RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/COMTD/M/52 
18 May 2005 
 
 (05-2017) 
Committee on Trade and Development 
Fifty-Second Session  
 
 
NOTE ON THE MEETING OF 22 FEBRUARY 2005 
 
Chairperson:  H. E. Mr. C. Trevor Clarke (Barbados) 
 
 
A. ADOPTION OF THE AGENDA ........................................................................................................2  
B. OBSERVERS ............................................................................................................................... ..2 
(i) Request for attendance of ad hoc observers ...............................................................................2  
(ii) Request for observer status by the Organization of Eastern Caribbean States (OECS) ............2  
(iii) 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, and the Common Fund for Commodities ...........................................................2  
C. NOTIFICATION UNDER THE ENABLING CLAUSE .........................................................................6  
- FRAMEWORK AGREEMENT ON COMPREHENSIV E ECONOMIC COOPERATION BETWEEN 
THE ASSOCIATION OF SOUTH EAST ASIAN NATIONS AND THE PEOPLE 'S REPUBLIC OF 
CHINA (WT/COMTD/N/20  – WT/COMTD/51) .........................................................................6  
D. DECLINING TERMS OF TRADE FOR PRIMARY COMMODITIES , AND ITS IMPLICATION TO 
TRADE AND DEVELOPMENT OF PRIMARY COMMODITY EXPORTING COUNTRIES ......................8  
E. PARAGRAPH 51 OF THE DOHA DECLARATION ON IDENTIFYING AND DEBATING 
DEVELOPMENTAL ASPECTS OF THE NEGOTIATIONS , IN ORDER TO HELP ACHIEVE THE 
OBJECTIVE OF HAVING SUSTAINABLE DEVELOPMENT APPROPRIATELY REFLECTED .............21  
F. ELECTRONIC COMMERCE ..........................................................................................................25  
G. GRADUATION OF THE MALDIVES FROM LDC  STATUS (WT/COMTD/W/128) ........................25  
H. PARTICIPATION OF THE DEVELOPING ECONOMIES IN THE GLOBAL TRADING SYSTEM 
(WT/COMTD/W/136) ..............................................................................................................2 6 
I. ELECTION OF THE CHAIRPERSON OF THE SUB-COMMITTEE ON LEAST -DEVELOPED 
COUNTRIES ............................................................................................................................... .26 
J. OTHER BUSINESS ......................................................................................................................26  
K. ELECTION OF THE CHAIRPERSON OF THE CTD.........................................................................27  
 WT/COMTD/M/52 
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A. A
DOPTION OF THE AGENDA  
1. The Chairman  recalled that the draft agenda for the meeting was contained in document 
WTO/AIR/2490/Rev.1 circulated on 17 February 2005.  
2. The Chairman proposed to add an item under "Other Business" concerning a presentation to 
the CTD from the NEPAD Secretariat.  He also proposed  to change the order of items so as to place 
the election of Chairperson at the end of the meeting. 
3. The Committee adopted  the agenda as amended. 
B. OBSERVERS  
(i) Request for attendance of ad hoc observers 
(ii) Request for observer status by the Organization of Eastern Caribbean States (OECS) 
(iii) 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 Interna tionale de la Francophonie, and the Common 
Fund for Commodities 
4. The representative of Egypt
 noted that under agenda item B, Egypt had always spoken on 
behalf of eleven countries, these being Bahrain,  Djibouti, Egypt, Jordan, Kuwait, Mauritania, 
Morocco, Oman, Qatar, Tunis and the United Arab Em irates.  He said that the view of the group was 
that this agenda item should be dealt with in a holistic manner, so that requests for attendance of 
observers should be considered as one item.  
5. The representative of Antigua and Barbuda  sought some clarification on the intervention of 
the representative of Egypt.  His understanding from th e last session of the CTD had been that the 
OECS' request would be dealt with separately.  It was not quite clear to him why there was a need to 
combine issues. 
6. The Chairman  replied that the CTD at its last session ha d agreed to consider the request of the 
OECS at the present meeting.  The request from the League of Arab States (LAS), on the other hand, 
had been communicated on 10 February 2005 and was, th erefore, being considered for the first time.  
The Chairman welcomed views on how the two requests should be treated. 
7. The representative of Egypt  once again presented the view that  all requests should be treated 
on the same footing, in a holistic manner.  
8. The representative of the United States  indicated that for procedural purposes the two requests 
could be treated as one item.  However, the view of her delegation was that  "holistic" was not the 
right term, as each request would need to be evaluated separately. 
9. The representative of China  recalled that his delegation ha d earlier expressed its support for 
the request of the OECS.  He also expressed the vi ew that the position taken by Egypt on behalf of a 
group of developing countries was understandable, as th is was really a horizontal issue.  This issue 
had been debated many times in many WTO subs idiary bodies, as well as at the General Council 
level.  He proposed that the Chairman consult with  the Chair of the General Council so as to resolve 
the issue of observer status in a general fashion.  The OECS' request could then be dealt with easily.  WT/COMTD/M/52 
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 10. The Chairman  then summarized the state of the disc ussion under this agenda item.  He said 
that at the last session of the CTD it was agreed to consider the OECS' request for ad hoc observer 
status at the current meeting.  He explained that the LAS had subsequently submitted a letter 
requesting similar status and that Egypt had suggested  that both the applications by the OECS and the 
LAS be deferred until the next session of the CTD.  He noted that some Members had suggested that 
he consult with the Chair of the General Council a nd that Members consult with each other and then 
revisit the applications at the next session of the CTD. 
11. The representative of Canada  suggested that given the period of time that Members had had to 
consider the request of the OECS, this request coul d be considered at the present session of the CTD.  
The request from the LAS could then be considered at the next meeting. 
12. The representative of Egypt  said that the group of Members that he represented would have 
difficulty in agreeing to the suggestion put forwar d by the representative of Canada, as the group's  
position was to allow flexibility in approving observer status on an ad hoc basis, and therefore not to 
shun any organization from participating in the work of the CTD.  
13. The Chairman  clarified that in his view even if the two requests were treated at the same time, 
each would necessarily be considered separately a nd on their own individual merit.  He proposed to 
defer any further consideration of agenda ite ms B(ii) and B(iii) until the next meeting. 
14. It was so agreed .  
15. The Chairman , in relation to agenda Item B(i) - requ ests for attendance of ad hoc observers -  
recalled that at previous sessions of the CTD, Members had agreed to invite a number of intergovernmental organizations on an ad hoc, meet ing-by-meeting basis:  the Arab Maghreb Union 
(AMU);  the Common Fund for Commodities (CFC);  the Economic Community of West African 
States (ECOWAS);  the Economic Cooperation Orga nization (ECO);  the Inter-Arab Investment 
Guarantee Corporation;  the Islamic Development Bank (IDB);  the African Union;  the Organization 
of the Islamic Conference (OIC);  the South Centre ;  the Pacific Islands Forum;  the United Nations 
Environment Programme (UNEP);  the West Afri can Economic and Monetary Union (WAEMU) and 
the World Intellectual Property Organization (WIPO).  He said that following the decision taken at the 
previous meeting of the Committee, those organizati ons had been invited to the present meeting.  He 
then proposed that those organizations be invited to the next formal meeting of the CTD. 
16. It was so agreed
. 
17. The representative of China  requested clarification as to why the OECS was not included in 
the list of intergovernmental organizations that woul d be invited to the next formal meeting of the 
CTD. 
18. The Chairman  clarified that the OECS had not yet been granted ad hoc observer status.  No 
decision had been made at the last meeting of the CTD, and the Committee had agreed to consider the 
request of the OECS at the present meeting. 
19. The representative of the United States  admitted to some confusion, and said that she did not 
believe that the position of her delegation had chan ged with regard to the request of the LAS for 
ad hoc observer status.  In particul ar, her delegation did not support th e request, as in its view the LAS 
was a political and not an economic group and, therefor e, did not meet the appropriate criteria.  She 
indicated, however, that the OECS did have a case to  make in its request for observer status.  More 
generally, her delegation was prepared to consider each request on its own merit.  WT/COMTD/M/52 
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 20. The Chairman
 clarified that in his earlier interventio n he had simply provided an answer to 
the question raised by China as to why the OECS was not included in the list of intergovernmental 
organizations that would be invited to the next formal meeting of the CTD.  
21. The representative of Antigua and Barbuda  admitted to some confusion in the consideration 
of the request of the OECS for observer status.  He said that the OECS was an organization which 
tried to merge the resources of six small WTO Members of the Caribbean.  He pointed out that his 
delegation was the only representative of that body at the present meeting, and that the members of 
the OECS were non-resident Members of WTO.  As the OECS was not a legal entity in the WTO, it 
was not possible for the group to utilize funding prov ided by the European Communities.  The request 
of the OECS for observer status was then made as a compromise, so as to allow the members of the 
OECS to be included and to participate in the WTO process.  He thanked those Members that had 
supported the request of the OECS and accepted the approach that each application should be considered on its own merit.  He expressed hope that  the issue of observer status for the OECS could 
soon be resolved. 
22. The representative of Egypt
 suggested that the matter coul d be resolved through informal 
consultations.  He said that this was the first time  that he had heard the position of the United States 
regarding the request for ad hoc observer status of  the LAS.  He did not agree that the LAS was a 
political organization.  He said it was an organization with an economic role. 
23. The Chairman  recalled that, at the last meeting, th ere had been overwhelming support for the 
request of the OECS.  However, his sense was th at the proponents of the request of the LAS would 
not be willing to have the two requests treated separately. 
24. The representative of China  expressed respect for the position of each and every Member on 
this matter. 
25. The representative of Barbados  expressed disappointment that the request of the OECS 
seemed to be falling victim to a situation which was not of its own making.  Her delegation was of the 
view that the request of the OECS was fully deser ving, as the members of the body were non-resident 
Members of WTO, and were suffering from the cons traints arising from this situation.  Observer 
status, even at an ad hoc level, could help to alleviate some of these constraints. 
26. The representative of Canada  said that from her understanding of the last meeting, the agenda 
of the present meeting should have read "Request for ad hoc observer status by the OECS" under item B(ii).  This would then be a different issue from item B(iii), which relates to observer status.  Her 
understanding was that what was to be considered at the present meeting was the request for ad hoc 
observer status by the OECS.  She gathered that there was some confusion regarding the agenda, and 
requested that the agenda for the next meeting be made clearer. 
27. The Chairman
 clarified that applications to the CTD were always for observer status, and this 
was reflected in item B(ii).  However, if obser ver status were not approved, the Committee could 
consider offering ad hoc observer status in lieu of ob server status, with the agreement of the applicant. 
28. The representative of Switzerland  felt that the Committee should now be in a position to 
approve the request for ad hoc observer status of th e OECS.  With regard to the request of the LAS, 
he suggested that at the next meeting the issue of  permanent observer status could be considered, and 
if not approved, the Committee could then consid er whether the LAS could be granted ad hoc 
observer status.  He assumed that in the interi m Egypt and the United States would confer and 
ascertain whether the United States would be opposed to ad hoc observer status.   WT/COMTD/M/52 
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 29. The representative of the European Communities  reiterated the support of his delegation for 
the request of the OECS, which would also apply if  the Committee decided to grant observer status on 
an ad hoc basis.  He also sounded a word of cauti on as to whether the issue could be resolved by the 
Chair of the General Council, and if that was not  the case, it would mean that this Committee would 
have to deal with the request of the OECS and othe r requests on a pragmatic and short-term basis.  He 
suggested that if agreement could not be reached during the present meeting then consultations could 
take place so that the matter could be resolved at  the next meeting.  The OECS could then join the 
Committee as an observer, and if need be, on an ad hoc basis. 
30. The representative of the United States  suggested that in the future there could be more 
annotation in the agenda so that it would be clear what precisely was being discussed under each 
agenda item.  She felt that some of the confusi on at the present meeting had come about because of 
this. 
31. The representative of Egypt  said that consultations would be needed on the matters discussed. 
He noted that ad hoc observer status had been cr eated to allow flexibility, and hoped that flexibility 
would be shown during the consultations.  The gr oup of Members that he represented supported the 
granting of observer status of other organizations , and was of the view that the issue should be 
addressed in a fair and balanced way, as well as in a pragmatic and consistent way.  The group supported the OECS' request to be an observer, and not just an ad hoc observer, but the approach 
taken should be fair and balanced so as to accommodate other similar requests. 
32. The representative of the United States
 said that the view of her delegation was that not all 
applicants for observer status in the WTO shoul d necessarily be granted this status.  Some 
organizations had something to contribute to the wo rk of the WTO and could significantly add value.  
In that regard, her delegation had supported the Arab Authority for Agricultural Investment and 
Development, the Arab Monetary Fund and others, or ganizations that her delegation felt had a direct 
economic role and bearing on the work being undert aken in the WTO.  She reiterated that it was 
important to think seriously about requests for observer status. 
33. The representative of Canada  supported the proposal that had been made by the representative 
of Switzerland to grant ad hoc observer status to  the OECS, and suggested that the Committee could 
agree to this at the present meeting. 
34. The representative of Zambia  was of the view that a decision had been made that 
consultations would be held after the present meetin g.  He also stressed the importance of informal 
consultations.  The impression he got from the pr esent meeting was that little discussion had been 
held before the meeting;  if the proponents and ot hers had held discussions before the meeting, then 
perhaps much less time would have been spent on this agenda item. 
35. The representative of Antigua and Barbuda  said that he felt there was a general consensus of 
the merits of the application of the OECS.  He took the point of Zambia of the need for talks in an 
informal setting.  He believed that the issue could be resolved in this body, and that it was just a 
matter of making a decision as a Committee. 
36. The Chairman  said that he could not as yet feel consensus, and that the best course of action 
at this time would be to close the agenda item.  Consultations could then be held before the next 
meeting. 
37. It was so agreed . WT/COMTD/M/52 
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 C. N
OTIFICATION UNDER THE ENABLING CLAUSE  
- FRAMEWORK AGREEMENT ON COMPREHENSIVE ECONOMIC COOPERATION BETWEEN 
THE ASSOCIATION OF SOUTH EAST ASIAN NATIONS AND THE PEOPLE 'S REPUBLIC OF 
CHINA (WT/COMTD/N/20  – WT/COMTD/51) 
38. The Chairman  recalled that the notification of the Agreement was circulated on 
21 December 2004 in document WT/COMTD/N/20, a nd that the copy of the actual Agreement was 
circulated on the same day as document WT/COMTD/51.  He also said that he was informed of a small error in the preamble of document WT/COM TD/51:  in the first page, second paragraph, 
"Bandar Sen Begawan" should be repl aced with "Bandar Seri Begawan". 
39. The representative of Malaysia
, speaking on behalf of the ASEAN members of WTO 
(Brunei Darussalam, Cambodia, Indonesia, Mala ysia, Myanmar, the Philippines, Singapore and 
Thailand), made the following statement:  
"Malaysia speaking on behalf of the ASEAN members of the WTO 
(Brunei Darussalam, Cambodia, Indonesia,  Malaysia, Myanmar, the Philippines, 
Singapore and Thailand) wish to notify the Framework Agreement on 
Comprehensive Economic Cooperati on between ASEAN and China. 
We hereby notify the Framework Agreement to the WTO pursuant to the Decision of 
28 November 1979 under the GATT on Differe ntial and More Favourable Treatment, 
Reciprocity and Fuller Participation of Developing Countries,  known as the 
'Enabling Clause'. 
The objectives of this Framework Agreement are to: 
(i) strengthen and enhance economic, trade and investment cooperation between 
ASEAN and China; 
(ii) progressively liberalise and promote trade in goods and services as well as 
create a transparent, liberal and facilitative investment regime; 
(iii) explore new areas and develop appropriate measures for closer economic 
cooperation between ASEAN and China;  and 
(iv) facilitate the more effective economic  integration of the newer ASEAN 
member States and bridge the development gap among the parties to the Framework Agreement. 
A copy of the Framework Agreement has been circulated as WT/COMTD/51 dated 
21 December 2004.  The related Protocols toge ther with the Annexes have also been 
submitted to the WTO and can be made available to interested Members.  The documents are 
also available on the ASEAN Secretariat website." 
40. The representative of China
 said that the Framework Agreement on Comprehensive 
Economic Cooperation between ASEAN and China w as notified to the CTD on 24 November 2004, 
pursuant to the Enabling Clause.  The Framework Agreement had set up the legal framework for the 
ASEAN-China Free-Trade Area (FTA), to be established by 2010.  According to the Framework 
Agreement, the ASEAN-China FTA would cover trad e in goods, services, investment and economic 
cooperation.  With regard to trade in goods, ASEAN members and China would begin to reduce 
tariffs from 2005.  By 2010, China and six ASEAN countries – Brunei Darussalam, Indonesia,  WT/COMTD/M/52 
 Page 7 
 
