RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/COMTD/M/77 
2 February 2010 
 
 (10-0533) 
Committee on Trade and Development 
Seventy-Seventh Session  
 
 
 
NOTE ON THE MEETING OF 8 DECEMBER 2009 
 
Chairman:  H.E. Mr. Shree B.C. Servansing (Mauritius) 
  
A.
 ADOPTION OF THE AGENDA .........................................................................................................2  
B. OBSERVERS ............................................................................................................................... ...2 
(i) Request for attendance of ad hoc observers ...............................................................................2  
(ii) Further consideration of the requests for observer status by the League of Arab 
States, the Organization of the Petroleum Exporting Countries (OPEC), the Gulf 
Organization for Industrial Consulting, the Organisation Internationale de la 
Francophonie, the Common Fund for Commodities, the Organization of Arab Petroleum Exporting Countries (OAPEC) and th e Groupe de la Banque Africaine de 
Développement.................................................................................................................. ..........2
 
C. NOTIFICATIONS UNDER THE ENABLING CLAUSE .........................................................................2  
(i) Gulf Cooperation Council (GCC) notification of Customs Union – statement by the 
Chairman ....................................................................................................................... .............3  
(ii) Generalized System of Preferences – notification by Switzerland 
(WT/COMTD/N/7/Add.3 ) ...............................................................................................................6  
(iii) Generalized System of Preferences – notification by the United States 
(WT/COMTD/N/1/Add.7 ) ...............................................................................................................7  
D. DECISION ON TRANSPARENCY FOR PREFERENTIAL TRADE ARRANGEMENTS ..............................8  
- GENERAL COUNCIL DECISION OF 14 DECEMBER 2006  (WT/L/672)................................................8  
- TRANSPARENCY MECHANISM FOR PREFERENTIAL TRADE ARRANGEMENTS – DRAFT   
PROPOSAL BY BRAZIL , CHINA , INDIA AND THE UNITED STATES (JOB(08)/103/REV.1) .................8  
E. ANNUAL REVIEW OF THE IMPLEMENTA TION OF THE HONG KONG DECISION ON DUTY -
FREE AND QUOTA -FREE MARKET ACCESS FOR LEAST -DEVELOPED COUNTRIES ..........................9  
F. PARTICIPATION OF DEVELOPING COUNTRIES  IN THE MULTILATERAL TRADING SYSTEM 
(WT/COMTD /W/172  AND WT /COMTD /W/172/CORR .1).................................................................11  
G. TECHNICAL COOPERATION AND TRAINING ................................................................................12  
- PREPARATIONS FOR THE IMPLEMENTATION OF THE TECHNICAL ASSISTANCE AND 
TRAINING PLAN FOR 2010  – ORAL INFORMATION BY THE SECRETARIAT ...................................12  
H. DRAFT ADDENDUM TO THE 2009  ANNUAL REPORT (WT/COMTD /W/171/ADD.1) ........................13  
I. OTHER BUSINESS .......................................................................................................................13  
 
 WT/COMTD/M/77 
Page 2  
 
  A. 
ADOPTION OF THE AGENDA  
1. The Chairman  said that the draft agenda for the 77th  Session of the Committee on Trade and 
Development (CTD) was contained in document WTO/AIR/3479/Rev.1 issued on 1 December 2009.  
2. The agenda was adopted . 
B. OBSERVERS  
(i) Request for attendance of ad hoc observers 
3. The Chairman  recalled that, at previous sessions of the CTD, Members had agreed to invite a 
number of intergovernmental organizations on an ad  hoc, meeting-by-meeting basis.  These included 
the Arab Maghreb Union (AMU), the Economic Co mmunity of West African States (ECOWAS), the 
Economic Cooperation Organization (ECO), the Inte r-Arab Investment Guarantee Corporation, the 
Islamic Development Bank (IDB), the African Union (AU), the Organization of the Islamic 
Conference (OIC), the South Centre, the Pacific Islands Forum, the United Nations Environment 
Programme (UNEP), the West African Economic and Monetary Union (WAEMU) and the World 
Intellectual Property Organization (WIPO).  He said th at, following the decision taken at the previous 
meeting of the Committee, the organizations had be en invited to the present meeting.  He proposed 
that the organizations be invited to the next formal meeting of the CTD. 
4. It was so agreed . 
(ii) Further consideration of the requests for observer status by the League of Arab States, the 
Organization of the Petroleum Exporting Countries (OPEC), the Gulf Organization for Industrial Consulting, the Organisation Int ernationale de la Francophonie, the Common 
Fund for Commodities, the Organization of Arab Petroleum Exporting Countries (OAPEC) 
and the Groupe de la Banque Africaine de Développement 
5. The Chairman
 said that at previous meetings, the Committee had had before it a number of 
requests for observer status.  He said that if there was no change in positions to extend observer status 
to any of those applicants, then the Committee would take note and would revert to those requests at 
the next meeting. 
6. It was so agreed . 
C. NOTIFICATIONS UNDER THE ENABLING CLAUSE  
7. The Chairman  said that he wished to provide Members with an update on the regional trade 
agreements (RTAs) notified under the Enabling Clau se that were to be considered in the CTD's 
Dedicated Sessions on RTAs.  He firstly recalled that he had indicated at the 76th Session that the 
Chile-India Agreement could not be considered in 2009, as India had not at the time provided the 
Secretariat with comments on the draft Factual Presentation.  Comments from India had now been 
received, and the Secretariat was working to finalize the Factual Presentation on the Chile-India 
Agreement.  It was envisaged that the Agreement c ould be considered in a Dedicated Session in the 
first quarter of 2010, though this remained to be confirmed.  Members woul d be kept informed of 
when the Chile-India Agreement woul d be taken up for consideration. 
8. He also recalled from his earlier interventi ons that there were three RTAs involving 
non-WTO Members that had been notified under the Enabling Clause, and that would need to be considered by the CTD meeting in Dedicated Session.  These were the South Asian Free Trade 
Agreement (SAFTA), the India-Bhutan Agreement and the Pacific Island Countries Trade Agreement 
(PICTA).  With regard to PICTA, since the Agre ement was apparently still to be ratified by some  WT/COMTD/M/77 
 Page 3 
 
