RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/COMTD/SE/M/11 
4 July 2005 
 (05-2887) 
Committee on Trade and Development 
Eleventh Dedicated Session  
 
 
NOTE ON THE MEETING OF 25 MAY 2005 
 
Chairman:  H.E. Mr. Gomi Tharaka Senadhira (Sri Lanka) 
 
 
A. ADOPTION OF THE AGENDA ........................................................................................................1  
B. COMMUNICATION FROM ANTIGUA AND BARBUDA , BARBADOS , BOLIVIA , CUBA , 
DOMINICA , DOMINICAN REPUBLIC , EL SALVADOR , FIJI, GRENADA , GUATEMALA , 
HONDURAS , JAMAICA , MONGOLIA , NICARAGUA , PARAGUAY , SOLOMON ISLANDS , 
ST. KITTS AND NEVIS , ST. LUCIA , ST. VINCENT AND THE GRENADINES AND TRINIDAD 
AND TOBAGO - "WORK PROGRAMME ON SMALL ECONOMIES :  AN APPROACH TO 
FRAMING RESPONSES TO THE TRADE -RELATED PROBLEMS OF SMALL ECONOMIES " 
(WT/COMTD/SE/W/13) ............................................................................................................1  
C. OTHER BUSINESS ........................................................................................................................7  
 
 
A. ADOPTION OF THE AGENDA  
1. The Chairman  recalled that the draft agenda for the meeting was contained in 
Airgram WTO/AIR/2570 issued on 13 May 2005 and a revision, WTO/AIR/2570/Rev.1, issued on 23 May 2005. 
2. The agenda was adopted
. 
B. COMMUNICATION FROM ANTIGUA AND BARBUDA , BARBADOS , BOLIVIA , CUBA , DOMINICA , 
DOMINICAN REPUBLIC , EL  SALVADOR , FIJI , GRENADA , GUATEMALA , HONDURAS , JAMAICA , 
MONGOLIA , NICARAGUA , PARAGUAY , SOLOMON ISLANDS , ST. KITTS AND NEVIS , ST. LUCIA , 
ST. VINCENT AND THE GRENADINES AND TRINIDAD AND TOBAGO - "WORK PROGRAMME ON SMALL 
ECONOMIES :  AN APPROACH TO FRAMING RESPONSES TO THE TRADE -RELATED PROBLEMS OF SMALL 
ECONOMIES " (WT/COMTD/SE/W/13)1 
3. The Chairman  noted that the main item on the agenda of the meeting was a new submission 
received from the group of proponents.  Before going into a discussion of this submission, he wished 
to summarize the work that had been  done in the previous meetings of the Dedicated Session.  He said 
that the first meeting of the Dedicated Session this year was held on 21 February 2005.  That meeting 
was conducted in both formal and in formal mode and focused on two main points.  The first point 
discussed concerned the three-step approach for advancing the Work Programme on Small 
Economies.  The three steps were:  
 1) to consider the use of characteristics to identify what could be accepted as small, 
vulnerable economies – without naming any group of countries ;  
                                                      
1 Since the meeting of 25 May 2005, Mauritius and Papua New Guinea have said they wished to join 
the other 20 proponents as co-sponsors of the paper now issued as document WT/COMTD/SE/W/13/Rev.1. WT/COMTD/SE/M/11 
Page 2  
 
