WORLD TRADE  
ORGANIZATION  WT/COMTD/LDC/13 
22 November 2006 
 (06-5618) 
Sub-Committee on Least-Developed Countries   
  
 
THE MID-TERM REVIEW OF THE IMP LEMENTATION OF THE PROGRAMME  
OF ACTION FOR THE LEAST-DEVELOPED COUNTRIES  
FOR THE DECADE 2001-2010  
 
Report by the Director-General of the World Trade Organization (WTO)
1 
 
 
EXECUTIVE SUMMARY 
 
 The Programme of Action (POA), adopted at the Third United Nations Conference on Least-Developed Countries (LDC-III) held in Brussel s in May 2001, provides a global framework for 
a strong partnership to accelerate sustained econom ic growth and developm ent in LDCs, and to 
integrate them into the global economy.  LDCs, 32 of which are WTO Members and a further ten in 
the process of acceding to the WTO, have an important  stake in the work of the organization.  In 
launching the latest round of the multilateral trad e negotiations, the "Doha  Development Agenda" 
(DDA) in Qatar in November 2001, WTO Ministers embraced the objectives of the POA and 
expressed their determination to build effectively u pon them.  The trade-related elements of the POA 
are an integral part of the WTO Work Programme for LDCs, the dedicated platform to address issues 
and concerns of interest to the LDCs by WTO Members.   I am pleased to report that considerable progress has been made since 2001, by the WTO 
Membership and the Secretariat, to  advance the interests of LDCs in  the multilateral trading system.  
While the specifics of such progress are detailed in the subsequent sections of this report, let me 
highlight the main achievements to date.     First, the DDA negotiations have placed special  emphasis on taking into account the interests 
and concerns of LDCs.  While various issues of inte rest to them are being addressed in different areas 
of the negotiations, the largest gains that Doha ca n potentially deliver are in market access, whether 
for industrial or agricultural products, or for trade in services.  In this regard , I welcome the agreement 
reached at the Ministerial Conference held in H ong Kong in December 2005, to provide duty-free and 
quota-free market access for LDC exports, along with  four other LDC-specific decisions.  Duty-free 
and quota-free market access has been a shared obj ective of the international community under the 
Millennium Development Goals.  The Hong Kong decision therefore represents a historic moment in 
which the WTO membership has responded to one of the key demands of LDCs.   Second, the Cotton Initiative, launched by four  African LDCs dependent on cotton exports, 
was a test on whether the multilateral trading system , under the auspices of the WTO, was capable of 
delivering on its development dime nsion, as demanded by the POA.  Recognising the vital importance 
of the cotton sector to many LDCs, the WTO memb ership came up with solutions to address their 
                                                     
 
1 This report was prepared by th e Director-General of the WTO under his own responsibility as an 
input into the mid-term comprehensive global review of the implementation of the Programme of Action (POA) 
for the Least-Developed Countries (LDCs) for the Decade 2001-2010,  which took place in New York in 
September 2006.  At its 45th Session, the Sub-Comm ittee on LDCs agreed to circul ate the report for Members' 
information. WT/COMTD/LDC/13 
Page 2  
 
  concerns, on both their trade and development aspec ts.  On the former, by agreeing to pursue the 
trade-related aspects "ambitiously, expeditiously and specifically" within the agriculture negotiations.  
In Hong Kong, developed-country Members agreed to  the elimination of all forms of export subsidies 
in the cotton sector by 2006 (instead of 2013 for the r est of the agriculture sector) and to the faster and 
deeper reduction of trade-distorting domestic support than for other agricultural products.  Further, I 
have been working closely with the developmen t community which has been forthcoming on scaling 
up development assistance for cotton dependant LDCs.   Third, LDCs as a Group have been granted a hi gh degree of flexibility which takes account of 
their level of economic development.  For instan ce, in the DDA negotiations, LDCs are exempted 
from making reduction commitments in the goods ne gotiations or undertaking new commitments in 
services.  These exemptions allow them to concentr ate on pursuing their offensive interests, rather 
than safeguarding their defensive interests in the negotiations.  In the rule-making areas, LDCs are 
generally expected to undertake commitments only to  the extent consistent with their development 
needs.  The implementation of new rules will be  supported by the provision of technical assistance 
and capacity building.  It should  also be noted th at WTO Members have granted LDCs extensions of 
the transition periods to implement their existing ob ligations from the previous round of negotiations, 
such as in the area of intellectually property rights.   Fourth, the accession of LDCs into the WTO has long been a priority for the Membership.  I 
am happy to report that efforts to facilitate th e accession process of LDCs have resulted in the 
adoption of the Guidelines on LDCs' Accession, whic h in 2003, facilitated the accession of Cambodia 
and Nepal, the first two LDCs to join the WT O since its establishment in 1995.  Moreover, good 
progress has also been achieved in other LDC acce ssions and I remain fully committed to continue 
providing my good offices and personal support to wards the timely conclusion of their accession 
processes.  
 
 Fifth, on the part of the Secretariat, we have  increased our support to the active participation 
of LDCs in the work of the organization through the establishment of a dedicated unit dealing with 
LDC issues in early 2003 and the increased prov ision of trade-related technical assistance and 
capacity building on a priority basis.  WTO's tec hnical assistance activities not only help LDCs to 
adjust to WTO rules and disciplines, implement ob ligations and exercise the rights of membership, 
but, importantly, also enhance their institutional capacities to benefit from the multilateral trading 
system.  Since 2001, LDCs have been associated with 40 to 45 per cent of some 450 to 500 technical 
assistance activities per year organised by the Secret ariat.  Furthermore, when and where the WTO 
alone is not fully equipped to address the complexity  of LDCs' trade and development challenges, we 
have increased our co-operation and coordination with  other partner instituti ons, including bilateral, 
regional and multilateral, that are better equipped in terms of expertise and resources to meet the 
needs of the LDCs.    
Finally, the POA recognizes the importance of ma instreaming trade into national development 
plans and poverty reduction strate gies of LDCs.  The WTO has been an active advocate of 
mainstreaming trade into national development st rategies, particularly through the Integrated 
Framework for LDCs (IF) and the Aid for Trade initiative.  I am pleased to note the tangible progress 
made to date in the implementation of the IF as well as the recent agreement on the recommendations 
to enhance the IF.  The recommendations include, among other things, a significant scaling up of resources from the current US$35 million to a funding target of US$400 million over a five-year period;  supporting in-country capacity for implementa tion;  and, enhancing governance.  Similarly, 
the recently concluded work of the Task Force on Aid for Trade contains a number of ideas on how to 
build the supply-side capacity a nd trade-related infrastructure fo r developing and least-developed 
countries to benefit from WTO Agreements and more broadly to expand their trade.  The next few 
months will be critical in translating these ideas in to practical aspects in the delivery of trade and  WT/COMTD/LDC/13 
 Page 3 
 
 
  development promises.  On my part, I will ensure, in consultations with de velopment partners, that 
appropriate mechanisms be deve loped to secure additional financ ial resources for Aid for Trade. 
 
 In conclusion, I believe that the work in th e WTO since 2001 has contributed significantly to 
achieving the goals of the POA.  We have witnessed that LDCs themselves, being active participants 
in the DDA negotiations, have been advocating that  their greater integration into the multilateral 
trading system is a pre-requisite for realising thei r growth potential and poverty alleviation.  In this 
regard, I cannot overemphasize the potential developm ent dividends that a successful outcome of the 
DDA can deliver to further advance the objectives of Bru ssels.  In this respect, I believe that the rapid 
resumption of the DDA negotiations which were susp ended last July, is of crucial importance for 
LDCs.  But we also know that whichever the progress can be made in advancing the interests of LDCs 
in the multilateral trading system, their trade and development challenges remain and would require 
further efforts from LDCs themselves as well as fro m their partners.  On the part of the WTO 
Secretariat, I am mindful of their special challenges and I will continue to work to help LDCs advance 
their interests in the WTO.   WT/COMTD/LDC/13 
Page 4  
 
