RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/COMTD/LDC/M/49 
30 May 2008 
 
 (08-2526) 
Sub-Committee on Least-Developed Countries 
Forty-Ninth Session  
 
 
 
NOTE ON THE MEETING OF 27 MARCH 2008 
 
Chairperson:  Ambassador Jean Feyder (Luxembourg) 
 
 
A. ADOPTION OF THE AGENDA .........................................................................................................1  
B. WTO WORK PROGRAMME FOR THE LEAST -DEVELOPED COUNTRIES 
(WT/COMTD /LDC/11):  MARKET ACCESS FOR LEAST -DEVELOPED COUNTRIES ............................1  
C. LEAST -DEVELOPED COUNTRIES TRADE MINISTERS ' MEETING HELD IN MASERU FROM 
27 TO 29 FEBRUARY 2008 ...........................................................................................................7  
D. OTHER BUSINESS .........................................................................................................................9  
 
 1. The Chairman
 expressed gratitude to Members for re-electing him as the Chairman of the 
Sub-Committee on LDCs.  He thanked delegations for th e confidence that they had placed in him.  He 
sought continued support and c ooperation from Members in discharging his responsibilities.   
A. ADOPTION OF THE AGENDA  
2. The Chairman  informed Members that under Other Bu siness, the United Nations Industrial 
Development Organization (UNIDO) would make a re port on the LDC Ministerial Conference held in 
Vienna in November 2007.  
3. The Sub-Committee adopted the draft age nda contained in document WTO/AIR/3163. 
B. WTO WORK PROGRAMME FOR THE LEAST -DEVELOPED COUNTRIES (WT/COMTD /LDC/11):  
MARKET ACCESS FOR LEAST -DEVELOPED COUNTRIES  
4. The Chairman  said that he would take up the item on Market Access for LDCs under the 
WTO Work Programme for the LDCs.  In this regard , there were two sub-items for consideration by 
Members.  He began with the first sub-item. 
- Market Access for Products and Services of Expor t Interest to Least-Developed Countries 
(WT/COMTD/LDC/W/41/Rev.1) 
 
5. The Chairman  recalled that a substantive discussion had taken place on the Secretariat note 
entitled "Market Access for Products and Services of  Export Interest to Least-Developed Countries" 
at the previous meeting of the Sub-Committee.  Th e note identified the main trends in exports of 
LDCs.  It reviewed the market access situation of LDCs, and enumerated the latest initiatives taken by 
Members to improve market access for LDC products.  It was suggested at the previous meeting that 
the document be kept on the agenda in order to cont inue discussions at today's meeting.  In view of 
the comments made at the last meeting, the S ecretariat had revised the document contained in WT/COMTD/LDC/M/49 
Page 2  
 
