RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/COMTD/M/70 
15 September 2008 
 
 (08-4256) 
Committee on Trade and Development 
Seventieth Session  
 
 
NOTE ON THE MEETING OF 15 JULY 2008 
 
Chairman:  H.E. Mr. Shree B.C. Servansing (Mauritius) 
  
A.
 ADOPTION OF THE AGENDA .........................................................................................................2  
B. OBSERVERS ............................................................................................................................... ...2 
(i) Request for attendance of ad hoc observers ...............................................................................2  
(ii) Further consideration of the requests for observer status by the League of Arab 
States, the Organization of the Petroleum Exporting Countries (OPEC), the Gulf 
Organization for Industrial Consulting, the Organisation Internationale de la 
Francophonie, the Common Fund for Commodities, the Organization of Arab Petroleum Exporting Countries (OAPEC) and th e Groupe de la Banque Africaine de 
Développement.................................................................................................................. ..........3
 
C. REPORT OF THE 41ST SESSION OF THE JOINT ADVISORY GROUP ON THE INTERNATIONAL 
TRADE CENTRE UNCTAD /WTO (ITC/AG(XLI)/216)........................................................................3  
D. NOTIFICATIONS UNDER THE ENABLING CLAUSE .........................................................................4  
- COMMUNICATION FROM BRAZIL ON THE REVISED GENERALIZED SYSTEM OF PREFERENCES SCHEME OF THE EUROPEAN COMMUNITIES 
(WT/COMTD /57/ADD.1).....................5  
- COMMUNICATION FROM CHINA ON THE REVISED GENERALIZED SYSTEM OF PREFERENCES SCHEME OF THE EUROPEAN COMMUNITIES 
(WT/COMTD /57/ADD.2).....................5  
- COMMUNICATION FROM INDIA ON THE REVISED GENERALIZED SYSTEM OF PREFERENCES SCHEME OF THE EUROPEAN COMMUNITIES 
(WT/COMTD /57/ADD.3).....................5  
- COMMUNICATION FROM PAKISTAN ON THE REVISED GENERALIZED SYSTEM OF 
PREFERENCES SCHEME OF THE EUROPEAN COMMUNITIES (WT/COMTD /57/ADD.4).....................5  
- COMMUNICATION FROM THE EUROPEAN COMMUNITIES – RESPONSES TO QUESTIONS 
SUBMITTED BY BRAZIL , CHINA , INDIA AND PAKISTAN ON THE REVISED GENERALIZED 
SYSTEM OF PREFERENCES SCHEME OF THE EUROPEAN COMMUNITIES 
(WT/COMTD /57/ADD.5) ................................................................................................................5  
- COMMUNICATION FROM THE UNITED STATES ON THE NOTIFICATION BY CHINA OF THE 
AMENDMENT TO THE FIRST AGREEMENT ON TRADE NEGOTIATIONS AMONG DEVELOPING MEMBER COUNTRIES OF TH E ECONOMIC AND SOCIAL COMMISSION FOR 
ASIA AND THE PACIFIC 
(BANGKOK AGREEMENT ) (WT/COMTD /62/ADD.1)...................................6  
- COMMUNICATION FROM CHINA – RESPONSES TO THE QUESTIONS POSED BY THE 
UNITED STATES ON THE ASIA -PACIFIC TRADE AGREEMENT (APTA ) 
(WT/COMTD /62/ADD.2) ................................................................................................................6  
- AGREEMENT ON TRADE , COMMERCE AND TRANSIT BETWEEN INDIA AND BHUTAN – 
NOTIFICATION BY INDIA (WT/COMTD /N/28) ................................................................................7  WT/COMTD/M/70 
Page 2  
 
  -
 COMMUNICATION FROM BRAZIL ON THE GENERALIZED SYSTEM OF PREFERENCES 
SCHEME OF NORWAY (WT/COMTD /65).........................................................................................7  
E. DECLINING TERMS OF TRADE FOR PRIMARY COMMODITIES , AND ITS IMPLICATION TO 
TRADE AND DEVELOPMENT OF PRIMARY COMMODITY EXPORTING COUNTRIES ........................8  
F. DECISION ON TRANSPARENCY FOR PREFERENTIAL TRADE ARRANGEMENTS (WT/L/672)............9  
G. REVIEW OF STEPS T AKEN TO PROVIDE DUTY -FREE AND QUOTA -FREE MARKET ACCESS 
TO LEAST -DEVELOPED COUNTRIES .............................................................................................9  
H. TECHNICAL COOPERATION AND TRAINING ................................................................................10  
(i) Annual Report on Technical Assistance and Training, 1 January to 31 December 
2007 (WT/COMTD/W/165).......................................................................................................10  
(ii) Technical Cooperation Audit Repor t for 2007 (WT/COMTD/W/166)......................................10  
I. OTHER BUSINESS .......................................................................................................................12  
 
 A. 
ADOPTION OF THE AGENDA  
1. The Chairman  said that the draft agenda for the 70th Session of the Committee on Trade and 
Development (CTD) was contained in document WT O/AIR/3210/Rev.1 issued on 9 July 2008.  He 
also drew Members' attention to a corrigendum c ontained in document WTO/AIR/3210/Rev.1/Corr.1.  
He recalled that Members had agreed at the last meeting to revert to the matter raised by the 
European Communities (EC) concerning the change in  the notification status of the Gulf Cooperation 
Council (GCC) Customs Union from Article XXIV of GATT 1994 to the Enabling Clause.  He 
proposed that this matter be considered at the pres ent meeting under "Other Business".  He said that 
he also wished to add a matter under "Other Bu siness" concerning the Work Programme on Small 
Economies, in particular to assess the status of this work programme and to seek the guidance of 
Members as to when the CTD could meet in Dedicat ed Session to consider issues relating to small 
economies. 
2. The agenda was adopted  as amended. 
B. OBSERVERS  
(i) Request for attendance of ad hoc observers 
3. The Chairman  recalled that at previous sessions of the CTD, Members agreed to invite a 
number of intergovernmental organizations on an ad  hoc, meeting-by-meeting basis.  These included 
the Arab Maghreb Union (AMU), the Common Fund for Commodities (CFC), the Economic 
Community of West African States (ECOWAS), th e Economic Cooperation Organization (ECO), the 
Inter-Arab Investment Guarantee Corporation, th e Islamic Development Bank (IDB), the African 
Union (AU), the Organization of the Islamic Conference (OIC), the South Centre, the Pacific Islands Forum, the United Nations Environment Progra mme (UNEP), the West African Economic and 
Monetary Union (WAEMU) and the World Intellectua l Property Organization (WIPO).  He said that, 
following the decision taken at the previous meeti ng of the Committee, the organizations had been 
invited to the present meeting.  He proposed that the organizations be invited to the next formal 
meeting of the CTD. 
4. It was so agreed
.  WT/COMTD/M/70 
 Page 3 
 