  2) to consider the trade-related problems wh ich could reasonably be attributed to those 
characteristics – without naming any group of countries
;  and  
 3) to frame responses to those trade-related problems – without naming any group of 
countries . 
4. He said there were some differing views about the order in which the three steps should be 
addressed.  That is, whether to start with one, then go to two, and then to three, or whether to start 
with one and two together before going on to three.   He said that on the whole, Members appeared to 
prefer an approach which addressed one and two toge ther, followed by three at a later stage.  A 
second point which was discussed at the last meeting concerned a new proposal by a group of countries – islands and landlocke d nations – which provided an indicative list of specific 
characteristics and problems.  The proposal w as contained in document WT/COMTD/SE/W/12.   
5. The Chairman recalled that at the previous meeting of the Dedicated Session, which took 
place on 6 April 2005 in both formal and informal  mode, the Dedicated Session discussed the Work 
Programme and agreed, in order to  advance the Work Programme and deliver concrete results by the 
Sixth Ministerial conference, that it would be n ecessary to have informal meetings about once a 
month.  The Dedicated Session also continued its  discussion of document WT/COMTD/SE/W/12.  In 
response to the comments made by Members, a th ree-pronged approach was proposed to examine the 
characteristics and problems.  This approach incl uded identifying the following: 1) areas where a 
WTO solution could be found; 2) areas where WTO so lutions may be available, but need to be 
combined with assistance from other agencies;  an d 3) areas where a solution might lie elsewhere 
(outside the WTO). 
6. The Chairman noted that discussions on docum ent WT/COMTD/SE/W/12 were concluded in 
an informal meeting held on 12 April 2005.  At th at meeting, the group of proponents announced that 
they would be submitting a new paper which could ta ke the discussions into the "solution phase".   
7. The Chairman asked if any of the de legations which had co-sponsored the 
document WT/COMTD/SE/W/13 would like to take th e floor to introduce the submission to the 
Dedicated Session. 
8. In reference to the proposal WT/COMTD /SE/W/13, the representative of Barbados
 made an 
intervention, which is reproduced below.   
Intervention by Barbados :  
 
Since Members have only just received the pa per, let me first of all apologise for its 
late delivery to the Secretariat.  We had an original draft which was used in some 
small group consultations and the wealth of comments, questions and feedback led to 
quite a bit of re-drafting which did take us  some time.  Chair, let me thank Members 
for their most valuable feedback. 
Now to the paper.  It is appropriate, in th e circumstances, that we present the paper in 
a little more detail than we normally would. 
Mr. Chairman, this paper is seeking to do three things: 
1. Confirm the assertion that the WTO can r espond to characteristics within the 
ranks of developing countries – because it has done just that in the past;  WT/COMTD/SE/M/11 
 Page 3 
 
