RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/COMTD/LDC/M/46 
13 June 2007 
 
 (07-2506) 
Sub-Committee on Least-Developed Countries 
Forty-Sixth Session  
 
 
  
NOTE ON THE MEETING OF 22 MARCH 2007 
 
Chairperson:  Ambassador Jean Feyder (Luxembourg) 
 
 
A.
 ADOPTION OF THE AGENDA .........................................................................................................1  
B. WTO WORK PROGRAMME FOR THE LEAST -DEVELOPED COUNTRIES ...........................................1  
(i) Assistance to Least-Developed Countries in the Diversification of their Production 
and Export Base................................................................................................................ ..........1  
(ii) Trade-related Technical Assistance and Capacity-Building Initiatives for Least-
Developed Countries............................................................................................................ .......6  
(iii) Market Access For Leas t-Developed Countries .......................................................................13  
C. OTHER BUSINESS .......................................................................................................................17  
 
 
A. ADOPTION OF THE AGENDA  
1. The Sub-Committee adopted  the draft agenda contained in document WTO/AIR/2975. 
B. WTO WORK PROGRAMME FOR THE LEAST -DEVELOPED COUNTRIES  
2. The Chairman  said that he would take up three elements of the WTO Work Programme for 
the Least-Developed Countries (LDCs), namely:  (i) assi stance to LDCs in the diversification of their 
production and export base;  (ii) trade-related tec hnical assistance and capacity -building initiatives for 
LDCs;  and (iii) market access for LDCs. 
(i) Assistance to Least-Developed Countries in the Diversification of their Production and 
Export Base 
- Report by Representative of the United Nati ons Industrial Development Organization  
(UNIDO)  
3. The Chairman  recalled that the WTO Work Programme for the LDCs 
(WT/COMTD/LDC/11) provided for support to agencies assisting with the diversification of LDCs' 
production and export base.  Pursuant  to this, in the past, the Sub- Committee had heard presentations 
from the International Trade Centre (ITC) a nd the United Nations Conference on Trade and 
Development (UNCTAD).  He said that the UNIDO had been invited to the meeting to make a 
presentation on the activities it undertook toward s building LDCs' production and export base. WT/COMTD/LDC/M/46 
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  4. The representative of UNIDO
 said that the LDCs might not be benefiting fully from the 
multilateral trading system.  There were windows of opportunities for the LDCs, in particular in the 
area of non-commodity higher valu e-added exports such as agro processing.  UNIDO had considered 
the challenges faced by developing countries in th ree dimensions.  First, there was a lack of 
supply-side capacity in many developing countries which were not in a position to produce products 
meeting market requirements.  Second, there were challenges with regard to  compliance of products 
and proof of such compliance in importing markets.  Third, there were challenges with respect to 
trade-facilitation infrastructure leading to an in crease in the transaction cost of production and 
exports.  He expressed concern that the current assi stance in the area of standards was not adequate.  
In this regard, he referred to a World Bank st udy conducted in 2004 which identified that due to 
non-compliance of sanitary and phytosanitary (SPS) measures, developing countries lost exports 
worth US$2 billion, while resources spent to suppor t developing countries in the building up of 
SPS-related infrastructure were US$53 million.   
5. UNIDO and UNCTAD had jointly organized  a regional workshop in 2002 with the 
participation of representatives from standard bodies and private sectors from 15 developing 
countries, including the LDCs.  The findings of the workshop were relevant in the context of current 
discussions under Aid for Trade in the WTO.  Some key specific challenges that had been hampering 
the participation of LDCs in world trade incl uded:  (i) lack of capacity to implement WTO 
agreements;  and (ii) inadequate technical assistan ce for acceding LDCs to the WTO.  These elements 
were factored into the technical-assistance programme of UNIDO.  Also, UNIDO had undertaken a survey on the standards and conformity infrastructure status in Africa, in preparation for a meeting in 
Tunis in February 2007.  The survey gave a picture of the gaps in the area of quality infrastructure.  
The Tunis meeting had resulted in an Action Plan on how quality infrastructure should be built up.  
This Action Plan had been used as a basis for national and regional programmes in Africa.   
6. He went on to say that from the perspective of UNIDO, the challenges faced by developing 
countries in world trade were of three kinds:  (i) lack of marketable products for exports which 
required the countries to develop productive capacity;  ( ii) lack of capacity to conform with standards 
which required the countries to work, inter alia , on the conformity assessment infrastructure;  
(iii) lack of connectivity to internationa l markets which required countries to work, inter alia , on rules 
for trade and customs procedures.  UNIDO coined these three challenges as the "three Cs", meaning 
that countries needed to compete, conform and connect to benefit from world trade.   
7. He said that trade capacity building was much  broader than the manda te of UNIDO.  UNIDO 
had thus developed strategic allia nces with other organizations.  A key alliance was the Memorandum 
of Understanding signed in 2003 at Cancún (Mexico) with the WTO during the Third WTO 
Ministerial Conference.  There were other alliances  with Geneva-based organizations.  He stressed 
that UNIDO could offer its services to the LDCs in two main areas.  First, it could assist in 
supply-side development.  Second, it could help in the area of standards, and in building conformity 
assessment infrastructure.  He stressed that it was im portant for the LDCs to work with other agencies 
involved in the area of trade, in particular the Geneva-based agencies, to complement the assistance 
provided by his Organization.  He noted that only  a few LDCs were repres ented in Vienna, although 
UNIDO Integrated Programmes and Country Serv ice Frameworks (CSF) were currently under 
implementation in 21 LDCs.  Twenty per cent of ove rall technical assistance of UNIDO was devoted 
to the LDCs.  More than half of UNIDO's trade capacity-building assistance had been devoted to the 
LDCs, which had witnessed a strong growth since 2004.   
8. He pointed out that UNIDO had been involved in developing trade capacity building 
programmes on a regional basis.  It had carried out  a programme in West Africa funded by the EU 
involving a budget of US$12 million.  Similar progr ammes were being devel oped in other regions 
such as in the Southern African Development Community (SADC) and the Caribbean Community 
(CARICOM).  There were other individual country programmes targeted to improve their capacity to  WT/COMTD/LDC/M/46 
 Page 3 
 
