, at a
meeting hosted by Mr. Jim Wolfensohn, on 26 February.  We agreed to make use of the good
practices of coordination and coherence that we are establishing in the context of the IF, in responding
to the Doha challenges.   I hope Geneva-based agencies can meet to audit progress later in the month.
11. Furthermore, the WTO and the IF agencies convened a meeting with bilateral donors within
the framework of the Development Assistance Committee at the OECD, to improve coordination
between the trade and development communities and, between agency and country providers of
technical assistance.WT/COMTD/38
Page 7
The role of regional development banks
12. May I offer some personal remarks on the role I see for Regional Development Banks.  The
scope for the participation and contributions by Regional Development Banks in the implementation
of the Doha Development Agenda go far beyond joint delivery of technical cooperation with the
WTO.  Your work needs to ensure the complementarity and coherence of regional integrationprocesses with the multilateral trading system.
13. Regional Development Banks, together with the Bretton Woods institutions, have actively
supported the process of structural reforms in developing countries.  Key elements of these reforms
have included trade liberalisation and regional integration.  The Regional Development Banks, which
are here today, in particular, have embraced trade and integration issues as one of the objectives for
the promotion of economic growth and poverty reduction in their respective regions.  Let me pay
tribute to your institutions for the key role that you have played.  Your work has provided momentumfor trade liberalisation and development, and thus has contributed to our common objectives.  The
essential purpose for this meeting is to explore with you the role Regional Development Banks should
play in supporting developing countries in the current trade negotiations, assisting them with
implementation, and providing them with necessary support to benefit from the open trading system.
Let me suggest several possibilities for your consideration.
14. I believe that key areas of collaborative work between the Regional Development Banks and
the WTO could encompass trade mainstreaming, implementation and trade-related project-based
assistance that will enable developing and least-developed countries to draw on the benefits of the
open trading system, and training.  WTO Members have requested the explicit involvement of
Regional Development Banks in the implementation of the Doha Development Agenda.  Thispartnership that the WTO seeks with Regional Development Banks constitutes one of the seven pillars
of the WTO response to the Doha technical cooperation and capacity building mandates.
15. I would like to suggest eight areas where Regional Development Banks could work together
with the WTO Secretariat - areas where we could achieve clear-cut synergies.  They are as follows:
• First, A Strategic Partnership:  I believe that we should agree to establish a partnership for trade
and development.  This partnership will necessarily be work in progress.  We will need to identify
key aspects of our trade and development relations and pursue them within the framework agreed
by all countries at Doha.  I suggest that we establish at least annual policy dialogues at the level of
Heads of Institutions, and regular periodic consultations at the level of officials for the
implementation of the Doha Development Agenda.   I  welcome your views and advice on
developing our partnership;
• Second, Trade and Finance Ministers Policy Dialogues : Regional Development Banks possess
great value-added in promoting policy dialog ues among trade, finance and development
communities in their respective regions.  For instance, President Iglesias convened a meeting of
trade and finance ministers of Latin America and the Caribbean in late February, where I was
kindly invited  to exchange views on "Capacity Building in the Face of the Emerging Challenges
of Doha and the FTAA".  I was impressed by the quality of discussion on how the capacity
building needs of the region could be met.  I was grateful to President Iglesias for his offer of help
to those countries in his region by providing not only grant support, but also soft loans to financetrade-related projects.  I would be grateful if the development banks in other regions could bring
together their trade and finance ministers in similar policy dialogues, including the WTO of
course.  Such dialogues could foster the consistency and complementarity of trade liberalisation
and reforms at different levels.WT/COMTD/38
Page 8
• Third, Trade mainstreaming:  An area of comparative advantage for the Regional Development
Banks is to ensure that trade priority areas of action are mainstreamed (distinctly reflected) intonational development strategies and the Poverty Reduction Strategy Papers (PRSPs) of countries
in your region.  While trade is an engine for economic growth and can contribute to poverty
reduction, the gains from trade cannot be realised unless trade policy and trade-related technical
assistance are appropriately factored into the national planning frameworks.  The support formainstreaming trade is one of the key objectives of the WTO Secretariat's TA Plan, as well as that
of the Integrated Framework.  I seek your support in assisting countries in their mainstreaming
efforts through your regional and country assistance programmes;
• Fourth, Lending Facilities and Grant Funding for Trade-Related Projects:   The demand
from WTO developing and least-developed country Members and Observers for trade-related
technical assistance and capacity building projects far exceed what the WTO can supply on the
basis of the grant resources available to the WTO.  I believe that it would be essential for those
Members and Observers in your regions to be able to borrow - to draw upon financial resources inyour facilities - to address specific priority need s such as for meeting the cost of domestic reform,
for addressing supply-side challenges, for meeting the cost of negotiations, and for implementing
the cost of their WTO commitments.  All these will  make it possible for them to then draw on the
benefits of the open, rules-based trading system. If I may draw on two examples:
- the Inter-American Development Bank: the IDB, for instance, has the Trade
Sector Facility , which provides soft loans for specific activities which are
intended to facilitate the implementation of trade agreements, including
through institutional diagnostic studies, training of technical staff and
negotiators, installation of computerised systems, and programmes to develop
and diversify trade; and,
- the Arab Trade Finance Programme provides a regional trade financing
scheme to assist members of the Arab Monetary Fund in financing regional
trade.  These lending facilities undoubtedly contribute to the expansion of
trade, both at the regional and global levels.
• Fifth, Technical assistance, training and capacity building: Technical assistance and training
are core WTO activities that contribute to the implementation of the Doha Development Agenda.
It is my hope that our institutions will agree to activities in these two areas which are coordinated
and jointly delivered.  For instance, I am pleased to report that we have agreed to a set of activities
with the Inter-American Development Bank.  Next month, the Economic Commission for Africa,
African Development Bank and the WTO will begin the delivery of the first-ever joint trade
policy courses for Africa. Let me also share with you our proposal for the expansion our WTOTrade Policy Courses in association with developing country universities. This new trade policy
training initiative is designed to fill a gap in the market: the development of a local infrastructure
of training and research geared towards regional concerns, realities and priorities.  The new
courses would involve a transfer of ownership and this is capacity building in a very real sense.
Our short term plan is to run two initial trade policy courses in Africa in coordination with
universities in Casablanca for French-speaking,  and Nairobi for English-speaking participants.
Our longer term vision is to see this model, if it works,  replicated in other regions in addition tothese two, with scholarship funding being provided from a variety of sources:  from foundations;
from national governments; and from business.   My suggestion here is for your special support to
help start these courses with scholarship funding.  Let me add that  countries are often engaged in
several trade negotiations - sometimes overlapping - at regional, plurilateral and multilateral
levels.  Given the weaknesses in their trade policy institutions and research facilities, developingcountries often require support to evaluate different scenarios or impacts associated with reforms,
the coordination of efforts with the involvement of the private sector, and the assessment of theWT/COMTD/38
Page 9
costs and benefits of adjustment in trade policy.  In our initial consultations with a number of
developing countries, they have expressed the desire to see the greater involvement of Regional
Development Banks in providing policy advice, which would be consistent and complementary to
the national and regional development objectives.  I believe that the Regional Development Banks
can assist in this regard by supporting trade and finance ministers in establishing andstrengthening national negotiating teams.   I hope that we can work together in this area as well;
• Sixth, the Doha Development Agenda Trade-Related Technical Assistance and Capacity-
Building Database:  Achieving coordination and coherence amongst agency and country
providers of trade-related technical assistance remains a big challenge. Realistically, the demand
for trade-related technical assistance will always be greater than the supply, because needs are
infinite.  Therefore, there is a clear need to ensure efficiency and effectiveness in TA delivery.  As
one of the ways to address this challenge, the WTO, with the support of the DAC/OECD, is
currently developing a Doha Development Agenda Trade-Related Technical Assistance andCapacity Building Database, based on country files.  This database will contain trade-related
technical assistance and capacity building activities, reported on the basis of agreed categories .
