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25March 1997
ORGANIZATION(97-1230)
Sub-Committee onLeast-Developed Countries
Fifth Session
NOTE OFTHE MEETING OF28FEBRUARY 1997
Chair: Ambassador Evelien L.Herfkens (TheNetherlands)
1. TheSub-Committee adopted theagenda ascontained inWTO/AIR/537.
(i) Agenda ItemB:Consideration oftheSpecial andSpecific Problems ofLeast-Developed
Countries: Accumulated Arrears
2. TheChair recalled thedecision taken byMembers on13December 1994ontheissueofarrears,
which stipulated thatagovernment thathadaccumulated more thanthree years ofarrears would be
placed intoCategory IVinterms oftheWTO budget, andbeconsidered inactive. Thismeant that
itwould beexcluded fromWTO training ortechnical assistance activities. Asof14February 1997,
22countries wereconsidered inactive, ofwhich 17wereleast-developed. Theitemhadbeenplaced
ontheAgenda ofthismeeting oftheSub-Committee withaviewtoexploring options forsolutions,
inadesire tomake theWTO atrulyinclusive Organisation.
3. Therepresentative oftheUnited States questioned thereason whytheitemwasplaced onthe
Agenda oftheSub-Committee astheissue fellwithin theTerms oftheReference oftheCommittee
onBudget, Finance andAdministration. Theobligation wasnoted under Paragraph 4,Article VII,
oftheWTO Agreement andwasenforceable. Headded thatitwasnotaproblem specifically ofall
theleast-developed countries, citing thatBangladesh andothers hadmettheirobligations, eventhough
theirs wasassessed above theminimum contribution. Herecalled thattheissue ofsanctions against
members inserious arrears wasaproduct oflongdiscussion intheGATT andtheWTO Preparatory
Committee. Hestressed thatfurther discussion wasnotappropriate intheSub-Committee.
4. Therepresentative ofMorocco noted thelegalimplication made bytherepresentative ofthe
United States, though feltthatsolutions should beconsidered while adhering totheframework ofrights
andobligations ofMembers. Heoffered thathiscountry would beamenable tomaking acontribution
toaTrust Fund, orthelike,without anybudgetary implication orimposition ontherules.
5. TheChair suggested thatadebtmanagement strategy similar totheIMFandmultilateral
development banks beconsidered. Itwould include bothsanctions andincentive inavoiding moral
hazard implications, whether onthebudget ortherules. Shehadalready agreed withtheChairman
oftheBudget committee thattheissue would beraised inthatCommittee ifcomplications arose.
6. Therepresentative ofTanzania saidtheproblem ofaccumulated arrears andsanctions hadno
clearsolution andthatitwasunfortunate thatitwaslinked onlytoArticle VII,Paragraphs 2(b)and
4oftheWTO Agreement. Hedidnotdispute theobligations ofMembers, butquestioned thelink
ofnon-payment withtheexclusion oftechnical assistance, which provided atangible benefit. Its
terminationwouldconfirmfearsheldbyleast-developedcountriesthattheywouldbefurthermarginalized
inglobal tradeandwould defeat theobjective enshrined inParagraph 2(v)oftheDecision onMeasuresWT/COMTD/LLDC/5
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inFavour ofLeast-Developed Countries toassist them. Hisdelegation requested theSecretariat to
prepare apaper onthisissue. Henoted thatParagraph 2(iii)oftheDecision onMeasures inFavour
ofLeast-Developed Countries stated thattherulessetoutinthevarious agreements should beapplied
inaflexible andsupportive manner fortheleast-developed countries.
7. Therepresentative ofBangladesh noted ironically, themajority ofthecountries inarrears were
theleastdeveloped countries, particular from Africa, which needed technical assistance themost.
