WORLD TRADE  
ORGANIZATION  WT/IFSC/M/17 
19 April 2007 
 
 (07-1625) 
Integrated Framework Steering Committee 
Eighteenth Session  
 
 
 
REPORT ON THE 18TH MEETING OF THE 
INTEGRATED FRAMEWORK STEERING COMMITTEE (IFSC) 
 
Wednesday, 13 December 2006, WTO, Geneva  
 
Chairperson:  Ambassador Mia Horn af Rantzien (Sweden) 
 
 
A. ADOPTION OF THE AGENDA  
1. The Integrated Framework Steering Committee (IFSC) held its eighteenth session on 
Wednesday, 13 December 2006.  The agenda is reproduced in Annex I. 
2. The Chairperson of the IFSC  informed the IFSC that she would be required to leave the 
meeting for a short while and proposed that duri ng her absence Ambassador Amehou (Benin) chair 
the meeting, to which the IFSC agreed. 
B. 46TH MEETING OF THE INTEGRATED  FRAMEWORK WORKING GROUP :  REPORT BY THE CHAIR 
OF THE IFWG  
3. The Chaiman of the IFSC  said that the Integrated Framework Working Group (IFWG) had 
considered a wide range of issues relating to the IF as well as the enhanced IF during its meeting on 
12 December, 2006.  He invited the Chairperson of  the IFWG, Mrs. Valentine Rugwabiza, Deputy 
Director-General, WTO, to provide the meeting with a report on the outcome of the IFWG meeting.   
4. The Chairperson of the IFWG  said that the IFWG had taken up a wide range of issues, 
namely:  (i) implementation of the IF in various countries;  (ii) discussions on the IF Trust Fund;  
(iii) results of the recent IF regional workshop in  Dakar;  (iv) progress on the establishment of the 
Programme Implementation Unit (PIU);  (v) IF coope ration with JITAP and STDF;  (vi) discussions 
on progress towards implementing the recommendati ons of the Task Force to put in place an 
enhanced IF. 
5. As regards the implementation of the IF process  in various countries, she said that Diagnostic 
Trade Integration Study (DTIS) National Validation Workshops had been held in 24 LDCs, namely:  
Benin, Burundi, Cambodia, Chad, Djibouti, Ethiop ia, Guinea, Lao P.D.R, Lesotho, Madagascar, 
Malawi, Maldives, Mali, Mauritania, Mozambique, Ne pal, Rwanda, Sao Tome and Principe, Senegal, 
Sierra Leone, Tanzania, Uganda, Yemen, and Za mbia.  The representatives of the World Bank and 
UNDP had reported on progress in the implementati on in each of these countries.  Reports showed 
that trade was increasingly forming part of LDC development plans such as the Poverty Reduction 
Strategy Papers (PRSPs).  Difficulties had cont inued with respect to addressing implementation 
challenges.  Ideas were emerging on ways to addr ess these challenges.  These included a range of 
possibilities such as assisting countries in project fo rmulation, finding ways to further include the 
national and international private sector in IF  discussions and better harmonization of donor 
procedures in order to reduce transaction costs re lated to access to funding.  In this context, a WT/IFSC/M/17 
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  discussion had taken place on funding modalities beyond Window II of the IF Trust Fund (IFTF) such 
as basket funding and programming approaches such  as sector-wide approaches to funding.   
6. The World Bank and UNDP had also reported on progress in the preparation of the DTIS in 
the following eight countries:  Burkina Faso, Cent ral African Republic, Comoros, The Gambia, Niger, 
Samoa, Sudan and Vanuatu.  It was noted that  Angola was planning its Validation Workshop in 
February 2007.  With regard to Comoros, furthe r advice from the Government would be awaited on 
precise modalities to undertake the DTIS.  The IFWG also discussed the timing of Technical Reviews 
for Afghanistan, Democratic Republic of Congo, Equa torial Guinea, Haiti, Liberia, Solomon Islands, 
Guinea Bissau and Togo.  It was noted that since the last IFSC meeting, Cape Verde and East Timor had applied to join the IF.  Further consultations would take place with these countries to establish a 
timetable or modalities to undertake a Technical Review.   
7. She said that UNCTAD had reported on the IF regional workshop which took place in Dakar 
from 6 to 8 December 2006.  The seminar had aimed at raising awareness in the LDCs of the work 
taking place to enhance the IF, giving them a platform  to contribute to this on-going work and getting 
operational feedback on issues relati ng to IF national structures.  Participants had expressed their 
appreciation for the seminar, which had shown the u sefulness of such inform ative events as well as 
the need to improve on the communication between th e IF process in Geneva and the process at the 
country level.   
8. She continued by saying that the representative of  UNDP had provided a detailed status report 
on the IF Trust Fund.  The IFWG had expressed its appreciation to the donors which contributed to 
the IF Trust Fund, the most important of which we re Canada, Denmark, Norway, Sweden and the UK.  
She said that the WTO Secretariat had briefed the IFWG on the progress made in the establishment of 
the Programme Implementation Unit (PIU).  The recruitment process of a Chief Coordinator, a Deputy Coordinator and a Secretary for PIU was at an advanced stage and it was hoped that the PIU 
would become operational in the near future.  Th e WTO Secretariat had also reported on the on-going 
IF-Standards and Trade Development Facility (STDF) cooperation.  Aside from the target to allocate 
40 per cent of STDF resources to projects benefiting LDCs and other low income countries, and in 
direct response to needs outlined  in their DTISs, the STDF was in the process of validating a 
medium-term strategy aiming at further strengtheni ng its cooperation with the IF.  There had been 
strong interest amongst LDCs, IF partner agencies and donors in using the project preparation grant 
mechanism as a vehicle to mobilize donor funding fo r SPS-related needs outlined in the DTISs.  To 
deepen this cooperation, IF partners were encour aged to take into account the STDF's medium term 
strategy for 2007 to 2011, which reflected areas of enhanced cooperation between the IF and the 
STDF.  The WTO Secretariat had also reported on c ooperation between the Joint Integrated Technical 
Assistance Programme (JITAP) and the IF for the ten countries which had been benefiting from both 
programmes, namely:  Benin, Burkina Faso, Ma lawi, Mali, Mauritania, Mozambique, Senegal, 
Tanzania, Uganda and Zambia.  Periodic exchanges of information had continued to take place among 
staff of the partner agencies and, in most countri es, both JITAP and IF Focal points were the same 
person.  However, the recent JITAP Evaluation repor t had stressed that whilst JITAP and IF were two 
distinct programmes, better synergy could be de veloped between them.  Accordingly, WTO staff 
responsible for JITAP was being kept abreast of rele vant developments in the discussions in the work 
to enhance the IF.  It was suggested that further discussions on JITAP's role in the enhanced IF could 
be held in the in-country cluster.  In conclusion,  she said that the report in the IFSC on progress 
towards implementing the recommendations of the Task  Force to put in place the enhanced IF, also 
covered the discussion at the IFWG on the subject. 
9. The representative of Benin
 thanked the Chairperson of the IFWG for her report.  He 
congratulated the members of the IFWG for their effo rts to help with the implementation of the IF in 
the beneficiary countries.  He associated himself with the statement made by  Bangladesh, on behalf of 
the LDCs.  His delegation welcomed the progress ma de in implementing the IF, which had enabled  WT/IFSC/M/17 
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  several LDCs to move forward with the IF process, in particular, carrying out DTISs and 
implementing projects under Window II of the IFTF.  He expressed gratitude to the donors and to the 
Agencies for their contribution to the IF.  He st ressed the importance of IF for the LDCs.  He 
informed the IFSC that a team from his country's capital, led by the Chief of Cabinet of the Ministry of Industry and Commerce was present at the meeting.   The team also include d the Director-General 
for Foreign Trade (IF Focal Point).  The presence of  these high officials demonstrated the importance 
attached by his Government to the IF process.  He stressed that the efficient and harmonious 
implementation of the IF would help promote the par ticipation of LDCs in international trade as well 
as foster economic growth and poverty reduction.  It was in this context that his delegation 
appreciated the initiative taken in 2005 to work to wards an enhanced IF.  It should build up the 
capacity of the beneficiary countries for improve d ownership of the IF, increase the financial 
resources to implement IF activities and improve th e management of the programme.  He welcomed 
the results achieved by the Task Force as well as its recommendations adopted by Members in July 2006.  He hoped that Members would c ontinue their efforts to operationalize these 
recommendations, and called upon the existing IF donors to  continue their support for the IF.  He also 
urged other bilateral and multilate ral partners to provide concre te support for the enhanced IF. 
10. The Chairman of the IFSC
 proposed that the meeting take note of the report by the 
Chairperson of the IFWG as well as of the statements made. 
11. It was so agreed .  
C. REPORT BY THE CHAIR OF THE IF TRANSIT ION TEAM ON THE WORK RELATED TO THE 
RECOMMENDATIONS ON THE ENHANCEMEN T OF THE INTEGRATED FRAMEWORK  
12. The Chairperson of the IFSC  said that intense work was ongoing to implement the 
recommendations of the Task Force on an enhanced IF (hereafter the Task Force).  The Transition 
Team and its three clusters had been meeting on a re gular basis in order to make concrete progress to 
operationalize the recommendations of the Task Force.   She invited Ambassador Stephenson, one of 
the co-chairs of the Transition Team of the enhan ced IF (hereafter the Transition Team), to make a 
report on the state of work related to the recommendations.   
13. The Chairman of the Transition Team  noted that the Transition Team and its three clusters 
had held regular meetings, demonstr ating a strong sense of engagement from all IF stakeholders to the 
enhanced IF.  He recalled that the three clus ters were working, respectively, on legal and 
administrative questions, in-country processes and funding issues.  He then made an overall 
cluster-wide report on developments that had occurr ed over the past few months.  He reiterated that 
the Transition Team had been making progress, alt hough slower than expected since issues involved 
in some areas were complex. 
14. He said that since the establishment of the Transition Team, donors had been working to 
secure sufficient funding for the enhanced IF.  Th e replenishment process of the enhanced IF Trust 
Fund had begun.  A formal discussion among the ex isting donors had taken place in a donors meeting 
in Brussels on 11 December 2006, at which he had also participated.  The meeting had laid out a 
tentative timetable through March 2007 to complete the replenishment exercise, and he hoped that by 
then sufficient funding would be in place to move in to the implementation phase of the enhanced IF.  
He, however, cautioned that all donors might not be ready to make commitments by the end of March 2007.  He informed Members that at the donors meeting in Brussels, Mr. Joe Ingram (former World Bank representative in Geneva) had been among the participants.  Mr. Ingram had been 
engaged by the Transition Team to assist the donors in their work envisaged under the enhanced IF.  
He then enumerated a number of activities he had personally undertaken to seek funds for the 
enhanced IF.  He stressed that efforts were bei ng made to reach out to countries beyond the existing 
circle of donors to make contributions to the enhanced  IF Trust Fund.  In this  regard, he had convened WT/IFSC/M/17 
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  a meeting in Geneva where he had invited devel oping countries and emerging economies that had the 
potential to become possible donors in the IF process.  That group included developing countries such as Brazil, China, India and emerging economies su ch as Chile, Mexico, Singapore, South Africa and 
Thailand.  Presentations made befo re this group of countries had been well received.  The countries 
invited had committed to consult their capitals in th is regard.  He hoped to continue a meaningful 
dialogue with these countries.  He said that he had met his own authorities in Ottawa, in particular 
with the representatives from development agencies a nd had presented the case for the enhanced IF.  
He had also met with a group of aid agencies su ch as representatives from USAID, the Millennium 
Challenge Corporation and other agencies in Geneva.  He had also had an opportunity to talk about 
the enhanced IF before the Parliamentary Co mmittee of the European Union.  During his 
presentations to the various groups, he had stressed three points.  First, he underlined the importance 
of securing substantial funding for the enhanced IF in order to ensure stability and long-term 
predictability of the activities stemming from this  programme.  Second, he emphasized the need to 
better connect the bilateral funding to the dia gnostics and needs assessment conducted in the IF 
process.  Third, he reiterated that predictabl e long-term financial commitments would allow 
professional management of the programme.   
15. He went on to say that a series of consultati ons had been held on the question of legal and 
administrative arrangements to be put in place for the enhanced IF.  He recalled that one of the Task 
Force recommendations was to house all functions, namely global administration, global governance 
and management of the fund in one place.  He, toge ther with other co-chairs of the Transition Team, 
had held bilateral consultations to  bring this matter to a conclusion.  He also recalled that the 
Executive Secretariat envisaged unde r the enhanced IF should be  housed at the WTO with full 
functional independence.  The Tran sition Team and its cl usters had examined this question and in 
particular had put questions to the WTO Secretar iat on how to establish a functionally independent 
Executive Secretariat for the enhanced IF.  In resp onse, the WTO Secretariat prepared a short paper 
outlining the issues and options for the establishment of an Executive Secretariat within the WTO.   
The WTO paper put a couple of options before the Transition Team.  The first option (Option 1) 
essentially provided for the independent secretariat within the WTO but was constrained by its Director-General's authorities, and therefore required that administrative authority for the staff in the 
functioning of the Secretariat would rest with  the WTO Director-General.  The second option 
(Option 2) was a more stand-alone  independent operation of the Execu tive Secretariat that would have 
more of a contractual relationship with the WTO.  The Transition Team had some difficulties with the 
two options.  While the LDCs were comfortable with  Option 1, donors had certain doubts with respect 
to the details of it, in particular the specifi c guarantees of independence of action of the IF 
Management in such an arrangement.  Donors ha d sought additional clarifications from the WTO 
Secretariat about how the independence of actions c ould be guaranteed.  There was not much support 
from any quarter for Option 2 or for anything that would require the establishment of a new entity, in 
other words, of a new stand-alone institution because of the fear of the excessive overhead costs and 
other complications.  Views had also been e xpressed to examine other options beyond the two 
presented in the WTO paper so as to see whether th e recommendations of the Task Force could be 
implemented fully, which was to bring both the Ex ecutive Secretariat and management of the Trust 
Fund into a single place.   
16. He said that he had discussed Option 1 with the WTO Director-General, who had provided a 
certain degree of clarity with respect to the arrang ements that were possible within the WTO.  He 
informed the IFSC that the WTO Director-General had given a number of assurances with respect to 
the independence of the Executive Secretariat, in particular on policy matters, funding decisions as 
well as decisions taken by the IF Board and the I FSC under the enhanced IF.  The WTO's position on 
policy issues would be assured through WTO's participation in those IF governance bodies. 
Administrative arrangements would be the responsibilit y of the WTO.  There were some assurances 
given about the independence of the IF in respect of the hiring of its staff and in particular, its Head.  
These assurances gave some additi onal comfort to the donors but do ubts continued to linger as to  WT/IFSC/M/17 
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  whether or not there were other options and wh ether or not the Executive Secretariat and the 
management of the Trust Fund coul d be brought in one place.   
17. He was instructed by Members to consu lt on a third option concerning the Executive 
Secretariat of the enhanced IF (Option 3).  He th en outlined the steps he would undertake to explore 
such an option.  First, he would send a letter to the six core IF Agencies asking them to respond on 
whether they could both house the Secretariat for the enhanced IF as well as manage the Trust Fund 
and if so under what set of conditions.  Second, he would consult the Agencies on an individual basis.  
He already had an initial discussion with the World Bank and the UNDP in Brussels at the margin of 
the donors meeting.  Then he would consult with th e Agencies as a group in January 2007.  At the 
same time, he would consult with Members, including LDCs and donor countries.  Thereafter, 