 
  meet standards, in particular SPS requireme nts, and upgrading of conformity assessment 
infrastructure.  These were done in cooperation with bilateral technical agencies.  He said that UNIDO 
was in the preparatory phase to start a regional cotton programme.  Through that programme, UNIDO 
could assist 11 countries in Africa to increase their value-added processing of cotton and could 
upgrade testing facilities so that cotton could be graded.  UNIDO was committed to address 
challenges faced by LDCs in the area of cotton.  The Director-General of UNIDO had participated in 
the High-Level Meeting on Cotton held at the WTO FROM 15 to 16 March 2007.  He then gave few 
examples of UNIDO's trade capacity-building progr ammes on a country basis.  A programme was 
under implementation in Bangladesh (Bangl adesh Quality Support Programme) involving 
US$9 million.  The programme was being implemente d in cooperation with the ITC.  A programme 
in the area of customs modernization had recently been completed in Afghanistan, carried out in 
cooperation with the World Bank and UNCTAD.  In Pakistan, UNIDO had been working on the development of its fisheries sector.  He informed Members that the Government of Pakistan had a self-imposed ban on its fish exports following an EU inspection mission which identified lack of 
compliance with SPS requirements putting exports wo rth US$150 million at stake.  With the support 
of the EU, and in cooperation with the ITC, the World Bank, the WTO and the World Intellectual 
Property Organization (WIPO), UNIDO had develope d a support programme in Pakistan to enhance 
compliance of its fisheries sector and to  build up its quality infrastructure. 
9. He hoped that enhanced resources would be forthcoming for the development of supply 
capacity and for the development of capacity to conform and to implement WTO agreements.  The 
work being undertaken by UNIDO w as in line with the current discu ssions under Aid for Trade in the 
WTO.  One of the key elements to make Aid for Trade work, and to make trade-related technical 
assistance work better, was to achieve UN-wide cohere nce in the area of trade capacity building.  He 
said that UNIDO would map-out all services availabl e within the UN system in relation to trade 
capacity building, in order to reach a better synerg y among different agencies and to ensure efficient 
delivery of trade capacity building coming from th e UN system.  He recognized that there were 
certain challenges on the delivery of Aid for Trad e, in particular the challenge of including 
constituencies other than the UN organizations such as the regional commissions or the private sector 
to make trade capacity building more effective.   UNIDO had been responding to these challenges, 
inter alia,  by developing holistic inter-age ncy cooperation.  It was key for UNIDO not to pursue 
solely its own programmes but to do trade capacity -building programmes that combined expertise of 
other agencies.  UNIDO would strengthen its effort to work on a regional level.  In conclusion, he 
informed Members that there would be an LDC Ministerial Conference focusing on how to make Aid 
for Trade more beneficial for the LDCs in Dece mber 2007, prior to UNIDO's General Conference. 
10. The representative of Bangladesh
 appreciated the initiative by the Chairman to invite UNIDO 
to the Sub-Committee.  Some LDC delegations in Geneva were looking after UNIDO matters in the 
absence of resident Missions in Vienna.  He said that he would welcome interaction with UNIDO at 
Geneva on a regular basis.  The presentation by the representative of UNIDO had highlighted the 
supply-side constraints of LDCs.  The challe nge of overcoming suppl y-side weaknesses was 
fundamental to the LDCs.  While the LDCs had b een trying to create markets for their products 
through the WTO, measures to address supply-side cons traints also needed immediate attention.  He 
noted that UNIDO had come forward to help LDCs in this area.  Referring to the note by the WTO 
Secretariat entitled "Non-Tariff Measures on Pr oducts of Export Interest to the LDCs" 
(WT/COMTD/LDC/W/39), he pointed out that new trade measures were becoming increasingly 
important for exports.  Tariffs in future would gradually come down.  Non-tariff measures would 
represent a formidable challenge for the LDCs in the days ahead.  This was where UNIDO's expertise 
would be valuable.  The presentation had referred to  two key areas of importance to the LDCs, apart 
from developing their capacity to understand and u se multilateral trade rules.  One was development 
of supply-side capacity, and the other was deve lopment of standards and conformity assessment 
infrastructure.  He continued by saying that UNIDO activity had been dormant for some years in 
Bangladesh.  However, over the past few years, the Government of Bangladesh had worked with WT/COMTD/LDC/M/46 
Page 4  
 
  UNIDO and had developed a progra mme which had been launched last  April.  Apart from the EU, 
donors such as Norway had joined to support the pr ogramme and added components to it.  The total 
package had gone up to US$13 million, most of whic h would be used to strengthen the standards 
institutions which would be key in future for e xports from the LDCs.  He said that strengthening 
institutions such as the leather and textiles technology institutions in his country would be key for the 
development of his country's exports.  There were other LDCs that were developing programmes with 
UNIDO.  He urged UNIDO to stre ngthen its programmes for the LDCs .  In conclusion, he thanked 
UNIDO for mainstreaming trade into its programmes. 
11. The representative of Senegal
 made two observations on the presentation made by the 
representative of UNIDO.  First, he commended the partnership approach taken by UNIDO in trade 
capacity-building programmes.  All of the agen cies involved with trade should follow a similar 
approach.  He underlined the importance of achievi ng delivery of programmes.  Second, he requested 
the representative of UNIDO to provide him w ith more information on the status of the 
quality-control programme for West Africa.  Finally, he sought further clarity on the exact timing and venue of the Ministerial Meeting of the LDCs scheduled for December 2007. 
12. The representative of Rwanda
 expressed appreciation for the presentation made by the 
representative of UNIDO.  He emphasized the ne ed to overcome the challenges which UNIDO had 
coined as the "three Cs":  (i) to Compete;  (ii) to Conform;  and (iii) to Connect.  He associated 
himself with the statement by Bangladesh, made on behalf of the LDCs.  He said that market access opportunities on paper would not help increase the partic ipation of LDCs in world trade.  Effective 
utilization of opportunities was important.  The LDCs lacked production capacity and exportable 
products.  Even where the capacity was available, the LDCs had faced problem s of selling products in 
international markets due to standards.  He supported the approach taken by UNIDO in trade 
capacity-building programmes.  Assistance in improving productive capacity of LDCs was key to taking advantage of opportunities available in wo rld trade.  He underlined the importance of 
coherence in trade-related technical assistance wh ich would allow organizations working on trade 
matters to focus on their comparative advantage.  For instance, the expertise of UNIDO could help 
LDCs build capacity in compliance of standards a nd to build industries.  He said that UNIDO had 
been enjoying an observer status at the Integr ated Framework Steering Committee (IFSC), which was 
the highest decision making body of the Integrat ed Framework (IF).  He hoped that UNIDO would 
make the effort to be present at all future meetings of the IFSC, so that it could hear the experiences of 
the LDCs.  He would welcome UNIDO as a full member  of the IFSC.  He hoped that the relationship 
between his country and UNIDO woul d be further strengthened.  He  expressed appreciation for the 
statement made by the Director-General of UNIDO  at the High-Level Meeting on Cotton held in the 
WTO from 15 to 16 March 2007. 
13. The representative of Zambia
 associated himself with the statement made by Bangladesh, on 
behalf of the LDCs.  He noted that UNIDO had been helping many LDCs.  He, however, could not 
find his country in the list of activities for LDCs  presented at the meeting.  He hoped that the 
cooperation of UNIDO with the Government of Zambia would increase in the days to come. 
14. The representative of Uganda  associated himself with the statement made by Bangladesh, on 
behalf of the LDCs.  He noted from the presen tation that his country was not among the LDCs 
benefiting from UNIDO's current assistance programmes.  He recalled the contribution of UNIDO in the leather sector of his country.  He expressed concern over the current inactive status of UNIDO 
programmes in his country.  He underlined the n eed for UNIDO to fill the gaps in supply-side 
capacity building and in the area of standards.  One of the major problems facing the LDCs was their 
difficulty in conforming to standards.  Conforming  to standards was a reality that all LDCs would 
have to acknowledge.  In this regard, the assistance  of UNIDO was vital so as to enable the LDCs to 
export products to developed country markets.  He requested the assistance of UNIDO to help 
strengthen his country's Bureau of Standards.  He emphasized the need for an  effective participation  WT/COMTD/LDC/M/46 
 Page 5 
 