Forpragmatic andethical reasons, itwould notbeappropriate fortheWTO toexclude them. He
supported theChair'ssuggestion toconsider aformal framework forfinding solutions, andwasgrateful
tothegesture bytherepresentative ofMorocco tocontribute toaTrust Fund. TheBudget Committee
would needtobeinvolved ifanybudgetary implications wereinvolved, andshould include theChairman
oftheCTD. Hesupported astudy bytheSecretariat andurged tofindasolution within theproper
legalreference prior totheHigh-Level Meeting onLeast-Developed Countries.
8. Therepresentative ofMadagascar didnotintend tochallenge thelegalarguments presented
bytherepresentative oftheUnited States, forthebudgetary rules oftheWTO. However, hefelt
itappropriate todiscuss obstacles suchasarrears which hindered theparticipation ofsome Members,
perhaps along thelinespresented bytherepresentative ofMorocco.
9. Therepresentative ofNorway agreed thatattention bedrawn totheproblem withaviewto
bring these22countries inlinewiththebudgetary rulesoftheOrganization. Herecalled thattheissue
wasraised atthemeeting oftheBudget Committee aweek prior, which decided thatitsChairman
wouldconsultwiththeChairsoftheCTDandtheSub-Committee,theGeneralCouncil,andtheDirector-
General. Heanticipated theconsultations anditsconclusions.
10. Therepresentative ofHaiti questioned whytherepresentative oftheUnited States objected
totheappropriateness ofadiscussion intheSub-Committee since itdealtwithissues affecting least-
developedcountries.HeagreedwiththerepresentativeofNorwaythatconclusionsshouldnotberushed,
andurged thatconsultations involved theleast-developed countries affected.
11. Therepresentative oftheEuropean Communities saiditwascommitted totheintegration of
theleast-developedcountriesintothemultilateraltradingsystem,andwaspreparedtoworkconstructively
onaproblem which concerned many ofthem. Itwasprepared toconsider apaper bytheSecretariat,
andurged cooperation withtheBudget Committee toensure coherence intheapproach.
12. Therepresentative ofSwitzerland recalled that,while theissuehadbeendiscussed before within
theframework oftheGATT, itmight needfurther revision. Herecommended thatapaper beprepared
intheframework oftheBudget Committee attherequest oftheSub-Committee. Henoted thatthe
Budget Committee wasopen-ended andthatalldelegations could participate. Heurged thatthecountries
concerned provide theirinput, andcitetheirdifficulties inpaying theircontributions. Heencouraged
consultations between theChairs ofthetwoCommittees.
13. Therepresentative ofIndiasupported comment bytherepresentative ofTanzania. Hesuggested
toconsider theagenda itemintheframework oftheDecision onMeasure inFavour ofLeast-Developed
Countries, toallow theactual dimension oftheproblem tobeaddressed. Hesupported theproposal
tohaveabackground paper andsaidthattheissue might inevitably ariseattheHigh-Level Meeting.
14. Therepresentative ofMauritius questioned whyanissuethataffected more thanhalftheleast-
developed countries could notbeaddressed intheSub-Committee onLeast-Developed Countries.
Sheendorsed theideatorequest apaper from theSecretariat inclose consultation withtheBudget
Committee, while other options suchasaTrust Fund would require further thought. Sheagreed thatWT/COMTD/LLDC/5
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possible legalimplications beaccounted for,andsuggested looking attheissueonacase-by-case basis
asthereasons forbuilding uparrears varied. Hestressed thataccess totechnical assistance andtraining
should continue inorder toprevent further marginalization.
15. Therepresentative ofCanada noted theAnnotated Agenda wasdistributed onlytwodaysprior.
Consultations ontheissue ofarrears hadalready beenmandated, andtheSub-Committee should not
proceed without proper knowledge onthisissue. Forthetimebeing, hesuggested thatamember of
theSecretariat giveabriefing onthematter. Hesupported thatfurther discussion beheldintheSub-
Committee asitwasclearly intheinterests ofleast-developed countries, andhence appropriately dealt
withbytheSub-Committee.
