WORLD TRADE WT/LDC/HL/16
24October 1997
ORGANIZATION(97-4674)
High-Level Meeting onIntegrated Initiatives for
Least-Developed Countries 'Trade Development
REPORT AND RECOMMENDATIONS FROM THE JOINT WTO/UNCTAD
NGO SYMPOSIUM ONTRADE-RELATED ISSUES AFFECTING
LEAST-DEVELOPED COUNTRIESWT/LDC/HL/16
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CIVIL SOCIETY RECOMMENDATIONS TOTHE HIGH-LEVEL MEETING
ONINTEGRATED INITIATIVES FOR
LEAST-DEVELOPED COUNTRIES ’TRADE DEVELOPMENT
Geneva, October, 1997
PREAMBLE
1. Meeting inGeneva on25-26 September 1997, attheinvitation ofthesecretariats ofWTO and
UNCTAD, we,theparticipating non-governmental organizations (NGOs) listed below, submit forthe
consideration oftheHigh Level Meeting (HLM):
- Ourconcern regarding current trends ofincreasing poverty inthe48leastdeveloped countries
andtheirprogressive marginalization fromtheworld trade system. These countries represent
12percentoftheworld ’speople butlessthanhalfofonepercent ofworld trade. Moreover,
thesituation ofgroups ofpeople -particularly women -within these countries increasingly
reflects unacceptable patterns ofregression.
- Ourconcern about therealdecline ofODA inthecontext inwhich ODA contributes two-thirds
oftotalinvestment flows intoLDCs, despite commitments bygovernments toincrease ODA
funds, most notably asareiterated resolution attheglobal summits since UNCED inRio
in1992.
- Wewelcome thepledge ofWTO members tofullyimplement theIntegrated PlanofAction
adopted inSingapore andhopetheunique collaboration between WTO andUNCTAD now
commenced willbecontinued.
- Wewelcome theresolution ofmember countries toholdtheHLM andtheresponse ofWTO,
UNCTAD, theother participating agencies aswellasthedonor community tobetter define,
coordinateandundertakeactiontoreversethismarginalization,increasingpovertyandregression
trends.
- Weappreciate theopportunity tocontribute asNGOs tothisprocess andwelcome these first
steps toinvolve us.Inthissame spirit, wehopetobeinvited tocontribute tothisprocess at
thenational levelaswell.Wefirmly believe thatenhanced NGO participation willleadtomore
democraticandaccountabledecision-makingandmoresuccessfultradeandinvestmentstrategies.
- Stressing thatinternational trade andforeign direct investment arenotendsinthemselves but
means toattain sustainable development, withpoverty eradication asakeypriority, weurge
governments andthesixparticipating agencies totakeupon themselves toimplement the
following.WT/LDC/HL/16
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RECOMMENDATIONS
OnCapacity toTrade
2. Technical assistance fortradedevelopment ofleastdeveloped countries mustrespect thenational
development priorities oftherecipient country inpromoting thedomestic economy andengaging
international trade. Itshould respond tothecountry ’sownassessment ofdevelopment andtradeneeds
andmust bedesigned totarget allrelevant actors inthedevelopment process, including thenon-
governmental andbusiness communities. Thedelivery oftechnical assistance should follow, inallcases,
generally agreed international guidelines, suchasthose developed within theDAC. Moreover, we
recommend:
3. ThattradedevelopmentprogrammesundertakenbyITC,theWorldBank,UNDPandUNCTAD
focusonenablingsmallandmediumenterprises(SMEs),cooperativesandmicro-enterprisesandregional
capacities through thecreation, addition andimprovement of:
(a) Extension services providing advice, information andcooperation services inbusiness,
agriculture andother critical sectors fordomestic andinternational production. This
includes capacity tomeetquality andquantity standards, education inmanagement and
management practices andenterprise development, aswellaseconomic literacy.
(b) Micro-credit institutions ;while thelocalnature ofthisservice, (often NGO-provided)
isapositive contributing factor, agencies areurged toprovide micro-lenders with
adequate information andmanagement assistance andotherwise addtotheircapacity
toserve SMEs.
