RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/COMTD/LDC/M/50 
29 August 2008 
 (08-4019) 
Sub-Committee on Least-Developed Countries 
Fiftieth Session  
 
 
 
NOTE ON THE MEETING OF 26 JUNE 2008 
 
Chairperson:  Ambassador Jean Feyder (Luxembourg) 
 
A. ADOPTION OF THE AGENDA .........................................................................................................1  
B. WTO WORK PROGRAMME FOR THE LEAST -DEVELOPED COUNTRIES 
(WT/COMTD /LDC/11):...................................................................................................................1  
(I) Market Access for Leas t-Developed Countries...........................................................................1  
(II) Trade-Related Technical Assistance and Capacity-Building Initiatives for Least-
Developed Countries............................................................................................................ .....13  
C. OTHER BUSINESS .......................................................................................................................18  
 
 A. 
ADOPTION OF THE AGENDA  
1. The Chairman  informed Members that, under "Other Business", the United Nations Industrial 
Development Organization (UNIDO) would make a report on the LDC Ministerial Conference to be 
held in Cambodia later in the year.   
2. The representative of Lesotho  said that his delegation wished to make a statement, on behalf 
of the LDCs, relating to LDC accession to the WTO, under "Other Business". 
3. The Sub-Committee adopted the draft age nda contained in document WTO/AIR/3206. 
B. WTO WORK PROGRAMME FOR THE LEAST -DEVELOPED COUNTRIES (WT/COMTD /LDC/11) 
4. The Chairman  said that he would take up two elements of the WTO Work Programme for the 
LDCs:  (i) market access for LDCs;  and (ii) trad e-related technical assist ance and capacity-building 
initiatives for LDCs.   
(I) Market Access for Least-Developed Countries 
- Follow-up to the annual market access review: least-developed countries and trade in food 
and agricultural products (JOB(08)/49)  
5. The Chairman
 recalled that in the context of the Sub-Committee's discussions on the 
Secretariat note entitled "Market Access for Products  and Services of Export Interest to LDCs" 
(WT/COMTD/LDC/W/41/Rev.1), it was noted that ma ny LDC exporters of agricultural and food 
products were experiencing a deficit in their trad e balance.  The LDCs had requested that special 
attention be given to the market access situati on of LDCs exporting agricultural products including 
food products at the next annual review of ma rket access for products originating from LDCs.  
Pending an elaborate assessment of LDC trade in agricultural and food products which would be WT/COMTD/LDC/M/50 
Page 2  
 
  made in the Secretariat's annual market access revi ew paper later in the year, he said that he had 
requested the Secretariat to prepare a brief note to  initiate a discussion in the Sub-Committee on this 
topical subject.  Accordingly, the Secretariat had prepared a brief note entitled "Least-Developed 
Countries and Trade in Food and Agricultural Produc ts", contained in document JOB(08)/49.  The 
note highlighted the current price trends in food and agricultural products and their causes.  It featured 
domestic and international trade policy issues associated  with the food crisis, including the role of the 
Doha Development Agenda (DDA).  It also include d a section on the interface between food security 
and trade.  He invited the Secretariat to briefly introduce the document.  
6. The representative of the Secretariat
 said that the note was a follow-up to the discussion on 
the annual review of market access for products  originating from LDCs.  The current note had 
introduced some of the issues behind the recent incr ease in prices of food and the consequences that 
could follow.  He said that the food and commodity prices, in general, had gone up in recent times and 
that it had been a subject for discussion in a number of international fora.  Most recently, the Food and 
Agriculture Organization (FAO) organized a High-le vel Conference on World Food Security in Rome 
in June 2008. 
7. He pointed out that considerable work on food prices was being carried out by international 
organizations, non-governmental organizations (N GOs) and national governments.  Some of the 
results coming out from these exercises appeared to be conflicting.  For example, the International 
Food Policy Research Institute (IFPRI) had suggested that the beneficiaries of high food prices would 
be limited while the Carnegie Endowment had sub scribed to the opposite view stating that actual 
beneficiaries would be widespread.  The Secretariat note did not make an attempt to explore all of 
such studies and their results, many of which were  made under simplistic gene ralizations.  Overall, 
research by different organizations had been sugges ting that food prices might fall substantially below 
the level they were now, but that they were un likely to fall back to the 2001 and 2002 levels.  
8. He said that the different researchers put different weight on different factors being the cause 
of high food prices.  These factors, inter alia , ranged from an increase in world population to 
increased urbanization.  In addition, agricultural la nd and production were being used for purposes 
other than food.  He noted that all such factors ha d an impact on the current food prices.  With regard 
to the degree of impact, various analysis had show n different results.  The Secretariat note did not 
look at the impact in greater depth.  Nor did it point out the most important factor that had led to the high prices of food products.  The issue would be de veloped further in the Secretariat's annual market 
access review paper to be issued in October 2008.  
9. The Chairman
 agreed with the intervention made by the Secretariat that the causes of the 
sharp increase in the prices of f ood products were varied and that mu ch more analysis would need to 
be made on the issue.  He said that the global food  crisis had been causing enormous suffering for the 
most vulnerable sections of the population in the LDCs .  He noted that according to the estimates by 
FAO, the cost of the food basket imported by the LDCs and the net-food importing developing 
countries (NFIDCs) would soon become more than twice the level of 2000.  The present food crisis 
had drawn the attention of international community.  A number of initiatives had already been taken.  
Numerous meetings had been held.  The Secretary- General of the United Nations had set up a Task 
Force on the matter.  A Summit was recently held un der the auspices of FAO from 3 to 5 June 2008 in 
Rome.  The Human Rights Council in Geneva had held a Special Session on the issue pointing out that the right to food was under threat for an increa sing number of people in the world.  Last, but not 
the least, the trade-related aspects concerning the issue were being discussed under the Doha Round 
of negotiations.  He said that governments had been  taking steps to reduce the domestic impact of 
higher food prices.  For example, some countries had already restricted their exports in order to limit 
the impact of rising food prices on domestic consumer s.  He drew Members' attention to paragraph 2 
of the Secretariat note, which stated that in th e early 1960s, developing countries had an overall 
agricultural trade surplus of US$7 billion per year, and by the end of the 1980s that surplus had  WT/COMTD/LDC/M/50 
 Page 3 
 
 
  disappeared.  He underlined the importance of explor ing the reasons for such a change in the trade 
pattern of LDCs in agricultural and food products.  He also stressed on the need to find policies to 
reverse this trend.  He invited Members to take the floor.   
10. The representative of Lesotho , on behalf of the LDCs, thanked the Secretariat for its note 
which had covered a topical issue.  He expressed  gratitude to the Chairman who had shown keen 
interest in pursuing this important issue which the LDCs had raised at the previous meeting of the 
Sub-Committee.  He noted that the current food crisis was being discussed in a number of international fora.  He recalled the High-Level C onference on World Food Security held in Rome in 
June 2008.  That Conference was also attended by the Prime Minister of Lesotho.  His Prime Minister 
had also given a key note address on the food crisis issue at the International Labour Conference held 
in Geneva in June 2008.   
11. The Secretariat note had touched upon the food and agriculture production and trade policies 
pursued by the governments.  This was a challenging time with regard to food and fuel not only for LDCs but also for many other developing countries.  He observed that the prices of fuel had also been 
a major cause of concern for some developed count ries.  The last annual market access review paper 
by the Secretariat had shown that it was the LDC ag ricultural or commodity exporters which were not 
benefiting from trade.  Most of the LDC agricultural exporters were experiencing a trade deficit.  In 
that context, he had requested that more atten tion be given to market access situation of LDCs 
predominantly dependent on agricultural exports. 
12. The importance of agriculture which had b een the backbone of LDCs could not be 
overemphasized.  This sector was unable to effectiv ely contribute to the economic development of the 
LDCs.  Recent World Bank reports had shown that  non-tariff measures, as well as subsidies, were 
undermining LDC agricultural exports.  The note had shown that LDCs had been experiencing trade 
deficit in agriculture and food products since the year 2000.  This was a cause of concern for the 
LDCs.  The causes of current rise in food prices we re not unknown to polic y makers.  While high 
energy price or increased demand for food was one of the major factors, it was also a problem 
stemming from increased bio fuel production which had been taking away agricultural land.  He 
underlined the importance of addressing these problem s effectively so that the population in LDCs 
could be fed adequately.  He also emphasized the need  to find an effective solution to the cotton issue, 
which was the mainstay of a number of LDCs.   
13. He further noted that governments around the world had been taking actions to curb the 
adverse consequences of food price inflation.  Some  countries resorted to export restrictions, while 
others relaxed import duties on certa in food items.  He pointed out th at such measures were temporary 
in nature and would not solve the systemic distorti ons prevailing in the market.  He said that it was 
important to bring to an end all trade-distorting domestic support in agricultural sector.  High tariffs 
levied on agricultural products, as well as non-tariff measures on products of export interest to LDCs, 
should be effectively addressed.  Moreover, artific ial low prices resulting from huge subsidies should 
be eliminated.  The LDCs had long been sufferi ng from declining terms of trade in commodities.  
These low prices had acted as a disincentive for the governments and the producers in the LDCs to 
invest in the agricultural sector.  Subsidies for pr oduction and export in de veloped countries had made 
LDC products non-competitive in the world market.  He apprehended that unless these issues were addressed effectively in the Doha Round of nego tiations, the LDCs would not benefit from world 
trade.   
14. He went on to say that the distributional consequences from the current trends in prices were 
severe for poor countries like LDCs.  Most of the poor people had been spe nding a substantial amount 
of their budget on food consumption.  These pe ople were already experiencing difficulties in 
maintaining their normal diet.  The governments were making attempts to cushion the damage by WT/COMTD/LDC/M/50 
Page 4  
 