16. TheChair saidshehadconsulted withtheChairman oftheBudget Committee before putting
itontheagenda ofthisCommittee.
TheCommitteethenagreedtocontinueitsconsiderationsofthematter,recognizingthatpossible
solutions didnotnecessarily imply budgetary orlegalconsequences.
17. Therepresentative ofMorocco recalled thatnodelegation hadchallenged inclusion ofthisitem
ontheagenda. TheHigh-Level Meeting would notbetheproper place todealwiththeissueofarrears
since itwashighly political andshould bedealtwithinadelicate was.Hesupported request bythe
representative from Switzerland forashort synopsis ofthebackground onthisissue. Herequested
asuccinct listofoptions thatwould befeasible under thecurrent rules. hesaidthattheSecretariat
wasnotresponsible forarrears norshould itbedesignated tosolve theproblem. Henoted that
consultations were already under way, andsupported further discussion withtheDirector-General,
aswellasinother fora.
18. TherepresentativeofCôted'IvoireconsideredthepointmadebytherepresentativeoftheUnited
States, though believed thatflexibility should beallowed. Sherecalled thatrigidity hadnotbeeneffective
overthepastfouryears. Itwasobvious thattheissueshould bediscussed within theSub-Committee,
aswellasattheHigh-Level Meeting.
19. TheChair differed withtheviewexpressed bytherepresentative ofMorocco toexclude the
discussion ofarrears from theHigh-Level Meeting. Shesaiditwould besomewhat detrimental to
theimage oftheWTO toshow nointerest inretaining theleast-developed countries, orfortheleast-
developed countries toshow alackofinterest intheWTO bynotpaying theirrather small contributions.
Shedidnotpropose toinclude theissueformally ontheagenda oftheHigh-Level Meeting, although
didnotexclude thepossibility thatanydelegations attending themeeting which hadanarrears problem,
would beapproached fordiscussion.
20. Therepresentative ofUganda hoped thatanimaginative solution would befound inaccordance
withtherules. Hesupported thatapaper beprepared bytheSecretariat andwasofthenewthatthe
Sub-Committee wastheproper venue foraddressing theissue andconsidering solutions. Heurged
thatasolution befound before theHigh-Level Meeting toavoid addressing itattheMeeting.
21. Therepresentative ofSenegal wasgrateful thattheitemhadbeenincluded ontheAgenda.
Shehasoftheviewthataccumulated arrears wereprejudicial toacertain number ofWTO Members,
andfavoured athorough examination onthebasisofaworking paper tobeprepared bytheSecretariat.
Shestressed thatforceful tactics would notyield theexpected results andnoted thatcertain countries
hadobjective constraints thatshould beconsidered. Herdelegations wasprepared toparticipate in
thisprocess.WT/COMTD/LLDC/5
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22. Therepresentative ofHaitisupported theviewexpressed bytherepresentative fromMorocco
thattheissueshould notbecarried overtotheHigh-Level Meeting asitmight overshadow discussion
ofother matters. Hesupported theviewexpressed byother delegations thatthesolutions berespectful
oftherules, andencouraged further consultation within theappropriate bodies.
23. Therepresentative ofEgypt saidtheissue ofarrears would havebudgetary implications and
should therefore involve theBudget Committee. Theissuehadabearing onthetechnical cooperation
activities oftheWTO: itwasironic thattheSub-Committee promoted technical cooperation programs
fortheintegration ofleast-developed countries while atthesametimethesecountries would beexcluded
duetoarrears. These countries lacked thecapacity topayandneeded innovative solutions. He
encouraged consultations takeplace among therelevant Committees. Heurged aquick solution so
astoavoid raising theissue attheHigh-Level Meeting.
24. TherepresentativeofAustraliaagreedwiththerepresentativeofBangladeshthatitwassomewhat
ironic thatMembers which hadthemostdifficulties topaytheirduesalsohadthegreatest needfor
technical assistance. However, shewasaware ofthelonghistory which hadledtotheexisting
arrangement, andwasprepared toconsider other proposals tobedrawn upinclose consultations with
theBudget Committee.
