WORLD TRADE  
ORGANIZATION  WT/IFSC/M/16 
18 July 2006 
 
 (06-3472) 
Integrated Framework Steering Committee 
Seventeenth Session  
 
 
 
REPORT ON THE 17H MEETING OF THE 
INTEGRATED FRAMEWORK STEERING COMMITTEE (IFSC) 
 
Wednesday, 5 July 2006, WTO, Geneva  
 
Chairperson:  Ambassador Mia Horn af Rantzien (Sweden) 
 
 A. 
ADOPTION OF THE AGENDA  
1. The Integrated Framework Steering Committee (IFSC) held its seventeenth meeting on 
Wednesday, 5 July 2006.  The adopted agenda is reproduced in Annex I. 
B. CONSIDERATION OF THE RECOMMENDATIONS ON THE ENHANCEMENT OF THE INTEGRATED 
FRAMEWORK WITH A VIEW TO THEIR ADOPTION  
 2. The Chairperson of the Integrated Framework Working Group
 (IFWG) made a report on the 
IFWG meeting held earlier that morning.  She reported that the IFWG had adopted the 
recommendations of the Task Force on an enhanced IF.  With regard to the clarification that had been 
sought by the LDC representative in relation to th e language on Tier 1 funding in the Annex to 
Appendix III of the report of the Task Force on an enhanced IF (WT/IFSC/W/15), the IFWG had 
made it clear, and this would be formally included in the record of the meeting, that there was no 
presumption of hierarchy between bilateral and mult ilateral sources of funding.  The IFWG had also 
made it clear that details on the other recommenda tions including on governance, administration, 
financial issues, etc., would be dealt with extensivel y by the Transition Team of the enhanced IF.  She 
reported that the IFWG had proposed that the Chairs of the IFSC, IFWG and of the former Task Force on an enhanced IF engage in consultations with IF  stakeholders, with a view to:  (i) decide on the 
actual names of the people to sit on the Transition Team and the modalities to carry out its tasks;  and 
(ii) facilitate the identification of a Programme Ma nager whose task would be to provide support on a 
day-to-day basis to the Transition Team until the Chief Executive Officer (CEO ) was recruited.  As 
regards the composition of the Transition Team, she had suggested to the IFWG that it be composed 
of two representatives each from LDCs, donors and Agencies with other members of the IFWG 
participating ex officio.  She reported that the IFWG  had also made it clear that until such time as the 
enhanced IF was in place, current bodies (IFWG, IFSC) would remain in place and the Transition 
Team would thus report to the IFWG and IFSC.  She also reported that the IF Secretariat had prepared 
an indicative list of tasks needed to operationaliz e the enhanced IF and that the IFWG had been 
invited to provide comments by 19 July. 
3. The Chair of the Task Force on an enhanced IF
, Ambassador Stephenson from Canada stated 
that moving the work of the IF was important and should proceed separately from the DDA.  He 
provided a report on results of further consultations  with members of the Task Force on an enhanced 
IF which had taken place since the IFSC's last meeting on 12 May 2006, in particular, on clarifications related to funding.  He reported that  some amendments had been made to the report, 
however, none to the recommendations.  He also sai d that the issue raised by the LDCs on funding 
under Tier 1 had been further clarified during this mo rning's IFWG meeting, in particular, that there 
was no presumption of hierarchy between bilateral and multilateral sources of funding.  He stated that WT/IFSC/M/16 
Page 2  
 