 
  (ii) Further consideration of the requests for observer status by the League of Arab States, the 
Organization of the Petroleum Exporting Countries (OPEC), the Gulf Organization for Industrial Consulting, the Organisation Int ernationale de la Francophonie, the Common 
Fund for Commodities, the Organization of Arab Petroleum Exporting Countries (OAPEC) and the Groupe de la Banque Africaine de Développement 
5. The Chairman
 said that at previous meetings, the Committee had had before it a number of 
requests for observer status.  He said that if there was no change in positions to extend observer status 
to any of those applicants, then the Committee would take note and would revert to those requests at 
the next meeting.   
6. It was so agreed . 
C. REPORT OF THE 41ST SESSION OF THE JOINT ADVISORY GROUP ON THE INTERNATIONAL TRADE 
CENTRE UNCTAD /WTO (ITC/AG(XLI)/216) 
7. The Chairman  invited Ms. Eva Murray, Director of the Division of Programme Support in the 
International Trade Centre UNCTAD/WTO (ITC), to present the report of the 41st Session of the Joint 
Advisory Group (JAG). 
8. The ITC representative  said that the JAG had held its 41st Session from 4 to 
5 December 2007.  The report of the meeting was contained in document ITC/AG(XLI)/216.  She had the pleasure of submitting the report to the CTD on  behalf of the Chair of the JAG, Ambassador 
Malloum Bamanga Abbas of Chad.  
9. She said that the JAG had been  convened to discuss the ITC's Consolidated Programme 
Document (CPD) for 2008 and 2009, and to consider options for a new ITC governance structure.  
The meeting had also provided the opportunity for government  representatives to announce their trust 
fund contributions to the ITC for 2008 and 2009.  In their opening statements, the Director-General of 
the WTO and the Secretary General of UNCTAD had expressed their full support to the ITC.  They 
had, in particular, supported the efforts of the ITC' s Executive Director to im prove the efficiency and 
effectiveness of the organization through the refo rm process that was being implemented.  The CPD 
was seen as a step in the right direction, illustrating how the ITC could respond to its clients' needs.   
10. She continued by saying that the ITC's Executiv e Director had informed the JAG that the 
organization had consulted widely with its stakeholders in Geneva  and in partner countries in the 
course of 2007.  Results of a client survey had sh own that the ITC was considered efficient in serving 
its clients, but needed to engage more with them to be able to pr ovide tailored solutions.  This 
required the organization to build common valu es among staff at all levels, strengthen key 
management functions and have a more results-based approach to its work.  The ITC's new vision had 
been defined as "Export Impact for Good".  The orga nization's focus would continue to be on LDCs 
and Sub-Saharan Africa, particularly land-locked  countries, small island states and post-conflict 
countries.  Five new business lines had been defined.   The ITC was also working very closely with 
UNCTAD and the WTO in joint programmes such as th e Integrated Framework, the Joint Integrated 
Technical Assistance Programme (JITAP) and Aid for Trade, and was closely following the One UN 
initiative.     
11. On the change management process, the ITC's Ex ecutive Director had informed the JAG that 
the organization was developing a competency-based performance appraisal system for staff.  In 
addition, a new organizational structure was about to be put into place.  A four-year strategic plan would also be developed, and results-based manageme nt would become an integral part of strategic 
planning and project management processes.  Th e Group was also given an overview of the ITC's WT/COMTD/M/70 
Page 4  
 
