RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/COMTD/W/163 
28 November 2007 
 
 (07-5240) 
Committee on Trade and Development  
  
 
DRAFT 
 
REPORT (2007) OF THE COMMITTEE ON TRADE AND DEVELOPMENT 
  
 
I. INTRODUCTION 
1. This report covers the work of the Committe e on Trade and Development (CTD) since the 
last report issued in 2006
1, in particular the work of the CTD in Regular Session and Dedicated 
Session on Small Economies, the CTD's work on Aid for Trade, and the work of the Sub-Committee 
on Least-Developed Countries.2  
II. WORK OF THE COMMITTEE ON TRADE AND DEVELOPMENT IN REGULAR 
SESSION 
2. The CTD in Regular Session held six formal sessions on 6 March, 25 May, 10 July, 
8 October, 14 November and 4 December 2007.  The minutes of these meetings are contained in 
documents WT/COMTD/M/62 through WT/COMTD/M/67 respectively.3  At the 62nd Session held on 
6 March 2007, the Chairmanship was handed ov er from Mr. Faizel Ismail (South Africa) to 
Ambassador Shree B.C. Servansing (Mauritius). 
3. The CTD continues to have outstanding requests for observer status from the League of Arab 
States, the Organization of the Petroleum Exporting Countries (OPEC), the Gulf Organization for Industrial Consulting (GOIC), the Organisation in ternationale de la francophonie, the Common Fund 
for Commodities (CFC), the Organization of Arab  Petroleum Exporting Countries (OAPEC) and the 
Groupe de la Banque Afri caine de Développement. 
4. Members agreed to continue to invite a num ber of intergovernmental organizations on an 
ad hoc meeting-by-meeting basis.  These include  the Arab Maghreb Union (AMU), the Common 
Fund for Commodities (CFC)
4, the Economic Community of West African States (ECOWAS), the 
Economic Cooperation Organization (ECO), the Inte r-Arab Investment Guarantee Corporation, the 
Islamic Development Bank (IDB), the African Union (AU), the Organization of the Islamic 
Conference (OIC), the South Centre, the Pacific Islands Forum, the United Nations Environment 
Programme (UNEP), the West African Economic and Monetary Union (WAEMU), and the World 
Intellectual Property Organization (WIPO).  A full  list of intergovernmental organizations with 
observer status in the Committee is cont ained in document WT/COMTD/W/22/Rev.6. 
                                                      
1 The 2006 annual report of the Committee is contained in document WT/COMTD/58 of 
1 December 2006. 
2 The Special Session of the CTD, d ealing with the issue of special and differential treatment, has its 
own reporting requirements. 
3 WT/COMTD/M/66 and WT/COMTD/M/67 to be issued.   
4 At the 49th Session, the CFC was granted ad hoc observer status to follow, on a meeting-by-meeting 
basis, the item relating to the declining terms of trade for primary commodities, and its implication to trade and 
development of primary commodity exporting countries. WT/COMTD/W/163 
Page 2  
 
  5. The principal themes addressed by the CTD in  Regular Session during the period covered in 
this report included the following:
5   
A. Technical cooperation and training; 
B. Notifications regarding market access for developing and least-developed countries; 
C. Report of the Joint Advisory Group on the International Trade Centre 
UNCTAD/WTO; 
D. Declining terms of trade for primary comm odities, and its implication to trade and 
development of primary commodity exporting countries; 
E. Decision on Transparency for Preferential Trade Arrangements; 
F. Paragraph 51 of the Doha Declaration on identifying and debati ng developmental and 
environmental aspects of the negotiations, in  order to help achieve the objective of 
having sustainable development appropriately reflected; 
G. Hong Kong Decision on duty-free and quota-fr ee market access for least-developed 
countries; 
H. Participation of developing countri es in the multilateral trading system. 
 