25. Therepresentative ofSingapore saiditwould beuseful todrawadistinction between thelarger
problems ofarrears andthespecific problems faced bytheleast-developed countries andhoped that
theSub-Committee would identify these problems before further discussion. Herequested thatthe
Secretariat prepare asynoptic background paper andthattheChair conduct informal consultations with
theleast-developed countries concerned. TheCommittee should notonlyfocus onbroader issue of
arrears perse,buthelptoalleviate theconcerns oftheleast-developed countries.
26. TheChair saidthediscussion demonstrated theneedformore background material onthis
matter. Thequestion raised bytherepresentative oftheUnited States andshared byothers werequite
pertinent, although these historical debates hadnever ledtoasolution oftheproblem. Sheproposed
thattheSub-Committee request theSecretariat toprepare apaper, which would provide theinstitutional
background oftheissueofarrears and,under guidance oftheChair inconsultation withtheDirector-
General, theChairman oftheCommittee onTrade andDevelopment aswellastheBudget Committee,
explore possible solutions tothisproblem. Itshould takenoteoftheissues ofmoral hazard, andcountry-
specific circumstances offulfilling thisobligation. Sheproposed toholdadditional consultations with
theleast-developed countries affected.
27. Therepresentative oftheUnited States asked iftheChair meant thebackground paper would
explain onacountry-by-country basisthereasons whyinactive Members hadfailed topaytheirarrears.
Hewould support thattypeofapaper andnoted thatdiscussions inboththeBudget Committee and
thePreparatory Committee already existed indocumentation.
28. TheChair replied thatshehadabroader paper inmind which would include approaches taken
byother international organizations, andpresent newoptions. Shehadexperience intheWorld Bank
tothataffect, andsaidthattheAfrican Development Bank alsofaced similar problems. These other
institutions hadstrategies which involved both carrots andsticks andoffered solutions without
undermining theessence oftheirmember obligations. Shesuggested thepaper gobeyond acountry-
specific listing. Inaddition, circumstances, whether resulting fromalackofpolitical willorinstitutional
capacity, should beaccounted for.Thepresentative oftheUnited States consented butnoted thatthe
issue hadbeen considered before. Hecited thatin1994, theWTO Preparatory Committee had
considered other option suchaswithdrawing therighttovoteintheWTO, orbarring access todispute
settlement.WT/COMTD/LLDC/5
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29. TheCommittee thenagreed totheChair'sproposal.
(ii) Agenda ItemC:High-Level Meeting ForLeast-Developed Countries
30. TheChair recalled thatatitsmeeting on17February 1997, theCommittee onTrade and
Development hadhelditsfirstin-depth discussion onthescope, content andorganization oftheHigh-
Level Meeting, based onaJointInformal Noteprepared bytheITC,UNCTAD andWTO secretariats
dated 13February 1997. Atthatmeeting, theCommittee hadurged more reflection onthesubstance,
andagreed thatitwould beappropriate fortheSub-Committee totakeupthismatter under itsguidance.
Sherecalled thatdelegations hadexpressed general agreement thattheITC,UNCTAD andWTO along
withtheWorld Bank, IMFandUNDP would besixco-organizers ofthatmeeting andhadgiven the
Secretariat amandate tomake thenecessary contacts withtheco-organizers assoonaspossible. She
stressed theneedforurgency astheSingapore Ministerial proposed thataconference beorganized
assoonaspossible in1997. Shefurthermore recalled that,regarding theproposed agenda assetout
intheJointInformal Note, delegations hadexpressed general agreement withthefirsttwobullet points,
aswellaswiththefourth. Differences ofviews stillexisted onthequestion ofhowtoinclude
information technology asanitemforconsideration. Shestressed thataconsensus wasemerging fast
ontheagenda, andurged delegations onfocus ontheessentials rather thanturnthemeeting intodrafting
exercise.