  other issues would have to be dealt with in de tail in the next phase of the work.  These issues 
included:  how the processes in-country would work and how these would relate to existing 
mechanisms;  the funding approach;  administrative arrangements, including staffing of the Executive 
Secretariat and assurance of its independence, while at the same time respecting the legal and administrative requirements of the WTO.  He concluded his report by saying that there was consensus 
from the LDCs, donors and agencies on the recommendati ons on an enhanced IF and that this was a 
meaningful achievement.  
4. The Chairperson of the IFSC
 welcomed the reports by the Chairperson of the IFWG and the 
Chairman of the Task Force on an enhanced  IF and opened the floor for discussions. 
5. The representative of Zambia , on behalf of the LDC Group, commended the Chairs of the 
IFWG and the Task Force on an enhanced IF for thei r reports.  He informed the meeting that the LDC 
Group fully supported the adoption of the recommenda tions of an enhanced IF, and that their 
concerns, which included funding issues under Tier 1, had been addressed.  He proposed that the 
meeting should take a decision to allow the work to  progress so as to ensure keeping the momentum 
that had been gathered and avoid losing it throug h delays in operationalizing the recommendations of 
the Task Force on an enhanced IF.  In this regard, he stated that  the LDC Group fully supported the 
proposal that a Transition Team be put in place as soon as possible to address the tasks that needed to 
be carried out to operationalize the enhancement of  the IF.  These tasks should include issues related 
to:  (i) governance for the proposed Secretariat, the Board and the IFSC;  (ii) recruitment of the CEO 
in the new structure of the enhanced IF;  (iii) administrative arrangements for the new Secretariat;  
(iv) financial issues including the transfer of the Trust Fund from UNDP;  and (v) IF in-country 
operations.  He also stated that the LDCs supported the recommendation of the IFWG on the 
composition of the Transition Team.  He proposed that the Team should constitute two members from the LDC group, two members from the donor group, two members from the Agencies, the IFWG Chairperson, the IFSC Chairperson and the option to  co-opt additional members when necessary.  In 
view of the urgency of this matter, he said that the LDCs further proposed that the Chair of the IFSC 
consult with the IF stakeholders and come up with the list of members of the Transition Team so that 
work could proceed accordingly.  
6. The representative of Nepal
 was hopeful that the smooth work of the Transition Team and the 
implementation of the recommendations on an enhanced  IF would greatly enhance LDCs' capacity to 
trade.  He stated that a strong follow-up and an equally strong involvement of beneficiary LDCs was 
important to make the IF a success.  He stressed that independently of the negotiations in the DDA, 
work on the IF should proceed as vigorously as possible. 
7. The representative of Rwanda  fully endorsed the statement made by the representative of 
Zambia on behalf of the LDC Group.  He was op timistic that the enhanced IF would provide 
increased and predictable funding on a multi-year basis and would strengthen the in-country capacity 
so that LDCs would be able to own the IF Process and mainstream trade into their development plans 
and Poverty Reduction Strategies.  He looked forward to constructivel y working with all stakeholders 
during the transition period. 
8. The representative of Tanzania  stressed on the predictability of funding and thanked the 
Chairperson of the IFWG for clarifying the LDCs' concern on funding under Tier 1.  He appreciated 
that the estimated costs for Tiers 1 and 2 were qu ite reasonable and called for a clear commitment by 
donors to provide predictable funding, u nder simple and flexible conditions.  
9. The representative of Madagascar  stated that more substantial resources over a long period 
would be needed so as to avoid interruption in implementation activities and that these funds should 
not hinge on complex conditions .  She emphasized the importance of involving the Permanent 
Missions in Geneva in the follow-up of the IF impl ementation, since the Missions acted as reference 
points for their capitals and the agencies.  WT/IFSC/M/16 
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  10. The representative of Benin  stressed the importance of the wo rk carried out by the Task Force 
on an enhanced IF.  He stated that the recommendati ons reflected the interest that LDCs had in the 
enhanced IF and the will of bilateral and multilatera l donors to step up their efforts to promote LDCs' 
trading capacities.  He considered that with the implementation of the recommendations, beneficiary 
countries would move towards achieving the objectives of the IF and that trade would become an 
engine for development and fight against poverty. 
11. The representative of the European Communities  welcomed the decision by the IFWG to 
adopt the recommendations on the enhanced IF.  He supported the suggestion made by the LDC 
coordinator that the IFSC should take an appropria te decision at this meeting to get the Transition 
Team underway and that the remain ing details should be filled in quickly through an appropriate 
consultation process.  He suggested that the Tran sition Team should decide, on its own account, on its 
best working method including on the possibility of bri nging in others to help work out in more detail 
specific topics.  He recalled the comments that had been made on the likely n eed to involve agencies 
on some topics beyond the figure of two that was proposed for membership of the Transition Team, 
and added that there might also be a case for the Tr ansition Team to draw on the expertise of several 
donors and LDCs beyond the proposed figure of two.  He urged members of the IFSC to move 
forward with the next stage of putting in place an enhanced IF. 
12. The representative of Senegal  recalled that the main objective of the IF was to assist LDCs to 
strengthen their capacities so that they could better participate in, and benefit more from international 
trade.  He stated that beneficiary countries must ow n the IF process so as to meet its objective.  He 
reiterated that the Transition Team should be set up as soon as possible, due to the scope of the work 