   
I. INTRODUCTION:  THE DOHA DEVELOPMENT AGENDA AND 
LEAST-DEVELOPED COUNTRIES 
1. This report is prepared by the Director-General of the WTO under his own responsibility as 
an input into the mid-term comprehensive global re view of the implementation of the Programme of 
Action (POA) for the Least-developed Countries (LDC s) for the Decade 2001-2010.  It reviews the 
state of implementation by the WTO of the comm itments made in the POA by the international 
community, in particular, those included in Comm itment Five "Enhancing the Role of Trade in 
Development", in so far as they fall within the comp etence of the WTO.  It should also be noted that 
this report builds on the information on the implementation of the POA, provided by the WTO on an 
annual basis to the Office of the UN High Repr esentative on the LDCs, Landlocked Developing 
Countries and Small Island Developing States.   
2. The timespan 2001-2006 under the mid-term review  coincides with a period in which for the 
first time in the history of the multilateral tradi ng system, the WTO membersh ip has collectively put 
development at the centre of a round of trade ne gotiations.  The Doha De velopment Agenda (DDA) 
was launched in November 2001 with a vision to place the concerns and interests of developing 
countries, especially those of LDCs, at the heart of the new round of comprehensive trade 
negotiations.  Emphasis on the development dimensi on illustrates a recognition that trade can play a 
major role in the promotion of economic developm ent and in the alleviation of poverty, echoing the 
LDC Ministers in Brussels six months earlier at LDC-III.  As one of the important objectives of the 
DDA negotiations, WTO Members committed themselves to "addressing the marginalisation of LDCs 
in international trade" and to "improving their effective participation in the multilateral trading 
system," effectively building on th e spirit and commitments of Brussels.
2   
3. Shortly after Doha, the WTO adopted its Work  Programme for LDCs in February 2002, 
signalling an important step in respondi ng to the LDC specific issues and concerns .3  The trade-related 
elements of the POA form an integral part of this  Work Programme for LDCs, the first of its kind in 
the WTO.  Other issues included in the Work Progra mme are:  market access;  trade-related technical 
assistance and capacity building; diversification of production and export base;  participation in the 
multilateral trading system and accession.  The impl ementation of the Work Programme has been a 
priority for the Sub-Committee on LDCs, the dedicat ed body for LDC issues in the WTO, as well as 
for the Director-General.4  Since Doha, the Director-General has reported on several occasions to the 
membership on progress made in the implementation of both the Work Programme and the Integrated 
Framework for LDCs (IF).5   
4. The Framework Decision reached at the Gene ral Council meeting in August 2004 and the 
Sixth Ministerial Conference in Hong Kong, Chin a in December 2005, marked progress in the DDA 
negotiations in advancing the interests of the LDCs .  First, recognizing that enhanced market access 
plays a key role in creating economic opportunitie s for LDCs, an agreement was reached at the 
Hong Kong Ministerial Conference to grant duty-free and quota-free (DFQF) market access to 
products originating from the LDCs (see Section II).  Second, while advancing LDCs' offensive 
interests in different areas, the negotiations also  take account of the flexibility that LDCs would 
require in undertaking commitments and adopting ru les and disciplines (see Section III).  Third, the 
                                                      
2 Paragraph 3 of the Doha Ministerial Declaration, contained in document WT/MIN(01)/DEC/1. 
3 Document WT/COMTD/LDC/11. 
4 It is also worth mentioning that in an effort to  better respond to the LDCs' needs, the WTO Secretariat 
reorganized and streamlined its Divisions dealing with development issues.  In February 2003, an LDC Unit was 
established within a newly created Deve lopment Division.  The Unit serves as  the focal point for all LDC issues 
within the Secretariat.   
5 Documents WT/GC/W/485/Rev.1 and WT/MIN(03)/1.   WT/COMTD/LDC/13 
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  DDA has attached great importance to the institutional integration of LDCs into the WTO through 
streamlining the lengthy and complex process of accession, as well as the enhanced provision of 
technical assistance and capacity building (see Sections IV and V).  Moreover, in areas where the WTO is not appropriately equipped, such as addre ssing supply-side issues, partnership arrangements 
with other institutions have been fostered and stre ngthened (see Section V).  The most notable effort 
in this regard is the enhancement of the IF, which both the POA and the WTO Ministerial 
Declarations endorsed as a viable model fo r LDCs' trade development (Section VI). 
5. Since 2001, the WTO has contributed to the attain ment of the objectives set out in the POA.  
This has been made possible, first and foremost , by the LDCs themselves who have vigorously and 
pragmatically promoted their interests in the mu ltilateral trading system.  Despite their human and 
capacity constraints, today the LDC Group with 32  Members and ten Observers is considered as one 
of the most active participants in the WTO.  At the same time, any achievement by the LDCs could 
not have been possible without the support and un derstanding of other Members.  As the trade 
negotiations enter the final phase, it is hoped that  WTO Members would consolidate the development 
dividends of the DDA, thereby further contributing to the promises of the POA.   
II. MARKET ACCESS FOR LDCS  
6. Commitment Five of the POA calls on development partners to improve market access for 
LDCs by working towards the objective of DFQF ma rket access for all LDCs' exports.  This call was 
reiterated by WTO Ministers in Doha, who at th e same time committed themselves to consider 
"additional measures for progressive improvements in market access for LDCs."
6  The goal of DFQF 
market access goes beyond the agenda of the WTO and is the shared objective of the international 
community as expressed in the Millennium Develo pment Goals in addressing the special needs of 
LDCs.7   
7. Since 2001, the international community h as made progress on improving market access for 
products originating from LDCs.  First, the LD C-III had generated the momentum for enhancing 
market access for LDCs, with a number of deve loped countries announcing improvements in their 
preferential market access schemes prior to or at th e time of the Brussels Conference.  These included 
the DFQF initiatives for all products from all LD Cs by the European Communities under "Everything 
but Arms", as well as by New Zealand and Norway.8  The United States, through the African Growth 
and Opportunity Act (AGOA), improved market access for Sub-Saharan African countries, many of 
which are LDCs.9  Since Doha, Australia, Canada, Icela nd, Japan and Switzerland also announced 
additional improvements in market  access on an autonomous basis.10  The Sub-Committee on LDCs, 
through the Work Programme for LDCs, has monitored these improvements, based on the 
                                                      
6 Paragraph 42 of the Doha Minister ial Declaration states that "we co mmit ourselves to the objective of 
duty-free, and quota-free market access fo r products originating from LDCs". 
7 As an official indicator of Goal 8 of the United Nations Millennium Development Goals, the 
proportion of imports from developing and least-develo ped countries (excluding arms and oil) admitted to 
developed countries duty-free is regularly monitored and reported by the international community.  In 2004, the latest year available, 79 per cent of LDC exports entered developed country markets duty free.  (UN website 
http://unstat.un.org/unsd/mdg/default.aspx). 
8 In the case of the European Communities, banana, rice and sugar had transition periods for the 
implementation of duty-free and quota-free market access.   The latest notifications  of market access initiatives 
can be found in documents WT/COMTD/N/4/Add.2  for the EC, WT/COMTD/27 for New Zealand and 
WT/COMTD/N/6/Add. 1 for Norway.  
9 Document WT/COMTD/N/1/Add. 3.  This is an ad dition to the GSP benefits  which are accorded to 
designated LDCs, as notified in document WT/COMTD/N/1/Add.2. 
10 The notifications are contained in documents WT/COMTD/N/18 for Australia, 
WT/COMTD/N/15/Add.2 for Canada, WT/COMTD/N/17 and Corr.1 for Iceland, WT/COMTD/N/2/Add.12 for 
Japan and WT/COMTD/N/7/Add.2 for Switzerland. WT/COMTD/LDC/13 
Page 6  
 
  notifications and annual reports prepared by the Secretariat.
11  LDCs, on their part, have actively 
pursued the objective of DFQF in different nego tiating groups.  Both in the Agriculture and 
Non-Agricultural Market Access (NAMA) negotiations , their demand for DFQF was reflected in the 
Framework Decision of August 2004.12  In the negotiations on special and differential treatment 
(S&D), the proposal on DFQF was among 25 proposals submitted by the LDCs with a view to 
making the existing S&D provisions "mor e precise, effective and operational".13  In the lead-up to the 
Hong Kong Ministerial Conference, the LDCs' proposal on DFQF, together with four other proposals, had been accorded priority atte ntion in the S&D negotiations.
14  
8. In the Hong Kong Ministerial Conference, Ministers agreed that developed countries, and 
developing countries declaring themselves in a pos ition to do so, should provide DFQF market access 
on a lasting basis, for all products originating from a ll LDCs by 2008 or no later than the start of the 
implementation period of the outcome of the DDA, in a manner that ensures stability, security and 
predictability.  It was also agreed that those countries facing difficulties in doing so, should provide 
DFQF market access for at least 97 per cent of produ cts originating from LDCs, defined at the tariff 
line level, with a view to progressively achieving the 100 per cent product coverage. 15   
                                                      