(c) Training andeducation thatfocuses onbuilding local knowledge beyond thelevels
ofgovernment andcivilservice tocivilsociety institutions, especially farmers and
women ’sassociations whose efforts underpin oursocieties andwhose livelihoods are
often mostadversely impacted bytrade liberalization. Emphasis should begranted to
product development, technology transfer, development ofappropriate technology,
andknowledge oftrade rules andprocesses.
4. Given thattheWTO ’sfunction isnotlimited totheimplementation oftheagreements butalso
includes rule-making; dispute resolution; andmultilateral policy review, assessment andorientation,
(a) theWTO secretariat, inassociation withUNCTAD andwiththesupport ofUNDP,
should develop integrated capacity building programmes thatfocus onenabling LDCs
to:
(i) effectively participate inallmultilateral trade negotiations;
(ii) make useoftheWTO dispute settlement mechanism;
(iii) realistically participate inpolicy-setting andpolicy review.
(b) governments arerequested tomandate theWTO secretariat to:
(i) undertake analysis oftheeffect oftheimplementation oftheTRIPs Agreement
onLDCs, withparticular attention tofoodsecurity. Thisanalytical work must
involve NGOs, thebusiness community andother immediate stakeholders and
formulate recommendations totheappropriate WTO bodies astoways andWT/LDC/HL/16
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means tobetter tackle anynegative effects oftheTRIPs Agreement onLDCs ’
development.
(ii) provide, incoordination with UNDP, theWorld Bank andUNCTAD,
immediate assistance toLeast Developed countries fortheir effective
participation inboth, theupcoming:
- revision ofArticle 27.3(b) oftheTRIPs Agreement, and
- definition ofnegotiation mandates fortheagricultural trade
liberalization round settobegin in1999;
(iii) undertake theidentification ofareas where anti-competitive andrestrictive
business practices affect international trade incommodities. TheWTO
secretariat, building onUNCTAD ’slongexperience inthisfield, should make
recommendations tothe1998WTO Ministerial Meeting onways todealwith
theabove.
(iv) elaborate aproposal forestablishment ofaprocess ofreview, reporting tothe
General Council, tomonitor effective implementation oftheSingapore
recommendations andtheMarrakesh decision concerning negative effects of
theagricultural reform programme onLDC andnetfood-importing countries.
Thisprocess ofreview should involve theFAO, UNCTAD andtheSecretariat
oftheConvention onBiodiversity (CBD) andfocus, interalia,on:
- foodavailability(production,foodimportcapacity,reliabilityofimport
supplies, andfood aid); stability (domestic andinternational) and
access.
- assessment ofpossible impacts oftrade ingenetically modified
organisms (GMOs) andgenetically modified foods, particularly on
domestic seedandfoodmarkets; and,balance ofpayments andtrade
balance.
(v) incorporate gender awareness andsensitivity criteria inanalyzing theeffects
oftradeinLDCs, inproviding gender-disaggregated andother basicdata,and
inperforming trade policy analysis andreview.
5. Governments arerequested tosecure thatUNCTAD andITC, withthesupport ofUNDP:
(a) establish programmes tobuild andsupport in-country capacity toforecast, evaluate
andmonitor theeffect oftradepolicy andagreements onsocial welfare anddevelopment
which isfundamental toassessing theimpacts oftradeatthenational andsub-national
levels. Basic datawhich iseasily accessible isanindispensable toolinassisting non-
governmental institutions toperform analysis inareas thatareoften toodifficult or
tooexpensive forgovernments tosupport.
(b) establish programmes ofassistance toenable LDCs tosetuporstrengthen national
standardization andnormalization bodies;
(c) develop programmes thatrapidly build capacity forLDCs toproficiently participate
intheinternational definition ofnorms andstandards;WT/LDC/HL/16
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(d) promote andtechnically support in-country programmes toassist exporters atalllevels
butwithparticular attention tosmall producers, tomeetthose standards;
(e) recommend toappropriate bodies ways andmeans tomake information onnorms and
standards andrelated processes accessible toLDCs.
6. Thatdeveloped country governments support “fairtrade”enterprises andschemes (such as
theMaxHavelaar labelinSwitzerland) forthepromotion ofexports fromsmall producers inLDCs,
through, interalia,theprovision ofseedcapital andthepromotion ofthese initiatives.