together with the co-chairs of the Transition Team , he would present a recommendation to Members.  
He said that the work relating to the enhanced IF was taking a bit more time than Members had 
anticipated.   
18. He underlined the importance of moving on with  the implementation of the recommendations 
of the Task Force.  To this effect, he had been st riving hard in working through the issues one by one.  
He said that the in-country cluster had been worki ng on the specific terms of reference of the various 
actors involved in the in-country processes.  He dr ew the attention of Members to the IF regional 
workshop in Dakar, Senegal, (hereafter Dakar Workshop) held from 6 to 8 December 2006.  The 
meeting had provided an opportunity for the IF stake holders in Geneva to meet a group of IF Focal 
Points from LDCs.  He regretted the fact that more Fo cal Points had not been able to come due to late 
arrangements and other competing priorities.  The meeting had brought the Focal Points up to date 
with the progress made in Geneva on the enhanced IF and had gathered their inputs on the issues 
currently considered under the enhanced IF.  The meeting had also signalled some challenges with 
respect to communication with people on the ground tr ying to deliver the programme.  The fact that 
there was not enough awareness of the discussions in Geneva among the IF Focal Points represented a 
long term challenge.  This would need to be given close attention.  He underscored the importance of 
regular dissemination of information on the grou nd so as to ensure successful delivery of the 
programmes undertaken under the IF process.  Memb ers were facing challenges with respect to all 
areas of the recommendations of the Task Force,  including reaching the targets on funding and 
establishing the legal and administrative arrangeme nts for the enhanced IF.  He hoped that the 
enhanced IF would be in operation by early 2007.  He sought support from Members in his work.   
19. The representative of Bangladesh , on behalf of the LDCs, thanked the Chairman of the 
Transition Team for his report.  He expressed his ap preciation to the co-chairs of the Transition Team 
as well as the Chairs of different clusters for their ef forts to advance the work of the enhanced IF.  He 
reiterated that Members should adhere to th e Terms of Reference while implementing the 
recommendations of the Task Force.  The biggest ch allenge before the Transition Team was the issue 
of legal entity of the Executive Secretariat.  LDCs  had expressed their opinion on this subject.  The 
LDCs would like to have a link with the WTO Secretariat as recommended by the Task Force.  He 
said that given the available options, the LDCs had indicated a preference for Option 1.  He 
acknowledged that there could be certain difficulti es since the recommendations of the Task Force 
could not be fully met under Option 1.  He sought additional information concerning the extent to 
which Option 1 could accommodate the recommendations of the Task Force, which would enable the 
LDCs to make an informed decision on the subject.  He noted the current efforts of 
Ambassador Stephenson to explore a third option.   While the LDCs were open to examine other 
options for the Executive Secretariat, the parame ters of the recommendations of the Task Force 
should be borne in mind.  He emphasized the need for an early resolution of the matter so that the 
enhanced IF could be put in place by early 200 7.  In this regard, he recalled the Hong Kong 
Ministerial Declaration, which, inter alia , provided for entry into fo rce of the enhanced IF by 
31 December 2006.  He continued by saying that  the Trust Fund management should be cost 
effective.  Caution should be exercised in ut ilizing resources to manage or to outsource services WT/IFSC/M/17 
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  related to the Trust Fund.  He stressed that pred ictable and additional resources were central to the 
effective implementation of the enhanced IF.  He  noted that donors had been making efforts to 
replenish the Trust Fund.  He said that the LD C Group would appreciate donors providing them with 
a progress report with regard to the re plenishment process of the Trust Fund. 
20. The representative of Benin
 thanked the Chairman of the Transition Team for the work that 
had been done to implement the recommendations of the Task Force.  He underlined the importance 
of the IF for the beneficiary countries.  The pros pects emerging from the enhanced IF were huge.  He 
urged members of the Transition Team to acceler ate their work in order to operationalize the 
enhanced IF as soon as possible.  He emphasized the need to find concrete a nd coherent proposals that 
could be implemented effectivel y.  He reiterated that work should be carried out through a 
participatory approach.  Beneficiary countries shoul d be given the tools to allow them to promote 
their trade and to ensure their development.  He hope d that the decision with regard to the housing of 
the Executive Secretariat would be taken soon.  In this regard, the Transition Team had had 
discussions at length.  He underlined the need to move forward so as to make the enhanced IF 
operational as soon as possible. 
21. The representative of Nepal  shared the point made by the Chairman of the Transition Team, 
that Members were faced with a number of challe nges in the implementation of the recommendations 
of the Task Force.  Members were working hard to implement those recommendations.  He underlined the need to convert these efforts into concrete results.  He  stressed that the three elements 
of the recommendations of the Task Force needed to  be borne in mind in its implementation.  These 
were:  (i) predictability and additionality of funds  under enhanced IF;  (ii) strengthened in-country 
capacities;  and (iii) enhanced IF governance.  Th ese three elements of the recommendations were 
organically linked with each other.  He found that th ere were a lot of expectations from the enhanced 
IF.  In this regard, he recalled that the particip ants at the Dakar Workshop, which included IF Focal 
Points from LDCs, were eager to see the operationali zation of an enhanced IF as soon as possible.  
The IF Focal Points showed active in terest in the enhanced IF.  He emphasized the need to ensure an 
outcome which would comply with the recommendations of the Task Force.  He expressed his 
support to the Chairman of the Transition Team in order to make the enhanced IF operational as soon 
as possible. 
22. The representative of Djibouti
 thanked the Chairperson of the IFSC as well as 
Ambassador Stephenson for their sincere efforts in  carrying out the ongoing work to implement the 
recommendations of the Task Force.  Their commitment and active participation was commendable.  
He also thanked the Deputy Director-General, Mrs.  Rugwabiza, and the Development Division (WTO 
Secretariat), for providing support to the current wo rk relating to the establishment of the enhanced 
IF.  His delegation attached high hopes to the e nhanced IF.  The IF had already made important 
contributions to the LDCs.  He underlined the importance of ensuring concrete actions from the 
current process.  He emphasized the need to focus on forward-looking solutions.  He noted that the 
major problems in the IF process were, to a large exte nt, to be found in the field.  The current energy 
should be geared towards actions wh ich could meet the needs of the LDCs on the ground.  He stressed 
that the capacities of the LDCs in the field would need  to be strengthened.  In  this regard, he recalled 
that most of the IF Focal Points at the Dakar Wo rkshop had voiced concern on the lack of capacity to 
benefit from the IF process.  He informed the IFSC that the IF Focal Point of his country was present 
at the current meeting so as to acquire an unders tanding of the ongoing work relating to the enhanced 
IF. 
23. The representative of th e European Communities  noted that regular meetings and activities 
were ongoing to implement the recommendations of  the Task Force.  He found the sustained 
engagement of all IF stakeholders, in particular th at of the LDCs, in the ongoing work encouraging.  
The current state of DDA negotiations had allowed opportunities for delegations to devote more time 
on IF-related matters.  He noted that good progress had been made in some clusters, in particular in  WT/IFSC/M/17 
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  the in-country cluster.  Key decisions would need to  be taken on the legal and administrative matters.  
He hoped that as soon as such decisions were taken,  all other elements would fall in line paving the 
way for the operationalization of an enhanced IF.  He noted that the time-frame for operationalizing 
the enhanced IF could not be met.  The WTO Secr etariat only recently gave a definitive reply to the 
effect that the ideal picture describ ed in the recommendations of the Task Force could not be achieved 
within the framework of the WTO. 
24. He went on to say that for his delegation, an important aspect of the Executive Secretariat was 
its functional autonomy.  The Trust Fund functions envisaged under the enhanced IF would need to be 
outsourced to another party.  He underscored the need for an individual as well as collective reflection 
on different recommendations from the Task Force.  He supported the idea of 
Ambassador Stephenson to flesh out Option 1 so as to see whether that option could come closer to 
the initial recommendations of the Task Force.  In th is regard, it was important to work out a protocol 
with the WTO Secretariat outlining how Members could achieve the spirit of the recommendations 
whilst remaining within the administrative framewo rk of the WTO.  It was also necessary to 
investigate the possibility of a third option which co uld be compared with the options presented in the 
WTO paper.  He underscored the importance of arriving at the best possible result to make the 
operation of an enhanced IF effective to the benefici aries.  Therefore, it would not be a stalemate if 
the original deadline could not be met.  He emphasi zed the need to put in pl ace a structure that would 
work rather than rushing for an outcome for the sake of it. 
25. The Chairman of the Transition Team  reiterated the need to reso lve the outstanding issues so 
as to move on with the operationalization of an enha nced IF.  He would remain committed to ensure a 
successful outcome of the work curre ntly being undertaken by the Transition Team and its clusters.  
In his capacity as Chairman of the Transition Team, and as former Chairman of the Task Force, he 
expressed appreciation for the contribution that Mr. Ca rlos Braga (the outgoing Senior Adviser of the 
World Bank Office in Geneva) had made to the IF.   
26. The Chairperson of the IFSC  thanked Mr. Braga, on behalf of the IFSC, for his contribution 
to the Committee's work and for his commitment to the IF.   
27. The representative of Rwanda  commended the Chairperson of the IFSC for her dedication and 
efforts to steer the work of the IFSC.  He also thanked Ambassador Stephe nson for his commitment to 
the IF, in particular the leadership provided in th e meetings of the Transition Team.  He associated 
himself with the statement made by Bangladesh, on be half of the LDCs.  He thanked all delegations 
and agencies engaged in various clusters for work ing hard with a view to improving the efficiency 
and effectiveness of the IF.  Certain progress had been made in a number of areas.  The 
recommendations of the Task Force had stipulated th at the enhanced IF would be operational by the 
end of 2006.  The deadline could not be met as Me mbers were still exploring possible options relating 
to the housing of the Executive Secretariat and asso ciated legal and administ rative issues as well as 
issues relating to finance.  He made an appeal to a ll IF stakeholders to find an expeditious solution to 
the current impasse.  In his view, a suitabl e solution would be one which would meet the 
recommendations of the Task Force.  His delega tion would remain flexible and would engage 
constructively in the work ahead.  He pointed ou t that even if DTISs had been concluded and 
validated, there were challenges in terms of drafting bankable projects as well as of administering those projects.  Countries at the initial stages of the IF process were faced with challenges of building 
capacity at the national level in order to ensure ow nership.  The enhanced IF was seen as a mechanism 
that would assist LDCs reduce poverty by developi ng trade and promoting exports.  It would bring 
changes to LDCs' institutions and to  the lives of people.  Therefore, the sooner the enhanced IF would 
start to be implemented, the better it would be for all LDCs.  He hoped that the debate on the housing 
of the Executive Secretariat would be resolved early next year. WT/IFSC/M/17 
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  28. The representative of the World Bank
 thanked the Chairperson of the IFSC as well as 
Ambassador Stephenson for their kind words to him.  The ongoing work had been progressing at a 
snail's pace.  He, however, emphasized the importa nce of getting the right outcome from the current 
work relating to the enhanced IF.  According to him, the challenge was not only of how the 
recommendations of the Task Force could be implemen ted, but also of pulling all IF stakeholders in 
the same direction.  He underlined the importa nce of enhanced support to strengthen in-country 
activities.  That would make a difference in the IF .  He noted that the discussions in the Transition 
Team and its clusters had made one point clear.  Every IF stakeholder had been sharing the common 
goal of mainstreaming trade into national developm ent plans with a view to fighting poverty and 
promoting development.  He recognized that putti ng together all elements of the enhanced IF 
represented a challenge.  The sooner the enhanced IF c ould enter into force, the better for all.  At the 
same time, it was important to get the structure right.  He looked forward to continue working on the enhanced IF under the leadership of Ambassador Stephenson. 
29. The representative of the UNDP
 thanked Ambassador Stephenson for his leadership in 
steering the work of the Transition Team.  He stat ed that with regard to Option 1, the UNDP would 
like to continue, if desired by Members, to serve as manager of the IF Trust Fund.  The UNDP could 
build on its experience over the last five years to enable smooth functioning and continuity of the IF Trust Fund.  His delegation would be ready to work with the proposed Executive Secretariat to establish performance criteria for an efficient and effective management of the Trust Fund.  With 
regard to the decision to explore a third option fo r housing the Executive Secretariat, he expressed an 
interest to take part in the consultations to be  undertaken by Ambassador Stephenson.  He said that 
locating both the Executive Secretariat and the Trust Fund in the WTO, or in any one agency, would 
run the risk of diluting the incentives for the other agencies to continue to fully engage in the IF 
process.  He hoped that the issue could be resolved in a practical manner that would enhance - rather 
than reduce - the participation of agencies in th e IF process as well as enhance the partnership with 
both the beneficiary countries and the donors, making the IF a truly integrated partnership.   
30. The representative of UNCTAD
 thanked Ambassador Stephe nson for his comprehensive 
briefing on the current work relating to the enhanced IF and for his kind words on the contributions made by the Dakar Workshop to the current process in Geneva.  Although progress towards 
implementing the recommendations of the Task For ce was slow, some achievements had been made.  
That included the event in Dakar which UNCTAD had had the privilege to organize.  It had provided 
a platform for delegations in Geneva to exchange  views with the capital-based officials on various 
aspects of the IF process, in particular the principl e of country ownership in the IF process.  The 
Dakar Workshop had made a particular contribution to the strengthening of country-ownership in the 
IF process.  He reiterated that the IF had been a country-driven process, which was also one of the 
elements of the recommendations of the Task Force.   He went on to say that the Dakar Workshop had 
brought the IF Focal Points to one place.  Some LDCs had been represented by deputy IF Focal Points 
and officials responsible for the IF in their r espective countries.  All these combined represented 
70 per cent of all IF Focal Points in the LDCs.  He stressed that the deputy Focal Points or responsible 
IF officers often acted as major players in the bene ficiary countries since Focal Points in many LDCs 
were the Permanent Secretaries whose functions were  invariably delegated to other senior officers in 
view of their occupations.  The fact that the Focal  Points were taken on board in the process leading 
up to the entry into force of the enhanced IF gave th em a feeling of ownership in the IF process.  That 
was the single most important contribution made by the Dakar Workshop.  He said that the report of 
the Dakar Workshop would be circulated in the coming week.  He underlined the need to find 
mechanisms to involve the IF Focal points in the Gene va process on a regular basis.  In this regard, he 
emphasized the importance of finding a standing solu tion instead of ad hoc arrangements so that 
beneficiary countries were fully engaged in the ongoing process leading to the operationalization of 
the enhanced IF.  He recognized that the implem entation of the recommendations of the Task Force 
posed a challenge to the IF stakeholders.    WT/IFSC/M/17 
 Page 9 
 