  subsidizing food which in turn was taking away r esources from other development expenditures.  The 
present food crisis had become a serious cha llenge to the development of many LDCs. 
15. He said that the DDA negotiations should ensure greater and fairer competition in world trade 
in food and agricultural products.  Pending the ou tcome of the DDA negotiations, some immediate 
assistance was required to relieve the pressure on LDC economies due to the food price hike.  He 
expressed concern over the declining volume of food  aid to LDCs and NFIDCs.  Food aid accounted 
for 4.5 per cent of total cereal imports by LDCs and the NFIDCs in the year 2005 and 2006, which 
dropped from 10.4 per cent in 2000 and 2001.  This was a situation of double jeopardy for the LDCs 
since the food import bill was rising while, at the same time, food aid was declining.  He said that the 
LDCs would like to enhance their understanding on the performance of their agricultural sector and 
that was why the forthcoming market access study to be undertaken by the Secretariat was eagerly 
awaited by the LDCs.  He suggested that the Secret ariat study should explore, in a holistic manner, 
the problems prevalent in the LDC agricultural sector.  It would be useful to examine issues such as 
high tariffs, standards and other non-tariff measures, technology and infrastructure issues in a selected 
number of products. 
16. The representative of Bangladesh
 associated himself with the statement made by the 
representative of Lesotho, on behalf of the LDCs.  He  said that the recent price spiral of food products 
was having devastating effects on many developing countries, especially on the LDCs and NFIDCs.  
World leaders had gathered in several fora, including  in Rome in June 2008 to find solutions to the 
prevailing food crisis.  He hoped that the WTO, th rough its rules-based trading system, would be a 
part of the overall solution of the crisis.   
17. He observed from the note that developing count ries had an overall agricultural surplus of 
almost US$7 billion per year in the early 1960s.  That surplus had disappeared by the end of the 
1980s.  The agricultural trade deficit of LDCs had widened since the late 1990s.  Only a handful of 
LDCs had been able to register trade surplus in food products in 2005 and 2006.  Data was not 
available to show that those LDCs continued to earn that surplus today.  Most of the LDCs were net 
food importers.  The rising food import bill along with rising price of fuel were putting a severe strain 
on the balance-of-payment situation of LDCs.  The price forecasts showed that prices of principal 
foodstuff would continue to rise in 2008 and 2009.  He pointed out that the net-food importing LDCs 
were grappling with measures to contain the domestic food price inflation.  For instance, the prices of 
rice – which had been the staple food for Banglad esh – had increased 75 per cent in February 2008 
compared to February 2007.  In this context, the FAO had estimated that the cost of the food basket 
imported by the LDCs and the NFIDCs would soon be twice the level it had been in the year 2000. 
18. He said that trade reform was one important el ement of the medium- to long-term policies to 
address high food prices.  In the short-term, food aid, development assistance, and balance-of-payments support would be critical.  These measures were not necessarily within the 
competence of the WTO.  In the longer-term, trade liberalization under DDA, productivity 
improvement, stockpiling of food security reserves, investment in science and technology could make 
important contributions to improving food security.  He underlined the importance of looking at these 
issues in more depth so as to find effective soluti ons to the food price hike.  He added that any 
solution to the current food crisis should keep in mind all stakeholders – net-food importing and 
net-food exporting countries.  Addressing food cr isis as well as increasing exports of food and 
agricultural products from LDCs woul d require concerted efforts from  the international community.  
The WTO alone would not be able to solve th e current problems of food prices.  The DDA 
negotiations, if concluded with their intended objectives, could rectify the current weaknesses of 
agricultural trade in the long run. 
19. The representative of the European Communities
 thanked the Secretariat for its work in 
preparing the note.  She welcomed the fact that th e note had recognized the contributions of the DDA  WT/COMTD/LDC/M/50 
 Page 5 
 
 
  negotiations in addressing the systemic distortions in  international market for agricultural products.  
The comparative advantage of the WTO lay here.  Her delegation looked forward to the successful 
conclusion of the DDA negotiations.   
20. She pointed out that the EC had made important  offers in the DDA negotiations, including in 
the area of agriculture, which could have a positiv e impact in improving the problem of food 
insecurity in the LDCs and developing countries.   Those offers included reduction of tariffs, 
elimination of export subsidies and reduction of tr ade-distorting domestic subsidies.  The EC also 
looked forward to the improvements of disciplines on f ood aid.  In this regard, some of the provisions 
currently under negotiations would encourage Memb ers to gradually move towards cash-based food 
aid and to procure food from local and regi onal sources to the extent possible.   
21. She said that the EU had been active in the area of development assistance.  The EC had been 
working on designing a response strategy on the hi gh food prices, which would include actions and 
measures to support governments, poor consumers a nd agricultural producers in the developing 
countries – in the short, medium and long term.  The strategy would centre around three main areas:  (i) providing humanitarian assistance in the short- term, including helping governments to improve 
social safety nets;  (ii) providing support to farm ers so as to increase production in agriculture;  and 
(iii) increasing investment in agriculture as it w as critical for sustainable food security.  She 
concluded by saying that her delegation was committed to finding an outcome in the DDA 
negotiations and to strengthen disciplines in the ar ea of agriculture, as this could make significant 
contributions to overcom ing food insecurity in developing countries. 
22. The representative of Haiti
 said that the note had provided an initial analysis of the present 
food crisis.  He associated himself with the stat ement made by the representative of Lesotho, on 
behalf of the LDCs.  He said that his country w as among those hard hit by the current hike in food 
prices.  The price of food and agricultural products had gone up by 40 per cent compared to the previous year.  This skyrocketing of prices had le d to the misery of people.  The Parliament was 
dissolved since April 2008.  
23. He said that over the past two decades there had been enormous cha llenges to enhance the 
production of food.  Local production, on average,  was equivalent to 17 million tonnes which was 
able to feed 60 per cent of the population.  His Government had been importing 2 million tonnes of grain each year which accounted for only a half of the country's needs.  The United States had been 
the major provider of food aid which included, inter alia , grains, oils, sugar and pulses.  He regretted 
the fact that food aid had been declining in recent years.  He said that climate change had been a 
major factor for the recent high prices of food produc ts.  His country had faced two cyclones in 2004 
and 2005 causing loss to the capacity of food pro duction.  The increase in oil and oil by-products 
prices were also fuelling the price of food products.  He underlined the importance of a 
comprehensive review of all fact ors causing high food prices.   
24. The representative of Rwanda
 associated himself with the statement made by the 
representative of Lesotho, on behalf of the LDCs.  Th e food crisis that had inflicted suffering to many 
countries had been discussed in several fora, incl uding in summits involving the Heads of States.  
During the UNCTAD XII Conference held in Accra, Gh ana, in April 2008, the Secretary-General of 
the United Nations had established a Task Force on th e Global Food Security Crisis.  Since then, there 
had been many high-level meetings seeking to fi nd measures that could be put in place to address the 
global food price challenge.  He ac knowledged that it was not easy to list all factors contributing to 
the current food crisis.  Some factors might be structur al in nature.  In this regard, he underlined the 
importance of the Aid-for-Trade initiative.  He said that both national and international measures were 
required to enhance agricultural production in the LDCs .  He requested the Secretariat to explore, if 
possible, the contribution by aid to agricultural de velopment in the LDCs including data on research 
and development expenditures in agricultural sector.  He also wished to kn ow how the agriculture WT/COMTD/LDC/M/50 
Page 6  
 