11 The Secretariat's annual reports "Market Access Issues Related to Products of Export Interest 
Originating From LDCs" are contained in WTO documents WT/COMTD/LDC/W/28, 31, 35 and 38.  In 
addition to the review of market access improvements, each study contains  specific topic related to market 
access for LDCs, such as non-tariff barri ers (W/28), rules of origin (W/31), the utilization of preferences (W/35) 
and the market access conditions in developing coun tries (W/38).  Moreover, at the request of the 
Sub-Committee on LDCs, the Secretariat prepared a note "Options for Leas t-Developed Countries to Improve 
their Competitiveness in the Textiles and Clothing Business", in document WT/COMTD/LDC/W/37, in light of the termination of the Agr eement on Textiles and Clothi ng on 31 December 2004.  
12 The Framework Decision is contained in document WT/L/579.  In the Decision, paragraph 45 of 
Annex A (Agriculture) states:  "Developed Members, and developing country Members in a position to do so, should provide duty-free and quota-free market access for products originating from least-developed countries".  
Moreover, paragraph 10 of Annex B (NAMA) states:  "Furthermore, in recognition of the need to enhance the 
integration of least-developed countries into the multilate ral trading system and support the diversification of 
their production and export base, we call upon developed country participants and other participants who so 
decide, to grant on an autonomous basis duty-free an d quota-free market access for non-agricultural products 
originating from least-develope d countries by the year [...]". 
13 Document TN/CTD/W/4 and Add.1.   
14 The LDC Agreement-specific proposals relate to  the Understanding in Respect of Waivers of 
Obligations under the GATT 1994, the Enabling Clause, the Agreement on Trade-Related Investment Measures 
and the Decision on Measures in Favour of Least-Developed Countries.   
15 The Decision on DFQF, as contained in proposal 36 of Annex F of the Hong Kong Ministerial 
Declaration (WT/MIN(05)/DEC), includes a number of elements.  For the sake of completeness, it is reproduced 
below:  
"36) Decision on Measures in Favour of Least-Developed Countries  
 
We agree that developed-country Members shall, and developing-country Members declaring 
themselves in a position to do so should:   
(a)(i) Provide duty-free and quota -free market access on a lasting ba sis, for all produ cts originating 
from all LDCs by 2008 or no later than the start of the implementation period in a manner that ensures stability, security and predictability. 
    (ii) Members facing difficulties at this ti me to provide market access as set out above shall 
provide duty-free and quot a-free market access for at least 97 per cent of products originating 
from LDCs, defined at the tariff line level, by 2008 or no later than the start of the 
implementation period.  In addition, these Members shall take steps to progressively achieve 
compliance with the obligations set out above, taking into account the impact on other developing countries at similar levels of development, and, as appropriate, by incrementally 
building on the initial list of covered products.  WT/COMTD/LDC/13 
 Page 7 
 
 
  9. Since Hong Kong, efforts have been made to  operationalize the decision on DFQF market 
access for LDCs.16  Japan and the United States have notified the domestic processes for 
implementing the decision.17  Several developing countries have also indicated their intention to 
improve market access for LDCs.  Given the grow ing importance of developing country markets, 
which absorbed as much as 38 per cent of the LDC exports in 2004, these are significant 
developments, responding to the calls made in Brussels.18  LDCs on their part have submitted a 
proposal calling on Members to implement the decision on DFQF market access in a way which is commercially meaningful, and which contri butes to the expansion of LDC exports.
19  At the same 
time, parallel efforts have been made to ensure th at the decision is duly reflected in the modalities of 
the Agriculture and NAMA negotiations .20 
10. While the international community has made pr ogress in according lower tariff treatment for 
the exports originating from LDCs since the Brussels and Doha Conferences, non-tariff barriers 
(NTBs) have become more prominent market access obstacles.  A study by the Secretariat illustrates 
the magnitude and complexity of the NTBs that LDCs face in export markets.21  Rules of origin, 
associated with preferential market access schemes, are frequently cited as one of the most prevalent 
NTBs hindering LDC exports.  The POA called for the simplification of rules of origin by developed 
countries in granting improved market access for LDCs, so as to ensure transparency and 
predictability.  This call was reiterated by WTO Ministers when agreeing to the DFQF decision in 
Hong Kong, stipulating the need to ensure that "prefe rential rules of origin applicable to imports from 
LDCs are transparent and simple, and contribute to facilitating market access".  Pursuant to this call, 
                                                                                                                                                                     
    (iii) Developing-country Members shall be permitted to phase in their commitments and shall 
enjoy appropriate flexibility in coverage. 
 
(b) Ensure that preferential rules of origin appl icable to imports from LDCs are transparent and 
simple, and contribute to facilitating market access. 
 
 Members shall notify the implementation of the schemes adopted under this decision every year to the 
Committee on Trade and Development.  The Comm ittee on Trade and Development shall annually 
review the steps taken to provide duty-free and quota-free market access to the LDCs and report to the 
General Council for appropriate action.  
 We urge all donors and relevant international ins titutions to increase financial and technical support 
aimed at the diversification of LDC economies, while providing additional financial and technical 
assistance through appropriate de livery mechanisms to meet their implementation obligations, 
including fulfilling SPS and TBT requirements, and to  assist them in managing their adjustment 
processes, including those necessary to face the results of MFN multilatera l trade liberalisation". 
 
16 In agreeing to the Decision on DFQF, Ministers took note of the understanding that the decision was 
a framework and that Members were urged to set out by the end of 2006 the means by which they would 
implement the decision. 
17 The notifications by the United States and Ja pan are contained in documents WT/COMTD/W/149 
and 150, respectively.  More detailed information on the state of DFQF provided to LDCs is in document 
WT/COMTD/LDC/W/38 and its Corrigendum.   
18 Top ten markets for LDCs in 2004 were:  EU 15 (29.2 per cent), US (22.7 per cent), China  
(17.8 per cent), Thailand (5.0 per cent), Japan (4.2 per cent), India (2.9 per cent), Chinese Taipei (2.9 per cent), 
Korea (1.8 per cent), Canada (1.5 per cent) and Singapore (1.2 per cent).  Moreover, in 15 LDCs, developing 
countries account for more than 50 pe r cent of their export markets.   
19 The proposal by the LDC Group, contained in document TN/CTD/W/31, has been submitted as an 
input in the S&D negotiations, as well as in the ma rket access negotiations in Agriculture and NAMA.  
20 The draft modalities are contained in documents TN/AG/W/3 for Agriculture and TN/MA/W/80 for 
NAMA. 
21 Document WT/COMTD/LDC/W/39 and its Addendum.   WT/COMTD/LDC/13 
Page 8  
 
  the LDC Group has submitted a proposal that points  to the need for the DFQF decision to be 
accompanied by a single set of rules of origin.
22   
III. ADDRESSING LDC INTERESTS AND CONCERNS IN THE DDA NEGOTIATIONS 
11. LDC Ministers in Brussels declared that a tr ansparent, non-discriminatory and rules-based 
multilateral trading system was essentia l for LDCs to reap the potential benefits of globalization.  In 
advancing the development dimension of trade, th ey also stressed the importance of implementing 
both existing and new S&D provisions in favour of LDCs as part of multilate ral trade negotiations.  
This section will review progress made in LDCs' othe r offensive, as well as defensive interests in the 
DDA negotiations.   
Advancing LDCs' offensive interests  
 
12. In addition to the DFQF objective, the POA calls for action in the areas of commodities, 
services and trade facilitation which can make a si gnificant contribution to the economic development 
in LDCs.  All three areas are included in the DDA.  With regard to those developing and 
least-developed countries dependent on the export of commodities, WTO Ministers recognized the 
challenges they face, caused by the adverse impact of the long-term decline and sharp fluctuation in 
the prices of these commodities.23  It was agreed in Hong Kong that  their particular trade-related 
concerns be addressed in the course of the Agriculture and NAMA negotiations.24  A prominent 
example is the Cotton Initiative, which is being vi gorously pursued by four West and Central African 
LDCs, namely, Benin, Burkina Faso, Chad and Mali.25  In August 2004, recognizing the vital 
importance of cotton for developing countries, esp ecially the LDCs, WTO Me mbers accorded special 
priority to addressing their concerns "ambitiously, expeditiously and specifically" in the Agriculture 
negotiations.  In this context, Members in th eir Framework Decision established the Sub-Committee 
on Cotton, a dedicated body to work on all trade- distorting policies affecting the sector in all three 
pillars of market access, domestic support and export competition.26  At the Hong Kong Ministerial 
Conference, this call was translated into an agreem ent to eliminate all forms of export subsidies by 
developed countries in the cotton sector in 2006;  and the provision of DFQF market access by 
developed countries for cotton exports from LDCs from the commencement of the implementation 
period.27  Since then, the four cotton proponents have submitted two further proposals on the 
reduction of trade-distorting domestic support in the cotton sector.28   
13. Another significant aspect of the Cotton Initia tive is its emphasis on the complementarity 
between the trade and development assistance aspec ts.  Pursuant to the Framework Decision of 
August 2004, WTO Members, inter alia , mandated the Director-General to consult with bilateral 
donors and multilateral institutions with a view to mobilizing and scaling up resources towards 
development of the economies where cotton has v ital importance.  Since then, seven rounds of 
consultations have been convene d on the development assistance aspects.  The Director-General has 
                                                      