A. TECHNICAL COOPERATION AND TRAINING  
6. At its 63rd Session, the Committee took note of the Annual Report on Technical Assistance 
and Training, 1 January to 31 December 2006 (WT/COMTD/W/157), and of the Technical Cooperation Audit Report for 2006 (WT/COMTD/W/158).  The Committee took note of the Semi-Annual Review of the Implementation of Activities (1 January - 30 June 2007) 
(WT/COMTD/W/161) at its 65
th Session.  The Biennial Technical Assistance and Training Plan 
2008-2009 (WT/COMTD/W/160) was adopted at the 66th Session. 
B. NOTIFICATIONS REGARDING MARKET  ACCESS FOR DEVELOPING AND LEAST -DEVELOPED 
COUNTRIES  
7. The CTD continued its consideration of the notification under the Enabling Clause by the 
European Communities (EC) of its revised Genera lized System of Preferences (GSP) scheme, in 
particular on the basis of written questions s ubmitted by Brazil, China, India and Pakistan 
(WT/COMTD/57/Add.1 to Add.4, respectively)  and the responses provided by the EC 
(WT/COMTD/57/Add.5).  Two notifications by th e United States (US) concerning its GSP scheme 
(WT/COMTD/N/1/Add.4 and Add.5) were also considered, as was a notification concerning Japan's GSP scheme (WT/COMTD/N/2/Add.14). 
8. With regard to regional trade agreements (RTAs), China made a notification concerning the 
Amendment to the First Agreement on Trade Nego tiations Among Developing Member Countries of 
the Economic and Social Commission for As ia and the Pacific (Bangkok Agreement) 
(WT/COMTD/N/22 and WT/COMTD/62).  Questions on this notification were submitted by the US (WT/COMTD/62/Add.1).  Other items on the CTD' s agenda in 2007 were the Protocol on the 
Establishment of the East African Customs Union (WT/COMTD/N/14/Add.1 and 
WT/COMTD/25/Add.1);  a biennial report to  the WTO (for the period 1 January 2004 to 
31 December 2005) by the Latin American Integration Association (LAIA) (WT/COMTD/59);  and the questions submitted by the EC (WT/COMTD/ 51/Add.2), the US (WT/COMTD/51/Add.3 and 
Add.5) and Japan (WT/COMTD/51/Add.4) on the notifications concerning the Framework 
Agreement on Comprehensive Econom ic Cooperation Between the Asso ciation of South East Asian 
Nations (ASEAN) and the People's Republic of Chin a, and the Agreement on Trade in Goods of the 
Framework Agreement on Comprehensive Economi c Cooperation between ASEAN and the People's 
                                                     
 
5 The Committee's Work Programme for 2007 (WT/COMTD/61) was adopted at the 62nd Session.  WT/COMTD/W/163 
 Page 3 
 
 
  Republic of China.6  At the 62nd Session, the CTD adopted the notification format for RTAs proposed 
by the Committee on Regional Trade Agreements (WT/COMTD/63).  
C. REPORT OF THE JOINT ADVISORY GROUP ON THE INTERNATIONAL TRADE CENTRE 
UNCTAD /WTO 
9. The Joint Advisory Group (JAG) on the Inte rnational Trade Centre UNCTAD/WTO (ITC) 
held its 40th Session from 25 to 27 April 2007.  The report on that meeting is contained in document 
ITC/AG/(XL)/214.  The Executive Director of the ITC, Ms. Patricia Francis, presented the report at the 65
th Session of the Committee.  She informed the Committee that the JAG had had before it the 
ITC’s Annual Report, the ITC Programme Document and a Draft Strategic Framework for 2008 and 2009.  The Group had encouraged the ITC to pro ceed with its reform process and expressed wide 
support for the organization's efforts to have a mo re consolidated and strategic approach to its 
programme of work.  The ITC Programme Do cument was considered a good basis for the 
development of further strategic priorities for the orga nization.  Efforts to build strategic partnerships 
with other trade-related technical assistance (TRTA)  providers were appreciated and the ITC's key 
role in implementing projects under the Enhanced  Integrated Framework and Aid for Trade was 
recognized.  On strengthening governance and acco untability, the Group had endorsed the suggestion 
to have a single trust fund for greater transparency, and had noted that the ITC would present a refined governance structure and a revised Programme Document at the next JAG meeting in 
December 2007.  The Committee took note of the re port and forwarded it to the General Council for 
adoption. 
D. 
DECLINING TERMS OF TRADE FOR PRIMARY COMMODITIES , AND ITS IMPLICATION TO TRADE 
AND DEVELOPMENT OF PRIMARY COMMODITY EXPORTING COUNTRIES  
10. At the 62nd Session, a panel discussion on commodity i ssues was held with the participation 
of the Ambassador of Côte d'Ivoire and representa tives of the ITC and the United Nations Conference 
on Trade and Development (UNCTAD).  This w as followed by presentations by the Food and 
Agriculture Organization (FAO) and UNCTAD at the 63rd Session.  It was agreed at the 64th Session 
that the Secretariat would explore the possibility of  inviting a private sector organization to a future 
meeting of the CTD.  [In this regard, a repres entative of Nestlé made a presentation at the 
67th Session.]  
E. DECISION ON TRANSPARENCY FOR PREFERENTIAL TRADE ARRANGEMENTS  
11. The 14 December 2006 General Council Decision on Transparency for Preferential Trade 
Arrangements (WT/L/672) invites the CTD to cons ider transparency fo r preferential trade 
arrangements (PTAs) under paragraph 2 of the Enabling Clause (other than RTAs), and to report back 
within six months for appropriate action by the Gene ral Council.  In reporting on this matter to the 
General Council in July 2007, the CTD Chairman sai d that his informal consultations had allowed 
important progress to be made, but that more time would be required before the CTD could come to a 
decision.  The General Council agreed that the dead line for the CTD to consider the matter and to 
report back for appropriate action be extended to December 2007.  
                                                      
