WORLD TRADE
ORGANIZATIONWT/GC/W/251
13 July 1999
(99-2892)
General Council Original:  English
THE CHALLENGE OF INTEGRATING LDCs INTO THE
MULTILATERAL TRADING SYSTEM
Coordinating Workshop for Senior Advisers to Ministers of Trade in LDCs
in Preparation for the Third WTO Ministerial Conference
Sun City, South Africa, 21-25 June 1999
Communication from Bangladesh
The following communiqué, conclusions, and proposals to be submitted to the preparatory
process for and to the Third Ministerial Conference, resulting from the above-mentioned Workshop
held in Sun City, South Africa, have been received from the Permanent Mission of Bangladesh with
the request that they be circulated to delegations.
_______________
Integrating Least-Developed Countries into the Global Economy:
Proposals for a Comprehensive New Plan of Action in the
Context of the Third WTO Ministerial Conference
A.  Communiqué
1. The Senior Advisers to the Ministers of Trade in the Least-Developed Countries (LDCs) met
in a Coordinating Workshop, jointly sponsored by the Government of South Africa, UNCTAD and
UNDP, in Sun City, South Africa from 21-25 June 1999.
2. The meeting reviewed the experiences and problems of LDCs in implementing the Uruguay
Round Agreements, and assessed the impact of the implementation of these Agreements on their trade
and development prospects.  The meeting examined the question of enhancing LDCs' capacities to
actively participate in the process of global trade ru le-making and in identifying issues of interest to
them in order to safeguard and promote potential benefits and to protect against possible risks andlosses.  The meeting also provided an opportunity to formulate proposals for a Comprehensive New
Plan of Action for Integrating LDCs into the global economy.
3. The meeting expressed concern at the continuing marginalization of LDCs from the
mainstream of a rapidly globalizing world economy as reflected in their low and declining share in
world trade, investment and output.   In the gl obalizing and liberalizing world economy, LDCs face
much greater challenges in overcoming their marginalization and require comprehensive and well
coordinated support measures from the international community.
4. The meeting noted with deep concern the precarious socioeconomic situation and the
structural weaknesses inherent in the economies of the LDCs which relegate these countries to a weakWT/GC/W/251
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competitive position in the current global economic setting.  The majority of the population of LDCs,
notably women, remain trapped in abject poverty and social exclusion.  The challenges facing the
LDCs, in this context, can be summed up into the following categories:  (i) reversing the decline in
economic and social conditions in these countries;  (ii) reactivating and promoting economic growth,
recovery and development;  (iii) enhancing the process of structural transformation in theseeconomies and reversing their continued marginalization in world trade;  and (iv) ensuring their full
and successful integration into the international trade and the global economy on an equal footing.  In
this context, the strengthening of democracy, broad-based popular participation with a gender balance
and good governance were emphasized as prerequisites and critical inputs in the creation of an
enabling environment for sustainable human development in LDCs.
5. The meeting was encouraged by the continued and concerted efforts made during the 1990s
by the LDCs themselves and many of their development partners in order to improve the prevailingbleak socioeconomic condition in these countries.  At national level, strong commitment to the
implementation of economic reforms by governments of the LDCs have brought about significant
economic improvements.  However, many of the constraints facing these countries are structural and
the reform gains attained in the last two decades have proven insufficient to redress the precarious
socio-economic conditions in LDCs.  As a result, these economies remain fragile and susceptible tointernal and external shocks - political, social, financial or otherwise.
6. The meeting also noted initiatives in favour of LDCs undertaken on the international front
includes the convening of two UN Conferences on LDCs which adopted the Substantial New
Programme of Action and the Paris Programme of Action in the 1980s and the 1990s respectively, the
Marrakech Declaration and Ministerial Decision in favour of LDCs, the convening of the High-LevelMeeting on Integrated Initiatives for LDCs' Trade Development by the World Trade Organization and
the adoption of Integrated Framework for Trade-Re lated Technical Assistance being implemented by
IMF, ITC, UNCTAD, UNDP, the World Bank and WTO.  These initiatives are a clear manifestation
of an increasing awareness and concern of the international community on the declining
socioeconomic conditions in the LDCs and on the need to take corrective action.