22 Document TN/CTD/W/30.   
23 Paragraph 55 of the Hong Kong Ministerial Declaration. 
24 Since the Hong Kong Conference, the African Group has submitted a proposal on "Modalities for 
Negotiations on Agricultural Commodity Issues" contained in document TN/AG/GEN/18, to the Agriculture 
negotiations.  In parallel, the work on commodities has been undertaken in the Committee on Trade and 
Development, where the submission by two LDCs, Tanzania and Uganda, together with Kenya, contained in document WT/COMTD/W/113, has formed the basis for discussion.     
25 Document TN/AG/GEN/4. 
26 Document WT/L/579, Annex A, paragraph 4. 
27 It should be noted that these agreements  form part of the Single Undertaking.  
28 Documents TN/AG/SCC/GEN/4 and TN/AG/SCC/GEN/6.  WT/COMTD/LDC/13 
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  periodically reported on his consultations to the membership.29  His reports indicate the tangible 
progress that has been made in terms of commitm ents, on the part of the development community, 
and domestic cotton sector reforms on the part of the cotton proponents for the more efficient use of 
assistance provided.  The donor/proponent partnershi p, within the Consultative Framework process 
established by the Director-General to deliver on the mandate for cotton development assistance, is 
addressing the challenges related to operational implementation of the projects and activities. 
14. Ministers in Brussels and Doha have recognized the key roles that trade in services can play 
in promoting not only economic growth but also  social and development objectives, such as 
addressing poverty and improving universal access to basic services.  The DDA has stressed the 
importance of increased participa tion of developing countries, especially of the LDCs, in the services 
trade.  In September 2003, WTO Members adopted the modalities for the special treatment for LDC 
Members in the negotiations on Trade in Services.30  At the Hong Kong Ministerial Conference, WTO 
Members further agreed to developing methods fo r the full and effective implementation of the 
modalities, including appropriate mechanisms for acco rding special priority to sectors and modes of 
supply of export interest to LDCs.  Subsequently , the LDC Group has submitted a proposal in this 
regard.31  Furthermore, given their special export inte rest in the movement of natural persons as 
defined in mode 4 of the GATS, LDCs have identifie d four categories of service suppliers and made a 
collective request to the WTO membership, asking th eir trading partners to make commitments in 
these sectors.32   
15. Added to the DDA negotiations under the Fram ework Decision of August 2004, the trade 
facilitation negotiations is another area where offens ive interests have been expressed by LDCs.  For 
those countries, procedural and institutional obstacles  to cross-border trade can inhibit the benefits 
accruing from market opening and seriously impede thei r ability to compete eff ectively in the global 
economy.  This is especially true for landlocked c ountries, including for 16 out of the 50 LDCs, as 
facilitating transit arrangements is of vital importanc e in determining their export competitiveness that 
is often hindered by high cost of transport .33  Several LDCs have co-spons ored propositions teaming 
up with developing, and sometimes developed c ountries.  Concrete measures were especially 
proposed for the transit area, as well as with respect to enquiry points and the prohibition of a consular 
transaction requirement.34  
Safeguarding LDCs' defensive interests 
 
16. The DDA is mindful of the flexibility and suppor t that LDCs require in implementing rules 
and disciplines resulting from the previous negotiati ons and adopting any new commitments that will 
arise from the current trade negotiations.  These ar e laid down in S&D provisions.  One key element 
of such S&D provisions is the need for technical a ssistance and capacity building, which is elaborated 
                                                      
29 His periodic reports are contained in documents WT/GC/83 and Add.1 for 2004, and WT/GC/97 and 
Add.1 for 2005. 
30 The modalities are contained in document TN/S/13. 
31 Document TN/S/W/59. 
32 The categories of services suppliers identified by  the LDCs include:  independent professionals, 
business visitors, contractual service suppliers;  and others.  
33 Landlocked LDCs are:  Afghan istan, Bhutan, Burkina Faso, Burundi, Central African Republic, 
Chad, Ethiopia, Lao PDR, Lesotho, Malawi, Mali, Nepal, Niger, Rwanda, Uganda and Zambia. 
34 Rwanda co-sponsored proposals with Paraguay and Switzerland and others, as contained in 
documents TN/TF/W/39, W/119 and W/133, on improving and clarifying the provisions of GATT Article V with a view to expediting the movement of goods in  transit.  Uganda co-sponsored proposals with the 
United States, as contained in documents TN/TF/W/22, W/86 and W/104, on the prohibition of requiring 
consular transactions, including consularization-related fees and charges, in connection with the importation of goods.  Solomon Islands, together with other small vulnerable economies, co-sponsored a proposal on enquiry 
points, as contained in document TN/TF/W/129/Rev.1.  WT/COMTD/LDC/13 
Page 10  
 
  in Section V.  Another element is additional flexib ility that has been granted to LDCs in comparison 
to other developing countries.  An example of this additional flexibility includes the exemption of 
LDCs from making any reduction commitments in the market access negotiations in Agriculture and 
NAMA or undertaking new commitments in services.
35  These exemptions have allowed LDCs to 
concentrate on advancing offensive interests, rather  than on safeguarding defensive interests in the 
DDA negotiations.36  Furthermore, LDCs have insisted on their full access to other S&D provisions 
accorded to developing countries, including the possi bility of using the Special Safeguard Mechanism 
that is being established in the Agriculture negotiations.   
17. In the areas of WTO rules, LDCs have been ac tive in ensuring that multilateral trade rules and 
disciplines reflect their concerns and development ne eds.  For instance, the LDC Group, together with 
the WTO African Group, has put forward a proposal on food aid that would take into account their 
interests as food aid recipient countries and to ensu re that the disciplines being developed in the 
Agriculture negotiations do not unintentionally impede  the delivery of food aid provided to deal with 
emergency situations.37  In the Trade Facilitation negotiations, LDCs have secured that they would 
"only be required to undertake commitments to the extent consistent with their individual 
development, financial and trade needs or th eir administrative and institutional capabilities."38  It  is 
further assured that "the extent and the timing of entering into commitments shall be related to the 
implementation capacities of ... LDCs", and that "t hose Members would not be obliged to undertake 
investments in infrastructure projects beyond their means."39  A similar understanding has been 
reaffirmed in the S&D negotiations, which at the same time stresses the importance of providing 
technical and financial support, including thro ugh WTO's coordination with other development 
partners.40  
18. Longer implementation periods are another S&D in strument to accord flexibility to the LDCs 
to comply with rules, often together with the provi sion of technical assistance and capacity building.  
For instance, in the Trade Facilitation negotiati ons, longer implementation periods have been 
proposed as one of the measures to help LDCs comply with any new commitments resulting from the 
negotiations .  Moreover, decisions have been made to  extend transition periods for LDCs to 
implement existing WTO agreements resulting from th e previous negotiations.  For instance, as part 
of the S&D negotiations, Ministers in Hong Kong agreed to grant LDCs with an additional 
seven years to maintain existing measures that de viate from their obligations under the Agreement on 
Trade-Related Investment Measures (TRIMS).41  Under this decision, LDCs are also allowed to 
introduce new measures that deviate from their obligations under the Agreement for a duration of 
five years.   
19. While not part of the DDA negotiations, in De cember 2005, WTO Members agreed to extend 
the transition period given to LDCs for the im plementation of the Agreement on Trade-Related 
                                                      
35 For other developing countries, the principle of "less than full reciprocity" generally applies.   
36 Non-reciprocal preferential market access, including that being provided thr ough the DFQF decision, 
has become one of defensive issues for some developing and least-developed countries.  If a country's exports 
benefit from non-reciprocal market access to certain developed countries, their preference margins may be 
eroded as a result of the MFN-based lib eralization.  Recognizing this as a challenge, Minister s in Hong Kong 
mandated the NAMA Negotiating Group to assess the scope of the problem with a view to finding solutions.   
37 Document TN/AG/GEN/13. 
38 Contained in paragraph 3 of Annex D of the August 2004 Framework Decision, document 
WT/L/579. 
39 Contained in paragraph 2 of Annex D of the August 2004 Framework Decision, document 
WT/L/579.  Paragraph 6 further states that "in cases where required support and assistance for such 
infrastructure is not forthcoming, and where a developing or least-developed Member continues to lack the 
necessary capacity, implementation will not be required". 
40 Contained in Decision 88 of Annex F of the Hong Kong Ministerial Declaration, WT/MIN(05)/DEC. 
41 Contained in Annex F of the Hong Kong Ministerial Declaration.  WT/COMTD/LDC/13 
 Page 11 
 