The purpose of the database is to improve coherence and coordination, maximise available
resources, and minimize duplication.  It will also act as a transparency mechanism in the exchange
and sharing of information, holding all of us – both providers and recipients - accountable.  Thefirst product, which is expected to be available in October, won't be perfect, but this will provide a
starting point.  This initiative has already received strong endorsement from the IF Heads of
Agency.  I would also like to request your institutions, important providers of trade-related
technical assistance in your respective regions, to agree to report into the agreed categories in this
database.  What will need to be reported are TRTA and CB activities that you currently deliver.  Iwould be grateful if focal points can be established in your Banks for this purpose;
• Seventh, Integrated Framework Partners:   As you already know, there is an Integrated
Framework amongst six core agencies: IMF, ITC, UNCTAD, UNDP, World Bank, and the WTO.
This IF, focused on the least-developed countries and non-LDC low income countries, has
provided a strong platform of cooperation for mainstreaming trade priorities into their PRSPs and
for the delivery of trade-related technica l assistance in a policy coherent framework .  When the
IF Heads of Agency met on 26 February, this year, in Washington, we explicitly agreed to seek
the involvement of regional development banks in the implementation of the IF, as well as in the
implementation of the Doha Development Agenda and beyond.  While it took a while for the IF to
start functioning, I believe that it is the only mechanism which makes sense in addressing the
complex trade and development concerns of LDCs and other low-income countries in a coherentmanner.  The value of the IF was recognised and re-endorsed by Ministers at Doha, and also by
the development community located in the Development Assistance Committee of the OECD.
Regional Development Banks are natural contributors to the IF process.  We have already
established working relationships with some of you in the field.  The scope for your intervention
in the IF process is in the follow-up  to the diagnostic trade integration studies (DTIS).  The DTIS
identify the constraints and competitive weaknesses that countries face in participating in
international trade.  The follow-up is to respond to the recommendations from the DTIS forpriority TA and policy reform for overcoming th e constraints. I would like to propose that your
Banks be invited to a meeting of the Inter-Agency Working Group (essentially composed of the
six core agencies).  The Inter-agency Working Group is responsible for the day-to-day operation
of the IF.  At such a meeting, at which your representatives will participate, I suggest that
discussions take place to explore how Regional Development Banks will be involved in not onlystrengthening coordination and coherence between multilateral and regional players in the field,
but also in implementing the recommendations of the DTIS.  This suggestion is in accordance
with what the Heads of the core multilatera l economic institutions agreed at the February
Meeting, which is in a Joint Communiqué, before you today;WT/COMTD/38
Page 10
• Finally, Follow-Up - Periodic Consultations :  As I mentioned earlier, it is my hope that this
partnership could proceed with annual policy dialogues at the level of an Heads of institutions,with officials meeting at perhaps six-month interv al.  I would hope that this would not be a one-
off meeting.  I hope to see this dialogue continued and enhanced.  I believe that periodic
consultations, on a rotating basis, could be considered to keep all of us fully engaged in the Doha
process, and ensure the explicit and constant involvement of Regional Development Banks andthe World Bank in the work of the multilateral tr ading system and the work of the WTO.  [If such
idea is agreeable to you, I would pass this message to my successor, Dr. Supachai, who I am sure
will share  the value of this partnership].  I am hopeful that the results of our consultations would
be reported to WTO Members and Observers, at the appropriate body, and under appropriate
agenda items.
16. This is why I have convened this meeting with you today.  In this meeting, I hope that we can
exchange views on how best we could work together in light of the momentum that has been createdby Doha, but also in light of developments that trade and integration issues dominate discussions in all
regions of the world today.  In particular, it is my hope that we can identify areas of commonality and
cooperation in responding the challenges and priority needs of developing countries in trade and
development.  May I invite you to offer your views on the issues I have suggested or any other.
2. Statement by Mr. Enrique V. lgiesias, President, Inter-American Development Bank
1. Trade Liberalization has been one of the central pillars of Latin America and the Caribbean's
structural reform process. This has been pursued at three levels. The first level has been unilateral
liberalization, which saw average tariffs come down from over 40 percent in the mid-1980s to around
13 percent by the mid1990s; a halving of the region's average maximum tariffs, and a reduction of
average tariff dispersion from 30 percent to 9 percent.
2. The second level was the multilateral trading system. Today all but one Bank borrowing
country is a member of the WTO. Our countries actively participated in the Uruguay Round and
assumed its very comprehensive disciplines. This imp lied substantial elimination of trade barriers and
a binding of virtually all tariff lines, compared to  somewhat more than 30 percent prior to the Round.
Meanwhile, our countries' participation in the Doha Development Agenda aims to further deepenmultilateral commitments.
3. The third level has been regional integration. Our countries have embarked on ambitious
subregional integration initiatives, bilateral accords and commercial integration with industrialized
countries -something that would have been politically inconceivable as late as the late-1980s. These
agreements have reciprocally liberalized :substanti ally all trade in goods, while in the case of NAFTA
and other so-called "second generation" integration initiatives, Latin American countries have
assumed other WTO + disciplines. Moreover, some new and very large regional and interregional
trade agreements are on the horizon: a Free Trade Area of the Americas (FTAA) scheduled for 2005,
EU negotiations for reciprocal free trade with Merc osur and Chile, and possibly Caricom, and the
APEC process.
4. The existing and emerging trade-related obligations are inducing, indeed oblige, important
institutional reforms. These come directly from the challenges of effective negotiation andimplementation of the disciplines emerging from the trade agreements themselves and from spillovers
arising from increased competition.
5. In this regard, the immediate challenges of negotiation and implementation are daunting. We
must remember good and sustainable trade agreements with positive development impacts demand
good negotiations and implementation. However, most of our trade-related ministries have seriousshortcomings in terms of their preparation for effective negotiations and the introduction ofWT/COMTD/38
Page 11
institutional changes, with accompanying budgetary costs, associated with implementation of
agreements at home and monitoring rights in partner markets abroad. This problem is especially acute
in the multilateral system and in North-South free trade agreements where market opening is very
significant, the disciplines are extremely complex, and the institutional capacities very uneven
between developed and developing countries.
6. At the center of all these initiatives is the WTO and the Doha Development Agenda.
Deepening our multilateral system is a sine qua non for the development of our region as this will
help ensure that our insertion into the world economy is governed by a rules-based system, which is
of particular interest to the world's smaller markets like those of developing countries. But a vibrant
multilateral system is also important for regionalism since it provides for basic rules and establishes a
minimum floor on which regional commitments can deepen. Also, there are many overlapping
agendas between the regional processes and the WTO negotiations, providing for positive synergiesbetween the two.
7. I was fortunate to have had a role in the emergence of the Uruguay Round, which
dramatically deepened and widened the scope of our multilateral system. The Doha Development
Agenda -for which I want to especially congratulate Mike Moore and his Secretariat Staff, since their
intense work helped make this possible- promises to significantly build on this progress. And I amparticularly grateful for the emphasis on Capacity Building which will help overcome some of the
shortcomings that developing countries confronted in the Uruguay Round.
8. The Capacity Building being developed by the WTO Secretariat is a cross-cutting issue in the
broad sense of the term. Of course it will attend to the needs of the Doha Development Agenda. But
given overlapping agendas and synergies among different trade negotiations, the Capacity Buildingthat is being promoted by the Doha Development Agenda will serve a much more far-reaching
purpose.