  WT/COMTD/LDC/W/41/Rev.1.  The revised documen t incorporated additional statistics concerning 
LDC trade and updated some data relating to  China's initiatives in favour of LDCs.   
6. The representative of Lesotho
 congratulated the Chairman on his re-election.  He expressed 
gratitude to the Secretariat for its note which examin ed a number of issues relating to LDC trade and 
market access conditions.  He noted that the va lue of LDC exports had increased over the 2000 to 
2006 period, including exports of services.  The LDCs had performed well in their merchandise 
exports in 2005 and in 2006.  As a result, the ne gative trade balance of LDCs in merchandise trade 
had been narrowed.  He noted that the LDCs, as a group, had registered a positive trade balance in 
2006.  He, however, cautioned that these overall fi gures could be misleading as it needed to be 
interpreted in an appropriate context.  The aggr egate growth rate had been hiding a substantial 
variation in the export performance across LDCs.  Alt hough there had been an in crease in the share of 
LDCs in world merchandise trade from 0.6 per cent in 2004 to 0.9 per cent in 2006, the increase had 
occurred from a low base and was mainly due to rise in the prices of oil and mineral products.  
Therefore, the increase in the exports of goods was due to a few products, mainly oil where the 
value-addition was not high.  He also cautioned agai nst any complacency with the fact that the share 
of LDCs in world trade in commercial services had gone up from 0.4 per cent in 2003 to 1 per cent in 
2005.  He observed that the exporters of manufactur es – mostly clothing – had registered moderate 
growth rates during the 2000 to 2006 period.  The heterogenous growth pattern experienced by 
different LDCs had been a characteristic of LDC trade.   
7. He went on to say that the export basket of most LDCs was narrow, making the LDCs 
vulnerable to external shock.  He expressed concern that the food prices had been rising in a persistent 
manner.  The demand for food had been growing.  At  the same time, he pointed out that agricultural 
land and production were increasingly being used for biofuel production.  The price forecasts had 
been showing that the prices of food would continue to rise in the coming years.  That would pose a daunting challenge to the net food-importing developi ng countries (NFIDCs), particularly the LDCs.  
He hoped that the DDA negotiations would bring a resu lt which could bring down the prices of foods.  
The LDCs should be given special dispensation to  address the increasing food prices and its effects on 
their economies.   
8. He underlined the need for diversification of  LDCs production and export base.  The LDCs 
not only needed to overcome their supply-side constraints but also to reduce transaction costs 
involved in trade through appropria te trade facilitation measures.  He said that technical assistance 
and capacity building should be demand driven and needs-based.  That would make any assistance to 
the LDCs effective.  In this regard, he info rmed Members that efforts were being made to 
operationalize the Enhanced Integrated Framework (E IF) as soon as possible.  He said that the LDCs 
that were yet to undertake their Diagnostic Trade Integration Studies (DTISs) or were planning to 
update the existing DTISs could harness their trade strategies from such exercises to address their 
trade needs.  In conclusion, he said that the note by the Secretariat should be studied carefully as the 
export performance of LDCs had been varying among the different countries. 
9. The representative of China
 congratulated the Chairman on his re-election.  He expressed 
appreciation to the Secretariat for incorporation of  his delegation's comments and suggestions into the 
revised version of the note.  The revised note re flected more appropriately the situation of his 
country's contribution to providing market access  opportunities to the LDCs.  He recognized the 
importance of providing the Secretariat with upda ted information in time.  His delegation was 
committed to continue to cooperate with the Secret ariat to further improve its work on LDC trade. 
10. The representative of the United States  congratulated the Chairman on his re-election.  She 
expressed appreciation to the Secretariat for its re vised note.  Her delegation had found the note 
useful.  Referring to Table 9(b) of the note, rela ting to tariff treatment of LDC exports in selected 
developing country markets (2005), she pointed out that the Table appeared to have focussed on one  WT/COMTD/LDC/M/49 
 Page 3 
 
 
  particular region among developing countries.  Sh e suggested to expand the Table to include 
information on the current duty-free lines provided to  the LDCs by a broader range of countries like 
Brazil, Egypt and South Africa. 
11. The representative of Senegal  congratulated the Chairman on his re-election.  His delegation 
would continue to support the work that was bei ng carried out by the Chairman.  He thanked the 
Secretariat for the quality of the note.  He associated himself with the statement made by the 
representative of Lesotho, on behalf of the LDCs.  He said that the revised note contained interesting 
elements which needed close reflection.  There were  some causes of concern with the current trend of 
LDC exports.  A major part of LDC exports co nsisted of oil and mine rals, which were low 
value-added products.  The exports of agricultu ral products as well as of manufactures from LDCs 
had been declining.  He expressed concern that a downward trend in these sectors could affect the 
employment situation in the LDCs.  He suggested that ways and means should be explored to make 
agriculture and manufacturing sectors more developed in the LDCs.  That would ensure reversing the 
current trend of LDC exports which were h eavily dominated by oil and mineral exports. 
12. He went on to say that the LDC exports were c oncentrated on a limited number of tariff lines 
which represented the vulnerability of the LDCs in  world trade.  He emphasized the importance of 
diversification of LDCs' production and export base.  Enhanced mark et access would not be enough to 
generate exports from the LDCs.  Accompanying me asures were needed to e ffectively utilize market 
access opportunities provided to the LDCs.  He note d that exports from LDCs to the developed 
country markets had been increasing.  The bulk of  these increased exports consisted of mineral 
products, and to some extent manufactures.  That implied that not all LDCs  were benefiting from the 
recent surge in overall LDC exports.  He underlin ed the importance of increasing the exports of 
value-added products and reducing the reliance on primary products.  That would contribute towards 
development in the LDCs.  He suggested that the Sub-Committee could take up some of the issues he 
raised to help LDCs diversify their export base and better integrate into world trade.   
13. The representative of Bangladesh  congratulated the Chairman on his re-election.  He 
supported the analysis made in the statement by the representative of Lesotho, on behalf of the LDCs.  
He thanked the Secretariat for its revised note.  He said that the export basket of the LDCs was narrow.  With a view to increasing exports from th e LDCs, the LDCs had been pursuing duty-free and 
quota-free (DFQF) market access to the developed country as well as to the developing country markets.  DFQF market access would help LDCs di versify their export basket.  At the same time, 
complementary support was needed to  build trade capacity in the LDCs .  He noted that the utilization 
rate of preference schemes was not satisfactory.  Unr ealistic rules of origin criteria associated with the 
preference schemes and other non-tariff barriers (N TBs) faced by the LDCs were among the reasons 
for this lack of utilization.  Most of the LDCs we re not in a position to identify those NTBs, let alone 
to take necessary measures to address them.  He emphasized the need for more study to be done in 
this area.  In this regard, the LDCs needed cooperation from the WTO Secretariat to identify the 
NTBs and to find necessary measures to address those NT Bs so as to facilitate exports from them.  He 
underlined the importance of making the preferential rules of origin simple and LDC-friendly.  He 
stressed that the EIF and the Aid for Trade initia tive were important mechan isms available to the 
LDCs to address their supply-side constraints.   
14. The representative of the European Communities
 congratulated the Chairman on his 
re-election.  She welcomed the revised note from th e Secretariat.  She found that the overall export 
performance of the LDCs was positive.  She,  however, expressed concern over the lack of 
diversification of the vast majority of LDCs.  Sh e regretted the fact that only three main products 
constituted almost 80 per cent of total export reve nues in 2005 for over half of the 50 LDCs.  She 
stressed that oil and mineral exporting LDCs s hould invest their export earnings in a productive 
manner, especially in enhancing human capacity a nd in strengthening physical infrastructure.  
Referring to Box 1 of the note, she said that the high transaction costs in LDCs had been undermining WT/COMTD/LDC/M/49 
Page 4  
 