 
  Aspects of Intellectual Property Rights (TRIPS) until 1 July 2013, which was due to expire on 
1 January 2006.42  This Decision came in addition to the ear lier Decision taken in June 2002, pursuant 
to the Doha Declaration, to extend the transiti on period for LDCs until 1 January 2016 for certain 
obligations with respect to pharmaceutical products.43  Furthermore, in August 2003, the General 
Council adopted a decision which grants waiver s from the obligations set out in the TRIPS 
Agreement, making it easier for those countries to  obtain cheaper generic versions of patented 
medicine .44  This was done pursuant to the Doha Decl aration on the TRIPS Agreement and Public 
Health, which recognized the difficulties fa ced by WTO Members with insufficient or no 
manufacturing capacities in the pharmaceutical industr y in effectively using compulsory licensing 
under the Agreement.   
IV. LDCS' ACCESSION TO THE WTO  
20. Commitment Five of the POA calls for the streamlining of WTO accession requirements to 
ensure that the accession process is more effective and less onerous and tailored to the LDCs' specific 
economic conditions.  It further calls on WTO Memb ers to exercise restraint in seeking concessions 
from acceding LDCs in th e accession negotiations.  At the Doha  Ministerial Conference in 2001, 
WTO Ministers stressed the importance they attached to concluding accession negotiations, in 
particular those of LDCs, "as quickly as possible"  and agreed to work to "facilitate and accelerate 
accession negotiations with acceding LDCs".  Minister s at the Hong Kong Conference reiterated the 
importance of facilitating and accelerating the accession negotiations of LDCs.   
21. Since 2001, good progress has been made to f acilitate and accelerate the accession of LDCs.  
Pursuant to the calls made in Doha, in Dece mber 2002, WTO Members adopted the Guidelines on 
LDC Accessions, which are aimed at accelerating and facilitating the accession of LDCs to the 
Organization.45  The Guidelines have provided new impetus to LDC accessions, including the 
adoption of the accession pack ages for Cambodia and Nepal by WTO Members at the Fifth 
Ministerial Conference held in Cancún, Mexico, in September 2003.46  They became the first two 
LDCs to complete their accession under Article XII of  the WTO Agreement since its establishment in 
1995.47  The Guidelines have also activated LDC acce ssions at various stages.  A number of acceding 
LDCs that were at the initial stages – Bhutan, Cape  Verde, Lao PDR, Samoa, Sudan and Yemen, have 
advanced their accession negotiations since the adopti on of the Guidelines.  These countries, together 
                                                      
42 Document IP/C/40. This Decisi on also calls for enhanced tech nical cooperation and capacity 
building by developed country Members and by the WT O in cooperation with WIPO and other international 
organizations.  
43 Document IP/C/25. 
44 The Decision on the "Implementation of Paragraph 6 of the Doha Declaration on the TRIPS 
Agreement and Public Health", contained in docum ent WT/L/540 and Corr.1, includes three waivers to 
paragraphs (f) and (h) of Article 31  of the TRIPS Agreement with respect  to pharmaceutical products.  It 
provides additional flexibility for parties to regional trad e agreements, at least half of the Members of which are 
LDCs.  Pursuant to paragraph 11 of this Decision, the Council for TRIPS prepared an amendment of the TRIPS 
Agreement replacing the waiver prov isions.  In December 2005, the Ge neral Council adopted the Protocol 
amending the TRIPS Agreement, as contained in document WT/L/641, and submitted it to WTO Members for 
acceptance by 1 December 2007.  The Pr otocol will enter into force upon  acceptance by two-thirds of the 
Members.  In the meantime, the waiver provisions  of the August 2003 Decision remain in force. 
45 Document WT/L/508. 
46 The Director-General also submitted a status report to the Fifth Ministerial Conference on the 
"Implementation of the Commitment by Ministers to Fac ilitate and Accelerate the Acces sion of the LDCs".  The 
report is contained in document WT/MIN(03)/2.  
47 Article XII of the Agreement estab lishing the WTO deals with accession.  WT/COMTD/LDC/13 
Page 12  
 
  with Afghanistan, Ethiopia, Sao Tomé and Princi pe and Vanuatu, are the ten LDCs in accession, 
which represent one-third of the total number of acceding governments to the WTO.
48 
22. The Sub-Committee on LDCs played an instrume ntal role in developing the Guidelines on 
LDC Accessions, which were adopted by the Gene ral Council in December 2002.  Echoing the POA, 
the Guidelines:  (i) urge Members to exercise restraint in seeking concessions and commitments from 
acceding LDCs;  (ii) make the S&D provisions, as set out  in the WTO legal instruments, applicable to 
all acceding LDCs;  (iii) streamline the accession pro cess;  and (iv) mandate the provision of targeted 
and coordinated technical assistance on a priority basis.  The Sub-Committee on LDCs, through the Work Programme for LDCs, regularly monitors the accession of LDCs and the implementation of the Guidelines, as well as serves as a forum where acceding LDCs and Members exchange views and 
share experiences.   
23. Since the adoption of the Guidelines, LDCs seem  to have benefited from an increased level of 
flexibility in their accession ne gotiations, as evidenced by the accession processes of Cambodia and 
Nepal.  In the area of market access, acceding LDCs have generally made fewer concessions and commitments than other acceding governments.  For in stance, with regard to the level of bindings, 
Cambodia bound its tariffs at average rates of 28. 1 per cent and 17.7 per cent for agricultural and 
non-agricultural products, respectively.  In the case of  Nepal, those average rates are 41.4 per cent and 
23.7 per cent.  These final bound rates are higher than other recently acceded Members.
49  In the area 
of services, Cambodia and Nepal undertook commitments  in fewer services sub-sectors than other 
recently acceded governments .50 
24. In the area of WTO rules, WTO Members have  shown greater flexibility in approaching 
accession negotiations with LDCs.  For instance, in th e areas of customs valuation, technical barriers 
to trade (TBT), sanitary and phytosanitary (SPS)  measures and TRIPS, Cambodia and Nepal were 
granted transition periods of up to five years.  Th e flexibility shown by Members is being matched by 
efforts on the side of the acceding LDCs through th e submission of detailed action plans to put in 
place WTO-consistent legislation and enforcement m echanisms.  Members have also agreed not to 
make LDCs' accession contingent on participation in  sectoral market access initiatives.  Commitments 
to accede to Plurilateral Trade Agreements, i.e. the Agreement on Government Procurement and the 
Agreement on Trade in Civil Aircraft, have not b een taken as a precondition for WTO accession.  By 
contrast, the majority of other recently acceded governments have agreed as part of their accession 
package to participate in such sectoral initiatives and Plurilateral Agreements.   
25. Efforts have been made to facilitate and streamline the accession process for LDCs.  For 
example, the number of formal Working Party me etings - the forum where the accession negotiations 
are conducted – has been reduced as much as po ssible for acceding LDCs, compared to other 
accessions.  For non-resident delegations, formal or informal Working Party meetings are often 
scheduled on the margins of Geneva Week, a biannua l event organized by the WTO Secretariat which 
brings all non-resident delegati ons to Geneva (see Section V).51  This pragmatic approach is aimed at 
placing greater emphasis on focused informal cons ultations between interested Members and the 
acceding LDC with the possibility of the Secretariat acting as a proxy in the negotiations.  This has 
                                                      
48 Afghanistan, Ethiopia and Sao Tomé and Principe  are at the initial stage of the accession process. 
49 The simple average of other r ecently acceded Members' agricultural final bound rates varies from a 
low of 9.4 per cent (Albania and Croatia) to a high of 35.5 per cent (Bulgaria).  For non-agricultural products, it 
varies from 4.8 per cent (Chinese Taipei) to 23.6 per cent (Bulgaria).  Table 3 of the Secretariat's "Technical 
Note on the Accession Process", contained in document WT/ACC/10/Rev.3, provides information on the recent accessions since 1995.  
50 Table 5 of the Secretariat's "Technical No te on the Accession Process", contained in 
document  WT/ACC/10/Rev.3, provides inform ation on the recent accessions since 1995. 
51 Currently, out of ten acceding LDCs, Lao PDR, Sa moa, Sao Tomé and Principe and Vanuatu have 
non-resident missions.    WT/COMTD/LDC/13 
 Page 13 
 