9. The Inter-American Development Bank has trade Capacity Building at the core of its support
for structural reforms and preparation for globalization. Over the last few years we have substantially
reinforced our support of trade in various ways. Some of the cornerstones of the program are: (i)
provision of technical support to the FTAA negotiations in conjunction with our Tripartite Committee
associates, the OAS and ECLAC; (ii) the establishment of a Special Trade Facility for fast approval of
loans to support wholesale modernization of trade-related ministries; (iii) technical cooperation in the
area of Customs; (iv) a Special Initiative to support policy debate and outreach on trade liberalization
at all of the 3 levels mentioned above and (v) development of closer cooperation with the WTO
Secretariat.
10. We have felt that Regional Banks like the Inter-American Development Bank can be of great
assistance to our member countries by actively collaborating with the WTO Secretariat in Capacity
Building. Regional Banks like ours specialize in developing close relationships with countries in a
confined geographic area and its subregions, where there are many common problems and approaches
to trade and development. We think this specialization can permit Regional Banks to very effectively
assist the WTO Secretariat in tailoring Capacity Building to the heterogeneous needs of a multilateralsystem with more than 140 member countries.
11. I am glad to say that our collaboration with the WTO Secretariat began a few years ago by
supporting WTO training courses in Latin America and the Caribbean through the Bank's Institute for
the Integration of Latin America and the Caribbean (INTAL). This collaboration has steadily
expanded, and has been especially encouraged by my friend Mike Moore, who has fully captured thepotential advantages of collaborating with Regional Banks.WT/COMTD/38
Page 12
12. The high point of this collaboration is our WTO-IDB Memorandum of Understanding (MOU)
Which, as seen in Annex 1, is truly comprehensive, ranging from support of training courses and
workshops, to support of Trade Policy Reviews (TPRs) and even collaboration in research and
support of accession processes. Our Integrat ion and Regional Programs Department, which
specializes in trade issues, will be the principal liaison with the Secretariat.
13. And I want to stress that our MOU already has content. Our Institute for Integration of Latin
America and the Caribbean has already agreed to support a comprehensive series of training courses
in the region in 2002, many organized by subreg ion and in collaboration with subregional
development banks. Programs financed by our Trade Loan Facility and Technical Cooperation are
helping to strengthen our borrowing countries' TPRs. Our Integration and Regional Programs
Department is also actively exploring areas of collaboration with the Secretariat's research group.  And
that Department's Statistic Unit is nearing completion of joint development of a Negotiator's Tool Kitwhich will greatly aid negotiators in the Doha Development Agenda and other trade initiatives.
14. In sum, I want to stress the great importance of the Doha Development Agenda and the its
Capacity Building component for a successful participation of our countries in the multilateral system
and a globalizing world economy. Mike Moore's l eadership and vision has been instrumental in
bringing a new regional approach to Capacity Building through collaboration with Regional Banks. iam happy the Inter-American Development Bank ha s helped lead the way and hope that my sister
institutions in other regions will join us in this extremely important initiative.
3. Statement by Dr. Jassim AI-Mannai, Director-General, Director-General, Arab
Monetary Fund
1. I am grateful to Director General Mike Moore for inviting me to this gathering to address
cooperation between regional development banks and the WTO in responding to capacity-buildingneeds of the Doha Development Agenda.
2. To begin with, it is my pleasure to report to you that I signed today with Director General
Mike Moore a memorandum of understanding, under which the WTO Secretariat and the Arab
Monetary Fund (AMF) will step up their joint ef forts to provide technical assistance on trade
negotiations and capacity building to Arab countries in the Middle East and North Africa, in responseto their priority needs for an enhanced participat ion in the implementation of the Doha Development
Agenda.
3. My presentation today is threefold. First, I will start with a brief introduction of the Arab
Monetary Fund and highlight the role it has played in support of its members to promote both
economic growth and efficient regional integration. Afterwards, I seize this opportunity to describe
the priority needs of Arab countries to particip ate meaningfully in the realization of the Doha
Development Agenda and how the AMF is responding to these needs. Finally, I will present my views
on the central role of regional development banks and funds in supporting the WTO delivery of trade-
related technical assistance following the Doha Development Agenda.
What is the Arab Monetary Fund (AMF)?
4. The AMF is a regional inter-governmental financial organization that was established by 21
Arab countries in 1976, and has a paid up capital of 1.3 billion dollars. The AMF's top-level
decision-making body is the Board of Governors that are Arab ministers of finance or heads of central
banks. Over the years, the Board of Governors has assigned the AMF a variety of duties appropriate
to the changing needs of its members in prom oting economic growth and regional integration. At
present, the membership has charged the AMF with fi ve main activities, that are, lending to membersWT/COMTD/38
Page 13
to implement economic reforms, regional trade promotion, policy advice, training and acting as a
regional forum to promote regional financial cooperation.
5. First, the AMF has been assisting its member countries facing balance of payments
difficulties and macroeconomic unbalances through loans tied to the member's commitment to
undertake a series of reforms that will eradicate the source of payments difficulty and prepare theground for economic growth. As member countries moved toward implementing structural and
sectoral reforms to improve the efficiency of resources allocation and promote growth, the AMF
expanded its lending activities to establishing a new facility to support members' reform of financial
and banking sector and public finance. Between 1980 and the end of 2001, the AMF lent about 3.3
billion dollars in support of economic reform programs in twelve member countries.
6. Second, the AMF has been in charge of promoting and financing trade among Arab countries,
thereby enhancing the productivity and competitiveness of Arab producers. In this respect, the AMFestablished in 1989 the Arab Trade Finance Program (ATFP), a joint subsidiary organ with other Arab
financial institutions to assist in financing regional trade. The AMF contributes more than half of the
ATFP capital of 500 million dollars.
7. Also, the Arab Trade Finance Program has played an important role through its database on a
wide range of trade-related information, agreements and rules to help regional traders, investors, andbusinessmen get their products to markets. I should mention here that this database (IATIN) is a
collaborative effort with the UNDP and the International Trade Center (ITC). IATIN has its central
core at ATFP headquarters in Abu Dhabi and its focal points at chambers of commerce and export
promotion centers throughout Arab countries. These focal points are important sources of feeding the
necessary and timely information on national market access regulations and trade opportunities.
8. Third, in addition to providing financial support to member countries, the AMF' other
activities have advanced along the twin themes of  capacity building that are, policy advice and
training. In policy advice, the AMF has been holding consultations in the member countries and
providing advice and expertise for the design and implementation of financial sector reform programs.
Such advice activities also extend to capital markets development. In this regard, the AMF hasassisted member countries strengthen their stock markets through dissemination of information on the
activities of these emerging markets and the development of a composite index on these markets as an
analytical tool in evaluating their regional performance.
9. Fourth, as far as training is concerned, the AMF has provided specialized training in
economic analysis and policy related subjects for officials of member countries through its Institute of
Economic Policy that was established in 1989. From 1989 to 2001, more than 2898 officials from the
21 Arab member countries had participated in Institute courses and seminars.
10. As regional demand for training increased, the AMF undertook a collaborative effort with the
International Monetary Fund and set up the Joint Re gional Training Program( RTP) to make training
more accessible to officials of Arab members from the Middle East and North Africa region. Last but
not least, the AMF acts as a forum for Arab central bankers to discuss and coordinate banking
regulations and promote regional financial cooperation. In this capacity, the AMF hosts the secretariatof the Council of Governors of Arab Central Banks and the Committee of Arab Banking Supervisors.
