RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/COMTD/LDC/M/45 
26 February 2007 
 
 (07-0800) 
Sub-Committee on Least-Developed Countries 
Forty-Fifth Session  
 
 
 
NOTE ON THE MEETIN G OF 15 NOVEMBER 2006 
 
Chairperson:  Ambassador Jean Feyder (Luxembourg) 
 
 
A. ADOPTION OF THE AGENDA ........................................................................................................2  
B. WTO  WORK PROGRAMME FOR THE LEAST -DEVELOPED COUNTRIES .......................................2  
(i) Trade-Related Technical Assistance and Capacity-Building Initiatives for LDCs.....................2  
(ii) Accession of Least-Developed Countries....................................................................................9  
(iii) Market Access for Leas t-Developed Countries.........................................................................12  
C. OTHER BUSINESS ......................................................................................................................17  
 
 1. The Chairman
 said that it was a great pleasure fo r him to be able to Chair this 
Sub-Committee.  He had had the opportunity to expr ess his gratitude to Members for their confidence 
in him at the meeting of the Committee on Tr ade and Development on 11 October 2006.  He 
expressed his gratitude to the Coordinator of the least-developed countries (LDCs) Group for his support.  He thanked Members for their willingness to  cooperate with him in his work.  He also 
thanked the Director of the Development Division of the Secretariat, and his team, for their assistance to him in the preparation for the meeting. 
2. He added that he had been dealing with deve lopment cooperation for several years.  He had 
travelled regularly to many LDCs, which enabled him to acquire a better understanding of the real 
problems faced by the LDCs.  He had also had th e opportunity to work on the broader development 
problems of the LDCs.  He had been following th e Doha Round of negotiations from its beginning.  
His involvement in the WTO Ministerial Conference held in Cancún, Mexico, in 2003 helped him to become more familiar with international trade rules, which were often complex. 
3. There had been a number of important events for the LDCs over the past few months.  He 
recalled, in particular, the mid-term comprehens ive global review of the implementation of the 
Programme of Action for the LDCs for the Decade 2001-2010, which had taken place in New York in 
September 2006.  That meeting in New York was pr eceded by a preparatory Ministerial meeting in 
Cotonou, Benin, held in June 2006, and by meet ings of experts at UNCTAD in which he had 
participated. 
4. He said that the report by the WTO Director-G eneral to the mid-term comprehensive global 
review in New York had provided an assessment of  the implementation of the Programme of Action 
adopted at the Third United Nations Conference on LDCs  in 2001.  Quoting from that report he said 
that: "LDCs' share in world merchandise trade incr eased from 0.4 per cent in the beginning of the 
decade to 0.6 per cent in 2004, according to the late st available data.  This represents a minor but 
positive step in reversing the trend of the marginaliza tion of LDCs in world trade.  Most of the LDCs, WT/COMTD/LDC/M/45 
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  however, remain marginal participants in the mu ltilateral trading system and global economy.  Lack 
of product diversification, reliance on a limited num ber of markets, as well as low technology content, 
continue to characterize the export profile of LD Cs".  He went on to say that according to an 
UNCTAD press release of July 2006, the prospects of reduction of extreme poverty by half in the 
LDCs by 2015 were slim.  The recently published UNDP report on human development also appeared 
to have confirmed this evaluation, particularly fo r the countries in Sub-Saharan Africa.  He expressed 
concern that the 5.9 per cent growth rate of LDCs  in 2004 could not translate into reduction of poverty 
or into a real improvement in standards of living in the LDCs. 
5. He pointed out that agriculture was of partic ular importance to the LDCs, which employed 
70 per cent of the labour force of the LDCs during 2000-2003.  In 33 out of the 50 LDCs, the average 
farm size was less than one hectare during that pe riod.  Agricultural productivity was extremely low, 
and the productivity gap between the LDCs and the other countries was widening.  He said that this 
picture gave an idea of the challenges faced by both LDC governments as well as by the international 
community.  Efforts needed to be stepped up in favou r of the LDCs.  He would bear in mind the needs 
and requirements of the LDCs while chairing the Su b-Committee and would remain at the disposal of 
Members.  He sought support and cooperation from Members in his task.   
A. A
DOPTION OF THE AGENDA  
6. The Chairman  recalled that the date of the meeting had been changed, and that this change in 
the date had been notified in document WTO/AIR/ 2904/Corr.1.  He said that under the item "Other 
Business", he would inform Members of one particul ar event of interest to the Sub-Committee.   
7. The Sub-Committee adopted  the draft agenda contained in document WTO/AIR/2904. 
B. WTO  WORK PROGRAMME FOR THE LEAST -DEVELOPED COUNTRIES  
8. The Chairman  said that he would take up three elements of the WTO Work Programme for 
the LDCs (WT/COMTD/LDC/11), namely:  (i) trade-related technical assistance and capacity-building initiatives for LDCs;  (ii) accessi on of LDCs;  and (iii) market access for LDCs. 
(i) Trade-Related Technical Assistance and Capacity-Building Initiatives for LDCs 
- Progress in Implementing the Reco mmendations on an Enhanced IF 
9. The Chairman
 recalled that the WTO Work Programme for the LDCs mandated the 
Sub-Committee to monitor the implementation of the Integrated Framework (IF).  Intense work had 
been ongoing to implement the recommendations on  an enhanced IF.  The Transition Team of the 
enhanced IF, as well as its three clusters, had been me eting regularly to flesh out different elements of 
the recommendations such as the administrative and le gal issues, in-country operations and financial 
matters.  He had invited Ambas sador Stephenson (Canada), who was one of the co-chairs of the 
Transition Team, to provide a report on the progress being made in implementing the recommendations on an enhanced IF.  As Ambassador  Stephenson could not be available due to prior 
engagements, he invited the representative  of Canada to make that report.  
10. The representative of Canada
 expressed regret on behalf of Ambassador Stephenson, who 
could not be present due to his prior engagement s in Ottawa, Canada.  He then provided the 
Sub-Committee with an update of the implementation of the recommendations on an enhanced IF.  He 
recalled that in June 2006, the Integrated Fr amework Working Group (IFWG) and the Integrated 
Framework Steering Committee (IFSC ) had approved the recommendations of the IF Task Force to 
strengthen the IF.  He recalled further the three majo r recommendations of the IF Task Force:  (i) the 
need for increased and additional financial resource s provided in a predictable manner to the IF;   WT/COMTD/LDC/M/45 
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  (ii) the need to strengthen in-country capacity and ownership of the IF both by the beneficiaries and 
the donors in order to better integrate trade into deve lopment plans;  and (iii) the need to enhance the 
governance structure that would guide the IF.  He said that intensive work was ongoing to elaborate 
the modus operandi  of the enhanced IF.  The work was carried  out in close cooperation with all the IF 
stakeholders including the beneficiaries, donor c ountries, donor organizations, and core agencies 
involved in the IF.  He informed Members that a Transition Team was steer ing the work, including 
work of its subsidiary bodies involving legal and admi nistrative, in-country and financial issues.  The 
Transition Team was chaired by the former Chairman of the IF Task Force and the current Chairs of 
the IFWG and the IFSC.  The Transition Team in cluded representatives from LDCs, core IF agencies 
and donors.  It was assisted by a Programme Manager, who had been temporarily assigned to it and 
housed in the WTO Secretariat.  The Transition Team would make recommendations to governing 
bodies of the current IF.  In a nutshell, the Transition Team would be responsible for the overall coordination, transparency and effectiveness of the transition process from the present IF to its 
enhanced version.   
11. He went on to say that the Transition Team had established three clusters to implement the IF 
Task Force recommendations.  The clusters were:  (i) in-country cluster;  (ii) legal and administrative 
cluster;  and (iii) finance cluster.  The in-country  cluster was being chaired on a rotating basis by the 
delegations of Tanzania, United Kingdom and Zambia.  It included representations from the LDCs, IF 
core agencies and donors, with the World Bank servi ng as a lead agency.  This cluster was focussing 
on issues relating to LDCs' ownership in the IF pr ocess, in-country coordination and possible ways to 
better organize the IF at the country level.  Issues being addressed by the cluster included terms of 
reference of the IF focal point, roles and responsib ilities of national implementation bodies, role and 
mandate of national steering committee and donor fac ilitator, respective roles of various IF agencies 
to support in-country operations and the diagnostic  process including at the pre- and post-Diagnostic 
Trade Integration Study (DTIS) stage.  It would also look at the modus operandi  for allocating funds 
under tiers 1 and 2 of the Trust Fund under the enhanced IF.  Tier 1 would relate to diagnostic work 
and capacity building while tier 2 wo uld relate to initial actions to implement the findings of the 
diagnostic work.  The cluster also considered best practices in the formulation of technical-assistance 
projects flowing from the diagnostic work, and exam ined the modalities for the involvement of the 
private sector in the IF process.  He expressed satisfa ction that in all these elements, the cluster had 