 
  been done with a view to accelerating the accessi on process and lessening the financial and human 
resource burdens on the acceding LDCs.   
26. The Guidelines on LDCs' Accession emphasize the importance of technical assistance and 
capacity building in all aspects of the accession process.   The complex nature of rights and obligations 
in the WTO, particularly in the area of legislati on and enforcement, as well as the need to create 
capacity in acceding LDCs to meet the requirement s of accession, remain the main challenges for 
acceding LDCs.  Ministers in Doha instructed the Se cretariat to reflect the priority of LDCs' accession 
in the delivery of technical assistance by th e WTO, as set out in the WTO Annual Technical 
Assistance Plans .52  Moreover, bilateral donors have been pa rticularly supportive in their assistance to 
LDCs at all stages of the accession process.  Furthermore, a number of acceding LDCs are 
beneficiaries of the IF (e.g. Ethiopia, Lao PDR, Sao Tomé and Principe, Yemen, as well as Cambodia 
and Nepal which acceded earlier).  The synergies betw een the accession process and the IF have been 
stressed, encouraging the acceding LDCs to use th e IF to seek assistance for their accession to the 
WTO.  Finally, the Director-General has accorded hi s personal attention to the issue of the accession 
of LDCs.  He continues to offer his good offi ces to assist accedi ng LDCs through regular 
consultations with LDC representatives in Geneva  and in capitals as well as through a close 
monitoring of developments in the Accession Working Parties.    
V. INTEGRATION OF LDCS INTO THE MULTILATERAL TRADING SYSTEM  
27. Commitment Five of the POA calls for actions  to assist LDCs in developing human and 
institutional capacities for effective negotiations and informed participation in the multilateral trading 
system in order that LDCs reap maximum benefits from it.  At the Doha Conference, WTO Ministers 
recognized the particular vulnerability of the LDCs  and reiterated their commitment to address their 
marginalization in international trade and improve  LDCs effective participation in the multilateral 
trading system.  More recently, Ministers at the Hong Kong Ministerial Conference reaffirmed their 
commitment to effectively and meaningfully integr ate LDCs into the multilateral trading system.   
28. The WTO Secretariat, under the guidance of the Director-General, has accorded special 
attention to the needs and concerns of LDCs' partic ipation in the multilateral trading system.  This is 
reflected in, inter alia , (i) day-to-day support provided to the LDCs' Consultative Group;  (ii) priority 
accorded in the delivery of WTO technical assist ance and training;  and (iii) the partnership 
arrangements with other institutions to meet supply-side challenges of LDCs.53  The WTO LDCs' 
Consultative Group was set up in January 2001 by LDC Members and Observers with the aim to 
ensure their participation in the rules-based mu ltilateral trading system on the basis of their own 
priorities.  While it is an informal group, it pr ovides a platform in which LDC delegations meet 
regularly, share information, brainstorm, articulat e their positions and as necessary, act together to 
pursue their common interests, by pulling together their often limited resources.54  Today, the Group 
has become the key base for LDCs' participation in the DDA negotiations, ad vancing proposals in 
                                                      
52 Document WT/COMTD/LDC/W/32 describes techni cal assistance provided to LDCs in accession. 
53 The Secretariat prepared a note on the "Enhanci ng the Participation of LDCs in the Multilateral 
Trading System", contained in document WT/COMTD/LDC/W/30. 
54 At the highest level, LDCs meet at the level of ministers to prepare for WT O Ministerial Conferences 
with a view to adopting a common position on LDC agenda .  The first meeting was held in Zanzibar, Tanzania 
in July 2001, followed by meetings in Dhaka, Bangladesh in June 2003, in Dakar, Senegal in May 2004, and in Livingston, Zambia in June 2005.  The ministerial declarations adopted by these meetings are contained in 
documents WT/L/409, L/521, L/566 and L/614, respectively.    WT/COMTD/LDC/13 
Page 14  
 
  different areas (see Section III).  The WTO Secretar iat supports the active enga gement of LDCs in the 
negotiations through the provision of day-to-day logistical support to the Group.
55 
WTO trade-related technical assistance and capacity building  
 
29. LDCs are accorded priority in the delivery of  WTO training and technical assistance, aimed at 
"adjusting to WTO rules and disciplines, implem enting obligations and exercising the rights of 
membership, including drawing on the benefits of an  open, rules-based multilateral trading system".  
Not only is this confirmed by the numbers, i.e. th e frequency with which LD Cs have been associated 
with trade-related technical assistance (TRTA) ac tivities as set out in the WTO Annual Technical 
Assistance and Training Plans, but this is also done through the design of specific products of WTO's 
assistance.56  In delivering national TRTA activities, the Secretariat has allocated three activities to 
each LDC per year, compared to two for other deve loping countries.  These national activities are in 
addition to the regional activities where LDCs are also  invited to attend.  Between 2001 and 2005, the 
number of TRTA delivered by the WTO Secretariat has reached 450 to 500 activities per year.  On average, LDCs were associated with 40 to 45 pe r cent of those activities.  Furthermore, whenever 
possible, priority is also given to LDCs for Ge neva-based training courses and for specialized training 
on a particular subject matter.
57  
30. Assistance designed to address LDCs' specific n eeds and concerns in the WTO TA delivery 
includes inter alia,  "Geneva Week" for non-resident missions , the Reference Centres, trainee and 
internship programmes, and support provided during Trade Policy Reviews.  In addition, financial 
support is provided to LDCs to participate in WT O Ministerial Conferences.  Not all WTO Members 
and Observers are currently represented in Geneva , and out of the 28 non-residents, 14 are LDCs.58  In 
order to ensure that non-residents are kept abr east of developments in the WTO, the Secretariat 
organizes "Geneva Week" twice a year.  The main  objectives of the Geneva Week are to brief 
participants on the state of play of work in the WT O and provide an opportunity for participants to be 
involved in the work of WTO bodies during their stay.  In addition to the organization of Geneva 
Week, the Secretariat regularly sends briefing notes and news summaries to the non-residents.  The 
Reference Centre programme is another way throug h which the Secretariat disseminates trade-related 
information and documents to Members through an electronic link to the WTO.  Usually located in 
the trade ministries and in the headquarters of regional and sub-regional organisations, there are 
currently 150 Reference Centres installed in 106 countries, of which 51 are located in 46 LDCs. 
31. The Secretariat provides a number of trainee a nd internship programmes with the objective of 
building human capacities of developing and least-d eveloped countries.  This includes the "mission 
internship programme" which enables young pr ofessionals from selected developing countries 
including LDCs, to enhance their knowledge of the multilateral trading system, strengthen their 
understanding of the WTO, and support their Perman ent Representations to the WTO in participating 
more actively in the daily activities at the WTO.  From the total of 23 persons who have so far 
benefited from this programme since its inception in 2003, 11 come from LDCs.  The WTO also 
funds interns to assist the rotating coordinator of  regional groupings, including of the WTO LDCs' 
                                                      
55 The WTO services and provides interpretation for meetings of the LDC Group.  In addition, under 
the WTO Internship Programme, voluntary contributions are used to provide interns to work in the missions of 
the rotating co-ordinators. 
56 The latest Annual Technical Assistance Plan 2006 is contained in document WT/COMTD/W/142. 
57 In addition to two 3-week Introduction Courses for LDCs, four Trade Po licy Courses of twelve 
weeks each are annually organised at the WTO headquarters.  In addition,  the Secretariat organises Regional 
Trade Policy courses with the same duration in five different regions - the Caribbean, English-speaking Africa, 
French-speaking Africa, Asia and the Paci fic, and Latin America, to which LDCs are also invited to participate.   
58 Non-resident LDCs include:  Central African Republic, Equatorial Guinea, Gambia, Guinea-Bissau, 
Lao PDR, Malawi, Maldives, Niger, Samoa, Sao Tomé and Principe, Sierra Leone, Solomon Islands, Togo and 
Vanuatu.  WT/COMTD/LDC/13 
 Page 15 
 