 
 Malaysia, the Philippines, Singapore and Thailand – would establish a free-trade area with zero tariffs 
for the majority of imported products;  the newe r ASEAN members – Cambodia, Laos, Myanmar and 
Vietnam – would enjoy a transition period of five ye ars.  An Early Harvest Programme was set up to 
enable China and the ASEAN countri es (except the Philippines) to benefit from the prospective FTA.  
As from 1 January 2004, tariffs on more than 500 products (including many agricultural products in 
chapter 1 to 8 of the tariff schedules) had been re duced, and would be reduced to zero by 2006;  the 
newer ASEAN members would enjoy a transition period of two to four years.  The ASEAN and China decided to establish through negotiations ru les of origin requirements and provisions on 
anti-dumping, countervailing and safeguard measures, and a dispute settlement mechanism, so as to 
ensure the smooth functioning of the ASEAN- China FTA.  After concluding the Framework 
Agreement, ASEAN and China signed in November  2004 the Agreement on Trade in Goods and the 
Agreement on Dispute Settlement Mechanism, whic h provide for specific arrangements for tariff 
reduction, rules of origin, and trade remedy measure s like safeguards.  From 1 July 2005, ASEAN and 
China would embark on a process of tariff reduction on products covered by the Agreement.  With 
regard to trade in services and investment, these were still in the process of negotiation. 
41. The representative of the European Communities
 thanked China and the ASEAN member 
countries for their notification.  His delegation welc omed the transparency that had been shown, and 
recognized that the Agreement was potentially a ve ry important development in terms of regional 
integration in East and Southeast Asia.  He furthe r said he was pleased to see the commitment of the 
countries concerned to comply with high standards for regional trade agreements.  He had certain 
questions for the countries party to the Agreement.  First, he noted that the documents circulated 
stated that the Early Harvest Programme was an in tegral part of the Framework Agreement and the 
FTA.  He wanted to get a clearer sense of how that worked in practice.  He also said that his delegation would be grateful if the parties concer ned could share additional information concerning 
the timetable for entry into force of tariff reducti ons, and on the phasing and coverage of products.  
His delegation encouraged the parties concerned to notify the FTA itself in due course under the 
relevant WTO provisions. 
42. The representative of the United States
 thanked China and the ASEAN member countries for 
the information provided.  Her delegation believed th at the Agreement was an important development, 
and one that supported the overall trend towards gl obal liberalization.  She said that it would be 
helpful if more information could be provided on the various timetables for liberalization and the 
scope of liberalization in each phase.  She was interest ed in the annexes alluded to in the text, and was 
also interested to know how the Agreement ha d accommodated the challenges of the new ASEAN 
members.  In general, her delegation welcomed th e notification and ongoing transparency on this 
matter. 
43. The representative of Canada  said that his delegation was plea santly surprised by the breadth 
and extent of the Agreement and the elements include d.  He noted that the Agreement not only had an 
interesting emphasis on the goods side, but also an ex tensive section on trade in services.  He also 
noted the interest of the parties in expanding in vestment liberalization, and in strengthening 
cooperation and protection of investments.  He  commended China and ASEAN for the far-reaching 
agreement.  Regarding the goods side, he said his delegation would be interested in obtaining more 
detail on the implementation periods.  He also not ed from the intervention of the representative of 
China that the majority of tariff items would be covered by the FTA, and he sought more detail on 
this, in particular in the context of WTO rules re quiring substantially all trad e to be covered.  He 
further noted that the applied MFN rate was taken as the starting point for tariff reduction in the Agreement, thereby contributing to further liberaliz ation than might have been possible if the bound 
rate had been used.  He also expressed interest in  the Early Harvest Programme and the revisions that 
had been made to it.  He encouraged the parties to  formally proceed with notification and to allow for 
further discussion along that route.  WT/COMTD/M/52 
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 44. The Committee took note
 of the notification and all statements made. 
D. DECLINING TERMS OF TRADE FOR PRIMARY COMMODITIES , AND ITS IMPLICATION TO TRADE 
AND DEVELOPMENT OF PRIMARY COMMODITY EXPORTING COUNTRIES  
45. The Chairman  recalled that at the previous meeting the Committee had a discussion of the 
work being done in this area by UNCTAD.  A representative from the UNCTAD Secretariat was 
present again at the meeting as some Members felt that they did not have enough time for discussion 
at the previous meeting.  He also recalled that the Committee had agreed at  the last meeting that 
Malaysia would make a presentation on its national experiences with commodities.  He then invited 
Mr. Loke Fong Han, who was the Principal Assistant Secretary of the Ministry of Plantation Industries and Commodities of Malaysia, to make his presentation. 
46. The representative of Malaysia
 made the following presentation: 
I. INTRODUCTION For more than two decades after Malaysia's Independence, the commodity sector, 
namely tin and rubber, continue to be the tw in pillars of the economy.  This situation 
remained until early 1980s when the country  began to embark on its industrialization 
programmes.  It is important to note that while the commodity sector has developed 
substantially, its share in terms of cont ribution to the country's Gross Domestic 
Product (GDP) has steadily dec lined from a hefty 40 per cent in the 1970s to about 
15 per cent in 2003.  This reflects the characteristic of a growing and evolving economy from predominantly agriculture to  include other more important sectors 
such as manufacturing and services. 
During the colonial days, Malaysia had gone through structural shifts in expanding its 
economic growth.  In the early twentieth century it was the agriculture sector which 
came to the forefront.  The crops boomed briefly but were hard pressed to survive 
severe price swings, pests and diseases that we re endemic in tropical agriculture.  The 
colonial government attempted to counteract  this vulnerability to  economic swings by 
instituting schemes to restore commodity prices to profitable levels.  For the rubber 
industry, this involved two periods of ma ndatory restriction of exports to reduce 
world stocks and exert upward pressure on market prices.  Tin exports were similarly restricted from 1931-1941. 
Post-independence saw the state playing a l eading role in the transformation.  The 
transition form British rule was smooth.  Apart from the disturbances in 1969, the 
Government maintained a firm control over the administrative machinery.  This was 
also facilitated by the development of infrastructure namely roads, railways, ports and telecommunications.  The Government conti nued to draw national plans, programmes 
and schemes to develop the country and im prove the living conditions of the rural 
populace.  The Government's Five Year Development Plans were a model for the 
developing world.  Foreign capital was acco rded a central role, though subject to the 
requirements of the National Economic Policy (NEP). 
One of the legacies left by the colonial gove rnment was the distribution of wealth and 
division of labour in which economic power and function were directly related to 
race.  This had caused the racial segregation which lay the seeds of growing discontent among Bumiputra that they were losing their ancestral inheritance 
especially land and becoming economically  marginalized.  The Government  WT/COMTD/M/52 
 Page 9 
 