31. Therepresentative ofMadagascar hoped thatthediscussion would notbearepeat ofthemeeting
oftheCTD andsaidtheHigh-Level Meeting should staunch initiatives tosolve thedifficulties that
faced theleast-developed countries astheyintegrated intotheworld trading system. Heurged itto
beapractical, rather thanatheoretical meeting. Herecommended thatsteps betaken toassess the
needs andinterests ofeachoftheleast-developed countries, which could thenbenoted inamemorandum
totheco-organizers. Thiswould allow thesecretariats oftheco-organizing institutions toindicate
measures thatcould betaken inlight oftheir existing programs. Such measures could include
strengthening production andexport capacity, improved market access, ofmarketing capabilities, and
oftheresponse capacity ofthedifferent countries. Hestressed thatapractical approach would be
necessary toestablish integrated andcoherent programmes, andcitedtheIntegrated Programme for
Africa asauseful starting point. Hesuggested thattheHigh-Level Meeting should lastfor2-3days
andtouch upon themost crucial points, asmandated.1
32. Therepresentative ofCanada urged theSub-Committee toagree totheagenda quickly inorder
toinvolve theother co-organizers, andadded thatagood conference would bebetter thanarushed
one.AtthelastCTD meeting hehadalready made anumber ofdetailed comments, ofwhich hewould
repeat some here. Regarding Objective No.2,assetoutintheJoint Informal Note, hewanted to
make itclearthatthemeeting notbeinterpreted asapledging conference. Herecommended thatthe
existing text"launching afirstpackage ofconcrete country-specific andregional activities" bere-phrased
accordingly. Concerning Objective No.4, hewanted toclarify thatmarket-access issues would not
beconsidered themainpriority norbeinterpreted asimplying possible newcommitments onacollective
level. Herecalled thatMinisters hadagreed attheSingapore Ministerial thatincreasing market-access
opportunities should bedoneonanautonomous basis. Thus, falseexpectations should notbecreated.
33. TherepresentativeofBangladeshsaidtheHigh-LevelMeetingshouldbenefitformthemomentum
generated attheSingapore Ministerial Conference, andurged thatthedelegations move quickly. He
recalled thatdelegations ofleast-developed countries hadhadanopportunity tobrainstorm oversome
1The full statement ofthedelegation ofMadagascar iscirculated indocument
WT/COMTD/LLDC/W/4WT/COMTD/LLDC/5
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oftheissues ofconcern tothem.2Anexamination ofcauses, andparticularly structural ones, would
benecessary astheywere fundamental andwidely acknowledged, butcautioned thattheynotaffect
thesubstantive work onkeyagenda items. Thiscould proceed simultaneously andassist theholistic
approach toaresolution oftheproblem. Thedevelopment paradigm involved achain inmotion as
every concerned agency hadaspecific contributing role. Whenever oneelement inthechain was
constrained orimpeded, anintegrative approach wasrequired toconfront thedifficulty. TheJoint
Informal Noteplaced anoverwhelming emphasis onsupply-side capacity anddown played thecritical
issueofmarket access, andsuggested thataspecial preferential regime beestablished toimprove market
access forleast-developed countries. Thisshould focus onproducts where theyhadacomparative
advantage andcapacity toexport, suchasthose under theMulti-Fibre Agreement. Evenifitwascarried
outonanautonomous basis, there could beabroad framework ofsome kindofcommitment. The
issue ofcommodities required specific mention. Attention needed tobepaidtocommodities-related
measures which tookintoaccount existing production andmarketing realities, andwhich didnotplace
complete reliance onmarket-driven approaches. Itwasimportant thatleast-developed countries not
compound theexisting problems over-supply inconsidering theircapacities. They needed concrete
assistance indeveloping dynamic comparative advantages, which would require greater specificity
withpolicy commitments withaviewtowards achieving highvalue added output. Regarding therole
offoreign direct investment, hesaiditrequired greater circumspection inorder foritsflows to
complement thestrategic objectives tobeachieved inindustrial policy.