 
  31. The Chairman of the IFSC  proposed that the IFSC take note of the report made by 
Ambassador Stephenson as well as of the statements made. 
32. It was so agreed.  
D. IMPLEMENTATION OF THE IF :  REPORT BY BENEFICIARIES ON FOLLOW -UP TO DTIS :  COUNTRIES 
WHICH HAVE VALIDATED THEIR DTIS ARE ENCOUR AGED TO REPORT ON THE STATUS OF THE IF 
PROCESS IN THEIR COUNTRIES  
33. The Chairman of the IFSC  said that the IF Work Programme placed special emphasis on the 
effective follow-up to the DTIS in the beneficiary c ountries.  To date, the DTIS had been validated in 
24 LDCs.  They were:  Benin, Burundi, Cambodia, Chad, Djibouti, Ethiopia, Guinea, Lao P.D.R, Lesotho, Madagascar, Malawi, Maldives, Mali, Maur itania, Mozambique, Nepal, Rwanda, Sao Tome 
and Principe, Senegal, Sierra Leone, Tanzania, Uganda, Yemen and Zambia.  All these countries had 
entered into the post-DTIS phase.  He encourag ed delegations of these countries to share with 
Members the status of the IF implementation in th eir respective countries, including information on 
progress made and challenges encountered.  He also  invited donor countries as well as the Agencies to 
provide Members with any information they mi ght consider relevant under the item.   
34. The representative of Guinea
 congratulated the Chairperson of the IFWG as well as 
Ambassador Stephenson for the qualit y of their report and for the information they had provided on 
the status of the work in their respective areas.  She associated he rself with the statement made by 
Bangladesh, on behalf of the LDCs.  That statement had reflected the concerns  and expectations of 
her country from the IF.  Enhanced IF was syno nymous with the improvement of opportunities of 
market access for the LDCs.  It should strengthe n human and institutional capacities in the LDCs.  
Predictable funding was a key to ensure successful outcome under the enhanced IF.  Several activities 
had been held in order to move forward the Task Force recommendations, in particular on 
administrative and legal issues around the establishm ent of the Executive Secretariat and issues 
concerning in-country processes.  She informed the IFSC that her delegation, in close cooperation 
with the ITC, had organized a Round Table in Ge neva on 27 November 2006 to review her country's 
IF process.  A high-level delegation from her capital led by the Minister of Commerce, Industry and 
Small and Medium-scale Enterprise had taken part in  that Round Table.  At the Round Table her 
delegation had reiterated the strong interest of Gu inea in the enhanced IF.  An overview of her 
country's macroeconomic situation, its investment framework and its trade policy were also provided 
at the Round Table.  Concrete presentations were  made regarding the implementation of projects 
under Window II of the IFTF.  The Round Table had helped to highlight Guinea's agricultural 
potential, barriers encountered by producers in agricultural exports and ways to overcome those 
barriers.  Three projects were selected at the DT IS validation workshop for funding out of Window II, 
namely:  (i) human capacity building in the area of  multilateral trade negotiations;  (ii) institutional 
capacity building;  (iii) development of agricultu ral exports.  The success of these three projects had 
encouraged her Government to design new projects linked to trade policy or regional integration, 
infrastructure, agriculture, fisheries, tourism, handicr afts and other sectors of interest for her country.  
She stressed that such projects coul d only be carried out if traditi onal partners showed goodwill and 
provided sufficient funding.  She urged all partners  of her Government to provide financing for the 
projects submitted by the Government of Guinea at  the Round Table.  She expressed gratitude to 
Ms. Patricia Francis, Executive Director of the ITC, for her personal support and presence at the 
Round Table.  She went on to say that the IF Focal  point of her country, the Director for Trade and 
Competition, had taken part in the Dakar Workshop and had shared the experience of Guinea in the IF 
process.  In conclusion, she thanked the developmen t partners that had suppor ted her Government in 
the various stages of the IF process.   
35. The representative of Mali  expressed appreciation to the Chairperson of the IFSC for her 
commitment to the IF.  He associated himself with  the statement made by Bangladesh, on behalf of WT/IFSC/M/17 
Page 10  
 