  actual and projected funding, including a presentation on the evolution of the organization's resources 
from the 2000 to 2001 biennium to the 2008 to 2009 biennium.   
12. She said that the JAG had generally complimented the ITC on the quality of the CPD, but had 
also agreed that further refinement was required in some areas.  The JAG had also stressed the 
demand-driven nature of the ITC, and had called upon  it to focus on its comparative advantage while 
at the same time seeking greater coherence with partners and avoiding duplication.  The ITC was 
identified as an important vehicle for Aid for Trade.   She added that detailed comments were made on 
the organization's regional strategies.    
13. On governance issues, she said that a recent ex ternal evaluation of the ITC had recommended 
a review of the organization's governance structure.  In this regard, the ITC had facilitated discussions 
on alternative arrangements, including through th e preparation and circulation of background and 
position papers.  Following some discussion, the JAG had agreed that its annual meeting would take 
place in December of each year, with shorter sessi ons.  The ITC's financial reporting year would be 
aligned to the regular budget cycle, from 1 Janua ry 2008 to 31 December 2009.  A new ITC Trust 
Fund would be established as of 1 January 2008, an d discussions amongst interested parties would be 
convened in early 2008 on a possible new Consultative Board.  
14. Finally, she mentioned that government  representatives had announced voluntary 
contributions to the ITC.  In this regard, she thanked Canada, China, Denmark, Finland, France, 
Germany, the Netherlands, New Zealand, Norw ay, the Organisation Internationale de la 
Francophonie,  Sweden and  Switzerland for their financial support to the organization.     
15. The representative of th e European Communities
 expressed his support for the work of the 
ITC.  
16. The representative of Canada  observed that the ITC had recently been going through a 
complex change management process.  He noted with appreciation that these changes were beginning to yield results.   
17. The Committee took note
 of the report of the 41st Session of the JAG and forwarded  it to the 
General Council for adoption.  
D. NOTIFICATIONS UNDER THE ENABLING CLAUSE  
18. The Chairman  said that he wished to provide th e Committee with a brief update on some 
matters concerning recent notifications of region al trade agreements (RTAs) under the Enabling 
Clause, and their consideration in the CTD.  He firstly informed Members that since the last CTD 
meeting, a new notification of an RTA under th e Enabling Clause had been circulated.  The 
notification related to the Pakistan-Sri Lanka Ag reement, and had been circulated in document 
WT/COMTD/N/27.  It was envisaged that the agre ement would be considered in a Dedicated Session 
of the CTD in June 2009.  
19. He also recalled that he had mentioned at the last CTD meeting that the Egypt-Turkey 
Agreement and the GCC Customs Union were scheduled  to be considered in a Dedicated Session of 
the CTD in October 2008.  As a follow-up, he info rmed Members that the factual presentation on the 
Egypt-Turkey Agreement had been drafted by th e Secretariat.  Preliminary comments had been 
received from the Parties, and some remaining qu estions were currently being resolved.  The 
Secretariat hoped to circulate the factual presentation on this agreement to Members shortly.  Turning 
to the GCC Customs Union, he said that the fact ual presentation concerning this agreement had not 
yet been prepared, because the Secretariat had not as yet been provided with the required data needed 
to complete the factual presentation.  He urged the members of the GCC to provide the necessary  WT/COMTD/M/70 
 Page 5 
 
 
  information to the Secretariat as soon as possible to make sure that consideration of this RTA 
remained on schedule and was completed within th e one-year period required under the Transparency 
Mechanism for RTAs. 
20. Also on the matter of the GCC Customs Union, he informed Members that he had written a 
letter to the Saudi Arabian Ambassador after the last CTD meeting, laying out a number of points 
relating to the consideration of this agreement in th e CTD.  He had requested that the Parties to the 
GCC Customs Union provide the Secretariat with  the data necessary to prepare the factual 
presentation.  In his letter, he had also referred to  the notification concerning the Pan-Arab Free Trade 
Area Agreement – which, as he had informed Memb ers at the last meeting, had still not been 
circulated due to some missing information – and ha d requested that the Parties to this agreement 
provide the necessary information to the Secretar iat which would allow the notification to be 
circulated.  He said that he would continue to re main in contact with the Saudi Arabian Ambassador 
on these issues, and would keep th e Committee inform ed as necessary. 
- COMMUNICATION FROM BRAZIL ON THE REVISED GENERALIZED SYSTEM OF 
PREFERENCES SCHEME OF THE EUROPEAN COMMUNITIES (WT/COMTD /57/ADD.1) 
- COMMUNICATION FROM CHINA ON THE REVISED GENERALIZED SYSTEM OF 
PREFERENCES SCHEME OF THE EUROPEAN COMMUNITIES (WT/COMTD /57/ADD.2) 
- COMMUNICATION FROM INDIA ON THE REVISED GENERALIZED SYSTEM OF 
PREFERENCES SCHEME OF THE EUROPEAN COMMUNITIES (WT/COMTD /57/ADD.3) 
- COMMUNICATION FROM PAKISTAN ON TH E REVISED GENERALIZED SYSTEM OF 
PREFERENCES SCHEME OF THE EUROPEAN COMMUNITIES (WT/COMTD /57/ADD.4) 
- COMMUNICATION FROM THE EUROPEAN COMMUNITIES – RESPONSES TO QUESTIONS 
SUBMITTED BY BRAZIL , CHINA , INDIA AND PAKISTAN ON THE REVISED GENERALIZED 
SYSTEM OF PREFERENCES SCHEME OF THE EUROPEAN COMMUNITIES 
(WT/COMTD /57/ADD.5) 
21. The Chairman  recalled that the EC had notified its revised Generalized System of Preferences 
(GSP) scheme at the 57th Session of the CTD.  Communications raising questions on the EC's revised 
GSP scheme had been received from Brazil, China, India and Pakistan and were circulated in documents WT/COMTD/57/Add.1 to Add.4, respectivel y.  The EC's responses to the questions were 
circulated in document WT/COMTD/57/Add.5.  It ha d been agreed at the last CTD meeting that he 
would continue his informal consu ltations on this matter and would report back to the Committee.  In 
this regard, he said that his consultations indicated that more time would be required before this item 
could be taken off the CTD's agenda.  He inquired whether any Member wished to take the floor.  
22. The representative of Pakistan
 said that the EC's responses to a second set of questions posed 
by Pakistan in November 2006 had only been recei ved by her delegation in February 2008.  She 
added that the responses were not satisfactory, and that the issues raised in the questions had been 
side-stepped.  She believed that the EC's curr ent special incentive arrangement for sustainable 
development and good governance ('GSP-plus') – which would terminate on  31 December 2008 – 
was based on non-objective criteria, for example allo wing only a "closed list" of countries to benefit. 
Countries that ratified the same conventions afte r the stipulated date did not qualify for the 
arrangement.  Now that the EC was in the process of  revising its regulations and the eligibility criteria 
for the next phase of its GSP scheme, she said that Pakistan had two specific questions.  First, she 
noted that one of the EC's eligibility criteria fo r the GSP-plus arrangement required demonstration 
that an economy was "dependent and vulnerable".  However, the definition and criteria used for 
qualifying as "dependent and vulnerable" were not tran sparent.  In this regard, she inquired whether it WT/COMTD/M/70 
Page 6  
 