6 Responses to the questions raised by the EC, the US and Japan in documents WT/COMTD/51/Add.2, 
Add.3 and Add.4, respectively, were circulated by ASEAN and China in document WT/COMTD/51/Add.6. WT/COMTD/W/163 
Page 4  
 
  12. The proponents – Brazil and India – circulated  a non-paper (JOB(07)/142) in October 2007, 
which was considered by the Committee at its 65
th Session.  The Chairman encouraged the proponents 
to reflect on the questions and comments that had been raised by Members on the non-paper, and to 
start thinking of revising and updating its content.  [It was agreed at the 67th Session that the Chairman 
would request the General Council to grant the Committee a further extension until July 2008 to 
consider the matter and report back for appropriate action.  The Chairman would also continue with 
his informal consultations.]    
F. PARAGRAPH 51 OF THE DOHA DECLARATION ON IDENTIFYING AND DEBATING 
DEVELOPMENTAL AND ENVIRONMENTAL ASPECTS OF THE NEGOTIATIONS , IN ORDER TO HELP 
ACHIEVE THE OBJECTIVE OF HAVING SUST AINABLE DEVELOPMEN T APPROPRIATELY 
REFLECTED  
13. Under the item relating to paragraph 51 of th e Doha Ministerial Declaration, the Committee 
has since its 54th Session on 5 October 2005 been undertaking a review of the developmental aspects 
of the negotiations based on a periodically updated bac kground paper prepared by the Secretariat.  In 
2007, the Committee continued its review on the basi s of a third revision of the Secretariat paper 
(WT/COMTD/W/143/Rev.3).   
G. HONG KONG DECISION ON DUTY -FREE AND QUOTA -FREE MARKET ACCESS FOR 
LEAST -DEVELOPED COUNTRIES  
14. An item relating to the Decision taken at th e Hong Kong Ministerial Conference on duty-free 
and quota-free (DFQF) market access for least-developed countries (LDCs) was a standing item on the CTD's agenda.  In the course of the year, th e Committee considered written submissions by the 
US (WT/COMTD/W/149/Add.1, Add.2 and Add.4)  and Canada (WT/COMTD/W/159).  [At its 67
th 
Session, the CTD conducted its second annual revi ew of the implementation of the Hong Kong 
Decision, as mandated in Annex F of the Hong Kong Ministerial Declaration.]   
H. PARTICIPATION OF DEVELOPING COUNTRIES  IN THE MULTILATERAL TRADING SYSTEM  
15. In order to assist the Committee with its requi rement to keep under continuous review the 
participation of developing country Members in the multilateral trading system, the Secretariat 
prepared a report (WT/COMTD/W/162) highlighting sa lient features concerning the participation of 
developing economies in the global trading system.  [T he findings of the report  were presented to the 
Committee at its 67th Session.  The Committee took note of the report.] 
III. WORK OF THE COMMITTEE ON TRADE AND DEVELOPMENT IN DEDICATED 
SESSION ON SMALL ECONOMIES 
16. Pursuant to paragraph 35 of th e Doha Ministerial Declaration7, the General Council, at its 
meeting on 1 March 2002, took note of the framewo rk and procedures for the conduct of the Work 
Programme on Small Economies.8  Paragraph 2(d) of that documen t states that "The General Council 
shall instruct the CTD to have a programme of work on small economies which will be conducted in 
dedicated sessions of the CTD".  At the Hong Kong  Ministerial Conference, Ministers reaffirmed 
their commitment to the Work Programme on Sm all Economies and urged the adoption of specific 
measures that would facilitate the fuller integr ation of small, vulnerable economies into the 
multilateral trading system, without creating a sub- category of WTO Members.  Paragraph 41 of the 
                                                      