done a lot of groundwork necessary to make progress.  He noted that the cluster had distributed a 
detailed questionnaire to focal points of the benefici aries, and that several replies had already been 
received, demonstrating a high degree of inter est and engagement at the country level. 
12. He continued by saying that the legal and ad ministrative cluster was being chaired on a 
rotating basis by the delegations of the European Communities, Switzerland and the United States.  It 
also included representatives of the LDCs, donors and ag encies.  This cluster was being assisted by 
the WTO Secretariat as the lead agency.  The cluster was focussing on the establishment of an 
enhanced governance structure for the IF.  Issues being addressed by the cluster included the question 
of legal entity of the enhanced IF and its independe nce, the definition of its administrative functions 
and operating guidelines, the terms of reference and parameters for recruiting a Chief Executive 
Officer, the terms of reference of the Executive Secr etariat to service the enhanced IF, the terms of 
reference and the operating guidelines for the proposed  IF Board and the IF Steering Committee.  He 
was pleased to report that the cluster had made c onsiderable progress.  A ll the above-mentioned terms 
of references were being considered at length.  In this regard, he took note of the recent paper by the 
WTO Secretariat with regard to the enhanced IF Secretariat, which provided greater clarity on how the administrative structure could work.  
13.
 The finance cluster was being chaired by the de legations of Canada a nd Nepal.  Like other 
clusters, it included representatives from the LDCs , donors and agencies, with the UNDP taking the 
role of the lead agency.  Issues being addressed by  the cluster included transitional arrangements from 
the current IF to the enhanced IF, formulation of financial rules, assessment of options to locate the WT/COMTD/LDC/M/45 
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  Trust Fund envisaged for the enhanced IF, prepar ation of a new budget, mobilization of financial 
resources through the organization of a series of pled ging discussions and preparation of a strategy to 
involve additional and new donors into the work of the IF.  The work in this cluster was closely linked 
with that of the administrative and legal cluster.   
14. He recalled that the enhanced IF was supposed  to be operational by early 2007.  In this 
regard, there was an agreed work plan with de fined outputs until February 2007.  He informed 
Members that a number of important events were planned in the coming days.  A workshop was being 
organized by UNCTAD in Dakar, Senegal, where IF focal points would be invited.  This workshop 
would allow feedback from the field on the current  work to enhance the IF.  A number of donor 
conferences would start within a month with the purpose of identifying issues that needed to be 
addressed, and with a view to mobilizing the resour ces necessary to make the enhanced IF a reality.  
He underscored the need for a meeting of the heads of  the six IF core agenci es once the current work 
was finalized.  In conclusion, he said that the findi ngs of the above three clusters would be brought to 
the Transition Team which would then forward its  recommendations to the existing governing bodies 
of the IF. 
15. The representative of Bangladesh
, on behalf of the LDCs, congratulated the Chairman on his 
election.  The LDC Group was happy to see him chai ring this important body for the LDCs.  The 
Chair's previous assignments in his country as H ead of the Development Cooperation Ministry, and 
his personal interest and knowledge, enabled him to come closer to the development issues of concern 
to the LDCs.  That would be invaluable for the wo rk of the Sub-Committee.  He said that the LDCs 
were confident that the Sub-Committee woul d continue to be a productive body under his 
chairmanship.  The opening statement by the Chai r had clearly demonstrated his interest and 
commitment to the LDCs.  He reiterated hi s full support and cooperation to the Chair. 
16. He went on to say that the delegation of Cana da had shown strong dedication and leadership 
in the IF process.  He hoped that the commitme nt shown by Canada, as well as by other donors, 
would result in an enhanced IF that would meet the real needs of the LDCs.  He also expressed 
appreciation to the chairs and co-chairs of the three clusters, as well as to those who were 
participating in the cluster meeti ngs.  It was an opportune moment to take stock of what had been 
happening over the past few months in the Transition Team and its three clusters.  The enhanced IF 
process had exposed the LDC delegations to many tec hnical and specialized issues in areas of finance 
and administration, which were comparatively new to them.   
17. The Task Force recommendations had set out th e broad parameters.  The details were now 
being worked out.  In this regard, he stressed the n eed to observe two cardinal principles.  First, LDCs' 
domestic human, institutional and resource constrai nts should be duly taken into account before 
finalizing any recommendation requiring the LDCs to  undertake new commitment s.  The enhanced IF 
was about building capacity.  In framing recomme ndations, the IF should not be burdened with 
additional processes and with increased layers of bureaucracy.  The IF should be made user-friendly 
so that LDC authorities could easily and quickly benefit from it.  Second, the enhanced IF would be 
judged by its ability to increase the trade capacity of the LDCs.  He said that it was important to give more attention to the export performance of the LDC concerned than to merely focus on the good 
management of the IF process.   
18. The issues and options paper by the WTO Secr etariat with regard to the enhanced IF 
Secretariat had presented two options.  There might be other options as well.  He emphasized the need 
for a thorough examination of all options before  the creation of a new entity, although that might 
unnecessarily delay the much-awaited support envi saged under the enhanced IF.  He wondered 
whether the new Executive Secretaria t for the enhanced IF would be able to assume all functions 
indicated in the recommendations by the Task Fo rce.  With regard to the housing of the new 
Executive Secretariat, he stated that an embryoni c link with the WTO was essential.  At the same  WT/COMTD/LDC/M/45 
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  time, he said that resources should not be siphoned o ff in the administration or in the outsourcing of 
services to other entities.  He stressed the n eed for finding the most cost-effective method for 
managing the Trust Fund envisaged under the enhanced IF. 
19. He stressed that in-country capacity building was the hallmark of the enhanced IF.  The LDCs 
welcomed the fact that the IF focal points woul d assume more responsibilities, including preparation 
of projects under the enhanced IF.  That would strengt hen country ownership in the IF process.  At the 
same time, additional responsibilities would bring new challenges to th e LDCs.  In this regard, he 
emphasized the need for adequate support for an  effective IF Focal Point and the National 
Implementation Unit.  He argued that efforts to bu ild in-country capacity should not concentrate on 
enhancing the ability of LDCs to manage and run an  office;  rather efforts should focus on building 
LDCs' capacity to analyze trade policy issues and to  better implement the DTIS Action Matrices.  He 
recalled that converting the Action Matrix into bank able projects was identifie d as a central challenge 
in the implementation phase of the IF.  Adequate tr aining to fill such lacunae should thus come from 
the enhanced IF.   
20. The representative of Bangladesh also noted that  terms of references were being developed 
for the IF Focal point, the National Implementa tion Unit and the IF donor Facilitator.  Those 
references should provide sufficient guidelines to various  actors at the country level to carry out their 
responsibilities and better organize the IF process.  He cautioned that the terms of references being 
developed should not be prescriptive.  The size of the IF funding, or the size of the Trade Ministry, in 
many LDCs might not warrant a senior civil servant to be exclusively assigned for the IF.  He urged 
the Transition Team and its three clusters to operate on the basis of realities on the ground. 
21. Nearly half of the LDCs had completed, and validated, their DTISs.  LDCs such as Samoa 
and Vanuatu might be too small, in their respectiv e economies, to rigidly follow any standard DTIS 
template that might be developed.  He pointed out th at the needs of many of the new IF entrants might 
be different from those that had already completed the DTIS process.  These realities should be borne 
in mind while discussing best practices in pre- or post-DTIS processes.  
22. He said that a great deal of attention was be ing paid to the terms of reference for the IF 
Steering Committee and the Board.  The Task For ce did not recommend any major changes for the IF 
Steering Committee.  It should follow the curr ent structure and should provide overall policy 
direction.  The participation of the private sector  in the IF Steering Committee would be unique, and 
appropriate modalities for their participation would need to be worked out.  There were questions 
concerning the composition and functions of the Board.  In this regard, he pointed out that in the past, 
the IFWG effectively worked as the Board and, for all practical purposes, took important decisions on 
management as well as on programmes.  The requirement s in the Board would need to be worked out, 
in particular in view of its need to supervise the functioning of the new Executive Secretariat.  
23. He stressed that the single most important feat ure of the enhanced IF was its commitment to 
deliver on increased, predictable, additional and unco nditional funding.  The Task Force had indicated 
a funding target of US$400 million under an enhan ced IF over a period of five years.  The LDCs 
considered that target to be small, judging its n eeds.  Nevertheless, the LDCs were waiting to see how 