  their competitiveness in internationa l trade.  The number of documents  needed for exports, the time 
required in export procedures and the higher unit cost s to export faced by the LDCs had been reducing 
their trade potential.  She wondered whether the ki nd of data provided in Box 1 could be expanded 
and deliberated upon at the Sub-Committee.  She not ed that the World Bank had been regularly 
producing indicators relating to trade facilitation which could be relevant in examining the 
supply-side constraints in the LDCs and which coul d help LDCs in benefiting from the Aid for Trade 
initiative.  She called upon Members to adhere to  the commitments undertaken by them at the 
Hong Kong Ministerial Conference held in 2005 to  provide DFQF market access to the LDCs.  She 
appreciated that Singapore had been providing DFQF  market access to the LDCs.  She noted that 
many other developing countries had scope for furt her improvements in providing enhanced market 
access to the LDCs. 
15. The representative of Cambodia
 congratulated the Chairman on his re-election.  He associated 
himself with the statement made by the representa tive of Lesotho, on behalf of the LDCs.  He 
emphasized the need for enhanced market access fo r LDC products.  In this regard, his delegation 
would like to see an effective implementation of the Decision on DFQF market access for LDCs, 
taken at the Hong Kong Ministerial Conference.  Market access opportunities provided to the LDCs 
should be commercially meaningful.  He stressed  that developed country Members, as well as 
developing country Members declaring themselves  in a position to do so, should provide DFQF 
market access for all products originating from LD Cs by 2008.  At the same time, simple and 
transparent preferential rules of origin should also be implemented.  Referring to the Maseru 
Declaration adopted by the LDC Trade Ministers in  February 2008, he emphasized the need for a 
specific timeframe for phasing-in of the remaining 3 per cent of products originating from LDCs 
under the DFQF coverage.  With regard to servi ces negotiations, he underlined the need for a 
mechanism to grant special priority  to the LDCs in sectors and modes of supply of interest to them.  
He said that the issue of special priority to the LDCs was the cornerstone in the services negotiations 
and his delegation was keen to see a positive outcome on this aspect of the negotiations.  That would 
be one of the ways to reduce the gap between LD Cs and other Members in international trade. 
16. The representative of Haiti  congratulated the Chairman on his re-election.  He thanked the 
Secretariat for the quality of the document, which fa ithfully reflected the situation of LDCs in world 
trade.  He associated himself with the statement ma de by the representative of Lesotho, on behalf of 
the LDCs.  His delegation was concerned with the lack of effective market access to developed 
country markets.  He said that the capacity of LDCs in producing goods for international trade was 
limited.  Notwithstanding this constraint, exports fro m LDCs were hindered by NTBs such as rules of 
origin.  He stressed that NTBs faced by LDC exports needed to be effectively resolved to enable the 
entry of LDC products into develope d and developing country markets.  He underlined the importance 
of technical assistance and capacity building support to the LDCs to increase participation in world 
trade.   
17. The representative of Brazil  thanked the WTO Secretariat for its useful and thought 
provoking note.  The note was comprehensive, which was useful not only to the LDCs but also to 
their trading partners.  He appreciated the fact that the note had attached due importance to South-South trade.  He also noted that deve loping country markets were increasingly becoming 
important destinations for LDC expor ts, which was reflected in paragraphs 17 to 22 of the note.  This 
increase of trade among developing countries had been a major driving force to give dynamism to the 
world economy.  The LDCs stood to gain by particip ating more in those trade flows.  He, however, 
expressed concern that trade barriers among the devel oping countries were still relatively high.  Major 
efforts had been employed to bring those barriers down. 
18. He went on to say that one of the initiatives to promote trade among developing countries was 
the global system of trade preferences among developing countries (GSTP), which the note had 
mentioned in paragraphs 44 and 45.  The note r ecognized that there had been some efforts under  WT/COMTD/LDC/M/49 
 Page 5 
 
