RESTRICTED  
  
WT/WGTDF/M/30  
 
23 January 2015  
(15-0503)  Page: 1/8  
Working Group on Trade, Debt and Finance    
 
 REPORT OF THE MEETING OF 11 NOVEMBER 2014 
The thirtieth meeting of the Working Group on Trade, Debt and Finance (WGTDF) was held on 
11 November 2014 under the Chairmanship of Ambassador B. de Crombrugghe (Belgium). In his 
introductory remarks, the Chairman detailed the proposed agenda for the meeting, contained in 
WTO/AIR/4360. Under point one, Members, after ha ving consulted their capitals, would continue 
the discussion on exchange rates and trade, on th e basis of the submission presented at the last 
meeting by the delegation of Brazil under WT O Document WT/WGTDF/W/73. Point two of the 
agenda would focus on trade finance, in particular  on the Members' views on issues pertaining to 
the availability of trade finance in developing countries, based on the factual note commissioned to the Secretariat at the last meeting and circulated since September 2014, as WTO Document 
WT/WGTDF/W/74. Under point three of the agenda, Me mbers would, first, listen to the delegations 
that had requested at the last meeting that the Wo rking Group revive the debt pillar of the Group's 
mandate, and then, listen to the Chairman regard ing the annual report to be produced for the 
General Council in December. The Chairman asked whether the agenda could be adopted.  
The Working Group adopted the agenda.  
1  AGENDA ITEM I: EXCHANGE RATES AND TRADE – FURTHER DISCUSSION BASED ON THE SUBMISSION BY BRAZIL (WT/WGTDF/W/73) 
1.1.  The Chairman summarized the state of the discussion on the relationship between exchange 
rates and trade, and the main elements contai ned in Document WT/WGTDF/W/73. Brazil was 
proposing: (1) a continuation of the ongoing dialogue with the IMF, in the form described in its 
proposal, (2) the commissioning of a discussion paper to be prepared jointly by the WTO, the IMF, 
and the World Bank – on how the "coherence ma ndate" is being implemented in the area of 
exchange rates and trade–, and (3) the commissioning  of a factual note to be drafted by the WTO 
Secretariat on the instances in which Article II.6 had been invoked. The Chairman welcomed the 
presence of the representative of the Internatio nal Monetary Fund (IMF), and invited Members to 
provide their views on Brazil's proposals, based on inputs provided by capitals. Before doing so, he 
gave the floor to the representative of Brazil for clarifications on the submission.  
1.2.  The Representative of Brazil described the submission as work in progress. While the 
relationship between exchange rates and trade wa s an important matter for the private sector of 
his country, it was also a systemic issue for the WTO, regardless of the currency situation of the 
moment. His delegation was respectful of the mandate of all international institutions involved. For 
example, there was no point in discussing monetary policies or the determination of equilibrium exchange rates, which were not in the WTO remit. His delegation was also mindful that the 
Working Group was not a negotiating group. His delegation wished to discuss only the trade effects 
of currency misalignments, not the causes. The focus of the submission was on the rights and obligations of Members, and on inter-institution relations. He made brief remarks on the three 
proposals made in Document WT/WGTDF/W/73. Regarding proposal one, there were areas which 
were in the remit of the IMF, and others which were within the mandate of the WTO; the idea behind the proposal was to foster dialogue between the two institutions. Proposal two was in line with the WTO coherence mandate as expressed in Article III.5 of the WTO Agreement, and 
mentioned the terms of the Ministerial Declaration on the WTO Contribution in Achieving Greater 
Coherence in Global Economic Policy-Making. The proposal did not foresee any new measures to be proposed by the staffs of the three institutions. He emphasized the factual and historical nature 
of proposal three, and its focus on the past implementation of Article II.6 of the GATT.  
1.3.  The Representative of the Separate Custom s Territory of Taiwan, Penghu, Kinmen and Matsu 
(Chinese Taipei) welcomed Brazil's submission. Earlier work by the Membership on exchange rates WT/WGTDF/M/30 
 
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  and trade had shown different points of view. Ex change rates volatility created uncertainty and 
difficulties for trade transactions. Conversely, exchange rate stability brought positive effects for trade activities, for example predictable or fore seeable policies for the exchange rate. This was 
why it was important for the WTO, the World Bank and the IMF to apply coherent policies, and to 
work together on this topic. It would be important for these three institutions to clarify their roles, 
and to come up with a joint, factual report, as proposed by Brazil, consistent with the mandate of the Working Group.   
