RESTRICTED  
  
WT/COMTD/LDC/M/76  
 
10 March 2016  
(16-1421)  Page: 1/10  
Sub-Committee on Least Developed Countries 
Seventy-Sixth Session    
 
NOTE ON THE MEETING OF 12 OCTOBER 2015 
Chairperson: Ambassador Roderick Van Schreven (Netherlands) 
 
A. ADOPTION OF TH E AGENDA .................................................................................... 1  
B. MARKET ACCESS FOR LEAST DEVELOPED CO UNTRIES ............................................. 1  
-  Market Access for Products and Services of Export Interest to Least Developed 
Countries (WT/COMT D/LDC/W/60) ...................................................................................... 1  
C. TRADE-RELATED TECHNICAL ASSISTANCE AND CAPACITY BUILDING 
INITIATIVES FOR LEAST DE VELOPED COUN TRIES ........................................................... 7  
-  An Update on the Enhanced Integrated Framework (EIF): Oral Report by the EIF 
Executive Secretariat ......................................................................................................... 7  
D. FOLLOW-UP TO MINISTERIAL DE CISIONS/DECLAR ATIONS .................................. 10  
E. OTHER BUSINESS .................................................................................................. 10  
 
 
A. ADOPTION OF THE AGENDA 
1. The Chairman thanked Members for their participation in the least developed country (LDC) 
event titled "Twenty Years of Supporting the Integration of Least Developed Countries into the 
Multilateral Trading System" held that morning. The event had been organized by the Secretariat 
under the aegis of the Sub-Committee on Least Developed Countries (hereinafter the "Sub-Committee") as part of the commemoration of the WTO's 20
th Anniversary. He considered 
the discussion rich which highlighted the achievemen ts of the past and future challenges of the 
integration of LDCs into global trade. He hoped that the event had encouraged Members to further 
prioritize and take forward LDC issues at the WTO and at the Tenth WTO Ministerial Conference 
(MC10).  
2. The Sub-Committee adopted the draft agenda contained in document 
WTO/AIR/COMTD/LDC/3. 
B. MARKET ACCESS FOR LEAST DEVELOPED COUNTRIES 
- Market Access for Products and Services of Export Interest to Least Developed 
Countries (WT/COMTD/LDC/W/60) 
3. The Chairman recalled that according to the Work Programme for the LDCs, the Secretariat 
had been preparing a document every year to facilitate the annual review of market access for 
products originating from LDCs. The 2015 review contained in document WT/COMTD/LDC/W/60 provided an account of trends in LDC trade and market access conditions faced by LDC exports. 
The Note also commemorated the 20
th Anniversary of the WTO by providing a historical account of 
the developments of LDC trade since 1995. He invited the Secretariat to present the Note. 
4. The representative of the Secretariat (Chief St atistician) presented the Note highlighting the 
key trends of LDC trade and market access condit ions. He mentioned that the time-frame of the WT/COMTD/LDC/M/76 
 
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  data covered the period up to 2013 or 2014 depending on the availability of statistics. In 
particular, the historical analysis of trade using balance-of-payment (BOP) statistics was only possible up to 2013 due to a change in the methodology for computing services trade.  
5. He noted that in the period 1995-2013, LDC ex ports of goods and services had grown by an 
annual average of 12.6%, higher than the 11.3% gr owth of developing economies. The growth in 
merchandise exports had accelerated since 2003, largely due to a rise in the prices of oil and other commodities, while exports of services had risen since 2006, due to the dynamism of tourism and 
higher prices of transport services.  
6. He mentioned that following the drop in exports during the 2008-2009 economic crisis, LDC 
exports rebounded in 2011 to reach a higher than pre-crisis level. After 2011, LDC exports were constrained by an unfavourable environment, in particular by falling prices of primary 
commodities. Short-term trade statistics showed th at LDC manufacturing exports declined in the 
first two quarters of 2015. 
7. He went on to elaborate on the prices of primary commodities, which influenced a large part 
of the variation in LDC exports. The prices of ener gy, in particular of oil, increased the most since 
1995 and were five times higher in 2014 as compared to 1995. He also noted that the prices of minerals and non-ferrous metals followed a similar trend to that of energy prices. On the other 
hand, prices of manufactures stayed the same in the period 1995-2014.  
8. He proceeded to describe the top ten merchandise products for which LDCs experienced the 
highest increases in world market share between 1995 and 2014. He explained that LDCs gained 
considerable world market share in a number of primary commodities such as cobalt, precious 
stones (excluding diamonds) and copper. In addition, a few textile and clothing products were 
among the top products registering growth in market share.  