34. Therepresentative ofBangladesh continued, saying thattheHigh-Level Meeting should lead
tothepolitical commitment toimplement outstanding measures onthedevelopment agenda. Itshould
consider longer lead-in periods andotherpreferential treatment fortheleast-developed countries within
thevarious components oftheUruguay Round Agreements. Hesaidthatrelevant agencies must be
equipped toundertake theirprojected roles. Forinstance, theITChadtheexport promotion techniques,
butnotthefinancial wherewithal. Itsinitiative hadledtotheestablishment ofoffices indeveloped
countries forpromotion ofimports fromdeveloping countries, although resource constraints nowlimited
theireffectiveness. Similarly, hesuggested thatoffices besetuptoencourage developed anddeveloping
countriestoinduceinvestmentsintheleast-developedcountries.Inaddition,UNCTAD'slongexperience
withthedevelopment process must beeffectively utilized. Regarding thetiming oftheHigh-Level
Meeting, heagreed thattheendofJunewould beasuitable asitwould coincide withUNCTAD 's
Pilot Seminar onMobilizing Resources forLeast-Developing Countries Through Capital Markets.
Healsorecommended thatamonitoring mechanism ontheimplementation ofconference decision be
established.
35. Therepresentative ofNepal, speaking asanobserver, supported theviews expressed bythe
representative ofBangladesh, andagreed thatspecificity should bebalanced within suchabroad
environment ofcooperation. Theincreasing participation ofcountries, including theleast-developed
countries intheWTO, reflected agrowing faithintheinstitution anditsability toensure thateven
thesmall andtheweak could secure ashare ofthebenefits resulting fromtheprocess ofglobalization.
Despite thegrowth inthetotalvolume ofworld trade, hecitedthattheleast-developed countries share
inbothworld exports andimports, hadfallen inthe1990s, fromalready meagre levels inthelastdecade.
Thispattern wasfurther complicated bythedifferent nature oftheproblems thattheleastdeveloped
countries faced asagroup of48countries withalmost 600million people. Duetovarious reactions
toward theissue ofmarket-access, hesuggested areview ofexisting conditions, ortheDecision on
Measures inFavour ofLeast-Developed Countries asastarting point. Regardless ofhowliberal market
access was,itwould nothelpunless thesupply capacity wasdeveloped first. TheHigh-Level Meeting
should focus onthecapacity building process, including suchissues asinfrastructure, tradefacilitation,
2ThefullstatementofthedelegationofBangladeshiscirculatedindocumentWT/COM/LLDC/W/3,
dated 5March 1997.WT/COMTD/LLDC/5
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efficiency, institutional development, investment andtechnology, commodities, anddiversification.
Theneedforenhanced resource flows wasfundamental tocapacity building. Herecommended that
areview mechanism beestablished tomonitor theimplementation ofconference decisions. He
encouraged theparticipation oftheprivate sector anforpreparation tocommence immediately.
36. TheChairurgedthedelegationstorefrainfromnegotiatingtheformatoftheHigh-LevelMeeting
andrecalled thatthepreparatory process involved UNCTAD, which hadconsiderable experience in
organizing large meetings. Shesaidthatincluding theIMFandtheWorld Bank would helpalleviate
possible inconsistencies between policy advice fromdifferent institutions. Tothisend,acertain degree
ofownership should beoffered tothese twoinstitutions, and,asaconsequence, acertain flexibility
interms oftheproposed agenda forthemeeting wascalled for.
37. Therepresentative ofTanzania saidtheHigh-Level Meeting should focus onthedevelopment,
strengthening anddiversification oftheproduction andexport baseofleast-developed countries. The
coordination among theinstitutions should provide amechanism toassist theapproaches taken bythe
least-developedcountriestowardseconomicreform.Hecitedthatindustrialdevelopmentwassignificant
inthisprocess andwondered whytheUNIDO wasnotproposed asaco-organizer. Heappreciated
theInformal Note andurged forquick preparation.