 
  Parties, the Secretariat believed that it would be b est to wait for the Agreement to be in force for all 
the Parties before preparing the Factual Presentati on.  This was in line with the practice being 
followed in the Committee on Regional Trade Agreements (CRTA). As for SAFTA and the 
India-Bhutan Agreement, the status of data provisi on by the Parties concerned remained unchanged.  
For SAFTA, only data from Banglades h had been received, while the Secretariat had yet to receive 
any data concerning the India-Bhutan Agreement.  It was still envisaged that these two Agreements 
could be considered in a Dedicated Session of the CTD in May 2010, though this would only be possible if the Parties to the Agreements were able to provide the data soon.  
(i) Gulf Cooperation Council (GCC) notification of Cu stoms Union – statement by the Chairman 
9. The Chairman
 recalled that, at the 76th Session, he had outlined a possible way forward that 
had been conveyed to him regarding Members' c onsideration of the GCC Customs Union.  In 
particular, he had informed Members that th e Agreement had been re-notified under GATT 
Article XXIV, and that it would be considered in the CRTA.  The conclusion  of that consideration 
would then be reported to the CTD for informationa l purposes.  This process for the consideration of 
the GCC Agreement would be undertaken without pr ejudice to the rights and obligations of Members 
under GATT Article XXIV and the Enabling Clause.  On  this issue, he said that the CTD would need 
to wait until the consideration of the Agreement w as completed in the CRTA.  The CTD could then 
revert to the matter in order to be informed of the outcome of the CRTA's consideration.  
10. He next referred to the request that had b een made for an update to the Secretariat's 
Legal Note on Regional Trade Arrangements under  the Enabling Clause – circulated in 2003 as 
document WT/COMTD/W/114.  The request had been made in the CTD, and had also been 
communicated to him in writing by China, Egypt, In dia and Pakistan.  He inquired whether Members 
were agreeable to having the S ecretariat update its Legal Note. 
11. The representative of the United States  said that it was not clear to her delegation what the 
concerned delegations were reques ting be updated in the Legal Note, which provided a comparison of 
the provisions and practices applicable to GATT Article XXIV and the Enabling Clause prior to the 
establishment of the RTAs Transpar ency Mechanism (TM).  She observed that the letter the Chairman 
had received might make clear the scope and content of the proposed update.  In this light, she suggested that the letter be shar ed with the wider membership for future consideration under a 
separate agenda item.  She said that the US was not  in a position to agree to an update of the 
Legal Note at this time.  Before being a position to  discuss any update of the document, the US would 
require an explicit understanding from  the delegations that had made the request as to why the update 
was necessary, and what it was intended to reflect. 
12. The representative of the European Union
 said that his delegation also had certain doubts 
about the request for the update to the Legal Note. He indicated that the update could, in fact, be 
found in the RTAs TM.  In light of this, the EU  sought further clarification from the concerned 
delegations as to the need for an update to the Le gal Note, since the provisions in the RTAs TM were 
very clear. 
13. The representative of Australia  said that it was premature for the Committee to take a decision 
on whether to update the Legal Note.  She suggested  that the concerned de legations could provide 
more information on what they were seeking in requ esting the update.  A written explanation, perhaps 
the letter that had been sent to the Chairman, w ould help the Committee to consider how to move 
forward on the matter.   
14. The representative of India  said that, according to the RTAs TM, the CRTA would implement 
the Mechanism for RTAs notified under Article XXIV , while the CTD would do so for RTAs notified 
under the Enabling Clause.  At the CTD's last meeti ng, it had been confirmed by the Secretariat that WT/COMTD/M/77 
Page 4  
 