  was intended to bring more transparency in the revised scheme by reviewing these criteria.  Second, 
she observed that another of the criteria for elig ibility under the arrangement was that countries should 
have ratified a stipulated number of conventions by 31 October 2005.  In the context of the EC's new 
GSP scheme, she asked whether adequate notice w ould be given to allow interested countries the 
opportunity to ratify these conventions before 1 January 2009. 
23. The representative of Brazil
 said that his delegation was still analyzing the information that 
had been provided to it by the EC.  He added, however, that this information had not answered 
Brazil's questions satisfactorily.  He also recalled that his delegation had previously requested the EC 
to provide trade data for 2007.  Since this data had still not been made available, his delegation was 
once again making the same request.  He looked forw ard to continuing the discussion at the next CTD 
meeting.  
24. The representative of India  said that the relevant authorities in India had  examined  the 
information that had been provided by the EC in document WT/COMTD/57/Add.5.  Since the 
responses were neither precise nor clear and did not fully respond to India's queries, he informed the Committee that his delegation had submitted follow-up questions, relating particularly to transparency 
and objectivity.  While the EC had responded to  these follow-up questions, India was now seeking 
further clarifications, and was awaiting a response fr om the EC in this regard.  He added that his 
delegation supported the points made by Pakistan concerning the EC's GSP scheme.  He requested 
that this item remain on the agenda for the next CTD meeting. 
25. The representative of the European Communities
 said that his delegation had already replied 
on a number of occasions to the concerns that ha d been raised by some Members on the EC's GSP 
scheme.  He listed the eligibility criteria for the G SP-plus arrangement – whic h, he pointed out, had 
already been provided as part of the EC's notification of its GSP scheme – and stressed that his delegation believed these were objective criteria.  On Brazil's request for 2007 trade data, he said that 
his delegation would provide such data on a bilatera l basis when it became available.  He added, 
however, that the baseline calculations concerning an y graduation decisions at this time could not 
possibly have taken into account figures for the year  2007.  With regard to the EC's new GSP scheme 
which would be implemented in the years 2009 to  2011, it was expected that the regulations 
concerning this scheme would be approved very s hortly by the Council of the European Union.  
Applications for the new GSP-plus arrangement need ed to be submitted by 31 October 2008.  The list 
of GSP-plus beneficiaries would be  established at the end of 2008.  
26. The Chairman
 said that he would continue with his informal consultations, and would report 
back to the CTD at the next meeting.  The present ite m would, therefore, remain on the CTD's agenda.   
27. It was so agreed . 
- COMMUNICATION FROM THE UNITED STATES ON THE NOTIFICATION BY CHINA OF THE 
AMENDMENT TO THE FIRST AGREEMENT ON TRADE NEGOTIATIONS AMONG DEVELOPING MEMBER COUNTRIES OF THE ECONOMIC AND SOCIAL COMMISSION FOR 
ASIA AND THE PACIFIC 
(BANGKOK AGREEMENT ) (WT/COMTD /62/ADD.1) 
- COMMUNICATION FROM CHINA – RESPONSES TO THE QUESTIONS POSED BY THE 
UNITED STATES ON THE ASIA -PACIFIC TRADE AGREEMENT (APTA ) 
(WT/COMTD /62/ADD.2) 
28. The Chairman  recalled that China, on behalf of the Participating States of the Asia-Pacific 
Trade Agreement (APTA), had introduced a notification at the 65th Session of the CTD concerning 
the Amendment to the First Agreement on Trade Negotiations Among Developing Member Countries 
of the Economic and Social Commission for Asia and the Pacific (Bangkok Agreement).  A  WT/COMTD/M/70 
 Page 7 
 
 
  communication from the United States raising ques tions on the notification was subsequently  
circulated in document WT/COMTD/62/Add.1.  Responses from China to the questions had been 
circulated in document WT/COMTD/62/Add.2.  He recalled that it had been agreed at the last CTD meeting that this item would remain on the agenda for the present meeting.  The US had also raised some follow-up questions.  He inquired whethe r any Member wished to take the floor. 
29. The representative of the United States
 said that his delegation had only very recently 
submitted follow-up questions on APTA for circulatio n to Members, and was therefore not expecting 
responses at the present meeting.  Since the represen tative of China had informed him that responses 
to the follow-up questions would also be circulated to Members, he did not see the need to maintain 
this item on the agenda.     
30. The representative of China  said that the APTA member countries were still in the process of 
preparing and coordinating the responses to the follow-up questions from the US.  The responses 
would, however, be provide d soon.  If it was agreeable to Memb ers, he proposed that this item be 
removed from the CTD's agenda.       
31. The Chairman  noted that responses to the US' follow- up questions would be circulated to 
Members.  He proposed that the Committee take note of the notification concerning APTA.    
32. It was so agreed . 
- AGREEMENT ON TRADE , COMMERCE AND TRANSIT BETWEEN INDIA AND BHUTAN – 
NOTIFICATION BY INDIA (WT/COMTD /N/28) 
33. The Chairman  said that the notification by India concerning the Agreement on Trade, 
Commerce and Transit between India and B hutan had been circulated in document 
WT/COMTD/N/28.  He invited the representativ e of India to introduce the notification. 
34. The representative of India  said that the Agreement on Trade, Commerce and Transit between 
India and Bhutan was signed on 28 July 2006, and be came  operational on 29 July 2006 for a period 
of ten years.  Trade was transacted in Indian r upees or Bhutanese ngultrums.  The agreement factored 
in the asymmetries in the sizes of the economi es of India and Bhutan, and sought to address the 
special needs of Bhutan, which was a landlocked LD C.  While the agreement's aim was to promote 
free trade and commerce between the two countries, for the protection of its industries Bhutan was 
permitted to impose non-tariff restrictions on the im ports of certain goods of Indian origin.  All 
Bhutanese exports to, and imports from, third count ries were free from the customs duties and trade 
restrictions of India.  Under the agreement, India provided 16 exit and entry points for this purpose.  There were also provisions for the mutual refund  on an annual basis of the excise duties on goods 
exported to each other.  The agreement also pr ovided for the movement of Bhutanese goods from one 
part of Bhutan to another part of Bhutan through India.  He said that India was the largest trading  
partner of Bhutan, with bilateral trade in 2006 r eaching 28 billion rupees and a trade balance in favour 
of Bhutan.  The agreement was expected to cont ribute to further strengthening bilateral economic 
relations.   
35. The Committee took note
 of the notification concerning the Agreement on Trade, Commerce 
and Transit between India and Bhutan. 
- COMMUNICATION FROM BRAZIL ON THE GENE RALIZED SYSTEM OF PREFERENCES 
SCHEME OF NORWAY (WT/COMTD /65) 
36. The Chairman  recalled that  Norway had made a notification at the previous CTD meeting 
concerning its GSP scheme.  Questions on Norway 's GSP scheme had subsequently been received WT/COMTD/M/70 
Page 8  
 