  the LDCs.  He thanked Ambassador Stephenson for his report.  He al so thanked Chairs of different 
clusters for their commitment to carry forward the implementation of the recommendations of the Task Force.  He recalled the generous contributions of donors as well as technical support received from implementing agencies in the implementation of IF in Mali.  He said that a delegation from his capital which included a representative from the IF D onor Facilitator had visited Geneva from 6 to 
10 November 2006, and had had a series of meetings on the IF at the WTO.  At that time, a 
comprehensive report on the implementation of the IF in Mali had been circulated.  He then informed 
Members of some recent developments  with regard to the IF process in his country.  First, he drew the 
attention of Members to a Round Table held in Bamako on 15 November 2006.  The Round Table had 
included participants from governments, private sector, IF Agencies, and national and local elected 
officers.  It had provided an opportunity to recall the various phases of IF in Mali, which had started 
in November 2001.  The DTIS for Mali was comp leted in 2004.  His Government had undertaken 
steps to include trade analysis in  the PRSP.  Second, with IF resources, his Government had set up an 
institutional framework for the implementation of the IF.  An Implementation Committee was set up 
under the chairmanship of the Prime Minister to oversee the implementation of the IF.  The national 
IF Steering Committee was under the chairmanship of  the Ministry of Industry and Trade, which 
included representatives from government s, private sector and civil society.  The Secretary General of 
the Ministry of Industry and Trade was appointed as the IF Focal Point, and a department was set up 
for the implementation of the IF.  Third, he em phasized the importance of the actual implementation 
of the recommendations which had resulted from the validation workshop for the 2007 to 2011 phase 
where the integration of Mali into the multilateral trading system had been recognized as a priority.  A 
special contribution (special investment budget for 2007) had been made by his Government for the 
implementation of the IF, which was the first of its kind.  His Government was aware of the need to 
ensure greater synergy among the various nationa l programmes for greater efficiency and better 
streamlining of the use of resources.  Fourth, he said that the initial phase of the IF implementation 
had come to an end.  The phase had witnessed a series of workshops including the validation 
workshop for the DTIS.  The DTIS recommended concre te implementation plans.  The results of the 
IF were included in major development programm es.  Measures had been taken to implement the 
recommendations resulting from the DTIS Action Matrix, which had proposed multi-sectoral 
interventions.  The implementation of proj ects under Window II of the IFTF was making good 
progress.  Fifth, he highlighted the projects th at had been presented during the Round Table in 
November 2006, which included projects for the de velopment of tourism, leather and skins, 
information and communication technology, support for quality enhancement, setting up of software 
for customs, agricultural foodstuff, development of  music, etc.  Bilateral and multilateral donors had 
been present at the Round Table and had welcomed the progress achieved in implementing the IF in 
his country.  The donors had also reiterated thei r commitment to continue supporting development 
efforts of Mali. 
36. He explained that the DTIS of his country  had been drawn during the period 2003 to 2006 
through sectoral workshops and a validation worksh op, whose recommendations had been articulated 
in the DTIS Action Matrix.  The approach taken by  his authorities in carrying out the DTIS had paved 
the way for its outcome to be anchored in all th e major national development programmes.  The DTIS 
Action Matrix had been cross-sectoral in natu re, and had laid out an indicative cost and 
implementation timetable of the measures identified.  The implementation of the projects under 
Window II of the IFTF had yielded results.  The IF ha d been effectively incorp orated into the PRSP.  
The next phase would be to implement the priority  recommendations in the DTIS Action Matrix for 
the period 2007 to 2011, which would also coincide with the implementation of the enhanced IF.  His 
authorities had submitted the following projects stemming from the DTIS Action Matrix, which included: (i) support project for the marketing of mangoes;  (ii) project on tourism;  (iii) project to 
support improvement in the quality a nd marketing of hides and skins;  (iv) project on the application 
of sanitary and phytosanitary measures;  (v) project to extend implementation of the UNCTAD ASYCUDA++ software to the entire customs territory;  (vi) project on the music industry;  
and, (vii) support project for agri-food export sub-sectors.    WT/IFSC/M/17 
 Page 11 
 