9. Regarding the geographical distribution of LDC merchandise exports, he said that the share 
of LDC exports to developing countries increased from 30% in 1995 to 57% in 2014. The main 
reason for this sharp increase was the growing demand of China, which accounted for 23% of LDC exports in 2014, as compared to only 3% in 1995. Intra-LDC trade was estimated to account for 
5% of LDC merchandise exports in 2014. However, he noted that this was likely to be an 
underestimation since a significant part of trade among LDCs in Africa was not recorded. 
10. He indicated that the LDCs remained marginal participants in services trade. Between 1995 
and 2013, the share of LDCs in world exports of commercial services increased from 0.4% to 
around 0.7%. In the period 1995-2013, communications services, computer and information 
services, construction, travel, and transport were the most dynamic sectors, all recording double-digit average annual growth. He mentioned that it remained difficult for LDCs to integrate 
in services trade due to a number of constraints, including poor infrastructure, lack of labour skills 
and deficient financial resources. However, he pointed out that the annual growth for LDCs was higher than for the rest of the world though LDCs had started from a low basis.  
11. He went on to elaborate on the concentration of LDC services exports, which were 
dominated by a few players including Afghanis tan, Cambodia, Ethiopia and Tanzania. He 
mentioned that most of the services exported b y  L D C s  w e r e  c o n c e n t r a t e d  i n  l o w  t o  m i d d l e  
skill-intensive sectors such as travel, which most ly corresponded to tourism, and transport. He 
highlighted the importance of tourism for income and employment creation due to its 
labour-intensity and its linkages to other sectors in the economy such as agriculture, construction, 
communications and utilities. He noted that the number of international tourist arrivals to LDCs 
increased from 4 million in 1995 to 24 million in 2013, of which two-thirds were regional tourists. 
While travel services constituted 45% of LDC se rvices exports in 2013, transport was the second 
largest sector (24%). He noted that between 1995 and 2013, air transport and other transport 
services, including land transport, increased in im portance in comparison to sea transport services. 
12. Regarding services trade by mode of supply, he  indicated that more than half (52%) of LDC 
services exports took place through mode 2 (con sumption abroad), mainly due to tourism, and 
30% through mode 1 (cross-border), mainly due to transport, communication and insurance 
services.  WT/COMTD/LDC/M/76 
 
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  13. In terms of preferential market access to de veloped markets, he noted that incremental 
progress had been made and that LDCs enjoyed the biggest preference margin in agriculture 
products. There was increasing convergence between  LDCs and developing countries in the share 
of duty-free imports into developed markets,  which could be explained by decreasing 
most-favoured nation (MFN) tariffs in developed markets and by the progressive phasing-out of 
the Multi-Fibre Arrangement (1974-1994).  
14. Lastly, he commented on the preferences granted by developing countries to LDCs, which 
had been increasing since 2006. In 2013, LDCs benefited from a preference margin of some 5% 
compared to most-favoured nation (MFN) tariffs. Preference margins were highest in textiles and apparel and also significant in agriculture. He informed Members about difficulties in compiling statistics on this indicator. In this regard, he urged Members to notify data on their preferences to 
the Secretariat so that the information provided in the Note could be updated. 
15. The representative of Bangladesh, on behalf of the LDC Group, thanked the Secretariat for 
the presentation and the Note. He considered the hi storical perspective on LDC trade starting from 
1995 as useful. He said that over the years this study by the Secretariat had become a major 
output of the Sub-Committee. It constituted a ve ry important basis for the LDCs to review their 
trade performance and trade conditions in international trade.  
16. He stated that while there had been some progress in LDC trade, there was no reason to be 
complacent. LDC exports still accounted for an insignificant 1.17% of world merchandise trade, which represented an improvement as compared to less than 0.5% in 1995. However, there had been no qualitative change in LDC trade as the price of oil continued influencing the export 
revenues of LDCs. For instance, in 2014, the LDCs' share in world merchandise exports had 
slightly declined because of low oil prices. The share of LDCs in world merchandise exports increased since 1995 because of the increase of o il prices. He suggested including the evolution of 
LDC exports by product group vis-à-vis  t h e  w o r l d  i n  f u t u r e  r e p o r t s ,  a s  t h i s  w o u l d  g i v e  a  c l e a r  
picture of whether the LDCs were able to integrate into multilateral trade. 