 
  GSTP negotiations to enhance market access for LDCs.  It did not elaborate that the participants to the 
third round of GSTP negotiations, la unched in São Paulo, Brazil, in  2004, had been working towards 
according specific concessions to the LDCs.  He re gretted the fact that at present the incentives for 
LDCs to seek preferential arrangements with other developing countries had been greatly undermined 
due to the negotiations of Economic Partnership Ag reements (EPAs) between the EC and the Group 
of African, Caribbean and Pacific States (ACP), many of which were LDCs.  He said that there were 
clauses in the EPAs that obliged the ACP countries to extend to the EC any preferential treatment they 
might negotiate with third parties.  These clauses coul d run against the spirit, if not the letter, of the 
1979 Decision on "Differential and Mo re Favourable Treatment, Recipr ocity and Fuller Participation 
of Developing Countries" (the Enabling Clause).  The idea behind the Enabling Clause was to provide 
appropriate flexibility to developing countries to he lp them integrate into world trade.  It was 
unfortunate that by the time the LDCs had star ted to increase their trade linkages with other 
developing countries, certain provisions in the EPAs could create constraints to South-South trade.  
He emphasized the importance of trade preference s which could provide commercial value to the 
LDCs.  In this regard, his authorities were work ing towards the implementation of DFQF market 
access for the LDCs, in line with th e Decision taken at the Hong Kong Ministerial Conference.  He 
also encouraged the LDCs to engage fully in So uth-South trade through participation in different 
regional schemes, including through partic ipation in the GSTP negotiations.   
19. The representative of Tanzania  congratulated the Chairman on his re-election.  He thanked 
the Secretariat for its comprehensive note.  He a ssociated himself with the statement made by the 
representative of Lesotho, on behalf of the LDCs.  The note was useful as it reviewed the market 
access conditions facing LDC exports.  He recalled the Decision taken at the Hong Kong Ministerial 
Conference to provide DFQF market access to the LDCs.  In this regard, exclusion of 3 per cent of products originating from LDCs from the DFQF cove rage could greatly affect the LDCs, including 
the chance of increasing the world share of LDC e xports.  The exports from LD Cs were dominated by 
primary products such as fuels and minerals.  In fact, oil had accounted for more than 50 per cent of 
all LDC exports in 2005.  This lack of diversifi cation of LDC exports was a cause of concern.  He 
pointed out that global trade today was characterized  by an increase in the share of services trade and 
by a rise in high technology products for which LD Cs were ill equipped to survive the competition.  
He added that in an environment where trade in  advanced technology prod ucts and services provided 
the countries with a cutting edge competitive advant age, LDCs with their supply-side constraints 
would not be able to increase their exports.  The is sue, therefore, was not only to secure enhanced 
market access for LDC products but also to stre ngthen capacity to produce marketable goods and 
services.  He underlined the need for significant in vestment in existing and potential export sectors, 
providing training to the work force to enhance skills and the need to pursue technology transfer to the 
LDCs which would enable them to trade more at a global level.  
20. The representative of the European Communities
 responded briefly to the comment made by 
the representative of Brazil concerning the EPAs.  She pointed out that an information session had 
been organized recently in which Brazil had been pr esent.  At that session, the EC had explained the 
status of the EPA negotiations including providing detailed explanations on the MFN clauses in the 
EPAs.  She pointed out that those MFN clauses woul d be applicable to future free trade agreements 
(FTAs) that might be concluded by EPA parties wi th third countries that would be considered major 
trading economies.  That would in no way put into jeopardy the rights of the EPA parties to select 
their own sensitive products vis-à-vis  the EC.  She added that such MFN clauses were not a novelty in 
trade agreements and that Brazil had similar provisi ons in trade agreements with its regional trading 
partners.  
21. The Chairman  thanked delegations for welcoming his re-election and for their kind words to 
him.  The Secretariat would seek to incorporate th e comments made by Members into its next study 
on this topic which would be available at the meeting of the Sub-Committee scheduled for 
October 2008.  He said that the prices of food produc ts had been rising over the past year.  The LDC WT/COMTD/LDC/M/49 
Page 6  
 