 
  of UNIDO in Aid for Trade.  UNIDO should identify priority sectors for LDCs enabling them to 
benefits from Aid for Trade.  He also hoped that UNIDO would be able to participate effectively in 
the enhanced IF. 
15. The representative of Lesotho  associated himself with the statement made by Bangladesh, on 
behalf of the LDCs.  His country did not feature in the list of activities for LDCs presented by the 
representative of UNIDO.  He, however, expressed appreciation to UNIDO for the work undertaken 
and planned for the LDCs.  He was keen to ha ve information on the effectiveness of the work 
undertaken by UNIDO.  
16. The representative of Cambodia  associated himself with the statement made by Bangladesh, 
on behalf of the LDCs.  He expressed appreciati on for the presentation made by the representative of 
UNIDO, as well as the support of UNIDO for his country, in particular for its contribution in drafting 
the standards law in Cambodia. 
17. The representative of Brazil  highlighted the need to achie ve coherence in international 
economic policy making, and the need for co mplementarities between the WTO and other 
international organizations.  While the WTO Member s had been seeking to lower trade barriers, the 
new opportunities would not bear fruits if supply-side constraints were not tackled.  He was intrigued 
to hear from the presentation by the representative of UNIDO that the amount of trade losses that 
could accrue from lack of compliance could be enor mous, and that the amount of resources devoted to 
assistance in that area were meagre compared to the losses.  In this regard, he drew the attention of 
Members to the amount of resources dedicated to agri cultural subsidies that had been distorting global 
trade.  Subsidies in agriculture were three or four times higher than the amount dedicated to Overseas 
Development Assistance (ODA).  With regard to the Aid for Trade initiative, he noted that one of the 
challenges of the Task Force on Aid for Trade was to  carry out needs assessment on a regional basis.  
In this regard, he posed a question on how techni cal assistance should be targeted to a region if a 
country's development strategies were drafted on a national basis.  He also wished to know how 
UNIDO had been helping to integrate produc tion chains among the neighbouring LDCs.   
18. The representative of UNIDO  underlined the need for the ag encies to work together in a 
systematic manner.  There was a need for more advo cacy to meet the needs in the area of compliance, 
although notable work had been done in this area.  He recognized that the division of labour at a 
regional level could be important .  However, development of supply-side capacity was a complex 
issue.  Equally difficult, was to develop production chains on a regional basis, in particular among the 
LDCs.  He took the example of the countries in the West African Economic and Monetary Union 
(UEMOA) to illustrate that intra-regional trade was minimal among these countries.  Therefore, 
enhancing production and trade on the basis of intra-regional relations was complicated and represented a formidable challenge.  He further ela borated that there could be technical centres or a 
metrology laboratory in one country serving a par ticular region.  However, the problem was of 
transport logistics.  It was difficult to ship sa mples from one country to another in a region where 
transport logistics were not easy.  This problem was valid for the West African countries.   
19. He pointed out that it was difficult to establis h a cause and effect relation in the context of 
trade capacity-building programmes.  For instance, it would be difficult to attribute an increase in 
exports to a particular trade capacity-building pr ogramme.  However, a clear cost-benefit relation 
could be established in the case of upgrading of labo ratories towards international accreditation.  In 
this regard, an in-depth case study had been undert aken for Sri Lanka and could be replicated for 
other countries.  He explained that investment s made to set up laboratory infrastructure with 
international accreditation could save on testing costs, and the costs incurred in that investment could 
be recovered in three to four years.   WT/COMTD/LDC/M/46 
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  20. He went on to say that UNIDO had worked with the Government of Uganda in the upgrading 
of its laboratories for international accreditation and had helped the Bureau of Standards in Uganda.  
UNIDO had also assisted Uganda during the challenges faced by the country in exporting fish from Lake Victoria to the EU markets.  Following th e Diagnostic Trade Integration Study (DTIS) of 
Zambia undertaken under the IF, UNIDO had establis hed contact with the World Bank to develop a 
programme in Zambia.  UNIDO had also extended support to Rwanda to build up the standards and 
conformity infrastructure.  Moreover, UNIDO had started a new regional programme for the East African community on upgrading and harmoni zation of the compliance infrastructure.  At 
present, the programme would cover three countries namely Kenya, Tanzania and Uganda.  Burundi 
and Rwanda also expressed interest to be included in the programme.  Donors, in particular Norway, 
had expressed its readiness to support the progra mme, which would allow to include Burundi and 
Rwanda.  With regard to UNIDO programmes in West Africa, he said that a programme for the 
UEMOA countries amounting to US$12 million had been financed by the EU targeting, inter alia , 
quality promotion.  That programme had been completed at the end of 2006.  UNIDO had also approved programmes with UEMOA and non-UEM OA countries of the Economic Community of 
West African States (ECOWAS) as well as Mauritania amounting to a total of US$14 million.  This 
programme was expected to be approved by the EU by the middle of the year.  UNIDO would set up a mechanism with a view to preparing the work plan  for this programme involving 16 countries.  If 
funds were approved by the middle of the year , UNIDO would be able to enter into the 
implementation mode of the program me.  In conclusion, he informed Members that the Ministerial 
meeting of the LDCs in Vienna  would take place immediatel y before the UNIDO's General 
Conference to be held from 3 to 5 December 2007. 
21. The representative of Rwanda
, in response to a comment from the representative of UNIDO, 
clarified that his country had recently become a fully fledged member of the East African 
Community.  He thanked the Government of Norw ay for its support for UNIDO programmes in the 
East African Community. 
22. The Chairman  thanked all delegations for their particip ation.  He said that the presentation by 
UNIDO had been useful and constructive.  UNIDO ha d been continuing its efforts to increase trade 
capacity of the LDCs.  He encouraged the LDCs to  make the best possible use of the assistance that 
had been made available to them by UNIDO.  He noted that a large number of LDCs, whether 
represented in Vienna or not, had cooperation arrang ements with UNIDO.  He encouraged the LDCs 
to obtain additional information from the representa tive of UNIDO during his stay in Geneva.  He 
said that the IF provided additional possibilities for cooperation.  It was up to the LDCs to identify 
their implementing partner in implementing the activ ities listed in the DTISs undertaken under the IF 
process.  He recalled that a Memorandum of Understanding between UNIDO and the WTO was signed in 2003.  He emphasized the need for UNIDO  to become more involved in the trade capacity 
building in a regional context.  Regional and sub-regional dimensi ons had assumed new importance in 
trade, and the potentials of regional and sub-regiona l trade could be further explored.  The EU had 
intended to further that dimensi on through economic partnership agreem ents (EPAs) that were being 
negotiated with the African, Caribbean and Paci fic (ACP) countries.  He proposed that the 
Sub-Committee take note of the presentation by UNIDO as well as of the statements made. 
23. It was so agreed
. 
(ii) Trade-related Technical Assistance and Capac ity-Building Initiatives for Least-Developed 
Countries 
- WTO Technical Assistance and Training to the Least-Developed Countries, including 
in the Area of the Doha Work Programme  WT/COMTD/LDC/M/46 
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  24. The Chairman  recalled that according to the WT O Work Programme for the LDCs, the 
Sub-Committee was required to monitor technical-assis tance support provided to the LDCs.  Pursuant 
to this mandate, the Sub-Committee had been consid ering this item since the adoption of the Work 
Programme.  He invited the representative of the Institute for Training and Technical Cooperation 
(ITTC) from the WTO Secretariat to provide the meeting with a briefing on the WTO technical 
assistance and training to the LDCs, including in the area of the Doha Work Programme. 
25. The representative of the Secretariat  recalled that the WTO Technical Assistance and 
Training Plan (TA Plan) was the basis for the Secret ariat's technical-assistance activities.  The latest 
Plan is contained in document WT/COMTD/W/151.  He recalled that a strategic review of WTO 
trade-related technical assistance activities (TRTA) was undertaken last  year, that had led to a number 
of recommendations.  Many of those recommendati ons were of a practical nature and had been 
integrated into the TA Plan.  He said that the TA Pl an was designed to enable the Secretariat to pursue 
key objectives mandated by Members in a coherent and cost-effective fashion.  The key objectives 
were to:  (i) enhance institutional and human capaci ty in beneficiary countries to address trade-policy 
issues and concerns;  (ii) mainstream trade into na tional development and pove rty-reduction policies;  
(iii) facilitate fuller participation of beneficiari es in the multilateral trading system (MTS), and to 
allow their effective participation in the negotiations .  All of these objectives were reflected in the TA 
Plan with a clear relation to the Doha Developm ent Agenda (DDA) negotiations and the decisions 
adopted since the Doha Ministerial Conference in 2001.  The DDA recognized that technical 
assistance and capacity building were core elements of the development dimension of the MTS.   
26. He pointed out that the TA Plan had emphasized the need to accord special priority to LDCs 
in light of their pressing trade development needs.   This priority was being articulated through 
specially designed events for the LDCs.  For benefici aries of the IF, the activities were being linked to 
their processes of mainstreaming trade into their na tional development plans.  The main challenge for 
the Secretariat was to assist LDCs to integrate in to the MTS and to benefit from progressive trade 
liberalization in world trade.  Another challenge was to assist LDCs to enable them to participate fully 
in the DDA negotiations.  
27. He said that Members would shortly receive an annual report on technical assistance and 
training for 20061, which would provide detailed informati on on the Secretariat's TRTA activities.  
The Secretariat's main objective was to build lo ng-lasting human and institutional capacity and to 
enhance ownership by the beneficiaries.  In this regard, the Secretariat had tried to develop products 
tailored to the needs of the recipients.  The Secretar iat had also been trying to apply flexibility for the 
beneficiaries in the delivery of Secretariat's assist ance.  The LDCs were entitled to benefit from three 
national activities per year as opposed to two for ot her developing countries.  This limitation of 
national activities was mainly due to scarce human and financial resources.  There was also a natural limit to TRTA activities that could be undertaken by the Secretariat in any given year, and also in view of available absorption capacity in beneficiary countries.  He said that the Secretariat had been 
working hard to prepare a webpage, which would be an integral part of the WTO website and would 
be operational in the next few months.  This woul d provide direct access to information regarding the 
Secretariat's TRTA activities.   
28. He went on to say that the LDCs could also  benefit from an event called "Geneva Week", 
which was being organized for the non-resident Members of the WTO to brief them on the state of play of work and work processes in the WTO.  The Secretariat in 2006 had conducted a total of 
486 activities that included national, regional and Geneva-based activities.  Since these activities were 
different in nature and length, spa nning one day to 12 weeks, the S ecretariat had introduced the notion 
of participation days.  The Secretariat had undertak en a total of 30,000 participation days in 2006.  
The Secretariat had undertaken 178 activities for African countries, representing 37 per cent of all 
                                                     