  sector had been faring in terms of receiving aid vis-à-vis  other sectors.  He emphasized the need to 
strengthen the productive capacity in the LDCs, in cluding through technological development, which 
could provide a long-term solution to the problem of the recent food crisis faced by the LDCs.   
25. The representative of Guinea
 said that the current food crisis was of great concern to the 
international community, in particular for poor co untries like LDCs.  She associated herself with the 
statement made by the representative of Lesotho, on be half of the LDCs.  Her country had been struck 
by the food crisis for over ten months.  The price of rice had gone up by over 70 per cent.  The situation was a cause of concern for her Government .  Her Government had participated in the recent 
Conference held in Rome in June 2008.  She said that at the sideline of the UNCTAD XII Conference 
held in Accra in April 2008, a number of Ministers, including the Minister of Guinea, had held a 
meeting to develop a regional a pproach to address the food crisis .  Enhancing regional food and 
agricultural production was one way to tackle the f ood crisis.  Her Government, in cooperation with 
bilateral and multilateral partners, ha d started working to find a solution to the food crisis.  She hoped 
that the matter would be further studied in greater  detail.  She hoped that the DDA negotiations could 
contribute to solving the prevailing situation. 
26. The representative of Nepal
 associated himself with the statement made by the representative 
of Lesotho, on behalf of the LDCs.  He said that the current situation with food prices was alarming, 
particularly for net-food importing countries.  Th e normal life of people had been hit hard.  Some 
countries had seen violent protests.  He emphasized the need for taking some urgent actions to address the high prices of foods.  In this regard, he we lcomed the initiative by the UN Secretary-General to 
establish a Task Force to work on the issue of high f ood prices.  In the view of his delegation, there 
should be both short- and long-term measures to a ddress the present situation.  Emergency food aid 
would need to be provided to the badly affected  countries.  Financial and technical assistance, 
including the establishment of special fund facilities,  were needed for countries to formulate and 
implement short- and long-term strategies.  He underlined the importance of attaching priority 
attention to the development of productive capacity and research and development in the agricultural 
sector.  He said that both food accessibility as well as its affordability were important to deal with the 
food crisis.   
27. He went on to say that the LDCs had been lacking capacity and resources to implement the 
WTO commitments, in particular the commitments unde rtaken by some LDCs at the time of their 
accession to the WTO.  He said that effective ma rket access including through removal of non-tariff 
measures on products of export interest to LDCs, as well as support for strengthening supply-side 
capacity were essential pillars for LDCs to benefici ally integrate into world trade.  Assistance was 
required to meet the non-tariff measures which were becoming effective barriers to market access for 
LDC products.   
28. The representative of the Secretaria
t noted that there were good suggestions from the floor 
and said that the Secretariat would try to take some  of them on board when preparing the next version 
of the paper.  He said that there were many fact ors behind the rise in prices.  Access to markets was 
also conditioned by many factors.  Non-tariff measur es were one of the factors which needed to be 
looked at in greater depth.  Any hindrance to exports from LDCs could impact food security as it 
would also affect foreign exchange earnings of LDCs.   
29. He said that the factors behind the rise in pr ices could be grouped into four categories, 
namely, production, demand, export and import.  Th ese determinants were not necessarily linked to 
food and agricultural products.  For instance, expor ts and imports of other goods could improve the 
resources of countries with whom it could buy food.  In  this regard, he pointed out that the definition 
of food security, which was developed in 1996 at th e World Food Summit in Rome, stipulated that it 
was access to food to meet dietary needs and not the production of food which could lead to food security.  Access to food could come either by production or by purchase.  WT/COMTD/LDC/M/50 
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  30. He added that most of the commodities were priced  in US dollars.  If the exchange rate effect 
were factored out, it would appear that the prices of  food products had not gone up very much.  In 
fact, the food prices in constant terms at present we re lower than they were in the 1970s.  He pointed 
out that the difference in food prices between now and the 1970s could, to a large extent, be attributed 
to the level of urbanization.  Increased urbanization had led to a structural change in the demand for 
food products.  As a result, high prices of food had been  affecting a vast majority of the urban poor.   
31. Trade could play a key role in addressing food security.  It was, however, not the only factor 
in attaining food security by a country.  Many LDCs  were net food importers.  Access to food through 
imports would be critical for their food security.  However, for a large number of countries food 
security could only be achieved through imports as those countries could not afford to produce 
enough food to feed its entire population.  He underlined the importance of putting in place 
appropriate domestic policies to address food security issues.  Domestic policies were equally 
important like international policies to ensure food secu rity and to cushion the pressure of high prices.   
32. He said that the Declaration of the High-Leve l Conference on World Food Security held in 
Rome in June 2008 had recommended both short-, as well as long-term policy responses to address 
high prices.  Short-term measures included, inter alia , food aid and development assistance.  In this 
regard, he noted that the participants at the Rome Conference did not recommend policies like export 
taxes or export restrictions on the grounds that these measures could restrict the supply of food to 
other countries, undermining their food security.  L ong-term measures included trade liberalization, 
investment in technology, research and development, and other measures.  He pointed out that the low 
prices of commodities had discouraged investment in  research and development with its attendant 
impact on food productivity.  A number of organizations had pointed out that the decline in 
investment in research and development and in infra structure had resulted in lower productivity.  He 
added that trade and production polic ies of a particular country coul d be best developed in a less 
distorted trading system.  Moreover, the producti on of food and agricultural products would increase 
in a less distorted world agricultural market.  If  prices were artificially suppressed or increased, 
responses from governments would be sub-optimal.  For instance, it might not be a viable decision by 
a country to increase the production of a particular product when its price had gone up artificially due 
to an export restriction measure imposed by anot her country.  He said that the DDA negotiations had 
sought to address the distortions in the interna tional market for agricultural products.  The DDA 
offered an opportunity for countries to develop policies in a less distorted environment.   
33. The Chairman  thanked Members for their active partic ipation in the discussion.  The issues 
relating to the food price crisis were complex.  He would look forward to an in-depth discussion later 
in the year at the Sub-Committee.  He said that he  himself had been involved with some research on 
this issue.   
34. He said that the current increase in food prices had come after a long period of falling food 
prices between 1994 to 2004.   Export prices for products like coffee and cocoa had fallen by 
60 per cent over the past 20 years.  Although the world had been witnessing a trend of rising prices of 
late, there had also been a volatility in the prices of food and agricultural products.  The significant 
fluctuations in prices were a major challenge for agricultural producers.  He underlined the 
importance of addressing the fluctuations in prices which had been a major problem for many agricultural commodities.  He said that the global food crisis brought into question the merits of 
development models pursued by governments over many  years, including the structural adjustment 
programmes carried out by governments with the support of the World Bank and the IMF.  The 
liberalization of economies had affected the agricu ltural sector in developing countries.  The priority 
had been shifted to exports so that countries coul d get enough income to pay off their debts.  That 
development model could not lead to investment in agriculture and in food production, particularly 
since the 1980s.  Moreover, prices of commodities had continued to fall.  The time had come to see 
how that development model could be corrected.  Th e official development assistance (ODA) had not WT/COMTD/LDC/M/50 
Page 8  
 