17. He highlighted that the share of the top three products in LDC merchandise exports had 
increased from 40% in 1995 to 70% in 2014, which made LDC exports more vulnerable. He 
stressed the need for further in-depth analysis of the causes of such increase in export product concentration. He asked the Secretariat to clarify the level of aggregation of the top three products. He recalled that the WTO Plan of Action for the LDCs adopted at the Singapore 
Ministerial Conference emphasized that priority should be given to export diversification. In this 
regard, he suggested that the Sub-Committee take the initiative to identify possible actions by the WTO on the basis of an in-depth analysis.  
18. He noted that the situation in services trade had started to improve but remained 
challenging. There had hardly been any improvement in LDCs' share in world commercial services trade. In 1995, the LDCs had accounted for 0.4% of world commercial services exports as 
compared to 0.68% in 2013. LDC services exports were not diversified, dominated by a few LDCs 
and concentrated in tourism. Referring to the Secretariat Note, he mentioned that the LDCs' participation in services trade remained marginal due to poor infrastructure, limited skills and a lack of financial resources. 
19. He indicated that the LDCs had registered some growth in certain services sectors such as 
transport and communication services, although from a very low base. He expressed his hope that the operationalization of the LDC services waiver would boost LDC services exports. However, to 
improve their services trade, LDCs would need continuous efforts from Members and access to 
sectors where they had some supply potential such as mode 4. While acknowledging the difficulties 
and the efforts of the Secretariat to compile data  on services trade, he requested that more 
information on market destinations of LDC services exports be included in future editions of the 
Note. 
20. He expressed his concern about the growing deficit of LDC trade, particularly in 
manufacturing, over the last two decades, as it had reached a new high in 2014 with 
US$59 billion. In this context, he remarked that it could be appropriate to consider providing policy 
support to LDCs to stimulate growth in manufactu ring and processed agriculture products within 
the special and differential treatment (S&D) architecture of the WTO, including greater market WT/COMTD/LDC/M/76 
 
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  access to these products. He stressed that LDCs n eeded to export more to finance their imports, 
which required effective market access for all their export products.  
21. He noted that the analysis on market access conditions for LDC exports was useful in 
understanding the benefits accrued by the LDCs in the selected markets. He asked the Secretariat 
to clarify whether the weighted applied duty faced by the LDCs, as provided in Table 14, 
represented the actual duty faced, assuming the fu ll utilization of preferences. He also indicated 
that the LDC Group may request the Secretariat to assess the impact of favourable rules of origin 
introduced by preference-giving countries.  
22. With regard to progress in market access for LDC products, he stressed the need for further 
measures from the trading partners of LDCs. While both developed and developing Members had taken concrete initiatives to provide duty-fr ee and quota-free (DFQF) market access to LDCs, 
important gaps remained in certain markets. He indicated that research by a number of 
institutions suggested that the LDCs' major trading partners could provide them with DFQF market access by taking into account the interest of all exporters to those markets. He also expressed his 
hope for a positive outcome at MC10 on this issue. He further hoped that his suggestions made on 
the contents of the Note would be included in the next edition. 
23. The representative of Nepal said that the repo rt gave a comprehensive picture of LDC trade 
and market access over the last 20 years. He was encouraged by the fact that over the last 
20 years the share of LDCs in world trade had do ubled and that the average growth of trade had 
been around 12.6%, which was higher than the world average growth. However, the share of 
LDCs still remained very low, constituting 1.23% of world trade. The share of LDCs in world 
services trade (0.68%) was even more discou raging. He expressed concern at the high 
concentration of LDC exports in both goods and services, which made their economies volatile and susceptible to external shocks. He noted that out of 48 LDCs, only five had a trade surplus in 
2013, which reflected their vulnerable position.  
24. He expressed his gratitude to Members, whic h had implemented preferential market access 
schemes to LDCs in line with the Hong Kong and Bali Ministerial Decisions. However, since some 
developed countries were still not providing full DF QF market access to all LDCs, he urged them to 
extend their DFQF coverage up to 100%, as provided for in the WTO Ministerial Decisions. Since some export items of particular interest to LDCs such as textiles, garments or pashminas were not included in several preferential schemes of de veloped and developing countries, those schemes 
had not supported LDCs in an effective manner. He also added that DFQF market access and 
simplified rules of origin were closely linked, LDCs needed to consider these two aspects in totality.  
25. He was encouraged by the notification submitted by 15 developed and developing country 
Members to accord preferential treatment to LDCs' services and service suppliers in line with the 
Bali Decision on the LDC Services Waiver. He ca lled upon remaining Members to also implement 
the Waiver to help improve the share of LDCs in services trade.  