 
 implemented the NEP to restructure the Malaysian economy over two decades, 1970 
till 1990 with the following aims: 
• To redistribute corporate equity so that the Bumiputra share would rise from 
around 2 per cent to 30 per cent.  The share of other Malaysians would increase marginally from 35 to 40 per cen t, while that of foreigners would 
fall from 63 per cent to 30 per cent; 
• To eliminate the close link between race and economic function and 
restructure employment so that the Bumiputra share in each sector would reflect more accurately their proportion of the total population;  and 
• To eradicate poverty irrespective of race.  In 1970 just under half of all 
households in Peninsular Malaysia had incomes below the official poverty line.  Malays accounted for about 75 per cent of these. 
The principle underlying these aims was that  the redistribution would not result in 
any one group losing in absolute terms, rather it would be achieved through the 
process of economic growth, that is the ec onomy would get bigger, more investment, 
more job opportunities.  The NEP has helped  Malaysia to restructure its commodity 
sectors, disintegrate economic powers from race and the injection of new concept in technology and R&D in e xpanding its commodity sector.  For the economy as a 
whole, these efforts managed to broaden the economic base. 
Malaysia continues to expand its comm odity sector by getting the development 
allocation under the successive Five Year  Plans.  The Government introduces 
schemes, research institutions, national board s and unions to improve its commodity 
sector, to monitor and manage the commodity prices and at the same time improve 
the living and working standa rds of the rural populace.  Institutions such as RISDA, 
FELDA and FELCRA were created. 
While the primary commodity sector would continue to receive developmental aid 
under the Five Year Plans, the main em phasis was a switch to export-oriented 
industrialisation with Malaysia seeking a share in global markets for manufactured 
goods.  Free-Trade Zones were set up where production was encouraged with the 
undertaking that the output would be exported.  Firms locating there received 
concessions such as duty-free imports of raw materials and capitals goods, as well as tax concessions aimed primarily at foreign investors who were also attracted by Malaysia's good facilities, relatively low wa ges and docile trade unions.  A range of 
industries grew up;  textiles, rubber and food products, chemicals, 
telecommunications equipment, electrical and electronic machinery/appliances, car 
assembly and some heavy industries, iron and steel. 
An important point to note was that while  the country pursued these industrialization 
programmes, the resource-based industries i.e. the primary commodity sector was not neglected.  The importance was highlighted in  both the Industrial Master Plans.  The 
sector continues to feature prominently in the country's economic growth, in terms of 
its contribution to the GDP, employment, export earnings as well as higher living 
standards for the rural populace.  In fact, it h as played a significant role in helping to 
cushion the economy from the impact of the previous economic downturn and the present global economic slowdown. WT/COMTD/M/52 
Page 10  
 
 The primary commodity sector has evolved from merely producing and exporting 
primary raw materials to producing semi-processed, processed and finished products, thus generating more value- added products to meet the growing world demand.  
Based on the firm belief that the primary co mmodity sector should remain vibrant in 
order to complement the growth in the manufacturing and services sectors, the 
Government will continue to give due prominence and importance to the 
development of this sector. 
In 2000, the sector's performance was effected  by the decline in the prices of major 
commodities.  This was due to the weakeni ng of market fundamentals, particularly 
those related to the oversupply in the world market of some major commodities.  It's 
contribution dropped by RM2.84 billion or 5.9 per cent compared to RM47.55 billion 
earned in the previous year, primarily due to lower export earnings from palm oil and its related products, rubbe r, cocoa and minerals. 
On the other hand, earnings from forestry and timber products registered increases, 
contributing RM17.70 billion.  Palm oil a nd palm oil products recorded earnings of 
RM14.94 billion, rubber and rubber products  RM8.27 billion, minerals and mineral 
products RM2.12 billion, tobacco RM771.19 million, cocoa and cocoa products 
RM595.10 million and pepper and peppe r products RM362.20 million.  The 
performance of the commodity sector from the period 1990 to 2003 could be illustrated below: 
II. ISSUES AND CHALLENGES 
Like any other primary commodities sector elsewhere, the primary commodity sector 
in Malaysia also faced various issues and challenges.  However, due to proper 
planning and policy implementation, tho se issues and challenges had helped to 
transform and further enhanced the res ilience of the Malaysian commodity sector. 
Price Fluctuation and Adequate Remuneration 
The primary commodities such  as raw materials are often plagued by low and 
unremunerative prices that fluctuate form time to time.  Palm oil prices, for example, fluctuate according to the competition and the supply and demand balance situation in 
the world oilseed, oils and fats market.  This  is the main set-back of palm oil trading 
since the price is difficult to forecast.  Bump er crop will result in price decline.  Crop 
failure on the other hand w ill push prices higher.  Palm oil will suffer most from  
fluctuating prices since it is a perennial crop compared to other oilseeds that are 
annuals.  A key factor in determining pri ce is the global supply and demand situation 
as well as changing global weather patterns that  may affect palm oil production.  In 
addition, the increased production of oils and fats by major producing countries has led to a surplus supply of vegetable oils in the world markets. 
In the case of rubber, its price has also been  subjected to the vagaries of excess supply 
in the world markets, which has depressed  rubber for an extended period of time.  
The unremunerative prices had adversely affected returns to investment in the estate sector and had forced smallholders to find alternative sources of income.  Similarly in the case of cocoa, the international mark et prices have been very volatile and 
depressed in the last decade.  These depress ed prices were largely attributed to the 
structural imbalance of the world cocoa market.  WT/COMTD/M/52 
 Page 11 
 