1.4.  The Representative of Turkey thanked the de legation of Brazil for its latest paper, and for 
Brazil's efforts over the past three years for helping to improve the understanding on the 
relationship between exchange rates and trade, in all its dimensions: the economic interactions, the role of institutions, and the dialogue between the WTO and the IMF. In general, his delegation 
supported Brazil's proposals. The dialogue be tween the IMF and the WTO should continue in 
respect of each institution's mandate. His delegation was grateful for Brazil's clarification on how mandates of the various institutions involved in such a dialogue would be respected. It was unclear 
whether a joint paper on coherence could be produced, but this would certainly be a positive 
outcome for his delegation. The paper could highlight the role of each institution in fulfilling its part of the coherence mandate, notably the WTO in respect of completing the Doha Development 
Agenda, and also in pointing to any possible asymmetries in the fulfilment of such a mandate.   
1.5.  The Representative of India joined the othe r delegations in thanking Brazil for its latest 
submission. The deliberations in the Working Group had clearly pointed out that the examination 
of the relation between exchange rates volatility and misalignment on the one hand, and trade on 
the other, involved complex issues with no clear conclusion. However, the discussions held so far 
had been useful in understanding the various di mensions of this subject. In the context of 
proposals contained in the Brazilian submission, hi s delegation made the following points: (i) the 
discussion in the Working Group should be mindful of the mandate given by the Ministers; (ii) the 
jurisdiction and competencies of each international institution had to be respected; (iii) it was important to keep in clear focus the overall cont ours of the coherence mandate of the WTO; and 
(iv) any paper to be prepared by the Secretariat needed to be factual in nature. His delegation 
considered that, as part of the analytical work undertaken to date, the presentations by the IMF on the Fund's approaches and reflections relating to exchange rates, surveillance framework and 
associated topics, had been most informative. This dialogue should continue, in respect of the 
competencies of the respective institutions involved. 
1.6.  The Representative of Nigeria supported a ll the proposals contained in Brazil's submission, 
notably the need for the WTO to address the effect s of misalignments on trade as well as the need 
for an assessment of the state of implementation of the coherence mandate specifically concerning 
the interplay between exchange rates and trade. Ther e was a need, in this context, to differentiate 
the respective mandates of the WTO and of the IMF under the coherence mandate, while making 
sure that each jurisdiction be properly respected. His delegation believed that the WTO needed to 
continue its advocacy and information role, consistent with the mandate of this particular Working Group. The delegation of Nigeria was ready to engage actively in future discussions of the Working Group on this topic. 
1.7.  The Representative of the Russian Federation  thanked Brazil for the amount of work on this 
issue. The relationship between exchange rate s and international trade was a sensitive one, 
requiring a systematic approach. For the sake of synergies and coherence, the Representative 
recognized the need for engaging into a close dialogue with IMF on this matter. Her delegation 
believed that more in-depth research was warrant ed, and that the Working Group on Trade, Debt 
and Finance was the suitable place for such anal yses, exchange of views, and experiences. The 
delegation of the Russian Federation wished to express its readiness and willingness to participate 
in the planned discussion. 
1.8.  The Representative of China welcomed Brazil's detailed explanations on its recent 
submission. China had joined the consensus three ye ars ago, as it believed that the WTO was the 
right place to pursue analytic and technical research  on the impact of exchange rate volatility on 
trade flows.  His delegation had learned from prev ious discussions that the topic could be sensitive 
and controversial. The five questions raised by former Chairman of the Working Group, 
Ambassador Ismael, and by other Members, had yet to be answered. Hence, it is seemed 
premature to push forward any further debate  on exchange rates in the WTO. A deeper 
examination of Brazil's latest submission led to the following comments: regarding proposal one, WT/WGTDF/M/30 
 
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  there seemed to be no need to commission any further collaboration between the WTO and the 
IMF since such collaborative dialogue was already mandated by GATT Article XV, and was already taking place in the Working Group, as evidenced by the participation of the IMF in the past few meetings. In relation to proposal two, the calculation of any possible currency misalignments for 
the joint study lay solely with the IMF mandate. The IMF had primary responsibility for exchange 
rate policies whereas the WTO was neither competent, nor had the mandate to do so. Moreover, as pointed out by a Secretariat Discussion paper of 2007, cooperation between the IMF, World 
Bank and the WTO had already been discussed. He nce, the delegation of China did not see the 
necessity to ask the WTO and IMF to do something that had already been carried out. Finally, on 
proposal three, his delegation wished to issue a strong word of caution that any paper commissioned to the Secretariat should be factual in nature, objective and with no venture in 
analysis and comments. 