7. Better coordination isneeded toensure thatWorld Bank andIMFcountry programmes donot
hinder LDCs ’competitive participation ininternational trade negotiations andinstead reinforce the
possibility ofsuchparticipation. TheWorld BankandIMF, withtheassistance oftheWTO secretariat,
arecalled todevelop guidelines tothiseffect andinsodoing, consult non-governmental andother
civilsociety expertise.
Market Access andTrade Rules
8. WTO members should implement bythetimeofthe1998 WTO Ministerial Meeting theso
called “Ruggiero Initiative ”onzerotariffs forimports from LDCs. Weurgedeveloped country
governments oftraditional export markets forLDC products toundertake thecomprehensive
implementation oftheinitiative andinlightofthegrowing significance ofothermarkets forLDCexports
(asevidenced indocument LDC/HL/3), callonallother developed countries aswellasongovernments
ofthelargest developing country economies todolikewise. Insodoing, countries should givepriority
totheearliest elimination oftariff escalation.
9. WecallonWTO members toeffectively facilitate theprocess, including granting ofgeneral
waivers when needed, toallow developing countries togrant preferential treatment toLDCs, inthe
context oftheGlobal System ofTrade Preferences (GSTP) orotherwise, andthusstrengthen capacity
forSouth-South andregional trade. Inthissame context, wealsocallonWTO members tocommit
attheHLM tothegranting ofawaiver totheenhanced Lome Vpreferential scheme forACPcountries.
10. Given theimportance ofneighbouring economies asmarkets forLDC exports, theWTO
Secretariat incooperation withUNCTAD should identify major market barriers, bothtariffandNTBs,
forLDC exports intothose markets.
11. Wecallongovernments tomandate theWTO secretariat to:
(a) identifyopportunitiesforimprovementandsimplificationofRulesofOrigin,particularly
inmajor markets, inorder tofacilitate imports from LDCs.
(b) based onanalysis undertaken incooperation withUNCTAD, theWorld BankandFAO,
present tothe1998WTO Ministerial Meeting options totackle theimpact ofEUand
USexports ofsubsidized agricultural products onLDCs ’:
(i) development andfoodsecurity; and
(ii) possibilities ofexporting agricultural products;
(c) elaborate, inacoordinated process involving theFAO, theWHO andtheSecretariat
oftheCBD, proposals forarule-based framework toaddress theimpact oftrade in
genetically modified organisms (GMOs) onLDCs withparticular attention tofoodWT/LDC/HL/16
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security; human health; biosafety andtheenvironment; andpestmanagement. Adequate
trade rules would provide fordisciplines toaddress ataminimum:
(i) potentialdampeningeffectsofthemandatorynatureofSPS/CodexAlimentarius
standards ontheCodex provision ofvoluntary guidelines andtechnical
assistance toLDCs onfoodsafety;
(ii) participation ofimmediate stakeholders inscientific review anddefinitions of
“soundscience”,“organic”standards,the“precautionaryprinciple”and“prior
informed consent ”.
12. Wecallfortheimmediate elimination ofremaining quantitative restrictions ontextiles, clothing
andagriculture forproducts originating inLDCs.
Investment
13. Stressing thatgood governance, respect forhuman rights andahealthy social andpolitical
environment isimperative fortheviability ofdomestic economies andtheirengagement ininternational
trade, wenotethatstrong markets needastrong stateandnational regulatory capacity. Further to
ourconcern ondeclining ODA stated inthePreamble above, wealsonotethatproductive investment
isanessential element ofanyeconomy andthatitspromotion, inparticular through in-country capital
accumulation (savings) isapriority which FDIshould complement. Given thesignificant roleofSMEs,
communityorganizations,women’scooperativesandmicroenterprisesinLDCdevelopment,FDIwhich
supports these mechanisms should bepromoted overother forms ofFDI. Inaddition, weoffer the
following recommendations fortechnical assistance andaconducive international enabling framework:
14. WTO Member countries withtheassistance oftheWTO andUNCTAD secretariats mustensure
thatLDCs arenotexcluded fromanyprocess intended toestablish multilateral rules forinvestment.