The latter serves as a technical body to exchange information and experiences on the implementation
of the Basle Core Principles to promote effective banking supervision.WT/COMTD/38
Page 14
Priority Needs and Interest of Arab Countries in the Realization of the Doha Development
Agenda
11. I would now like to turn to the priority needs and interests of Arab countries to participate
meaningfully in the realization of the Doha Deve lopment Agenda. The successful Fourth Ministerial
Conference held in Doha in November 2001 places development issues and interest of developing
countries and the least developed among them at the heart of the new round of trade negotiations and
the WTO work program. This is a historic response to the real concerns of developing countries, that
their meaningful integration in to the multilateral trading system and the global economy can be
realized only when they are able to negotiate in  their own best interests, stimulate supply-side
responses to improved market access opportunities, diversify their production and export base, and
enhance their trade-supporting institutions.
12. For Arab countries as for the rest of developing countries that have gone through trade
reforms and liberalization, the development needs for their meaningful participation in the multilateral
trading system entail two priority areas of action, that are, market access and technical assistance. The
WTO members have set both core elements as commitments in the Doha Ministerial Declaration, and
therefore, market access and technical assistance are no substitutes. First, markets need to be open inall members, so as to ensure that developing countries, and especially the least developed among
them, secure a share in the growth of world trade commensurate with the needs of their economic
development.
13. Second, trade-related technical assistance and capacity building are necessary to enable
beneficiary countries to implement WTO rules and obligations and participate more effectively in thework of the WTO, including the future round of negotiations, as well as to enable them to derive
maximum benefits from it.
The AMF Responding to the Needs of its Member Countries
14. In Accordance with its mandates and expertise, the AMF has stepped up its efforts to cater to
the WTO-related capacity building needs of its Arab member countries. Trade-related activities are
being pursued at three levels. First, assisting na tional capacity building as a proven way to sustain
good trade policy. Second, strengthening the regional focus of trade capacity building initiatives. And
third, cooperating with the WTO Secretariat in conduc ting joint activities to assist the Arab countries.
Regarding the AMF trade-related technical assistance and capacity building at the national level,
greater efforts have been exerted to enhance domestic analytical capacity to support the full
participation of AMF members in WTO work and negotiations. In this respect, the AMF is providingtechnical assistance and policy advice through country missions, that put emphasis not only on the
implementation of the WTO agreements but also on how to derive maximum benefit for the national
economy from the participation in the multilateral trading system. As far as building regional
trade-related capacity is concerned, the AMF intends to organize specialized training and outreach
activities on integration and Doha negotiating issues. This will target not only officials andnegotiators, but also civil society and the business community in member countries.
15. Finally, the Memorandum of Understanding signed today between the WTO Secretariat and
the AMF ushers in a new era of institutional cooperation in the joint delivery of training for trade
officials in the Arab countries as well as in the Geneva based missions of Arab delegations.
Cooperation will extend to regional and sub-regional workshops and meetings, training courses, andcapacity building of Arab trade negotiators. We beli eve that such joint efforts would help the WTO
and the AMF in establishing a sustainable capacity in training for trade that is timely needed to help
Arab countries seize the opportunities that the new round of trade negotiations provides.WT/COMTD/38
Page 15
Developing Partnership between Regional Development Banks and the WTO
16. I have spoken about my organization's responses to the challenges to the Doha Development
Agenda that I believe should be linked to the overall strategic partnerships and coherence that the
WTO has been pursuing. In fact, since the Doha Ministerial Conference, the WTO and themultilateral cooperation have already acted decisively. First, WTO members increased the Secretariat
budget and created a successful ne w Global Trust Fund for technical assistance, which was launched
last month. Second, the development community has joined efforts in supporting the WTO initiatives
through forming twofold partnerships.
17. There is the inter-agency partnership that established the Integrated Framework for
Trade-Related Technical Assistance to the Least-Developed Countries. Such a partnership has been
recognized by the Doha Ministerial Declaration as an effective mechanism for mainstreaming tradeinto national development plans and strategies for poverty reduction as well as a mechanism for the
delivery of trade-related technical assistance. The other strategic partnership has been the WTO
initiative to create regional pillars through cooperation with regional banks, funds and institutions in
providing effective trade-related technical assistance for the implementation of the Doha mandates.
And the presence of Heads of regional banks and funds here today is an indication of our readiness tojoin in efforts to assist the meaningful integrat ion of our member countries into the multilateral
trading system and the global economy.
The Role of Regional Banks and Funds in Responding to Capacity-Building Needs of the Doha
Development Agenda
18. I believe there is a pivotal role that regional development banks and funds can perform in
providing technical assistance within the development dimensions mandated by the Doha Ministerial
Declaration.
19. First, it goes without saying that regional development banks and funds have begun the
process of supporting development in their respective member countries, long while ago. Though ourcore business may differ, I believe that our ultimate goal is to support reforms in favor of market
oriented policies to improve the efficiency of resource allocation and promote growth within an
appropriate macroeconomic framework. Therefore, regional banks and funds may have a lead role in
supporting trade reform process under the WTO.
20. Second, there are certain similarities in the role that regional banks and funds have played in
supporting stabilization and structural reform programs and the necessary requirements for the
accession and implementation of WTO Agreements. It has been known that implementation of theWTO Agreements requires domestic trade reforms that encompass domestic regulatory reform, and
coherent macroeconomic and trade policies. Moreover, the set of reforms needed for the
implementation of WTO Agreements requires training and financing. The World Bank estimated that
the costs involved amount to something equivalent to an entire year's development budget in many
least-developed countries. Therefore, regional banks and funds are well placed to respond to theseneeds in accordance with our mandate and expertise.
21. I hope that this presentation serves the purpose for which it was intended and that it will make
a useful contribution to our debate.
4. Statement by Mr. Bisi Ogunjobi, Vice-President Operations, African Development Bank
Regional and Multilateral Perspectives on Capaci ty Building Pursuant to the Doha Development
AgendaWT/COMTD/38
Page 16
1. We, in the African Development Bank, are happy to be part of this historic process of
consultations between the WTO and the regional development banks on how to advance the global
trade agenda in the interest of developing countries.  In my statement today, I would like to make a
few introductory remarks on the Doha Development Agenda, and then highlight, briefly, the reasons
behind the inability of the African continent to take advantage of increased liberalization under theWTO system. I will then examine the need for technical assistance and capacity building in our
regional member countries and the type of assistance we, in the African Development Bank, can
provide towards enhancing the capacity of our regional member countries so as to increase and sustain
their participation in global trade. We believe that whatever assistance we provide should derive from
our comparative advantage, and complement the efforts of our development partners.
The Doha Development Agenda
2. The Doha Development Agenda, which was endorsed at the Fourth Ministerial Meeting of the
WTO in November last year has not only given a new lease of life to the WTO, but also much hope to
us in the developing world, particularly considering the situation 3 years ago in Seattle. It is thereforeimportant to underscore that the implementation of the Doha Development Agenda is crucial if
developing countries are to fully subscribe to the objectives of the WTO.  We in Africa welcome this
Agenda because it is the first time that most of the trade issues that have direct implications on the
continent's development are now at the center of the WTO work programme. It is in this regard that
the African Development Bank is prepared to dialogue with the WTO to define our specific role thebring the Agenda to fruition for the common good of our regional member states.
The role of trade in development
3. As you are well aware, trade plays a central role in the development process because export
proceeds have a direct bearing on the volume of investment and the growth performance of oureconomies. It is the foreign exchange proceeds from exports that strengthen our capacities to finance
the import of capital goods required for investment and development; and, the imported consumer
goods associated with income growth. This is the logic that lies behind the advocacy to arrest the
decline in Africa's share of world exports, which fell from some 6 percent in 1980 to less than 2
percent today.