that target would be fulfilled.  He cautioned against a situation where lack of resources would 
handicap the implementation of the recommendations.  He underlined the need for the donors to do 
much more work in mobilizing resources for the enhanced IF. 
24. The IF was designed to enhance trade opportuniti es for the LDCs.  The LDCs wished to see 
the IF contributing to the diversification of th eir production and export base and strengthening their 
trade supporting institutions.  The enhanced IF reaf firmed the mandate to develop trade capacity of 
the LDCs and to address their supply-side constrai nts.  The mainstreaming of trade into national 
development plans was a means to achieve those obj ectives.  He expressed regret that there were WT/COMTD/LDC/M/45 
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  questions that continued to persist in the conceptu al underpinning of the IF, and towards establishing 
a common understanding of different actors in the IF process. 
25. The IF was a tool, and a means to an end.  It was a process that should lead to increased 
exports from the LDCs.  Posterity would judge the IF, not by its improved governance structure nor 
by its processes, but by its contribution to in creasing trade from the LDCs.  The monitoring and 
evaluation system should have an in-built mechan ism to see whether the enhanced IF had been 
fulfilling that goal.  Finally, he hoped that the enha nced IF would be put in place by early 2007.   
26. The representative of Benin
 congratulated the Chairman on his election, and thanked him for 
his introductory remarks.  His delegation was confid ent that the priorities and concerns of the LDCs 
would receive utmost attention during the tenure of the new Chair.  He hoped that the background and 
the understanding of the Chair on LDC issues would be  of great assistance to the work of the 
Sub-Committee.  He associated himself with the statement made by Bangladesh on behalf of the LDCs.  He expressed gratitude to Ambassador Stephe nson for his work in connection with the process 
leading to the development of the enhanced IF.  He recalled the mandate set forth in the Hong Kong 
Ministerial Declaration on IF, and reaffirmed the recommendations of the Task Force on an enhanced 
IF.  He stressed the importance of the enhanced IF for the LDCs, and underlined the need to expedite 
the current work, taking into account the needs id entified and the views expressed by the LDCs in 
different clusters.  The central management struct ure as well as the structure required on the ground in 
the beneficiary countries would need to be strengthe ned to effectively implement the IF.  He also 
stressed the need to respect the deadline that had been set to oper ationalize the enhanced IF, which 
was the beginning of 2007. 
27. The representative of Chad
 congratulated the Chairman on his election.  He said that the 
Chairman demonstrated his commitment for the cau se of the LDCs, and that his experience would 
contribute to the success of the Sub-Committee's wo rk.  He thanked the delegation of Canada and 
other development partners for their commitment and contributions to the IF.  He associated himself 
with the statement made by Bangladesh on behalf of  the LDCs.  He said that the representative of 
Bangladesh highlighted the concerns of the LDCs, a nd hoped that those concerns would be taken into 
account while finalizing the work under enhanced IF .  He also expressed thanks to the development 
partners supporting the development efforts of his country.  
28. The representative of the United States  congratulated the Chairman on his election.  She 
appreciated the commitment shown by the Chair to  achieve the objectives of the Sub-Committee.  She 
noted that Members were spending a great deal of time on making the IF work better, and on 
improving the processes that the IF had had for a long time.  From the perspective of her delegation, 
the IF had been an extraordinary model of coope ration and engagement be tween the LDCs and the 
donor communities, including the core IF agencies .  She recognized certain challenges in the IF 
process, which had been worked through.  She shared the point made by the representative of 
Bangladesh that some of the issues emerging in th e current discussions under the enhanced IF were 
also new to her delegation.  Issues relating to bu dgetary and administrative matters were not handled 
by trade negotiators on a regular basis.  She, howev er, believed that the current effort to enhance the 
IF was an important one, bringing all stakeholders  together.  She noted the concern expressed with 
regard to the delays in the current work.  She felt that the time had come to focus on solutions instead 
of continuing discussions on the problems.  She encouraged the LDCs which had completed their 
DTISs to see if there were some areas where th e WTO's trade-related technical assistance (TRTA) 
could be helpful in addressing the needs identified in those DTISs.  In this regard, she underscored the 
need to explore synergies between the needs expr essed in the DTISs and the TRTA provided by the 
WTO Secretariat.  She stressed the need for a wider use of the DTISs to serve as a basis for the tools 
that were available to assist the LDCs.  She beli eved that such an appr oach would ensure the 
coherence that Members were trying to foster in the area of technical assistance and capacity building.  WT/COMTD/LDC/M/45 
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  29. The representative of Djibouti  congratulated the Chairman on his election.  The issues of 
concern to the LDCs was well known to the Chair.  That was a reaffirmation to the LDCs of the 
Chair's ability to steer the work on LDC issues.  He hoped that the Chair's experience, knowledge and 
ideas would contribute to meeting the needs of th e LDCs.  He acknowledged the support provided by 
the Secretariat to the Sub-Committee, as well as th e assistance provided to his delegation from time to 
time.  He said that Members had been working on the IF since the late 1990s.  Although in the past 
the IF could not meet all the expectations, his delegation could now see concrete results coming from 
the IF.  He reiterated his confidence on the merits of the enhanced IF.  He underlined the need for 
adequate funding to implement projects in the field.   Greater capacity in project implementation and 
stronger country ownership would he lp LDCs benefit from the IF pro cess.  He emphasized the need to 
make the beneficiary countries more aware of th e IF process and to instil the sense of responsibility 
among them.  LDCs needed capacity to take on mo re responsibilities to manage the IF process.  He 
expressed his appreciation to Ambassador Stephens on for his efforts to ensure positive results from 
the IF.  He also thanked the Coordinator of LDCs , who had been working hard for the cause of the 
LDCs. 
30. The representative of Zambia  associated herself with the statement made by Bangladesh on 
behalf of the LDCs.  She congratulated the Chairm an on his election.  She was confident that the 
Chair's vast experience in the area of development cooperation would benefit the deliberations of the 
Sub-Committee.  She thanked Ambassador Stephenson for his commitment to, and dedication for, the 
work on the IF.  She reiterated her delegation's support and commitment to the Chair's work and 
looked forward to a successful implementation of the enhanced IF. 
31. The representative of the European Communities  welcomed the election of the Chairman.  He 
reiterated full support to the Chair, on behalf of hi s delegation and also on behalf of the European 
Union member States.  He found the presentation on th e enhanced IF by the representative of Canada 
detailed as well as precise.  It could serve as a re ference point to the organizational structure of the 
work underway in different areas.  He noted that all delegations had spent a lot of time on work 
related to the enhanced IF.  That was a testamen t to the importance that all IF stakeholders had 
attached to this work.  The time had come to channe l this energy into concrete results and decisions.  
The level of engagement from the LDCs was positive.   The LDCs had not only been participating in 
the meetings of the Transition Team and its cluste rs but had also been co-chairing some cluster 
meetings.  This was particularly key for ensuring su ccess to the beneficiaries at the country level.  He 
underlined the importance of translating the work in  Geneva into concrete actions on the ground with 
precise and measurable results.  He said that circ umstances could differ in individual LDCs, which 
was why it might be difficult to ensure uniform results on the ground in implementing the work 
undertaken in Geneva.  He, however, stressed that the decisions taken in Geneva should be followed 
through by all actors concerned including beneficiarie s, donors and the IF agencies.  He reiterated that 
his delegation and individual member States of the European Union would continue to work hard to 
achieve the common objectives of the enhanced IF set by Members, as soon as possible. 
32. The representative of Rwanda  expressed his delegation's full cooperation to the Chair's task.  
He was confident that the commitment and experi ence of the Chair would enable fruitful discussions 
in the Sub-Committee and would bring satisfactory r esults.  He noted the introductory statement by 
the Chair and his commitment to take on the ch allenges faced by the LDCs.  He expressed his 
delegation's willingness to work with the Chair.  He expressed hope that the current ongoing work 
would lead to a successful implementation of  the recommendations on an enhanced IF.   
33. The representative of Guinea  congratulated the Chairman on his election.  She hoped that the 
Chair's vast experience would bring success in the work of the Sub-Committee, in particular with 
respect to the IF.  She thanked the representative of Canada for his presentation on the enhanced IF, 
which had shed light on the work done so far.  She associated herself with the statement made by 
Bangladesh, on behalf of the LDCs.  The LDCs had been benefiting from the IF, particularly through WT/COMTD/LDC/M/45 
Page 8  
 
