WORLD TRADE
ORGANIZATIONWT/COMTD/15
30 November 1998
(98-4799)
REPORT (1998) OF THE COMMITTEE ON TRADE AND DEVELOPMENT
I. INTRODUCTION
1. This Report covers the activities of the Committee on Trade and Development (CTD) and the
Sub-Committee on Least-Developed Countries (SCLDC) for 1998 up to the date of issue.
II. BACKGROUND
2. The CTD was established by a decision of the General Council at its meeting on 31 January
1995,1 pursuant to Article IV.7 of the Marrakesh Agreement establishing the World Trade
Organization (WTO).  The decision establishing the CTD listed its terms of reference.
3. The Sub-Committee on Least-Developed Countries  was established by a decision of the CTD
on 5 July 1995.2  The decision of the CTD establishing the Sub-Committee on Least-Developed
Countries (SCLDCs) listed its terms of reference.
4. The CTD held four sessions during the period, on 6 March, 23 April, 19 June and
2 November.  The Minutes of these meetings are contained in documents WT/COMTD/M/19,
WT/COMTD/M/20, WT/COMTD/M/21 and WT/COMTD/M /22.  The first session in the year was
chaired by Ambassador Dhurmahdass Baichoo (Mauritius). Ambassador Iftekhar Chowdhury(Bangladesh) was elected as Chairman at the 19
th Session of the CTD on 6 March 1998, and chaired
the subsequent sessions.
5. The SCLDCs held three sessions in the pe riod under review, on 23 April, 6 July and
29 October 1998.  The CTD elected Ambassador Hans Henrik Bruun (Denmark) as the Chairman of
the SCLDCs at its meeting of 23 April 1998.
III. WORK OF THE COMMITTEE ON TRADE AND DEVELOPMENT
6. The principal themes addressed by the Committee in 1998 were as follows.
(a) review of the application of special provis ions in the Multilateral Trading Agreements
and related Ministerial Decisions in favour of developing Members, in particular
least-developed countries;
(b) work related to least-developed countries and follow up to the High-Level Meeting
on Integrated Initiatives for Least-Developed Countries Trade Development;
(c) technical cooperation and training activities for  developing country Members;
(d) evaluation of technical cooperation and training programmes;
(e) electronic commerce;(f) concerns and problems of small economies;
(g) trade facilitation;
(h) reporting on regional trade agreements;  and
                                                     
1 WT/L/46.
2 WT/COMTD/2.WT/COMTD/15
Page 2
(i) requests for observer status with the CTD.
(i) Review of the application of special provisions in the Multilateral Trading Agreements and
Related Ministerial Decisions in favour of developing Members, in particular least-developed
countries
7. In this area, the CTD continued with its review of the application of special provisions for
differential and more favourable treatment of developing countries, initiated in 1996.  The background
document (WT/COMTD/W/35) prepared by the Secretariat continued to be the factual basis for
discussions.  Some Members proposed that the CTD should move from its factual stage, as contained
in the Secretariat document, to a more analytical stage which would provide a framework for theevaluation of the measures.  To this end, a Member, supported by some others, proposed that the CTD
should examine the difficulties encountered by WTO Members (developed, developing and least-
developed) in implementing the special provisions, analyze the impact and effects of the special
provisions on the trade and economies of developing countries, and the continued relevance of the
concept of special and differential treatment in the light of rapid changes in the international tradingsystem.
3  Some other Members, while recognizing the importance of special and differential treatment
provisions, emphasised the necessity of focused, practical discussions of the item.  These Members
were unsure of the potential value of a broad conceptual discussion of special and differential
treatment provisions, and underscored the importance of engaging in a constructive debate on the
application of the provisions.
8. Following extensive consultations, the CTD agreed that the Secretariat should circulate a
questionnaire to all WTO Members. The questionnaire would request Members to indicate steps taken
to implement the relevant provisions; indicate diff iculties, if any, that they have experienced in
implementing these provisions; and state any other relevant comments.  The Secretariat would
compile and analyze replies received, but make no judgements.  It was also agreed that while awaitingthe responses from the questionnaire, the Secretariat would begin preliminary work on the paper by
drawing on materials available in the context of trade policy reviews, reports of technical missions
and technical assistance activities, minutes of meetings of WTO bodies, and from the needs
assessment of LDCs in the context of the High-Level Meeting (HLM) and its follow-up.
(ii) Work related to the Sub-Committee on Leas t-Developed Countries and follow-up to the
High-Level Meeting
9. During the review period, the Sub-Committee met three times.  A substantial part of the
Sub-Committee's work focused on the follow-up to the High Level Meeting (HLM) for LDCs, market
access for LDCs' exports of goods and services, and difficulties faced by LDCs in implementing
WTO Agreements.
10. The CTD and the Sub-Committee on Least-Developed Countries were periodically updated
on the follow-up to the HLM on Integrated Initiatives for Least-Developed Countries' Trade
Development.  These updates focused on the following points:
- the completion by 40 LDCs of needs assessments for trade-related technical
assistance in response to which the six agencies have prepared 39 integratedresponses containing commitments to provide technical assistance;
 4
                                                     