  the notification of the GCC Customs Union under the Enabling Clause had not been withdrawn.  
Therefore, given that an RTA had been notifie d under both Article XXIV and the Enabling Clause, 
the reasons for the request for an update to the Legal Note were evident.  He indicated in particular 
that the dual notification raised a number of legal qu estions.  It was not clear, for example, whether an 
RTA could be notified under two provisions.  Th e question of whether an RTA notified under the 
Enabling Clause should be considered in the CTD was al so pertinent.  Such questions raised systemic 
concerns, and his delegation wanted greater clarity.  The Secretariat was, therefore, requested to 
update its Legal Note before the next CTD meeting.   He also requested that the present item remain 
on the CTD's agenda. 
15. The representative of Japan
 said that her delegation was among those that sought more 
information as to why an update to the Legal Note had been requested.  In this light, she suggested 
that the letter that had been sent to the Chairman be  circulated to the membership.  She also inquired 
whether India's intervention could be shared with Members.  Her delegation believed that continued 
discussion on this matter would be more appropriate under a separate agenda item, since the discussion was on a systemic issue, and was not limite d to the GCC Customs Union notification.    
16. The representative of Egypt
 said that it was the dual notification status of the GCC Customs 
Union that had prompted the request for an update to  the Legal Note.  He recalled that it had been 
explained at the last CTD meeting that there we re concerns about the implications of the dual 
notification, and that a clarification on the respective roles of the CTD and the CRTA in the 
consideration of RTAs was required.  In light of th is, he requested that the present item remain on the 
CTD's agenda. 
17. The representative of the United States  said that her delegation still did not see what was 
expected of the Secretariat through the request for the update to the Legal Note.  The US did not think 
that it was appropriate for the Secretariat to a ddress disagreements between Members.  She also 
pointed out that the Chairman in his statement ha d indicated that the process to consider the GCC 
Customs Union would be without prejudice to the rights and obligations of Members under 
Article XXIV and the Enabling Clause.  She added that her delegation did not see why a decision had 
to be made at the present meeting on the agenda for the next CTD meeting.  However, on the issue of 
the appropriate agenda item for a possible continua tion of the present discussion, she agreed with 
Japan that the discussion was no longer limited to th e GCC Customs Union.  Therefore, if certain 
delegations wished to continue  the discussion, it should be done through a written communication and 
a request for a separate agenda item.  
18. The representative of China  said that his delegation had no objection to the compromise that 
had been reached on the process to consider the GCC Customs Union.  However, China and some 
other delegations remained concerned with the system ic implications of the dual notification.  It was 
for this reason that a request had been made for an update to the Legal Note.  The purpose of the 
request was to allow Members to have a better unde rstanding of the respective roles of the CTD and 
the CRTA in the consideration of RTAs.  He indicated  that China still wished to have the Legal Note 
updated. 
19. The Chairman  said that the letter that had been sent to him would be circulated to the 
membership.  He also observed that discussions on th is matter would need to continue at the next 
meeting.  
20. The representative of the United States  asked for confirmation that the item under which 
discussion would continue at the next CTD meeting would concern the request by China, Egypt, India 
and Pakistan for an update to the Secretariat's Legal Note.  WT/COMTD/M/77 
 Page 5 
 
 
  21. The representative of Egypt  asked for confirmation that discussion would continue at the next 
meeting under the present agenda item. 
22. The representative of Pakistan  said that his delegation still had concerns with the systemic 
implications arising from discussions under the present agenda item.  Therefore, he requested that the 
item remain on the CTD's agenda for its next meeti ng.  He explained that the delegations that had 
requested an update to the Legal No te would  have made a written submission if they had wished to 
have the request considered as a separate agenda item.  They had not done so as yet, since their 
request had been made in the context of the discu ssions under the present agenda item.  He added that 
if some Members were unclear about the scope of  the update to the Legal Note that had been 
requested, the issue could be rephrased in a generic way.  He suggested, for example, that the issue 
could be framed in terms of the legal crite ria determining whether an RTA notified under 
Article XXIV and the Enabling Clause would be consid ered in the CTD or in the CRTA.  This would 
certainly apply to the discussion under the presen t agenda item, and would also give Members 
guidance for the future. 
23. The Chairman  said that consensus could not be reached at the present meeting.  He suggested 
once again that the CTD revert to the discussion at its next meeting. 
24. The representative of the United States  said that the present item was not a standing item on 
the CTD's agenda.  Since the CTD followed the sam e rules as those governing the General Council, 
the correct procedure was for delegations to make a written submission in requesting that an item be 
placed on the agenda of a meeting.  She suggested that the delegations wanting the update to the 
Legal Note could request that a separate item be placed on the agenda for the CTD's next meeting. 
25. The representative of Egypt  said that he wished to clarify that his delegation had no objection 
to the procedure that the Chairman had outlined fo r the consideration of the GCC Customs Union.  
However, this procedure in itself did not address the concerns that some Members had with the dual notification.  Since the dual notification was re lated to the GCC Customs Union, the present item 
could not be removed from the CTD's agenda until sa tisfactory legal clarity had been obtained.  He 
added that, in his view, the procedures were being followed correctly.  In particular, some Members 
had concerns with regard to the discussions unde r the present agenda item, and were therefore 
requesting that the item remain on the CTD's agenda. 
26. The representative of the European Union
 said that he had not heard any delegation disagree 
with the way forward on the GCC Customs Uni on that had been outlined by the Chairman.  
Therefore, in his view, there was no need for the CT D to return to the present agenda item at its next 
meeting.  He appreciated that some Members had systemic concerns with the dual notification, but 
pointed out that this issue was not specifically r estricted to the GCC Customs Union.  The Members 
that had raised concerns were, however, within thei r rights to request that a pertinent item be placed 
on the CTD's agenda. 
27. The representative of Pakistan  said that the main concern of some Members at this time was 
the systemic issue arising out of the dual notification status of the GCC Customs Union.  There was, 
however, no objection to the procedures that woul d be followed in the consideration of that 
agreement.    
28. The Chairman  said that Members would not be able to resolve their differences at the present 
meeting.  He proposed to hold informal consulta tions to see how the matter could be framed as an 
item for the CTD's agenda. WT/COMTD/M/77 
Page 6  
 