7. The meeting, however, noted with grave concern that the numerous declarations, promises
and commitments emanating from the above events in favour of LDCs have to a large extent failed to
materialize.  As a result, the benefit from national policy reform and adjustment programmes adopted
by the LDCs themselves were not fully realized and in some cases have had negative impact.  In this
context, the meeting called upon the international community to honour its commitments to its
weakest members and provide concrete support commensurate with the development needs of the
LDCs.
8. The meeting noted with great concern the shrinking aid effort of the major donor group,
particularly the member countries of the Development Assistance Committee (DAC) of the OECD
and the continued decline in ODA.  The meeting welcomed recent initiatives to alleviate the debt
burden on the LDCs and underlined the need for concrete, faster and substantive action.  Similar
concern was raised over lack of market access, the decline in commodity prices, over dependence ofLDCs on one or two commodities for their foreign exchange earnings and lack of financial flows
which continue to constrain further LDCs' growth and development prospects.  Collectively, these
problems have undermined efforts made by the LDCs to break out of their inherited dualistic
economic structures.
9. The meeting stressed the need for the globalization process to be tamed and managed by the
international community in a way that facilitates the integration  of LDCs in the world economy and
at the same time offer a more equal sharing in its benefits.
10. In this regard, the meeting emphasized that meaningful and beneficial integration of LDCs
into the global economy and multilateral trading system requires concrete actions by the LDCs andWT/GC/W/251
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their development partners to strengthen LDCs supply capacities, inter alia , through the development
of physical and institutional infrastructure and human resources development, unencumbered and
improved market access and retaining flexibility in the use of appropriate policy instruments to
strengthen competitiveness of sectors of strategic importance for the development of their trade.  The
initiative for duty-free treatment for all products of  export interest to LDCs should be implemented
immediately.
11. The meeting took the view that the scope of the Multilateral Trade Agenda, structure of
negotiations and time-frame will have great bearing on the ability of LDCs to participate actively in
the light of their limited human and financial resources.  The meeting also emphasized that the Special
and Differential treatment measures are of great interest to LDCs and should be made an integral part
of the rules and disciplines governing the Multilateral Trading System.  A fast-track accession to
WTO by those LDCs which are not yet members should also be an important part of the efforts by the
international community to integrate LDCs into the world economy.
12. The meeting decided that the outcome of the deliberations be presented as formal proposals
by LDCs into the preparatory process for the Third WTO Ministerial Conference, during the
Conference itself and other relevant forthcoming major trade and development forums such as
UNCTAD X and the substantive preparations for the Third UN Conference on LDCs.  The meetingendorsed the strategy of collective bargaining in fu rthering the interest of LDCs in a rule-based
multilateral trading system and further resolved to establish a working group to be entrusted with the
task of following up the proposals and issues re lated to LDCs within the WTO work programme.
13. The meeting underlined the importance of prov iding technical assistance to LDCs by both
bilateral and multilateral development partners to enhance their efforts to contribute to the formulationof a Positive Agenda and building the negotiating capacity in these countries.  In this regard,
UNCTAD through the Office of the Special Coordinator for LDCs, and in cooperation with the
UNDP, WTO, ITC, and other relevant organizations, was requested to continue assisting LDCs in the
pursuit of negotiations to achieve the above-stated objectives.WT/GC/W/251
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B.  Conclusions
1. After consideration of concerns expressed about the risk of the marginalization of LDCs
posed by globalization, the Meeting concluded that a collective strategy for the LDCs should beformulated for the forthcoming Seattle Ministerial Conference.
2. Following discussions on the benefits of membership of WTO, the Meeting concluded that
there were nonetheless gains to be attained from a potentially rule-based system in terms of
transparency, non-discrimination and improving competitiveness in these countries.