1.9.  The Representative of Hong Kong, China co nsidered that the IMF’s jurisdiction over the 
international system of exchange rates was indi sputable. After several rounds of discussions, WTO 
Members had yet to reach a consensus on properly defining exchange rate “misalignments”, 
measuring their magnitude and effects, and agreeing on whether to “rectify” them with trade measures. This reinforced the point that the WTO was not the proper forum to deal with the 
relationship between exchange rates and international trade, and that the WTO had to defer to the 
IMF in order to tackle the issue. It was also  noted that the WTO and the IMF had nearly 150 
Members in common. Hence, IMF Members with co ncerns could always rely on existing IMF 
mechanisms to deal with exchange rate misalignment issues. With respect to Brazil's latest 
proposal, Hong Kong, China had reservations over the scope of discussion and activities proposed, 
which was based on the ambiguous concept of exchange rate “misalignments”, covering many different domestic and international dimensions. The role of the World Bank with respect to 
exchange rates remained unclear. And so were the "proposed measures" mentioned in proposal 
two. Regarding proposal three, it was noted that the Secretariat paper would be a factual note with no analysis or judgement. However, it was also unclear what the value added of such work 
would be. Hong Kong, China did not support creating any new WTO rules in attempt to tackling 
exchange rate misalignments, since the notion of misalignment was unclear and vulnerable to challenges.  
1.10.  The Representative of Pakistan appreciated Brazil's efforts in mobilizing research and 
discussion on such a topic. There had been a firs t discussion of various provisions, residing in 
GATT articles XV and II.6, and IMF Article IV and VI, for example. These called for collaboration 
and harmony in policy-making between the two institutions, particularly when related to trade. As 
further work might need to be synergised, Brazil was on the right track in suggesting that there 
was a need for factual analysis and further studies regarding the implementation of the coherence mandate. While the discussion could extend to rule s, one would need to be very circumspect while 
approaching such issues. However, the implementa tion of the work suggested by Brazil might 
bring greater clarity not only on the current situation, but also on what steps could possibly be taken. Pakistan was ready to remain constructively engaged in this work and looked forward the work progressing in a positive manner.  
1.11.  The Representative of the United States thanked Brazil for its June 2014's submission. The 
constructive contribution of the IMF to the Workin g Group was also appreciated. The United States 
shared the view that persistently misaligned exchange rates could create serious difficulties for 
international trade and economic growth, as well as for the global financial system.  As such, the 
continuation of the dialogue on the relationship  between exchange rates and trade was welcome. 
With respect to Brazil's proposal, the United States generally supported consideration of further 
work to the extent that it was well-focused and respected the various competencies and 
jurisdictions of the IMF and other relevant multilateral institutions, including that of the WTO. The United States supported an ongoing dialogue with the IMF that was focused on improving understanding of the Fund’s policies, approaches  and reflections regarding exchange rates and 
trade. Issues taken up under this item could include the impact of persistent exchange rate 
misalignments on trade in goods and services, and how improved IMF bilateral, regional and multilateral surveillance — including various methodologies to assess currency misalignments — 
could help to address persistent currency misalignments. The United States did not support 
expanding this discussion into appraising the IMF's exchange rate assessment methodologies or assessing the IMF's surveillance functions, and at this time it did not support examining particular 
WTO trade rules. Crafted in this way, a continue d dialogue with the IMF would serve the Working 
Group well, and would help to fulfil the coherence mandate. However, the United States did not WT/WGTDF/M/30 
 
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  see a need to commission a joint discussion paper in this area. It was noted that the IMF had just 
hosted the third IMF/WTO/World Bank Joint Trade Workshop, and that papers from the workshop were available on various websites. Such efforts to bring together management and senior staff from the three institutions to discuss trade and tr ade-related issues were welcome. This was an 
example of coherence at work. The United States did not object to Brazil’s proposal for a “factual 
note” on historical cases in which GATT II: 6 was invoked.  It shared, however, concerns raised by Hong Kong, China, about where this exercise woul d lead the Working Group. The note should not 
go into “next steps” – that was for Members to decide. 