  the projects resulting from it.  In this regard, she dr ew Members' attention to a roundtable in Geneva 
on 27 November 2006, which her delegation, togeth er with the International Trade Centre (ITC), 
would be organizing with a view to drawing up a partnership to implement three priority projects 
under Window II of the IF Trust Fund.  Her delega tion would welcome the participation of Members 
in that event.  She expressed appreciation to d onors for their commitment to the enhanced IF.  
34. The representative of Uganda
 congratulated the Chairman on his election.  He joined previous 
speakers in appreciating the vast experience and knowledge of the Chair on development issues, 
which would be useful for the Sub-Committee.  The introductory statement by the Chair demonstrated 
his willingness to work closely with the LDCs.  He  thanked the representative of Canada for his 
presentation, which had outlined the work ahead under the enhanced IF.  He associated himself with 
the statement made by Bangladesh on behalf of the LDCs.  He shared the point made by the 
representative of Bangladesh that the IF should be seen as a tool and a means to an end.  He looked forward to seeing the IF as a me chanism helping LDCs to diversify their export base and contributing 
to poverty reduction in the LDCs. 
35. The representative of the United States
 noted that a number of advanced developing countries 
had provided assistance, in particular in-kind, to th e LDCs in recent months.  For instance, China had 
provided financial assistance to the African countries.  In this regard, she stressed that countries other 
than traditional donors should come forward and assist in meeting the needs of the LDCs.  She invited 
the developing countries to encourage their trade a nd development officials to examine the DTISs and 
to see whether their in-kind contributions could co mplement and respond to the needs identified by 
the LDCs in the area of trade.   
36. The representative of Djibouti  noted that a number of developing countries had been 
providing assistance to the LDCs, including in the area of trade.   
37. The representative of Haiti  expressed his satisfaction on the election of the Chair.  The Chair's 
vast experience in the field of development coopera tion, and knowledge on the real difficulties faced 
by the LDCs, would be invaluable to the work of the Sub-Committee.  He found traits of a good 
leader in the Chair, who could make a difference for the LDCs.  He considered the presentation on the 
enhanced IF by the representative of Canada inform ative.  He associated himself with the statement 
made by Bangladesh on behalf of the LDCs.  Finall y, he expressed his country's strong interest to 
accede to the enhanced IF. 
38. The representative of Cambodia  congratulated the Chairman on his election.  He hoped that 
the Chair's experience would benefit the work of th e Sub-Committee.  He associated himself with the 
statement made by Bangladesh, on behalf of the LD Cs.  He thanked Ambassador Stephenson for his 
commitment to the IF process.  He also expressed  his sincere thanks to all the donors for their 
commitment in the IF process and for making contribu tions to enable the IF to move forward.  He 
informed Members that his Government was in the process of revising its DTIS and the Action 
Matrix, which would be ready for consideration by the end of the year.  He said that the 
implementation stage of the IF process would br ing real benefits to the beneficiaries. 
39. The representative of China  congratulated the Chairman on his election.  He expressed his 
delegation's full support and coopera tion to the work of the Chair and its commitment to fulfil the 
objectives of the Sub-Committee.  He said that he would inform Members on the new commitments 
made by his Government during the China-Africa Summit in Beijing held in early November 2006, 
later in the meeting.  He also noted the proposal  made by the delegation of the United States in 
fostering possible synergy between the needs express ed by the LDCs in their DTISs and the assistance 
provided by the developing countries to the LDCs.  He  said that he would report back to his capital on 
this proposal and wished to come back to it at a future meeting of the Sub-Committee.  WT/COMTD/LDC/M/45 
 Page 9 
 