3 WT/COMTD/W/46.
4 Published in the series WT/COMTD/IF/-.WT/COMTD/15
Page 3
- information on trade-sector donor meetings (round-tables or consultative group
meetings) requested by a number of LDCs;
- information on the implementation of the WTO's part of its technical assistance
commitments in the integrated responses.  This includes commitments to provideLDCs with information technology in terms of computers, software and know-how to
access information over the Internet, and the expectation that 36 LDCs would be
equipped by the end of 1998;
- the establishment of a Joint Administrative Unit located within ITC, handling the
day-to-day work of the Integrated Framework Process and servicing the meetings of
the inter-agency coordination group;
- the establishment of an Integrated Framework Website on the Internet:
http//www.ldcs.org;  and
- approval to date of the Integrated Framework by the governing bodies of four other
intergovernmental agencies (ITC, UNCTAD, UNDP and the World Bank).
11. On market access, pursuant to announcements made at the HLM by several Members for
preferential market access measures in favour of LDCs, five Members (the European Communities,
5
Switzerland,6 Canada,7 Turkey8 and Egypt9) notified the details of these measures.
12. The Chairman invited the Secretariat to conduct informal consultations with all interested
delegations on the issue of an appropriate legal accommodation under WTO provisions for
autonomous improvements in market access in favour of the LDCs by developing countries, and to
keep him abreast of the consultations.10  These consultations are underway.
13. At its meeting of 6 July 1998, the Sub-Committee on Least-Developed Countries requested
the Secretariat to prepare a new market access paper.11  The new paper would build on the earlier one
prepared for the HLM,12 update the tariff information, major barriers to LDCs' exports of goods and
services, including non-tariff barriers, and survey any opportunities in emerging markets for LDCs'
exports.  In response to this request, the Secretariat prepared a Background Note, entitled:  "Market
Access for Exports of Goods and Services of the Least-Developed Countries: Barriers and
Constraints".13  On the basis of this Note, the Sub-Committee on Least-Developed Countries began
discussions on the market access barriers and restrictions, and supply-side constraints to the export ofgoods and services of LDCs' at its meeting on 29 October 1998.
14. Also at its meeting of 6 July 1998, the Sub-Committee requested the Secretariat to prepare a
paper which could assist the Sub-Committee in assessing the difficulties faced by LDCs with regard
to implementation of WTO obligations and the appropriateness of the current response.  The
Secretariat prepared a background Note as requested.
14  The Sub-Committee held an initial
consideration of this Note at its meeting on 29 October 1998.
                                                     
5 WT/COMTD/W/41.
6 WT/COMTD/W/N/7.  Also see WT/COMTD/W/44.
7 WT/COMTD/LDC/M/11 and WT/COMTD/12.
8 WT/COMTD/W/39 and Corr.1.
9 WT/COMTD/W/47.
10 WT/COMTD/M/21, para.27.
11 WT/COMTD/LDC/M/12, paras. 6, 13 and 14.
12 WT/HL/LDC/14 and Add.1.
13 WT/COMTD/LDC/W/11.
14 WT/COMTD/LDC/10.WT/COMTD/15
Page 4
(iii) Technical Cooperation and Training Activities
15. In the period under review, the CTD adopted a new WTO Manual on Technical Cooperation
and Training. Members took note of the WTO's Three-Year Plans for Technical Cooperation
for 1998-2000 and 1999-2001.15  Proposals were discussed for broadening the scope of WTO
technical cooperation and training.  Some Members underscored the issues relating to efficiency gains
in technical assistance, particularly through the use of Information Technology in the delivery of such
assistance. It was agreed that the Secretariat should prepare a background note on the use of
information technology in the delivery of technical assistance, cooperation and training.  The CTD
also discussed the funding of technical cooperation activities.  Some Members felt that greater
certainty and predictability were needed in the funding of technical cooperation and assistance
activities.  The options mentioned included financing technical cooperation activities from the regularbudget and the retention of extra-budgetary funding through the mechanism of trust funds.  In this
connection, concern was expressed about the difficulties of managing the increasing number of Trust
Funds;  the point was also made that regular budgetary funding of technical cooperation programmes
was a matter for the Committee on Budget, Finance and Administration.
16. A new WTO programme for trainees from developing countries was announced under an
administrative arrangement between the Netherlands and the WTO Secretariat.
(iv) Evaluation of Technical Cooperation and Training
17. Members considered that the evaluation, both quantitative and qualitative, of technical
cooperation and training programmes was indispensable to the continued improvement in the qualityof technical assistance delivery.  To this end, the Secretariat circulated an issues document entitled:
Evaluating Technical Assistance: Issues for Reflection.
16 In discussing this paper, there was
widespread recognition that evaluation procedures, criteria, and guidelines were essentialpre-conditions for evaluation.  Members re-affirmed the importance and value of the "Guidelines for
WTO Technical Cooperation" as adopted by the CTD on 15 October 1998.
17  The success of WTO
technical cooperation would be measured against the guidelines.  In addition,  some Members
emphasised that a key test of the effectiveness of technical cooperation and training programmes was
the extent to which it assisted developing countries in implementing their obligations and
commitments.  The CTD agreed to keep this item under review.
                                                     