7 WT/MIN(01)/DEC/1. 
8 WT/L/447.  WT/COMTD/W/163 
 Page 5 
 
 
  Hong Kong Ministerial Declaration instructs the CTD to continue the work in the Dedicated Session 
and to monitor progress of the small economies' proposals in the negotiating and other bodies.9 
17. [In 2007 the Dedicated Session held one formal  meeting on 3 December 2007 on the Work 
Programme on Small Economies, chaired by Ambas sador Shree B. C. Servansing (Mauritius).  The 
minutes of this meeting are contained in document WT/COMTD/SE/M/17.10] 
18. The Dedicated Session also held one informal meeting on 24 May 2007.  The meeting was 
convened to continue monitoring the progress of th e various proposals made by the proponents of 
small economies in the negotiating groups and other WTO bodies.  At that meeting, the Secretariat 
presented a compilation paper to assist the Dedicated Session with its monitoring role.  The document 
was circulated as WT/COMTD/SE/W/22.   
19. [For the 17th Dedicated Session held on 3 December , the Secretariat presented an updated 
version of the compilation paper to assist the Dedicated Session with its monitoring role.  The updated version of the Secretariat's paper was circulat ed as document WT/COMTD/SE/W/22/Rev.1.  The 
Dedicated Session took note of the paper.] 
IV. AID FOR TRADE: WORK OF THE COMMITTEE ON TRADE AND 
DEVELOPMENT  
20. The CTD held five sessions on Aid for Trade in 2007 – on 2 April, 19 June, 9 July, 
11 October and 16 November. The minutes of these meetings are contained in documents 
WT/COMTD/AFT/M/1 through WT/COMTD/AFT/M/5 respectively.
11  
21. The first session focused on the monitoring archit ecture for Aid for Trade, with a presentation 
by the Organization for Economic Cooperation and Development (OECD).  The second session 
focused on trade facilitation and standards and testi ng, with contributions from the World Bank, the 
World Customs Organization (WCO), the OECD, the FAO, the World Organization for Animal 
Health (OIE), and the WTO.  Also at the sec ond session, the Committee considered a communication 
from Egypt (WT/COMTD/AFT/W/3).  The third session concentrated on trends in trade-related infrastructure with presentations by the World Ba nk, Japan, the EC and the OECD.  The fourth 
session focused on building productive capacity and assi stance for adjustment, trade diversification 
and competitiveness, with presentations by the Un ited States Agency for International Development 
(USAID), the United Nations Industrial Deve lopment Organization (UNIDO), the ITC and the 
International Monetary Fund (IMF).  Finally, at the fifth session, the CTD discussed the results of the 
year's monitoring activities – in particular the joint WTO/OECD Report Aid for Trade at a Glance 
2007 presented by the OECD – as well as the final Reports and Recommendations of the three 
Regional Reviews, presented by the Inter-A merican Development Bank (IADB), the Asian 
Development Bank (ADB), the African Developm ent Bank (AfDB) and the Economic Commission 
for Africa (ECA). The CTD's deliberations on Aid for Trade fed into the General Council debate on 
Aid for Trade held on 21 November 2007. 
                                                     