 
  Consultative Group.  Another example is the Ne therlands Trainee Programme.  It accommodates up 
to 20 trainees from LDCs each year for a period of ten months and provides them with an opportunity 
to directly participate in the work of the WTO in Geneva and to facilitate the implementation of 
Members' commitments in the WTO.   
32. Trade Policy Reviews (TPRs) have increasingly performed a technical assistance function for 
LDC Members of the WTO.  The objectives of  the TPR Mechanism include:  increasing the 
transparency and understanding of countries' trade policies and practices through regular monitoring;  
improving the quality of public and intergovernme ntal debate on the issues;  and enabling a 
multilateral assessment of the effects of policies on the world trading system.  In recognition of the 
TPR's role of enabling LDCs to increase thei r understanding of the WTO Agreements, efforts are 
made to complete their reviews on a priority basis.59  The TPR Body has continued to review a steady 
number of least-developed Members, with 25 of th e 32 LDC Members reviewed by the end of 2006.60  
The preparation of reviews of LDCs is responding mo re systematically to technical assistance needs.  
The review process for an LDC includes a seminar fo r its officials on the WTO, in particular on the 
trade policy review exercise and the role of trade in economic policy;  such seminars have been held 
for all LDCs reviewed between 2001 and 2006.  Th e TPR also contributes to the identification and 
prioritization of capacity building needs, as the S ecretariat, in consultation with the LDC Member 
concerned, includes a section on technical assistance in the TPR report, with a view to feeding this 
into the planning of WTO TRTA activities, as well as the IF process.   
WTO's co-operation with other partner institutions  
 33. The WTO is a forum for rule-making, enforcement and market opening through negotiations.  
Given its mandate, the WTO cannot, on its own, meet the full complexity of the trade and 
development challenges faced by LDCs in their inte gration into the multilateral trading system.  One 
such challenge is associated with their supply-side constraints.
61  In recognition of the need for a 
broad based assistance that LDCs require in addres sing their trade and development challenges, the 
WTO increased collaboration with other multilateral institutions equipped with  appropriate technical 
expertise and financial resources.  Of the WTO' s partnership arrangements, the joint programmes 
specifically geared towards LDCs ' concerns include:  the Integrated Framework (see Section VI 
below), the Joint Integrated Tec hnical Assistance Programme (JITAP) for selected African Countries,  
the Standards and Trade Development Facility (STDF), and Aid for Trade.62 
34. JITAP mobilizes the expertise of ITC, UNCT AD and the WTO to help African countries, 
many of which are LDCs, benefit from the multilateral trading system.  JITAP aims at building 
capacity and strengthening the nati onal knowledge base of the multilateral trading system with a view 
to contributing to:  (i) more effective participa tion in the trade negotiations, implementing the WTO 
Agreements, and formulating related trade policies;   and (ii) improved supply capacity and market 
knowledge of exporting enterprises, to derive benefits from business opportunities resulting from 
better market access.  In phase I of JITAP, four of the eight beneficiaries were LDCs (Benin, 
Burkina Faso, Tanzania and Uganda ).  In Phase II, JITAP was extended to eight additional African 
countries, six of which are LDCs – Malawi, Mali,  Mauritania, Mozambique , Senegal and Zambia.  
                                                      
59 Focus has been given to the TPRs of LDCs in response to the recommendations of the High Level 
Meeting on LDCs' Trade Development in October 1997 and the appraisal of the TPRM in 1999.  
60 The LDCs reviewed since the establishment of th e TPRM are:  Angola,  Bangladesh (three times), 
Benin (twice), Burkina Faso (twice), Burundi, Djib outi, Gambia, Guinea (twice), Haiti, Lesotho (twice), 
Madagascar, Malawi, Maldives, Mali (twice), Mauritania, Mozambique, Niger, Rwanda, Senegal (twice), Sierra Leone, the Solomon Islands, Tanzania (twice), Togo (twice), Uganda  (three times), and Zambia (twice). 
61 The Secretariat prepared for the Sub-Committ ee on LDCs a note on "Assistance to Address 
Supply-Side Constraints" contained in document WT/COMTD/LDC/W/33 and Add.1. 
62 Some examples of broader co-operation arrangements with other multilateral institutions are 
contained in document WT/COMTD/LDC/W/33. WT/COMTD/LDC/13 
Page 16  
 
  The WTO continues to collaborate with its partne r agencies ITC and UNCTAD to ensure greater 
synergies between the IF and JITAP.   
35. In the areas of food safety, plant and animal protection, the STDF has responded to one of the 
pressing concerns expressed in the POA, that is LDCs ' lack of capacity in the area of standard-setting 
and quality control.  The STDF was formally estab lished in August 2002 as a partnership and a trust 
fund, following a joint communiqué issued by the Heads of FAO, OIE, World Bank, WHO and WTO 
at the Doha Ministerial Conference in 2001.  The STDF seeks to add value to short term bilateral 
efforts by supporting projects addressing issues of SPS capacity building in developing countries, in 
particular in LDCs and other low income economies or on a regional basis, with a target of at least 
40 per cent of its resources devoted to projects be nefiting these countries.  Since its inception, the 
STDF has funded nine projects and 17 grants to support the development of projects in LDCs.
63  One 
important feature of the STDF is its close link with  the IF, in particular its funding of a number of 
SPS-related needs identified in the Diagnostic Trade Integration Studies (DTIS) (see Section VI).   
36. Finally, the Aid for Trade initiative is the latest  addition to the devel opment dimension of the 
DDA, as adopted by WTO Members at the Hong K ong Ministerial Conference in December 2005.  
Aid for Trade is aimed at helping developing countri es, particularly LDCs, to "build the supply-side 
capacity and trade-related infrastructure that they need to assist them to implement and benefit from 
WTO Agreements and more broadly to expand their trade."64  WTO Members acknowledge the 
importance of Aid For Trade as a tool to help de veloping countries integrate more fully into the 
multilateral trading system and to provide them  with increased trade opportunities as a way to 
enhance growth prospects and reduce poverty.  Sin ce Hong Kong, a task force had been created to 
provide recommendations on how to operationalize Aid fo r Trade.  In addition,  the Director-General 
was requested to consult with Members, as well as with the IMF, the World Bank and relevant 
international and regional instituti ons, with a view to securing additional financial resources for Aid 
for Trade.  In July 2006, the Task Force concluded its work on the recommendations.65  Further work 
is envisaged in the coming months to operationalize the recommendations.  
VI. THE INTEGRATED FRAMEWORK  
37. The POA calls for an effective and expeditious  implementation of the IF for trade-related 
assistance to LDCs.  In this regard, it calls on LDCs to strengthen their efforts to integrate trade into 
national development policies and encourages deve lopment partners to make new and additional 
contributions to the IF Trust Fund.  At the Doha  Conference in 2001, Ministers reiterated the high 
priority which they attach to the effective implemen tation of the IF and their endorsement of the IF as 
a viable instrument for LDCs' trade development.  They highlighted the importance of contributing to 
reducing LDCs' supply-side constraint s and recognized the urgent need to make the IF more effective 
and timely in addressing the trade-related developm ent needs of LDCs.  At Hong Kong, Ministers 
welcomed the establishment of a Task Force to draft recommendations to enhance the IF.66 
                                                      
63  In total, over two-thirds of the projects approved to date have been in LDCs or other low income 
countries - exceeding the 40 per cent target.  A r ecently completed external evaluation of the STDF 
recommended the establishment of a medium term strategic plan for the STDF based on annual donor funding 
of approximately US$ 5 million per year;  the STDF Policy Committee will consider such a plan in early 2007. 
64 Paragraph 57 of the Hong Kong Ministerial Declaration. 
65 Document WT/AFT/1. 
66 Ministers in Hong Kong also welcomed the three elements which would constitute an enhanced IF:  
(i)  provide increased, predictable, and additional fundin g on a multi-year basis;  (ii)  strengthen the IF in-
country, including through mainstreaming trade into national development plans and poverty reduction 
strategies;  more effective follow-up to diagnostic trade integration studies and implementation of action 
matrices; and achieving greater and more effective coordination amongst donors and IF stakeholders, including 
beneficiaries;  (iii)  improve the IF decision-making and management structure to ensure an effective and timely  WT/COMTD/LDC/13 
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  38. First established in 1997, the IF is an internati onal partnership through which the six IF core 
Agencies - the IMF, the International Trade Centre, UNCTAD, UNDP, the World Bank, and the 
WTO - combine their efforts with those of LDCs and donors to respond to the trade and development needs of LDCs.  The two objectives of the IF are to mainstream trade into LDCs' national 
development strategies such as Poverty Reduction St rategy Papers (PRSPs) and to assist in the 
coordinated delivery of trade-related assistance to LDCs.
67  An important aspect of the IF is the 
preparation of a DTIS which assesses the competiti veness of the country's economy and identifies 
impediments to effective integration into the mu ltilateral trading system and global economy.  Based 
on the findings of the DTIS, an Action Matrix is developed with a view to feeding trade-related 
priorities into their PRSPs and donors' financi ng fora, such as the Consultative Groups and Round 
Tables. 
Achievements to date 
 