  been allocated to the agricultural sector at a desired level.  At the start of the 1980s, 18 per cent of 
ODA had been allocated to agricultural sector, which had now been reduced to a mere 3 to 4 per cent.   
35. He went on to say that the current situation n eeded short-, medium- and long-term solutions.  
Short-term solutions included emergency huma nitarian aid through the World Food Programme 
(WFP).  He suggested that governments, in coopera tion with the international community, should put 
in place food security programmes.  Medium- and long-term solutions shou ld include support for 
agriculture, particularly in the production of fo od products.  He emphasized the importance of 
providing support to small farming which had been one of the major characteristics of the LDC 
agricultural sector.  These small farmers and family farmers had been working on small arable areas – the output from which had been low.  They also did not have mechanical support to enhance output.  
With the enhanced support to farmers – by maki ng fertilizers and seeds available – there could be 
enormous output from the agriculture sector in a s hort span of time.  The World Bank had also echoed 
the point that greater investment in agriculture coul d be effective in combating poverty.  He reiterated 
that the development model that had been pursued  needed to be adjusted taking into account the 
experiences of developing countries.  He was aware th at the African ministers in a recent meeting in 
Kenya had made commitments to  make national resources ava ilable for the development of 
agriculture and food production.   
36. He felt that it was important to provide farmers with producer prices to cover their cost of 
production, as this could prevent fluctuations in f ood prices and could bring stability in the long run.  
Without a guarantee of getting returns from investme nts, farmers would not be willing to invest in 
agriculture.  Governments, as well as internati onal community, including regional organizations 
should explore solutions to provide farmers with a reas onable rate of return of their investments.  He 
noted that the Economic Community of West A frican States (ECOWAS) was making efforts to 
extend support to foster regional agricultural market s.  He also agreed with many speakers that 
trade-distorting support should be eliminated to pave the way for a fair international trade in 
agricultural and food products.  The DDA negotiations  could do its due part in mitigating the current 
food crisis – for example, with improved disciplines on food aid and elimination of export subsidies.  
All these measures would be useful to address the current food crisis. 
37. The representative of Mexico
 expressed appreciation for the comments made by the 
Chairman on the issue.  It had been a rich discussion.   The current food crisis had been affecting many 
countries.  The FAO Conference held in Rome in June 2008 recognized the importance of trade as 
one of the key factors to address high food prices.  She recognized the contributions that the DDA 
negotiations could make on this matter.  Ho wever, the role of the WTO was limited. 
38. She went on to say that the liberalization of trade and the elimination of subsidies in the 
agricultural sector could increase access to food prod ucts.  These measures could also have an impact 
on the purchasing power of consumers in developing c ountries.  It was vital that developing countries 
earn enough from exports to compensate the increase of  food prices.  She said that the contribution 
from the DDA negotiations in addressing the high pri ces of food would also depend on the extent to 
which subsidies were reduced and whether bound rat es for tariffs were reduced below actual applied 
tariff levels.  She noted from the Secretariat paper th at the current average bound tariff rates were well 
above applied rates in many countries.   
39. She acknowledged that important efforts were  being made under the DDA negotiations to 
overcome the supply-side constraints faced by the de veloping countries, in particular the LDCs.  The 
Aid-for-Trade initiative and the Enhanced Integrated  Framework (EIF) were important mechanisms to 
address the needs of LDCs.  It was, however, not clear how the WTO could make a significant contribution in resolving the non-tariff measures wh ich continued to be a major problem for many 
developing countries and LDCs.    WT/COMTD/LDC/M/50 
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  40. She suggested that the note to be prepared by  the Secretariat for the next meeting should 
focus more on the issues relating to non-tariff measur es.  It would be interesting to see how the WTO 
could make a contribution to work more closely with institutions that monitor standards and how 
affected countries could overcome the high costs and other constraints faced by them due to 
certification requirement.  She hoped that the probl ems stemming from various types of non-tariff 
measures could be addressed within the current Round of negotiations. 
41. The Chairman suggested that the Sub-Comm ittee take note of the Secretariat document 
contained in JOB(08)/49, as well as of the statements made. 
42. It was so agreed.  
- Market access issues for least-developed count ries in the area of trade in services:  
presentation by the United Nations Conf erence on Trade and Development (UNCTAD) 
 
43. The Chairman  recalled that the Sub-Committee, at its meeting in March 2008, had agreed to a 
proposal made by the LDCs to invite internationa l organizations which had undertaken service sector 
studies in the LDCs.  Pursuant to that decision,  the Secretariat had invited UNCTAD which was one 
of the agencies working in the area of trade in services.  He gave the floor to the representative of 
UNCTAD. 
44. The representative of UNCTAD  highlighted the organizations work with respect to LDCs on 
services.  She said that the Accra Accord a dopted at the UNCTAD XII Conference had placed 
fundamental importance on services and the need to increase the participation of developing 
countries, especially the LDCs in services trade.  Th at Accord recognized that integrating developing 
countries, especially the LDCs, remained a major de velopment challenge.  It stated that increased 
integration of LDCs into the global services econom y could be facilitated by progressively lowering 
foreign and domestic trade barriers.  Increased market opening would unlock new opportunities in sectors of interest to developing countries.  Th e Accra Accord also under scored the importance of 
sound national, regional and interna tional policies, strategies, regula tions, as well as institutions in the 
area of services to foster an enabling environmen t for building competitive services supply.  The 
proper domestic regulatory framework for services was fundamental for making services work for development.  She said that the Accra Accord ha d given UNCTAD a mandate to strengthen its work 
on services which, inter alia,  included:  (i) strengthening developi ng countries' capacity to increase 
their participation in global services' production a nd trade;  (ii) addressing regulatory and institutional 
frameworks to support domestic services'  capacity, efficiency and competitiveness;  (iii) conducting 
national services assessments and policy reviews;  (iv) contributing in multilateral and regional 
negotiations on services;  and (v) working on services data and statistics.  In all such areas, specific focus would be given to LDCs and Africa.  Sh e added that UNCTAD had been working with the 
WTO Secretariat to develop a manual for services trade data.  UNCTAD had also received a mandate to help develop capacity of developing countri es to establish their own negotiating priorities and 
capacity to negotiate and implemen t bilateral, regional and multilatera l trade agreements.  She pointed 
out that one important mandate received from the Accra Accord was to work on migration related issues.  UNCTAD would conduct research and analys is on the potential benefits and opportunities of 
trade, investment and developmental links betw een countries of origin of migrants and their 
communities abroad.  It would also continue to an alyze the potential of migrants' remittances and how 
such remittances could contribute to development  
45. She went on to say that UNCTAD had b een working on three pillars, namely, 
intergovernmental work, research and analysis and technical assistance to developing countries, in 
particular to the LDCs.  The work in the three pilla rs had been feeding into each other in a mutually 
supportive manner.  She then presented some figures relating to LDCs' participation in trade in 
services.  She said that services, on average, made up of 40 per cent of the GDP of LDCs.  Although WT/COMTD/LDC/M/50 
Page 10  
 