 
9 WT/MIN(05)/DEC. 
10 To be issued. 
11 WT/COMTD/AFT/M/4 and WT/COMTD/AFT/M/5 to be issued. WT/COMTD/W/163 
Page 6  
 
  V. WORK OF THE SUB-COMMITTEE ON LEAST-DEVELOPED COUNTRIES 
22. During the period under review, the Sub-Committee on Least-Developed Countries (hereafter 
the Sub-Committee) held three formal meetings on 22 March, 28 June and 18 October 2007.  The 
minutes of the meetings are contained in documents WT/COMTD/LDC/M/46 through WT/COMTD/LDC/M/48
12 respectively. All the meetings were chaired by Ambassador Jean Feyder 
(Luxembourg).  
23. The work of the Sub-Committee has mainly focused on the impl ementation of the WTO Work 
Programme for the LDCs adopted by Members on 12 February 2002.13  The subjects considered 
during the reporting period were:  (i) market access for LDCs;  (ii) trade-related technical assistance 
and capacity-building initiatives for LDCs;  (iii) assi stance to LDCs in the diversification of their 
production and export base;  and (iv) accession of LDCs. 
(i) Market Access for LDCs 
24. The item on market access for LDCs was c onsidered at all the meetings of the 
Sub-Committee.  At the 46th Session of the Sub-Committee, the Se cretariat introduced its note entitled 
"Market Access Issues for L east-Developed Countries in the Area of  Trade in Services", contained in 
document J0B(07)/32.  The Secretariat provided add itional information relevant for trade in services 
in LDCs through a revision of this note (JOB( 07)/32/Rev.1) which was considered at the 47th Session 
of the Sub-Committee.  Building on the information provided in this revision, the Secretariat further 
prepared a note (JOB(07)/148) presenting informa tion on services sectors of WTO LDC Members in 
the form of "trade information sheets".  The sheet s – one for each LDC Member – contain information 
on trade flows and on service sector reforms in the LDCs.  Both these notes were considered at the 
48th Session of the Sub-Committee.  Members have agreed  to continue their consideration at the next 
meeting of the Sub-Committee. 
25. At its 47th Session, the Sub-Committee considered a notification by Japan, made under the 
Enabling Clause, concerning enhanced DFQF market access to the LDCs 
(WT/COMTD/N/2/Add.14).14  As of 1 April 2007, the Government of Japan has been providing 
duty-free and quota-free market access to LDCs for 98 per cent of products defined at the tariff-line 
level and over 99 per cent on the basis of import value. 
26. At the 48th Session of the Sub-Committee, the Secretariat introduced its note entitled "Market 
Access for Products and Services of Export Inter est to Least-Developed Countries", contained in 
document WT/COMTD/LDC/W/41.  The note contains, inter alia , information on trends in LDC 
trade and market access conditions, covering goods and to a limited extent services.  While some 
Members made comments to further improve the da ta contained in the current note, the LDCs 
suggested a number of elements for inclusion in the next study by the Secretariat on this topic.  The 
Sub-Committee agreed to revert to this document at its next meeting. 
(ii) Trade-related Technical Assistance and Capacity-Building Initiatives for LDCs 
27. The item on TRTA and capacity-building init iatives for LDCs was considered at the 46th and 
47th Sessions of the Sub-Committee.  At the 46th Session, the Secretariat gave an overview of its 
technical assistance and training activities to the LDCs, including in the area of the Doha Work 
Programme.  In 2006, out of 486 activities, LDCs were involved in 212 activities representing 
                                                      
12 To be issued. 
13 WT/COMTD/LDC/11. 
14 Summary of the discussion on this item may be seen in document WT/COMTD/LDC/M/47 
(paragraphs. 3 to 11).  WT/COMTD/W/163 
 Page 7 
 