39. The IF with its principles of country owners hip and partnership has made an important 
contribution to achieving the goals of the POA.  Since its inception in 1997 and restructuring in 2000 , 
the IF has witnessed a significant increase in the number of LDCs which are currently in different 
stages of the IF process.  Moreover, many of them have now firmly entered a crucial phase of implementation.  By August 2006, 42 LDCs were at various stages of the IF process:  23 LDCs had 
validated their DTIS or are finalising their DTIS, another eight are preparing their DTIS, and ten are 
at the pre-DTIS stage.
68   
40. Another notable achievement is the establishmen t of the IF Trust Fund in 2001, providing the 
IF with a stable and predictable funding basis for implementation.  To date, 16 bilateral and 
multilateral donors have contributed to $35.5 million,  as of 31 March 2006.  The funds are used for 
the preparations of the DTIS, supporting nationa l implementation capacities (including the focal 
points), as well as funding limited priority projects identified in the DTIS.69  Further scaling up of the 
Trust Fund is envisaged under the Enhanced IF, as described in the following  section.  Whilst the bulk 
of funding for assistance com es from LDCs' traditional channels  through the PRSP and/or 
Consultative Group/Round Table process, the IF Trust Fund does, through its Window II, provide 
limited funding to support some activ ities identified in the Action Matrix.70  As of 31 March 2006, 
14 IF beneficiaries have accessed this fund, benefiting different activities.  
                                                                                                                                                                     
delivery of the increased financial resources and prog rammes. (Paragraph 50 of the Hong Kong Ministerial 
Declaration). 
67 For further details, please refer to the IF website: www.integratedframework.org 
68 The group of 23 countries which have validated thei r DTIS or are at the final stages of finalization: 
Benin, Burundi, Cambodia, Chad, Djibouti, Ethiopia, Guinea, Lao PDR, Lesotho, Madagascar, 
Malawi, Maldives, Mali, Mauritania, Mozambique, Nepal, Rwanda, Sao Tomé and Principe, Senegal, Tanzania, Uganda, Yemen, and Zambia.  Additional countries:  
- preparation of the DTIS on-going in eight countries:  Angola, Burkina Faso, Central African 
Republic, Niger, Sierra Leone, Sudan,  The Gambia, Vanuatu; 
- the IFWG has mandated the World Bank or UNDP to undertake a Technical Review (the 
preliminary step in the IF process) in ten co untries:  Afghanistan, Comoros, Democratic 
Republic of Congo, Equatorial Guinea, Guinée Bi ssau, Haiti, Liberia, Samoa, Solomon Islands, 
Togo; 
- Country having requested to join the IF:  East Timor;   
- Eritrea has taken a pause from the IF. 
69 Based on pledges.  At this stage, the contributing donors to the Trust Fund are:  Belgium, Canada, 
Denmark, Finland, France, Ireland,  Netherlands, Norway, Sweden, Switzer land, UK, US, UNDP and the World 
Bank. 
70 The terms of references for Window II of the IF Trust Fund are contained in document 
WT/IFSC/4/Rev.1. WT/COMTD/LDC/13 
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  41. Other achievements of the IF are:  first, it has contributed to an increase in coordination and 
dialogue among government institutions in LD Cs.  The national steering committee, an 
inter-ministerial body established as part of the IF process, has played a key role in fostering trade 
policy dialogue as well as in coordinating different  trade-related assistance programmes, such as 
creating synergies between the IF, JITAP and STDF.   Second, in the donor community, the IF has 
begun to take away the disconnect between the tr ade and development communities, including in the 
field where the IF facilitator has played an importa nt role in coordinating donors' efforts on their 
trade-related activities.  Finally, the IF has helped to  raise the trade profile in the LDCs and the donor 
community as well as in the IF Agencies, contributing to an increased recognition of the role of trade 
in poverty reduction.  Each DTIS contains an analys is on trade and poverty, which has helped to make 
the case for the need for more emphasis on growth sect ors in national development strategies.  This 
corresponds to the main theme of Commitment Five of the POA, which recognizes that LDCs need to 
rely on trade to generate the resources of  financing growth a nd development.   
Enhancement of the IF 
 42. Recent evaluations of the IF have acknowledged the fundamental soundness of the IF 
approach, but called for further fine-tuning to move to a robust implementation stage.
71  Following the 
recommendations by the Development Committee of th e World Bank and the IMF at their meeting in 
September 2005, the Task Force on an enhanced IF was created in the WTO to provide recommendations to enhance the IF.  The work of th e Task Force was concluded with the adoption of 
its recommendations in July 2006 by the IF management bodies:  the IF Working Group and the IF 
Steering Committee, which group together the representatives of the IF stakeholders.
72  In broad 
terms, the Task Force recommended: 
(a) a significant strengthening of capacity in each LDC recipient country, funded by the 
IF Trust Fund, to manage the IF process, including mainstreaming of trade, preparation of the DTIS and projects, and ot her activities within the scope of the IF;  
(b) the creation of a new independent Executive Secretariat, administratively housed in 
the WTO Secretariat, which would take ope rational decisions, manage the IF Trust 
Fund and report to a Board consisting of donors, LDCs and the IF Agencies;  and  
(c) a funding target of US$400 million over an initial five-year period through a 
multilateral trust fund an d bilateral cooperation.
73 
43. To operationalize the recommendations of the T ask Force, an IF Transition Team was set up 
in July 2006, comprising representatives of LDCs, donors and IF Agencies.  Work in the Transition 
Team is currently on-going with a view to ensuring th at the enhanced IF enters into force no later than 
31 December 2006, as stipulated by Ministers at the Hong Kong Ministerial Conference.  
VII. CONCLUDING REMARKS AND WAY FORWARD 
44. The Brussels Programme of Action as well as the Doha Ministerial Declaration reaffirm that 
international trade can play a major role in the promotion of economic development and the 
alleviation of poverty.  LDCs' share in world me rchandise trade increased from 0.4 per cent in the 
                                                      
71 WT/IFSC/6/Rev.2 and Add.1. 
72 For details see document WT/IFSC/W/15 and Corr.1. 
73 Of the proposed $400 million, $77 million is dedicated to core function support, including support to 
the Focal Point; $320 million for Action Matrix implementation support (i.e. $8 million per each LDC);  and 
$14 million for the newly established Executive Secretariat.      WT/COMTD/LDC/13 
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  beginning of the decade to 0.6 per cent in 200 4, according to the latest available data.74  T h i s  
represents a minor but positive step in reserving the trend of the marginalization of LDCs in world 
trade.  Most of the LDCs, however, remain margin al participants in the multilateral trading system 
and global economy.  Lack of product diversificati on, reliance on a limited number of markets, as 
well as low technology content, continue to characterize the export profile of LDCs.   
45. The DDA negotiations launched in 2001 offer a unique opportunity for LDCs to trade their 
way out of poverty.  Shortly after Doha, WTO Members put in place a Work Programme for LDCs, 
the first of its kind, to provide a platform for thei r continuous focus on issues of interest to LDCs in 
the regular work of the WTO.  The Work Programme  incorporates all key trade-related elements of 
the POA.  On the negotiating front, LDCs have been active participants, submitting a number of 
proposals in their different areas of interest.  It is encouraging to note that at the most recent 
Ministerial Conference in Hong Kong, LDCs have witnessed some important decisions such as the 
one on DFQF market access, the agreement on a da te for the elimination of agricultural export 
subsidies and the frontloaded reduction of trade distorting domestic support in the cotton sector.  
While not strictly part of the negotiations, additi onal decisions have been taken to provide greater 
flexibility to LDCs in implementing existing WT O Agreements, such as the TRIPS Agreement.  
Moreover, the WTO membership has welcomed the accession of the first two LDCs to the 
organization since its establishment, bringing the to tal number of LDC WTO Members to 32.  Finally, 
LDCs have witnessed a substantial increase in different forms of assistance, both from the WTO 
Secretariat and through partnership progr ammes with other organizations.   
46. Despite the progress made in advancing the interests of LDCs in the multilateral trading 
system in the last few years, their trade and deve lopment challenges remain and would require further 
efforts from LDCs themselves as well as from their part ners.  On the part of the WTO Secretariat, the 
Director-General is mindful of their special challe nges and is meeting regular ly with the LDC Goup to 
exchange views and to explore ways to help them advance their interests in the WTO.  Accordingly, 
there are three areas where the WTO could make furt her contributions towards achieving the goals of 
the POA.  First, a successful conclusion of the DDA negotiations is an essential and necessary 
condition for consolidating the progress made so far in  the negotiations, including on issues of interest 
to LDCs.  As Chairman of the Trade Negotiations Committee, the Director-General will continue to 
play a catalyst role in concluding the negotiations.  Second, the diversity of the WTO membership remains of fundamental importance to the core princi ple of non-discrimination in the trading system.  
Faithful to the Guidelines on LDC Accession, the Direct or-General would continue to accord priority 
attention to the on-going LDC accessions, throug h his good offices and consultations with their 
representatives and ensuring that targeted technical assi stance is delivered, with a view to their timely 
conclusion.  Third, one of the major challenges fo r LDCs in world trade remains that of addressing 
supply-side constraints to enable them to ta ke advantage of improvements in market access 
opportunities.  This requires multi-stakeholder interv entions and targeted assi stance to support LDCs' 
efforts to integrate trade into their national devel opment strategies, such as through the IF and the Aid 
for Trade initiative.  The months ahead will be crit ical to put in place the enhanced IF as well as to 
make further progress on the Aid for Trade initiativ e.  This will help in making trade work for 
development.  
__________ 
                                                     
 
74 World Trade Report 2006.