38. Therepresentative ofMorocco advised theSub-Committee tokeepitsoptions openandnot
tosetanunrealistic date. Hewasopentoparticipation, butdiscouraged anexcess ofsubstance as
itwould bedifficult tomanage. Hewanted tomake twopoints inthisregard. First, anintegrated
approach among theorganizations toachieve coherence intrade-related matters wascalled for,sothat
theconditionalities among theinstitutions would notbecontradictory. Second, itwasdesirable to
concentrate ondeveloping anapproach thatwould achieve some early results. Inadhering tothe
Comprehensive andIntegrated WTO PlanofAction fortheLeast-Developed Countries3,abalanced
approach should betaken. Asregards tomarket-access, Members hadthefreedom tomake independent
pledges. Finally, other steps should beadvanced astheHigh-Level Meeting wasnotheendofthe
process.
39. Therepresentative ofHong Kong encouraged theroleofforeign direct investment andenterprise
development through aconstructive andproductive dialogue withtheprivate sector. Itsinclusion at
theHigh-Level Meeting would foster asustainable development approach fortheleast-developed
countries. Heendorsed thestatement bytherepresentative ofTanzania thatobjectives beclear, while
notcreating falseexpectations asstressed bytherepresentative ofCanada. Hesaidthatthegeneral
sentiment intheCTD andtheSub-Committee seemed tobethattheHigh-Level Meeting should lead
toconcrete results along thelinesofthePlanofAction.
40. Therepresentative ofHaiti wasconcerned withthestatement bythedelegate ofMorocco
regarding unduly highexpectations attheHigh-Level Meeting. ShewasofviewthattheJointInformal
Paper placed much emphasis ontradeissues, rather thanonstructural costsofdevelopment. Heurged
Sub-Committee tomake thelinkage between trade anddevelopment asthelimited dimension would
deterotherorganizationswhichdealtprimarilywithdevelopment.Sincetheyassistedtheleast-developed
countries inincreasing their productive capacity, theirrolewould beessential totheobjective of
increasing market participation. TheHigh-Level Meeting should leadtoanexchange ofproposals
withagencies thatworked inthefieldandshould provide Ministers withamore balanced view on
developing capacity. Future meetings ofthisnature could reassess theprogress ofthesituation.
Ministers hadrealised thatthecomplexities oftheproblems faced bytheleast-developed countries
could notbesolved byasingle institution. Hecommented thatawell-prepared event would bemore
3Circulated indocument WT/MIN(96)/14, dated January 7,1997WT/COMTD/LLDC/5
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effective thanarushed one. TheChair replied thatshefeltthere wasnotmuch difference between
hisviews andthose stated bytherepresentative Morocco, since mandate oftheHigh-Level Meeting
wasdetermined bythePlanofAction aswellastheMinisterial Declaration done atSingapore. It
wasaprocess ofwhich theHigh-Level Meeting wasapart,notanend.Sheadded thattherehadnever
beenanyintention todisregard thedevelopment issue.
41. Therepresentative oftheEuropean Communities stressed theurgency tomove forward asonly
theWTO component hadbeendiscussed. Although hewasaware thattheproblems thattheleast-
developed countries faced werenotlimited tomarket access andtechnical cooperation, henoted that
themandate fortheHigh-Level Meeting, asdetermined attheSingapore Ministerial, wastoenhance
trading opportunities. Heagreed withthecomments made bytherepresentative ofMorocco, that,
asfarasWTO concerned, thePlanofAction wasagood framework anduseful contribution onits
part.TheSecretariat should continue itspreparation while keeping thedelegations fullyinformed and
receive guidance whenever necessary.