3. With regard to concerns about the inability of LDCs to take full advantage of the
opportunities provided by the WTO Agreements, the Meeting identified a variety of constraints
including: (1) shortage of skilled personnel;  (2) complexity of WTO rules and working structures;(3) lack of awareness and full information on the rules;  (4) inability to upgrade domestic regulations;
(5) weak institutional infrastructure;  and (6) high cost of maintaining missions in Geneva.
4. The Meeting concluded that the constraints on the LDCs ability to benefit fully from the
WTO were compounded further by the abuse by the developed countries' of their position in their
exploitation of technical loopholes that resulted in them avoiding full liberalization and an opening upof their markets to LDC products.
5. Following a full discussion on how to redress th e asymmetries in the LDCs and the developed
countries' use of the WTO Agreements, the Meeting resolved that the forthcoming negotiations should
be used to improve the implementation of the existing agreements on the one hand and include a
"positive agenda" for LDCs to bring enhanced benefits on the other.
6. The Meeting stressed the need to ensure that the negotiations are centered on development
issues, whilst recognizing that it would be crucial for LDCs to receive targeted assistance.
7. The Meeting acknowledged the availability of assistance under the "Integrated Framework for
Trade-Related Technical Assistance to LDCs" that seeks to increase LDCs' benefits from the
assistance provided by the six core agencies, but was critical of the way it had operated so far andcalled for its evaluation and for more practical assistance.
8. Following a discussion on the lack of momentum  and slow progress made in the organization
of National Round Tables with Donors envisaged in  the context of Integrated Framework for Trade-
Related Technical Assistance, the Meeting expressed its disappointment and acknowledged that the
pace of progress has severely constrained the overall implementation of the Integrated Framework
adopted by the High-Level Meeting.
9. Following further discussion on the technical assistance available to LDCs, the Meeting
identified the specific circumstances where the provision of well directed technical assistance would
be of particular importance as:  (1) implementation of the existing WTO Agreements,  (2)  support to
the forthcoming negotiations, and  (3)  the accession of LDCs to the Agreements.
10. After having the particular challenges of LDCs in the accession process, the Meeting agreed
that in future multilateral trade negotiations th e development needs of LDCs must be taken into
account and it endorsed the suggestion that the next round of negotiations should be a "development
round".
11. The Meeting concluded that while LDCs should have the primary responsibilities for
formulating their own policies and setting priorities  to accelerate their economic growth, they shouldWT/GC/W/251
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be assisted by the international community not only in designing but also in mobilizing requisite
finance for implementing such policies and programmes.
12. Following calls for improved market access, the Meeting noted that even greater difficulties
might lie with supply-side constraints and that due attention must be given to this issue.
13. The Meeting agreed that in order to ameliorate supply-side constraints, which constitute
fundamental bottlenecks in the integration of LDCs into the world economy, the international
community should adopt innovative, concrete and result-oriented measures to enhance their
competitiveness through, inter alia , infrastructure and human resources development export
diversification and institution-building.
14. The Meeting recognized the need for coherence amongst and between international
organizations and it was observed that as a cond ition for structural adjustment loans a number of
LDCs have been pressurized to undertake liberalization measures beyond requirements stipulated inWTO Agreements.
15. After considering the forthcoming WTO negotiations themselves, in particular their
modalities, scope, duration and structure, the Meeting concluded that the LDCs should have a
common negotiating position and as a means of improving their bargaining position, coalitions should
be built with other developing countries.
16. The Meeting considered issues relating to aspects of the Agreement where the LDCs should
benefit from and exploit the flexibility built into the implementation of the Agreements and agreed
that there is a need for the reaffirmation and expeditious implementation of the Marrakesh Declaration
and Ministerial Decision on Measures in Favour of the Least-Developed Countries.
17. The Meeting heard instances of pressure being ap plied to LDCs not to make full use of the
transitional periods and concluded that LDCs could benefit from a close monitoring of the
implementation of the provisions that are of particular importance to them, particularly "special and
differential treatment" and "market access".