Why the decline in Africa's share of global trade?
4. There are two main reasons explaining the decline in Africa's share in global trade.  The first
is the failure of the region to maintain its historic comparative advantage in producing and exporting
several key primary commodities. And the second is the inability of the region to make significant
inroads in the development of alternative products, such as manufacturers and niche products, for
which exists strong and growing international dema nd.  It is for these two reasons that many African
countries have not be able to benefit much from the large trade gains emanating from increased
liberalization under the WTO system. Studies ha ve shown that the gains from world market
liberalization are more likely to accrue to countries that have created comparative advantage in
labour-intensive manufactured exports, and not primary goods exports on which many African
countries are dependent. Also, the experience with preferential market access arrangements, such asthe Lomé Convention and the Generalized System of Preferences has shown that low-income
countries in Africa have not been able to take advantage of such schemes mainly because of
supply-side constraints.  That is, structural and institutional weaknesses that are pervasive in our
regional member countries.WT/COMTD/38
Page 17
Technical Assistance and Capacity Building
5. To take advantage of increased market access under the WTO system, African countries, first
and foremost, need to understand fully what their rights and obligations are under the multilateral
trading system, what opportunities it offers them and how these could be fully utilized.  In addition,these countries require large investments in trade-cr eating and trade-facilitating infrastructure such as
telecommunications and transportation, as well as in trade-related public institutions, such as
improved customs and tax administration and adequate export promotion and export servicing
organizations.  More importantly, large investments are also required to assist these countries in
developing an enabling macroeconomic environment that would attract investment both domestic and
foreign and promote the development of the private sector - the main producer and trader of goods
and services. Low-income African countries will, thus, continue to require "aid for trade" tostrengthen export capacity and support investments needed for self-sustaining development.  It is
these perequisites that should define the areas of collaboration and co-operation between the WTO
and the African Development Bank Group.
6. We are aware that the WTO Secretariat has made significant strides in improving technical
assistance to developing countries to enable them cope with implementation of its Agreements, and incontributing to the capacity building in developing countries in order to enable them to reap the
benefits of the multilateral trading system.  Of particular importance in this regard are
specially-designed programmes such as the Integrated Framework for trade and trade-related technical
assistance needs for the least developed countries, and the Joint Integrated Technical Assistance
Programme (JITAP).  The technical assistance needs of developing countries are, however, enormous,and could hardly be met effectively by the resources and expertise of the WTO alone. This calls for
effective partnerships between it and other institutions such as ours, particularly for the
implementation of the Doha Development Agenda.
What role for the African Development Bank Group?
7. I would like to stress at this point that the main objectives of collaboration between us and
WTO should be to enhance understanding of the multilateral trading system, as embodied in the WTO
Agreements, by the Officials in our region who are engaged in development generally and specifically
in the development of trade, including trade negotiations; and by the private sector.  The second
objective should be to address the structural and institutional weaknesses to enable our countries
increase and sustain their participation in internatio nal trade. Two important considerations in such a
collaboration should be "value-added" and "cost-effectiveness" of proposed activities within the
framework of our respective comparative advantages.
8. I would like to give three examples of capacity building activities that we might be willing to
support. First, is a special course designed for selected parliamentarians and politicians; and for the
private sector. This is particularly important because, first, legislation for the implementation of some
WTO agreements have to be passed by parliament. Second, there is the need to underscore goodgovernance and transparency in promoting sustaina ble development through trade. The course for the
private sector could focus on developing its export competitiveness and how it could utilize the export
opportunities entailed in the WTO. Initially participants for this course could be drawn from the
National Chambers of Commerce and recognized Manufacturer's and Exporter's Associations. The
African Business Roundtable (ABR) could be a cooperating partner in the programme.
9. Finally, the Bank could serve as a depository for WTO publications and trade literature, and
IT project on the use of information technology tool s in promoting trade. This will not only facilitate
access of staff and African Officials to such materials/technology, but also provide reference material
to universities, students, and the general public to which access could be granted under special
conditions to be approved by management.WT/COMTD/38
Page 18
Policy-based lending, project lending and technical assistance
10. In our more traditional areas of lending, and in consonance with our Vision, we will continue
to mainstream trade and trade related issues in our Country Strategy Papers (CSPs), which delineate
the Bank's medium term assistance strategy for each regional member country. This is important in
view of the central role that trade plays in ec onomic growth, sustainable development and ultimately
poverty reduction, which is the overarching objective of our Vision.
11. The Bank supports trade development in its regional member countries via a variety of
programmes and projects. Training activities (such as those using technical assistance grants) address
the institutional and human resource weaknesses of member countries. Policy-based lendingoperations (PBLs) in collaboration with the World Bank and IMF address the loss of competitiveness
in trade and weak institutional frameworks for trade promotion among African countries. They are
also aimed at reforming the trade regime by elim inating the anti-export bias inherent in the policy
stance of member countries; and at diversifying the production base of the economy and promoting
export expansion.
12. Associated Sector Adjustment Loans (SECAL) are focused on programmes in the industrial
import facilitation, export promotion diversification and other institutional support activities.  The
Bank's regular project operations in support of the transport and communication and power
infrastructure have also helped to strengthen the private sector, encouraged regional economic
cooperation and facilitated intra-regional trade and exchange.
13. Similarly, the Bank provides lines of credit to commercial banks and national development
banks.  These lines of credit are used to promot e trade finance and production for export.  Over the
last 5 years, the Bank has provided lines of credit at an average of US$300 million per annum to
commercial banks. As part of our institution buildi ng effort in support of African trade, the Bank was
not only instrumental in establishment of the Afreximbank based in Cairo, Egypt, but also is asignificant share holder Afreximbank which is devoted exclusively to trade finance, export
development and promotion has remained very active in the continent.
14. As part of our support for the implementati on of the Doha Development Agenda, we will
mainstream trade, in a more coordinated and sustained manner, in all our lending and non-lending
programmes.  In particular, the Bank's concessional resources and the Technical Assistance Fundwhich is on grant basis will be useful and active instruments of intervention. In addition, we will
design programmes for staff especially those involved in preparing Policy Based operations and the
Country Assistance Strategy Papers for regional member countries to ensure that they acquire the
requisite knowledge and skills in trade and trade-related issues.  This will help to improve the quality
of advice and assistance provided in the implementation of projects in the regional member countries.
15. In this connection, we look forward to the tripartite training course by WTO/ADB/ECA
scheduled for June 2002 and the follow-up training session to be hosted by the Bank in Abidjanduring the fourth quarter of this year.  Finally, the Memorandum of Understanding between the WTO
and the Bank will certainly go a long way to enhance our cooperation and facilitate the
implementation of the Doha Development Agenda for the benefit of our African members.
5. Statement by Mr. Joseph B. Elchenberge, Vice President, Asian Development Bank
16. I would like to commend the Director-General, Mr. Mike Moore, and colleagues for taking
the initiative to put issue of Regional MDB suppor t for Doha implementation firmly on agenda.  I am
privileged to represent ADB, and ADB President Chino, at this important meeting.
17. I suspect we are gathered here because we agree on some very important fundamentals:WT/COMTD/38
Page 19
• Trade is hugely effective engine of growth and development;
• Substantial unexploited opportunities for DCs on trade front;
• Doha agreement represents major departure from the past by placing new round firmly in the
context of growth and development of the world's poorer countries;
• Doha commitments are unprecedented in their scope and ambition, and because of this we find
ourselves at a moment of unique opportunity and challenge.
