. /.  WORLD TRADE  
ORGANIZATION  WT/COMTD/SE/W/12 
21 February 2005 
 
 (05-0715) 
Committee on Trade and Development 
Dedicated Session Original:   English 
 
 
 
WORK PROGRAMME ON SMALL ECONOMIES 
 
Communication from Antigua and Barbuda, Barb ados, Bolivia, Cuba, Dominican Republic, 
El Salvador, Fiji, Guatemala, Honduras, Jama ica, Mauritius, Mongolia, Nicaragua, Paraguay, 
Sri Lanka, Trinidad and Tobago  
 
 
 The following communication, dated 18 February 2005, is being circulated at the request of 
the above delegations. 
 
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1. This paper is an attempt by the proponents to c ontribute in the context of the renewed efforts 
for completing work on all issues and mandates as calle d for in the July package and with a view to 
addressing the mandate contained in paragraph 35 of the Doha Declar ation.  It does not purport to 
substitute any of the existing propo sals and is made without prejudice to issues contained therein.  
2. It is the aim of the proponents to trigger with  this paper the engagement of all members in 
working towards framing responses to  the needs and concerns of the Small Economies and ensuring 
appropriate reporting to the Sixth Ministerial Confer ence to be held in December 2005 in Hong Kong, 
China.  The paper captures several  of the issues and characteristics contained in the proposal made by 
the Small Economies in WTO document WT/C OMTD/SE/W/1/Rev.1 dated 3 May 2002. 
3. The Decision adopted by the General Council on  1 August 2004 in relation with the Doha 
Work Programme reaffirms the commitments of WT O Members, as part of the Work Programme and 
in conformity with paragraph 35 of the Doha Minist erial Declaration, to a programme of work with a 
view "… to frame responses to the trade-related i ssues identified for the fuller integration of small, 
vulnerable economies into the multilateral trading sy stem, and not to create a sub-category of WTO 
Members." 
4. The objective of these tasks, according to the ma ndate, is to design responses to the identified 
trade-related problems for a fuller integration of the small and vulnerable economies in the 
multilateral trading system.  It is appropriate to emphasize here that, among these economies' main 
characteristics, and at the same time their most  critical problem, is the difficulty they face in 
participating competitively in international trade.   These economies account for a meagre share of 
world trade.  
5. In this context, and taking into account the inte nse work already undertaken in the Dedicated 
Sessions of the Committee on Trade and Development on these issues, it has been  suggested that the 
work of the Committee be approached in three st ages:  first, to consider the use of certain 
characteristics to identify the small and vulnerable ec onomies;  second, to consider the trade-related 
problems that could, reasonably, be attributed to such characteristics;  and, third, to design appropriate WT/COMTD/SE/W/12 
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 systemic responses to these problems;  all of this, without any individual mention of a country or 
group of countries.   
6. To this effect, the Indicative List that follo ws only covers the specific characteristics and 
problems in a brief and concise manner.  The clo se linkage which exists between the characteristics 
and problems is evident.  The intent and approach of  the delegations sponsoring this paper is to move 
forward the work in the most efficient and cons tructive manner.  These delegations are willing and 
ready to undertake all possible efforts to obtain the best results possible within the time limits that 
Members have imposed on themselves.    
7. The delegations presenting this paper consider that the work towards identifying the trade 
related solutions for a fuller participation of the small and vulnerable ec onomies in the multilateral 
trading system will be part of further stages in the work of the Committee.   
 
INDICATIVE LIST OF SPECIFIC CHARACTERISTICS  AND PROBLEMS 
 
1. Physical isolation, geographical dispersal and distance from the main markets.  Many are 
Small Island or landlocked developing countries.  
2. Insignificant participation in the multilateral trading system and a minimal share of total 
world trade. 
3. Small, fragmented and highly imperfect markets.   
4. In general, very open economies.   
5. Domestic markets with imperfect and highly polarized structures:  either a multitude of small 
and micro enterprises, or cartels/monopolies.  
6. Minimal or no export diversification:  con centration of exports on very few products 
(especially commodities, traditional products and low value added goods).   
7. Low supply of export services.   
8. Dependent upon very few export markets.  
9. Inadequate Infrastructure. 
10. High degree of vulnerability.   
11. Low competitiveness.  
12. Low levels of productivity and insufficient supply.   
13. Economic rigidity with high adjustment costs.   
14. Unable to sustain diversified productions.   
15. Considerable difficulties to attract foreign investment.  
16. Lack of adequate market access opportuniti es to place their few export products.   
17. High transport and transit costs.   
 
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