42. Therepresentative ofIndia agreed withtheobjectives assetoutintheJoint Informal Note
andagreed thatthePlanofAction wasthebasisfortheagenda. Herequested thatthestatement made
bytherepresentative ofBangladesh becirculated toMembers 4.Theobjectives ofthemeeting should
betailored tothewishes oftheleast-developed countries, rather thantowhatothers haddecided for
them. Heurged abalance between addressing issues ofcapacity building andmarket access. Hewas
flexible inregards totiming andtheorganisations involved, andrequested thattheSub-Committee
beinformed onaregular basis. Ifnecessary, aninformal meeting oftheSub-Committee could be
convened toaddress anyobstacles which might arise.
43. Therepresentative ofSwitzerland stressed theurgency tolaunch thepreparations sothatthe
High-Level Meeting would notbeimprovised. Itwould bedifficult tohavepotential co-organizers
which were unaware oftheir practical contributions atthisstage. Secondly, heagreed withthe
representative ofMorocco thattheHigh-Level Meeting asnottheendoftheprocess, butrather the
beginning. Thirdly, heagreed withtheapproach asproposed intheInformal Note, andurged that
theagenda notbeoverloaded. Fourthly, hesaidthedatewasanambitious target andnotehewasunable
tograsp alltherelevant issues thatwere required.
44. Therepresentative ofNorway agreed withtherepresentative ofIndiathatinputs fromtheleast-
developed countries themselves werecrucial Heurged restraint, andurged theagenda befocused in
determining tangible results. TheHigh-Level Meeting would beanimportant opportunity toattract
political attention tothesituation oftheleast-developed countries regarding trade, andshould notbe
anoccasion tosolve allthedifficult problems theyfaced. Hesupported thetarget dateandfurther
preparations.
45. Therepresentative ofJapan noted thatanumber ofrelated meetings were planned towards
theendofJune, included theUNCTAD Meeting onLand-Locked Countries inNewYork, theMeeting
onInformation Technology inToronto, andtheUNCTAD PilotSeminar onMobilizing Resources
toLeast-Developed Countries Through Capital Markets. Hesuggested earlyJulyasamoreappropriate
datetoholdthemeeting. Hisdelegation supported thestatement bytherepresentative ofMorocco
tokeeptheAgenda within themandate ofthePlanofAction. Herecommended thattheprivate sector
participate intheHigh-Level Meeting, andcitedtheroleofforeign direct investment intheeconomic
development oftheEastAsian region. Henoted thattechnology transfers byprivate companies would
beimportant tothedevelopment ofdeveloping countries, including theleast-developed countries.
4Seesupra, Footnote number 2.WT/COMTD/LLDC/5
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46. TheChair proposed thatlogistical questions should bedealtwithbytherespective secretariats,
which would thenkeeptheCommittee informed. Shefurther proposed thatthemeeting bebased on
fiveparameters. First, input from theleast-developed countries themselves, apoint made bythe
representative ofIndia andsupported bytherepresentative ofNorway. Inthatcontext, sheasked the
Secretariat tocirculate theintervention oftherepresentative ofBangladesh5.Secondly, thePlanof
Action fortheLeast-Developed Countries. Thirdly, cooperative attitude towards theother fiveco-
organizers, taking intoaccount theirviews. Fourthly, theneed todeliver concrete results atthis
Conference. Fifthly, theHigh-Level Meeting wasaphase inaprocess asidentified inthePlanof
Action, andnotanendtoitself. Shealsoproposed thattheSub-Committee haveamonitoring role
inthepreparation oftheHigh-Level Meeting, rather thanoneofmicro-manager. Shesuggested to
update theSub-Committee onfurther inputs expected fromco-organizers andanyfurther development
inthepreparation process, andwould convene additional meeting asnecessary.
47. TheSub-Committee soagreed.
(iii) Agenda ItemD:Other Business
48. Arepresentative oftheSecretariat, introduced thepaper onthespecial activities carried out
forleast-developed countries inpreparation fortheSingapore Ministerial Conference6.
5Seesupra, footnote number 2.
6Circulated indocument WT/COMTD/LLDC/W/2.