 
 2. Advance the characteristics approach by pointing to some possible 
responses  to the trade-related problems arising from the intensity and the 
combination of characteristics that gives rise to the vulnerability of small economies; 
3. Persuade Members that the small, vulnerable economies are not seeking to, 
nor are they expecting to take anything away from LDCs nor from 
developing countries generally. 
Introduction 
The paragraph 35 mandate is well known.  In addressing the trade-related issues, 
Members have adopted an approach that seeks to avoid forming any new category.  
The Dedicated Session has reported to the General Council accordingly at its meeting 
of 15 February 2005. 
Members will recall that decisions based on the needs and concerns of certain 
developing countries have been taken into account at Ministerial Conferences and at 
the General Council.  We have given thr ee examples:  one relates to "net food 
importing developing countries", another to "subsistence and resource poor farmers".  
Mr. Chairman, in paragraph 1(d) of the July 2004 Decision, under the rubric of 
"Other Development Issues", there is mention that "special attention shall be given to 
the specific trade and development relate d needs and concerns of developing 
countries".  The paragraph then ends with the statement which r eads in part "(T)he 
trade-related issues identified for the fuller integration of small, vulnerable economies 
into the multilateral trading system, should also be addressed .... ".  Now, I wish to 
draw your attention specifically to the phrase "should also be addressed".  In other words, Members agreed to address the con cerns of developing countries, and also 
address issues related to the small, vulnerable economies.   
In document WT/COMTD/SE/W/13, we have referred to 
document WT/COMTD/SE/W/12 and indicated how we have reached where we are 
in the work programme – emphasizing that none of the characteristics and problems 
by themselves can be assumed to be unique to small, vulnerable economies.  However, it is the combination and intens ity of several of the characteristics and 
problems that give rise to the vulnerability of which we speak. 
The Way Forward 
Being aware that paragraph 35 of the Doha Declaration states, in part, that "(T)he 
General Council shall review the work programme and make recommendations for 
action to the ... Ministerial Conference," we see the way forward as follows: 
(i) Consider this paper as providing a basis for a CTD report to the 
General Council before the end of July; 
(ii) Pursue examination in the CTD of more concrete responses to 
the trade-related problems of small, vulnerable economies with a view to also providing more de tailed inputs to the relevant 
negotiating bodies; WT/COMTD/SE/M/11 
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 (iii) Continue examination of the responses in the CTD as well as 
their progress in the negotiating bodies where relevant and inform the General Council accordingly. 
Finally, our expectation for this year is th at:  on the basis of the progress made in the 
CTD, through to November, and on the r ecommendations from the General Council, 
the Sixth Ministerial Conference shall adopt decisions for the meaningful 
implementation of concrete measures designed to address the problems of small, vulnerable economies. 
Please note that the concrete measures are not  included in this pa per – we have only 
pointed to them. 
Considerations for Responses to Trade-Related Problems 
Mr. Chairman, this paper WT/COMTD/SE/W/13 is a bridge between 
WT/COMTD/SE/W/12 and the concrete propo sals which we shall table next.  The 
section of the paper with the sub-head ing "Considerations for Responses to 
Trade-Related Problems" forms the central span of the bridge.  Here we list some of 
the things we want Members to take into  consideration when we begin to examine 
concrete responses to be tabled next. 
Permit me to draw attention to one item in this indicative list, by way of example. 
In the Uruguay Round, small, vulnerable economies undertook commitments, some 
of which have resulted in severe difficulties.  Mr. Chairman, I know some other developing countries are having difficulties as well, but we again wish to repeat that it 
is the combination and the intensity of th e difficulties, coupled with the lack of 
resilience faced by these small economies in implementation and in economic 
adjustment etc. that gives rise to their vulnerability. 
Elements of Responses 
Mr. Chairman, in view of the above cons iderations, Members are asked to examine 
the following non-exhaustive "Elements of  Responses" proposed as components of a 
holistic response to the trade-related problems of the small, vulnerable economies.  Concrete responses along these lines will be further elaborated at the next stage. 
Permit me again to draw attention to just one  of these twelve items in this indicative 
list, by way of example (see item 5).  With regard to subsidies and countervailing measures, decisions should be taken in orde r to allow small, vul nerable economies to 
better respond to the needs of their sm all business sector. Mr. Chairman, small 
business in a small economy deserves special c onsideration;  and no affordable level 
of support can distort world trade. 
Conclusion 
In conclusion Mr. Chairman, the responses at which we aim are not attempting to 
minimize the flow of special and differen tial treatment to developing countries, but 
merely to build on them.  The responses we  seek are also not intended to, and cannot 
in any way, undermine the special treatment being extended to LDCs.  WT/COMTD/SE/M/11 
 Page 5 
 