 
  40. The representative of Nepal  expressed gratitude to Am bassador Stephenson for his 
commitment to the IF.  He also expressed sincer e appreciation to the donors for working hard with a 
view to making the IF a constructive tool for devel opment of trade in the LDCs.  He also associated 
himself with the statement made by Bangladesh on behalf of the LDCs. 
41. The Chairman  was encouraged to see that intensiv e work was ongoing to put in place the 
enhanced IF, illustrating the broad-based commitmen t towards this process.  He informed Members 
that a briefing session on the enhanced IF had b een organized during the Geneva Week.  Members 
interested might wish to attend that briefing to get a further update on the progress made in 
implementing the recommendations for an enhanced IF.  He proposed that the Sub-Committee take note of the report made by the representative of Canada as well as of the statements made.
 
42. It was so agreed.  
(ii) Accession of Least-Developed Countries 
- State-of-Play in the Accession Working Parties of the Least-Developed Countries 
43. The Chairman  recalled that accession was a core element of the WTO Work Programme for 
the LDCs.  The Secretariat had prepared a documen t which had been circulated as Job(06)/242, to 
facilitate discussion under this item.  The documen t provided a brief state-of-play of the accession 
processes of the ten LDCs.  He invited the Secretariat to introduce its note.  
44. The representative of the Secretariat  said that ten LDCs were in the process of acceding to the 
WTO.  They were at various stages of the accession process.  Work relating to LDC accessions accounted for an important part of the Secretariat' s work.  Over one-third of all ongoing accession 
negotiations were LDCs.  In line with the Doha a nd Hong Kong Ministerial Decl arations, as well as 
the LDCs' accession guidelines, efforts had b een focussed on facilitating and accelerating LDC 
accession negotiations.  Efforts had been made on:  (i) activating LDC accessions that were at the 
initial stages;  and (ii) advancing and concluding th e LDC accessions that were at an intermediate or 
advanced stage.  He noted that the adopti on of the LDCs' accession guidelines had marked a 
watershed to facilitate accession of  LDCs to the WTO.  Cambodia a nd Nepal were the two LDCs that 
had acceded to the WTO since 1995.  LDCs' accession gui delines had played an important role in this 
regard.  He went on to say that several LDC accessions  that were at an initial stage had been activated.  
Since the end of 2002, at least one Working Party meeting had been held for Bhutan, Cape Verde, 
Lao PDR, Samoa, Sudan and Yemen.   
45. The document JOB(06)/242 highlighted the r ecent state-of-play in each LDC accession 
process.  Progress made in LDC accessions sin ce the Sub-Committee meeting of September 2005 
included:  (i) Working Party meetings, both formal and informal, of Bhutan, Cape Verde and Yemen, 
and Working Party meetings of Lao PDR and Samoa which were scheduled for later in the month, on 
the margins of the Geneva Week;  (ii) submission of  revised offers by Bhutan, Cape Verde, Samoa, 
Sudan and Yemen based on which bilateral market  accession negotiations had advanced as well as 
initial offers on goods that had b een submitted by Lao PDR;  (iii) submission of factual summaries 
and draft Working Party reports by the Secretariat on the basis of which multilateral work had been 
advancing.  He then highlighted developments that  had occurred over the past one month.  He said 
that the third Working Party on Bhutan had been held on 20 October 2006.  At that meeting, the Secretariat had received the mandate to prepare the draft Working Party report for Bhutan, which was 
an important step in the accession process.  Cape  Verde had also submitted a new revised offer on 
services.  Lao PDR had made offers in goods and also submitted its legislative Action Plan.  The 
Working Party meeting of Lao PDR was scheduled for 30 November 2006.  The draft Working Party 
report of Samoa had been circulated just a week before, and bilateral meetings as well as informal WT/COMTD/LDC/M/45 
Page 10  
 
  consultations had also been scheduled on the margin s of the Geneva Week.  Furthermore, a  number 
of documents had been submitted by Sudan.  
46. He noted that a number of acceding LDCs were the beneficiaries of the IF.  These LDCs 
were:  Ethiopia, Lao PDR, Sao Tomé and Principe, Sudan, Vanuatu and Yemen.  Assistance had also 
been provided to the acceding LDCs on a priority  basis, under the WTO's technical assistance and 
training Plan.  He further pointed out that Members had been assisting the acceding LDCs on a 
bilateral basis.  Multilateral agencies such as UNCTAD, the World Bank, the World Intellectual 
Property Organization (WIPO) and the World Cu stoms Organization (WCO) were assisting the 
acceding LDCs in the areas of their respective co mpetence.  These efforts were important in 
facilitating and accelerating the accession of LDCs.  He  then underlined the importance of technical 
assistance and capacity building to the acceding LDCs  and at all stages of their accession process.   
47. The representative of Bangladesh
 said that the state-of-play of the acceding LDCs was not 
encouraging.  Since the establishment of the WTO,  21 countries had acceded under Article XII of the 
Marrakesh Agreement Establishing th e WTO, of which only two were LDCs.  He emphasized that the 
Ministers, both at Doha and at the Hong Kong Mi nisterial Conferences, had made a commitment to 
facilitate and accelerate the accession of LDCs to the WTO.  In addition, the membership had adopted 
guidelines on the accession of LDCs which, inter alia , had called on the WTO Members: "to exercise 
restraint in seeking concessions and commitments on trade in goods and services from acceding LDCs, taking into account the levels of conces sions and commitments undertaken by existing WTO 
LDCs'  Members".   
48. The accession process was posing major challenges, both technical and political, to the LDCs.  
Putting in place laws and enforcement mechanisms , to conform to WTO rules, was not easy.  
Preparation of documentation was itself an arduous  task, especially for the LDCs whose human, 
institutional and resource capacities were limited.  He  added that domestic constituencies also needed 
to be convinced about the benefits  from accession.  The decision taken by some smaller LDCs such as 
Bhutan, Samoa and Sao Tomé and Principe to accede to the WTO was significant.  It reflected their 
commitment to the rules-based multilateral tradi ng system.  In their cases, the possible economic 
gains from membership in the WTO would not ju stify their accession.  He gave few examples of 
commitment shown by the acceding LDCs.  He  said that LDCs like Lao PDR and Sudan had 
responded to Members' questions, re vealing considerable efforts to advance their accession.  A large 
number of acceding LDCs such as Bhutan, Cape Verde, Sudan and Yemen had submitted revised 
offers.  He expressed concern that the membership  of the WTO had been shifting the goalpost for 
them instead of responding positively to the offers made by the acceding LDCs.  
49. He pointed out that bilateral market access negotiations were devoid of the principle of 
reciprocity.  Acceding countries could not enjoy an y leverage in their accession negotiations.  There 
could thus be no justification for protracted nego tiations with these countries.  He said that while in 
the accession negotiations the objective of Members might be securing enhanced market access in the 
markets of acceding LDCs, the core issue for an  acceding LDC was ensuring an outcome that could 
promote its development.  He emphasized that acce ssion to the WTO should not be seen as an end in 
itself.  It should also give the acceding countries the space to promote their economic development.  
He urged Members not to put excessive demands on the acceding LDCs.  At the same time, he urged the Secretariat to work towards creating a more le vel playing field for the acceding LDCs.  In this 
regard, he underlined the importance of providing assi stance and advice to the LDCs so that the LDCs 
could resist unfair demands from larger and more e xperienced delegations.  Fi nally, he reiterated that 
the LDCs' accession guidelines were developed to facilitate the accession of LDCs.  Apart from 
flexibilities, a core element of those guidelines wa s to conclude accession negotiations as quickly as 
possible.  He expressed concern that the purpose of  the LDCs' accession guidelines would be defeated 
if the acceding LDCs were subjected to the same  rigorous process of negotiations faced by other 
acceding countries.  He stressed that the letter a nd spirit of the LDCs' accession guidelines should be  WT/COMTD/LDC/M/45 
 Page 11 
 