  from Brazil, and had been circulated in docum ent WT/COMTD/65.  Written responses from Norway 
were available at the back of the meeting room.  He first invited Brazil to introduce its questions. 
37. The representative of Brazil
 said that the provisions contained in Norway's revised GSP 
scheme included the extension of a preferential treatme nt to a number of developing countries similar 
to the preferential treatment provided to least-developed countries (LDCs).  The extension of this 
preferential treatment was based on criteria such as levels of income, among others.  Considering the 
possible systemic implications of these provisions, Brazil had presented a list of questions to Norway.  While Brazil did not intend to question the gene rosity of any Member sponsoring preferential 
schemes, differentiation of any kind between developi ng countries raised concerns.  He said that the 
questions from Brazil aimed to clarify the functioning  of Norway's GSP scheme as it related to the 14 
developing countries offered duty-free and quota-free (DFQF) market access, as well as the criteria 
governing the selection of these beneficiaries.  He th anked the delegation of Norway for the responses 
that had been provided at the present meeting, which would be analyzed by the relevant authorities in 
Brazil.  His delegation looked forward to presen ting its comments at the next session of the CTD. 
38. The representative of Norway
 said that his delegation would circulate written responses to 
Brazil's questions in due course.  For the present me eting, responses had been made available at the 
back of the meeting room.  He said that he wished  to highlight a few points from the responses.  He 
firstly confirmed that Norway had used the OECD 's Development Assistance Committee (DAC) list 
of LDCs and other low-income countries, in comb ination with the UN's population criteria for LDC 
status, when establishing its expanded list of countri es eligible for DFQF mark et access.  These were 
the only criteria relating to income levels.  Norway  intended to update the list of eligible countries 
under its GSP scheme in accordance with any revi sed DAC list.  The obj ective was to create a 
transparent and predictable way to revise Norway's  GSP scheme.  His delegation looked forward to 
any further comments from Members on the scheme.   
39. The representative of Pakistan  supported the intervention by Brazil.  Her delegation wished to 
make known some systemic concerns it had in th e way countries had been selected for eligibility in 
the Norwegian scheme.     
40. The representative of India  said that his delegation was intere sted in the clarifications sought 
by Brazil, in particular in view of the possible systemic implications of some aspects of Norway's 
revised GSP scheme.  India was particularly inter ested in the eligibility cr iteria for preferential 
treatment used in Norway's scheme. 
41. The representative of China  said that his delegation also had an interest in this issue, in 
particular in view of the differentiation that was being made between developing countries in 
Norway's GSP scheme.  He hoped that this item would remain on the agenda for the next CTD 
meeting.   
42. The Chairman  proposed that the Committee take note of the interventions that had been made. 
This item would remain on the agenda for the next CTD meeting.  
43. It was so agreed .  
E. DECLINING TERMS OF TRADE FOR PRIMARY COMMODITIES , AND ITS IMPLICATION TO TRADE 
AND DEVELOPMENT OF PRIMARY COMMODITY EXPORTING COUNTRIES   
44. The Chairman  recalled that it had been agreed at the last CTD meeting that he would continue 
his informal consultations with Members to get a better idea as to how the Committee could continue 
to add value in its discussion on commodities.  He  had already informed the Committee that some 
Members were working to explore ways in which the CTD could contribute to the commodities issue,  WT/COMTD/M/70 
 Page 9 
 
 
  particularly in light of the outcome of the UNCTA D XII Conference.  While a concrete proposal had 
not yet been communicated to him, he noted that de legations were extremely busy at this time.  For 
the next CTD meeting, he proposed that a represe ntative of UNCTAD be invited to briefly outline 
UNCTAD's mandate on commodities and the work that th e organization was undertaking in this area.  
He also proposed that he continue his informal consultations with a view to concretizing a way 
forward for the CTD on this matter.  
45. It was so agreed .   
F. DECISION ON TRANSPARENCY FOR PREFERENTIAL TRADE ARRANGEMENTS (WT/L/672) 
46. The Chairman  said that the 14 December 2006 Gene ral Council Decision on "Transparency 
for Preferential Trade Arrangements" – contai ned in document WT/L/672 – invited the CTD to 
consider transparency for preferential arrangement s under paragraph 2 of the Enabling Clause – other 
than RTAs – and report back within six months fo r appropriate action by th e General Council.  The 
Council had extended the deadline to its July 2008 meeting. 
47. He recalled that he had informed Members at previous CTD meetings that the proponents had 
prepared a draft text on the issue of transparency for preferential trade arrangements (PTAs).  He had 
explained that the text had undergone revisions based  on the comments made by some Members in a 
number of informal consultations th at he had held.  He had also indicated that his intention was to 
have the proponents' draft text cons idered in an informal, open-ended format as soon as possible.  He 
now wished to further inform Members that a new revision of the text had just been completed and 
had been transmitted to him.  He observed that so me important progress had therefore been made.  It 
was also clear, however, that more time and mo re work would be required before the CTD could 
come to a decision.  It was his intention to continue to work with Members on this matter. 
48. The representative of India  agreed with the Chairman's assessment that more time and more 
work would be required before the CTD could come to a decision.  He expressed appreciation for the 
constructive engagement shown by Members in the informal consultations called by the Chairman.  
His delegation looked forward to having the matter discussed in an open-ended format, and remained 
hopeful of closing the gaps soon. 
49. The representative of El Salvador  confirmed the interest of his delegation in this matter, in 
particular in view of the trade and developmen t benefits that would arise from enhanced PTA 
transparency.      
50. The Chairman  said that he would need to report to the General Council at its July 2008 
meeting on the status of the CTD's consideration of this matter.  He said that he would inform the 
Council of the progress that had been made, and would essentially provide the Council with the same 
information that he had been providing to the CTD.  He proposed to also ask the Council to grant the 
CTD additional time – until Decembe r 2008 – to consider the matter a nd report back for appropriate 
action.  He added that it was his intention to continue working with Members on the issue of 
transparency for PTAs.  The item would, therefore, remain on the agenda for the CTD's next meeting. 
51. It was so agreed . 
G. REVIEW OF STEPS T AKEN TO PROVIDE DUTY -FREE AND QUOTA -FREE MARKET ACCESS TO 
LEAST -DEVELOPED COUNTRIES  
52. The Chairman  said that an item concerning the Hong Kong Ministerial Decision on duty-free 
and quota-free (DFQF) market access for LDCs had been on the CTD's agenda since early 2006.  
Under this item, delegations had provided information on the steps they were taking, or had already WT/COMTD/M/70 
Page 10  
 