1.12.  The Representative of the European Union joined other delegations in praising Brazil for 
keeping the Working Group thinking over exchan ge rate and trade issues. The European Union 
supported continued discussions in an analytical mode. Recent presentations by the IMF had 
expanded WTO Members' knowledge on the topic, although not all questions had been settled. In 
general, the European Union was interested in continuing the exchange of views and knowledge with the IMF, drawing on its analytical capacities, as outlined in proposal one. Regarding proposal 
two, in principle, it would be good for the WTO, the World Bank and the IMF to continue discussing 
such issues with a view to achieving more clarity. However, proposal two created a perception that the coherence mandate needed to be strengthened in this area and that suggestions would be 
required to address this. The European Union wo uld raise questions marks if this was the case. 
Regarding proposal three, there was no opposition to a factual historical note, but there were questions regarding the future use of such a paper, as outlined by Hong Kong, China and the United States.  
1.13.  The Representative of Japan looked closely at  Brazil's submission and saw value to it. At the 
same time, there were a number of points that ne eded further clarification. Regarding proposal 
one, Japan shared the view, as many other Members, that continuing the dialogue with the IMF 
was useful for the Working Group, particularly in  better understanding the Fund's policies and 
approaches regarding exchange rates and trade. At the same time, as already mentioned, Members needed to be mindful of possible overla ps regarding discussions in the IMF and in the 
WTO on issues such as assessing currency misalignments, methodologies for estimating 
misalignments, which were the prime responsibility of the Fund. Hence, overlap had to be avoided. 
Regarding proposal two, Japan shared the view wi th several other Members that it was important 
to keep the three organisations "coherent" as la id out in the Marrakech agreement and the Doha 
Ministerial Declaration. To further consider such a proposal, it might be beneficial to have 
clarifications on the current shortfalls or challenges faced by the WTO in achieving coherence with the other organizations concerned. Regarding propos al three, Japan wished to hear more from the 
proponent on how the factual note would contribute  to the discussion in the Working Group, given 
that most of these examples pertaining to the use of Article II.6 were old and that the international landscape had changed significantly since these eleven cases had been invoked.  
1.14.  The Representative of Canada thanked Brazil  for their revised proposal. His delegation could 
support proposal one for a continued WTO-IMF dialogue, as it would help develop a better 
understanding of the way the IMF approaches ex change rate surveillance and assessments, 
including the strengths, weakness and limitations of  this work. Canada continued to support work 
in the WGTDF to foster better coherence between the WTO, IMF and World Bank – as long as the 
mandates and decision-making processes of each institution were respected. From a governance 
perspective, any decisions or outcomes that affect what or how the Fund cooperates with the WTO 
needed to be taken within the IMF’s governance structures and respect its mandate and priorities. 
Regarding the second proposal for a joint discussion paper, it was not clear what the World Bank’s role would be. Also, the coherence mandate was broader than simply the relationship between 
exchange rates and trade, as it related to other areas such as trade and development. There was a 
risk that the broader picture was lost by focusing on one dimension only. There was no opposition to proposal three. The value of such a note was nonetheless questioned, as data was quite old and 
it was not clear that it was applicable to the current international monetary system. In any case, 
the IMF should be given an opportunity to review  and comment on a draft report before it is 
finalized, given its role and technical contribu tions to exchange rate-linked trade disputes. 
1.15.  The Representative of Australia thanked Brazil for another comprehensive proposal on the 
issue of exchange rates and trade, which had to date led to useful work done. Australia preferred a 
more step-by-step approach to such complex issues than was evident in the proposal submitted by Brazil. For example, on proposal one, the first two elements concerning improving the 
understanding of the Fund's polices and clarifying roles might be something that could be WT/WGTDF/M/30 
 
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  undertaken before other issues raised under that paragraph. The ongoing dialogue with the IMF 
had been very helpful, but within the mandate of each organization. Regarding proposal two, the clarification by Brazil on the Secretariat "proposing measures" was welcome. However, Australia questioned whether it would be appropriate for the institution itself to be proposing measures. It 
would be for the Members of those organisations to identify possible measures, not the institutions 
themselves. Similar to others, proposal three wo uld be acceptable, should the paper be purely 
factual, and more clarity be brought regarding next steps envisaged. The comments by Japan that 
the information was quite old and could no longer be relevant were well noted. 