 
 In order to address the fluctuating low prices of natural rubber, a tripartite 
cooperation between the three major rubber producers, namely Thailand, Indonesia 
and Malaysia was established in 2001.  The purpose of such cooperation is to ensure 
a fair, remunerative and sustainable price level so as to keep the smallholders in the business;  and not too high a price that w ould lead consumers to shift to synthetic 
rubber.  In the future, simi lar cooperation has been pla nned for timber and palm oil 
sectors. 
Market Access 
Primary commodity exports continue to face barriers in the form of tariff peaks, 
discriminatory-tariffs, tariff-escalation and non-tariff barriers such as Sanitary and 
Phytosanitary Measures (SPS) imposed by importing countries.  Although the World 
Trade Organization had addressed some of th ese issues, there still remain obstacles to 
the entry of Malaysian products in some overseas markets.  Fo r instance, importing 
countries impose discriminatory ta riffs on Malaysian palm oil vis-à-vis  other 
competing oils, thereby impeding its accessi bility to some markets.  Likewise, 
Malaysian cocoa beans and products are also subjected to non-tariff barriers in the 
form of health and SPS requirements, which have led to exporters incurring 
additional costs and created unnecessary delays in shipment.  In the case of timber, boycotts and restrictions on the use of tr opical timber and labelling requirements have 
also obstructed market access in several major markets.  In general, non-tariff barriers 
incur additional cost to exporters and cau se unnecessary delay in shipments.  These 
trade barriers should be reduced accordingl y to simplify and facilitate export of 
commodity products to the importing countries.  The establishment of Free-Trade Agreements between Malaysia and ASEAN Dialogue Partners such as China, Japan 
and India would facilitate and accelerate the liberalization process. 
Labour Shortages 
The primary commodity sector, which is still labour-intensive, has been facing a 
problem of labour shortage.  This has been partly due to the migration of labour from 
the agriculture to the manufacturing, construction, services and other economic 
sectors.  In addition, the aging populati on of those involved in the smallholdings 
plantation sector makes this problem more ser ious.  As such, the labour shortage in 
the plantation sector has affected the out put from the various estates and related 
holdings.  Consequently, the upstream sector of the Malaysian commodity sector is 
dependent on unskilled foreign labour.  The ra tio of foreign worker is about two times 
that of the local worker.  In 2003, there were 195,990 foreign workers in the plantation sector, namely palm oil (189,281 workers), rubber (1,640 workers), cocoa (4,400 workers) and tobacco (669 workers). 
Pest and diseases 
Pest and disease problems exist in all of th e commodities.  In cocoa, cocoa pod borer 
can result in considerable crop and income loss to the growers if left uncontrolled.  Judicious insecticide application, planti ng of tolerant materials, good cultural 
practices and management can control it effe ctively.  However, such an effective 
control incurs costs of  about 10 to 20 per cent of the total cost of production.  WT/COMTD/M/52 
Page 12  
 
 Uneconomic Holding Size 
Another constraint is uneconomic holding size, where in the case of rubber, census 
data showed that smallholder holdings average at only about 2.3 hectares.  
Uneconomic holding size compounded by a farm labour shortage amidst an aging population, still characterize the upstream sector of the Malaysian sector. 
Competing Land-Use 
New land for the expansion of oil palm cultiv ation in Peninsular Malaysia is limited 
due to restricted land availability, higher land prices and competition from other industrial activities and urbanization.  Marg inal lands are now being utilized as the 
new development areas with high risk of lowe r yield and higher cost.  In Sarawak, the 
main problems are the land tenure system under the Native Customary Rights, as well 
as peat soils.  The future growth development is therefore focused on Sabah, Malaysia and on investments in palm oil plantation in Indonesia and the Philippines.  
Price Taker 
Raw commodity producers are generally price takers as in the case of palm oil.  
Although palm oil is the largest vegetable o il traded in the word market, it is still a 
price taker to soybean oil which is the world's largest vegetable oil produced and 
consumed.  The world vegetable oil market still refers to the Chicago Board of Trade 
for soybean oil prices since the US oil produ cers sell at a discount to maintain their 
competitiveness and to enable the world popula tion to be fed with cheaper palm oil.  
China, India and Pakistan are expected to have difficulties improving the per capita 
fat intake if they cannot have access to cheaper imports of palm oil. 
Most major agricultural commodity producers in  this region are located in the tropical 
belt.  They also produced similar and/or competing products.  Ma laysia and Indonesia 
are the major world producers of palm o il, while the major producers for natural 
rubber are Thailand and Indonesia.  The Ph ilippines, on the other hand, is a major 
producer of copra and coconut oil, a competi ng product for palm kernel oil.  As palm 
oil production in Indonesia will continue to increase, Malaysia will face competition 
on the export market in the future.  Ma laysia exports palm oil to more than 
120 countries in the world.  However, in r ecent years, Malaysia has lost market share 
in many of the vegetable oil markets.  The Malaysian industry could not match the aggressive marketing efforts of the soybean growers from South America and palm 
oil producers from Indonesia.  Indonesia had increased its export volume 
considerably in the last couple of years. 
III. STRUCTURAL TRANSFORMATION In view of the above issues and constraints,  and with the current global developments 
of open markets and liberalized trading being the order of the day, competition in the 
commodity sector has reached new heights.  In order to remain competitive, the 
Malaysian commodity sector has undergone some structural changes both in the upstream as well as the downstream aspects of the industry.  While economic considerations must take precedence in the formulation of the policies and strategies, 
political and other socio-economic cons iderations cannot be overlooked. 
With the implementation of some structural and organizational changes, the small 
land holders, who had formed the backbone of the country's commodity sector, will  WT/COMTD/M/52 
 Page 13 
 
 
 continue to contribute to the sector.  Production policies and strategies geared to meet 
national goals of ensuring sufficient supply of raw materials for the downstream sector must take cognizance of the needs of the small producers.  Small land holders 
will be encouraged to consolidate th eir holdings.  Land and management 
consolidation by both the private and public  sectors will continue to be given greater 
emphasis in the coming years.  The key to  the success of such schemes will be to 
formulate modes for a win-win situation to both the owners of the land and the party that undertakes to invest in resources to c onsolidate and manage the land.  Public 
sector estate is yet another alternative to cons ider.  This could run parallel with that of 
land and management consolidation. 
Upstream
 
Increase in yield/productivity 
With reduced planted areas and the need to maintain competitiveness, yields must 
increase by various means such as breedi ng, improved exploitation of technologies 
and agronomic practices.  Productivity improvements can be achieved through 
utilizing newer and higher yielding planti ng materials, increased mechanization, 
optimization of fertilizer inputs and est ablishing best plantation management 
practices.  With better planting materials, bigger and more efficient production units and improved delivery system, the average yield should increase from the current level. 
Planting materials 
Apart from improvements in productivity, tole rant planting materials can be used to 
manage pests and diseases.  Planting mate rials that possess desired traits can be 
developed through conventiona l breeding and genetic engineering.  Besides breeding 
of better clones, the adoption of technologies to boost yields also warrants further attention.  The ultimate objective is not onl y to improve income but also to be labour 
and cost saving.  Present technologies must be further improved so they can be more 
commercially attractive.  Biotechnology as the frontier of research and as a new 
source of growth will be further focused to produce genetically improved planting 
materials and commercially hi gh value-added products. 
Cost-effective pest and disease management 
With health and environmental hazards becoming important issues in pest and disease 
control, biological control will be the thrust for research in the management of pests 
and diseases in the commodity sector. 
Efficient production systems 
Increasing cost and labour scarcity affects all economic sectors in Malaysia including 
the commodity sector.  As such, suitable planting patterns and planting materials 
would allow greater uses of farm machinery.   However, the use of farm equipment is 
largely dependent on the topography.  Good ag ronomic practices also contribute to 
higher efficiency in the production system.  Mechanization will enhance workers' productivity and efficiency thus reducing labour dependence and overcoming labour 
shortages as well as lowering the cost of production. WT/COMTD/M/52 
Page 14  
 
 Maximizing land use and income per unit area 
One of the alternatives to expanding planted areas is to go for marginal areas, such as 
hilly land and peat land, which can be cu ltivated cost effectively through extensive 
research and development (R&D).  Furtherm ore, the adoption of integrated farming 
approaches such as intercropping and mi xed farming with livestock would also 
maximize land use to generate additional income to growers.  Mixed farming with 
other crops or activities is an alternative to supplement income.  The hedge-planting 
concept for on-farm integration can continue to be a planting strategy to maximize income per unit area of land. 
Downstream
 