  services trade had been growing, LDCs had been expe riencing deficit in services trade balance.  In 
2006, travel (54 per cent) and transport (24 per cent) made up the major chunk of LDCs' services 
exports.  Although financial services accounted for a small percentage of overall commercial services 
export, the growth of exports in this services sector  was faster than that of travel or transport, 
reflecting the dynamism of the sector.  She said th at despite some positive performance, LDCs' share 
of world services exports remained unchanged at 0.5 per cent.   
46. She said that there were both gains and challeng es from temporary and circular movement of 
natural persons.  At a global level, the major re mittances-recipient countries were India, China, 
Mexico and the Philippines.  Since these count ries were large and populous , they ranked among the 
top remittances-recipient countries.  These countries were closely followed by some European 
countries such as Belgium, France and Spain.  Amo ng the LDCs, the top recipient of remittances was 
Bangladesh (US$6.4 billion in 2007) followed by Nepal, Yemen and Haiti.  She noted that the 
remittances received by the LDCs were small in absolu te figures compared to that of other countries.  
She said that the remittances had been playing an important role in the economy of a number of 
LDCs.  For example, remittances accounted for nearly  25 per cent of GDP in Lesotho in 2007.  It had 
been making similar contributions in the GDP of Haiti and Nepal.  Furthermore, research carried out 
in a number of LDCs such as Lesotho and Nepal had shown that remittances had made a significant 
contribution in the alleviation of poverty in th ese two LDCs.  For instance, 20 per cent of poverty 
reduction in Nepal during the period 1995 to 2004 was associated with remittances.  She noted that 
there were challenges as well with respect to migra tion.  High-skilled migration could lead to "brain 
drain".  That was why UNCTAD was making the case for temporary and circular migration.  In this 
regard, both sending and recipient countries could pl ay critical roles to facilitate and benefit from 
temporary and circular migration.  She undersco red the importance of cooperation between sending 
and recipient countries to promote return of workers to their home countries.  The "GRECO" 
programme adopted by the Government of Spain w as a case in point.  She said that movement of 
natural persons under mode 4 of GATS was part of the movements taking place between countries.  
Enhanced access on mode 4 had been a major devel opment component of the DDA.  LDCs had made 
a collective request on mode 4 in the negotiations.  They were also engaged in the implementation of 
LDC modalities in services negotiations.   
47. She continued her presentation by citing two specific examples of UNCTAD's assistance with 
respect to LDCs.  She elaborated on UNCTAD's work with the Southern African Development 
Community (SADC) – the focus of which had been to  assist SADC regional integration and to help 
participate more effectively in multilateral trade negotiations.  She noted that out of 14 SADC 
countries, eight were from LDCs.  The UNCTAD ha d undertaken services sectors assessment studies 
in SADC.  For instance, the study on Tanzania had thrown light on the strengths and weaknesses of its 
communication sector.  Although Tanzania had libe ralized mobile and other communication services, 
the level of teledensity in the country was low.  She said that through the services sectors assessment 
studies in SADC, six priority sectors in the area of services had been identified.  These included 
communication, construction, energy, finance, tran sport and tourism.  She outlined some of the 
findings of UNCTAD's work undertaken in SADC.  These findings, inter alia , included that:  (i) the 
contribution of services to GDP was small;  (ii) domestic supply of services was inadequate to meet local needs;  and (iii) universal  access to energy and communicati on services was limited.  She then 
went on to outline some of the policy options  identified which, among others, included:  
(i) strengthening of domestic supply capacity;  (ii) integration of informal sector into mainstream 
activities;  and (iii) promotion of certain priority sectors such as tourism.   
48. She said that financial services was one of the services sectors that had been examined in 
UNCTAD's intergovernmental meetings.  In this re gard, an expert group meeting was held focussing 
exclusively on financial services where the par ticipation of a number of LDCs was funded by 
UNCTAD.  Participants at that expert group meetin g recognized that liberalization of the financial 
sector could contribute to development.  For instance , liberalization of the financial sector in Nepal  WT/COMTD/LDC/M/50 
 Page 11 
 
 
  had resulted in the entry of new financial institutions .  At the same time, it was also highlighted that 
financial sector liberalization wit hout appropriate institu tional and regulatory framework could hurt 
the economy.  For instance, financial liberalization undertaken by Zambia in the early 1990s, in the 
absence of a sound regulatory framework had led to th e collapse of some of the banks.  She pointed 
out that for a number of LDCs, financial services were  highly concentrated in the urban areas.  Lack 
of innovative products had been undermining the pote ntial of this sector in the LDCs.  She drew 
Members' attention to some of the policy recomme ndations that had come out of the expert group 
meeting, which, inter alia , included:  (i) adoption of a services' policy by governments;  
(ii) investment in human capital so that rules a nd regulations were framed before liberalization was 
made;  (iii) prudent liberalization of capital account,  and (iv) fostering the development dimension of 
the financial sector, such as building micro-finance in stitutions.  It had been noted that a number of 
LDCs such as Ethiopia, Sudan and Zambia had started replicat ing the "GRAMEEN BANK" model 
which had been successful in Bangladesh in providing micro-finance to the poor.  She said that other 
than the financial services sector, expert group me etings had also been organized on distribution 
services, insurance services, logistic services and tourism services.  
49. In conclusion, she pointed out that the liberali zation of trade in services had been taking place 
at both the multilateral, as well as the regional level.  In this regard, she underlined the importance of 
ensuring coherence between the multilateral negotia tions and the liberalization taking place in the 
context of North-South regional trade agreements (RTAs) or South-South RTAs.  She stressed that 
flexibilities accorded to developing countries at the multilateral context should also be allowed at the 
regional levels.  She reiterated th at liberalization of trade in services could bring development, if 
preceded by appropriate institutional and regulator y framework.  In this regard, there was no 
"one-size-fits-all" formula.  Each LDC should de velop its regulatory capacity depending on its needs 
and priorities.  She said that LDCs should adop t a multi-stakeholder approach while undertaking 
services sectors reforms so that reforms were owne d by all stakeholders at the national level. 
50. The representative of Lesotho  expressed appreciation for UNCTAD's comprehensive 
presentation on the work relating to trade in services,  in particular for the LDCs.  The help of 
UNCTAD was very much needed as the size of the LD C missions in Geneva was too small to cover a 
wide spectrum of activities.  Services trade was an ar ea of importance to the LDCs.  In this area, the 
LDCs needed analytical and research support for thei r effective participation in the negotiations.  He 
hoped that with the involvement of UNCTAD and ot her organizations, the LDCs would be able to 
further enhance their understanding on services tr ade and better pursue their interests in the 
negotiations.   
51. He said that LDCs had opened their mark ets including in the services sectors on an 
autonomous basis.  That was an unilateral action ta ken under the structural adjustment programmes.  
Despite such efforts from the LDCs, there w as no market opening for LDC services and services 
suppliers.  He noted from the UNCTAD presenta tion that services sectors had been making a 
significant contribution in the GDP of many LDCs .  He underlined the importance of strengthening 
the regional capacity to benefit from international trade in services.   
52. He reiterated the importance of the implementa tion of the modalities for the special treatment 
for LDCs in the negotiations on trade in ser vices.  The LDCs had submitted a proposal on a 
mechanism to operationalize the special priority fo r LDCs in services trade.  There had been an 
impasse in the negotiations on this issue.  The S ecretariat had come up with an options paper to 
implement LDC modalities (JOB(08)/8) which the Members should explore to unlock the current 
impasse.  He believed that with commitment and g oodwill, Members would be able to find a feasible 
solution to move the issue forward.  The special pr iority was meant to enhance the participation of 
LDCs in services trade.  He also referred to the submission made by the LDCs on mode 4 (JOB(06)/155).  He informed Members that th e LDC Group was in the process of reviewing that WT/COMTD/LDC/M/50 
Page 12  
 