 
  37. He continued by saying that donors had welcom ed Mali's progress in implementing the IF and 
had renewed their commitment to support Mali's de velopment.  The USAID would continue its 
activities in support of the IF, and had been acting as the IF Donor Facilitator in  Mali.  He recalled the 
assistance provided by ITC, UNCTAD, UNDP and the WTO in implementing various projects in Mali under the IF.  He said that the Government of Netherlands had been funding the construction of 
a packaging and refrigeration plant.  In conclusion, he expressed gratitude to the six IF core Agencies 
and to the donors for their commitment in moving forw ard the implementation of IF in Mali.  He drew 
Members' attention to the fact that the funds av ailable for his country under Window II of the IFTF 
had been exhausted.  He hoped that new resour ces would be available under the enhanced IF.  He 
urged all IF stakeholders to work towards the im plementation of enhanced IF as soon as possible.   
38. The representative of Uganda
 thanked the Chairperson of the IFWG and 
Ambassador Stephenson for their commitment to th e IF.  His Government had organized the IF 
validation workshop in early October 2006.  All IF  Agencies had participated in the workshop 
including resident donors.  Domestic stakehol ders, including representatives from all relevant 
agencies of the government also had taken part in the workshop.  At the validation workshop a 
number of issues had been discussed and recommenda tions had been made.  Those recommendations 
had been integrated into the revised version of th e DTIS and its Action Matrix.  Upon receipt of the 
report from the lead consultant of the World Bank, his authorities would be able to share the final copy of the DTIS with all IF stakeholders.  Fo llowing the validation workshop, the IF Focal point 
along with donor facilitator and representatives of the agencies had prepared an aide mémoire  on the 
way forward for IF implementation in his country.  Since then, the aide mémoire  had been the guiding 
principle of the IF process in his country.  He said that the findings of the DTIS had been very much 
part and parcel of the in-country processes.  The findings of the DTIS and the DTIS Action Matrix were being integrated into the PRSP.  The PR SP was also part of the current budget framework 
process of his Government for the next financial year.  His authorities had met the resident IF Agencies present in Kampala to prioritize the activ ities in the Action Matrix and to identify the gaps 
that were to be considered for funding under Wi ndow II of the IFTF.  He said that the National 
Steering Committee would meet the following week to approve the prioritized Action Matrix and 
would decide on the sequencing of activities.  That  Committee would also consider proposals for the 
National Implementation Unit and the setting up of an IF  National Secretariat.  At the same time, his 
Government would meet a group of local donors that had indicated interest in the area of trade.  He regretted that due to poor logistical arrangements hi s delegation had not been able to attend the Dakar 
Workshop.  He hoped that the outcome of that Wo rkshop would not only feed into the process leading 
up to the operationalization of enhanced IF, but w ould also serve to create a better understanding of 
the issues between the Geneva delegati ons and capital-based officials.   
39. He went on to say that the ITC had sponsored  a familiarization tour for an IF national 
delegation in Geneva.  The team included represen tatives from the private sector.  That represented 
his Government's willingness to work closely with th e private sector, with a view to implementing the 
DTIS Action Matrix.  As part of the familiariza tion tour, over the past three days, the national 
delegation had had useful meetings with the IF  Agencies, which had improved its understanding of 
the current status of the IF process, including the en hanced IF.  Upon return of this delegation to the 
capital, it would take up formulation of bankable projects to be considered for the US$1 million 
funding available under Window II of the IFTF.  Projects to this effect would be submitted by their 
Local Project Appraisal Committee (LPAC) by March 2007.  His authorities would also determine the 
mode of project execution at the next national IF  Steering Committee meeting.  He said that the 
formal approval of the DTIS and its action matrix wo uld be done by his Government in January 2007.  
Integration of the DTIS had already taken place with in the in-country planning and budgeting process.  
Once the enhanced IF became operational, his c ountry would be ready to benefit from it.  He 
expressed his appreciation to the agencies for their support to the IF process in his country.  He 
reiterated his Government's commitment to the IF.  WT/IFSC/M/17 
Page 12  
 