 
  implemented.  He requested that the Secretaria t undertake a review of the LDC accession process, 
those of the two acceded LDCs and also those which were at various stages of their accession process, 
in the context of the LDCs' accession guidelines and inform Members of its outcome.  That review 
would also reveal if there was any need to revisit those guidelines.  He hoped that the WTO 
membership would show utmost restraint in seek ing concessions from the acceding LDCs, and help 
them to join the WTO on terms that could promote their economic development, and not on terms that 
would promote the neo-mercantile interests of the current Members.  He said that the LDC Group had been eagerly awaiting the joining of the ten LDCs that were at various stages of their accession 
process. 
50. The representative of Yemen
 congratulated the Chairman on his election.  He hoped that 
during his chairmanship the cause of LDCs' integrat ion into the multilateral trading system would be 
further enhanced.  He associated himself with th e statement made by Bangladesh on behalf of the 
LDCs.  While appreciating the technical assistance provided by the Secretariat to the acceding LDCs 
including his country, he emphasized the need to review the LDC accession process and in particular 
the LDCs' accession guidelines.  He supported the po int made by the representative of Bangladesh to 
review the provisions of the LDCs' accession guide lines in letter and spirit.  He called upon the 
Secretariat to analyze the LDC accession process and to revisit the guidelines.  That would help 
implement Members' commitments towards the accession of LDCs, in particular facilitating and accelerating LDC accessions to the WTO. 
51. The representative of China
 thanked the Secretariat for the update on the state-of-play of LDC 
accession negotiations.  While appreciating the steps taken to expedite the accession negotiations of 
the LDCs, he shared the concern expressed by the de legation of Bangladesh that the situation of the 
acceding LDCs was not encouraging.  Having joined the WTO only a few years ago, his delegation could understand the difficulties that the acceding LD Cs could face in the negotiations, both at the 
bilateral as well as at the multilateral level.  He noted that the LDCs had been consistently 
accommodating the needs of Members in the accession process.  It appeared that the LDCs' accession 
guidelines adopted by the General Council in December 2002 had facilitated the accession of 
Cambodia and Nepal to the WTO in 2003.  He hope d that Members would conduct negotiations with 
the remaining LDCs in accordance wi th those guidelines.  Members s hould, in particular, exercise 
restraint in their demands with regard to the conditions for LDC accessions. He hoped that all the 
remaining LDCs would complete their accession negotiations at an early date. 
52. The representative of Ethiopia
 congratulated the Chairman on his election.  He associated 
himself with the statement made by Bangladesh on be half of the LDCs.  He recalled that the LDCs' 
accession guidelines were developed to facilitate a nd accelerate the accession of LDCs.  He stressed 
that these guidelines should be respected and implemented. 
53. The representative of the European Communities  welcomed the opportunity provided at the 
Sub-Committee to take stock of the situation of LDC accessions.  He noted some steady progress 
made in the accession process of the LDCs, in pa rticular the progress made in the accession of 
Bhutan.  He reiterated the shared objective of Me mbers to facilitate and accelerate the accession of 
LDCs to the WTO.  He emphasized that the EC had been implementing the LDCs' accession 
guidelines, both in letter and spirit.  He reiterated that the EC and each European Union member State 
had been a major provider of technical assistance and capacity building to countries that were in the 
process of accession, and where requests for such su pport had been made.  He then responded to two 
particular suggestions made at the meeting.  Wh ile his delegation understood the motivation behind 
those two requests, it would require further considera tion.  First, with regard to the role of the 
Secretariat in the accession process, he said that the EC attached great importance to the neutrality of 
the Secretariat in the accession process as well as in  the delivery of technical assistance to any 
acceding country to the WTO.  Second, concerning th e general review of the implementation of the 
LDCs' accession guidelines, he said that it would not be an appropriate time to review the operations WT/COMTD/LDC/M/45 
Page 12  
 
  of those guidelines, which had been adopted only four years ago.  There were other factors such as the 
scope and methodology of such a review, which needed  to be examined.  Finally, he noted that the 
guidelines on the accession of LDCs were approv ed by a body higher than the Sub-Committee; 
moreover, a decision to review these guidelines should be taken in the context of the Round and in a 
transparent manner vis-à-vis  other bodies of the WTO.  
54. The representative of Bangladesh
 responded to the points raised by the delegation of the EC.  
He reiterated that the neutrality of the Secretariat should be upheld.  He urged the Secretariat to be 
more active in providing technical assistance to th e acceding LDCs.  He argued that with ten LDCs at 
various stages of their accession process, and with the possibility of the eight remaining LDCs 
requesting accession negotiations, it was an appropriate time to have a review of the LDCs' accession 
guidelines. 
55. The Chairman  recalled that both the Doha as well as the Hong Kong Ministerial Declarations 
stressed the importance of facilitating and accelerati ng the negotiations with acceding LDCs.  It was 
important that the acceding LDCs receive adequate technical assistance at all stages of their accession 
process.  It was equally important that Members ad here to the LDCs' accession guidelines adopted in 
December 2002.  He emphasized that these guidelines s hould be respected both in letter and in spirit.  
He believed that facilitating the accession of LDCs to the WTO would contribute to further strengthening the multilateral trading system.  He noted the request made by the representative of 
Bangladesh for a review of the accession process of LDCs, particularly in relation to the guidelines on the accession of LDCs.  In view of the remarks from the representative of the EC, he proposed that 
Members take time to reflect on that request.  The Secretariat would also reflect on possible ways of 
addressing the request at an appropriate time.  He proposed that the Sub-Committee take note of the 
document contained in JOB(06)/242, and of the statements made.  
56. It was so agreed.
 
(iii) Market Access for Least-Developed Countries 
57. The Chairman  said that the Sub-Committee had two Secretariat notes to consider under this 
item.  At the last session, Members had requested that these notes be kept on the agenda for today's 
session.   
- Market Access Issues Related to Products  of Export Interest Originating from 
Least-Developed Countries (WT/COMTD/LDC/W/38 and Corrs. 1 & 2) 
58. The Chairman  proposed to begin with the note entitled  "Market Access Issues Related to 
Products of Export Interest Originating from Le ast-Developed Countries" contained in document 
WT/COMTD/LDC/W/38, and its corrigenda.  The not e provided an overview of the market access 
conditions facing the LDCs.  He recalled that at  the last session, Members had had substantive 
discussions on the note.  Additional information on tariff measures facing LDC exports in both 
developed and developing country markets, as we ll as some corrections, were provided in the 
corrigenda to the note.   
59. The representative of Bangladesh  said that his delegation ha d made some substantive 
comments on the note at the last meeting.  He wished, however, to make some additional remarks on behalf of the LDCs at the present meeting.  He sai d that enhanced and predictable market access was 
fundamental in assisting LDCs' integration into th e multilateral trading system.  He expressed concern 
that the momentum for providing enhanced market access had been lost somewhat in recent years.  
No new notification had been made in respect of ma rket access for LDCs in the last two years.  He 
cautioned against the sense of complacency which he  thought had developed in this area.  In this 
regard, he pointed out that Table 6 in docume nt WT/COMTD/LDC/W/38/Corr.1 had indicated scope  WT/COMTD/LDC/M/45 
 Page 13 
 
 
  for considerable improvement of market access for LDCs in certain markets.  He noted that for 
Members such as Japan and Switzerland, the percentage of duty-free tariff lines in the agricultural sector was not substantial.  Agricultural products accounted for a large share of exports for many 
LDCs in the African region.  He noted that mo re than 80 per cent of the tariff lines of the 
United States in the non-agricultural sector were duty free in the year 2003.  He then pointed out that 
only 27 per cent of imports from LDCs had entere d the US market duty free in that year.  That 
implied that the bulk of the imports from LDCs were dutiable in the US market.  He argued that given 
the narrow export basket of the LDCs, exclus ion of few items from duty-free status could 
significantly affect their market access opportunities.   In this context, the decision on duty-free and 
quota-free (DFQF) market access to the LDCs adopt ed at the Hong Kong Ministerial Conference 
assumed greater importance for the LDCs, and should be implemented immediately.  He requested 
that the Secretariat update Table 6 of the not e contained in document WT/COMTD/LDC/W/38, 
incorporating latest data.  He emphasized that the annual reviews in the Sub-Committee of market 
access for LDCs had become one of the central pilla rs of the WTO Work Programme for the LDCs.  
These reviews were helping the LDCs to keep tr ack of market access conditions in their major 
markets.  He hoped that the Secretariat would continue  its efforts to build on these studies, and looked 
forward to the next study.
 