18. We are also broadly agreed that success in this endeavour will require major efforts by all of
us::
• Building deeper partnerships among the many inte rnational institutions, between the institutions
and the bilateral providers of development assistance, and between the development assistance
community and the developing countries themselves;
• Elevating the scope and intensity of our trade-related work, and focusing that work on areas
where each of the development partners brings particular capacity and comparative advantage;
• Lodging our work more firmly in coherent, well-focused country strategies that are fully
embraced by international community and developing countries themselves;
• Doing a better job of tracking results, learning from experience, and ensuring that limited
resources are well-coordinated and directed to high impact programs.
19. I believe we are making significant progress in each of these areas, in part because we have a
good body of prior work to build upon. This includes: direct lending support for policy and
institutional reforms; trade financing and trade facilitation investments; providing technical assistance
for capacity building and research.
20. With respect to the latter, and specifically to help ADB's developing member countries
participate fully in the new trade round, I would note the following:
• We are financing a study to identify developing country perspectives on specific Doha-related
negotiating issues;
• We are supporting an APEC initiative to build im plementation capacity in the areas of TRIPS and
customs valuation.
• At our annual meeting next week we will be havi ng what we expect to be a major seminar on
"Implications of the Doha Agenda for Developing Asia," at which WTO will be a majorparticipant.
• Next month we and the OECD will be jointly hosting a "Forum on Services Liberalization."
• In July we will be convening a High-level meeting on WTO issues for Trade Negotiators, at
which the WTO Director -General designate will give the keynote speech.
• And in November we will, in partnership with the World Bank, be engaged in the Fourth Asia
Development Forum, focused specifically on Trade and Development.WT/COMTD/38
Page 20
• In addition, we have a variety of specific operations focused on individual countries or groups of
countries, such as a new Customs Modernization operation for Tajikistan and Kyrgyz Republic.
21. Separately, we will be honored to sign a formal Memorandum of Understanding between the
ADB and the WTO on the occasion of  our Annual Meeting next week.
22. As we move to build further on these steps we will be looking for opportunities to bring two
broad sets of instruments into play.
• At the operational level, we have direct lending instruments, both concessional and
non-concessional, Technical Assistance funded through a variety of channels, and the conveningpower we enjoy as the premier development institution in Asia.
• At the strategic level, we have recently reorganized the Bank around country departments to help
ensure that the full resources of the Bank are brought to bear on supporting country tailoredprograms that are strategically coherent, relevant, and that have the full buy in of the countries
themselves.
• 3-year country strategies are being prepared in close collaboration with other institutions such as
the World Bank. Our intention is to greatly increase the emphasis on using these strategies asinstruments for better coordination among providers of development assistance, both bilateral and
multilateral. And they are a key vehicle to give greater emphasis to trade-related issues and their
development implications.  
• We are deepening our work on public expenditure analysis, which is especially important in the
smaller economies where trade-related revenue issues are relatively more important, such as in thePacific Island economies.  
• And we see great promise in, and are working toward, elevating trade-related issues as part of the
sub-regional cooperation work we are doing in, for example, the Mekong region and Central Asia.
Indeed, sub-regional trade issues had a substantial profile during a recent Ministerial level
meeting on regional cooperation in Central Asia we hosted recently in Manila.
23. Of course, we cannot do any of this effectively on our own.
• We need the full buy in of our developing member countries, including their willingness to
borrow for capacity building and technical assistance whose returns will not be immediate.
• We need the active support of all of our shareholders, including their willingness to provide the
necessary resources.
• And we need close and effective collaboration with a wide range of international organizations,
especially the WTO.
24. Our conversations today have been extremely fruitful, and have laid the basis for what I am
certain will be a continuously deepening and mutually beneficial collaboration.
6. Statement by Mr. Abdul Aziu M. Kelaibi,  Director, Cooperation Office, Islamic
Development Bank
1. On behalf of the Islamic Development Bank (IsDB), I would like to express my sincere
appreciation and gratitude to Mr. Mike Moore, Director General, WTO for his kind invitation to this
important meeting. We believe the pursued objective of this meeting is quite essential for the strategicWT/COMTD/38
Page 21
development of existing partnership among our institutions, and will further enhance our joint efforts
in responding to the priority capacity building needs of our member countries.
2. We are optimistic that with the collaborative cooperation among our institutions and the
WTO, we can complement the efforts exerted to meet the requirements of developing and least
developed countries in trade related capacity building. We hope that this forum serves as a launchingpad for the exchange of views and policy dialogue which will conclude with an effective
comprehensive mechanism that would enable member  governments to reap the benefits of the Doha
Development Agenda.
3. As you are aware, the Islamic Development Bank is an international financial institution, that
started its operations in Oct. 1975, with the objective of fostering the economic development and
social progress of member countries (53). The authorized and subscribed capitals of the IsDB are
US$19 billion and US$ 10.3 billion respectively. The Bank's principle office is based in Jeddah,Kingdom of Saudi Arabia. In addition to that it has opened three regional offices in Rabat (Morocco),
Kuala Lumpur (Malaysia), and Almaty (Kazakhstan).
4. If you allow me I will briefly shed light on some of the financial and operational contributions
of IsDB. The total amount of net approvals for projects and technical assistance financing since the
inception of the Bank has reached US 8.1 billion. Of this amount, project financing has accounted fornearly 98 per cent (US$ 7.9 billion) and technical assistance operations have accounted for the
remaining 2 percent.
5. Meanwhile, the total amount of net approvals of IsDB's trade financing programme
implemented through the different schemes and windows has reached US$ 17.1 billion. The IsDB
continues to provide support for capacity building and infrastructure development to its membercountries, particularly the least developed member countries, in order to facilitate growth, poverty
alleviation and sustainable development and encour age policy dialogue among its member countries
at the regional level on macroeconomic, financial, trade and developmental issues.
6. While the new multilateral trading system as epitomized by WTO has greatly contributed to
the liberalization of the world trade, yet it has placed onerous demands on the limited human andtechnical resources of the developing countries. As a result, many developing countries, including
some IsDB member states, have not been able to integrate their economies into the world trading
system so as to fully partake the benefits of trade liberalization.
7. Keeping in view the urgent needs of its member countries and the recent developments on the
international trade scene, the Islamic Development Bank embarked in 1997 upon an intensive
Technical Assistance Programme to help member countries of the Organization of the Islamic
Conference (OIC) to upgrade th eir institutional and manpower resources and enhance their capacity
building on WTO related matters. Currently of the OIC 57 member countries, 39 are members of the
WTO and 10 countries have observer status and are in the process of accession to the WTO.
8. The IsDB 's WTO-related Technical Assistance Programme covers a wide range of activities
including courses, seminars, workshops, studies, and consultative meetings at the level of experts,
senior trade officials and trade ministers of the OIC member countries in preparation for the WTOMinisterial Meetings, as well as providing country-specific technical assistance.
9. In order to enhance the capacity building of the OIC member countries, IsDB has organized
and co-financed more than 38 courses, seminars and workshops covering a wide range of WTO
issues, in order to familiarize the member countries with the contents and provisions of the Uruguay
Round Agreements and the WTO activities so they could be in a better position to defend theirinterests.WT/COMTD/38
Page 22
10. In collaboration with the World Trade Organization (WTO), the IsDB has so far organized
four short Trade Policy courses with a duration of 3 weeks each.
11. Furthermore, the IsDB has undertaken five majo r sectoral studies on Agriculture, Investment,
Services, Trade-related Aspects of Intellectual Property Rights (TRIPs), and Electronic Commerce.
Each study included a selected set of case studies on 01C member countries and contained valuabletechnical tips and negotiation strategies on the various issues concerning the OIC member countries.
12. In line with the above efforts, the IsDB has signed Memorandums of Understanding (MOU)
with the WTO as well as with other relevant institutions.