  40. The representative of Cambodia
 thanked Ambassador Stephenson for his comprehensive 
report on the status of the work relating to the enha nced IF.  He also thanked the Chairperson of the 
IFWG for her report on the meeting of the IFWG on 12 December 2006.  He associated himself with 
the statement made by Bangladesh, on behalf of the LDCs.  He took the opportunity to make a brief 
report on the status of updating of DTIS for his country.  The Ministry of Commerce, the IF Focal 
point, had been working closely in collaboration with the relevant IF stakeholders to update the DTIS.  
The first draft was expected to come out at the end of the year, and the final draft was expected to be 
completed within the next three months.  The upda ting of the DTIS had been designed to identify 
priority sectors with appropriate details, and to work out the timeframe for implementation of activities under the enhanced IF in 2007.  It was hoped that the updated DTIS would be ready in time.  
He thanked the agencies and donors for assisting his country in the implementation of the IF.  He 
hoped that such assistance would continue in the days ahead. 
41. The representative of Benin
 said that the DTIS validation workshop had been held on 13 to 
14 October 2005.  The workshop had included part icipants from governments, private sector, civil 
society organizations as well as the six Agencies of the IF.  A number of bilateral donors had also 
taken part in the workshop.  Following the workshop,  his Government had validated the DTIS and its 
Action Matrix.  His country had entered into the phase of second generation of PRSPs, and his 
Government was able to secure support for the preparation of a second PRSP.  The national IF 
Secretariat had been actively participating in the implementation of the second generation PRSP for 
Benin.  Development partners ha d been aligning their support in the context of the PRSP.  The IF 
Focal point and the Donor Facilitator (Denmark) had jointly prepared a roadmap for continuation of 
the IF-related activities in his country.  The progra mmes associated with the IF had been developed 
through a participatory approach which included pa rticipants from public sector, private sector, civil 
society organizations, bilateral donors and other orga nizations represented in Benin.  He underlined 
the importance of adequate financial and technical  assistance for the LDCs, in particular for the 
management of the national IF Secretariat, and fo r the implementation of the IF activities.  Support 
for the development of projects for submission under Window II of the IFTF was vital.  His 
authorities had reached an advanced stage of submitting new projects under Window II of the IFTF.  He also emphasized the need to have regular information sessions on the progress made in the IF 
process, in particular developments with regard to the enhanced IF.  He invited bilateral and 
multilateral partners to support the development of IF  activities in his country.  That would help his 
country to accelerate industrial development and integrate into the multilateral trading system. 
42. The representative of Nepal
 said that the DTIS of his country had been validated.  His country 
had started accessing funding under Window II of the IFTF.  The IF Focal point and the IF 
implementation unit had been focussing on two issues.  First, his authorities had been working on how 
to update the current DTIS, which had been prepared a couple of years ago.  Both the local and global 
environment had changed since then.  For instance,  the termination of the Agreement on Textiles and 
Clothing (ATC) had an adverse impact on his country.  An update of the DTIS had become necessary.  
Second, preparations were underway  in order to re-prioritize the DTIS Action Matrix and to develop 
suitable projects.  He reiterated that the implemen tation of the IF, in par ticular implementation of 
projects, would need to be made effective.  He  emphasized the need to build the capacity of the 
implementation unit as well as the IF Focal point on the ground in order to better prepare themselves for the implementation of the IF.  This perspective s hould be an integral part of the enhanced IF.  He 
thanked donors which had been s upporting the IF activities in his country.  He stressed that the donors 
on the ground also needed to be sen sitized on the IF process.  He ha d reports from his capital that the 
resident donors in his country were not interested  in trade-related projects.  IF should promote 
partnership among the beneficiaries and the developm ent partners.  He stressed the importance of 
programme budgeting based on sectoral approach.  Programme budgeting could allow streamlining of 
reporting obligations into a single format and coul d ensure sustainability of the programmes.  He 
sought support from the donor community in terms of promoting sectoral studies through programme  WT/IFSC/M/17 
 Page 13 
 