Increased Processing To lessen the impacts of fluctuating commodity prices, Malaysia through its 
industrialization programmes, has embarked on a policy to encourage more downstream processing and adding value to primary commodities.  Such a policy has resulted in a significant and major increase in product transformation and market 
diversification, especially in the palm o il sector.  Up until 1974, the exports of palm 
oil were all in crude form.  Today, 92 pe r cent of exports are in form of various 
processed oils.  Before 1974, Malaysian crude  palm oil markets were mainly in the 
industrially developed countries such as the EU, the US and Japan which are equipped with refining facilities.  With the advent of palm oil refining facilities in 
Malaysia in 1975, Malaysia has successfully diversified its palm oil market to include 
developing countries in Middle East, Africa,  West Asia and East Asia.  Currently 
there are 48 refineries and 17 oleochemical manufacturers in operation.  At the end of 2004, annual operating capacity was 16. 67 million tonnes and 1.82 million tonnes 
respectively. 
Similarly in the rubber sector, encouraging foreign demand backed by strong 
government support through various developm ent strategies spurred the development 
of the rubber product-manufacturing sector .  Since 1985, domestic rubber uptake 
increased more than six-fold to about 488, 233 tonnes in tandem with the increase in 
domestic consumption as local manufacturers  grew in number from 135 to 344 in 
2003.  The policy of diversifying the r ubber product base will further broaden the 
applications into high va lue-added and high technology areas such as engineering and 
the marine, automotive, aeronautical and military sectors.  The strategy is to 
manufacture high-end specialized products where Malaysia has the comparative 
advantage in areas like R&D support, intelligent materials and expertise. 
Product Quality Research 
The commercialization of R&D findings is one ar ea that has yet to be fully exploited.  
R&D undertakings are currently concentrated  in the public sector, namely, research 
institutions and institutions of higher learning.   In order to remain competitive, there 
is also a need for developing a knowledge-based industry through inputs from R&D.  The success of this transformation will depend largely on the identification and 
development of the right products and processes which can be produced efficiently with optimum k-inputs and which are then successfully marketed. 
In the cocoa sector, cocoa powder has a wi de range of uses in the food industries 
sector.  Research undertaken on food-based products includes the development of  WT/COMTD/M/52 
 Page 15 
 
 
 various compounds and sugarless products.  Chocolate products such as power bar 
and omega chocolates are being developed.  The cocoa-based beverages such as three 
in one beverages and cocoa pulp juice ha ve been developed and are ready for 
commercialization.  While in the non-f ood products, among the products developed 
are cocoa gum as a binding agent in foods and pharmaceutical products and cosmetics 
products such as creams and lotions and lip care products. 
In regard to rubber, the rubber products industry has entered into a mature phase.  
With increased competition coming from other countries such as Thailand and China, issues such as creativity, innovativeness, increasing efficiency, reducing costs and 
designing products using special materials will be priorities.  With greater 
competition exacerbated by globalization, market widening and penetration will 
depend on the ability to design customized products that are not only price competitive but are also of high and improved quality.  Market diversification is critical so as not to be held ransom by  a few major markets and to cushion the 
industry from external shocks.  The financia l crisis of 1997 should  be a lesson to be 
remembered. 
Product Diversification 
Palm oil, with its inhere nt techno-economic advantages and proven nutritional values, 
will be able to expand and sustain its market  share in both the edible and non-edible 
sectors.  Increasing consumer preferences world-wide for healthy, biodegradable and environment-friendly products provides bri ght prospects for the palm oil and its 
downstream industries including the oleochemical industry.  This augurs well for the 
production of intermediate consumer products  such as beta-carotene, vitamin E and 
oleochemical products such as in pharmaceutical s, soap, detergent and cosmetics.  In 
addition, there are also good prospects for the utilisation of palm oil biomass to complement the wood-based industry in the manufacture of particleboards, medium 
density fibreboards as well as pulp and paper.  In this respect, palm oil will continue 
to support the development of the food a nd non-food oleochemical industries as well 
as the future development of the wood-based industry. 
Cocoa beans are generally processed and tr ansformed into semi-finished products 
such as cocoa liquor, cocoa butter and coco a powder.  In addition, cocoa liquor, 
cocoa butter and cocoa powder are formulated  with other ingredients to produce food 
products such as pralines and cocoa beverag es.  Cocoa butter is used as one of the 
main ingredients of non-food product such as cosmetics, pharmaceuticals and other toiletries.  A wide range of cocoa-b ased products and packaging are currently 
available locally.  Because of increasing demand by the manufacturers and consumers, a wider range of products will enable the product to be more competitive 
and accepted. 
The combined use of enriched ingredie nts and new concepts in technology and 
packaging will continue to produce high-v alue premium products.  The demand for 
premium products is steadily increasing, even at  a national level.  Health issues also 
play a significant role in product de velopment.  Products, such as sugar-free 
chocolate with high level of anti-oxidant, wh ich can deliver some health benefits are 
increasingly demanded by consumers. WT/COMTD/M/52 
Page 16  
 
 IV. CONCLUSION 
Based on the above discussion, Malaysia has been successful in transforming its 
primary commodities sector from merely producing and exporting primary raw 
materials to producing semi-processed, pro cessed and finished products.  Such a 
transformation was necessary to ensure that  our products remain competitive in the 
global market.  The long-term viability of the primary commodities sector will 
depend on making significant leaps in lo cal processing and taking advantage of 
downstream value-added activities to produce high quality goods. 
Research has shown that there are vast opportunities for developing many more 
downstream value-added products in the co mmodity sector.  Malaysia can be proud 
of the fact that it is a leader in know-h ow and technology for a number of agricultural 
commodities such as palm oil, rubber, coco a and pepper, as well as wood-based and 
tin-based products.  This know-how and technology have been obtained through 
years of collaborative involvement in th e industry by both the private sector and 
Government agencies. 
It is expected that any future expansi on of the plantation sector would have to 
compete for land where other economic activities such as housing, industrial and infrastructure development would also take place.  In view of this, serious consideration will have to be given to i nvest in countries where climatic conditions 
are favourable for the cultivation of prim ary commodity crops.  In fact, some 
Malaysian companies have already gone in to joint-venture projects with their 
counterparts in neighbouring countries like Indonesia, Vietnam, the Philippines and 
Cambodia to develop palm oil and timber-related industries. 
As the country moves along into the 21
st century, it is envisaged that new and more 
challenging issues will emerge.  Even tho ugh Malaysia may currently have the 
technological edge in respect of some co mmodities, appropriate measures will have 
to be taken in order to keep pace with gl obal developments.  Th is will have to be 
done while facing emerging structural cons traints and other related problems.  
Approaches to addressing some of these problems would include improving production capacities, both in terms of quality and quantity through innovative 
technological advancements and strengthen ing the market position with continuous 
proactive strategies and programmes that w ill be responsive to market demands and 
preferences. 
As the country moves towards achieving de veloped country status, the Government 
gives greater emphasis on promoting downstream processing of primary commodities into semi-processed and finished products fo r exports.  This will enable the primary 
commodities sector to grow and contribute to the development of the resource-based 
industry in the country, while at the same time increasing the income of those 
involved in all the related and spin-off industr ies.  In this context, the private sector 
will also be encouraged to play a greate r role in the development of the various 
resource-based industries. 
In terms of development philosophy, the Malaysian economy is based on the system 
of free enterprise, with the public sector playing an active role.  The Government 
provides the broad thrusts and sets the direction for the whole economy to ensure the 
achievement of the socio-economic goa ls.  It focuses on institutional and 
infrastructure developments, maintains a stable economic and political environment 
and carries out the traditional role of government.  The private sector, local and  WT/COMTD/M/52 
 Page 17 
 
 
 foreign, is given the freedom to operate  and participate in the economy and is 
provided with the appropriate policy envir onment and institutional and infrastructural 
support. 
In essence, Malaysia owes it successful economic record to a number of factors: 
(i) geographically it lies close to major world trade routes bringing early 
exposure to the international economy; 
(ii) the economy has always been ex ceptionally open to external 
influences such as globalization.  Foreign capital has played a major role throughout; 
(iii) political stability – the Government has always aimed at managing the 
structure of the economy and simultaneously maintaining inter-ethnic 
stability; 
(iv) since the 1960s the economy has benefited from extensive 
restructuring with sustained growth of exports from both the primary and secondary sectors, thus gaining a double impetus; 
(v) the historic economic factor was also due to a small indigenous 
population and a labour force supplemented by immigrants, mainly from neighbouring Asian countries;  and 
(vi) the quality of national leadership was a crucial factor.  This was 
particularly so during the NEP.  (The leading figure was Dr. Mahathir Mohamed, Malays ian Prime Minister from 1981 to 
2003). 
To further maintain the competitiveness of Malaysia's primary commodities sector 
and to benefit from the knowledge-based econom y, all efforts will also be undertaken 
to upgrade the use of technology, strengt hen public-private sector cooperation, 
improve the organizational and institutional infrastructure and focus on the 
development of a more dynamic and productive human resources sector. 
47. The representative of UNCTAD
 noted that the presentation showed that being a commodities 
exporter was not a curse.  He also said that palm  oil was a product which originated in Africa and had 
successfully been adapted to Asia , just like rubber production which originated in South America and 
then moved to Asia.  He highlighted certain point s in the presentation such as the cooperation between 
the private and the public sector and the successful promotion mechanism for palm oil in India.  He 
also informed Members about the successful defence before Indian courts against a case brought by 
the Indian soy crushers on seeking restrictions on palm oil for health reasons.  He concluded by 
saying that a successful trade diversification pr ogramme such as the one presented by Malaysia 
required conscious effort and planning by the Government. 
48. The representative of Switzerland  asked what was the averag e holding size for oil palm 
plantations.  He also asked whether there had been any foreign investment in the sector by 
multinational companies and what had been the role of the public sector in research and development. 
49. The representative of China  said that this was a good example of how to deal with an 
over-dependency on commodities exports.  He said that China had become a major importer of 
Malaysian palm oil and that although at the beginn ing the Government had had some concerns on the WT/COMTD/M/52 
Page 18  
 