  29. The representative of Egypt
 said that he agreed with the Chairman's proposal.  However, he 
sought confirmation that the present item would re main on the CTD's agenda until the Chairman's 
consultations yielded an outcome. 
30. The Chairman  said that the content of Members' di scussions on this matter should not be 
pre-judged.  As he had indicated, he would hold in formal consultations.  It was on the basis of the 
discussions in the informal consultations that an  appropriate way forward would be explored.   
31. It was so agreed . 
(ii) Generalized System of Preferences – notification by Switzerland ( WT/COMTD/N/7/Add.3 ) 
32. The Chairman  said that the notification by Switzerland concerning its Generalized System of 
Preferences (GSP) scheme had been circulated in  document WT/COMTD/N/7/Add.3.  He invited the 
representative of Switzerland to introduce the notification. 
33. The representative of Switzerland  said that the Swiss GSP scheme had been completely 
revised.  The coverage had been broadened, the pr eferences had been deepened and the system had 
been strengthened through its reliance on transparen t, objective criteria developed and established at 
the international level.  At the same time, the schem e maintained its simplicity in order to facilitate an 
easy application.  Beneficiary countries were selected on the basis of the OECD's Development 
Assistance Committee (DAC) list.  The list of LDCs was taken from the classification established by 
the UN's Economic and Social Council (ECO SOC).  The DAC and ECOSOC lists were 
internationally recognized and we re applied in the GSP schemes of other countries as well. 
34. In the new Swiss scheme, tariff preferences up to the duty-free level applied to all beneficiary 
countries.  For industrial products, imports were duty free except with regard to certain textile 
products, where a 50 per cent tariff reduction applie d.  Significant tariff preferences applied to 
relevant agricultural products.  Processed agricultura l products could be imported duty free, and tariff 
escalation was non-existent.  The scheme granted 100 per cent duty-free and quota-free (DFQF) market access to LDCs and, on a temporary basis, to countries participating in the Heavily-Indebted 
Poor Countries (HIPC) initiative.  The latter group of countries would benefit from DFQF access to 
the Swiss market from the so-calle d "pre-decision" point.  After the "completion" point, the regular 
GSP preferences would apply.  
35. Certain products from some developing countri es were understood to be competitive in the 
world market.  Granting tariff pref erences for such products hampered the principal idea of the GSP, 
which was to enable better market access for produc ts from countries which needed these preferences, 
thereby helping them to strengthen their export economy.  Therefore, the new Swiss GSP scheme 
included a mechanism to graduate competitive produc ts, which applied when the share of the product 
in question exceeded 3.25 per cent of total exports of  the product in the world market.  This criterion, 
which had been developed to determine the limita tions of export subsidies in the WTO Agreement on 
Subsidies and Countervailing Measures, was applied in  this context because the tariff reduction at the 
stage of import had a similar effect to an export s ubsidy on the product in question.  It was, however, 
applied with care and only in cases where the granti ng of tariff preferences for a competitive product 
endangered market access for products from othe r GSP beneficiary countries.  Furthermore, 
ex-post-analysis needed to show that the withdraw al of tariff preferences did not have detrimental 
effects on  imports of the product.  Analysis so  far had shown that, despite withdrawing tariff 
preferences at the 8-digit level, the share of impor ts to Switzerland had actually been rising.  This 
confirmed that the product in question was competitive.  
36. So far, the scheme's overall utilization rate ha d been 70 per cent.  He observed that this 
number could be higher if all beneficiary coun tries appointed authorities for the relevant  WT/COMTD/M/77 
 Page 7 
 
 
  administrative cooperation, and to issue certificates of  origin.  On the subject of rules of origin, he 
said that the EU, Norway and Switzerland applied mu tually agreed rules in the GSP context.  These 
rules were currently being revised with a view to  simplifying them.  Finally, he drew Members' 
attention to an information portal – av ailable at www.export-to-switzerland.ch  – which offered 
relevant information on tariff and non-tariff requirements when exporting to Switzerland under the 
GSP.  
37. The representative of Sri Lanka  said that there was a provision in the EU's GSP scheme 
concerning regional cumulation.  He asked whethe r regional cumulation facilities were offered under 
the Swiss GSP scheme as well, and how these compar ed to those contained in the EU's scheme. 
38. The representative of Switzerland  invited Sri Lanka to submit the question in writing.  The 
question would be transmitted to his capital, and a response would be duly provided. 
39. The Committee took note  of the notification by Switzerland.     
(iii) Generalized System of Preferences – notification by the United States ( WT/COMTD/N/1/Add.7 ) 
40. The Chairman  said that the notification by the United States concerning its GSP scheme had 
been circulated in document WT/COMTD/N/1/Add.7.   He invited the US representative to introduce 
the notification. 
41. The representative of the United States  said that her delegation was pleased to have the 
opportunity to present its notification concer ning the 2008 Annual Review of the US GSP 
programme, which had been completed in July 2009.  Efforts to foster the further integration of 
developing countries into the multilateral trading system  were a vital part of US trade policy.  US 
efforts spanned a number of fronts, including pr omoting broad-based multilateral trade reforms 
conducive to further integration, supporting integration of trade stra tegies into the development plans 
of national authorities, and providing significant amounts of capacity-building assistance.  
42. A longstanding element in US efforts to incr ease developing country participation in the 
global trading system was the provision of duty -free access for products from beneficiary developing 
countries entering the US market.  The US GS P programme, in operation since 1975, was a 
cornerstone of this effort.  The programme currently provided preferential duty-free treatment for 
nearly 5,000 products from the 131 designated be neficiary countries and territories.  Duty-free 
benefits were the only preferential tariff treatment  provided under the programme, as the statute did 
not allow for less than full tariff reduction.  A sing le, transparent rules of origin regime governed all 
US imports under the GSP. 
43. In the 2008 Annual Review, the US had designate d certain additional products as eligible for 
duty-free treatment, as outlined in Annex I of the no tification.  Additionally, the US had granted 
waivers to the statutory "competitive need limitations " to ensure continued GSP duty-free benefits for 
certain products.  These were outlined in Annex II  and Annex III of the notification.  Annex IV 
identified those specific products from specific bene ficiary countries for which GSP eligibility was 
terminated based on a determination that imports from those beneficiary countries could compete 
effectively in the US market.  Annex V identifie d those specific products from specific beneficiary 
countries for which waivers to the statutory "compe titive need limitations" had been revoked.  The 
notification provided the publicly accessible websit e where the results of the 2008 GSP Annual 
Review could be accessed.  The notification also informed Members that, in December 2008, the US 
had designated the Republic of Azerbaijan and the Republic of Kosovo each as a beneficiary 
developing country for purposes of the GSP programme.  WT/COMTD/M/77 
Page 8  
 