 
  budgeting.  He hoped that once the enhanced IF would take effect, his country would be able to take 
up a number of projects with a view to promoting trade of his country.   
43. The representative of Zambia  thanked both Ambassador Stephenson as well as 
Mrs. Rugwabiza for their reports.  She said that  following the DTIS validation workshop, and the 
subsequent adoption of it by the Governme nt, her country had made progress on the IF 
implementation.  The IF had been mainstreamed in to the national development plans.  Most of the 
activities that formed part of the DTIS Action Matrix  had also been infused into the Action Plan for 
the national development plan, which had been finaliz ed very recently.  Private sector participation in 
the IF activities had improved.  The private sector  development programme had been instituted at 
national level.  A private sector expansion team had been constituted, which had been working in 
helping the process of identifying the key activiti es from the DTIS Action Matrix that would be 
undertaken within the next six months.  Budget ha d been drawn up taking this  into account.  She was 
pleased to inform the IFSC that a number of bila teral donors had taken an in terest in supporting IF 
activities.  She underlined the need to ensure adequate support to the IF Focal point in the beneficiary 
countries.  She thanked the WTO and other IF Ag encies for their support in the IF process.  
44. The representative of Djibouti  hoped that the enhanced IF would be implemented as soon as 
possible.  The IF Focal point in his country w as from the private sector, which demonstrated the 
interests of the private sector in the IF.  Trade was a priority for his country.  Due to resource 
constraints, his country had no alternatives but to  promote trade.  Trade accounted for 70 per cent of 
GDP.  The DTIS, which had been validated in May 2004, had two main components.  First, strengthening the institutions in charge of promo ting trade, namely:  the Ministry of Trade, the 
Ministry for the Promotion of Investment and the Chamber of Commerce.  Second, promotion of 
tourism which was gaining in importance in his c ountry.  His authorities had established a number of 
departments to ensure that institutions carried out their role properly.  His Government had set up a 
single window for investment promotion, including th e National Agency for Investment Promotion.  
He said that the IF had played an instrumental  role in strengthening trade capacity and improving 
coordination among institutions.  His country had r eceived Foreign Direct Investment (FDI) in the 
past few years.  The needs of FDI had been revi ewed, and the new estimates  had suggested an amount 
of US$5 billion, which would need to be invested in the ports, and for refinery industries.  He thanked 
development partners as well as the IF Agencies for their support to Djibouti in the IF process.  He 
particularly thanked ITC which had been an implem enting agency in his country.  He hoped that 
under the enhanced IF there would be a greater na tional appropriation of funds.  He underlined the 
importance of improved coordina tion among all IF stakeholders so as to ensure effective 
implementation of the IF in the beneficiary countries.   
45. The representative of the World Bank
 shared with Members the experiences gained by the 
World Bank during DTIS Workshops in a number of  LDCs.  He noted that the LDCs had been 
recommending more resources for activities under Window II of the IFTF.  In that context, he 
underlined the importance of seeking enhanced resources by the LDCs to implement the Action 
Matrix in its entirety.  DTIS Action Matrices included actions in areas that were beyond the ambit of the Ministry of Trade.  In this regard, he pointed  out that most of the constraints identified by the 
LDCs in the DTIS related to supply-side cons traints.  Customs reforms and private sector 
developments were among the areas that had been feat uring prominently in the DTIS Action Matrices.  
Therefore, there had been an increasing recognition that promotion of trade would require multi-fold 
interventions. 
46. He said that the World Bank ha d developed a template for an aide mémoire  in preparation of 
the DTIS.  This aide mémoire  could be discussed with the LDC authorities before its finalization.  He 
then outlined the main elements of a standard aide mémoire .  First, he emphasized the importance of 
mainstreaming trade into national development plans.   Trade should be reco gnized as an important 
engine for economic growth, and this should be reflected in the national development plans.  WT/IFSC/M/17 
Page 14  
 
  Integration of trade into PRSPs or national deve lopment plans would send an important signal to 
donors which in turn could enhance the likelihood of  securing funds from them.  In this regard, he 
stressed the need for effective in ter-Ministerial coordination.  Second, he underlined the need to 
mobilize local donors with a view to implementing the DTIS Action Matrix.  He cautioned that the 
needs of the LDCs would not be fully met from the resources that would be available under the 
enhanced IF.  It was thus important to look for add itional funding.  In that context, it was important to 
mobilize local donors to tap into their resources.   
47. He went on to say that donors were considering setting up of a basket fund in Tanzania.  It 
would essentially mean that a number of donors could pool their funding together so that there could 
be one central fund from where the local activities would be funded.  That would reduce transaction 
costs and simplify procedures to access funds.  Some donors were, however, reticent about 
participating in such a multi-donor trust fund.  He stressed that decisions based on one set of 
programmes might prove useful for countries.  Inco rporation of trade into PRSPs could help donors 
base their interventions in the area of trade under th e framework of PRSPs.  Third, he noted the need 
for a national overview body which could oversee th e whole implementation process of the IF.  Such 
a body comprising a national implementation unit incl uding a Secretariat should give guidance to all 
different Ministries involved in the implementation of the IF.  Fourth, he emphasized the need for the LDCs to prioritize their DTIS Action Matrices, and also the need for its translation into a real action plan.  He said that DTIS Action Matrices in general were very long, and woul d need to be condensed 
through prioritization and by developing a real actio n plan.  That would be a goal to achieve in the 
next three to five years.  Based on such action plans, the LDCs should submit concrete proposals for 
consideration under the enhanced IF Trust Fund or under a multi-donor trust fund, or for 
consideration by individual donors.  He said that an important source of funding was the World Bank, 
which might be considered for big scale investment s and loans.  He hoped that the Geneva process 
and the process in the field could reinforce each other so as to make the enhanced IF a success. 
48. The representative of the UNDP
 noted that the question of the basket fund as a funding 
modality for the implementation of DTIS Action Matrix had come up in the discussion at the IFWG.  
He then supplemented the information that had been  provided in this regard by the representative of 
the World Bank.  He said that countries like Cambodi a, Mozambique, Sierra Leone and Zambia were 
considering to implement their Action Matrices on a programme basis and were also considering 
pool-funding arrangements to ensure coordination an d reduction of transaction costs.  These types of 
arrangements were already in place in some countri es and the IF process could benefit from the work 
done in this area.  He then gave specific examples  of countries in which the UNDP had been working 
with the governments to develop such pool-funding arrangements.  He went on to say that upon request from the Government of Mozambique, UN DP had been working to develop a programme 
approach and a programme fund to support the im plementation of the DTIS Action Matrix.  The 
Government of Mozambique had mainstreamed its DTIS Action Matrix into its PRSP for the period 
2006 to 2009.  Instead of proposing a number of pr ojects, the Government and the UNDP had been 
working together to formulate one intensive pr ogramme covering the key priorities of the DTIS 
Action Matrix with funding from in-country bila teral donors and multilateral sources.  Similar work 
had been launched in Sierra Leone.  The DTIS of Si erra Leone was validated only a month ago.  The 
Government of Sierra Leone had been trying to attract funding not only from in-country donors but 
also from non-resident donors.  Sierra Leone ha d received support from non-resident donors in its 
general elections, which had encouraged its Govern ment to explore similar support in the area of 
trade.  He said that the Government of Uganda had mainstreamed its DTIS Action Matrix into the 
national budget.  That underlined the need to a lign any funding modalities wi th the national budget.  
Direct support to the national budget had become an important funding modality, which had been 
increasingly used by the donors to help the LDCs. 
49. The Chairman of the IFSC
 noted that the beneficiary count ries had attached high importance 
to the IF to promote their trade development.  Key IF Agencies such as the World Bank and the  WT/IFSC/M/17 
 Page 15 
 