1.16.  The Chairman noted that the overall pres entation of the paper by Brazil had been well 
received. A number of questions had been raised by  delegations. This included, inter alia, how to 
respect the respective mandates of the institutio ns concerned. Other questions came up regarding 
the purpose of the proposed factual study and the next steps envisaged by Brazil. 
1.17.  The Ambassador of Brazil thanked all participants for their constructive engagement. Brazil 
had demonstrated since 2011 its commitment to bringing this discussion to the organization. It 
was not a conjectural discussion about Brazil's situation, rather a matter of systemic relevance. 
Most Members had thought that the dialogue on exchange rates and trade had been informative and relevant. Regarding the first question of the Ch air, Brazil had been ve ry mindful of the areas 
of competencies of the three institutions, before putting forward this and previous proposals. Some 
Members of Brazil's delegation had prior experi ence of dealing with the IMF and World Bank.  
1.18.  Regarding Members' comments on proposal one, the idea was for Members to become 
acquainted with recent developments in the IMF in order to have an informed debate at the WTO, 
about matters of relevancy to the WTO, not of the IMF. There was no idea to criticize or challenge 
IMF policies from the WTO. With respect to possible measures, this proposal was simply indicative and perhaps the choice of words had not been the most appropriate. Regarding proposal two, the 
coherence mandate was indeed wider than exchan ge rates and trade, but there was clearly a 
desire to discuss this issue under the larger umbrella of coherence. Other coherence activities such as joint workshop or previous discussion papers were welcome, but there was a need to do some 
stocktaking on recent progress of cooperation between the three institutions on the specific issue 
of the relationship between exchange rates and trade. This did not include any kind of calculation of misalignment or currency assessment. Regarding proposal three, the question of the next steps 
was difficult to answer, as it was unclear what exactly would be found. This is why historical 
research was of interest. The delegation of Brazil had detected 11 cases of use of Article II.6 but it 
was difficult to prejudge the research as all documents were not available. The note had to be factual, with no judgment, no indication, and no pr escription. The historical note was to bring only 
historical background to these cases.  
1.19.  After careful consideration by Members of the three proposals made in document 
WT/WGTDF/73, the Chairman concluded on the fo llowing: (a) regarding proposal one, there was 
general support for the continuation of the on-going dialogue with the IMF; Members did not wish 
to prescribe the content of such dialogue, which generally aimed at being better informed and at 
acquiring a more thorough understanding of IMF poli cies with respect to exchange rates, (b) there 
was no consensus to move forward on proposal two, i.e. to commission a discussion paper to be 
jointly drafted by the WTO secretariat, the IMF and the World Bank, on how the coherence 
mandate was implemented in the area of exchange rates and trade, (c) on proposal three, there 
was a consensus to commission a factual note to the Secretariat on the instances in which Article 
II.6 of the GATT/WTO has been invoked in the past . Members issued a strong note of caution, 
emphasizing the factual and historical character of that note, which should neither venture into analysis nor affect their rights and obligations under the current agreements. 
2  AGENDA ITEM II: TRADE FINANCE – DISCUSSION BASED ON THE NOTE BY THE 
SECRETARIAT (WT/WGTDF/W/74) 
2.1.  The Chairman indicated that this issue came  up after the DG's experts on trade finance had 
several times rung the bell regarding the vanishing interest of the international financial system – 
for various reasons – in operating in a number of developing countries. As a result, the demand for 
trade finance programs of multilateral financial institutions, a concessional form of trade finance and an indicator of the global trade finance gap,  had grown to a previously unknown magnitude.  
At the last meeting of the Working Group in June, Members had agreed with the proposal from 
Australia to commission the Secretariat with a Background Note. The Note of the Secretariat had WT/WGTDF/M/30 
 
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  been circulated as Document WT/WGTDF/W/74. The Chairman also noted that many WTO 
delegations had attended the Public Forum's session on trade finance, which had demonstrated how much trade finance mattered for making trade possible on a daily basis in developing countries. Presentations by the EBRD, the World Bank, the Asian Development Bank and the 
African Development Bank had been posted on the WTO web page of the Public Forum dedicated 
to that session. The Chairman invited Members to comment on the note, in particular on the section related to "issues for discussion". 