 health effects of the use of palm oil, these we re effectively dispelled by research on the matter 
presented by the Malaysian exporters.  He asked how Malaysia was tackling the problem of land 
scarcity or use for palm oil production ve rsus use for industrial development.  
50. The representative of Australia
 highlighted the significance of improved market access for the 
success of these type of diversification efforts.  He also commended Malaysia for the successful 
marketing of their products undertaken by  both the private and the public sectors. 
51. The representative of India  remarked that India was the largest importer of Malaysian palm 
oil.  He asked about the environmental implications  of palm oil plantations.  He also asked what 
efforts were being made with other regional part ners such as Indonesia to reproduce the Malaysian 
experience. 
52. The representative of the United States  noted that Malaysia had presented a very useful layout 
for structural transformation to address the problems on commodities and move up the value chain.  She asked whether there were certain steps that had been more effectiv e than others or what were the 
most fundamental actions.  She also found it useful  to have the chart with the commodities that 
showed that there was still solid economic activ ity in the sector although the economy's dependency 
on it had declined.  She thought it was important to  underline the efforts made by Malaysia to achieve 
this transformation in an outward looking way while  working with its regional trade partners and 
hopefully ultimately in the multilateral trading system.  She also complemented Malaysia on the creative use of R&D in the processing of by-produ cts and its move into new industries.  This 
presentation helped the Committee to talk more c oncretely on ways to address problems that some 
Members had encountered in commodities trade.  
53. The representative of Egypt
 asked about the relationship between transformation in the 
commodities sector and RTAs.  He also asked whic h criteria were useful when deciding which 
commodities to process and which to export with little or no processing, especially in light of practices like tariff peaks and tariff escalation. 
54. The representative of Kenya
 said Malaysia's presentation provi ded direction on how to deal 
with some of the commodities' issues being faced by certain countries.  She noted that Malaysia's  
presentation focused on a positive experience with palm oil.  However, she said that she would also 
like to hear about the problems faced with other comm odities.  She also noted that diversification was 
dependant on the level of development of the country  and the technology available to it.  Malaysia's 
was a positive experience and she said that Uganda, Tanzania and Kenya were trying to follow the 
same direction on this issue.  She asked the repr esentative of UNCTAD how he believed that the issue 
of price fluctuations would be alleviated with  the successful conclusion of the Doha Development 
Agenda. 
55. The representative of Canada  found it very interesting to see the structural transformation and 
increase on downstream activities that Malaysia had pursu ed in striving for diversification.  He also 
noted UNCTAD's continued interest in the commoditi es sector and its work in coming up with ways 
to increase the value-added component for comm odities producers.  He said Malaysia was a good 
example of how to pursue this from a very wide aspect by looking at different ways to broaden the market appeal of its product.  
56. The representative of the European Communities
 was impressed by the breadth of the 
potential tool box that Malaysia had recourse to  in terms of developing its commodities sector, 
improving its competitiveness and with diversifica tion.  This tool box was both government led and 
private sector led.  He said that it seemed like a large component of these different policies were 
essentially driven at a national level, in terms of policy strategy and choice, although the importance 
of external factors were important.  He was also in terested in hearing the answers to questions relating  WT/COMTD/M/52 
 Page 19 
 
 
 to regional integration and how this played out in  terms of other countries which were operating in 
similar geographic conditions and wh ich would have a comparable co mparative advantage, generating 
the need for specialization by the different regiona l partners.  He also asked what experience there 
was in Malaysia on exporting investment and know-how in terms of commodities production and 
development in other countries. 
57. The representative of the FAO  noted that Malaysia's success was the result of a structural 
transformation begun 20 years ago.  He asked Malaysia what research and development activities 
were being undertaken to maintain competitiveness in  the palm oil sector and also in other products 
like rubber and other commodities. 
58. The Chairman  asked the representative of Malaysia how they acquired expertise in the field 
of commodities trade and what was being done to e nhance it for future development.  He asked the 
representative of UNCTAD if he could highlight ex amples of other developing countries which had 
achieved a similar level of success. 
59. The representative of Malaysia  in response to the question by Switzerland said that they had 
learnt, through their experience with rubber plantati ons that were introduced by the British, that a 
large size was needed to obtain economies of scal e and more competitiveness.  Through research and 
development, it had been determined that for palm oil the minimum plantation size was around 100 
acres.  Smaller holdings of ten acres had been gran ted to individual farmers through the Federal Land 
Development Authority, created with World Ba nk assistance, which provided the necessary planting 
materials and the economic and technological support for the small farmers to be able to manage their 
operations.  This was a fruitful collaboration betw een the private and public sector that had proved 
successful not only in diversifying to palm oil from rubber production but also from cocoa where the 
international market was very depressed.  Therefore, the structural transformation was also driven by 
the international market and foreign trade, si nce the Malaysian market was small.  In its 
transformation, Malaysia had focused on exports, producing at competitive prices and producing what 
the market wanted to buy.  Also, in answer to  Egypt on downstream production, he noted that 
achieving competitiveness in the production of raw materials made it a natural progression for 
Malaysia to move to manufacturing the downstr eam products as well as cheap raw materials which 
could be sourced domestically.   
60. Regarding foreign investment, Malaysia was qu ite open to it.  However, according to the 
Malaysian Constitution for land ownership by foreign nationals, la nd ownership requires 
authorization from the State.  Currently most of the plantations owned by the British companies prior 
to independence had been taken over by the Nationa l Investment Arm of Malaysia.  Among the other 
lessons learned from private-public sector cooperatio n was what was called the ABC institutions.  The 
"A" stood for the associations, which are private se ctor organizations like the Malaysian Palm Oil 
Association and similar associations for other co mmodities which organized the private producers.  
The "B" institutions were the government boards, like the Malaysian Palm Oil Board and similar 
boards for other commodities.  These boards include d representatives and experts from the industry 
across all sectors, be it at the processing or produc tion level, private sector, government sector and 
supporting institutions.  He explained that all the inputs were syne rgized to plan for the future of 
commodity production, including what R&D to c onduct, what downstream products to produce and 
how to satisfy the international market requireme nts.  The "C" stood for the councils which are the 
corporations that do the marketing and promotion of each of the commodities, for example the 
Malaysian Palm Oil Promotion Council, the Ma laysian Timber Council and the Rubber Exports 
Council. 
61. The issue of land shortage was a problem beca use Malaysia was a small country.  There was 
land usage competition in the production of the different commodities, as well as urbanization and industrialization pressures.  There was actually very  little land left for plantation expansion.  This WT/COMTD/M/52 
Page 20  
 
 issue was mostly regulated by the market forces,  thus, a lot of the expansion on the palm oil 
plantations had come as a substitution of rubber and cocoa plantations where the prices had declined. 
62. The representative of Malaysia went on to say that in terms of increasing productivity, the 
Government of Malaysia was trying to achieve this by increasing yield through R&D programmes, 
new technologies and diversifying the products.  There was also a zero waste policy where all by-
products were to be utilized.  
63. Regarding India's interest in palm oil production,  the representative of Malaysia noted that the 
tariffs for palm oil had increased in India's most rece nt budget and, therefore, palm oil exports to India 
from Malaysia had decreased.  China and the Eur opean Communities were now the biggest importers 
of Malaysian palm oil. 
64. On the environment dimension, a great impor tance was placed on environment and Malaysia 
had integrated environmental measures in every step of the production, like for example using 
biological pest controls to eliminate the use of pes ticides.  Additionally, Malaysia had participated in a 
round table of palm oil producers that had set out the criteria for sustainable palm oil production.  This 
had been organized by the Malaysian Palm Oil Pr oducers Association in collaboration with the World 
Wide Fund for Nature (WWF). 
65. Regarding investment by Malaysian companies in  other companies in the region, he said that 
about 30 per cent of palm oil production investment  in Indonesia came from Malaysia, and that 
investments had also been made in  Cambodia, Vietnam and Myanmar. 
66. He continued by saying that on lessons lear ned in managing commodities, what had been 
learned from managing rubber had also been applied to other commodities.  The learning curve had, 
therefore, been shortened.  Institutional s upport was required, as was a focus on research and 
development.  Other important factors included the reliability of supply, the need for quality products, 
and after-sales service and support to consumers.  He said that it was necessary to keep in constant 
touch with the markets and also to try to secure new markets. 
67. Finally, on the future direction of research and development, the challenge was to produce 
what the markets wanted.  Future research and deve lopment would, therefore, be focused on this, and 
would require close monitoring of developments that  took place in the markets.  He also said that 
there would be a focus on identifying new products in biotechnology in collaboration with well-regarded institutions in the field. 
68. The representative of UNCTAD,
 in response to the request of the Chairman for other 
examples of countries that had had success in managi ng their commodities trade, said that experiences 
between countries were varied.  He went on to br iefly describe some examples of success stories and 
the factors that had contributed to these successes.  Firms in Kenya, having  efficiently produced and 
marketed their products, had contributed to a la rge extent to that co untry's success, while the 
government had also played a role through implem entation of a strict and reliable quality control 
system for exports.  In Zimbabwe, a code of g ood practice had been put in place by the exporters 
themselves.  In the case of Colombia, the coffee i ndustry was largely responsible for the successful 
marketing of Colombian coffee.  Brazil had successfully expanded soya production through 
government policy, while Thailand's success in poultry and shrimp was largely due to the actions of a 
single large company.  The key to Botswana's success was in using the rents generated from the 
mineral sector for the long-term development of th e country.  He said that more examples of success 
stories could certainly be provided, and stressed once again that the reasons for success differed from 
country to country.  WT/COMTD/M/52 
 Page 21 
 