  agricultural exporters had been experiencing a defic it in their trade balance.  That was a cause of 
concern.  It would be worthwhile to have an in-d epth examination of these issues.  He requested the 
Secretariat to delve further into the matter and indi cate how the food price situation was evolving.  He 
informed Members that he had had a meeting with th e Secretariat to request an initial paper on this 
topic.  He hoped that a paper on LDC trade in f ood and agricultural products would be available for 
the next meeting of the Sub-Committee tentatively scheduled for June 2008. 
22. He continued by suggesting that at its next meeting the Sub-Committee might wish to discuss 
the status of the EIF and its relation with Aid for Tr ade.  In this regard, he  underlined the importance 
of trade-related capacity building in the LDCs, in particular enhancing LDCs' supply-side capacity.  
There were a considerable number of players i nvolved in providing trade-related capacity building 
support to the LDCs.  Members would be able to use the Sub-Committee as a forum to provide them 
with a complete picture of the efforts being made by the international community in these areas.  He 
suggested that the Sub-Committee take  note of the document contained in 
WT/COMTD/LDC/W/41/Rev.1 and of the statements made. 
23. It was so agreed
. 
- Market Access Issues for Least-Developed Count ries in the area of Trade in Services 
(JOB(07)/32/Rev.1 and JOB (07)/148) 
 
24. The Chairman  recalled that the two Secretariat notes, contained in JOB(07)/32/Rev.1 and 
JOB(07)/148, had been considered at the previous meeting of the Sub-Committee.  At that meeting, 
Members had shown an interest in the continua tion of the consideration of these two notes which 
presented certain issues of interest to LDCs in the area of trade in services, including information 
sheets on services trade and service sector reforms unde rtaken by the LDCs.  He invited Members to 
take the floor. 
25. The representative of Lesotho  said that trade in services wa s different from trade in goods.  
Availability of services trade data was limited.  In  that context, he appreciated the efforts by the 
Secretariat in compiling information on LDCs' servic es trade.  The LDCs had been exploring on how 
best to build on the information that had been provide d in the notes.  He suggested that the Secretariat 
pull information from other sources to supplement the in formation that had been provided in its notes.  
A number of organizations had undertaken services sector studies or assessments in the LDCs.  It would be useful to listen to the findings of those studies at the Sub-Committee.   
26. He noted from the Secretariat document that a large number of LDCs had undertaken reforms 
in their services sectors on an autonomous basis and independent of the Doha  Round of negotiations.  
Fundamental reforms were being carried out in sect ors such as telecommunications, finance, transport 
or health, where foreign companies were allowed to  operate in the LDCs.  He added that access to 
foreign companies was given in critical sectors like ener gy services.  He regretted the fact that despite 
such efforts from the LDCs to liberalize their services sectors, no tangible progress had been achieved 
in the liberalization of market access in sectors a nd modes of supply of export interest to the LDCs, 
particularly in the developed country markets.   
27. He went on to say that the services negotiations had so far failed to create opportunities for 
LDCs' services and service suppliers.  In that context, he called upon Members to undertake 
commitment in sectors and modes of supply of export interest to the LDCs.  The LDCs were currently 
engaged in the Special Session of the Services Council to implement the modalities adopted in 2003 
for the special treatment for LDCs in the nego tiations on trade in services.  These modalities were 
meant to enhance the participation of LDCs in servic es trade.  They required that Members develop an 
appropriate mechanism to grant special priority to the LDCs.  He said that Members had been 
reflecting on the establishment of such a mechanism for a long time.  With a genuine will from the  WT/COMTD/LDC/M/49 
 Page 7 
 