that had to be done in a short time, before the 31 December 2006 deadline. 
13. The representative of Uganda  stated that funds for in-country programmes should not only be 
used for workshops but should be used for targeted  programmes that would enable LDCs to develop 
their capacities. 
14. The representative of Cambodia  informed that his country was implementing activities under 
Window II and expected that it would benefit from th e enhanced IF to be able to implement other 
priority actions identified in his country's Action Matrix.  On the predictability of funding, he 
commented that the procedure or mechanism to be put in place should be simple and transparent.  
15. The representative of Lesotho  stated that LDCs owned the recommendations of an enhanced 
IF because they actively participated  in the Task Force on an enhan ced IF.  She also said that her 
delegation supported the composition of the Transiti on Team and would be available to work with 
them. 
16. The representative of Switzerland  fully supported the focus which had been placed on 
enhancing the capabilities of LDCs to own the IF Pr ocess and to carry out their responsibility in the 
management of the IF.  He reiterated that only if the IF was recognized as a priority by the main government ministries in beneficiary countries, would it be able to reach its potential in terms of trade 
and poverty reduction.  He stated that much work still needed to be done to sensitize more donors and 
multilateral agencies at the national level to the importance of trade in the development agenda, 
considering that in various countries trade-related cooperation was a new area for donors.  He also 
said that his country was supporting the efforts of st rengthening the current IF Secretariat together 
with Danida and DFID by funding the Project Impl ementation Unit (PIU) within the IF Secretariat 
until the Executive Secretariat would be fully operati onal.  He welcomed the indicative list of tasks, 
prepared by the WTO Secretariat, needed to opera tionalize the enhancement of the IF and he looked 
forward to a rapid and smooth tran sition.  He concluded by saying th at his country was a firm believer 
in the IF Process and was committed to deepening its  support to the IF and remained fully committed 
to the implementation of the recommendations on the enhanced IF.  WT/IFSC/M/16 
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  17. The representative of the World Bank
 reiterated that the enhancement of the IF and the 
broader Aid for Trade agenda should proceed  independently of the DDA negotiations.  He 
underscored that during the transition phase, all effo rts should be made to avoid any discontinuity 
until the new structure was in place.  He stated  that the World Bank was totally committed in 
continuing to support the activities, particularly  the Diagnostic Studies, currently underway. 
18. The representative of Sweden  stated that the adoption of the recommendations on an 
enhanced IF was an important first step.  Much work was still ahead in order to operationalize the 
recommendations.  He hoped that the work by the Transition Team would move on swiftly.  He said that Sweden would continue to be committed to the IF, the implementation of the recommendations 
on the enhanced IF, including the provision of fundin g in a predictable manner, which he hoped other 
donors would also do. 
19. The representative of Guinea
 hoped that the Geneva Missions would be involved in the work, 
jointly with capital- based officials. 
20. The representative of Angola  said that his country was one of the latest beneficiaries of the IF 
and he hoped that it would be amongst the first to be nefit from the enhanced IF.  He stated that his 
country had high expectations of the IF in vi ew of its objectives which fit within Angola's 
development objectives.  He agreed with the representatives from Madagascar and Guinea in saying 
that effective participation of Permanent Missions in  Geneva was necessary in this process.  He also 
considered that there should be greater involveme nt of capital-based officials, to ensure full 
ownership. 
21. The representative of UNCTAD  stated that his agency would continue to draw on its 
experience and comparative advantage to contribut e to putting in place the enhanced IF.  He hoped 
that there would be full transparency in the next step s, in terms of participation by all IF stakeholders 
since the task of the Transition Team to define th e practical modalities for the implementation of the 
recommendations would be critical to the IF enhancem ent.  He requested that there be sufficient 
flexibility in the work of the Transition Team to  allow for the active participation of all IF 
stakeholders, particularly the agencies. 
22. The representative of the United Kingdom  stated that his country was fully committed to the 
IF and its enhancement and would therefore offer assistance to the Transition Team.  He also stated that the United Kingdom looked forward to an early and appropriate opportunity to demonstrate its financial commitment which would be  substantial and substantive.  He fully endorsed the statements 
made by other Members that the IF should not be linked with the DDA and should remain separate to 
complement the DDA.  
23. The Chairperson of the IFSC
 thanked the Members for the strong supporting comments made 
to the recommendations and noted the appreciation gi ven to the Task Force on an enhanced IF under 
the leadership of Ambassador Stephenson from Canada.  She proposed that the IFSC take note of the 
statements made and adopt the recommendations  contained in Appendi x III and its Annex of 
document WT/IFSC/W/15. 
24. It was so agreed . 
C. NEXT STEPS AND TRANSITIONAL ARRANGEMENTS  
 25. The Chairperson of the IFSC
 emphasized that the current IF, its operations, structures and 
division of responsibilities among the various stakehol ders would remain in force until such time as 
the enhanced IF would be fully operational.  All IF countries would enter the enhanced IF, at 
whatever stage they were in the present IF.  Work  to put in place the enhanced IF and the on-going 
operations of the current IF would go on in parallel.  On the launching of the next phase of putting in 
place the enhanced IF, she recalled that Ministers in  Hong Kong had stipulated that the enhanced IF  WT/IFSC/M/16 
 Page 5 
 