  taken, to provide DFQF market access to LDCs.  Written communications by some Members had also 
been considered.  He recalled that the CTD ha d to date undertaken tw o of its mandated annual 
reviews of the implementation of the Hong Kong Ministerial Decision.  
53. The representative of India
 recalled that his delegation ha d provided information on India’s 
Duty Free Tariff Preference (DFTP)  Scheme for LDCs at the 69th Session of the CTD.  The scheme 
was in fulfilment of the mandate contained in pa ragraph 47 of the Hong Kong Ministerial Declaration 
as it related to DFQF market access for LDCs.  All LDCs were eligible, whether or not they were WTO Members. According to the scheme, 85 per cent of total tariff lines at the 6-digit level of the 
Harmonized System would become duty-free in a five-year timeframe.  These lines accounted for 
92.5 per cent of LDCs' global exports.  He said that each beneficiary country was required to 
designate a nodal point to facilitate communication with  the Government of India.  The Indian nodal 
point had already been designated.  To utilize the sc heme, LDCs also needed to submit their letter of 
intent to the Department of Commerce of India.  His delegation wished to remind LDCs to expedite 
the designation of nodal points and the transmission of letters of intent so that they could benefit from 
the scheme without any delay.  His delegation also  urged other developed a nd developing countries 
that had not yet announced their DFQF market access  schemes for products of the LDCs to do so in 
an expeditious manner. 
54. The representative of Lesotho
, on behalf of the LDC Group, said that the LDCs had on 
previous occasions shared with Members some of th eir key concerns regarding the implementation of 
the Hong Kong Ministerial Decision.  She noted that the level of ambition on the DFQF issue was being watered down in the course of the negotiatio ns.  For example, the disclosure of the product 
coverage contained in the 97 per cent of tariff lines,  as well as the timeframe for the phasing in of the 
remaining 3 per cent that would be initially exclud ed, remained unresolved.  In this regard, she 
recalled that the LDC Group had proposed a text on DFQF market access with a clear roadmap to 
eventually phasing in the remaining 3 per cent of ta riff lines by the end of the implementation period.  
The Group believed that the extent to which Memb ers took measures to fulfil the DFQF mandate 
would be a testament to their commitment in ensu ring a development-friendly outcome to the Doha 
Round.  She added that the LDCs were also encour aging developing countries in a position to provide 
DFQF market access to LDCs, to make their positi ons known.  In this regard, she noted with 
appreciation that some developing countries had al ready indicated that they  were in the process of 
finalizing a DFQF package for LDCs with simple and transparent rules of orig in.  In response to the 
intervention by India, she said that the LDCs w ould transmit the necessary letters of intent which 
would allow them to benefit from the DFTP Scheme.   
55. The Committee took note
 of all interventions. 
H. TECHNICAL COOPERATION AND TRAINING  
(i) Annual Report on Technical Assistance and Training, 1 January to 31 December 2007 
(WT/COMTD/W/165) 
(ii) Technical Cooperation Audit Report for 2007 (WT/COMTD/W/166) 
56. The Chairman  said that there were two reports for consideration under this agenda item, 
namely the Annual Report on Technical Assistance and Training for 2007 – circulated as document 
WT/COMTD/W/165 – and the Technical Cooperation Audit (TCA) Report for 2007 – circulated as 
document WT/COMTD/W/166.  He recalled that Members had had a preliminary discussion on the TCA Report at the last CTD meeting.  He invited the Secretariat to introduce the Annual Report on 
Technical Assistance and Training.   WT/COMTD/M/70 
 Page 11 
 