  44. She said that US trade data at virtually any level of aggregation was freely available in 
easy-to-use formats that enabled users to run th eir own customized queries on product-specific and  
country-specific trade – including utilization unde r preference programmes.  While her delegation 
recognized the successes of the US GSP programme  – which covered over US$31.7 billion in imports 
in 2008 – it was also committed to continue working to improve the effectiveness of US efforts to 
integrate developing countries more fully into the global trading system. 
45. The Committee took note
 of the notification by the United States. 
D. DECISION ON TRANSPARENCY FOR PREFERENTIAL TRADE ARRANGEMENTS  
 - GENERAL COUNCIL DECISION OF 14 DECEMBER 2006  (WT/L/672) 
 - TRANSPARENCY MECHANISM FOR PREF ERENTIAL TRADE ARRANGEMENTS – DRAFT 
  PROPOSAL BY BRAZIL , CHINA , INDIA AND THE UNITED STATES (JOB(08)/103/REV.1)   
46. The Chairman  said that the 14 December 2006 Gene ral Council Decision on "Transparency 
for Preferential Trade Arrangements" – contai ned in document WT/L/672 – invited the CTD to 
consider transparency for preferential arrangement s under paragraph 2 of the Enabling Clause – other 
than RTAs – and report back within six months fo r appropriate action by th e General Council.  The 
Council had since extended the deadline to its D ecember 2009 meeting.  He informed the Committee 
that the proponents of a Transpar ency Mechanism for PTAs – Brazil, China, India and the US – had 
circulated their revised draft proposal as document JOB(08)/103/Rev.1.  He invited the proponents to 
introduce the document. 
47. The representative of Brazil  said that the revised draft proposal laid out a procedure for a TM 
applicable to PTAs under the Enabling Clause – ot her than RTAs – as well as to PTAs providing 
preferential treatment to the products of LDCs  and to any other non-reciprocal preferential 
arrangements.  After the circulation of the origin al version of the document in October 2008, several 
meetings had been held between the proponents and so me other Members.  The revised version of the 
draft proposal incorporated the modifications suggested by these Members.  The proponents, 
therefore, believed that they had addressed the majo r concerns that had been raised, including those 
relating to the technical constraints faced by deve loping countries in fu lfilling PTA notification 
requirements.  This had been done either by extending some deadlines or by introducing more flexible 
language in some parts of the text.  Several impr ovements had also been made regarding the quality 
and the quantity of the data that were to be made available as part of the notification procedures.  In 
this regard, he acknowledged the cont ribution of the Integrated Database Section of the Secretariat in 
providing suggestions to make the Mechanism more efficient and comprehensive, particularly in the 
new structure of paragraphs 7 and 15, as well as in Annex I.  Finally, he said that some new language 
had been introduced in paragraph 22 in order to a ddress the issue of the timing of the implementation 
of the Mechanism.  He expressed hope that Memb ers could agree on a final text shortly.  
48. The Chairman  expressed his appreciation to the proponents for their efforts to take into 
account the comments and concerns that  were raised in the small-group consultations  that he had been 
holding.  Given that the deadline for the CTD to re port back to the General Council was the Council's 
December 2009 meeting, he requested Members to i ndicate in their interventions whether they could 
consider agreeing to the revised draft proposal, wh ich was the outcome of a long process of informal 
consultations.  He also informed Members that copi es of the Secretariat's "mock" Factual Presentation 
(FP) were available at the back of the meeting room.  The "mock" FP – which had initially been 
distributed at the 76th Session – was meant to help Members in their consideration of the proponents' 
revised draft proposal.    WT/COMTD/M/77 
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  49. The representative of the European Union  welcomed the revised draft proposal, but indicated 
that more time would be needed to consider it in detail.  The EU also had certain specific questions 
and comments on the document.  For example, she not ed that the requirements concerning subsequent 
notification and reporting in paragr aph 15 had been broadened.  Her delegation had previously made 
the point that excessive annual obligations shoul d not be made on Members, as this would be 
demanding and impracticable, and would also go be yond the requirements of the RTAs TM.  She 
recalled that the EU had also signalled on previous occasions its interest in having a look at a "mock" 
guide of a PTA.  Furthermore, there was a need fo r clarification on the role and content of the PTAs 
database that was to be created.  She appreciated  the steps that had been taken to re-phrase the 
language in paragraph 22 on the application and entry into force of the PTAs TM.  She noted that the 
EU wished to see the RTAs TM and the PTAs TM pr oceed in parallel, and that the RTAs TM was 
currently being applied on a provisional basis.    
50. The representative of El Salvador  said that his delegation supported the idea of greater 
transparency for PTAs.  The interest of his delega tion was to have a PTAs TM that was practical and 
did not involve burdensome obligati ons on developing countries.  Ho wever, his delegation was still 
studying the revised draft proposal, and was therefor e not in a position to agree to it at the present 
time.  He also expressed appreciation to the Secr etariat for the preparation of the "mock" FP. 
51. The representative of Japan  said that the draft text appeared to have been improved in many 
ways.  However, her delegation sought clarificati on on some technical points, and therefore called on 
the Chairman to hold an informal consultation soon. 
52. The representative of St. Lucia, on behalf of the ACP Group , said that the ACP countries 
would need to consult further on the revised draft pr oposal before being in a position to react to it. 
53. The representative of Chile  said that his delegation was interested in participating in any 
informal consultations that the Chairman would be holding on this matter.   
54. The Chairman  noted that the CTD was not yet in a pos ition to agree to the proponents' revised 
draft proposal.  In his report to the General C ouncil at the Council's December 2009 meeting, he said 
that he would outline the important progress that had been made on this matter since July 2009.  He 
proposed to also ask the Council to  grant the CTD additional time – until July 2010 – to consider the 
matter and report back for appropriate action.  He sai d that he would continue to work with Members 
in the small-group setting starting from early 2010, and would open the matter up for discussion once 
again at the next formal meeting of the CTD.  The item would, therefore, remain on the CTD's agenda. 
55. It was so agreed
. 
E. ANNUAL REVIEW OF THE IMPLEMENTATION OF THE HONG KONG DECISION ON DUTY -FREE 
AND QUOTA -FREE MARKET ACCESS FOR LEAST -DEVELOPED COUNTRIES   
56. The Chairman  said that an item concerning the Hong Kong Decision on DFQF market access 
for LDCs had been on the CTD's agenda for its earl ier meetings in 2009.  At the present meeting, the 
CTD was to undertake its fourth annual review of the implementation of the Hong Kong Decision, as 
mandated in Annex F of the Hong Ko ng Ministerial Declaration.   
57. The representative of the United States  said that her delegation,  which had a longstanding 
commitment to transparency, was pleased to particip ate in the present annual review.  She stressed 
that the US remained fully committed to implemen ting the DFQF Decision on the terms agreed to at 
the Hong Kong Ministerial Conference, together wi th the results of an agreement on the overall 
negotiations under the Doha Development Agenda (DDA) .  Backed by the results of several studies, WT/COMTD/M/77 
Page 10  
 