26. He mentioned that, in addition to tariffs, non-tariff measures (NTMs) in different forms and 
types had also been discouraging LDCs in penetrating international markets. He called upon Members to exercise due restraint while imposing any stringent sanitary and phyto-sanitary (SPS) 
and technical barriers to trade (TBT) measures on LDC products as well as to take into account 
LDC-specific constraints while applying any new measures. 
27. In conclusion, he noted that despite progress , LDCs were not benefiting much from the 
rules-based, multilateral trading system, which was reflected by their marginal share in both 
merchandise and services trade. He called, theref ore, for more meaningful market opportunities 
for LDCs, in particular for the full and faithful implementation of the LDC-specific Bali decisions 
regarding DFQF market access, services waiver, pr eferential rules of origin and cotton. Moreover, 
targeted and tailor-made technical assistance such as the Enhanced Integrated Framework (EIF), 
Aid for Trade (AfT), the Standards and Trade Development Facility (STDF) also needed to be scaled up to help LDCs enhance their productive capacity. 
28. The representative of Haiti said that the report clearly showed the weaknesses in the 
structure of LDC exports, which were mainly conc entrated in three products: minerals, fuels and 
textiles. He mentioned that it was also worth as king how many LDCs exported fuel, which was the WT/COMTD/LDC/M/76 
 
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  most important export product for the LDCs as a group. He joined the delegation of Bangladesh in 
requesting the Secretariat to present a detailed pr oduct analysis pertinent to LDCs in the future 
edition of the Note. 
29. He indicated that LDCs had diversified the geographic destination of their exports. From 
1994-2014, LDC exports to developing economies increased from 30% to 57%. In this regard, he 
mentioned that it was also worth asking if the shift of market destinations to developing countries was linked to difficulties encountered when penetrating markets of developed countries. 
30. He went on to say that services exports were dominated by a small number of LDCs and 
mainly concentrated in mode 2, in particular tourism. He encouraged developed and developing Members, which were in a position to do so, to accord preferential access to LDC services and service suppliers, as it would allow LDCs to diversify their services exports. 
31. Lastly, he encouraged the WTO and its partners to provide LDCs with targeted assistance so 
that they would be able to diversify their exports and take advantage of opportunities available in international trade to further promote their development. 
32. The Chief Statistician responded to the comments made in relation to the Note. With respect 
to the observation from the representative of Haiti concerning the need for detailed 
country-by-country analysis to better gauge the situ ation of each LDC, he explained that the Note 
provided trends at a global level. In this regard, he noted the heterogeneity of the LDC Group and 
that different categories of LDCs had been experiencing different challenges in integrating into global trade. He suggested that one way to look at LDC trade in a disaggregated manner would be to look at issues with a thematic focus. He soug ht guidance from Members to advance this type of 
work.   
33. Responding to the intervention of Bangladesh, he mentioned that the aggregation level used 
for the calculation of the concentration index was rather high, i.e. at the Chapter (2-digit) level of 
the Harmonized System (HS). Nevertheless, he re garded the aggregation level as adequate, since 
the products within HS Chapters tended to be  homogenous and therefore the risk of price 
fluctuation was captured.  
34. With respect to Table 14 on market access, he confirmed that preferential market access 
was calculated based on the assumption of full preference utilization. While some Members such as Canada, the European Union and the United States notified information on utilization, it would be difficult to introduce information on utilization rates for all importing trading partners of LDCs. He 
said that since the data on preferences received  by the WTO were incomplete, specific work on 
utilization of preferences had been a challenge. 
35. The representative of India noted the share of LDC exports in world merchandise trade had 
stood at 1.2% in 2013, more than double its shar e of 0.5% in 1995. He remarked on the share of 
LDCs in services exports, which had still been very low at 0.7% in 2013 in comparison to 0.4% in 1995. Over the period 1995-2013, the LDC export  of goods and services grew by an annual 
average of 12.6%, markedly higher than the 11.3% average for other developing economies. 
However, in 2014, LDCs underperformed in comparison with other developing countries, primarily due to a drop in fuel prices. The value of LDCs' merchandise exports amounted to US$207 billion, after a decrease of 2.1% against the preceding year.  
36. He also noted that the growing share of deve loping economies as markets for LDC exports 
increased from 30% in 1995 to 57% in 2014. Among the developing countries, India had been the second largest export destination for LDCs in 2013. LDC exports to India had grown from 
US$0.7 billion in the year 1995 to over US$14.3 billion in 2013. 