18. The Meeting achieved full consensus that agricultural liberalization has socio-economic
effects in developing countries, especially in LDCs, where the majority of the working population isemployed in the agricultural sector, which consists mostly of small-scale or subsistence farmers.
19. The Meeting acknowledged that the agricultural sector makes substantial contribution to GDP
in LDCs providing food for growing populations and raw materials for domestic industries, and
further acknowledged that in an agrarian economy,  decline in agricultural production can lead to
problems of food security, large negative income effect on farmers and structural socio economic
problems.
20. The Meeting agreed that the scope of the new negotiations on agriculture should take into
account the special needs of LDCs, which would experience adverse effects of further agricultural
liberalization, and further agreed that LDCs should be given flexibility regarding provision of
domestic support for their agricultural sector.
21. The need for harmonization of international standards and the importance of full participation
of LDCs in developing such standards was underscored by the Meeting and it agreed that nationalsanitary and phytosanitary (SPS) standards should not he set at levels higher than the corresponding
standards set by relevant international bodies (i.e. codex alimentarius) and emphasized that Technical
Barriers to Trade (TBT) and SPS measures should not be applied for protectionist purposes.WT/GC/W/251
Page 6
22. The Meeting acknowledged that unilateralism in setting health standards and worse still
changing such standards frequently and without warning undermines the efforts of LDCs in
developing competitive exports and capacity building.
23. The Meeting further agreed that countries resorting to protectionist measures against LDCs in
respect of TBT and SPS, should pay compensation for loss of income when proved wrong.
24. It was recognized by the Meeting that in the c ontext of liberalization in trade in services, the
scope of the next trade negotiations in services is likely to be built-up on the unfinished business and
it was emphasized that during these sectoral market access negotiations, the issue of movement of
natural persons should be pursued.
25. It was further emphasized by the Meeting that in the negotiations for GATS 2000, particular
attention should be given to Article IV of GATT (increasing participation of developing countries)
with a view to making this provision more operational and binding, and the Meeting further
emphasized that there was a need to identify the potential for trade in services in LDCs through a
critical assessment of individual national capacities.
26. The Meeting noted that TRIPS Article 66.2 requires developed country Members to provide
incentives to their enterprises and institutions so as to promote and encourage the transfer of
technology to LDCs to enable them to create a sound and viable technological base.
27. The Meeting also noted that in order to realize the full potential of intellectual property for the
economic development of LDCs it is necessary  for UNCTAD, WTO and WIPO, within their
respective mandates and with financial assistance from donors, to enhance the provision of technical
assistance to LDCs in this area.
28. The Meeting further noted the necessity of the LDCs to simultaneously build domestic
capacity in key sectors in order to realize the full potential of intellectual property for the development
of their economies.
29. The Meeting acknowledged that acceding LDCs were being required to make more stringent
commitments than those previously applied to LDCs, they had to negotiate every aspect of
membership, including special and differential treatment, and that the whole process was protractedand burdensome.
30. The Meeting concluded that a clear and simplified procedure should be implemented for
acceding countries so as to get their membership accepted within a year and consensus was reached
that LDCs seeking accession should automatically have their status recognized and not be subject to
commitments that go beyond LDC Members of the WTO.
31. The Meeting recognized the importance of pr oviding LDCs that are Members of the WTO
with an opportunity to participate in sessions of WTO main organs, including the MinisterialConferences in order to increase their knowledge of the multilateral trading system.WT/GC/W/251
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C.  Proposals to be Submitted to the Preparatory Process of and
to the Third WTO Ministerial Conference
Section A
I. Agriculture
1. Grant of duty and quota-free access to all agricultural products, including those in processed
forms, exported by LDCs in the resumed negotiations on agriculture.
2. Exemption of all LDCs, including those acceding to the WTO, from undertaking
commitments on domestic support and export subsidies.
3. Elimination of export subsidies by developed countries, within an agreed time period,
particularly for agricultural products of strategic interest to LDCs.