60. The representative of the United States  sought a clarification from the Secretariat.  She had 
found some inconsistency in the data containe d in new Table 6 (WT/COMTD/LDC/W/38/Corr.1) and 
that of Table 8 contained in document WT/C OMTD/LDC/W/38.  She pointed out that data 
concerning the Republic of Korea did not match up in  those two Tables, in particular the data on 
percentage of duty-free imports from the LDCs.  She said that the discussion over the proper 
measurement of substantially all tr ade in relation to Article XXIV had not proved useful.  The year 
chosen for comparison of data among different market s was relevant.  She pointed out that one of the 
major programmes of her Government, the African  Growth and Opportunity Act (AGOA) had not 
been fully activated at the time the information was collected for the not e.  She noted that in the past 
there had been challenges in gathering appropriate  data concerning LDCs.  There were instances 
where duty-free access had been available but had not been requested by the LDCs.  That could 
condition the levels of preferential imports from the LD Cs into certain markets.  She also underlined 
the importance of exercising caution in interpreting data.  She noted that the decision at the Hong 
Kong Ministerial Conference provided a particular mo tivation for examining the situation of market 
access for LDCs.  The findings of the note, inter alia , underscored the importance of undertaking 
additional tariff liberalization in favour of the LDCs, by both developed and developing country 
Members within the Round, in particular in r esponse to the commitment made at the Hong Kong 
Ministerial Conference.  She noted the importance of keeping this item on the agenda.  Finally, she 
expressed her disagreement with the point made by the representative of Bangladesh that there had 
been no progress towards providing duty-free ma rket access to the LDCs.  She said that the 
commitments made at the Hong Kong Ministerial C onference were important and would come into 
fruition.  
61. The Chairman  said that in accordance with the mandate  of the WTO Work Programme for the 
LDCs, the Secretariat would continue its efforts to  assist in the review by the Sub-Committee of the 
market access situation for the LDCs.  He prop osed that the Sub-Committee take note of the 
statements made.  
62. It was so agreed.  
- Non-Tariff Measures on Products of Ex port Interest to the Least-Developed 
Countries (WT/COMTD/LDC/W/39 and Add.1/Rev.1) 
63. The Chairman  recalled that at its last session, the Sub-Committee had had a substantive 
discussion on the note and its addendum.  The note w as well received both by the LDCs and by other WT/COMTD/LDC/M/45 
Page 14  
 
  Members.  Detailed comments were made on variou s aspects of the note.  The LDCs had underlined 
the need for enhanced financial and technical ass istance, in particular for meeting sanitary and 
phytosanitary (SPS) and technical barriers to tr ade (TBT) requirements.  They had also urged 
simplification of rules of origin associated with preference schemes.  Other Members had highlighted 
their assistance to the LDCs, especia lly in overcoming challenges with  regard to standards.  He 
recalled that at the last session, the delegation of China had made some comments on the addendum to 
the note.  In view of those comments, the Secretariat had issued a revision to the addendum contained in WT/COMTD/LDC/W/39/Add.1/Rev.1.  In the revision, the order of the countries in all tables had been presented in alphabetical order, and informat ion on quantitative restrictions with respect to 
China contained in Table 3 had been revised.   
64. The representative of Bangladesh
 said that his delegation had made detailed comments on the 
note at the last meeting.  His delegation found the note useful, as it had enhanced the knowledge and 
understanding on non-tariff measures (NTMs).  LDC market access was conditioned by both tariff 
measures as well as by NTMs.  The note had vivi dly illustrated that point.  He emphasized that 
removal of non-tariff barriers (NTBs) could make both most favoured nation (MFN) and preferential 
market access meaningful to the LDCs.  He said that the landscape of NTMs was vast.  Interventions 
were required at the border as well as in the polici es pursued behind the border.  Policies on subsidies 
pursued by some trading partners had made certa in LDC products uncompetitive in the world market.  
He recognized that few WTO agreements allowed its Members to undertake legitimate measures, and 
many Members had been imposing standards on imports.  He stressed that in this area the perspectives 
of trading partners of LDCs we re important.  The country imposi ng standards should simultaneously 
provide technical assistance and capacity building to  the LDCs to enable them to meet those 
standards.  That initiative would help LDCs mainta in uninterrupted exports.  He added that imposition 
of high standards without concomitant assistance w ould stifle entrepreneurship and frustrate LDC 
exports.  He cited an example of a non-tariff meas ure that had been affecting LDC exports.  LDCs 
were unable to utilize effectively the "Everythin g But Arms (EBA)" scheme, which had been in 
operation for five years.  He argued that high pref erence margins or extensive product coverage were 
of no use to the LDCs if they at the same time were faced with stringent rules of origin.  He referred to the Secretariat note entitled "Options for LDCs to improve their competitiveness in the textiles and 
clothing Business (WT/COMTD/LDC/W/37)", which showed that many African LDCs had been using the Cotonou scheme rather than the EBA to access  EC markets largely due to the fact that the 
rules of origin were more liberal in the former th an in the latter.  He noted that the EC had been 
working to improve its rules of origin criteria for quite some time.  He hoped for an early completion 
of this work so that the LDCs could start bene fiting fully from the EBA scheme.  He expressed 
sincere gratitude to the Secretariat for the note a nd its corrigendum.  The LDCs would continue to 
study the document and would analyze its contents in greater depth.  Finally, he requested that the 
Secretariat undertake a study in the area of trade in services, which had become an important sector 
for the LDCs.  He said that the annual market ac cess studies undertaken so far had not covered this 
area adequately.  The services tr ade was the fastest growing component of international trade.  
Numerous studies had revealed that the services s ector could hold greater potential and could ensure 
larger welfare gains than other sectors.  In many  LDCs, the contribution of the services sector to GDP 
had been growing.  While for some large LDCs, se rvices trade had become important, for some small 
LDCs, it was the dominant trading sector.  It was thus  vital that the market access situation of LDCs 
in services trade be analyzed.  He underlined th e need for the LDCs to get a full picture of 
opportunities and constraints in the sectors and modes of supply of export interest to them.  He 
strongly urged that the study be undertaken as early as possible. 
65. The representative of the United States
 expressed her appreciation to the Secretariat for the 
note, which had been prepared in a short period of time.  The subject matter of the note was complex.  
She recalled that Members in the previous round of  negotiations had faced difficulties in identifying 
and addressing NTBs, including finding appropriate solutions.  She found the note useful, as it provided some perspectives on the challenges surr ounding the subject.  She appreciated that some  WT/COMTD/LDC/M/45 
 Page 15 
 
 
  caveats had been put in the note, in particular the point that policy conclusions regarding NTMs based 
on legitimate non-economic objectives and introdu ced in a WTO-consistent manner would be 
different from conclusions based on explicit barriers wh ich did not meet those criteria.  Her delegation 
found the section on possible avenues for addressing NTMs useful.  She underlined the importance of 
findings ways to overcome LDCs' cap acity constraints.  She also stressed the need to have greater 
interaction between the private sector and the govern ments in the LDCs to identify the real problems 
and potential solutions.  She was of the view that  the work undertaken in the Committee on Sanitary 
and Phytosanitary (SPS) Measures provided a practical  model for integrating LDCs into the process 
of implementing the WTO agreements, where the LDCs  could raise specific trade concerns and build 
capacity.  She noted that the participation of LDCs  in that Committee had increased considerably.  
She went on to say that the Standards and Tr ade Development Facility (STDF) was a promising 
example of international cooperation to build LDCs ' capacity to implement the Agreement on the 
Application of SPS measures.  She urged the LD Cs to examine the submissions made by her 
delegation as well as by other Members at the non- agricultural market acce ss (NAMA) negotiations, 
and to see whether those submissions contained any NT Bs on products of export interest to them.  She 
emphasized that the LDCs might face NTMs in ot her developing country markets, which had been 
covered partially in the note.  Her delegation would appreciate a mo re thorough look at the potential 
benefits of improved South-South trade, especially  in the context of enhancing market access for 
LDCs through streamlining NTMs.  In this regard , she also acknowledged the data limitations.  She 
found the proposal of the LDCs with regard to a study  in the area of trade in services interesting.  She 
noted that services trade had become an important area for the LDCs.  The Secretariat should explore 
how it could undertake such a study.  
66. The representative of India  said that at the time of the last meeting his delegation had not been 
able to review the note in-depth, which now it had done.  The analysis undertaken by his authorities 
revealed that some of the information provided in th e note with respect to his country was misleading.  
For example, Table 3(B) of document WT/COMTD/LDC/W/39/Add.1 listing, inter alia , quantitative 
restrictions maintained by India had presented a hi storical and an outdated picture of quantitative 
restrictions maintained by his government.  He  expressed disappointment that no attempt had been 
made to clarify the current position of quantitative restrictions maintained by his government.  He 
underlined that all the quantitative restrictions a pplied on the grounds of GATT Article XVIII(b) had 
been notified to the Committee on Balance-of-Payments Restrictions in 1996, and, as per the 
agreement with Members, had been removed in 2001.  This had also been notified to that Committee.  
He continued by saying that some other NTMs included in the above document were applied on 
grounds of protection of human, animal and plant lif e or health and security considerations.  Those 
were implemented on an MFN-basis and were not directed specifically at the LDCs.  He expressed concern that by leaving out these facts, Members wo uld get a distorted picture of the NTMs adopted 
by his Government.  He informed Members that his delegation had written to the Secretariat about 
these concerns and had recently received a reply.  He had noted the Secretariat's willingness to work 
with his delegation to better reflect the current st atus of quantitative restrictions maintained by his 
government.
 