13. The IsDB currently participates in two WTO Committees on Trade and Development and
Trade and Environment as an observer.
14. The above efforts of the IsDB, which are aimed at enhancing the participation of its member
countries in international trade, upgrading their competitiveness and enabling them to derivemaximum benefits from the Uruguay Round Agreements, have underscored the need for the IsDB to
be fully abreast of the developments linked to th e WTO related matters. In this respect, IsDB has
applied to have an observer status in the other remaining councils (General Council of the WTO,
Trade in Goods, Trade in Services and TRIPS) and we look forward to your sincere support in that
regard which will further enhance the capabilities of the IsDB technical assistance programme.
15. Once again, the Islamic Development Bank extends its thanks to the WTO Secretariat for its
support, excellent organisation of this essential gathering and appreciates the great efforts,
cooperation and joint collaboration of all the relevant regional institutions in complementing the
IsDB's objectives in serving the needs of the OIC member countries.
7. Statement by Professor Willem Buiter, European Bank of Reconstruction and
Development
16. The EBRD attaches great importance to enhance trade-related technical assistance and
capacity building energies of operations, in particular, in the low-income transition economies, but not
only them.  Even for the most advanced accession countries, they need more effective participation inthe coming trade negotiations, which is extremely important.  We hope and expect to sign an MOU
with the WTO in the near future on the subject.  We also cooperate fruitfully in the areas where we
overlap with the Asia Development Bank in Central Asia, with the World Bank, the European
Investment Bank and the IMF.
17. The initiative that has been proposed to everyone both enhances the capacity of existing WTO
Members to participate and negotiate more effectively in the new Doha Development Agenda
negotiations.  It also expedites the accession of those among our countries of operations.  There is stillquite a few of them that are not WTO Members.
18. The four largest CIS countries (Russia, Ukraine, Uzbekistan and Kazakhstan) are all outside
the membership of the Organization.  The EBRD works mainly with the private sector, which
accounts for 76% of projects.  The rest is sovereign, sometimes with sovereign warranty, in other
times, with public sector out of sovereign warranty.  The private sector focus is very important in theway we approach the trade issues.  After all, the real constituency for trade liberalization is found in
the private sector.  So is the real opposition.  We all know that highly focused protectionist lobbies are
effective in buying protection beyond their size in economic significance and can cause considerable
economic harm at home and abroad.  But the private sector is central to this game, and technical
assistance should also reach those parts of the economy.WT/COMTD/38
Page 23
19. A transition process itself is one of the most striking episodes of international integration and
trade liberalization.  The losses from 40 to 70 years of central planning and trade distortions were
enormous.  The gains from trade can be seen, particularly in Eastern Europe where these have been
vast.  But of course, to reach the full benefits of international integration, the transition economies
need improved market access.  And the aims of Doha, therefore, add a complementary to the goal ofsuccession transition.  Much of the CIS is land abandoned and a potential agricultural exporter.  It is
therefore of considerable negative significance to them that the three major markets - Japan, EU and
US - all have restrictive protectionist agricultural sectors, preventing the expansion of agricultural
production exports that make economic sense from the point of view of cooperative advantage.  The
region is likewise abandoning commodities such as metals and cotton.  The development of local
processing capacity as a pillar of development will depend again on market access in such sensitive
areas as steal, textile, clothing and footwear .  So, the Agenda is key but very sensitive.
20. The Doha Round offers important prospects for traditional economies.  For those already
WTO Members, the recent WTO initiative to strengthen technical assistance to Members to increase
understanding of their rights and to build capacity to draw the advantages of the open and rules based
trading system is highly welcome.  The assistance will complement the accession related institutional
ability in Eastern Europe.  In the CIS, the WTO could become a key anchor for structuring from along side IFI lending-based conditionality.  For the region, the biggest impact in relation to the WTO
would come from the Russian membership.  The present negotiations scheduled targetting accession
by late 2003 are probably quite ambitious.  But EBRD fully supports Russia's accession as early as
possible.
21. There is considerable evidence that the benefits from trade liberalization are not restricted to
the trade and goods sectors.  The institutional development in the economy as a whole tends to
accelerate and improve as a result of embracing liberal stands towards trade and international
partnership.  There is considerable evidence that contingencies that are more exposed to international
competition have restructured more deeply in the transitions economies.  The deep, necessary
restructuring of the Russian industry will be considerably benefit from WTO accession.  But to beeffective, this will need to go hand and hand with these hardening budget constraints and, very
importantly, domestic reforms in the field of energy.  Adjusting costs will call for a gradual approach.
But the gradual approach should be consistent with determined and purposeful, not synonymous with
the slow one.  In the IFIs, we indeed have to be re ady to assist in pushing the social cost of the deep
restructuring that may be possible.  Once Russia is a Member, membership negotiations can be swiftly
concluded with the other CIS countries.  This is wh ere WTO technical assistance will be most useful,
since institutional capacity for trade policy formulation is very low in many of the CIS countries.
22. The EBRD, together with other IFIs, is putting particular emphasis on the potential benefits of
regional trade.  Thirteen over the 27 countries of operation are land-locked.  Uzbekistan is double
land-locked.  You cannot reap the benefits for globalization unless you first make sure that benefits
from regional liberalization are there because you cannot access your markets without the
collaboration of your immediate neighbours.  So, regi onal trade integration in the Caucasus, in South
Eastern Europe and in Central Asia is central to our strategy.
23. Let me finish by saying that the national capacity building issues – those relate to tariffs,
customs administrations and standards, - and the global capacity building issues, such as IPR,
agriculture trade, have to be put next to the regional issues of trade and transit.  The benefits from
capacity building and global capacity building are contingent on this regional dimension.  The EBRD,together with other regional development banks, is happy to play a role in this regard.
8. Ms. Frannie Léautier, Vice-President, World Bank
[PowerPoint presentation]WT/COMTD/38
Page 24
9. Statement by Mr. Faizel Isrnall, Head of Delegation, Permanent Mission of South Africa
In support of the NEPAD Trade Strategy: A South African perspective
24. Africa's marginalization and its failure to benefit to any significant extent from globalization
and liberalization is well known. The challenge for African countries is not to try and stop the process
of globalization and liberalization but to participate in it and to shape it to reflect Africa's priorities
and thus to benefit from it. Africa's leaders have begun to take ownership and responsibility for their
own economic development. During the past 18 months they put together a vision that reflects the
determination of Africa to jettison the baggage of  past failures and their commitment to work for a
better future for all our people. Thus, a bold and ambitious programme has begun to take shape. The
objectives of which include:
• To accelerate the eradication of poverty and inequality in Africa
• To place African countries, both individually and collectively, on a path of sustainable growth and
development
• To halt the marginalization of Africa in the globalization process
• To promote the empowerment and economic integration of women
25. The Principles adopted are as follows:
• African ownership and leadership
• Anchoring the redevelopment of the continent on the resources and resourcefulness of the African
people
• Accelerating the deepening of regional and continental economic integration
• Creation of conditions that make African countries the preferred destination for both domestic and
foreign investors
• New Partnership with the industrialized world
• Comprehensive, holistic and integrated development programme for Africa.
26. And, the key priority areas for which NEPAD is currently developing implementation
proposals on are:
• Political governance
• Economic and corporate governance
• Infrastructure development, including ICT
• Market access and agriculture human development, including health, education and poverty
eradication
• Capital flows, including domestic resources, private flows, ODA and debt reduction.WT/COMTD/38
Page 25
27. The market access strategy, co-ordinated by Egypt, is still being discussed and developed.
The NEPAD secretariat, now based in South Africa, is playing a co-ordinating role. Prof. Nkuhlu and
his small staff are working hard to meet a number of important deadlines: the implementation
proposals for this extra-ordinary vision of the progressive leadership of the continent are being
developed both to be presented to the Leaders of G8 in June and to the leaders of the Continent whenthey meet at the inauguration of the African Union in July.