4. Provision of technical assistance to LDCs, as envisaged in the Marrakesh Ministerial Decision
on Measures Concerning Possible Negative Effects of the Reform Programme on Least-Developed
and Net Food-Importing Developing Countries, should be enhanced, and made concrete, operational
and contractual.
5. Urgent contribution by developed countries and international financial institutions towards a
revolving fund to help LDCs (and other net food-importing developing countries) to cope with rising
food requirements and associated high food import bills and to assist them to increase local food
production and capacity, inter alia , in marketing, storage and distribution.
II. Agreements on SPS and TBT
6. Members should adhere to international standards, guidelines and recommendations when
adopting SPS measures, and avoid taking unilateral action.
7. The provision given in Article 10.1 of the SPS Agreement should be made more concrete by
committing developed countries to provide adequate t echnical assistance to LDCs as stipulated under
Article 9.1.
8. Interests of LDCs have to be taken into account by international and regional standardizing
bodies in preparing standards, guidelines and recommendations.
III. Industrial subsidies
9. Non-actionable categories of subsidies should be expanded to include those subsidies for
development, diversification and upgrading of i ndustries which are needed and are commonly used by
LDCs.  Financial resources should be made available to meet the special needs of LDCs, particularly
with respect to the subsidies covered by Article 8.2.c (green subsidies).
10. Export subsidies applied by LDCs should be exempted from export competitiveness
thresholds.WT/GC/W/251
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IV. Industrial tariffs
11. Unconditional, non-reciprocal, duty-free, quota- free and bound access to all industrial exports
from LDCs.  Applicable rules of origin should be t hose defined in Article I of the Agreement on Rules
of Origin.
V. Rules of origin
12. Rules of origin for products of export interest to LDCs should be tailored to promote their
participation in the global production chains and the marketing of their products.
13. Rules of origin in autonomous and unilateral trade regimes (unilateral preferential trading
arrangements) in favour of LDCs should be simplified and harmonized.
VI. Customs valuation and pre-shipment inspection
14. Extension of the transitional period contained in Article 20 of the Agreement on Customs
Valuation to a more realistic time-frame for LDCs.
15. Provision of concrete and substantial technical assistance on customs valuation and pre-
shipment inspection and adequate financing to specialized organisations such as the World Customs
Organization.
VII. Agreement on textiles and clothing (ATC)
16. LDCs exports should be exempt from anti-dumping duties and safeguard actions.
17. Undertaking specific measures such as an early implementation of the phasing-out of
remaining quotas for LDCs, extension of product coverage, and duty-free access to all LDCs textiles
and clothing exports under preferential trading arrangements.
VIII.  Safeguards
18. LDCs exports should be exempted from all safeguard actions.
19. LDCs that are implementing safeguard actio n should be exempted from undertaking
compensatory measures.
IX. Anti-dumping
20. LDCs exports should be exempted from anti-dumping action.
21. Procedures for the initiation of anti-dumping action should be much simplified for LDCs.
X. Trade and environment
22. In environmental protection and "mainstreaming sustainability", positive measures should be
first considered before accommodation is sought for the use of trade-restrictive measures in the
implementation of Multilateral Environmental Agreements.  These positive measures include, inter
alia, capacity building, financial and technical assistance.
23. WTO Members should clearly define which domestically prohibited goods (DPG) should be
considered at the WTO, establish and implement concrete mechanisms such as a DPG notificationsystem to increase transparency, and develop enforceable obligations for additional technical
assistance to monitor trade in DPG by LDCs.WT/GC/W/251
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XI. Dispute settlement
24. Panels should be representative including panelists from developed, developing and least-
developed countries.
25. The proposed Legal Advisory Centre should be established without further delay, in order to
meet the needs of LDCs to secure their rights through the use of the Dispute Settlement Mechanism.