 
1 Later issued as WT/COMTD/W/157. WT/COMTD/LDC/M/46 
Page 8  
 
  TRTA provided to Members.  That was the highest percentage in terms of regional distribution.  
Forty-four per cent of all TRTA activities was geared towards the LDCs.  That meant that out of 486 activities, 212 activities were directly to the be nefit of LDCs.  Ninety-nine activities at the 
national level had been held in 2006.  In additi on to this, regional seminars, workshops and other 
training events had been held.  In terms of percen tage and numbers, the LDCs had been covered well.  
Different programmes designed for the LDCs included:  the IF, Joint Integrated Technical Assistance 
Programme (JITAP), Introduction Courses for the LDCs, "Geneva Week", the Reference Centres 
programmes allowing LDCs instant access to WTO -related trade information, Internship 
Programmes, including the Netherlands Trainee Programme (NTP), support to LDCs in assessing 
their needs for technical-assistance requirements.  He added that the NTP had been in operation for 
one and a half year.  Forty participants so far ha d benefited from the NTP, out of which 29 were from 
the LDCs.  In terms of percentage, three quarters of trainees in the NTP were from the LDCs, 24 from 
Africa and five from acceding LDCs.  Under the mission internship programme, 22 mission interns 
had benefited in 2006, out of  which 13 were from the LDCs. 
29. The representative of Bangladesh
, on behalf of the LDCs, appreciated the efforts of the 
Secretariat to continue to attach priority to the LDCs in the delivery of its technical assistance.  He 
said that as there was no document under this item to  which he could address specific comments, he 
would be making some general comments on TRTA and capacity building.  He said that providing 
technical assistance to developing countries and to the LDCs was a core mandate of the WTO.  The 
Doha Ministerial Declaration laid special emphasis on this.  The experience with the implementation 
of WTO's TRTA had offered some perspectives fr om the LDCs.  He said that the main mode of 
WTO's technical-assistance delivery was in the form  of workshops, seminars and training courses.  
The trade policy courses at Geneva or in th e region had been helping LDCs understand WTO 
agreements and the subjects under DDA negotiati ons.  The Introduction Courses designed for the 
LDCs were particularly helpful.  What was now ne eded was specialized and advanced training for the 
LDCs.  The Secretariat could consider organizing tw o to three specialized training courses per year on 
specific topics for LDCs.  He underlined the importa nce of building long-lasting institutional capacity 
in the LDCs to undertake systematic and sustained tr ade-related research.  The training given to LDCs 
had enabled them to increase their participation in  the negotiations.  However, significant challenges 
remained in terms of developing endogenous cap acity to submit negotiating proposals on issues of 
interest to LDCs.  The understanding from the training courses should enable LDCs to find a way to submit proposals in the negotiations, on a regular b asis.  The national institutions in LDCs should 
develop capacity to undertake analysis and research  so as to support negotiations in Geneva.  He 
emphasized the need to strengthen national training institutions as well as academic institutions in the 
LDCs.  He requested the Secretariat to involve mo re institutions from LDCs in the delivery of its 
technical assistance.   
30. He went on to stress that technical assistan ce should be demand driven.  Each LDC was 
making an effort to identify its needs in th e on-going negotiations.  The DDA negotiations had 
imposed a heavy workload beyond the capacity of  resource-constrained LDCs.  With the DDA's 
changing focus and substance, it was difficult to keep track of areas where attention was required.  He requested a more proactive approach from the Secret ariat in identifying, on a regular basis, the areas 
where the LDCs would require attention in the negotiations.  The WTO's technical assistance should 
help Members implement the WTO agreements, and e nhance participation in the negotiations with a 
view to drawing benefits from the rules-based mu ltilateral trading system.  This might not necessarily 
increase LDC exports, unless they receive adequate s upport to address their supply-side needs.  It was 
here that sufficient attention was required.  Th e WTO had assumed a role of advocacy in reaching out 
to organizations and institutions to  facilitate assistance for the LDCs  so that they could reap the 
benefits of negotiations.  It also had a coordina tion and coherence mandate.  He underscored the need 
to find a holistic way of reviewing the technical-a ssistance and capacity-building initiatives taken by 
different organizations in the area of trade.  In addition to a forum for in formation exchange, there 
should be better ways of tracking assistance contribu ting directly to the promotion of LDC exports.   WT/COMTD/LDC/M/46 
 Page 9 
 