2.2.  The Representative of Australia thought that the Secretariat paper highlighted the vitally 
important role of trade finance, and the effective action of the WTO to date, in concert and 
cooperation with other relevant organisations, in raising the concerns about the impact of the global financial crisis on the availability of trade finance, particularly for lower income countries. 
This had led directly to effective action both via the G20 and in global financial standards setting 
bodies and also to greater visibility of this important trade issue more generally. Australia agreed that the WTO should continue to closely monitor the market situation with regard to trade finance 
and be in a position to alert the international community and mobilise relevant actors where 
necessary. It might also be useful for the WTO to take a more proactive approach to raising awareness of the issue of trade finance, particularly around the sustained deficit in trade finance 
availability in some regions. In that respect, the session on trade finance during the Public Forum 
this year had been useful. The WTO should also, as  suggested by the paper, continue to contribute 
to and support the effort of multilateral deve lopment banks in this area and to encourage 
synergies in the field of technical assistance in this area. 
2.3.  The Representative of Canada supported work to get better analysis and data on the 
availability of trade finance.  In particular, Canada continued to be supportive of the work at the 
WTO on analysis of trade finance flows because 1)  there was a lack of data and, 2) the WTO was 
the right organization to carry out this work. Canada also supported the efforts by the multilateral 
development banks to ensure the availability of trade finance in developing countries throughout the financial crisis, notably through early participation in the IFC’s Global Trade Liquidity Program.  
However, Canada's view was that resources for trade finance should be provided primarily by the 
private sector given the low level of risk involved. Finally, Canada was broadly supportive of current efforts to pool resources, enhance learning and reduce overlap and duplication in activities. 
2.4.  The Representative of China considered that  the availability of trade finance was a key issue 
to many developing countries in the WTO. He welc omed the note by the Secretariat, which helped 
to review the status quo on the trade finance situation, and review concrete suggestions. Low income countries would greatly benefit from such a discussion. Based on the Secretariat note, 
Members could carry on the discussion on the potential solutions to further facilitate trade and 
close the gap for trade finance globally. China was ready to contribute to that discussion, and provide the necessary assistance through international, regional, and bilateral cooperation. 
2.5.  The Representative of Pakistan wished to show its appreciation on the work undertaken by 
the WTO on not only identifying the financing gaps at the low end of markets, but also regarding 
the actions taken in mainstreaming this issue and mobilizing support for action in improving availability of trade finance during and after the cr isis. He wished to also show appreciation for the 
efforts deployed by the regional development banks,  in particularly the Asian Development Bank in 
his region. The development of these programs was an outcome of the global financial crisis, which had caused liquidity shortages in developing countries and around the world. Also, the volatility of 
capital flows that resulted from the financial crisis, and the policy responses to it, had created gaps 
in countries such as Pakistan. While the situation had recently ameliorated, the WTO needed to continue to monitor a number of variables. One of them was the implementation of Basel III rules, 
which could create retention of capital within banks that are traditional lenders to developing 
countries. Also, the risk profile as well as the risk perception profile of such an essential industry needed to be monitored, as it was playing a role in the availability of trade finance. There was also 
a need to look at trade finance in the wider perspective of the lack of access of many developing 
countries to international capital markets. When such a gap for trade finance was created, it was 
also obvious that certain informal arrangements, including shadow banking, would tend to develop to fill that gap. This created challenges on its own, which needed to be examined. Therefore, the 
work on trade finance in the WTO was far from  finished. The delegation of Pakistan had a 
continued interest in the WTO continuing to deve lop actions in this area. He thanked the WTO for 
the very good work accomplished to date. WT/WGTDF/M/30 
 
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  2.6.  The Representative of Brazil appreciated that  the focus of the note as well as recent actions 
to bridge the trade finance market gap had been placed on the needs of developing countries and SMEs. This was important as such entities had been hard hit by the economic crisis. He endorsed recent WTO efforts on the topic, including the bu ilding of knowledge and awareness, as well as 
fostering cooperation within the G-20 and with multilateral development banks. The WTO should 
also continue to ensure coordination with international financial regulators.  