XII. Technical assistance
26. Technical assistance be regarded a right for LDCs and an important precondition for meeting
their obligations under the WTO Agreements.  To this end, adequate resources be provided for
technical assistance to LDCs under the regula r budgets of key agencies charged with this
responsibility according to their respective mandates.
XIII.  Special and differential treatment
27. Special and differential provisions in favour of LDCs should continue to be an integral part of
the new multilateral trade negotiations and should be provided in a manner which responds to their
specific needs, taking into account their level of economic development.
28. The transitional periods for the implementation of the Uruguay Round commitments should
be extended to realistic time-frames for LDCs.
XIV. Notification obligations
29. Notification requirements for LDCs should be simplified to facilitate compliance taking into
account their limited administrative capacity and resources.
Section B
I. GATS framework and Sectoral Annexes
30. Guidelines and procedures for the next multilateral negotiations on services have yet to be
finalized and are currently under consultation.  As part of the built-in agenda, services will be the
subject of the up-coming negotiations.  Accordingly, LDCs will need to deepen their understanding ofthe issues in the negotiations in order to advance their strategic interests.
31. The services sectors in LDCs are in general limited in their competitiveness and efficiency,
and their regulatory infrastructure is not well developed.  At the same time, many services have
strategic importance in economic development and trade expansion in the LDCs.  However, the
efforts of LDCs to modernize their services and to establish appropriate regulatory infrastructure are
being constrained by their difficult situation.
Proposals:
• Retain the special and differential treatment measures accorded to LDCs, in particular
the right to regulate services sectors to meet their national development policy
objectives.
• Evaluate the adequacy of their domestic regulatory regimes in services and identify
are as that require strengthening.WT/GC/W/251
Page 10
32. It is most likely that the current on-going work in the WTO to establish rules on specific
issues under the GATS will be carried over to the forthcoming trade negotiations.  Such issues would
have serious implications for LDCs' development policies.
Proposal:
• Incorporate special and differential treatment measures for LDCs in the development
of new rules relating to subsidies, emergency safeguard measures and government
procurement.
33. Many services are labour-intensive and can be exported through movement of natural
persons.  As the GATS covers all categories of services and service suppliers, there are services in
which LDCs have actual or potential comparative advantage.  At the same time, in order to exploitsuch comparative advantage, LDCs need financial assistance and technologies from more advanced
countries.
Proposals:
• Identify restrictions incorporated in the Schedules of Commitments of other Members
that operate as actual or potential barriers to export.
• Strategically liberalize those services geared towards their national development
policy objectives, including through the mechanism of scheduling commitments
under the GATS.
II. Sectoral Annexes
A. Air transport and maritime services
34. The transport service sector, in particular air transport and maritime services, includes a wide
range of highly labour-intensive services where LDCs' suppliers have a potential comparative
advantage.  However, in order to fully exploit it, modernization of facilities and equipment, as well as
up-grading skills and information technology, would be required.
Proposals:
• Identify specific sub-sectors where comparative advantages exist and develop them.
• Conduct systematic studies to identify emerging opportunities.
• Negotiate specific commitments in strategic sectors in accordance with the provisions
in GATS Article IV.
B. Financial services
35. A number of MFN exemptions were maintained  when the preceding round of negotiations
was concluded in mid-1995.  The liberalizing element of GATS is conditional on the extent and
nature of sector-specific commitments assumed by individual Members.  Core provisions relate to:
market access (Article XVI), national treatment (Article XVII), and additional commitments(Article XVIII).  The state of the economy and the specificities of the financial sector in each LDC
will determine not only which sectors are included for liberalization in the country's schedule, but also
what sort of limitations the country inscribes in its schedule under these three core provisions.  The
developmental implications of commitments made must be carefully examined by LDC governmentsWT/GC/W/251
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within the context of possible costs and benefits of financial sector liberalization, with a special
attention to the concerns of small and medium scal e enterprises, as well as of the rural population.
Proposals:
• Coordinate financial sector liberalization with other macroeconomic policies.
• Submit country schedules that incorporate limitations designed to ensure a smooth
transition in the process of financial sector liberalization.