67. He also expressed concern that the note did not  specifically address the question of how to 
enable LDCs to improve their ma rket access for products on which they had been facing NTMs.  He 
drew Members' attention to paragraph 36 of the not e, where it was stated that:  "Several points should 
be noted here.  First, the purpose of this exercise is  solely to identify the NTMs on products of export 
interest to LDCs.  Second, the measures identified in those notifications are not specific to LDCs.  
Third, the compilation does not attempt to assess the ex tent to which the measures identified in those 
notifications affect the market access opportunities of LDCs".  While appreciating these caveats, he 
said that these very caveats could question the utility of  the note.  He argued that the note was of no 
practical help to the LDCs since it had not looked at measures specific to the LDCs, nor had it shed 
light on the extent to which measures identified ha d been affecting the market access opportunities of 
the LDCs.  His delegation thus failed to see any prac tical utility of such a note in its current form, WT/COMTD/LDC/M/45 
Page 16  
 
  since most of it was unrelated to existing realities.  He suggested that the Secretariat consider revising 
the note to present a more accurate and contemporary picture of the challenges faced by LDC exports.  He supported the proposal made by the delegation of Bangladesh, on behalf of the LDCs, for a study 
on the barriers to LDCs' services exports.  This had been an important potential growth area for the 
LDCs, and he was hopeful that a study in this  area would be of practical use for them. 
68. The representative of China
 said that his delegation had made some comments on the note at 
the last meeting.  Thereafter, the Secretariat ha d worked closely with his delegation, which had 
resulted in the issuance of the revision to the note.   He thanked the Secretariat for accommodating the 
concerns raised by his delegation.  He then  briefed Members on the China-Africa Summit held 
recently in Beijing. 
69. He said that the China-Africa Summit, and the third Ministerial Conference of the Forum on 
China-Africa cooperation, had been held in Beijing from 4 to 5 November 2006.  Heads of 
States/Governments and Ministers from 48 African countries as well as high- level representatives 
from international and regional organi zations had taken part in the ev ent, which had been constructive 
and fruitful.  Besides the Summit and the Forum, othe r side activities had been included:  a high-level 
dialogue between the Chinese and African businessme n;  an exhibition of the cooperation between 
China-Africa on anti-malaria; and an exhibition of commodities of the African countries.  Two 
important documents were adopted:  (i) the Decl aration on the China-Africa Summit and the third 
Ministerial Conference of the Forum on China-Africa  Cooperation, which sought to build and further 
develop the strategic partnership between China an d the African countries;  (ii) the Beijing Action 
Plan from 2007 to 2009, which described the specifi c action plan and measures to further develop 
bilateral, economic and social relations between Ch ina and the African countries.  During that event, 
his government had taken a number of specific unila teral commitments, which would be implemented 
in the next few years.  These unilateral commit ments demonstrated his government's willingness to 
work together with the African countries, most of  which were LDCs, to seek common development of 
China and the African countries, to enhance bilatera l and economic trade relati ons and to boost their 
capacity-building efforts.  He then elaborated on a few of those commitments.  First, China would 
double its assistance to Africa by 2009, from the level in 2006.  Second, China would cancel all debt 
owed by the heavily indebted poor countries and th e LDCs in Africa, in the form of interest-free 
government loans that had matured at the end of 2005.   He recalled that only recently his government 
had declared to exempt the matured debt of th e African countries, which amounted to 10.9 billion 
Renminbi.  The decision taken at the Summit in No vember 2006 was a further step to alleviate the 
debt burden of the African countries.  Third, Ch ina would further open up its market for African 
countries by increasing the number of its duty-free tariff lines under which the LDCs could export to China duty free.  The duty-free tariff lines had been increased from 119 to 442.  He added that those 
119 tariff lines already allowed the LDCs to enjoy 95 per cent of their exports to China duty free.  
With the new commitments, the percentage of duty- free entry to China from the LDCs would further 
improve.  Fourth, China would take new initiatives  in the area of technical assistance and capacity 
building.  Under this initiative, 15,000 African  professionals would be trained, 100 Chinese 
agricultural experts would be sent to Africa, ten sp ecial agricultural technology demonstration centres 
would be set up in Africa, 300 Chinese youth volunteers would be dispatched to Africa, 100 rural schools would be built in Africa, and the number of Chinese Government scholarships to African 
students would be increased from the current 2,000 per year to 4,000 per year by 2009.  He concluded 
by saying that various Ministries and department s of his country had already begun the necessary 
follow-up work to implement the consensus and th e commitments his country had taken during the 
Summit.  His government was ready to work togeth er with the African countries so as to bring the 
fruits of the Summit into reality at an early date. 
70. The Chairman
 thanked the representative of China fo r his report on the China-Africa Summit 
held in November 2006.  Before clos ing the item, he made some concluding remarks.  He said that the 
market access situation of LDCs was conditioned by  both tariff and non-tariff measures.  Efforts were  WT/COMTD/LDC/M/45 
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  required both from the LDCs as well as from the inte rnational community to overcome the challenges 
faced by the LDCs.  Initiatives such  as the IF and the STDF had b een helping LDCs to build the 
necessary capacity to conform with SPS measures undertaken by their trading partners.  He 
encouraged the LDCs to continue to engage with  their private sectors so as to gather specific 
information relating to NTMs.  That would help form ulate appropriate solutions.  He also recalled that 
the note had highlighted various mechanisms and procedures available in the WTO to address the 
concerns by the LDCs.  He proposed that the Secr etariat remain in contact with the delegations 
interested, in particular with the delegation of India,  with respect to certain clarifications to be made 
to the note.  He suggested that the Secretariat explore the possibility of undertaking a study on the 
market access situation of LDCs in the area of trade in services, along the lines requested by the 
delegation of Bangladesh.  He then proposed that the Sub-Committee take note of the statements 
made. 
71. It was so decided .  
C. OTHER BUSINESS  
72. The Chairman  said that a mid-term comprehensive globa l review of the implementation of the 
Programme of Action for the LDCs adopted in Brussels in May 2001 was held in the UN in 
September 2006.  The meeting had adopted a Decl aration in which the international community 
recommitted itself to meet the special needs of th e LDCs.  The Director-General of the WTO had 
submitted a report, under his own responsibility, as an input into the mid-term review, which 
reviewed the state of implementation of the commit ments made in the Programme of Action falling in 
the area of trade and within the competence of the WTO.  In order for a wider circulation of that 
report, he proposed that the Secretariat be i nvited to circulate it as a Sub-Committee document.  
73. It was so decided.  
74. The Chairman  informed Members that the next Sub-Committee meeting was tentatively 
scheduled for the first quarter of next year.  The exact date would be communicated in due course. 
75. In the absence of any other business, the meeting was adjourned . 
 
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