 
 We must recognize that trade is not a zer o-sum game.  We will seek nothing that 
takes away something from other developing countries.  Remember small is small.  
The paragraph 35 mandate should only be interpreted as offering an opportunity for 
Members to recognize the particular circumstances of the small, vulnerable economies and to frame responses accordingl y.  Members have, on more than one 
occasion in the past, addressed peculiar concerns of some developing countries.  The 
small, vulnerable economies now seek your s upport – and we shall listen carefully. 
9. The representative of the Domincan Republic
 expressed her support as a co-sponsor of the 
paper that was introduced by the representative of  Barbados.  She felt dialogue was the only way in 
which progress could be achieved on a mandate  which was of great importance to the 
Dominican Republic.  The paper presented summarized  the work done pursuant to the mandate in 
paragraph 35 of the Doha Declaration.  She hoped th at substantial progress could be achieved and that 
concrete decisions could be taken at the fort hcoming Hong Kong Ministerial.  The documents 
contained some of the answers that might be used  as a basis for recognizing the specific situation of 
small economies and could lead to  the adoption of specific measures that would solve these unique 
problems, thereby contributing to the integrati on of small economies into the multilateral trading 
system.  She noted that as regards the negotia tions in NAMA and agriculture, it was a matter of 
special importance for her country that a degree of  flexibility be extended with regard to tariff 
reductions, bearing in mind that as a small economy it had significantly low bound tariffs and had no 
scope for granting financial support to its farmers.  In the Services sector she felt that significant 
measures needed to be adopted in order to give access to services from the smaller economies, 
particularly in mode four, so that the sector w ould generate employment a nd economic development.  
She also hoped that the document submitted woul d facilitate discussions and allow the Committee to 
table specific proposals to the different negotiating bodies.  Such a mandate could be the result of a recommendation by the General Council. 
10. The representative of Honduras
 stated that discussion of this matter was of the utmost 
importance and that his delegation was keen for it to  be given effect through concrete action at the 
Ministerial Conference in Hong Kong, China.  Document WT/COMTD/SE/W/13, like the other papers that had been submitted, aimed to move forward the mandate on small economies.  He noted 
that small economies certainly shared a number of characteristics and problems with other developing 
countries, but that they were undoubtedly more vulne rable because of the eff ects that the combination 
of the characteristics and the severity of the problems produce.  This was clearly illustrated by what 
occurred in Honduras when it was devastated by Hurricane Mitch in late October – early 
November 1998.  In its report "Honduras:  Evalua tion of the damage caused by Hurricane Mitch, 
1998 -  Implications for economic and social de velopment and the environment", the Economic 
Commission for Latin America and the Caribbean (ECLAC) said that a preliminary estimate assessed the direct and indirect damage to the economy at just under four billion dollars, i.e. 70 per cent of 
Growth Domestic Product (GDP) for 1998, including the destruction of capital goods and production.  
In some cases, the GDP growth rates of othe r countries in the region were not affected. 
11. He explained that this was one example of how vulnerable small economies were to such 
events and that this demonstrated the need for m echanisms to alleviate and provide solutions to the 
ensuing problems.  He also realized that other ci rcumstances besides natural disasters could affect a 
country and cause serious problems. 
12. He said the paper submitted set out a number of  considerations and suggested elements to 
contribute to a response to the concerns of small economies, concerns regarding issues of interest to the small economies, in particular the inclusion of special flexibilities in the agriculture and NAMA 
negotiations . WT/COMTD/SE/M/11 
Page 6  
 
 13. Lastly, he pointed out that Honduras took the cu rrent negotiations very seriously.  Bearing in 
mind that Honduras' share of world trade was onl y 0.03 per cent and that its economy was largely 
agricultural, he said that, the modalities that would be  adopted should be in keeping with the level of 
development of small economies. 
14. The representative of El Salvador
, as a co-sponsor of document WT/COMTD/SE/W/13, 
remarked that the document sought to ensure con tinuity in the discussions that had developed in the 
course of previous meetings, formal and informal, in which the Dedicated Session had structured its 
efforts to identify the characteris tics and problems of the small and vulnerable economies and to find 
different ways of achieving their effective integration into the world trading system. 
15. In that context, the group of proponents had presented in document WT/COMTD/SE/W/13 
the general foundations on which they thought it would be possible to construct the solutions to the 
real problems confronting the small and vulnerable economies.  He said 
document WT/COMTD/SE/W/13 referred to a number  of different areas.  He thought it was 
important to stress the interest that had been shown in the agriculture and NAMA negotiations, in 
which Members would be trying to find common ground in  order to help with the integration of small 
economies into the multilateral trading system.  He trusted that small economies would encounter the 
required flexibility in this respect.  Similarly, he singled out the negotiations on services and trade 
facilitation as two areas in which small economies had high hopes of achieving the necessary leeway 
for a proper and effective integration into worl d trade.  He was aware of the pressing need for 
concrete proposals in these areas if the Dedicated Se ssion was to make any headway in its work;  in 
fact, this was one of the worries that had been expr essed by certain delegations in bilateral meetings.  
The delegation of El Salvador was working together  with other delegations to submit such proposals 
in the near future.  He emphasized that the number and magnitude of the different drawbacks and problems that the small and vulnerable economies have to deal with called for the effective 
introduction of solutions aimed at achieving their eff ective integration into the world trading system.  
As Members came close to agreei ng on a "first approximation", in July 2005 and possible results of 
the Hong Kong Ministerial Conference, he highlighted the extreme importance of ensuring, that the 
small and vulnerable economies were  given the space to which they  were entitled under the Doha 
mandate and the Decision of 1 August 2004.  Si milarly, he stressed the importance of working 
towards concrete results at the Ministerial Conferen ce in December 2005.  Finally, he thanked various 
delegations for the valuable time they had spent conversing with the delegations of the small and 
vulnerable economies, giving them a better opportunity to achieve their working objectives.  He 
hoped that small economies could continue to rely on this kind of accessibility in future.  He noted 
that his delegation was ready to continue discussing with all delegations that so wish in order to 
achieve the objective pursued in accordance with the given mandate. 
16. The representative of Venezuela
 noted that the title of the paper presented in document 
WT/COMTD/SE/W/13 differed from the title of the sa me document appearing in the agenda for the 
meeting.  He requested the Secretariat to clarify this issue. 
17. The Secretariat clarified that the correct name was that which appeared in document 
WT/COMTD/SE/W/13.  A revision of the Airgram (WTO/AIR/2570/Rev.2) would be issued to rectify this oversight. 
18. The representative of Guatemala
 said that as Members sought to make constructive headway 
with the Work Programme in the CTD and under th e auspices of the General Council, the small 
economies had been working extremely hard, both amongst themselves and in consultations with 
various Members.  The document presented toda y, which Guatemala fully supported, was further 
witness to the intensity of their wo rk.  This was an issue of vital significance for Guatemala.  In the 
current state of the discussions, Guatemala believed that it was important to direct efforts towards developing general lines of action that would lead to  concrete solutions.  The solutions should address  WT/COMTD/SE/M/11 
 Page 7 
 