C. Telecommunications services
36. Telecommunications services are critical in enhancing efficiency in LDCs' traditional exports
sectors.  They also facilitate the provisions of new tradeable services such as electronic commerce anddata processing.
Proposals:
• Inscribe in WTO Agreements as a contractual undertaking the provision of technical
assistance in the area of personnel training, of telecommunications infrastructure, and
the drafting of legislation for WTO compatibility.
• Progressive liberalization in this sector should be undertaken so as to support the
development objectives of LDCs, particularly those of small and LDCs.  It should
also aim at domestic regulatory reform and at fulfilling the principle of "universalservice".
D. Movement of natural persons
37. To provide symmetry in the treatment of intern ationally mobile factors of production: capital
and labour.
Proposals:
• Identify the particular categories of services in which they have a comparative
advantage under this mode of supply of services.
• Identify all those areas where Members have failed to comply with the terms of
Article IV.3, which stipulates that they should take into account "the serious difficulty
of the least-developed countries in accepting negotiated specific commitments in
view of their special economic situation and their development, trade and financial
needs".
• Collate concrete cases of non-transparent and discretionary measures applied to this
mode of service supply.
• Incorporate specific provisions in the GATS to correct the imbalance in the mobility
of labour in relation to capital in liberalizing trade in services.
• Improve transparency and predictability in the administration of visa regimes, work
permits, licences, the recognition of professional qualifications and other entry
requirements.WT/GC/W/251
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III. TRIPS
Implementation
38. LDCs are in the process of taking the necessary steps to prepare for compliance with the
provisions of the TRIPs Agreement.  Given the need for complex changes in domestic legislation and
the requirements of new legislation and institutional and administrative strengthening compounded bythe serious shortage of the relevant expertise, these tasks cannot be accomplished without significant
increases in technical assistance and extension of the transitional period.
Proposals:
• Under Article 67, developed countries should provide specific and practical
modalities for the fulfilment of their obligat ion with respect to providing technical
assistance.
• Request the operationalization of Article 66.2 through specific measures by
developed countries.
Built-in agenda
Proposals:
• Under the review of Article 27.3:
There should be a formal clarification that naturally occurring plants,
animals, the parts of plants and animals, including the gene sequence andessentially biological processes for the production of plants, animals and their
parts, must not be granted patents.
39. A provision should be incorporated to the effect that patents must not be granted without the
prior consent of the country of origin of products referred to in the paragraph above.  Also patents
inconsistent with Article 15 of the Conven tion on Bio-Diversity must not be granted.
40. Members should retain the flexibility to develop "sui generis" protection regimes suited to the
seed supply systems of each country.
• In the context of Article 41, there should be a provision authorizing Members to use
automatic compulsory licensing for essential drugs in the interest of their supply at
reasonable prices in their countries.
• With regard to the dispute settlement system, the transitional period applicable to
non-violation complaints should be extended
• Current work in the relevant international organizations in the area of folklore should
lead to its protection for LDCs within a multilateral framework.
IV. TRIMs
41. Due to institutional weaknesses, administrative and human resources capacity constraints,
very few LDCs have been able to meet the notification requirements.  The TRIMs continue to be
important policy tool for strengthening their production and export supply base necessary to take fulladvantage of market access concessions and preferential schemes made available to them by their
trading partners.  In this regard, local content requirements are particularly important.WT/GC/W/251
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Proposal:
• An open-ended extension of the transitional period should be granted to provide those
countries that have not yet fulfilled their notification requirements with another
opportunity to notify existing TRIMs and to continue to apply them as long as they
remain in the category of LDCs.
V. Trade and investment
42. The built-in agenda includes the obligation to consider whether the TRIMs Agreement should
be complemented with provisions on investment policy.  A Working Group was established at the
Singapore Ministerial Conference to examine the relationship between trade and investment.  That
group has yet to complete its work and was granted further time by the General Council.
Proposal:
• Consider carefully the expected recommendations of the Working Group to the
General Council.