 
  He appreciated the internship programme deve loped over the past few years which had proved 
effective in building capacity of government offi cials.  There was no alternative to hands-on 
experience.  He thanked donors, in particular the G overnment of Netherlands, for their support to this 
programme.  He hoped that this programme  would be strengthened further.   
31. He said that according to the TA Plan, the LDCs were entitled to have three national 
technical-assistance activities per year, as against onl y two for developing countries.  It was found that 
the LDCs were not fully utilizing these opportunities.   One of the reasons for such underutilization 
was the local cost associated with  these activities.  In this regard, the WTO Secretariat only financed 
the cost of the staff's participation in the na tional technical-assistance activities.  All other 
arrangements including logistics were made by the host governments.  Costs incurred in these 
activities were acting as a deterrent for the LDC govern ments in requesting such assistance.  He urged 
Members as well as the Secretariat to give priority to  this area, so that such activities could be fully 
funded from WTO resources.  In conclusion, he drew  attention to the Secretariat's annual technical 
assistance reporting framework.  He pointed out that the WTO did not have a tradition of reporting separately on LDC activities.  The technical assistan ce undertaken in favour of LDCs was integrated 
into the Secretariat's global annual report.  This had limited qualitative assessment of activities carried 
out for the LDCs.  He urged the Secretariat to start the practice of preparing annual technical 
assistance reports exclusively for the LDCs, as an annex to their annual reports.   
32. The representative of Tanzania
 associated himself with the statement made by Bangladesh, on 
behalf of the LDCs.  He then highlighted the expe rience of his delegation in two areas.  He recalled 
that the LDCs were granted extension of the tran sition period under Article 66 of the Agreement on 
Trade-Related Aspects of Intellectual Property Rights (TRIPS) until 1 July 2013.  This was in 
recognition of financial and administrative constraint s that the LDCs continue d to face.  During this 
transition period, with a view to facilitating target ed technical and financia l cooperation programmes, 
the LDCs were required to provide to the Council fo r TRIPS information on their individual priority 
needs for technical and financial cooperation, befo re 1 January 2008, in order to assist them to 
implement the TRIPS Agreement.  Furthermore, in order to assist the LDCs to draw up this 
information with a view to making technical assistance and capacity building effective and 
operational, it was indicated that the WTO would seek to enhance its cooperation with the WIPO and 
with other relevant international organizations.  So  far, his country had benefited from two workshops 
regarding the Agreement on TRIPS.  The WTO Secr etariat had been trying to develop products to 
meet the needs of beneficiaries.  Second, in the area of Trade Facilitation, the authorities in Tanzania 
had missed an opportunity of organizing an event with the World Bank and the World Customs 
Organization on Trade Facilitation, as his authorities had not been able to meet the logistical arrangement.  These costs were not budgeted for countries such as his.  It was also difficult to gather 
all relevant stakeholders.  He emphasized the importance of Trade Facilitation for his country, which 
was also landlocked.  His delegation was of the view that whenever there would be a technical 
assistance in the form of workshops or seminars, de legations should be given the chance to contribute 
in the preparation of the programmes. 
33. The representative of the United States
 said that she was pleased to see the developments of 
WTO's TRTA activities over the past five years.  The depth of the participation of the LDC Group in the negotiations had improved.  The IF process ha d helped build knowledge of the LDC issues, in 
particular on issues where the challenges lay for the LDCs.  One of the challenges in the context of 
WTO's technical assistance was how to ensure th at the LDCs could avail themselves of the three 
national activities they were entitled to each year.  She noted that there was an overall increase in 
numbers of technical-assistance activities.  In this regard, the Coordinator of LDCs had outlined some 
of the constraints faced by the LDCs.  The Secretar iat in the past had encouraged the LDCs to make 
requests for such activities.  She requested that the Secretariat inform the Sub-Committee whether 
there had been an appreciable increase in the request s from the LDCs to avail themselves of the three 
national activities. WT/COMTD/LDC/M/46 
Page 10  
 
  34. The representative of Madagascar
 associated herself with the statement made by Bangladesh, 
on behalf of the LDCs.  Her count ry had benefited from the technical  assistance provided by the WTO 
Secretariat.  She hoped that donors would continue to contribute to enable the WTO Secretariat to carry out its technical-assistance activities. 
35. The representative of Zambia
 thanked the Secretariat for the report made on TRTA and 
capacity-building initiatives for LDCs.  He asso ciated himself with the statement made by 
Bangladesh, on behalf of the LDCs.  The LDCs atta ched high importance to the provision of technical 
assistance to developing countries, which was a ke y area of the Doha Round of negotiations.  The 
current modes of delivery of technical assistance had,  to a large extent, been useful for the LDCs.  
There was, however, scope for improvement, given the growing demands triggered by the expanding 
trade agenda.  He said that in the area of ins titutional capacity building, the internship programme 
support, in particular the NTP, had had meaningful  and lasting benefits in the public sectors of 
participating countries.  He urged developed countries to strengthen this programme.  Challenges still 
remained in terms of developing sufficient capacities vis-à-vis  the increased demands for high calibre 
of technical expertise in trade as well as in ensuri ng sustainability.  He reiterated the need to make 
technical assistance tailored to assist the LDCs in the implementation of obligations under the WTO 
to ensure that the LDCs draw be nefits from the multilateral trading system.  In this regard, it was 
important that such assistance not only provided lega l and institutional suppor t, but also focussed on 
adequate support to address issues  relating to supply-side constrai nts.  He commended the WTO and 
other partners on the technical assistance provided in  the area of Trade Facilitation, which had proved 
useful.  He also commended the WTO initiative to have a dedicated website providing information on 
the technical assistance activities.  At  the same time, he underlined th e need to continue the current 
practice of regular reporting by the Secretariat on the WTO's technical assistance activities. 
36. The representative of Uganda  associated himself with the statement made by Bangladesh, on 
behalf of the LDCs.  He then highlighted a few point s.  First, in the context of national activities, he 
underlined the need to cover the cost of local e xpenses, in particular meeting rooms in the host 
country.  He said that a number of LDCs were not capable of providing meeting rooms conducive for 
a meeting.  Second, he emphasized the importanc e of making the regional programmes more focused, 
specially in view of increasing demand on the co untries.  Since most countries had been forming 
positions on the basis of regional groupings, it wo uld be important that regional programmes be 
developed, in particular targeting the policy makers.  For instan ce, a programme was being considered 
for parliamentarians from East African countries who needed to be educated on WTO matters.  That 
would help ensure support from parliamentarians on trade matters.  Targeted regional programmes 
should be incorporated into the TA Plan.  Third,  he supported the point made by the delegation of 
Tanzania on TRIPS.  The decision on the extension of the transition period for LDCs under Article 66.1 provided a mandate to the WTO Secretar iat to team up with the WIPO to identify the 
needs of LDCs to implement the TRIPS Agreement.  In this regard, he noted that there had been one 
mission from the WTO Secretariat to his country.  He  emphasized the need for coherence between the 
WTO and the WIPO so that these institutions work  together to identify the needs for LDCs in 
implementing the TRIPS agreement.  Some of the LDCs were not able to identify  such needs.  In this 
regard, he requested that the WTO Secretariat assist  the LDCs in working out an implementation plan 
for the LDCs so that the LDCs coul d prepare towards TRIPS compliance. 
37. The representative of the European Communities
 expressed appreciation for the technical 
assistance provided by the WTO Secretariat, and its continued efforts to respond to the needs of the 
LDCs.  He stressed that technical assistance should be  demand driven.  He also noted that some LDCs 
needed help to articulate their requests for support.   The Secretariat, within its mandate, had been 
helping the LDCs in the process of identifying and pr ioritizing their needs, bearing in mind that this 
task was the prime responsibility of the beneficiary c ountries.  He requested the Secretariat to clarify 
whether the figure for national activities referred to by the Secretariat in its presentation was for the 
LDCs or represented the total number of national ac tivities for all countries in 2006.  He would also  WT/COMTD/LDC/M/46 
 Page 11 
 