2.7.  The Representative of the Separate Custom s Territory of Taiwan, Penghu, Kinmen and Matsu 
(Chinese Taipei) welcomed the Secretariat note on the assessment of remaining gaps regarding 
the availability of trade finance in developing co untries. He noted that trade finance played an 
important role in facilitating transactions of international trade, especially for those regions in need of financial support. He also noted that the World Bank among other multilateral and regional 
development banks had been very supportive to trade finance through various schemes or 
mechanisms to assist countries in making trade possible from a financial point of view. As highlighted by the presentations made at the WTO 2014 Public Forum, the WTO should continue to 
work together with the World Bank and developm ent banks in various regions, with a view to 
enhancing coordination and to strengthen the current practices for assisting WTO Members to reach the trade finance they needed to actively engage in the international trade. Her delegation 
was looking forward to be kept informed by the Secretariat on the progress of such coordination 
and cooperation. 
2.8.  The Representative of the European Union said that the Members of the European Union had 
shown continued interest in this topic, and supported further work on it. While the note covered 
trade finance instruments provided by commercial banks and multilateral development banks, it 
might be interesting to consider further the role of export credit agencies and private credit insurers. Another area of interest was to what extent current financing gaps created limitations on 
on South-South trade versus North-South trade, should it be possible to draw a distinction.  
2.9.  The Representative of the United States th anked the Secretariat for its new note and for its 
continued excellent work in this area. The Secretariat had undertaken a measured and very 
valuable role in providing diagnostics and advice — a role that he hoped would continue — and 
had, appropriately, not ventured into prescriptive approaches. He was interested in working with other Members and with the Chair to identify any further work in this area. He subsequently raised a point in response to the Chair’s suggestion of a discussion on this issue that included some from 
the “experts group” and regulators. He didn’t obje ct to the idea but wished to be included in 
further discussions and elaboration of such a program in future WGTDF meetings. 
2.10.  The Chairman concluded that Members had examined the Secretariat background note on 
the remaining gaps in trade finance in developing countries (WT/WGTDF/W/74). The note received 
overall strong support, notably regarding the need for the WTO, including its Director-General, to continue its diagnosis, advisory and advocacy role on the availability of trade finance in developing 
countries in partnerships with the IMF, the World Bank and multilateral development banks. The 
Chairman proposed that the Secretariat organized an information session for Members, perhaps on 
the back of the next Director-General Expert Grou p on Trade Finance, to be held normally next 
spring, so that the two groups could interact and exchange information. The Secretariat indicated 
that it would ask some of the participants of the Expert Group to stay longer for this purpose. It 
was so agreed. 
3  AGENDA ITEM III: FURTHER THOUGHTS ON THE POSSIBILITY OF DISCUSSING THE 
RELATIONSHIP BETWEEN TRADE AND DEBT.  
3.1.  The Chairman reminded that, at the June meeting of the Working Group, some delegations 
had shown interest in reviving the "debt pillar" of the Group's mandate. Other delegations 
wondered whether the interested delegations could be more specific about the nature and extent 
of the issue and what work, if any, could useful ly be undertaken about it in the WTO. To help 
refresh and/or stimulate the thinking, the Secretariat recirculated a 2002 concept note on the relationship between debt and trade. It has also flagged new statistical sources. The Chair wished 
simply to remind of this past discussion and to take note of the fact that none of the delegations 
that had taken the floor in June had volunteered more information on the work that could be undertaken on the issue of the relationship between debt and trade. As for any work to be agreed, 
and in the spirit of this member state-driven organisation, there would need to be a clear and 
substantiated proposal which would allow fellow members to evaluate what joint group activity WT/WGTDF/M/30 
 
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  could be undertaken. This being said, it was evident that the issue of the relationship between 
debt and trade was part of the mandate of this group. This group could revert to it at any time based on a motivated request of its membership. 
3.2.  The Representatives of Nigeria and of the Separate Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu (Chinese Taipei) said that they shared this understanding, as it was also clear 
that the debt pillar remained a full part of the Working Group's mandate. The linkages between 
trade and debt were important for developing countries. Although no immediate submission was 
ready, the topic needed to remain in the minds of Members.  
3.3.  Before closing, the Chairman informed Members that, as in previous years, the Secretariat 
would draft a short, one-page report to be circulated with the membership and approved on a no 
objection basis. All reports by subsidiary bodies of the General Council had to be sent to the 
Council by November 26.  
3.4.  With this, the Chairman closed the meeting. 
 
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