VI. Trade and competition policy
43. The impact of competition policy can be unpredictable.  Its benefits are more likely to be
realized in the context of sufficient supply capacity.  Prevalence of market imperfections in LDCs, in
particular with reference to market entry and exit, and supply-side constraints would make it difficult
for LDCs to enjoy its benefits and ensure that it  plays a positive role in their development.  The
Working Group established by the Singapore Ministerial Conference has initiated an educational
process on competition policy.  That Group has yet to complete its work.
Proposal:
• Consider carefully the expected recommendations of the Working Group to the
General Council.
VII. Transparency in government procurement
44. Transformation of the plurilateral agreement on government procurement into a multilateral
agreement would entail an onerous burden for LDCs.  The issue of Transparency in Government
Procurement was deliberated during the Singapore Ministerial Conference, and work is under way in
WTO.
Proposal:
• Pursue the work mandated in paragraph 21 of the Singapore Ministerial Declaration.
VIII.  Labour standards
45. The Singapore Ministerial Declaration confirmed that ILO is the competent body to set and
deal with all issues relating to labour standards.  Serious concerns still remain regarding direct orindirect attempts to place that issue on the agenda of WTO.WT/GC/W/251
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Proposal:
• Reiterate the position agreed by consensus in paragraph 4 of the Singapore Ministerial
Declaration.
Section C
Accession to WTO
46. Of the 48 LDCs, 29 are WTO Members and nine  are observers, of which six are in the
process of accession (Cambodia, Lao Peoples' De mocratic Republic, Nepal, Sudan, Samoa, and
Vanuatu).  Thus for as many as 13 LDCs, the que stion of becoming WTO Members and beginning the
accession process will have to be addressed sooner or later.  The first step of integrating LDCs in the
global economy and the international trading system is  their institutional integration in this system.
This should be among the first steps to be undertaken to stem and reverse the marginalization of theLDCs.
Proposals:
(i) The least-developed countries status should be automatically granted at the first
Working Party meeting and should be specifically referred to in the report of the
Working Party ;
(ii) The forthcoming new round of the multilateral trade negotiations should not divert
attention from the need for a streamlined and accelerated accession process;
(iii) The peculiar situation of LDCs calls for the establishment of a fast-track approach for
accession, of no more than one year from the date of the submission of the Trade
Memoranda, with a maximum of two Working Party meetings, which ever is earlier
for the completion of the accession process of the LDCs;
(iv) In the process of accession, LDCs should not be called upon to assume obligations or
commitments that go beyond what is applicable to WTO LDC Members.
(v) Special and Differential treatment provisions should be automatically granted to
acceding LDCs for the same transitional period as stipulated in the respective
agreement for LDCs, counting from the date of accession;
(vi) No commitments and obligations should be sought from acceding LDCs on issues
which are not covered by the MTAs or going beyond them both in the context of
WTO accession and bilateral trade negotiations between an acceding LDC and a
WTO Member;
(vii) No commitments and obligations should be sought from an acceding LDC as a
condition for its accession, on membership in the Plurilateral Trade Agreements andacceptance of optional sectoral market access initiatives or other optional legal
instruments of the GATT 1994;
(viii) Market access negotiations for acceding LDCs should be simplified by agreeing on
specific minimal targets for them in industrial tariffs, agricultural tariffs and services
sectors.  These should broadly correspond to the actual commitments by WTO LDCMembers;WT/GC/W/251
Page 15
(ix) The least-developed countries seeking accession to WTO require technical assistance
to strengthen their negotiating capacity a nd to enhance their efforts to implement
domestic legislative and economic policies compatible with WTO Agreements.  They
also need support to enable them to have periodical consultations and exchange
experiences on the accession process.  A "Special Window" should be established inthe Trust Fund for LDCs, administered by UNCTAD, for this purpose.  LDCs'
development partners, both bilateral and multilateral are invited to make generous
contribution to the Trust Fund for the above purpose.
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