WORLD TRADE
ORGANIZATIONG/AG/W/57
23 October 2002
(02-5816)
Committee on Agriculture Original:  English
MARRAKESH NET FOOD-IMPORTING DEVELOPING COUNTRIES ("NFIDC")
DECISION − TECHNICAL AND FINANCIAL ASSISTANCE IN THE CONTEXT OF AID
PROGRAMMES TO IMPROVE AGRICULTURAL PRODUCTIVITY AND
INFRASTRUCTURE
Responses from International Development Or ganizations and Regional Development Banks
The attached responses from the European Investment Bank and the World Bank have been
received in response to letters by the Chairman of the General Council in connection with the
Committee's recommendations on implementation-related issues that were approved at the Doha
Ministerial Conference.  The relevant recommendation in the area of technical and financial
assistance in the context of aid programmes to improve agricultural productivity and infrastructureprovides:
"(b) that, in support of the priority accorded by least-developed and net food-importing
developing countries to the development of their agricultural productivity and
infrastructure, the WTO General Council call upon relevant internationaldevelopment organisations, including the World Bank, the FAO, IFAD, the UNDP
and the Regional Development Banks to enhance their provision of, and access to,
technical and financial assistance to least-developed and net food-importing
developing countries, on terms and conditions conducive to the better use of such
facilities and resources, in order to improve agricultural productivity andinfrastructure in these countries under existing facilities and programmes, as well as
under such facilities and programmes as may be introduced."  (G/AG/11, Section B-II
refers.)
In his letters to the respective heads of the international organizations concerned, the
Chairman of the General Council requested information about the outcome of any deliberations and
actions in this regard within the framework of their programmes and policies.
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Response by the European Investment Bank on the issue of enhancing technical and financial
assistance to LDCs and WTO NFIDCs
Thank you for your letter of 29 August 2002 regarding the recommendation of the WTO
Ministerial Conference concerning Technical and Financial Assistance in the Context of Aid
Programmes to Improve Agricultural Productivity and Infrastructure, which we have read with
considerable interest.
The European Investment Bank's activities in the countries concerned – notably the least-
developed countries – largely come within the pur view of the Lomé Convention and its successor the
Cotonou Agreement, which govern the European Union's assistance to the 77 ACP countries.  UnderLomé and Cotonou, by virtue of the fact that all of its aid is in the form of grants, primary
responsibility for supporting the agricultural sector, food production and rural infrastructure rests with
the European Commission, which manages about 80% of the funds provided to the ACP countries
under these agreements.  By contrast, the EIB's involvement tends to be limited to commercial and
plantation agriculture, typically but not necessarily for export, and for more general revenue-generating infrastructure such as power, water supply and sanitation, ports, etc.
In the light of the above you will appreciate that any deliberations about increasing EU
support for agricultural productivity and infrastructure in the least-developed and net food-importing
developing countries rest with the European Commission and the EU Member States within theframework of the Council of Ministers in Brussels.
Signed by Philippe Maystadt, PresidentG/AG/W/57
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Response by the World Bank on the issue of enhancing technical and financial assistance to
LDCs and WTO NFIDCs
Thank you for your letter of 29 August 2002 to Mr. Wolfensohn concerning the World Bank's
support for implementation of the Marrakesh Ministerial Decision on Measures Concerning the
Possible Negative Effects of the Reform Programme on Least-Developed and Net Food-Importing
Developing Countries.  I am pleased to report that there are a number of ongoing initiatives that
contribute to the objectives set out in the WTO Committee on Agriculture report.
First, we have continued and expanded our trade-related technical assistance efforts to the
least-developed economies.  One primary channel is the Integrated Framework for Trade-RelatedTechnical Assistance (IF), through which the Bank has taken the leadership role in carrying out trade
diagnostic studies in nearly a dozen countries.  Given the prominent role of agriculture in most of
these economies, we believe efforts to improve market access and address behind-the-border barriers
to trade are key to expanding agricultural productivity and improving rural living standards.  We also
have continued to encourage research and policy analysis of the impact of reforms on agriculturaltrade.  For example, our Agricultural and Rura l Development Department has co-sponsored forums
that examined the distributional impact of trade re forms, the impact of OECD agricultural policies on
developing countries, and the implications of the Doha Agenda for developing country trade
strategies, and a sourcebook for agricultural trade negotiators will be published later this year.
Second, as you are aware, Mr. Wolfensohn appointed a Bank representative to the WTO's
Interagency Panel on Short-term Difficulties in Financing Normal Levels of Commercial Imports of
Basic Foodstuffs.  The panel issued its final report at the end of June, and this was subsequently
discussed with the General Council.  The WTO formally expressed its appreciation for the Bank's
participation.  There is some discussion that the panel may re-convene to consider various issuesrelated to the same topic, but outside the panel's original terms of reference.
Finally, the Bank has recently created a Trade Department, of which I am the director.  One
strategic objective of the new Department is to prom ote trade as a core aspect of country development
strategies, including striving to insure that trade-related issues are more fully integrated into Poverty
Reduction Strategy Papers (PRSPs) as well as our own Country Assistan ce Strategies (CASs).
Another objective of this initiative is to improve the quality of our interaction with strategic partnerssuch as the WTO, so your continued interest in and support for our efforts is particularly welcome.
Signed by Uri Dadush, Director, International Trade Department
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