 
  57. The Director of the Institute for Training and Technical Cooperation (ITTC)  said that about 
460 technical assistance (TA) activities had been  implemented in 2007.  Of these activities, 
37 per cent were implemented in Africa, while LDCs were associated with more than 40 per cent.  Particular attention was being paid to the quality of  the activities and their impact.  In this regard, 
methods had been adopted for evaluating quality and measuring the impact.  He noted that the 
Secretariat was also facing certain difficulties in  implementing its TA activities.  One difficulty 
concerned the level of response from potential bene ficiaries, which was sometimes inadequate.  In 
this light, he invited beneficiaries to share their particular needs with the Secretariat.  Another difficulty had to do with the financial situation.  Fo r one thing, delays were being experienced in the 
receipt of contributions from some Members.  The value of these expected contributions was also 
insufficient in light of the planned activities.  He noted in this regard that CHF 10.8 million had been 
received to date and CHF 2.2 million had been co mmitted – for a total of CHF 13 million – while the 
required amount for the year was CHF 24 million.  He encouraged Member s to make the necessary 
contributions.  He also noted that efforts were being made to enhance understanding and 
communication with Members with regard to the WTO' s TA activities.  In this regard, an open-door 
session on this subject would be held after the present meeting, to which all delegations were invited. 
58. The representative of Guinea
 expressed her appreciation for the WTO's TA activities.  Her 
delegation had taken note of the invitation from the S ecretariat for beneficiaries to make known their 
specific needs.  She expressed her support for the in tervention that had been made by Lesotho under 
the agenda item concerning DFQF market access for LDCs.  She added that the information provided 
by India under the same agenda item would be conveyed to her capital. 
59. The representative of Burkina Faso  also expressed appreciation for the WTO's TA activities.  
He said that he had taken note of the request fro m the Secretariat for beneficiaries to make known 
their specific needs. 
60. The representative of Lesotho  echoed other delegations' a ppreciation for the WTO's TA 
activities.      
61. The representative of the European Communities  said that his delegation had already had an 
opportunity to discuss with the Secretariat a number of issues relating to the WTO's TA activities.  These included issues relating to the cost of the regional trade policy courses, as well as the 
occasionally low level of participation in certain even ts.  On the financial situation, he said that a 
number of EC member States had recently come forw ard with contributions to the Doha Development 
Agenda Global Trust Fund (DDAGTF).  He noted that the EC was already making a substantial 
contribution to the DDAGTF, and invited other Members to do the same.      
62. The representative of Barbados
 expressed his appreciation for the open-door session on TA 
which would be held after the present CTD meeting.  He said that his delegation was among those that 
was comfortable with the TA Plan for 2008 and 2009, and was particularly pleased with the attention 
given to distance training and the use of e-Learning.  He also noted that the conclusion of the Doha 
negotiations would open up new areas of needs fo r small economies.  He cited as examples 
non-agricultural market access, trade facilitation and fisheries. 
63. The ITTC Director  said that the Secretariat had taken note of the comments that had been 
made by delegations.  He informed Members that  the ITTC was having an open dialogue with both 
beneficiaries and donors on the ways and means to  improve the quality of TA being provided.    
64. The Committee took note  of the reports and of all interventions. WT/COMTD/M/70 
Page 12  
 
  I. 
OTHER BUSINESS  
65. The Chairman  recalled that it had been agreed at the last CTD meeting that the Committee 
would revert to the matter raised by the EC concer ning the change in the notification status of the 
GCC Customs Union from Article XXIV of GATT 1994 to the Enabling Clause.  He added that, 
along with other issues relating to the GCC Custom s Union, he had informed the Saudi Arabian 
Ambassador of this matter after the last meeting.   He inquired whether a GCC representative wished 
to take the floor. 
66. The representative of Saudi Arabia , on behalf of the GCC countries, said that he wished to 
respond to the three points that had been raised by  Members.  He recalled firstly that the EC had 
asked the GCC countries to elaborate on the reas on for the change in the GCC notification from 
GATT Article XXIV to the Enabling Clause.  In th is regard, he said that the Economic Agreement 
between the GCC States ("the GCC Agreement") coul d have been notified to the WTO under either 
Article XXIV or the Enabling Clause, as it qualif ied under both provisions.  The GCC Agreement  
established a customs union that eliminated "all tariff and non-tariff barriers, while taking into 
consideration laws of agricultura l and veterinarian quarantine, as well as rules regarding prohibited 
and restricted goods".  He explained, therefore,  that the GCC Agreement covered substantially all 
trade within the meaning of GATT Article XXIV:8(a)(i ), and was fully consistent with Article XXIV.  
At the same time, all the parties to the GCC Agre ement were developing countries, which meant that 
the GCC Agreement was a regional agreement among developing countries for the mutual reduction 
or elimination of tariffs within the meaning of paragraph 2(c) of the En abling Clause.  The GCC 
Agreement was, therefore, also fully consistent with the Enabling Clause. 
67. He went on to say that although the GCC Ag reement had initially b een notified under GATT 
Article XXIV, the GCC had decided upon further refl ection that it would be more appropriate to 
notify the agreement under the Enabling Clause, which was designed to facilitate trade among 
developing countries.  While the agreement qualified under both the general provision of 
Article XXIV and the specific provision of the Enabling Clause, the GCC members had determined 
that it would be logical to change the notification to the more specific provision.  He said that the 
Appellate Body had stated in the EC – Tariff Preferences  case that the Enabling Clause had become an 
integral part of the GATT 1994.  The Appellate Bo dy had also noted that the relationship between 
trade and development, and in particular the role  of the Enabling Clause, remained prominent on the 
agenda of the WTO.  He added that the Enabling Clause, by its own terms, sought to promote the 
fuller participation of developing countries in the worl d trading system.  It was, therefore, appropriate 
for a customs union among developing countries to be based on this provision. 
68. He next went on to explain, as per the requ est of the EC, the basis for which the GCC 
considered that a customs union fell within paragraph 2(c) of the Enabling Clause.  In this regard, he 
said that paragraph 2(c) of the Enabling Clause provided for the establishment of regional or global arrangements among developing countries for the mutual reduction or elimination of tariffs and, in 
accordance with criteria or conditions which mi ght be prescribed, for the mutual reduction or 
elimination of non-tariff measures.  He  observed that the criteria relating to tariffs had clearly been met, 
as the GCC Agreement provided for the elimination of all tariffs, taking into consideration agricultural 
and veterinarian laws, as well as rules regarding pr ohibited and restricted goods.  As for the criteria 
relating to non-tariff measures, he said that it w as inapplicable, as WTO Members had not prescribed 
any criteria or conditions for the mutual reduction or elimination of non-tariff measures.  He noted, 
however, that the GCC Agreement did provide for the elimination of non-tariff barriers.  On the basis 
of his explanation, he indicated th at the conditions set forth in paragraph 2(c) of the Enabling Clause 
had been fully met. 
69. Finally, he responded to a point that had b een made by Australia in the Committee on 
Regional Trade Agreements.  Australia considered  that the right to notify under the appropriate  WT/COMTD/M/70 
 Page 13 
 