15 WT/COMTD/W/48.
16 Job No: 4299
17 WT/COMTD/8.WT/COMTD/15
Page 5
(v) Electronic Commerce
18. Under the Item on Electronic Commerce, one Member initiated discussions by submitting a
Working Paper.18  The paper included several proposals including, inter alia , the request that the
Secretariat should prepare a paper on enhancing the participation of developing countries in electroniccommerce and the use of information technology in electronic commerce and the use of information
technology in the integration of developing countries into the multilateral trading system.  On
25 September 1998, the General Council adopted a comprehensive Work Programme on Electronic
Commerce.
 19  In the Work Programme, terms of reference were allocated to four WTO bodies.  These
bodies were: the Council for Trade in Services; the Council for Trade in Goods; the Council for
TRIPS; and the Committee for Trade and Development.  In the General Council Work Programme, it
was stated that:
The Committee on Trade and Development shall examine and report on the
development implications of electronic commerce, taking into account the economic,
financial and development needs of developing countries.  The issues to be examined shall
include:
- effects of electronic commerce on the trade and economic prospects of developing
countries, notably of their small- and medium-sized enterprises (SMEs), and means of
maximizing possible benefits accruing to them;
- challenges to and ways of enhancing the participation of developing countries in
electronic commerce, in particular as expor ters of electronically delivered products:
role of improved access to infrastructure and transfer of technology, and of movement
of natural persons;
- use of information technology in the inte gration of developing countries in the
multilateral trading system;
- implications for developing countries of the possible impact of electronic commerce on
the traditional means of dist ribution of physical goods;
- financial implications of electroni c commerce for developing countries.
19. Having regard to the initial discussions in the CTD and as a consequence of the adoption of
comprehensive work programme on electronic commerce by the General Council, the Secretariat was
requested to prepare a Note on the development dimension of electronic commerce. 20
(vi) Concerns and Problems of Small Economies
20. This item was first placed on the agenda at the 22nd Session of the CTD on 2 November.  The
basis of the discussions was a joint paper by six Members on "Concerns and Problems of Small
Economies".21  After an initial discussion, the CTD agreed to keep this item on its agenda in the light
of interest expressed by Members.
                                                     
18 WT/COMTD/W/38, Electronic Commerce in Goods and Services.
19 WT/L/274
20 WT/COMTD/W/51, Secretariat Background Note on the Development Dimension of E-Commerce.
21 WT/COMTD/W/50, communication by Barbados, Jamaica, Lesotho, Mauritius, Sri Lanka and
Trinidad and Tobago.WT/COMTD/15
Page 6
(vii) Trade Facilitation
21. This Item was placed on the agenda of the CTD at its 22nd Session, pursuant to a letter
addressed to the Chairman of the CTD from the Chairman of the Council for Trade in Goods (CTG).
In the letter, the Chairman of the CTG requested the CTD to contribute to the Work Programme ofthe CTG on Trade Facilitation, which is to be completed by March 1999.  The CTD was requested to
address those aspects of trade facilitation which it regarded as being within its mandate for the
coordination of development matters, and to forward its contributions to the informal discussions of
the CTG on trade facilitation.  To assist CTD discussions on this Item, the CTD invited UNCTAD to
make a presentation on the subject.
22  In the exchange of views following the presentation, several
issues were identified by Members that could constitute the possible contributions by the CTD to the
Work Programme of the CTG on the subject.  These issues included:
- electronic commerce and its potential impact on small and medium
enterprises (SMEs);
- trade facilitation as a "win-win" situation, and a driving force in economic
development;
- implications of the reservations by various Members to the Kyoto Convention;  and,- diversity of administrative practices.
22. Members agreed to keep this item under review prior to the submission, by the CTD, of
possible contributions to be made to the CTG at its March 1999 meeting.
(viii) Reporting on Regional Trade Agreements
23. At its 22nd Session on 2 November, the CTD adopted recommendations from the Committee
on Regional Trade Agreements (CRTA) on suggested procedures, as guidelines, for information on
regional trade agreements submitted to it.
(ix) Requests for Observer Status with the CTD
24. At the 22nd Session of the CTD, a request for observer status from the Inter-Arab Investment
Guarantee Corporation was noted.  Following initial comments expressed by Members, the Chairman
proposed to undertake informal consultations on the request and other outstanding requests forobserver status.
__________
                                                     
22 Presentation by Mr. Maxence Orthlieb, Trade Facilitation Section of UNCTAD at the 22nd Session of
the CTD.