  submission with a view to making it more focussed.  In that regard, a study was being commissioned.  
He hoped that the LDCs would soon return to the issue with greater clarity and precision. 
53. The representative of Bangladesh
 noted from the presentation that the services sector had 
been contributing to 40 per cent of GDP in the LDCs.  That reflected the potential of services trade in 
the LDCs.  He sought information on the latest share of LDCs in global services trade which was 
0.4 per cent in 2003.  He stressed that the DDA negotiations should deliver on three key areas of 
importance to LDCs in services negotiations, name ly:  (i) adoption of a mechanism for according 
special priority to LDCs;  (ii) addressing the co llective request made by LDCs on mode 4;  and 
(iii) according flexibilities to LDCs in the develo pment of disciplines on domestic regulation.  It 
would be important for LDCs to receive assistan ce from UNCTAD in the above-mentioned areas.  He 
hoped that UNCTAD would help LDCs in assessi ng the strengths and weaknesses of the LDCs' 
services sectors. 
54. The representative of Tanzania  noted that the liberalization of trade in services might help all 
trading partners.  He wondered whether UNCTAD had undertaken any impact assessment of the 
liberalization that the LDCs had made under the stru ctural adjustment programmes.  He recalled that 
the guidelines and procedures for the negotiations on  trade in services had envisaged an assessment of 
trade in services and that the services negotiations would need to be adjusted in light of the results of 
that assessment.  He also wished to know wh ether the assessment studi es by UNCTAD, which 
apparently included his country, included the impa ct assessment of the liberalization made by his 
country in the services sectors.   
55. The representative of Zambia  thanked the Chairman for including the item on services on the 
agenda of the Sub-Committee's meeting.  She noted that the presentation had highlighted some of the 
challenges faced by the LDCs in fostering libera lization in services trade.  The presentation supported 
the position taken by the LDCs in the negotiations on  domestic regulation.  The LDCs needed help to 
set up regulatory institutions to refine the policies that regulated trade in services.  She underscored 
the importance of strengthening the existing regula tory framework in the LDCs before undertaking 
any commitments in the services negotiations, in par ticular in the area of domestic regulation.  She 
called upon Members to provide the LDCs with necessar y support in this regard so that they could 
benefit from services trade. 
56. The representative of the International Trade Centre  (ITC) said that ITC's work in the area of 
services trade had been complementing the work of UNCTAD.  He underlined the importance of 
mode 4 under GATS.  In this regard, remittances  received from workers abroad were making 
important contributions in the economies of LDCs.  From the ITC perspective, the challenges of 
"brain-drain" could be looked at as business oppor tunities for LDCs coming through educational 
services abroad.  He said that the ITC had been de veloping its services at three major levels.  At the 
micro level it had been focussing on marketing skills, while at the macro level the focus had been on 
awareness building.  At the level between micro and macro, the ITC had been focussing on business 
promotion.  While UNCTAD was working on the policy level, the ITC was focusing its work on the 
business level.  Since 2004, ITC had been helping LDCs, especially in Africa, to foster regional 
opportunities as the small size of the market was one of the key challenges for the LDCs in expanding 
services activities.  Regional integration was importa nt for LDCs' increased participation in global 
services trade, including to benefit from th e ongoing Economic Partnership Agreement (EPA) 
negotiations.  He encouraged Members to contact th e ITC for any information on its work in services  
trade, in particular on the African region. 
57. The representative of Nepa l said that his country had made some progress in the financial 
services sector.  In this regard, the number of fina ncial institutions had increased from less than ten in 
1992 to more than a hundred in recent times.  Ho wever, these financial institutions had not been 
mature enough to guard against fre quent bankruptcy, leading to a loss of resources put by customers  WT/COMTD/LDC/M/50 
 Page 13 
 
 
  into those institutions.  That experience reinfor ced the need for improved and effective regulatory 
framework in the LDCs.  The re mittances received from workers abro ad had been contributing to 
reducing poverty and inequality in Nepal.  That t oo was not immune from drawbacks.  Some brokers 
were involved in the movement of natural persons ab road depriving sufficient in come to the workers.  
An effective regulatory framework was also needed to ensure that benefits accruing to the persons 
providing services abroad under mode 4.  He said th at there should be effective agreement between 
sending and recipient states to help reduce fraudulen ce in the movement of natural persons.  He 
informed Members that services sector assessment for his country was scheduled for July 2008 in 
which UNCTAD had also been involved. 
58. The Chairman  found the presentation by UNCTAD interesting.  It covered a wide spectrum of 
issues relating to trade in services.  He had a particul ar point on financial services.  He said that access 
to credit was an important factor for the LDCs.  In this regard, he recalled an UNCTAD document 
prepared a few months ago which had presented the case for developing national financial institutions 
in Africa.  That idea could be explored further, in particular in the context of the preparation for the 
forthcoming Summit in Dubai, which would be  a follow-up to the Monterrey Conference on 
Financing for Development.  Lack of innovation in the banking system had been a major challenge for 
many developing countries.  In that context, he gave the example of the difficulties faced by the 
farmers in Western Africa in having access to credit.  Those farmers would need to pay as high as 18 to 20 per cent interest rates.  The financial and banking systems in LDCs needed reforms, in 
particular ensuring that interest rates were at reas onable levels to encourage farmers to take credit. 
59. The representative of UNCTAD
 thanked Members and other organizations for their 
appreciation of UNCTAD's work.  She would ma ke available the electronic version of her 
presentation soon.  She also encouraged Members to contact UNCTAD for any supporting material.  
Responding to the question raised by the represen tative of Tanzania, she said that the assessment 
being carried out by UNCTAD could feed into the assessment exercise being conducted at the Special 
Session of the Council for Trade in Services.  In th is regard, the assessment done on Rwanda with the 
support of UNCTAD had been presented to that Special Session a few years ago.  Moreover, 
UNCTAD had been invited to that Special Se ssion, to present the findings of one of its 
intergovernmental meetings that dealt with services  sectors assessments.  With regard to the point 
made by the representatives of Zambia and Nepal on the importance of building regulatory 
frameworks in the LDCs, she said that UNCTAD would undertake multi-year expert meetings 
concerning regulatory and institutiona l frameworks.  In fact, UNCTAD would be working on this area 
for a period of four years with a specific focus on building regulatory and institutional capacity in the 
LDCs in services sector.  These activities by UNC TAD were also fitting well with endeavours 
undertaken by organizations such as the ITC. 
60. The Chairman  thanked UNCTAD and Members for their contribution in the debate.  He said 
that the Sub-Committee would remain engaged in following the developments in services trade, in 
particular those of interest to the LDCs.  He hope d that the WTO would remain in close contact with 
UNCTAD and other organizations to follow the work w ith respect to trade in services.  He suggested 
that the Sub-Committee take note of the presentati on made by UNCTAD, as well as of the statements 
made. 
61. It was so agreed . 
(II) Trade-Related Technical Assistance and C apacity-Building Initiatives for Least-Developed 
Countries 
- WTO technical assistance and training to the least-developed countries, including in the area 
of the Doha Work Programme:  Report by the Secretariat  WT/COMTD/LDC/M/50 
Page 14  
 
  62. The Chairman
 recalled that according to the Work Programme for the LDCs, the 
Sub-Committee was required to monitor technical assi stance support provided to the LDCs.  Pursuant 
to that mandate, the Sub-Committee had been cons idering this item on an annual basis since the 
adoption of the Work Programme.  He invited th e representative of the Institute for Training and 
Technical Cooperation (ITTC) to make the report. 
63. The representative of the Secretariat  said that the ITTC had been attaching high importance to 
providing technical assistance to the LDCs.  The LDCs had remained a priority for the Secretariat in 
the implementation of its technical assistance activ ities at national, regional and global levels.  The 
ITTC was committed to ensure that issues of interest  to LDCs received priority in the delivery of 
WTO's trade-related technical assistance (TRTA).  He said that he had assumed responsibility as 
Director of the ITTC only recently, and had alr eady initiated a dialogue with Members including 
LDCs to see how best to ensure that technical assi stance could make an impact in building capacity in 
the LDCs.  He would continue to maintain dial ogue and discussion with Members.  He said that 
certain initiatives such as the needs assessment studies were being carried  out in order to best respond 
to the needs of developing countries and LDCs.  That  could be a starting point for targeted technical 
assistance.  He thanked the LDCs, as well as other Me mbers, for their cooperation in carrying out the 
dialogue with the ITTC to make technical assistance more effective and targeted.  In conclusion, he 
drew the attention of the LDCs to their entitlement of  three national activities per year.  In this regard, 
the Secretariat had received responses from a few LDCs while many LDCs were yet to make any request for national activities for 2008.  He encourag ed the LDCs to submit their requests for national 
technical assistance activities as soon as possible.  He gave the floor to his colleague in the ITTC to 
provide further details of the technical a ssistance support being provided to the LDCs. 
64. The representative of the Secretariat
 said that the Committee on Trade and Development 
(CTD), at its meeting on 15 July 2008, would c onsider the report on TRTA activities undertaken in 
2007.  He said that his report would therefore be br ief, highlighting the activities carried out for LDCs 
in 2007.  He recalled that the main objective of  WTO's TRTA was to build long-lasting human and 
institutional capacity and to enhance country ownershi p.  The products developed by the Secretariat 
had been tailored to the needs of the beneficiaries.   He said that Members had been invited to submit 
to the Secretariat their requests for national techni cal assistance activities at any time during the year.  
This flexibility had been found to be necessary to  allow for the delivery of focused and timely 
technical assistance.  He pointed out that deve loping countries were entitled to two national activities 
per year, whereas the LDCs were entitled to three.  He  regretted the fact that the entitlement of three 
national activities for the LDCs was not being full y used by the LDCs.  The numbers of national 
activities per year was in line with the scarce huma n resources in the Secretariat.  Experience had 
shown that there had been a natural limit to the number of TRTA activities that could be undertaken 
in any given year, and there was limited absorptio n capacity in beneficiary countries as trade-related 
technical assistance was being carried out by organi zations and agencies other than the WTO in the 
field.  In addition to national activities, LDCs continued to benefit from regional seminars, trade 
policy courses and other activities undertaken by the Secretariat.   
65. The Secretariat had been maintaining a regional ba lance in the delivery and distribution of its 
technical assistance activities.  The majority of  activities were held in Africa (166) representing 
37 per cent of WTO's TRTA.  Sevent y-seven activities were held in Asia and the Pacific representing 
one sixth of all activities.  The LDCs had been associated with around 44 per cent of TRTA provided 
by the WTO.  This included national activities held in LDCs (58), as well as regional seminars, 
workshops and training activities.  The percentage at which the LDCs were associated with WTO's 
TRTA reflected the continued priority that the LDCs had been receiving in the delivery of WTO's 
TRTA.   
66. He said that a number of products had been designed specifically for the LDCs.  These 
included, among others, the Integrated Framework (IF), the Joint Integrated Technical Assistance  WT/COMTD/LDC/M/50 
 Page 15 
 