 
  should enter into force no later than 31 December 2006.  There was therefore urgency in moving 
forward.  She also recalled that at its 44th session on 23 June, the IFWG had requested the Secretariat 
to prepare a short indicative list of tasks to be pe rformed in order to create a fully operational IF as 
well as provide suggestions for an operational decision by the IFSC in this meeting to launch the next 
stage of work.  She emphasized that the paper befo re the Members was prepared as an input into the 
discussions and was work in progress.  She said that  the paper assumed that a Transition Team would 
be established and decisions on composition and preci se tasks of this Transition Team would need to 
be taken.  This would require in formal consultations among the IF stakeholders.  Furthermore, the 
paper also mentioned that there might be a need for a Programme Manager, whose task would be to 
provide support to the Transition Team on a day-to-day  basis, until such time as the CEO would be in 
place.  Once the CEO is recruited, he/she would take  over these tasks.  She also said that consultations 
on the names of people who would sit on the Transiti on Team would still need to take place.  She 
invited Members to comment on how best  to launch the next phase of work. 
26. The representative of Canada  thanked all the members of the Task Force and indicated 
Canada's strong support for the approach laid out in  the Secretariat's paper of the indicative list of 
tasks to be carried out to operationalize the enhancem ent of the IF.  He stated that this would enable 
the work ahead to be carried out in an expeditious and effective manner. 
27. The Chairperson of the IFSC  stated that there was a proposal fo r the IFSC to invite the Chairs 
of the IFSC, the IFWG and of the former Task Forc e on an enhanced IF to engage in consultations 
with IF stakeholders with a view to:  (i) decidi ng on the names of the people to sit on the Transition 
Team and the modalities to carry out its tasks on the basis of the indicative list of tasks submitted by 
the Secretariat;  and (ii) facilitating the identificat ion of a Programme Manager to give day-to-day 
support to the Transition Team, until such time as the CEO was recruited.  It had been mentioned that 
given time constraints, the composition of the Transition Team would have to be decided upon before 19 July.  She asked Members if  they accepted this proposal. 
28. The representative of Bangladesh
 commented on the identification of a Programme Manager.  
He proposed that the Chairs of the IFSC, the IFWG and of the former Task Force on an enhanced IF 
should hold consultations with inte rested delegations to come forw ard with two to three candidates 
from which to identify the Programme Manager to ensure transparen cy and inclusiveness. 
29. The Chairperson of the IFSC  proposed that the IFSC take note of the statements made and 
agree to the proposals to launch the next phase of the work, including the one made by the 
representative of Bangladesh. 
30. It was so agreed.  
D. ANY OTHER BUSINESS  
 31. In the absence of any other busin ess, the Chairperson of the IFSC
 proposed that the date of 
the next meeting should be left open in light of developments in further discussions on the 
enhancement of the IF.   
32. The meeting was adjourned . WT/IFSC/M/16 
Page 6  
 
  ANNEX I 
  
SEVENTEENTH SESSION OF THE INTEGRATED FRAMEWORK  
STEERING COMMITTEE 
 
Wednesday, 5 July 2006 at 10 a.m.  
 
Centre William Rappard  
 
 
1. The Integrated Framework Steering Co mmittee will hold its Seventeenth Session on 
Wednesday, 5 July 2006, starting at 10 a.m. in the WTO building. 
 
2. The items proposed for the agenda are:    
(a) Adoption of the agenda;   
(b) Consideration of the Recommendations on the Enhancement of the Integrated 
Framework with a view to their adoption; 
(c) Next steps and transitional arrangements; 
(d) Any other business.
 
 
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