 
  UNDP had emphasized the need to mainstream trade into national development strategies so as to 
make trade an engine for growth.  Half of the LDCs had now entered into the post-DTIS phase.  
Regular reporting by the IF beneficiaries to th e IF governing bodies would help to improve the 
implementation of the IF, as such reports could bring out any shortcomings, which could then be 
addressed.  He encouraged the LDCs where DTISs we re under preparation or where the IF was at an 
initial stage to bring to Members' attention any matte r that might need to be addressed by the IFSC or 
IFWG to ensure the smooth functioning of the IF in  their countries.  He proposed that the IFSC take 
note of the statements made.   
50. It was so agreed . 
E. IFTF:   FINANCIAL STATUS REPORT - REPORT BY UNDP  
51. The Chairman of the IFSC  invited the UNDP to provide Members with a status report of the 
IF Trust Fund.   
52. The representative of UNDP  gave a status report of the IF Trust Fund.  He said that as of 
31 October 2006, the UNDP had received pledg es amounting to US$37 million out of which 
US$36.7 million had been transferred.  He added that  all pledges with respect to Window I of the 
IFTF had been transferred.  Since the last re port, the UNDP had received contributions from the 
Governments of Germany, Ireland and the United Stat es.  He also mentioned that Italy, Switzerland 
and the United Kingdom had contributed directly to  the WTO for IF-related activities.  He expressed 
appreciation to the donors for their contributions to the IF. 
53. He added that the total receipts of the IFTF stood at US$37.5 million which included interest 
earned on the contributions, out of which, US $25.6 million had been awarded to activities under 
Window I and Window II of the IFTF.  The balan ce of the IFTF as of 31 October 2006 remained at 
US$11.9 million.  He then made comparisons betw een expenditures and commitments relating to the 
IFTF.  The total commitments amounted to US$24 .4 million and the expenditures recorded were 
US$15 million.  Under Window I of the IFTF, the e xpenditure/commitment rati o (delivery rate) was 
78 per cent, while the rate for Window II of the IFTF was 45 per cent.  He pointed out that these 
figures represented averages, and that some projects which had been approved recently had yet to 
incur expenditures.   
54. He said that Window I of the IFTF had been financing the preparation of the DTIS and 
supporting projects for strengthening national implemen tation capacities.  DTISs had been financed in 
32 LDCs.  The figure included the LDCs which had completed the DTISs and also the LDCs where DTIS preparation was ongoing.  Under this Wi ndow, total expenditures recorded were around 
US$9 million, and along with advances the figure st ood at US$10.4 million.  Expenditures recorded 
represented 78 per cent of the commitments, and ex penditures and advances combined represented 
88 per cent of the commitments.  Under Window II of the IFTF, projects had been financed in 15 LDCs.  The amount allocated in these projects wa s US$12.6 million.  Total expenditures recorded 
were US$5.75 million, amounting to 45 per cent of th e commitments.  The expenditure and advances 
combined accounted for 49 per cent of the commitments.   
55. He went on to show the projected funding  requirements from 1 November 2006 until 
31 March 2007.  In this regard, he recalled that at its last meeting, the IFWG had extended the 
deadline for submitting projects to be funded unde r Window II of the IFTF for seven LDCs, which 
could allow submission of projects amounting to US$1.3 million.  Two LDCs, namely Ethiopia and 
Rwanda had  not utilized their full entitlements under Window II of the IFTF and might do so in the 
projected period.  Eight LDCs which had validated  their DTISs recently had become eligible to 
submit projects under Window II of the IFTF.  That  would require an amount of US$8 million.  The 
DTIS validation was scheduled in Angola and Ma ldives, which would move these countries into the WT/IFSC/M/17 
Page 16  
 
  post-DTIS stage, soon making them eligible to access funding under Window II of the IFTF, which 
would necessitate availability of US$2 million.  T echnical reviews for three LDCs had been positive 
which would place a need for US$0.9 million to carry out DTISs in these three LDCs.  In sum, total 
funding requirements would be around US$13 milli on.  With a total funding commitment of 
US$11.9 million as of 31 October 2006, there would be a shortfall of around US$1 million.  He, 
however, pointed out that the report provided at the meeting was the situation of the Trust Fund until 
31 October 2006.  During November 2006, the UNDP had received contributions from the 
Governments of Denmark and Norway.  Both the contributions were equivalent to US$2.1 million 
adding US$4.2 million to the IFTF.  These contributi ons would lead to a surplus of US$3.2 million, 
with all projected funding requirements realized.  He concluded by saying that a number of donors 
had expressed their interest in contributing to the IFTF.  The UNDP had been working out appropriate 
arrangements with these countries.  The surplus of the IFTF would further increase once contributions 
of these countries were received. 
56. The representative of Bangladesh
 thanked the representative of the UNDP for his report.  He 
recalled that at the Dakar Workshop on the enhanced IF, some Focal points of IF beneficiary countries 
had raised the issue of delay in accessing IF resour ces.  The report from the UNDP had revealed that 
as of 31 October 2006, expenditure and advances combined had accounted for 49 per cent of the 
commitments under Window II of the IFTF.  That  implied a non-realization of the remaining 
50 per cent of the commitments.  He requested th at a fact finding paper be prepared on how IF 
beneficiaries had been accessing funding under Window II of the IFTF.  
57. The representative of Korea  noted that the status report of the IFTF was related to the current 
IF.  The enhanced IF might be launched in the earl y part of 2007.  He request ed an estimate of the 
funding requirements under the enhanced IF.   
58. The representative of Benin shared the point made by the representative of the World Bank on 
the importance of integrating trade into national development plans.  He noted from the report by the UNDP that, in some LDCs, the programmes f unded from IF resources had not been fully 
implemented, leaving IF resources underutilized.  He  underlined the importance of ensuring synergy 
of the IF activities with other development progra mmes of his country.  He noted that development 
partners remained the same for different types of  country programmes.  The coordination of activities 
under the IF and other national programmes represen ted a challenge.  His authorities were aware of 
the recommendation that the DTIS Action Matrix shoul d be integrated into the PRSP Action Matrix.  
However, the challenge was to bring the development partners onto one platform to ensure efficient 
utilization of their resources for all types of na tional programmes.  He sought a recommendation on 
how best to ensure coordinated support from  development partners in this regard.  
 
59. The representative of Ethiopia  noted from the report by the UNDP that his authorities had 
made two requests to the IF management.  First, a request had been submitted with regard to the 
extension of the deadline for completion of on-goi ng projects for one more year.  The second request 
related to the extension of a deadline for submitting an additional project to be funded under IFTF.  
He sought information on the status of the requests made by his Government.   
60. The representative of the UNDP  said that the requests made by the Government of Ethiopia 
had been approved by the IFWG.  A request from the Government of Sudan for top-up support in the 
preparation of the DTIS had also been approve d.  With regard to funding requirements under 
enhanced IF, he said that discussions were under way in the Transition Team and an announcement 
would be made soon.  In response to the question raised by the representative of Bangladesh, he said 
that he would provide some additional informati on on the delivery rate of the Window II of the IFTF.1 
                                                      
1 A note by UNDP on the Window II delivery rate was distributed to Members on 21 December 2006.  WT/IFSC/M/17 
 Page 17 
 
 
  61. The Chairman of the IFSC  proposed that the IFSC take note of the report by the UNDP as 
well as of the statements made. 
62. It was so agreed . 
F. ANY OTHER BUSINESS  
63. The Chairman of the IFSC  proposed that the IFSC meet in 2007.  The precise date would be 
scheduled taking into account the progress made on the work to enhance the IF, and would be 
communicated later.  He wished Members a Merry Christmas and a Happy New Year.  He thanked Ambassador Mia Horn af Rantzien for the trus t she had placed in him in chairing the meeting 
temporarily.  He invited Ambassador Mia Horn af Rantzien to close the meeting.   
64. In the absence of any other business, the Chairperson of the IFSC
 brought the meeting to a 
close.   
 
  WT/IFSC/M/17 
Page 18  
 
  Annex I
 
 
EIGHTEENTH SESSION OF THE INTEGRATED FRAMEWORK  
STEERING COMMITTEE 
 
Wednesday, 13 December 2006 at 3 p.m.  
 
Centre William Rappard  
 
 
1. The Integrated Framework Steering Committee will hold its Eighteenth Session on Wednesday, 13 December 2006 starting at 3 p.m. in the WTO building.  
2. The items proposed for the agenda are:   
 
(a) Adoption of the agenda;   
(b) 46th meeting of the Integrated Framework Working Group:  report by the Chair of 
the IFWG; 
(c) Report by the Chair of the IF Transition Team on the work related to the  
recommendations on the Enhancement of  the Integrated Framework;  
(d) Implementation of the IF:  report by beneficiaries on follow-up to DTIS:  countries 
which have validated their DTIS are encour aged to report on the status of the IF 
process in their countries; 
(e) IFTF:  financial status report - report by UNDP;  
(f) Any other business. 
 
__________