 
  Programme (JITAP), the three-week Introduction C ourses for LDCs,  Geneva Weeks, the Reference 
Centre Programmes, the Netherlands Trainee Pr ogramme (NTP), the Mission Internship Programme, 
assisting beneficiaries in conducting needs assessme nts and technical assistance within the trade 
policy review mechanism framework.  Assistance w as also being provided on a priority basis to the 
LDCs in their process of accession to the WTO.  Pr iority was also being given to the LDCs in the 
selection process for Geneva-based training courses.  He said that the LDCs were benefiting from a 
number of internship programmes.  As many as 12 0 interns had benefited fr om various internship 
programmes over the last few years, many of which were particularly focused on the LDCs.  He said 
that under the NTP, a total of 35 LDCs had benefite d over the last three years representing 69 per cent 
of all participants.  Under the Mission Internsh ip Programme, 19 LDCs had benefited, representing 
58 per cent of all participants.  Under the Regi onal Coordinator Programme, 16 officials from LDCs 
had benefited representing nearly 60 per cent of the to tal beneficiaries.  He said that the beneficiaries 
had found these internship programmes helpful in their participation in WTO's regular work and 
negotiations.  He was also pleased to inform Memb ers that the Government of the Netherlands had 
decided to extend the NTP.  Moreover, the Secret ariat had been exploring with other donors on how 
to strengthen the mission internship programme whic h had been on high demand.  He said that the 
regional coordinator programme was being finan ced from the DDA Global Trust Fund and would be 
continued. 
67. In conclusion, he invited the attention of LDCs to the low number of requests that the 
Secretariat had received in relation to the national technical assistance activities.  He pointed out that 
out of 26 eligible English-speaking African countries, only seven countries, including three LDCs, 
had made requests so far.  The situation with th e French-speaking African countries was not better.  
He underscored the importance of national technical assistance activities which were designed to meet 
specific needs of countries.  He encouraged the LDCs  to contact the Secretariat to make best use of 
the technical assistance designed for them.  He reca lled the letter circulated by the Secretariat in 
January 2008, contained in document JOB(08)/1, wh ich had requested beneficiaries to submit their 
requests for national activities.   
68. The representative of Lesotho , on behalf of the LDCs, thanked the Secretariat for its 
comprehensive report.  He appreciated the efforts th at had been made to provide technical assistance 
to LDCs.  He noted that the LDCs had been involve d in a consistent manner in more than 40 per cent 
of WTO's technical assistance activities.  He said that technical assistance to developing countries, in particular to the LDCs, was a core mandate of  the WTO.  The DDA specially emphasized this 
function of the WTO.  In this context, the Secr etariat had developed a num ber of products, some of 
which were geared specifically to the LDCs. 
69. He said that many of the courses were designe d to help understand the WTO agreements and 
subjects under negotiations in the DDA.  That gave government officials a basic understanding of the 
issues involved in the regular work of the WTO, as well as in the ongoing negotiations.  However, it 
was also important to give sufficient attention to some of the LDC-specific issues so that LDCs could 
effectively participate in the negotiations.  In this  regard, he suggested that the Secretariat could 
organize one or two specialized courses specific to LD Cs each year.  For instance, rules of origin was 
a complex topic.  Many LDC government officials did not fully understand the details involved with 
this subject.  A specific course could be organized on  this topic which could benefit both Geneva – as 
well as capital-based LDC officials.  A similar initiative could be taken to look at the issue of transfer 
of technology to the LDCs.  
70. He said that one of the programmes that was di rectly enhancing the capacity of LDC officials 
was the internship programme.  There was no alterna tive to "on the job training".  The NTP, as well 
as other internship programmes, had been of great assi stance to the LDCs.  He said that the more that 
form of training was provided to the LDCs, the better it would be for the LDCs to effectively 
participate in the multilateral trading system.  He thanked the donors which had been contributing to WT/COMTD/LDC/M/50 
Page 16  
 
  this programme.  He underlined the need to further strengthen the internship programme so that more 
officials from LDCs could be taken on board at these programmes at any given time.  He also stressed the need to address low absorp tive capacity in the LDCs.   
71. He emphasized the need for developing domes tic research and academic institutions in the 
LDCs to deal with WTO agreements and negotia tions.  Unless institutions in the LDC capitals 
developed endogenous capacity to analyze trade a nd support the negotiators in Geneva, LDCs would 
not be able to address their problems in an effectiv e and systematic way.  He stressed that the WTO 
technical assistance should focus on building long -lasting institutional capacity in the LDCs.  
Institutions from LDCs should be actively involved in  the delivery of WTO's technical assistance.  In 
this regard, he said that the possibility of orga nizing regional trade policy courses in a few LDCs 
should be explored.  That would sustain long-term  interest in WTO matters in LDC capitals and 
enhance institutional capacity.  
72. He noted that many of the LDCs had not been able to take advantage of national technical 
assistance activities undertaken by the Secretariat.  He also noted with appreciation that the LDCs 
were accorded three national activities per year as opposed to two activities for other developing 
countries.  While the LDCs had been making efforts to benefit from this priority, he said that it had 
been highlighted before that su ch activities should be fully funde d to ensure maximum results from 
this initiative.  He pointed out that needs assessments were being carried out in the area of trade 
facilitation, as well as in the area of Trade-re lated Intellectual Property Rights (TRIPS).  He added 
that needs assessment was a means to an end and no t an end in itself.  Therefore, he hoped that 
sufficient resources would be forthcoming to impl ement the results coming out from these exercises.  
He concluded by saying that continued monitoring and periodic evaluation could ensure effectiveness 
of all the endeavours.  
73. The representative of Rwanda
 associated himself with the statement made by the 
representative of Lesotho, on behalf of the LDCs.  He expressed appreciation to the Director of the 
ITTC for his cooperation with the LDCs and for his commitment to strengthen technical assistance for 
weak economies, particularly the LDCs.  He looke d forward to seeing the full report on WTO's TRTA 
which was to be made available in the middle of July 2008.  He also expressed appreciation to the 
donors for their generous assistance in the area of techni cal assistance.  In this regard, he thanked the 
Government of the Netherlands for the Netherla nds Trainee Programme.  He called upon other donors 
to join such initiative so as to strengthen the funding for the Mission Internship Programme, which 
had been helpful for small missions like the LDCs.   
74. The representative of Zambia  associated herself with the statement made by the representative 
of Lesotho, on behalf of the LDCs.  She thanked the Government of the Netherlands for its support to 
the internship programme at the WTO.  Her dele gation had found the techni cal assistance activities 
useful including the national technical assistance activ ities.  In this regard, her Government had been 
making good use of the entitlements for the LDCs.  Echoing the point raised by the LDC Coordinator, 
she said that it would be useful if the Secretaria t could look into the reasons for low utilization of 
national technical assistance activities by a number  of LDCs and undertake measures to address this 
problem. 
75. The representative of Guinea  expressed appreciation for the TRTA activities undertaken by 
the Secretariat in favour of LDCs.  She associ ated herself with the statement made by the 
representative of Lesotho, on behalf of the LDCs .  She thanked the donors for their support which 
enabled the Secretariat to deliver the activities for LDCs.  Her delegation had been benefiting from the 
technical assistance being provided by the Secretariat.   In this regard, she underlined the importance 
of both national and regional technical assistance activ ities by the Secretariat.  She took note of the 
Secretariat communication contained in JOB(08)/1.  Her delegation would act in line with that  WT/COMTD/LDC/M/50 
 Page 17 
 
