WORLD TRADE  
ORGANIZATION  WT/WGTDF/W/35 
5 October 2005 
 (05-4476) 
Working Group on Trade, Debt and Finance Original:   English 
  
 
 
COMMUNICATION FROM MAURITIUS  
ON BEHALF OF THE ACP GROUP 
  
 The following communication, dated 5 October 2005, is being circulated at the request of the 
Delegation of Mauritius on behalf of the ACP Group.  
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1. In view of the systemic importance of issues of trade, debt and finance to the development of 
the WTO’s developing Members, the Fourth Session of the Ministerial Conference at Doha in 2001 established the Working Group on Trade, Debt and Finance (WGTDF) to review the interrelationship 
between trade, debt and finance and to  make appropriate recommendations.  
2. As can be seen from the foregoing report, the WGTDF has discussed some issues covered by 
its mandate. However, it has neith er exhaustively addressed nor made  appropriate recommendations 
with respect to such issues or to the other issues related to trade, debt a nd finance that have been 
raised by developing countries in their proposals or  oral interventions at various WGTDF meetings. 
These include:  
• Issues of coherence between trade, de bt and finance policies and measures 
• Market access for developing countries to achieve or promote debt sustainability 
• The relationship between commodity price,  debt and financial sustainability  
• Review of WTO provisions relevant to trade, debt and finance with a view to address BOP 
problems  
• Review of how trade-financi ng facilities could be strengthe ned and made more secure 
• Trade policy and financial stability 
• Exchange rate volatility and trade 
• Sequencing of trade and financial policy reforms 
• Fiscal reform and trade liberalization vis-à-vis  debt and finance problems 
• Use of trade restrictions for BOP purposes and related WTO provisions 
• Externally-driven trade liberali zation and international reforms 
• Fast-track mechanisms to allow developing coun tries to take preventive or corrective trade 
measures to help them deal with financial crisis  
• Establishment of a regular committee on trade, debt and finance 
• Mechanism for increasing exports to address BOP problems 
 
3. The unresolved issues above clearly indicate that the work of the WGTDF is not yet 
concluded. Therefore the continued discussion and ex amination of the issues identified above leading 
to the adoption of appropriate recommendations and decisions by the General Council or Ministerial 
Conference need to remain an integral  part of the WTO’s work programme.  
 WT/WGTDF/W/35 
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4. In light of the conclusion above, the WGTDF makes the following recommendations: 
 
 (1) The mandate in the 2001 Doha Ministerial Declaration shall be reaffirmed so that the 
work programme on the relationship between trade, debt and finance shall continue. 
Such work programme shall examine, in mo re detail, such relationship in order to 
provide appropriate recommendations to th e General Council to effectively address 
the trade-related causes of developing countries’ debt and finance difficulties. In particular, such continuing work prog ramme under the 2001 Doha mandate shall, 
inter alia : 
 
(i) Address the decline and volatility of export earnings of developing countries 
through comprehensive measures th at boost their export earnings by, inter 
alia, enhancing their market access opportunities; effectively dealing with the 
issue of declining commodity prices (including commodity price supports); 
and binding commitments for increased and sustainable technical and 
financial assistance to address supply-side constraints; 
(ii) Review existing relevant WTO Agreements with a view to:  
(a) addressing their relationship to the problems of financial instability, 
exchange rate volatility, financ ial flows, balance-of-payments 
adjustments, and external indebtedness;  and 
(b)  if needed, identify changes in such WTO agreements to effectively 
address the trade-related causes of external account imbalances or balance-of-payments problems experienced by developing and least-developed countries; 
(iii) Examine and develop trade-related me chanisms for increasing and stabilizing 
the export earnings of developing countries faced with:  
(a)  a major financial or balance- of-payments crisis that cannot be 
resolved by import restriction measures authorized in various WTO agreements; or  
(b)  an unsustainable debt situation.  
(iv) Periodically evaluate the underlying de velopment-oriented coherence of 
policies emanating from the WTO and th e Bretton Woods institutions with a 
view to ensuring the gradualness, c oherence and proper sequencing of the 
trade liberalization process in accord ance with the national development 
needs and priorities of developing and least-developed countries. Such periodic evaluations shall be guided by the concept of policy space as defined 
by UNCTAD XI; and 
(v) Monitor and follow-up the outcomes of  relevant major United Nations 
Conferences on subjects related to tr ade, debt and finance, and make 
appropriate recommendations on actions  that can be taken by the WTO 
within its competence and mandate with respect to advancing such outcomes.  WT/WGTDF/W/35 
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  (2) It is also recommended that the Sixth Session of the Ministerial Conference in Hong 
Kong, China, on 13 to 18 December 2005, pursuant to Article IV:7 of the WTO Agreement, shall establish a Committee on Tr ade, Debt and Finance in order to 
effectively carry out the work programme on the relationship between trade, debt and 
finance outlined above. 
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