  her delegation strongly believed that the best re sult for all developing countries – including the LDCs 
– was an ambitious package that would open new markets worldwide.  As such, the Doha Round was a single undertaking for a good reason, since th e best package could be achieved when all 
contributions were tied together.  The US was also fully committed to implementing the DFQF 
Decision in a manner that would result in meaningf ul opportunities for LDC products, coincident with 
implementing the results of a successful completion of the DDA.   
58. To ensure meaningful implementation of DFQF market access for LDCs, the US was 
carefully assessing the existing level of market share of specific LDCs, and the extent to which they 
were already benefiting from US preference programm es.  The US was already particularly open to 
Sub-Saharan African (SSA) countries.  In 2008, ov er 97 per cent of US imports from beneficiary 
countries of the African Growth and Opportunity Act (AGOA) entered duty free.  Much of the 
remainder could be attributed to the fact that th e preference was not claimed on otherwise eligible 
products.  Many SSA LDCs were active users of US preference programmes.  This was also true for Haiti, the only LDC in the western hemisphere. 
59. In its analysis of DFQF implementation, the US  was considering how best to ensure that a 
range of LDCs, including SSA LDCs and Haiti, co uld continue to have some market access and 
benefit from US preference programmes.  One area under review was apparel trade.  Recent data on  
chapters 61 and 62 of the Harmonized Tariff Schedul e (HTS) of the US showed that, between 2005 
and 2008, US apparel imports from Bangladesh had increased by 48 per cent and from Cambodia by 
39 per cent, even though both countries were cu rrently suppliers on a most-favoured-nation (MFN) 
basis.  During the same period, US imports from AGOA beneficiary countries dropped by 21 per cent 
and from African LDCs by 9 per cent.  While Bangl adesh and Cambodia had gained market share in 
the US, up 43 per cent and 35 per cent, respectively,  Sub-Saharan Africa's market share had dropped 
by 24 per cent for AGOA beneficiaries and by 12 per cent for AGOA LDCs. 
60. In this regard, the US was continuing to examine the views expressed by beneficiary 
countries.  For example, the Common Market for E astern and Southern Africa (COMESA) – most of 
whose members were AGOA beneficiaries – stated during its testimony on US preferences before the 
US Congress on 17 November 2009 that Bangladesh ha d seen its exports to the US increase while 
SSA exports had declined.  The argument had, theref ore, been made that duty-free treatment could not 
be accorded to Bangladeshi apparel exports if  the most significant success story of AGOA – the 
growth of the garment industry in SSA – was to be maintained.  The US had, however, taken note that 
Bangladesh and other LDCs had also expressed their views on the US' implementation of DFQF 
market access, and was continuing to examine all of these interests.  She concluding by reiterating the 
US' commitment to implement the DFQF Decision in a manner that would result in meaningful 
opportunities for LDC products, consistent with th e commitment made at the Hong Kong Ministerial 
Conference.  The US was also working to ensure  a strong overall market-opening result in the Doha 
Round that would benefit all LDCs. 
61. The representative of China
 said that the Fourth Ministerial Conference on the Forum on 
China-Africa Cooperation (FOCAC) was held in Egypt on 8 and 9 November 2009.  Both sides used the opportunity to evaluate the achievements since the Beijing Summit of 2006, and to work out a blueprint for cooperation between China and Africa in  the next three years.  At the Conference, the 
Chinese Premier announced eight measures to strengt hen China-Africa cooperation and to support the 
economic development of Africa.  These measures in cluded the further opening of the Chinese market 
to African products.  Zero tariff treatment would be phased in for 95 per cent of the products from 
African LDCs having diplom atic relations with China, starting w ith 60 per cent of products in 2010.  
This action demonstrated China's sincere willingness to implement the Hong Kong Decision within its 
capacity. 
62. The Committee took note
 of all interventions.  WT/COMTD/M/77 