 
  44 per cent of WTO's TRTA.  Members noted the effort s by the Secretariat to provide support to the 
LDCs through a broad range of programmes.  Th e LDCs emphasized the need for continuing the 
special consideration to them in the implementation of WTO's TRTA. 
28. At the 47th Session of the Sub-Committee, the Secretariat gave a presentation on the 
Standards and Trade Development Facility (STDF) , based on the note entitled "Overview of the 
Standards and Trade Development Facility" (WT/COMTD/LDC/W/40).  The STDF Working Group 
has so far approved 11 LDC-specific projects, as well  as 18 project preparation grants in keeping with 
the target of allocating 40 pe r cent of STDF grant resources to the LDCs and other low-income 
economies. 
29. At the 47th and 48th Sessions of the Sub-Committee, the Ch airman of the Enhanced Integrated 
Framework (EIF) interim Board reported on the status  of the implementation of the EIF.  Intensive 
work is going on to put in place the EIF.  The selection process of the Execu tive Director for the EIF 
Executive Secretariat has commenced.  At the same time, the interim Board is finalizing work on the 
Accountability Framework for the EIF Trust Fund Mana ger, the basis for a subsequent selection of 
the EIF Trust Fund Manager.  
30. At its 47th Session, the Sub-Committee agreed that  all responsibilities entrusted to the 
Integrated Framework Working Group (IFWG) would be  vested in the EIF Board as of 29 June 2007, 
which would ensure that its decisions regarding a llocations from the current IF Trust Fund would be 
taken by consensus. 
31. The Integrated Framework Steering Committee (IFSC) held its 19th Session on 1 May 2007.15  
At that session, Members adopted a package of recommendations to start the implementation phase of 
the EIF.16  The recommendations contain draft guidelines on different roles and relationships of the 
EIF entities.17  A high-level Donor Pledging Conference fo r the EIF was held in Stockholm (Sweden), 
on 25 September 2007 to mobilize financial support fo r the EIF.  Concrete pledges amounting to more 
than US$100 million for the first two years of operation of the EIF had been made by donors to the IF 
Trust Fund.18 
32. In parallel to the work to enhance the IF , continuous progress is being made in the 
implementation of the IF in the beneficiary countries.  The EIF will apply to all current IF beneficiaries, as well to any new applicants.  At present, 45 LDCs are at various stages of the IF process.  Twenty-seven LDCs had undertaken and validated a Diagnostic Trade Integration Study 
(DTIS), three of which are now in the process of updating their DTISs;  a further twelve LDCs are in the process of preparing their DTISs, while another six have applied to join the IF. 
(iii) Assistance to LDCs in the diversification of their production and export base 
33. The Sub-Committee considered this item at its 46
th Session.  Under this item, the UNIDO 
made a presentation on its trade capacity build ing programme, in particular on the activities 
undertaken or planned in favour of LDCs.  It was highlighted that 60 per cent of all trade capacity 
building programmes of the UNIDO were devoted to the LDCs.   
                                                      
15 This was the last session of the IFSC under the current IF governance structure. 
16 The minutes of this Session are contained in document WT/IFSC/M/18. 
17 Contained in the Compendium of Working Documents, which can be seen on the IF website: 
www.integratedframework.org. 
18 Press statement of the Ministry of Foreign Affairs, Sweden, available on the IF website. WT/COMTD/W/163 
Page 8  
 
  (iv) Accession of LDCs 
34. The Sub-Committee considered the ite m on Accession of LDCs at its 48
th Session.  The 
Secretariat introduced a note contained in document JOB(07)/147, which provides a brief state of play 
of the accession working parties of the LDCs.  The LDCs emphasized the need to review the 
accession guidelines adopted in 2002 with a vi ew to making their provisions operational.19  T h e  
Chairman of the Sub-Committee urged Members to make continued efforts to conclude the ongoing 
LDC accession negotiations as soon as possible.  Eleven  LDCs are at various stages of their accession 
process, which represents more than on e-third of ongoing accession negotiations.20 
__________ 
  
                                                     
 
19 The accession guidelines are contained in document WT/L/508. 
20 Afghanistan, Bhutan, Cape Verde, Comoros, Ethiopia, Lao PDR, Samoa, Sudan, Vanuatu, Yemen, 
Sao Tome and Principe.