37. He expressed concern that LDC exports remained highly concentrated in a few products, 
mainly primary commodities for merchandise exporters and tourism receipts for services 
exporters. He stressed the importance of taking concrete steps to provide better market access to 
products from LDCs. He also underscored the import ance of expanding the export capabilities of 
LDCs through diversification and infrastructure development. In this regard, enhanced market 
access should go hand-in-hand with enhanced Aid for Trade and trade capacity building.   WT/COMTD/LDC/M/76 
 
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  38. He informed Members that India had recently submitted a notification relating to its 
preferential treatment to services and service su ppliers of LDCs. Similar to its DFQF scheme for 
goods, with duty-free market access on 96% of it s tariff lines and preferential duties on another 
2.2%, India also accorded substantive preferential access to LDCs in services. He pointed out that 
India’s services waiver notification was comprehensive, covering substantive preferences under 
mode 4, including contractual service suppliers  and independent professionals in about eight 
sectors and subsectors. In accordance with the LD C request, India granted preferences in the new 
mode 4 category of installers or servicers. In addition, India granted preferences in about 15 new 
subsectors and significantly improved its existing GATS commitments.  
39. Under technical assistance and capacity building , in addition to several ongoing schemes, he 
informed Members that India had designed new schemes and programmes for LDC services and 
service suppliers in several sectors so that they wo uld be able to effectively utilize the preferences 
that they have been granted to the LDCs. He also noted that India would waive visa fees for people from LDCs applying for Indian business and employment visas. Lastly, he stressed that 
India did its utmost to deliver on the LDC cause, both in goods and in services, in order to help 
LDCs to further integrate into the global economy.  
40. The representative of China thanked the WTO Secretariat for its efforts in preparing the 
report, which provided comprehensive and detailed information on the trade-related development 
of LDCs over the past two decades. He said that  China had always attached great importance to 
LDCs, with a view to helping LDCs fully explore their economic potentialities. He considered the WTO to be a suitable platform to discuss and ad dress the development needs of LDCs. As one of 
the developing country Members, China was making all possible efforts within its capacity to 
expand its economic cooperation and provide possible assistance to other developing Members, especially to the LDCs. China had been the largest export market of LDCs since 2008, accounting 
for 23% of total LDC exports in 2014, as compared to only 3% in 1995. 
41. He informed Members that China had taken several important steps to further expand 
market access for LDCs in recent years. It prov ided duty-free treatment to 97% of imports from 
LDCs since 2015, up from 95% in 2013. Furthermor e, China was the fifth WTO Member to notify 
services preferences for LDCs. In this regard, he encouraged other Members to complete their 
internal procedures and make notifications to the Council for Trade and Services as soon as possible.  
42. Furthermore, he informed Members on how China had also been contributing to the capacity 
building of LDCs under the WTO framework. In July 2011, China had established the China LDCs and Accession Programme ("China Programme"). The Programme contained five pillars, namely: 
(i) the WTO Accessions Internship; (ii) the Annual WTO Accession Roundtable (the China 
Roundtable); (iii) the LDCs' Participation in WTO Meetings; (iv) the South-South Dialogue on LDCs and Development; and (v) the LDCs' Trad e Policy Review Follow-up Workshops.  
43. He mentioned that the China Round Table was one of the core pillars of the China 
Programme, aiming at facilitating and accelerating LDC accessions, as well as providing post-accession support to LDCs. The Fourth China Round Table would be held in Nairobi prior to MC10 
from 13 to 14 December 2015. He thanked the Government of Kenya, the WTO Secretariat, and all 
Members partic ipating in the Round Table for their support.  
44. He also commented on certain technical issues of the Note. Firstly, he suggested that the 
Secretariat to update the data in Table 17 as China had been providing duty-free treatment to 
95% of imports from LDCs since 2013, and the rate had been further increased to 97% since 
2015. Secondly, he suggested using consistently the term "developing Members", which had been 
well accepted in various WTO documents, instead of "developing countries" in the report. Lastly, 
he reiterated China's commitment to working closely with other Members for a successful MC10, 
including for meaningful achievements in issues where LDCs had special interests. 
45. The Chief Statistician urged delegations to notify data as without proper notification to the 
WTO Integrated Data Base (IDB) the Secretariat could not take into consideration preferential 
treatment in the Secretariat Report.  WT/COMTD/LDC/M/76 
 
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  46. The Chairman noted that market access issues constituted a very important element of the 
LDC Work Programme. He trusted that the analysis of LDC trade and market access conditions was 
making an important contribution to the Sub-Committee's efforts to review the different factors that shape LDC trade.  