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  F. PARTICIPATION OF DEVELOPING COUNTRIES IN THE MULTILATERAL TRADING SYSTEM 
(WT/COMTD /W/172 AND WT /COMTD /W/172/CORR .11) 
63. The Chairman  said that the CTD had a mandate to keep under continuous review the 
participation of developing country Members in th e multilateral trading system.  He recalled that it 
had been agreed at the 73rd Session that the CTD's discussion under this agenda item would take place 
at the present meeting, based on a background paper prepared by the Secretariat.  He invited the 
Secretariat to introduce the paper, which had b een circulated in document WT/COMTD/W/172.  A 
corrigendum, in English only, had also been issued. 
64. The Chief Statistician  said that the volume of world merchandise trade almost tripled between 
1990 and  2008. Developing economies had multiplied  their trade volume by 4.5, which was double 
the growth registered by developed countries.  In 2008, developing economies as a group represented 
38 per cent of global merchandise exports and 27 per cent of commercial services exports. 
Manufactures represented almost 60 per cent of developing economies' merchandise exports, while fuels represented 27 per cent and agricultural products 8 per cent. Between 2000 and 2008, developing economies' share of global manufactures  exports increased by 7 percentage points, while 
their share of agricultural exports grew by 4 perc entage points.  He highlighted the uninterrupted 
increase in commodity prices which had taken pl ace between 2003 and 2008, and which had been 
particularly strong for fuels and minerals.  This development had favoured many commodity 
exporting developing countries.  It had also b oosted South-South trade, which grew annually on 
average by 18 per cent between 2000 and 2008. 
65. The financial and economic crisis that star ted in September 2008 showed how closely the 
global economy was linked.  During the first half of 2009, developing econom ies' exports dropped by 
an estimated 32 per cent on a year-on-year basis – virtually by the same degree as the exports of the 
developed countries.  Much of the fall in devel oping economies' exports was due to the observed 
50 per cent decrease in the export value of fuels and mining products, largely caused by a price effect.  
Agricultural exports declined by 17 per cent, a nd manufactures exports by 25 per cent.  While less 
information was available on commercial services trade,  preliminary figures for the first six months of 
2009 showed that develo ping Asian economies' services exports – which accounted for 64 per cent of 
the total services exports of the developing gr oup in 2008 – had dropped by 17 per cent on a 
year-on-year basis.  Available statistics showed that the impact of the crisis on services had been 
severe for transportation services, in particular freight transport.  Tourism was another service sector which had been severely hit by the crisis.  Ma ny developing economies – especially small economies 
where transport and travel exports represented importa nt revenues - had been particularly affected.  
66. A positive development was that, since Marc h 2009, global trade had been increasing on a 
month-to-month basis.  Furthermore, since the drop in the value of developi ng economies' exports had 
been largely due to a fall in commodity prices, the volume of exports of developing economies had 
been less affected than was the case for developed countries.  The impact of the trade collapse on 
economic activity would, therefore, likely be less important for developing economies as a group.  
However, he cautioned that experiences differed widely between individua l developing economies.  
While some had coped well through the crisis, othe rs had shown the extent of their vulnerability.  
Among the most vulnerable developi ng economies were several LDCs.  
67. The representative of the United States
 said that the Secretariat paper provided some valuable 
insights.  Her delegation was particularly apprecia tive of the statistics provided in the Annex which 
addressed improvements in trade facilitation by developing economies, as well as the trading 
environment that these economies faced.  She indicat ed that the US had some substantive comments 
on the paper, which the Secretariat was requested to review and address in a revision.  Beginning on 
                                                      