 
  Members, it would not be difficult to find a lega lly feasible solution to provide LDCs with an 
appropriate mechanism which would allow effect ive market access to their services and service 
suppliers.  He emphasized the need for an urgent d ecision in this regard so that LDCs' services and 
service suppliers could be integrated into world services trade.   
28. In conclusion, he recognized the efforts of the S ecretariat in compiling some important data in 
both the Secretariat notes under the item.  He suggest ed that the Sub-Committee invite international 
organizations which had undertaken work in the area of  trade in services, particularly in the LDCs, to 
share their findings with Members.  That w ould help LDCs enhanc e their knowledge and 
understanding on services trade as well as better pursue their interests in this area of the negotiations. 
29. The Chairman  said that both the notes under this item contained useful information in the area 
of trade in services in LDCs.  There was significant po tential for LDCs in services trade.  A number of 
LDCs were performing well in the tourism sector, which was one of the world's largest and fastest-growing industries.  He also recognized that different service sectors had been playing 
different roles in different LDCs.  He said that th e Coordinator of the LDCs, Lesotho, had raised a 
particular question concerning the involvement of  organizations other than the WTO Secretariat 
which had undertaken some work in the area of trad e in services in LDCs.  In this regard, he noted 
that a number of LDC country-specific studies had r ecently been undertaken by some organizations.  
He agreed with the suggestion made by the Coor dinator of the LDCs to invite some of these 
organizations to the Sub-Committee.  That would he lp Members to better understand services trade in 
the LDCs.  He suggested that Members take note of  the statements made.  He requested that the 
Secretariat explore the possibility of inviting one or more relevant organizati ons to the next meeting 
of the Sub-Committee to make a presentation on studi es undertaken in favour of LDCs in the area of 
trade in services.   
30. It was so agreed
. 
C. LEAST -DEVELOPED COUNTRIES TRADE MINISTERS ' MEETING HELD IN MASERU FROM 27 TO 
29 FEBRUARY 2008   
- Report by the Coordinator of  the Least-developed Countries 
 
31. The Chairman  recalled that the Coordinator of the LDCs, Lesotho, had hosted an LDC Trade 
Ministers' meeting in Maseru from 27 to 29 Febr uary 2008.  The meeting had adopted the Maseru 
Declaration, which had been circulated to Member s as document WT/L/719.  In addition to the LDCs, 
the meeting had also brought together a number of LDCs' major trading partners and several 
international organizations dealing with trade.  He had also taken part in that meeting in his capacity 
as the Chairman of this Sub-Committee.  He congrat ulated the Government of Lesotho for the quality 
and the efficiency with which the meeting was organi zed.  He invited the Coordinator of the LDCs to 
make a report on that meeting. 
32. The representative of Lesotho  said that the LDC Trade Ministers had met in Maseru, Lesotho, 
from 27 to 29 February 2008.  Thirty-eight LDCs took part in that meeting.  Around 23 LDCs were 
represented at a Ministerial level.  The meeting ha d adopted the Maseru Declaration, which had been 
circulated as document WT/L/719.  The meeting had also offered an opportunity for the LDCs to dialogue with their major trading partners from developed and developing countries.  Agencies 
involved with trade had also been invited to pa rticipate.  He thanked the Chairman for his 
participation at that meeting.   
33. The agenda of the meeting covered a broad sp ectrum of key issues of the DDA negotiations, 
namely:  Agriculture;  NAMA;  Services;  Trade Facilitation;  TRIPs;  and Rules.  The Director-General of the WTO briefed the Minister s on the current state of the DDA negotiations as WT/COMTD/LDC/M/49 
Page 8  
 