28. The thrust of the market access or broader trade strategy can be unpacked into five key
elements:
Trade policy development
29. Trade policy development is essential to guide an effective market access and negotiating
strategy. This includes an appropriate macro-economic framework underpinned by a comprehensivetrade policy, that encourages exports; a regulatory and institutional framework facilitates the effective
development of markets and the achievement of social objectives and; a transparent and rule based
economic governance system that creates certainty and confidence for both domestic and foreign
investors.
30. Moreover, a trade policy must be guided by an analyses of a countries comparative and
competitive advantages, the key sectors and segments of the market that it can compete in and the
work it has to do to move up the value chain ie, to beneficiate and diversify its production. This
pertains to traditional products regarding commodities, new dynamic products regarding semi-
manufactures and manufactures, even technologically advanced products, and the whole domain of
services exports.
31. Thirdly, the reform and simplification of tariffs and further reductions must be guided by the
need to build the countries competitiveness in a ca refully managed manner, taking cognisance of its
impact both on the productive sector and the its people. This will include building synergies with the
sub-regional and regional economic integration processes in the continent, as these processes advance
the objective of building free trade and economic development on the continent as a whole.
Supply side support
32. Our experience has taught us that to become effective exporters it is essential to create an
environment that encourages investment in the export sectors. An appropriate incentive regime,
particularly for small investors and in strategic sectors may be essential to facilitate high quality
investment. A package of supply side measures that includes programmes for innovation and research
and development is essential. The latter is important to the diversification of production as it cancontribute to strengthening African manufacturing and its technological content and hence its
competitiveness. Our experience in South Africa suggests that without an export credit facility that
includes credit risk insurance and investment guarantees, there will be many missed opportunities for
our own exporters, whilst the OECD exporters bene fit from the deep pockets of their own export
credit agencies.
Institutional development
33. The appropriate institutional mechanisms to  implement and manage an effective trade
strategy are essential. These institutions cannot simply be created overnight; two examples are cited.
Firstly, there are few countries which have re-structured their national bureaucracies to allow for theeffective co-ordination of the development of trade policy. Indeed, the agenda of trade policy
incorporates almost all the economic ministries and indeed when one studies this carefully, just about
every government department has a stake! How does one co-ordinate the development of trade policyWT/COMTD/38
Page 26
and negotiating positions? In our country the president has initiated a cluster system of inter-
departmental governance. However, we are far from finding an effective institutional response. In
addition, economic ministries on the continent dealing with trade lack adequate staffing and sufficient
expertise to manage the implementation of trade agreements or to the mainstream these agreements
into their broader economic development plans. Thus, building the capacity of economic ministries isalso an important task.
34. Secondly, an equally challenging task, essential for the success and sustainability of any trade
strategy, is the need to incorporate in both the policy design and the implementation process, the key
stakeholders including; business, the trade unions and the NG0s. In South Africa, this has been a
cardinal feature of our new society and the National Economic and Development and Labour Council
(NEDLAC), provides the instructi onal framework for a robust consultative and internal negotiating
process.
35. Thirdly, all successful exporting countries have built their success on effective national
institutions that encourage co-operation among exporters, training of small exporters and the sharing
of experiences and the building of national brands. South Africa has drawn on the rich experiences
here of Ireland, Australia, Hong Kong and even Sweden and Finland.
Market access strategy
36. Almost all countries are compelled to take a more complex approach to their market access
strategies. This includes at least three levels: firstly, a bilateral strategy with key trading partners,
reflecting the pattern of existing trade and future potential and that effectively exploits trade
preferences; secondly, a regional strategy that creates the possibilities to benefit from a larger marketsize and creates a more balanced development with ones neighbours and, thirdly, a multilateral
strategy that ensures effective participation to contribute to the development of a fair and equitable
trading system. African countries have, arguably, the greatest interest in creating a counterweight to
the possibilities of unilateralism and for building support for their trade strategies. We need to ensure
that all African countries actively participate in the development of the multilateral trading system.
Trade negotiations skills
37. This trade strategy has to be negotiated. In our experience there is no more frustrating task
than to negotiate with partners who have not been able to develop their negotiating positions, and thus
have poor mandates; and are full of suspicion of ev ery proposal. In Southern Africa, it took us some
four years to conclude the SADC FTA but about five years to re-negotiate the SACU (Southern
African Customs Union). However, we have learnt that good negotiating skills can deliver results,even against the formidable power of the Brussels machinery or the skills of the USTR.
38. However, the best way to learn is on the job, and thus skills training should first of all
encourage and enhance participation in the negotiating process both at home and the appropriate
negotiating fora. How can we increase the number of missions and technical experts in the African
Missions in Geneva? How can we also expand the number of experts and trainers in the capitals; inthe public sector, in the private sector, in academia and in the wider civil society? Training and
capacity building must be defined and designed by the participants themselves - of course with some
assistance from more experienced negotiators.
39. The implementation of this capacity building must ensure that all vestiges of paternalism and
attempts to influence the participants are exorcized. Donors often are prone to ensure that it is their
topic, their nationals and even their perspectives and views that get prominence in the training
courses. This will not build confidence.WT/COMTD/38
Page 27
Approach to technical assistance
40. What then should be our approach to Technical Assistance and Capacity building? Firstly, it
needs to be recognized that this challenge should be undertaken in a comprehensive manner and that
there are no easy solutions that will have immediate results. Both the donors and participants need todesign and develop a longer term and more holistic implementation strategy. Thus, the experiences of
programmes such as the JITAP, the joint UNCTAD/WTO/ITC trade capacity building programme, in
Africa and the IF (Integrated Framework) can and should be built on, and expanded.
41. The WTO has limited skills in both training and the design of trade policy, yet can play a
critical role in identifying the negotiating issues and undertaking good research. Thus the experience
gained from the Trade Policy Review (TPR)could be valuable in assisting countries to design their
trade policies. However, the WTO will need to work with other more competent institutions in otherareas of trade policy and analyses. In this regard the other UN agencies such as UNCTAD, the ITC,
UNDP, and UNIDO need to play a vital role. Indeed, in some areas we will need to use the resources
of more specialized agencies such as WIPO and the WCO. The critical factor however is to ensure
that in building and implementing these capacity building programmes, national and regional
institutions (universities and research institutions, Development Banks,NG0s and the private sector,etc) are privileged and given much support to encourage institution building and ownership, so that
there is a transfer of knowledge and the building of institutional capacity.
Co-operation with the WTO Secretariat
42. The NEPAD secretariat seeks to work with other institutions and agencies in building its trade
strategy. In this regard it has already held discussions with the WTO, UNCTAD and a number of
other agencies. Appropriate co-operative frameworks and arrangements need to be built to effect this
co-operation, including the signing of Memorandums of Understanding. In this regard the NEPAD
Secretariat is encouraged by the many offers of assistance and support it has received from the WTO,
and indeed from the enthusiasm with which the DG, Mr Mike Moore, has begun to build thisrelationship. Indeed, the secretariat is encouraged by the technical capacity work underway and hopes
the DG will have the opportunity to present a report on the work of the WTO in furthering the
objectives of the Nepad Trade Strategy at the June Summit of the G8. I have not expanded on the
broader objectives and programmes of NEPAD, as Prof. Nkuhlu has assured me that he will take up
the invitation the Secretariat has made to him to make a presentation to the Special Session of the
Trade and Development Working Group in July, this year.
__________