 
  document.  She looked forward to the report which w ould be made available by the Secretariat in the 
middle of July 2008.   
76. The representative of the Secretariat  thanked the Coordinator of the LDCs as well as other 
LDCs for their support of the Secretariat's work in the area of technical cooperation.  He found the comments made by LDCs useful and said that the S ecretariat would try to take those on board in the 
delivery of its TRTA activities.  He reiterated that the Secretariat would remain committed to 
addressing the specific needs of LDCs.  He would c ontinue to discuss with the beneficiaries to see 
how best the Secretariat could respond to specific needs of countries and to ensure that technical 
assistance benefited the LDCs.   
77. The Chairman
 encouraged the LDCs to take full advantage of the products offered by the 
Secretariat in the area of technical cooperation.  He noted that a number of LDCs had not been able to 
make use of the opportunities available throug h the WTO's TRTA.  He suggested that the 
Sub-Committee take note of the oral report made by the Secretariat as well as of the statements made. 
78. It was so agreed.  
- Implementation of the Enhanced Integrated Framework (EIF): Report by the Chairman of the 
EIF Interim Board 
79. The Chairman  said that work was ongoing in order to make the EIF fully operational as soon 
as possible.  The EIF Board, on an interim basis, ha d been meeting regularly to finalize the elements 
that were required for the LDCs to start benefiting fr om the EIF.  He invited the Chairman of the EIF 
Interim Board to provide the Sub-Committee with a report on progress made to make the EIF fully 
operational. 
80. The Chairman  of the EIF Interim Board (Ambassador Maruping, Lesotho) recalled that both 
the Maseru Declaration (WT/L/719), as well as th e Addis Ababa Declaration on WTO negotiations 
(WT/L/720), emphasized the need for the operationali zation of the EIF as soon as possible, and latest 
by mid-2008.  He stressed that the EIF was an inst rument which contributed to poverty reduction in 
the LDCs and there should not be any procrastin ation in its operationalization.  He reminded 
Members that the EIF was not a new programme but  rather an improved and enhanced phase of the 
existing IF.  It would bring renewed impetus for IF  with greater effectiveness.  Since he had last 
spoken on this item at the Sub-Committee, a number of new LDCs had joined the programme, while a 
number of existing LDC benefici aries had moved from the diagnos tics to the mainstreaming and 
implementation stages of the IF.  He added that a number of projects following from the Diagnostic 
Trade Integration Study (DTIS) Action Matrices ha d been initiated and were being implemented.  
81. He went on to say that there were at present 45 beneficiaries of the IF.  More than 30 LDCs 
had completed their DTISs and had held validation workshops.  A number of LDCs had started the 
process to update their DTISs, which was an elem ent formed as part of the EIF.  The updated 
DTISs - referred to as second generation DTISs - would provide an in-depth and comprehensive 
analysis of a country's needs leading to greater effectiveness.   
82. He said that the operational launch of the EI F was imminent.  The EIF Trust Fund Manager 
had been selected.  He recalled that a total of US $170 million for the first five years of the EIF had 
been pledged.  That amount represented around 75 per cent of the total target of the budget for those 
five years.  He was confident that full funding targ et for the period 2007 to 2011 would be met in due 
course.  The figures he quoted was confined to the multilateral IF Trust Fund.  In this regard, he 
pointed out that donors might make additional bilate ral contributions in future to projects derived 
from the IF process.  He noted with satisfacti on that new donors were coming forward to make WT/COMTD/LDC/M/50 
Page 18  
 
  contributions to the multilateral IF Trust Fund.  He hoped that more Members and organizations 
would come forward to make contributions to the IF programme.   
83. He said that the EIF Interim Board had been m eeting on a regular basis.  It had met 16 times 
since he last reported to this Sub-Committee in Oc tober 2007.  He informed Members that the EIF 
Interim Board was in the process of finalizing wo rk on monitoring and evaluation framework for the 
EIF.  The Board was also in charge of over seeing that the Trust Fund Manager, the Executive 
Secretariat, the monitoring and evaluation framework and other necessary work were completed in a timely manner, so that the EIF could be operationa lized as soon as possible.  In this regard, he 
informed Members that the selection process of the Ex ecutive Director was at an  advanced stage.  The 
ongoing projects under the old IF Trust Fund, ma naged by the UNDP, had been continuing as 
scheduled.  In order to ensure a smooth transition from the current to the newly selected Trust Fund 
Manager, no funds were being allocated from the old IF trust fund as of 1 May 2008.  He said that the 
LDC Unit of the Development Division of the WTO Secretariat, in particular the IF Programme 
Implementation Unit (PIU), would continue to fu lfil the IF Secretariat functions until the EIF 
Executive Secretariat was fully established.  He ex pressed appreciation for the work that had been 
carried out by the PIU.  In conclusion, he reitera ted that the IF had been a successful initiative with 
strong cooperation and partnershi p among the LDCs, donors and intern ational organizations.  The 
EIF, with its objective of mainstreaming trade in to national development strategies, could be an 
instrument for LDCs to eradicate poverty. 
84. The representative of Haiti
 thanked the Chairman of the EIF Interim Board for his 
comprehensive report.  He also thanked the Board for its favourable decision regarding Haiti's request 
to join the IF.  His Government looked forward to benefiting from the IF.  His authorities would 
communicate a date to fully join the IF programme  as soon as their new Government assumed office.  
85. The Chairman  proposed that the Sub-Committee take note of the oral report made by 
Ambassador Maruping, Chairman of the EIF Interim Board, as well as of the statement made. 
86. It was so decided . 
C. OTHER BUSINESS  
87. The representative of UNIDO  informed Members that a UNIDO LDC Ministerial Conference 
would be held in Cambodia from 19 to 20 November  2008.  The Ministerial meeting would focus on 
LDC supply-side and productive capacity issues.  In this regard, a concept paper was being prepared 
in cooperation with the WTO Secretariat.  Apart fro m this, a criteria was being developed to select 
eight to ten LDCs for which issues papers would be  prepared.  These issues papers would contain, 
inter alia , examination of DTISs of those selected LDCs.  Prior to the Ministerial Conference in 
Cambodia, a preparatory meeting would be he ld in Rwanda from 9 to 10 September 2008. 
88. The representative of Lesotho  thanked the representative of UNIDO for sharing the 
information relating to its Ministerial Conference in  Cambodia.  He said that in his capacity as the 
Coordinator of LDCs, he had written a letter to th e Chairman on the issue of LDC accession to the 
WTO, in particular to facilitate a review of LD C accession guidelines.  He underlined the importance 
of a review of the LDC accession guidelines adopted  by the General Council in 2002, as soon as 
possible.  He also underscored the importance of a monitoring mechanism to ensure that there was 
adherence to the LDC accession guidelines.  He requested that the issue of LDC accession be 
discussed at the next meeting of the Sub-Committee. 
89. The representative of Yemen  endorsed the statement made by the representative of Lesotho, 
on behalf of the LDCs.  He hoped that the issue of LDC accession could be taken up at the next 
meeting of the Sub-Committee.  He also hoped th at by the time of the next meeting of the  WT/COMTD/LDC/M/50 
 Page 19 
 
 
  Sub-Committee, a review of the LDC accession guidelines could be carried out.  He expressed 
concern over the accession process being faced by a number of acceding LDCs, including Yemen. 
90. The Chairman  proposed that the Sub-Committee take note of the statement made by the 
representative of UNIDO, as well as the statement made  by the representative of Lesotho.  He said 
that the next meeting of the Sub-Committee woul d include the item on accession of LDCs to the 
WTO.  The next meeting had been tentatively sch eduled for 16 October 2008.  He thanked Members 
for their active participation in the meeting.  He  would remain available to Members to address any 
particular needs that might arise before the conve ning of the next meeting in October 2008.   
91. The meeting was adjourned . 
 
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