1 In English only. WT/COMTD/M/77 
Page 12  
 
  page 8, she noted that the Secretariat paper a ttempted to measure integration and trade openness 
through a trade-to-GDP ratio measurement.  The US  was surprised and concerned that the Secretariat 
had used this methodology, given its significant flaw s.  It was not a good indicator of trade openness, 
since many factors other than trade policy could influence a country’s exports and imports.  While footnote 7 acknowledged caution in interpreting the results of this methodology, it did not go far 
enough in explaining the limitations of the approach .  Her delegation would provide specific edits to 
the Secretariat with regard to footnote 7.   
68. She said that the US also had specific comments on the Annex to the Secretariat paper.  While 
appreciating the information provided in the first paragraph of the Annex – namely that developed 
countries had reduced their tariffs by 46 per cen t since the end of the Uruguay Round – she observed 
that there was no information on the percentage reduc tion in tariffs by devel oping economies.  Since a 
recent Secretariat report prepared for the Sub-Co mmittee on LDCs highlighted that LDC exports to 
some major developing economies were expanding, th e Secretariat was requested to expand the paper 
to include information on the percentage reduction in developing economies' tariffs.  She added that it 
would be useful if the revised paper could clarify that the references were to applied tariffs.   
69. She went on to say that paragraphs 3 and 6 of the Annex referred to agriculture, textiles, and 
clothing as "highly protected sectors" and "sectors with high tariffs", respectively.  This labelling appeared subjective.  Her delegation requested that  the text be modified to refer only to the 
"agricultural, textiles and clothing" sectors.  Pa ragraph 4 of the Annex al so referred to "highly 
protected sectors", and stated that LDCs had good preferential margins in those sectors due to the 
more rapid implementation of DFQF treatment fo r LDCs relative to preferential treatment for 
non-LDC developing economies.  The US questioned the accuracy of this statement, as LDCs could 
have a preference margin even without DFQF – for example, under GSP programmes – and would 
benefit from additional preferential treatme nt given to all developing economies. 
70. The representative of the European Union
 expressed appreciation for the Secretariat paper.  
She indicated that the Annex on the trading environment for developing economies, including the 
information provided on the domestic environment, w as particularly interesting.  Her delegation had 
taken note of the strong performan ce of developing economies – par ticularly Asian economies – in 
terms of both exports and imports.  No te had also been taken of the rapid rise in South-South trade.  In 
this regard, she observed that the EU was inte rested to see how the Global System of Trade 
Preferences (GSTP) – for which the modalities for ne gotiations had been recently announced – would 
further boost South-South trade, especially outside Asia.  
71. The Chief Statistician  said that the Secretariat had taken note of Members' comments.  While 
the Secretariat was aware of the shortcomings of the trade-to-GDP ratio as an indicator of trade 
openness, efforts would be made to be more specific  in the revision to the document that would be 
issued. 
72. The Committee took note  of the Secretariat paper and of all interventions.     
G. TECHNICAL COOPERATION AND TRAINING  
- PREPARATIONS FOR THE IMPLEMENTATI ON OF THE TECHNICAL ASSISTANCE AND 
TRAINING PLAN FOR 2010  – ORAL INFORMATION BY THE SECRETARIAT  
73. The Chairman  invited the Secretariat to provide info rmation on the preparations being made 
to implement the Technical Assistance and Training Plan for 2010. 
74. The Director of the Institute for Training and Technical Cooperation (ITTC)  said that the 
focus in the first quarter of 2010 would be on national activities.  In this regard, letters had been sent  WT/COMTD/M/77 
 Page 13 
 
 
  to Members inviting them to submit their requests.  He said that, in the course of 2010, three-month 
Regional Trade Policy Courses (RTPCs) would be held  in Singapore for the Asia-Pacific region, in 
Colombia for Latin America, and in Benin and Swaziland for French and English-speaking Africa, 
respectively.  After 2010, the Asia-Pacific RTPC w ould be held in a new venue, which was yet to be 
identified. Regions not yet covered by the RTPC s – those constituting the Arab countries, the 
Caribbean countries, and the Central and Eastern Europe, Central Asia a nd the Caucus (CEECAC) 
countries – would benefit from Short Regional Trade Policy Courses (SRTPCs).  The Secretariat would also be approaching Members regarding th e hosting of other regional activities.  Attention 
would be given during the year to the updating of WT O reference centres, especially in LDCs.  In this 
regard, he invited delegations to consult with their capitals on specific needs.  He thanked donors for 
the resources that had been provided for the intern ship programmes, and indicated that efforts would 
be made to continue to strengthen these programmes.  
75. He recalled the concept of progressive learning which now guided the WTO's approach to 
training.  This approach put the emphasis on e-training as a tool to offer introductory-level courses, after which beneficiaries could advance their learning  by participating in RTPCs at the intermediate 
level, and in advanced Geneva-based courses.  In this regard, he informed the Committee that the 
concerns of some countries with constraints rela ting to internet access would be addressed through the 
development of CD-ROMs.  Finally, he said th at the WTO's cooperation with universities was 
continuing.  In this regard, he thanked Member s for their support for the WTO Chairs Programme 
(WCP).  In order to better respond to the dema nd from Members, the number of beneficiary 
institutions under the WCP had been increased from 12 to 14.  He said that he would regularly brief 
the Committee on the status of implementation of  the Technical Assistance and Training Plan. 
76. The Committee took note
 of the intervention by the Director of the ITTC.  
H. DRAFT ADDENDUM TO THE 2009  ANNUAL REPORT (WT/COMTD /W/171/A DD.1) 
77. The Chairman  said that the CTD's 2009 annual report, which was adopted by the 
General Council at its November meeting, was c ontained in document WT/COMTD/70.  The draft 
addendum to the CTD's 2009 annual report – cont ained in document WT/COMTD/W/171/Add.1 – 
was the document under consideration at the presen t meeting.  The document reflected the work 
undertaken by the Committee since the circulation of the 2009 annual report.  He observed that the 
document contained a number of square brackets re lating to items under consideration at the present 
meeting.  As part of the process of adopting th e addendum, the square brackets would be removed, 
and the discussion that took place at the present meeting would be appropriately reflected.  Once 
adopted, the addendum would be forwarded to the Ge neral Council for consider ation at the Council's 
December meeting.  He opened the floor  for any comments on the draft addendum. 
78. The representative of the United States  said that, if changes were to be made to reflect the 
discussion at the present meeting, her delegation wish ed to request that the addendum be circulated 
and considered by Members for adopti on on an ad referendum basis.    
79. The Committee adopted  the addendum to its 2009 annual report on an ad referendum basis.2     
I. OTHER BUSINESS  
80. No matter was raised under "Other Business".  
81. The meeting was adjourned . 
__________  
                                                      
2 The addendum was issued as document WT/COMTD/70/Add.1.