47. He said that the value of LDC exports had been growing fast in the last two decades but that 
LDCs had not gained in relative terms. In terms of export diversification, LDC exports remained 
highly concentrated in primary commodities for goods exporters and tourism revenues for services 
exporters. This export concentration made LDCs su sceptible to external shocks. In the last decade, 
trade growth of LDCs had been driven primarily by increasing commodity prices. He expressed his 
concern about the recent decline in export prices of primary commodities, in particular of oil and metals, which had brought the merchandise trade deficit of LDCs to a new record high of almost 
US$60 billion in 2014. 
48. However, he noted that a lot of progress had been made over the last decade in realizing 
DFQF access for LDC products. Progress had also be en made with respect to the operationalization 
of the services waiver. So far, 15 Members had submitted notifications. In order to help LDCs 
utilize these preferences, Members would need to  consider providing support to the LDCs for 
building skills and capacity of their domestic services sectors. 
49. He commented on how the meeting's deliberation had reminded Members that the LDCs 
remained marginalized participants in the multilateral trading system. Increasing their participation in trade and diversifying their export  structure would require both national efforts as 
well as concerted international interventions in the areas of market access as well as technical 
assistance and capacity building. Therefore, he encouraged Members to increase their efforts in 
working towards a significant LDC package in Nairobi.  
50. He also came back to a point which had been raised by the LDCs in the previous meeting. 
He informed Members that he had discussed with the Secretariat the possibility of having a more 
in-depth discussion of the factors that underlie the trends in LDC trade as shown by the statistics. 
He noted that the objective of such discussion wo uld be to gain a deeper understanding of the 
factors that hampered the participation of LDCs in world trade in order to inform policies aimed at 
increasing exports, drawing conclusions from th e statistics, and understanding enhanced export 
competitiveness and diversification. He said that discussions could only be fruitful if Members, particularly LDCs, played an active role in them. Therefore, he planned to remain in touch with 
Members about the possibility of having such an open discussion. He reiterated the need for good 
statistics and good notifications, also from the LDCs, in order to have an up-to-date database in the WTO.  
51. He suggested that the Sub-Committee take note of the document contained in 
WT/COMTD/LDC/W/60 as well as the statements made. He would keep the item on the agenda for 
the next meeting. 
52. It was so agreed. 
C. TRADE-RELATED TECHNICAL ASSISTANCE AND CAPACITY BUILDING INITIATIVES 
FOR LEAST DEVELOPED COUNTRIES 
- An Update on the Enhanced Integrated Framework (EIF): Oral Report by the EIF 
Executive Secretariat 
53. The Chairman recalled that the Work Programme for the LDCs mandated the 
Sub-Committee to monitor capacity-building initiatives taken in favour of LDCs to promote 
information flows and coordination. 
54. He noted that the EIF was the only global Aid-for-Trade programme exclusively designed for 
the LDCs. Members were aware that at the last Gl obal Review of Aid for Trade, Phase Two of the 
EIF was launched, which would run until 2022. Members were also aware that at the outset of 
MC10, a pledging conference would be held on 14 December 2015 with a view to replenishing the EIF Trust Fund for Phase Two. He invited the repr esentative of the EIF Secretariat to provide an 
update on the EIF. WT/COMTD/LDC/M/76 
 
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  55. The representative of the EIF Secretariat, Executive Director, recalled that at the last 
meeting in April, he had provided an update on the work being undertaken to define the scope and 
modalities for Phase Two of the EIF. Subsequently, in May 2015, the programme framework for the Phase Two of the EIF was endorsed by the EIF partnership.  
56. Regarding the main elements of Phase Two of the EIF, he noted that the EIF's purpose 
remained as a unique global partnership exclusiv ely dedicated to mobilizing trade for development 
of LDCs through economic growth, poverty reduction and job and income opportunities. This was 
captured in the EIF's new tag line - trade for LDC development. In this regard, Phase Two would 
focus on targeting sustainable results through more tailored and customized approaches depending on the countries' needs and priorities, and on reinforcing and reinvigorating the partnership with donors, LDCs and agencies to ensure accountability for their respective 
responsibilities.  