 
  welcome information on the global figure for nationa l activities.  He noted a number of important 
concerns and needs expressed by the LDCs at the meeting.  He acknowledged the need to help LDCs 
identify policy priorities across the DDA negotiati ons, support for trade facilitation and assistance to 
meet SPS and technical barriers to trade (TBT) re quirements.  He wondered whether the WTO TA 
Plan was the best vehicle to achieve the nature of  assistance being sought by the LDCs in some of 
these areas.  For instance, in the area of SPS and TB T agreements, the Secretariat could explain the 
obligations and rights of LDCs under those agreements, but it might not be in a position to look at 
issues of pest and disease control or to help with testing techniques.  There were other organizations 
such as UNIDO, the ITC and bilateral donors, which c ould fill the gap in this regard.  The IF process 
could consolidate and prioritize the needs of LDCs in these areas and could help deliver projects.  He 
reminded the LDCs of the limitations of the WTO TRTA in addressing the needs of the LDCs.  He 
hoped that the discussions in the context of Aid fo r Trade initiative could address some of the needs 
of LDCs. 
38. The representative of Lesotho  associated himself with the statement made by Bangladesh, on 
behalf of the LDCs.  He underscored the need fo r strengthening the current efforts to build up 
capacity in the LDCs so as to ensu re that the LDCs develop a critical mass of capacity at various 
levels of bureaucracy.  A deeper and wider appro ach would enhance the probability of sustainability 
of trade-related expertise in the bureaucracy.  He un derlined the importance of training of trainers at 
national and regional level so that the capacity build ing could be domesticated and its effect could be 
sustained through the system.  Consideration should be given to collaborating with relevant regional 
and national institutions in trade capacity building, in particular to prepare the LDCs to tackle the 
post-Doha work.  He appreciated the internship programmes of the Secretariat, which had been 
proved effective.  He hoped that additional fu nding would be available to strengthen these 
programmes.  He also underlined the importance of on the job training to develop capacity on trade matters.  He was keen to know more about the e-lear ning programme of the Secretariat, in particular 
how it was doing in the context of LDCs given that  the internet connectivity was not high in the 
LDCs. 
39. The representative of Cambodia
 thanked the Secretariat for its comprehensive report.  He 
associated himself with the statement made by Banglad esh, on behalf of the LDCs.  He reiterated that 
the delivery of technical assistance should be demand driven.  He stressed that technical assistance 
should be provided in a sustainable manner.  He appreciated the main mode of WTO's technical 
assistance delivery, which had been in the form of  workshops, seminars, training courses and others.  
He sought the advice of the WTO Secretariat if it could sponsor capital-based representatives of LDCs 
to attend some important negotiati ng group meetings.  This might help increase the participation of 
LDCs in the DDA negotiations. 
40. The representative of Canada  thanked the Secretariat for its informative presentation.  He said 
that the strategic review of the WTO's TRTA activ ities undertaken last year had clarified areas where 
the WTO Secretariat could add value to trade capacity building in developing countries.  He urged the 
Secretariat to focus on its TRTA activities based on that  review and to work in  partnership with other 
organizations.  The IF had provided a mechanism wh ereby the LDCs could prioritize their objectives 
and needs at the local level and could translate those into appropriate demands to the WTO and other technical assistance providers.  He extended suppor t to the point made by the Coordinator of the 
LDCs for the use of local experts and local institu tions wherever possible in WTO activities.  While 
noting the progress made in this regard, he underlin ed the need to further intensify it so as to 
strengthen endogenous capacity in the LDCs. 
41. The representative of the Secretariat
 responded to the issues raised and questions posed to the 
Secretariat.  He thanked all Members which had expressed support for the Secretariat's work in favour of LDCs.  The remarks from the Coordinator of  the LDCs were thoughtful and required further 
reflections.  He noted that some of the issues raised  were not for the Secretariat to decide upon, and WT/COMTD/LDC/M/46 
Page 12  
 
  needed to be addressed in the wide r context in consultation with the donors.  He then clarified some 
issues of a specific nature raised at the meeting.  With regard to the number of national activities, he 
reiterated that 99 national activities were undertaken in favour of the LDCs in 2006.  The LDCs were 
associated with 212 activities which represented 44 pe r cent of all TRTA provided.  In response to a 
question from the representative of Lesotho concer ning e-training, he said that there had been a 
300 per cent increase in the e-training mode in 2006 compared to 2005.  A total of 685 participants 
had benefited from e-learning in 2006 compared to 173 in 2005.  The Secretariat would continue to 
expand the e-learning mode in various ways and more  information on this would be provided in due 
course, including the annual report on technical assi stance and training.  He underlined the need for 
disseminating information through electronic means,  which might be efficient, as it would reduce 
travelling to countries.  He indicated that a con scious attempt had been made to cooperate with 
regional training centres and academics to enhance th e delivery of assistance provided to the LDCs.  
Concerning the specific question from the representa tive of Uganda to undertake a regional activity 
for parliamentarians, he said that it was being ac tively considered.  He then responded to a few 
observations made by the representative of Bangladesh , on behalf of the LDCs.  He said that the 
Secretariat would consider providing more speciali zed training to the LDCs on issues relating to DDA 
negotiations.  Questions remained on what would be th e best way of doing it.  He pointed out that it 
was easier to organize such an activity for Geneva-b ased participants, which had been cost-effective.  
In this regard, he drew the Members' attention to  the critical financial situation of the Global Trust 
Fund.  With regard to associating regional and nati onal training institutes and academic institutions in 
the delivery of WTO's technical assistance, he info rmed Members that regional trade policy courses 
had been including increasing numbers of regional academics.  In certain cases, five or six professors 
or academics from LDCs had participated in trade policy courses organized in the African region.  The Economic Research and Statistics Division in  the Secretariat was expanding joint research 
programmes involving the academics, and PHD students were also being associated with WTO activities.  He noted that some LDCs were not in a position to identify thei r technical-assistance needs 
in the negotiations.  In this regard, he reiterate d that the delivery of the Secretariat's technical 
assistance was demand driven.  Th e participants under the NTP, inter alia , had worked to identify the 
needs of their countries in the negotiations.  The Secr etariat had been trying to promote the integration 
of trade into national development strategi es through programmes such as the IF.  Active 
collaborations were being pursued with other intern ational organizations.  For instance, Zambia was 
one of the countries included in the Joint UNIDO-WTO programme .  The WTO had been working 
with organizations such as UNIDO and ITC to address supply-side constraints faced by the LDCs.  
With regard to the request made by the LDCs fo r the Secretariat to cover costs relating to the 
organization of national activities, he said that such  activities were being financed through the regular 
budget, and the request from the LDCs would need to  be discussed with donors.  In this regard, he 
pointed out that the requirements on the host gove rnments for the organization of national activities 
were not much.  In conclusion, he noted the reque st from the LDCs to have a separate reporting on 
TRTA provided to the LDCs. 
42. The representative of Brazil
 said that during the strategic review of WTO's TRTA activities, 
his delegation had emphasized the need to pursue a stra tegic plan in order to ma ke it coherent with the 
Aid for Trade initiative.  For the Aid for Trade initiative to be implemented effectively, it was 
necessary to have an enhanced dialogue with diffe rent organizations.  He underlined the importance 
of pursuing activities according to the comparative a dvantage of respective organizations.  He noted 
that the WTO Secretariat had a comparative advant age in making LDCs acquainted with multilateral 
trade rules and to assist them in the negotia tions.  Supply-side assistance and trade-related 
infrastructure would be the scope and competence  of other organizations.  He invited the WTO 
Secretariat to focus on how it could make its future  technical-assistance activ ities compatible with the 
recommendations of the Task Force on Aid for Trade.  He requested the Secretariat to brief Members 
on the developments of the implementation of th e Task Force recommendations on Aid for Trade.  WT/COMTD/LDC/M/46 
 Page 13 
 
 
  43. The representative of Rwanda  said that regarding the request from the LDCs to cover 
logistical arrangements for national technical-assi stance activities, his delegation did not find any 
opposition from Members.  Therefore, he hoped that the consultations with the donors in this regard 
would be fruitful.  He looked forward to  a report on this issue at a later stage. 
44. The representative of the Secretariat  said that he was not in a position to provide a status 
report on the implementation of the recommendations from the Task Force on Aid for Trade.  He 
would transmit this question to relevant Divisions in the Secretariat so that they reply to the 
representative of Brazil at a suitable time. 
45. The Chairman  said that technical assistance and capacity building were core elements to make 
the multilateral trading system work.  It had assume d special significance in view of the DDA.  The 
LDCs were accorded special priority in the deliv ery of WTO's TRTA.  He encouraged the LDCs to 
make maximum use of the products offered by the Secr etariat.  In this regard, he underlined the need 
for the LDCs to fully utilize thei r entitlements available under the WTO TRTA.  He proposed that the 
Sub-Committee take note of the report by the Secretariat as well as of the statements made. 
46. It was so agreed . 
(iii) Market Access For Least-Developed Countries 
- Market Access Issues for Least-Developed C ountries in the Area of Trade in Services  
 