 
  provision existed at the time of the first notificati on, and was interested in the reasons for the change 
in the notification status of the GCC Customs Unio n from a systemic standpoint.  In this regard, he 
noted that nothing in GATT Article XXIV, the Understanding on Article XXIV, or the Enabling 
Clause prohibited a change in notification.  More over, paragraph 14 of the Transparency Mechanism 
for Regional Trade Agreements provided, in part, th at the required notification of changes affecting 
the implementation of an RTA, or the operation of an already implemented RTA, would take place as soon as possible after the changes occurred.  The same paragraph also indicated that the changes to be 
notified would include, inter alia , modifications to the preferential treatment between the Parties and 
to the RTA's disciplines.  He observed that this w as very general language, and the list of changes to 
be notified was illustrative, not exhaustive.  In the view of the GCC countries, the decision to change 
the basis for the notification was a change aff ecting the implementation of an RTA within the 
meaning of this provision.  He added that si nce the review of the GCC under GATT Article XXIV 
had not commenced, the change in venue of the revi ew to the CTD should be of little consequence to 
any Member. 
70. The representative of Kuwait
 supported the intervention by Saudi Arabia.  
71. The representative of the European Communities  said that her delegation would appreciate if 
the intervention by Saudi Arabia could be made av ailable to Members in written form.  She observed 
that her delegation had a different reading of the Enabling Clause.  In particular, it was the 
understanding of her delegation that  paragraph 2(c) of the Enabling Clause could be invoked only to 
justify the reduction or elimination of tariffs, a nd not the reduction or elimination of non-tariff 
measures.  She requested that the CTD revert  to this matter at its next meeting.  
72. The representative of the United States  said that the matter raised questions that merited 
further review.  His delegation had concerns in th e change of the notification status of the GCC 
Customs Union to the Enabling Clause, and did not support moving forward with the process of 
reviewing the agreement until further clarification w as obtained.  He requested that the  intervention 
by Saudi Arabia be made available to Members in wr itten form.  He also suggested that this matter be 
considered as an item on the agenda of the next CTD meeting, and not under "Other Business".   
73. The representative of Brazil  said that the understanding of his delegation was that, in the case 
of RTAs in goods between developing countries, the Parties were free to notify under either 
Article XXIV of GATT 1994 or the Enabling Clause.  He added that paragraph 2(c) of the Enabling 
Clause made reference to non-tariff measures as well as to tariffs.  
74. The representative of Saudi Arabia  added his voice to Brazil in stating that paragraph 2(c) of 
the Enabling Clause made reference to non-tariff measur es.  He requested that the EC put its concerns 
on this matter in writing.  He confirmed that Saudi Arabia would circulate its intervention to 
Members. He also requested that this matter be treated by the Co mmittee at its next meeting under 
"Other Business". 
75. The Chairman  proposed that the Committee continue its  consideration of this matter at its 
next meeting under "Other Business".  If significant concerns remained after the next meeting, the 
Committee would have to decide how to move forward in addressing the issue. 
76. It was so agreed . 
77. The Chairman  next turned to the Work Programme on Small Economies.  He recalled that 
this work programme was being dealt with by the CTD meeting in Dedicated Session.  The Dedicated 
Session had not met for some time, and he sought the guidance of Members as to when a meeting might take place.  WT/COMTD/M/70 
Page 14  
 
  78. The representative of Barbados
 recognized that the CTD had not met in Dedicated Session for 
some time.  He explained that the small, vul nerable economies (SVEs) had been promoting, 
discussing and negotiating the issues of interest an d concern to them in the negotiating and other 
bodies of the WTO.  That being said, he recognized  the desirability of the Dedicated Session meeting 
in late September or October 2008.  This woul d permit Members to assess how the SVEs' issues were 
being taken into account in the negotiations.  He ma de particular reference to the agriculture, NAMA 
and services negotiations – in light of the Minist erial meeting and the services signalling conference 
that were scheduled to take place in Geneva at the end of the July 2008 – as well as the July 2008 
reports of the Chairpersons of the Negotiati ng Group on Rules (NGR) and the Negotiating Group on 
Trade Facilitation (NGTF).  He informed the Committ ee that since the last meeting of the Dedicated 
Session, the SVEs had tabled an additional docum ent in the NAMA negotiations and also continued 
to be active in the area of domestic regulation in services.  In the fisheries subsidies negotiations, the 
SVEs had recently tabled a proposal on enhancing th e provision of technical assistance.  A revised 
proposal co-sponsored by a number of SVEs – advo cating a regional approach to the provision of 
technical assistance – had also recently  been introduced in the NGTF.  
79. He added that a meeting of the Dedicated S ession would give Members the opportunity to 
more fully develop and determine a roadmap for the future course of SVEs' issues in the WTO.  Such 
a meeting would also allow the Secretariat to upda te its compilation paper on the Work Programme 
on Small Economies.  Outside the context of the WT O negotiations, he said that the SVEs' template 
for pooling intellectual, capacity and negotia ting resources amongst a group of geographically 
dispersed countries had been gaining increased attention.  As an example, he pointed to studies being 
undertaken by the Commonwealth Secretariat, Oxford  University and the University of California 
which attempted to examine the SVEs' template, as well as the constraints that the SVEs faced in multilateral negotiations.  He believed that the in terest from both the academic and the policy side 
reaffirmed the relevance of the Work Progra mme on Small Economies and the work that WTO 
Members had undertaken on SVEs' issues since the Doha Ministerial Conference.  The SVEs looked 
forward to a successful incorporation of their inte rests in the outcome of the July 2008 Ministerial 
discussions, in which a number of Ministers from SVEs would be involved. 
80. The Chairman
 proposed that Members think along the lines of holding a meeting of the  
Dedicated Session of the CTD in October 2008. 
81. It was so agreed .   
82. The meeting was adjourned . 
 
__________