57. He went on to say that while there had been no change in the basic design of the structure, 
scope and operations of the EIF, three changes were envisaged: (i) sharpening the diagnostic 
trade integration studies (DTIS) and better synchronizing them with strategic development 
priorities and processes in the country; (ii) providing LDCs with sustainable support for a 
maximum of five years instead of current practice of two years; and (iii) successful leveraging of 
additional funds should not constitute a precondition for the EIF's productive capacity-building 
support. 
58. An element in Phase Two of the EIF would be to  strengthen EIF's relevance in the context of 
major trends in trade such as regional integration and global value chains. Furthermore, the EIF 
would seek to enhance the relevance of the services sector, in particular in the context of the LDC 
Services Waiver, helping LDCs diversify in services sectors other than tourism, as well as helping LDCs take advantage of the market access openings in services. Another element would be to 
involve the private sector not only as a provider of skills and technology, but also as a provider of 
resources.  
59. He continued by saying that the Phase Two of the EIF would see an improvement in 
governance. The EIF Board would focus on a strategic decision-making role. There would be 
explicit enforcement of conflict of interest prov isions and authority would be delegated to the EIF 
Executive Secretariat for approving certain projects apart from those that were in the nature of productive capacity building.  
60. The programme management would be strengthened through actions such as the 
strengthening of the Executive Secretariat for supervising and monitoring the effective implementation of the programme in Phase Two through improved business processes and 
management information systems to support results-based management, and additional human 
resources to enhance the Executive Secretariat programme management capacity. Further actions would include the consolidation of country portfolios, the decentralization of Executive Secretariat 
staff to the regions and explicit provisions for performance evaluation review of the Executive 
Director by the EIF Board.  
61. Changes to increased efficiency included: (i) extended or repeated Executive Secretariat 
missions supporting project development and formulation, facilitated through a regional structure 
of the Executive Secretariat; (ii) simplified appraisal documentation; (iii) reduced processes and 
procedures along the programme and project cycle;  and (iv) delays in the implementation of 
projects, in particular DTIS/updates would be addressed through a focus on improving contractor 
performance by stronger mutual accountability mechanisms and a stricter application of 
competitive bidding provisions. The log-frame fo r Phase Two was being strengthened and would 
soon be finalized, and a full risk management assessment would be prepared as part of the new 
management plan.  
62. The final change with regard to Phase Two was related to value for money. In this regard, 
the terms of reference for the Trust Fund Manager function would be revised and put to the market. There would be a ceiling on administrative costs against a predictable denominator value. 
A proposal for additional cost reductions would be identified where possible and reflected in the 
change of management plan. The indicative budget estimate for Phase Two was between 
US$274-US$320 million. He was confident that these major changes would produce a more WT/COMTD/LDC/M/76 
 
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  dynamic and results-driven EIF, demonstrating incr eased efficiency, effectiveness, sustainability 
and value for money.  
63. He went on to say that Phase Two of the EIF was launched on 1 July 2015 during the Global 
Review of Aid for Trade at the WTO, with particip ation of various donor countries as well as LDCs. 
It also featured the participation of LDC and Donor Ministers and representatives from Lesotho, 
Nepal, Chad, Vanuatu, Norway, Sweden and Germany. A major highlight was Norway's pledge of US$19 million over five years for Phase Two. He expressed his gratitude to the Government of 
Norway for their generous pledge.  
64. He also informed Members of reforms and measures that had been initiated since the 
beginning of the year and the adoption of the programme framework document. Such measures included: (i) Efficiency gains plan to streamline programme-related processes and procedures; 
(ii) strengthening of the Executive Secretariat through the hiring of new staff members as well as 
through the regionalization of staff; (iii) revised DTIS Guidelines (iv) revised Tier 2 project guidelines and sustainability guidelines; (v) the Phase Two log-frame; (vi) bidding of the Trust 
Fund Manager; and (vii) revised terms of referenc e for the EIF Board. He said that an EIF Board 
meeting would take place from 18-19 November in  Lao PDR to approve the changes which would 
subsequently be adopted and included in the compendium of the EIF.  
65. He reiterated that a Pledging Conference to  replenish the Trust Fund would be held on 
14 December 2015 in Nairobi. The WTO Director-General would co-chair the Conference. Statements would be made by the LDC Coordinato r, the Commerce Minister from Bangladesh, and 
by a number of LDC Trade Ministers. He noted th at he was looking forward to continued support 
from existing donors as well as that of new donors, to reinforce the EIF's unique global role in 
using trade as a tool for economic growth and development in LDCs. 