 
 69. In response to the representative of Kenya's re quest for clarification about what would happen 
to prices of commodities after a successful conc lusion of the Doha Round, the representative of 
UNCTAD said that prices were expected to rise.  The rise in prices would occur via two channels.  
The reduction in subsidies would be the first channel.   Second, the general liberalization of trade was 
expected to lead to increases in in come, which would in turn lead to  an increase in demand.  He said 
that the rise in prices would be beneficial to producers.   With regard to fluctuations in prices, he said 
he believed that fluctuations w ould be lessened after completion of the Round.  This was because a 
large part of the markets for comm odities was currently not subject to free market forces, and that that 
part of the market which did operate under free mark et conditions bore a high burden of adjustment.  
As the extent of the market operating under free ma rket conditions expanded, the expectation was that 
price fluctuations would be reduced. 
70. The Chairman  requested the views of Members on how to continue the discussions on this 
item at the next meeting. 
71. The representative of Kenya  proposed to have another pr esentation from the Common Fund 
for Commodities that would focus on the problems faced by commodities producing countries and not 
just on the work of the Common Fund for Commoditi es.  He also proposed to have a presentation 
from a Member which had faced problems in diversifying its production. 
72. The representative of the United States  noted there had been a very useful exchange between 
the representatives of Malaysia and UNCTAD.  Theref ore, she proposed to have two presentations at 
the same time on  a success story like Malaysia's or on the problems faced by other countries as suggested by Kenya.  She suggested inviting repr esentatives from the World Ba nk, ITC and also some 
private institutions.  Ultimately, the Committee had to  look at where the WTO could add value to the 
work done on commodities by other agencies. 
73. The representative of the FAO
 noted that his organization was open to contribute to 
discussions by making a presentation on the matter. 
74. The Chairman  concluded that for the next meeting, the Committee should try to find an 
organization that could provide assistance in iden tifying where the WTO could add value to the work 
being done in commodities and also to hear from a Member that has experienced difficulties as a 
commodities exporter.  
75. The Committee so agreed . 
E. PARAGRAPH 51 OF THE DOHA DECLARATION ON IDENTIFYING AND DEBATING 
DEVELOPMENTAL ASPECTS OF THE NEGOTIATIONS , IN ORDER TO HELP ACHIEVE THE 
OBJECTIVE OF HAVING SUSTAINABLE DEVELOPMENT APPROPRIATELY REFLECTED  
76. The Chairman  recalled that at the last regular meeting, the CTD heard a presentation on the 
developmental aspects of Negotiating Group on Rules on the issues of anti-dumping, subsidies and fisheries subsidies.  The Committee would continue to  hear from the rules negotiations but this time in 
regard to Regional Trade Agreements.  He then offe red the floor to the Secretariat for its presentation 
on the developmental aspects of the Negotiati ng Group on Rules, Regional Trade Agreements. 
77. The Secretariat
 made the following presentation: 
Under paragraph 29 of the D oha Declaration, Members are mandated to negotiations 
on RTA rules and procedures, taking into account developmental aspects of RTAs.  
These negotiations concern the provisions contained in Article XXIV of the 
GATT 1994 and the 1994 Understanding on its  Interpretation, in the relevant WT/COMTD/M/52 
Page 22  
 
 paragraphs of the Enabling Clause, and in Article V of the GATS, as well as the 
corresponding procedures. 
In the negotiations, the issue-identifi cation phase proceeded quickly, because 
controversial issues related to RTAs had already been extensively debated in the 
Committee on Regional Trade Agreements (CRT A).  Participants distinguished, at a 
very early stage, those issues that were mo re "procedural" in nature from those that 
had a higher "systemic" or "legal" content.   Procedural issues, in particular "RTAs 
transparency", were identified as priorities for the negotiations.  
The developmental aspects of RTAs have been important to the Group's work, mainly 
in two areas:  the place of RTAs notified under the Enabling Clause vis-à-vis  any 
improved RTA transparency and review process resulting from current negotiations;  
and the inclusion of special and differentia l treatment (S&D) for developing countries 
in some WTO provisions relating to RTAs. 
RTAs transparency 
In the last two years, the Group has consid erably progressed in its consideration of 
various elements aimed at improving "RTA transparency", in particular:  the early 
announcement of RTAs, the timing of formal notification, and a revived, more transparent and efficient RTA review pro cess based on a factual presentation made by 
the Secretariat, instead of by the parti es to the RTAs as is currently the case.   
A number of relatively more technical issu es still need in-depth consideration, in 
particular regarding subsequent notifi cations and reporting, and data needs. 
Another issue still pending concerns the sc ope of any new transparency process:  
firstly, how to deal with those RTAs on whic h the CRTA has not been able to report;  
and, secondly, the extent to which such a process would also apply to RTAs notified 
under the Enabling Clause.  This latter question embodies a number of other issues, concerning, for example, the role of WTO bodies in a revised transparency process, a 
possible adaptation of the procedures for Enabling Clause agreements, and technical 
assistance.  
These issues regarding the scope of a new RTA transparency process will be 
discussed at a later stage, once other elements are clarified. 
RTAs systemic issues 
Negotiations on systemic issues have not reached the same level of progress as those 
on RTA transparency, though from mid-2004 the Group has embarked in a more 
focused discussion of systemic issu es on the basis of a Chairman's Roadmap .  The 
issues more referred to during these discu ssions have been RTAs and development; 
RTAs' coverage (in particular the definiti on of "substantially all trade");  other 
(restrictive) regulations of commerce (in particular matters related to preferential 
rules of origin and safeguards);  the prim acy of the multilateral trading system;  and 
possible negative effects of RTAs on third pa rties.  The Group has also considered the 
question of "grandfathering" existing RTAs and retroactive application of any new 
rules, but it has been generally held that no useful outcome could be achieved on that issue until the negotiations had progressed  significantly.  WT/COMTD/M/52 
 Page 23 
 
 
 Up to know, however, these discussions have not allowed the Group to identify issues 
to be pursued further, and the Chairman h as called upon interested Participants to put 
forward specific proposals that would allow the Group to engage in detailed discussions. 
As to S&D-related issues, three RTA -related proposals were referred to the 
Negotiating Group on Rules by the Chairman of the General Council in May 2003.  
They had been submitted by the African Gr oup and by the LDCs and all referred to 
the Understanding on the Interpretation of Article XXIV of the GATT 1994 .  Since 
referral to the Group, these proposals have been  considered at two formal meetings in 
2003 (June and July).  The specifics of these discussions are reflected in the summary 
records of the Group found in TN/RL/M/9 and TN/RL/M/11. 
Although the Group's discussion was very preliminary, as for various reasons it 
proved difficult to ensure active engagement of the sponsors, the proposals are squarely before the Group and are an in tegral part of its negotiating agenda. 
Several submissions by Participants have dealt, inter alia , on possible development-
related flexibilities.  However, in discussions  held in the context of the Chairman's 
Roadmap , participants considered that, though this matter was of major importance, 
the consideration of S&D elements should take place at a later stage, once progress 
had been achieved on other systemic issues.  
Finally, there has been one submission to the Group fully devoted to S&D.  It was 
circulated by the ACP Group of States (T N/RL/W/155).  That submission, which 
contained a number of proposed additi ons/changes in GATT Article XXIV to 
incorporate S&D treatment for developing co untries, was discussed in two formal 
meetings (TN/RL/M/15 and TN/RL/M/15/ Corr.1 and TN/RL/M/16), and a formal 
submission was received commenting on it (TN/RL/W/165).  The ACP Group of States have indicated that they are working on a new proposal that would be more 
precise and would take into account many of  the comments made by Participants. 
78. The representative of the United States
 noted that the CRTA had intensified the review 
process lately.  She asked what w as meant by unadopted reports.  
79. The Secretariat  clarified that all agreements notifie d under Article XXIV had been factually 
reviewed by the CRTA but none of them had been  approved and some had not even had a report 
drafted.  The issue then arose on what to do with  those previously reviewed agreements once new 
rules were in place. 
80. The representative of Zambia  asked what was the time-frame for dealing with developmental 
aspects of RTAs such as those noted in the ACP proposal. 
81. The Secretariat  clarified that priority had been plac ed on the transparency aspect but other 
systemic issues had not been put aside.  Some new precise proposals were expected on these other 
aspects as well as a revised proposal from the ACP countries.   
82. The representative of Egypt  asked for more information on the development dimension of 
RTAs, on what was the expected outcome of the ne gotiations and how could th is help development. 
83. The Secretariat  said that these questions should be answered by Members and that the 
development aspects of RTAs had not yet been tackled.   WT/COMTD/M/52 
Page 24  
 