 
 the fundamental considerations underlying the sma ll economies' insignificant share in international 
trade (0.04 per cent in the case of Guatemala) a nd the ensuing limitations faced in the multilateral 
trading system.  It was, therefore, necessary to a dopt elements that should be  viewed and approved as 
lines of action for the small economies' participatio n in the Doha Development Round.  This would 
offer the Ministers a large window of opportunity  for framing a positive response to the multilateral 
trading system, so as to promote broader and growing participation of small economies in 
international trade and thus contribute to their economic developm ent and poverty reduction 
strategies.  As an initial step, his delegation belie ved that special emphasis should be placed on all 
negotiating areas, and specially on products and servi ces of export interest to small economies.  The 
negotiations on rules and procedures in the WTO s hould take into special account the particular 
interests of small economies and the features that  cause the vulnerability of such economies, in 
particular, their limited institutional capaciti es and capacity to take on commitments.  Small 
economies should be given the flexibility they need  to implement the commitments negotiated in 
agriculture and non-agricultural products, which were  two areas of critical importance to them.  In 
services too, his delegation thought that the nego tiations should address the interests of small 
economies, especially in areas which they consider  should be opened up, for example under Mode 4.  
As regards the negotiations on tr ade facilitation, he believed it w as necessary to accommodate the 
particular needs of small economies.  The technical assistance and capacity-building element was most important in this negotiating area.  The delegation of Guatemala stood ready to work constructively to fulfil the paragraph 35 Ministeria l mandate and to secure a positive outcome for the 
forthcoming Ministerial Meeting in Hong Kong, China. 
19. In resuming the meeting in formal mode, the Chairman
 noted that during the discussions, the 
Dedicated Session had heard different views on how to address the characteristics and problems presented by small economies.  The Dedicated Session ha d been assisted in this task by the interesting 
ideas that were presented in document WT/COMTD/SE/W/13.  He thought the discussion at the meeting had laid the foundations  upon which the Dedicated Session could start to frame responses to 
the trade-related issues and problems raised so far by the proponents.  The Chairman remained 
optimistic about delivering on the mandate of the De dicated Session, but noted that there was still 
much to accomplish before the December Ministerial.   The Dedicated Session would have to redouble its efforts.  
C. O
THER BUSINESS  
20. There were no items discussed under other business.  The meeting was adjourned . 
__________