47. The Chairman  recalled that at the last session, the LD Cs had requested that the Secretariat 
undertake a study on the market access conditions fo r LDCs in the area of trade in services.  In 
response to the request from the Sub-Committee, th e Secretariat had prepared a brief note on this 
issue which had been circulated as JOB(07)/32.  Th e document presented certain issues of interest to 
LDCs in the area of trade in services.  He inv ited the Secretariat to introduce the document.  
48. The representative of the Secretariat  highlighted the main issues raised in the note.  He said 
that identification of market access conditions in  services sectors and modes of supply of export 
interest to the LDCs presented difficulties stemming primarily from lack of re liable and detailed data.  
He stressed that a reasonably comprehensive "marke t access" study would require the identification of 
at least four main elements:  (i) the major services products of export interest to the LDCs;  (ii) the 
modes of supply through which those services are actu ally "exported" or supplied overseas;  (iii) the 
main markets of export interest to LDCs;  and (iv) the relevant access conditions in developed and 
developing countries.  There was hardly any informati on or data available to allow the Secretariat to 
prepare a cross-country paper on market access for LD Cs in the area of trade in services.  The only 
services trade statistics available on a global basis came from Balance of Payments (BoP) sources 
which had been following the definitions of the IM F BoP Manual classification.  The identification of 
services activities in the IMF classification was not as disaggregated as the one Members were using to undertake commitments.  The IMF BoP statisti cs identified 11 categories of services, while 
services products identified for undertaking commitment s were 160 or even higher.  It might be seen 
from Table 1 of the note that the information on exports of commercial services from LDCs tended to 
be more incomplete than for other Members.   
49. He went on to say that information on trade flows under each mode of supply was incomplete 
in any event.  The General Agreement on Trade in  Services (GATS) define d trade in services under 
four modes of supply, and "exports" of services under the GATS included not only products crossing 
geographical boundaries but also services supplied overseas through establishment of legal entities 
(mode 3) or through movement of  natural persons supplying services  (mode 4).  There was no data 
available on the trade flows of mode 3 and mode 4 for many countries including LDCs.  In addition, the identification of individual export markets was virtually impossible, since information on trade in WT/COMTD/LDC/M/46 
Page 14  
 
  services did not contain information on bilateral trade flows.  It appeared that individual governments 
were in a better position to identify bilateral trade fl ows and to identify sectors of particular interest to 
their exporters.  He further pointed out that even  if exports of services from the LDCs could be 
adequately identified, information on the real ma rket access conditions for them was limited, since 
commitments undertaken by other Members could not be taken as indications of real market access 
conditions in specific countries.  This was due to two reasons.  First, sectoral coverage in most 
Members' commitments was incomplete, and second, sometimes there were gaps between 
commitments and actual market access conditions that services exporters might encounter.  
50. He noted that in the current round of negotia tions, the LDCs had identified mode 4 as one of 
the modes of supply which was of interest to  them.  The LDC Group had submitted a request 
contained in document JOB(06)/155, requesting othe r Members to undertake co mmitments in specific 
categories of persons and in specific sub-sectors.  He added that the Secretariat in several of its previous notes had described the access conditions for persons trying to supply services overseas 
under mode 4.   
51. He continued by saying that a narrow focus on exports for final consumption, for instance 
tourism, recreational, entertainment services, would provide a limited picture of the importance of 
service trade for individual countries.  Many servi ces, particularly "producer or infrastructural 
services", such as business, finance, telecommunicati on and transport services, might serve as inputs 
for a wide range of other economic activities and might be incorporated in the value of other merchandise exports.  Therefore, a focus only on direct exports of services would disregard these 
"incorporated" exports that might end up in merc handise exports.  In that perspective, both the 
manufacturing and the agricultural sectors might benefit from the liberalization of "producer or 
infrastructural services". 
52. The representative of Bangladesh
, on behalf of the LDCs, thanked the Secretariat for the note.  
He made some preliminary remarks on the note and re quested that the item be kept on the agenda of 
the next meeting.  He said that services accounted fo r an important share of GDP in many LDCs.  Yet, 
the LDCs had not been able to benefit from the growing services trade in the world.  The LDCs 
accounted for 0.4 per cent of world trade in comme rcial services in 2003.  He acknowledged the 
problems of data limitations by the Secretariat in undertaking a comprehensive study in the area of trade in services.  The question was how to overcome t hose limitations.  In this regard, he encouraged 
the Secretariat to take some innova tive steps.  For instance, the Secr etariat could look at the trade 
statistics of developed country  Members and could find out the figures for LDC exports using 
inverted trade flows.  He noted the point that  individual governments we re better placed to access a 
wide range of national data.  In th is regard, he said that his authorities could provide some data on the 
movement of natural persons.  He pointed out th at the World Bank had been conducting research in 
services trade and could also provide some data.  He underlined the importance of collecting and 
collating data from all possible sources. 
53. He continued by saying that LDCs had comp arative advantage only in a limited range of 
services products, and that it was important for th e LDCs to assess market  access conditions in 
developed and devel oping country markets.  It was clear from the note that it was difficult to assess 
the real market access conditions from the Members'  schedule of commitments.  He emphasized the 
need to enhance transparency in this regard.  He  said that the services negotiations were an important 
element of the Doha Round.  The GATS and all th at form part of the GATS negotiating architecture 
provided for special attention to be given to the sect ors and modes of supply of export interest to the 
LDCs.  The modalities for the special treatment for LDCs had mandated Members to develop a 
mechanism to provide effective market access to LDCs' services a nd services suppliers.  The LDCs 
had submitted a proposal in the negotiations with a view to operationalizing the concept of special 
priority under the framework of GATS.  He express ed concern that despite a clear mandate, Members  WT/COMTD/LDC/M/46 
 Page 15 
 
 
  were unable to move forward on this proposal.  This had also affected the progress in areas of interest 
to the LDCs. 
54. He expressed disappointment that there had vi rtually been no liberalization in sectors and 
modes of supply of export interest to the LDCs.  The economic literature was replete with examples 
of positive gains of mode 4 liberalization, both fo r sending and recipient countries.  These studies had 
not been able to convince the trading partners of LDCs to make any improvements for access to 
mode 4.  He noted that some of the Secretariat notes prepared in the past had described trade conditions applying to mode 4.  There had been a lack of understanding and lack of transparency on 
regulations that had been governing the supply of  services under mode 4.  Economic needs test, 
qualification requirements, recognition, disciplines on visa and entry procedures were examples that 
had created the confusion.  There was no multila teral understanding on the definition of different 
categories of natural persons supplying services unde r mode 4.  He pointed out that according to 
available reports, mode 4 accounted for less than  2 per cent of all services trade.  There was 
considerable scope for liberalization in this area, and the WTO Secretariat in its reports could provide 
further clarifications on these aspects. 
55. He noted that the LDC Group had made a coll ective request on mode 4 seeking commitments 
from Members for semi- or less- skilled persons th rough some common definitions in four categories 
of natural persons.  He hoped that Members w ould respond to this request by undertaking 
commitments in the identified categories in their revi sed offers.  He noted the point made in the note 
that the efficiency of the services  sector often determined economic performance in other sectors to 
which services were an input.  Reforms in certain se rvices sectors could contribute to the efficiency of 
manufacturing exports.  In fact, a modern and effi cient telecommunication sector was vital to taking 
advantage of outsourcing opportunities that might em erge as a vital trade via mode 1.  Many LDCs 
had undertaken autonomous liberalization in sectors of key economic importance such as finance and 
banking.  It had been established that without regulato ry control, such liberalization could be harmful. 
56. He requested the Secretariat to elaborate on a few elements that were not touched upon in the 
current note.  For instance, the Secretariat should throw some light on assessments carried out in the 
services sector in LDCs;  provide information on the kind of technical-assistance and capacity-building programmes undertaken by Member s to build domestic services capacity in the 
LDCs;  suggest ways on how to benefit from the va rious provisions agreed to by Members in the 
negotiations.  In conclusion, he said that the LDCs  attached high importance to the annual review of 
market access for products originating from LDCs.  He hoped that the Secretariat would be able to 
present the current year's review at the next meeting. 
57. The representative of Brazil
 said that the note lacked information on the importance of joint 
ventures for LDCs in the area of trade in servic es.  He noted that following the adoption of the 
modalities for the special treatment of LDCs in  the services negotiations, Members had imposed 
self-restraint in seeking market openings in the LD Cs.  Preferential trade arrangements were being 
pursued by the LDCs for market access in trade in services.  It seemed to his delegation that the LDCs 
were in favour of abolishing joint ventures for mode  3 commitments.  Joint venture requirements were 
deemed to be one of the barriers for trade in services.  This, according to his delegation, would 
underestimate the potential of joint ventures to incr ease capacity and develop the potential for service 
exports from the LDCs.  The association with fore ign companies in LDC territories through joint 
ventures could help them raise capital, to receive technology and to improve business skills.  It could 
also open windows of opportunity for LDC officials to be transferred to home countries of investors 
as intra-corporate transferees and learn business prac tices directly from the home countries.  This 
aspect of trade in services could be further elaborated  by the WTO Secretariat in a revised note on this 
issue.  He supported the proposal of the LDC Coor dinator to have this note reviewed and updated 
with other aspects, and Members could benefit from th is kind of research in the context of discussions 
in the Council for Trade in Services in Special Sessi on.  He underlined that technical assistance in WT/COMTD/LDC/M/46 
Page 16  
 