 84. The representative of Zambia
 said that although the Secretariat's report should be factual, he 
wanted to have a more comprehensive report on how the different proposals, such as the ACP 
proposal, and the negotiations as a whole would impact development. 
85. The representative of the United States  noted that the RTAs Group was moving slowly 
towards addressing the substantive questions where the developmental aspects of RTAs would be 
discussed, like the ACP proposal. 
86. The representative of Switzerland  said that in the Negotiating Group on RTAs, things were 
not clear at all.  Therefore, it was difficult to talk about developmental aspects of the RTA 
negotiations.  However, it was possible to talk ab out the economic development function of RTAs in 
general for developing countries.  There were some qu estions that would be interesting to discuss, for 
instance, how much trade diversion and trade creation took place with RTAs.  Or, whether RTAs 
between unequal partners were more beneficial for development.  Also, whether in RTAs there were 
internal preferences or special and differential treatme nt.  This would be the best way to proceed since 
to talk about the developmental issues in RT A negotiations at this stage was hopeless.  
87. The representative of Egypt  supported the comments made by Switzerland.  He noted that the 
Committee could have a factual presentation on the st ate of the negotiations but what would be better 
would be to discuss the more substantive aspects of how these issues impacted on development.  These could even be presented by the Secretariat as th at would not mean that it was taking a position.  
A discussion on the issues that were noted by Swit zerland was exactly what he was hoping to hear, 
and what he thought would lead to a fruitful contribution by the Committee under the paragraph 51 
mandate.  
88. The representative of Zambia
 said that the CTD could discuss what were the expectations of 
developing countries for the outcome of the RTA negotiations.  He also offered to make a 
presentation on the developmental aspects that  were contained in the ACP proposal.  
89. The Chairman  said that the Secretariat could only be factual in its presentations but that more 
was expected from the work of the CTD.  He, therefore, suggested inviting speakers from other 
organizations or from the Members to try to help  the discussions in the Committee.  He asked the 
representative of Zambia to clarify his proposal. 
90. The representative of Zambia  said that he would like to make a presentation on the 
developmental aspects that were contained in the ACP proposal. 
91. The representative of Egypt  suggested inviting a speaker from the World Bank to talk on the 
studies that had been done on the impact of RTAs on development.  He also said that the Committee 
could meet informally to discuss how to con tinue the work under the paragraph 51 mandate. 
92. The representative of the United States  cautioned against what she saw as transferring the 
RTA negotiations to the Committee. 
93. The representative of Kenya  expressed support for the proposal by the representative of 
Zambia.  He also said that the Committee could revi sit some of the issues that had been discussed 
some time ago, like agriculture, NAMA and services to  look at the most recent developments in those 
negotiations.  He also agreed with the proposal of  having an informal meeting to discuss how to 
continue the work under the paragraph 51 mandate 
94. The representative of Canada  also warned against discussing in the Committee issues that 
were at a further stage in other negotiating groups.  He said he saw the work of the Committee as one 
where issues would be discussed at a high intellectual level where there would be a balance of views  WT/COMTD/M/52 
 Page 25 
 
 
 presented on various aspects affecting the negotiati ons broadly.  He said he agreed with the 
Chairman's idea to invite speakers from other organi zations to talk on some development issues.  He 
also agreed that the discussion on how to advan ce the work of the Committee on paragraph 51 could 
take place at an informal meeting to be held in the future. 
95. The representative of the European Communities  said that Members should allow the 
negotiating groups to do their work.  He also agre ed with the representative of Switzerland that the 
Committee could discuss the developmental aspects of RT As in general.  He noted that RTAs was an 
area where the work in the Negotiating Group on Ru les needed to catch up to the progress made in 
other negotiations and that maybe it was better to let the Rules Group do its work. 
96. The representative of Zambia  noted that the negotiations on RTAs were far from having been 
concluded and that his intention was not to transfer  those negotiations to the Committee but to discuss 
the proposal at an intellectual level. 
97. The representative of Australia  suggested including the issu e of TRIPs in the discussions 
under paragraph 51 as this topic had no t yet been discussed in the Committee. 
98. The representative of Cuba  said that it was not helpful to continue to evade getting to the 
substance of the mandate under paragraph 51 by continuing to discuss issues of process.  She 
suggested listening to what the representative of Zambia wanted to say on the ACP proposal on 
RTAs.  
99. The Chairman  concluded by proposing to hold an info rmal meeting to discuss how to proceed 
with the mandate given to the Committee in para graph 51 of the Doha Ministerial Declaration. 
100. It was so decided .  
F. ELECTRONIC COMMERCE  
101. The Chairman  recalled that at the Committee's meeting in September, it was decided to invite 
a representative of the International Telecommunica tions Union to speak on the latest developments 
in the preparation of the second phase of the Worl d Summit of the Information Society that would 
take place in Tunisia in 2005.  Since the expert w as unavailable, the Chairman proposed to revert to 
this item at the next regular meeting of the Committee. 
102. It was so decided . 
G. GRADUATION OF THE MALDIVES FROM LDC  STATUS (WT/COMTD/W/128) 
103. The Chairman  recalled that this item had been on the agenda of the previous meeting of the 
Committee.  Unfortunately, the delegation of the Maldiv es had not been able to travel to Geneva to be 
present at that meeting and it had been decided that this issue would be taken up at this meeting.  
However, the delegation of Maldives had sent a s ubmission to the Committee on the effects of the 
Indian Ocean tsunami on the Maldivian economy.1  The Chairman noted that he had been in contact 
with the Maldives' delegation and they had said that  their work on a plan for a smooth transition to 
developing country status was continuing.  He expressed his sympathy on behalf of the Committee 
with the Government of the Maldives on the unfortu nate loss inflicted by the December tsunami and 
hoped that all of the affected countries would recove r as quickly as possible.  He suggested reverting 
to this item at the next meeting of the Committee.   
                                                      
1 This document was later circulated as WT/COMTD/52. WT/COMTD/M/52 
Page 26  
 
 104. It was so decided
.  
H. PARTICIPATION OF THE DEVELOPING ECONOMIES IN THE GLOBAL TRADING SYSTEM 
(WT/COMTD/W/136) 
105. The Chairman  reminded Members that under this agenda  item, the Secretariat had prepared a 
note circulated to Members as document WT/COM TD/W/136 and Corrigendum 1.  This note had 
been prepared to assist the Committee with its re quirement to keep under continuous review the 
participation of developing economi es in the multilateral trading system.  The note highlighted salient 
features of developing economies' trade, focusing ma inly on the period 2000-2003.  It also touched 
upon various issues including the participation in merchandise trade by each of the developing 
country regions, participation in world trade in se rvices, as well as a specific section on LDCs.  He 
recalled that at the previous meeting of the Comm ittee, it was decided to c ontinue discussions on this 
paper at a future meeting to allow more time fo r Members to study the content of the paper. 
106. The representative of the United States  noted that the paper by the Secretariat was interesting 
and presented a lot of information that would be very  useful in assisting the work of the Committee.  
She, therefore, suggested to allow for more time to  study the paper and defer its discussion to the next 
meetings of the Committee. 
107. The Chairman  proposed to revert to this item at the next meeting for further discussions. 
108. It was so decided . 
I. ELECTION OF THE CHAIRPERSON OF THE SUB-COMMITTEE ON LEAST -DEVELOPED 
COUNTRIES  
109. In regard to the election of the Chairperson of the Sub-Committee on Least-Developed 
Countries (LDCs), the Chairman  said he had been informed that consultations by the LDC Group had 
led to a proposal for H.E. Mr. Ian de Jong, Ambass ador of the Netherlands, to serve a second year as 
the Chairman of the Sub-Committee.  He asked wh ether this would be agreeable to the Committee. 
110. It was so agreed . 
111. The Chairman recalled that  Ambassador de Jong had vast di plomatic experience.  Before 
taking up his post as Ambassador in Geneva, he  served as Deputy Permanent Representative of 
the Netherlands to the European Un ion in Brussels and as Minister Plenipotentiary at the Netherlands' 
Embassy in Bonn.  He had served in several other capitals including the Hague, Washington, 
Khartoum, and Beirut.  He had also served as an Ex ecutive Director of the Inter-American Investment 
Corporation in Washington.  Ambassador de Jong's vast experience had been a valuable asset to the 
work of the Sub-Committee.  
112. The Chairman reminded Members that the next  meeting of the Sub-Committee was scheduled 
for 10 March 2005. 
J. OTHER BUSINESS  
113. The Chairman  recalled that he had requested the inclusion of an item under other business 
concerning a presentation by NEPAD at the Committee's next meeting in May.  He noted that the 
New Partnership for Africa's Development (NEPAD)  was a development policy framework adopted 
by African Heads of State and Governments in July 2001.  It was a commitment by African leaders to 
eradicate poverty and to place Africa on a path of sustainable growth and development.   WT/COMTD/M/52 
 Page 27 
 
 
 114. The Chairman recalled that the Head of the NEPAD Secretariat was invited to make a 
presentation to Members at the 41st Session of the CTD in July 2002.  At that time, this was 
considered to be very useful.  In recent contact s that had taken place be tween the WTO Secretariat 
and the NEPAD Secretariat, it was considered that it  could again be useful to have such a presentation 
given to the CTD by the Head of the NEPAD Secr etariat.  The main purpose would be to brief 
Members on their development work as well as the ch allenges they are encountering.  He, therefore, 
proposed that the CTD invite the NEPAD Secretariat to the next session of the Committee in May for 
a follow-up presentation.   
115. It was so agreed .  
K. ELECTION OF THE CHAIRPERSON OF THE CTD 
116. The Chairman  noted that the outgoing Chairman of the General Council, Ambassador Oshima 
had announced the previous week at the General C ouncil meeting that his cons ultations had led to the 
choice of H.E. Mr. Gomi Senadhira of Sri Lanka to be elected as Chairm an of the Committee on 
Trade and Development. 
117. The Committee elected  H.E. Mr. Gomi Senadhira of Sri Lanka as Chairman of the Committee 
on Trade and Development.   
118. The Chairman  recalled that Ambassador Senadhira ha d wide diplomatic as well as technical 
experience.  Prior to his arrival in Geneva in Ja nuary 2004, he had served as his country's Minister 
(Commercial and Economic Affairs) at the Mission of Sri Lanka  to the European Communities in 
Brussels where he worked for three years.  Before serving in Brussels, he held from 1998 to 2001 the 
post of Minister at the Sri Lankan Embassy in Washington D.C..  In addition to his wide diplomatic 
experience, Ambassador Senadhira also had a s ound technical knowledge of trade issues which he 
gained between 1995 and 1997 when he served as Deput y Director and Head of the Research and 
Development Division of the Department of Commerce in Sri Lanka. 
119. The Chairman reminded Members that the ne xt meeting of the CTD was scheduled for 
11 May 2005. 
120. The meeting was adjourned . 
 
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