  well as on progress made on the Aid for Trade initiative.  The Secretary-General of UNCTAD gave a 
briefing on the UNCTAD XII Conference scheduled fo r 20 to 25 April 2008 in Accra, Ghana.   
34. He went on to say that at the forefront of the LDCs' concerns was the issue of enhanced 
market access for LDC products.  LDC exports depe nded on a limited number of products.  Therefore, 
the LDCs needed effective DFQF market access to both developed and developing country markets.  
Minimizing the effects resulting from the erosion of trade preferences was another objective of the 
LDCs in the current negotiations.  He stressed th at the issue of cotton was critical for the LDCs, 
which should be effectively a nd expeditiously addressed.   
35. The Maseru Declaration identified several speci fic negotiating outcomes desired by the LDCs 
in the DDA.  He recalled that Members had agr eed in 2005 that developed country Members would 
provide DFQF market access for at least 97 per cent of products originating from the LDCs.  In this 
regard, the Maseru Declaration called upon Member s to ensure commercially meaningful market 
access for at least 97 per cent of the products from a ll LDCs by the end of 2008.  At the same time, 
the Maseru meeting expressed concern that the flex ibility given to Members for excluding 3 per cent 
of products originating from LDCs could leave out a significant number of LDC products from the 
coverage of DFQF access.  That  was why the Maseru Declaration asked the developed countries to 
phase-in the remaining 3 per cent of products origin ating from LDCs under the DFQF coverage by the 
end of the implementation period of the Round.  He said that the Maseru meeting also underlined the 
importance of making progress in securing DFQF mark et access to developing country markets.   
36. The Maseru meeting had stressed that incr eased market access opportunities would mean 
little to the LDCs, unless accompanied by simplified and transparent rules of origin.  In this regard, 
the Maseru Declaration asked WTO Members to modi fy their rules of origin following the model 
provided in the LDC proposal on rules of origin , submitted in three negotiating bodies as documents 
TN/CTD/W/30, TN/MA/W/74 and TN/AG/GEN/20.  He said that with a view to addressing erosion 
of preferences, the LDCs would like to see both tr ade and non-trade solutions as part of the modalities 
for agriculture and non-agricultural market acces s (NAMA).  In this regard, the LDCs were 
particularly requesting the US and the EC to ph ase-in tariff cuts on certain identified tariff lines, 
mostly on textiles and clothing, over a 15 year period.   That would allow LDCs  a reasonable period of 
adjustment and breathing space to the new tradi ng order resulting from the conclusion of the DDA 
negotiations.  He said that many LDCs were c oncerned that the sector-specific liberalization 
initiatives in the NAMA negotiations risked complete ly eliminating the margin of preference that 
LDCs had been receiving in their major markets.  Th e elimination of tariffs on fish and fish products 
by major markets – a proposal currently under di scussion – would be devastating for some coastal 
LDCs.  In this regard, he quoted the position of the LDCs as laid down in the Maseru Declaration:  
"The sectoral initiatives of the NAMA negotiations sha ll not harm the export interests of LDCs due to 
erosion of their preferences". 
37. He continued by saying that the Maseru Declar ation had articulated the position of LDCs in 
other areas of the negotiations such as Agriculture, in particular in the areas of Special Safeguard 
Mechanism and monetization of food aid.  The Declaration also outlined LDC positions in the 
negotiations on Services, Trade Facilitation, Trade-re lated Intellectual Property Rights (TRIPs), Rules 
including Fisheries Subsidies and on Special a nd Differential Treatment provisions.  Concerning 
accession of LDCs to the WTO, he recalled the General Council Decision of December 2002 which 
had requested Members to expedite and facilitate the accession of LDCs to the WTO.  He expressed 
concern that acceding LDCs were being subjected to  rigorous scrutiny causing them significant delay 
in joining the WTO as a full Member.  The EIF and Aid for Trade also featured in the Maseru 
Declaration.  He requested Members to take a clo se look at the Maseru Declaration, which formed the 
basis for the LDCs to pursue their interests in th e current phase of the DDA negotiations.  He urged 
Members to positively respond to the LDC proposals ma de in different areas of the negotiations as 
reflected in the Maseru Declaration.  He expr essed concern that Members lacked a proactive  WT/COMTD/LDC/M/49 
 Page 9 
 