  domestic regulation was key to the LDCs, since it would enable them not only to overcome 
supply-side constraints but would also contribut e in developing regulatory framework to import 
services. 
58. The representative of Canada
 said that his Government was committed to looking at ways to 
advance LDC interests in the services negotiations a nd to further provide opportunities to the LDCs to 
participate in the negotiations.  He noted the data  problems faced by the Secretariat in approaching 
this exercise.  In addition to the methodology su ggested by the representative of Bangladesh, it might 
be useful to directly approach national governments to collect data in this regard, since individual 
governments could be better placed to identify sectors of interest to them than outside bodies.  It had been noted in the Special Session of the Council for Trade in Services that significant benefits could 
be derived from all modes of supply.  In examinin g LDC services trade, it would be worthwhile to 
look at potential opportunities for LDCs through other modes of supply such as mode 1.  He also underlined the importance of looking at ways to develop best practices in the area of services 
regulations.  He made a referenc e to a room document that his de legation had co-sponsored jointly 
with the delegations of European Communities, Ja pan and the United States, which was tabled in a 
recent Special Session of the Council for Trade in Se rvices.  The document pr oposed a mechanism to 
assess the provision of special priority to sectors and modes of supply of export interest to the LDCs 
in the services offers of non-LDC Members.  The document, inter alia,  proposed that the Members 
submit reports indicating how their current offers ha d provided special priority to LDCs' interest in 
trade in services.  In response to the need for technical assistance in  the area of trade in services, he 
drew Members' attention to the ITC's programme of technical assistance in this area which had been 
expanded in recent years.  
59. The representative of the European Communities
 welcomed the note.  He supported the 
efforts made in overcoming the difficulties faced by  the LDCs in seeking market access for trade in 
services.  The note had highlighted some of the diffi culties arising from the lack of reliable statistical 
data.  It also touched on further work that coul d assist LDCs in identifying market access issues of 
interest to them.  He agreed with the fact that l ack of data presented difficu lties in identifying services 
of export interest for all Members in general and in  particular for the LDCs.  In response to requests 
made by the LDCs, his delegation had provided targeted technical assistance to a number of LDCs, in 
particular to the LDCs in the African region.  Th eir assistance, so far, had been focussed on assessing 
services sector in each LDC and analyzing the implications of GATS negotiations on them.  The projects had also assisted in developing awareness and in building capacity of small and medium 
enterprise service provider, of service associati ons, of government officials so as to support the 
services negotiations.  His delegation had also funded the trade and services technical-assistance programme of the ITC.  In cooperation with the gove rnments as well as the private sectors, these 
programmes had been carrying out assessments of trad e in services in developing countries.  Advice 
on negotiating strategies, based on these assessments, were also being provided to the developing 
countries.  He noted that the LDCs had been pu rsuing an ambitious approach with regard to a 
mechanism to operationalize Article IV:3 of the GATS.  In this regard, he referred to the mechanism 
proposed by the Quad which had been discussed in  the framework of the Special Session of the 
Council for Trade in Services.  His delegation was in close contact with the LDCs so as to bridge the 
gaps on this issue and find appropriate solutions.  He reiterated the continued commitment of his 
delegation in ensuring that additional measures for progressive improvements in market access for 
LDCs were considered, in line with paragra ph 42 of the Doha Ministerial Declaration. 
60. The representative of the Secretariat
 took note of the comments made at the meeting.  The 
Secretariat had consulted the Economic Research an d Statistics Division in preparing the note.  He 
then referred to a few avenues through which furt her information on LDC trade in services could be 
gathered.  The available trade policy reviews of LD Cs could be a source to supplement information on 
the LDC situation in the services sector.  In th is regard, assistance from the Trade Policy Review 
Division of the Secretariat had been requested.  On e proposal made at the meeting was to directly  WT/COMTD/LDC/M/46 
 Page 17 
 
 
  contact the governments in order to obtain relevant da ta.  To this effect, a possible channel could be 
the national services seminar conducted by the Secr etariat.  For instance, during past services 
seminars in Zambia and Uganda, the Secretariat ha d established contacts with appropriate government 
agencies and think tanks to pull together necessary in formation.  He reiterated the readiness of the 
Secretariat to assist in the organization of national services seminar in the LDCs.  He encouraged the 
LDCs to inform the Secretariat of relevant c ontacts in their respective governments and research 
bodies involved in the area of trade in services.  Th e Secretariat would try to help move forward the 
discussion with a possible follow-up note on this item in future meetings. 
61. The Chairman  said that services had been a rapidly expanding sector in most economies.  It 
had been playing an increasingly dominant role in the LDC economies as well.  At the Hong Kong 
Ministerial Conference, Members had reiterated their commitment to give priority to the sectors and 
modes of supply of export interest to the LDCs  in the services negotiations.  He hoped that the 
successful completion of the DDA would create more opportunities for LDCs in the area of trade in 
services.  In view of the comments made at the me eting, he proposed that the item be kept on the 
agenda of the next meeting.  He also proposed th at the Sub-Committee take note of the note prepared 
by the Secretariat, as well as of the statements made. 
62. It was so agreed . 
C. OTHER BUSINESS  
63. The Chairman  informed Members that the next meeting of the Sub-Committee was 
tentatively scheduled for late June 2007.  The ex act date would be communicated in due course. 
64. The Chairman  expressed gratitude to Mr. Campeas, Director of the Development Division, 
who would be retiring from service at the end of the month.   
65. The representative of Bangladesh,  on behalf of the LDCs, expressed gratitude to 
Mr. Campeas for his contribution to the WTO and to the Sub-Committee. 
66. The representative of the Secretariat (Alberto  Campeas, Director, Development Division ) said 
that the Secretariat had been attaching importance to  the issues of interest to the LDCs, particularly 
since the creation of the LDC Unit within the Development Division in 2003.  He had found 
discussions in the Sub-Committee enriching.  There had been some results in some  areas of interest to 
the LDCs.  The Sub-Committee had been implementi ng the WTO Work Programme for the LDCs.  It 
had also contributed in the adoption of the LDCs ' accession guidelines in 2002.  The LDCs had been 
working hard and had been particip ating actively in the WTO's regular work and in the negotiations.  
Efforts were continuing to help the LDCs in the ne gotiations.  It had been a pleasure for him to work 
with the LDCs.  In conclusion, he thanked the Ch airman and the Coordinator of the LDCs for their 
kind words to him.   
67. In the absence of any other business, the meeting was adjourned . 
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