66. In conclusion, he thanked the EIF partnership – the donors, the LDCs and the agencies - for 
their commitment, contribution and hard work. He said that the EIF was well on track for an 
exciting and innovative Phase Two and that he looked forward to continue working with Members to help the LDCs fully realize their trade potential.  
67. The representative of Bangladesh, on behalf  of the LDC Group, thanked the Executive 
Secretariat for the detailed report and for updating  the meeting on future plans of the programme. 
He noted that the EIF had evolved over the years and had certainly addressed some LDC needs but felt that more could be done. He welcomed the decision by the EIF Board and the EIF Steering 
Committee for the adoption of the EIF Phase Two from 2016 to 2022, and the launch of Phase Two 
on 1 July 2015, along with the EIF Pledging Conference.  
68. He urged donors to provide funding for Phas e Two and to move from commitments to the 
actual replenishment in time to avoid any disruption of the programme which was scheduled to 
start on 1 January 2016. He expressed hope that LD Cs would be able to receive adequate support 
under Phase Two of the EIF to build their productive capacity.  
69. The representative of Haiti associated itself with the statement made by Bangladesh on 
behalf of the LDC Group. He asked the Executive Di rector of the EIF to share his intervention with 
Members. 
70. The Chairman thanked the Executive Director for his update. He noted that the EIF remained 
an important capacity-building initiative for the LDCs. He emphasized that its unique role in 
promoting growth and development through trade in the LDCs was recognized in the recently 
adopted UN Sustainable Development Goals. He re cognized that Phase Two of the EIF would mean 
streamlined processes, strengthened programme and results-based management, enhanced 
governance and increased value for money. He invited Members to consider making contributions to Phase Two of the EIF so that the programme could continue its momentum by building on the 
solid results achieved so far. In this regard, he wished the EIF a successful pledging conference in 
Nairobi. 
71. He suggested that the Sub-Committee take note of the report made by the EIF Executive 
Director as well as the statements made. WT/COMTD/LDC/M/76 
 
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  72. It was so agreed. 
D. FOLLOW-UP TO MINISTERIAL DECISIONS/DECLARATIONS 
73. The Chairman recalled that at the last Sub-Committee meeting, the LDC Coordinator had 
expressed the need to have an item on the agenda concerning "follow-up to Ministerial 
Declarations and Decisions" as per the WTO Work Programme for the LDCs. He also recalled that 
the LDC Coordinator had proposed to discuss this item at least once a year, on the basis of a Secretariat report. At the previous meeting, on e Member had expressed the need to revert to 
capital on this proposal. He hoped that necessary consultations had been undertaken. He invited 
Members to share their views on the request made  by the LDC Coordinator, in particular with 
respect to whether the Secretariat should proceed with the preparation of a report.  
74. The representative of the United States mentioned that her Government was committed to 
implementing Ministerial Decisions and Declaratio ns related to the LDCs. She underlined that the 
Secretariat report should be structured as a factual compilation of the decisions and as an indication of the progress of implementation in relevant WTO committees. She recommended that 
the report be a collection of data rather than an analysis or scorecard. In this regard, the report 
presented to the General Council on the Bali outcomes could be a useful model. She noted that her delegation could join a consensus asking the Secretariat to produce such a report.   
75. The representative of Bangladesh, on behalf of  the LDCs, agreed with the statement of the 
US about the need to have a factual report and not an analysis, which would be an important input 
for a discussion on this issue. 
76. The Chairman reiterated that in light of no further interventions, Members could agree to the 
preparation of a Secretariat report on the progress made in the implementation of Ministerial 
Declarations/Decisions taken in favour of LDCs pursuant to the WTO Work Programme for the LDCs. He asked the Secretariat to prepare this report for consideration by Members for the next 
Sub-Committee meeting scheduled for the first quarter of 2016. 
77. It was so agreed. 
E. OTHER BUSINESS 
78. The Chairman thanked Members for their active participation in the 20th Anniversary LDC 
event. He also thanked the Secretariat for prepar ing a background Note for the event, which was 
circulated as WT/COMTD/LDC/W/61, which he cons idered provided a good summary of the past 
20 years, including policies and their effects, as well as the challenges and opportunities that 
remained ahead. 
79. Since there were no suggestions for any further item, he informed Members that the next 
meeting of the Sub-Committee was tentatively scheduled for the first quarter of 2016, and that 
the exact date would be communicated in due course.  
80. He wished Members success in their endeavours for the rest of the year, including a 
successful MC10. He also looked forward to a meaningful package for LDCs at MC10.  
81. In absence of any other business, the meeting was adjourned. 
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