 
  engagement, as illustrated in the debate under the previous agenda item relating to services where 
Members had shown reticence in dealing with issues of interest to the LDCs. 
38. The representative of Canada  congratulated the Chairman on his re-election.  He 
congratulated the Government of Lesotho for hostin g the LDC Trade Ministers' meeting, which was 
the fifth of its kind.  His delegation was particularly honoured that it had been invited to that meeting.  
The timing of the meeting was opportune, given th e current state of the DDA negotiations.  His 
delegation was pleased that the LDCs were able to lay out their interests in different areas of the 
negotiations under the DDA.  His delegation took not e of the points made by the representative of 
Lesotho and would give them close consideration in  the negotiations.  He reaffirmed his delegation's 
commitment to work with the LD Cs to advance the DDA negotiations. 
39. The Chairman  hoped that Members had taken due note of the concerns and interests 
expressed by the LDCs in the Maseru Declaration.  He would remain available to the LDCs in his 
capacity as the Chairman of the Sub-Committee so as to advance the interests of LDCs in the 
multilateral trading system.  He suggested th at the Sub-Committee take note of the Maseru 
Declaration as contained in document WT/L/719, as well as of the statements made. 
40. It was so agreed . 
D. OTHER BUSINESS  
41. The Chairman  said that UNIDO had requested that the Vienna Ministerial Declaration 
adopted by the LDC Ministerial Conference held in Vienna in November 2007 be brought to the 
attention of the Sub-Committee.  Copies of that Decl aration were available at the back of the meeting 
room.  He invited the representative of UNIDO to take the floor.   
42. The representative of UNIDO  thanked the Chair for highlighting the Vienna Ministerial 
Declaration at the meeting.  That Declaration resulted from the successful LDC Ministerial Conference held in Vienna from 29 to 30 Novemb er 2007.  He informed Members that UNIDO had 
been urged to hold such meetings at a regular interv al.  The next Ministerial meeting was scheduled to 
take place in Cambodia towards the end of this year. 
43. The representative of Senegal
 thanked the representative of UNIDO for sharing the 
information on the next Ministerial meeting to be he ld in Cambodia this year.  In this regard, he 
wished to know the exact date of the meeting.  He expressed appreciation to UNIDO for its work in 
the West African region, in particular under the framework of a sub-regional group of eight countries 
in West Africa.  He supported the programme of UNIDO in strengthening standards-related capacity 
in the LDCs.  Referring to paragraph 11 of the Vi enna Ministerial Declaration which had invited 
UNIDO to create a special Trust Fund for the LDCs, he sought information on progress made in the 
creation of that Trust Fund. 
44. The representative of Lesotho  underlined the importance of the Vienna Ministerial 
Declaration for the LDCs.  He expressed appreciati on to UNIDO for bringing that Declaration to the 
attention of WTO Members.  He pointed out that the support from UNIDO would be critical for the 
LDCs to take advantage of the opportunities that  were being created through the DDA negotiations.  
Organizations such as UNIDO, ITC and others co uld help LDCs in building necessary capacity to 
benefit from the outcome of the WTO negotiations.  The LDCs would work closely with UNIDO in 
developing appropriate programmes to improve their trade capacity. 
45. The representative of UNIDO  thanked the representatives of Senegal and Lesotho for their 
support to UNIDO's work.  So far, he did not have any specific information on the creation of a 
special Trust Fund for the LDCs.  In this regard, he would provide more information at a future WT/COMTD/LDC/M/49 
Page 10  
 
  meeting of the Sub-Committee.  He said that the Ministerial Conference held in November 2007 had 
enabled UNIDO to mobilize some funds in the recen t months.  It had been able to secure a good 
amount of contributions, in the context of the Aid fo r Trade initiative.  He was not sure whether those 
contributions had been made in the context of a sp ecial Trust Fund for the LDCs.  With regard to the 
query on the date of the Ministerial meeting in Ca mbodia, he said that the meeting might take place in 
the month of November this year.  The exact date would be communicated in due course. 
46. The Chairman
 said that he had participated in the Ministerial Meeting held in Vienna in 
November 2007.  That meeting had been rich in su bstance.  The meeting had allowed the LDCs to 
concentrate on their development strategies.   He had found the presentation made by 
Professor Erik Reinert at that meeting interesting, showing the history of deve lopment of the currently 
developed countries.  He felt that UNIDO coul d make important interventions in specific 
programmes, especially in the manufacturing sector in the LDCs.  Another important area of UNIDO's intervention was in the area of standard s.  He hoped that the cooperation between UNIDO 
and the LDCs and that of UNIDO and the WTO would be further strengthened.  He suggested that the 
LDCs remain in close contact with UNIDO to  follow-up on the Ministerial meeting of 
November 2007.   
47. The representative of Cambodia
 thanked UNIDO for holding the next Ministerial meeting in 
his country in the month of November this year.  He invited Members to attend that meeting.  He 
requested that UNIDO remain in touch with th e Permanent Mission of Cambodia in Geneva and 
provide the latter with necessary documents relating to that Ministerial meeting.  That would also help 
his authorities to arrange necessary logistics for the November meeting.   
48. The Chairman  expressed satisfaction with the fact that the LDCs had been developing the 
capacity to organize large meetings such as the one organized by Lesotho recently and the one to be 
organized in Cambodia later this year.  He had pa rticipated in a few meetings hosted by the LDC 
Governments, which had all been organized with a high level of efficiency.  He appreciated the 
determination of the LDCs in or ganizing meetings to pursue their interests in the current Round of 
negotiations as well as to improve their trade capacity .  He suggested that Members take note of the 
Vienna Ministerial Declaration as well as of the statements made. 
49. It was so agreed . 
50. The Chairman  said that the next meeting of the Su b-Committee was tentatively scheduled for 
the end of June 2008.  The exact date would be communicated in due course. 
51. In the absence of any other business, the meeting was adjourned . 
 
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