./.RESTRICTEDWORLD TRADE
ORGANIZATIONWT/GC/W/373
15 October 1999
(99-4424)
General Council Original:  English
PREPARATIONS FOR THE 1999 MINISTERIAL CONFERENCE
Concerns of Small Economies1about their External Trade and Development
Proposal for Immediate Decision at Seattle
Communication from Jamaica and Mauritius
The following communication, dated 5 October 1999, has been received from the Permanent
Mission of Jamaica.
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Background
1. Technical studies as well as discussion in intergovernmental fora have identified a number of
constraints faced by small countries in their external trade and economic development.  These include
but are not restricted to the following:
- Most small economies do not have critical minimum size.  Very small domestic
markets severely constrain economies of scale making it difficult to use the local
market as a base for export development.
- Greater volatility in income growth than in larger countries - among the contributory
factors being exposure to natural hazards - which results in a high degree of
vulnerability.
- Limited natural resources resource endowments leading to a high degree of product
and market concentration in their exports.
- High cost of trade transaction (imports, exports) inter alia , due to their
land/sea-locked characteristics.
- Administrative, institutional and human resource limitations which adversely affect
efficiency and capacity-building throughout the economy.
2. In recognition of these and other inhibiting factors, governments of several small countries
have urged that the international trade rules and related development supports be made more
compatible with the integration of their countries in to the multilateral trading system and their overall
economic development.  Among areas where trade rules can be adapted are:
                                                     
1 All references to "small economies" in the text are made in relation to paragraph 6 of the Geneva
Ministerial Declaration, May 1998 (document WT/MIN(98)/DEC/1) and also in relation to the documents
WT/COMTD/M/14 and WT/COMTD/W/50 and Corr.1.WT/GC/W/373
Page 2
- Transitional trade preferences.  For those countries historically dependent on trade
preferences for their principal trading part ners, in order to bolster the competitive
position of their traditional exports in those markets are needed to complete the
process of preparation for engaging in open competitive trade in a globalized world
economy.
- Longer transitional periods for trade liberalization thereby giving these countries
more breathing space to transform their structures of production and marketing and to
upgrade human skills.
- Adoption of concrete measures to address food security in cases where small
countries are net food-importing developing countries.
- Assistance with the modernization of sectors on which countries may be heavily
reliant for employment income and foreign exchange earnings - for example - the
textiles and garment sector.
- More flexible arrangements for the establishment of regional trade agreements which
can play a pivotal role in advancing the development process and provide first steps
towards the integration of these countries in the multilateral trading system.
- Higher thresholds for the application of export subsidies, which are not subject to
countervailing measures.
3. Ministers, having regard to the desire of smal l countries integrated in the multilateral trading
system and recognizing the peculiarities of thei r external trade and development, request the
Committee on Trade and Development to elaborate a Work Programme to address the constraintsfaced by these countries and to submit its recommendations to the General Council for adoption prior
to the Fourth Ministerial Conference.
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