Furthermore, WTO members mustensure thatanysuchrulestakeintoaccount theparticular aspects
ofinvestmentinsmalldevelopingeconomies,anditscontributiontosustainabilityandpovertyalleviation.
15. Anymultilateral agreement oninvestment mustbe“development-friendly ”,supportive ofcore
labor standards andcoherent withmultilateral environmental agreements.
16. Given thehighly competitive international investment environment, thefunding toattract
investment cannot come fromLDCs alone butshould beprovided bydeveloped countries, forinstance
throughdirectfinancialincentivesandtaxcreditstoattractFDIinLDCs.Ingeneral,developedcountries
andlargedeveloping economies should enhance programmes thatprovide incentives forFDIinLDCs.
17. Investment needs strong human resources andthuseducation andcapacity building needto
beprioritized intechnical assistance programmes resulting from thisHLM; IMFandWBstructural
adjustment programmes should alsoaddress thisneed.
18. TheHLM should mandate theagencies toestablish apermanent forum forexchange between
LDCs representatives andforeign investors.
19. Investment ininfrastructure development inLDCs cannot beleftonlytothedomestic or
international private sector. Itneeds considerable support fromexternal sources offinance other than
FDI.
20. Domestic investment canbemorestable andefficient thanFDIatpoverty eradication. Therefore
support todomestic capital accumulation andinvestment schemes should beprioritized, forinstanceWT/LDC/HL/16
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through loanguarantees andtargeting oflocal pension funds toprovide collateral inthiseffort.
International portfolio investment should alsobedirected atassisting inthisaim.
21. UNCTAD, withthesupport oftheWorld Bank, should establish aprogramme tobuildresearch
andmonitoring capacity inLDCs toengage inimpact assessment ofFDIontheireconomies. This
could befacilitated bythesupport orcreation ofregional research centers anddrawing onexisting
civilsociety capacity.
RoleofNGOs
22. NGOsandgovernmentsshareacommonpublicservicemissionbutdifferentiatedresponsibilities
andabilities. NGOs haveadistinctive roleinbuilding tradecapacity asaresult oftheirlong-standing
operationalexperienceatthegrassrootslevel.Likegovernments,NGOshaveasubstantialandlegitimate
roletoplayinensuring thatthebenefits andcosts oftrade liberalization andforeign investment are
equitably distributed. Asrecognized representatives ofcivilsociety, weNGOs sincerely wishto
contribute constructively totheinternational traderegime inorder topromote thewelfare ofourpeople
andournations. Wepossess deepexpertise andcommitment inourmissions which cancontribute
totheproductive growth ofinternational trade inaccordance withdevelopment priorities through our
ability toadvise andassist inthedesign anddelivery ofservices tobothcommunities andgovernments.
Specifically, werecommend:
23. thattheHLMencourageandenableLDCgovernmentstotakeadvantageofthespecialexperience
andtechnical expertise NGOs havegathered inactivities ranging frompursuit oftrade initiatives, to
industry andmarket analysis, todevelopment programme design andprovision. Specifically NGOs
can:
(a) assistinnationalandinternationaltradeprocessesinsupplementinggovernmentcapacity
toactively participate intheWTO andinternational trade fora;
(b) assist ingathering anddisseminating information andintelligence which mayhelp
alleviate thelackofresources faced bymany governments;
(c) provide acosteffective andempowering process ofhuman resource development.
24. ThattheWTO andtheother fiveinternational agencies involved intheHLM make better use
ofNGOs ’special competence.
25. Thatnational governments include andconsult withNGOs aspartoftheirperiodic WTO Trade
Policy Reviews.
26. ThattheWTO andtheother participating agencies make useofNGOs tomore effectively
disseminate information.
27. ThatNGOs should havearoleinmonitoring theeffects ofFDIinvulnerable small economies.
28. Thatnational governments support Secretary General Ricupuro ’sinitiative tofurther involve
NGOs, including business representatives, inthework ofUNCTAD; andthattheysupport initiatives
which assist NGOs inunderstanding andconstructively interacting withtrade policy making bodies
andmultilateral trade institutions.WT/LDC/HL/16
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FOLLOW-UP
29. Asystematic framework offollow-up should besetupbytheHLM, including acommitment
tomeetperiodically, forinstance, every twoyears. Inorder tomake anyactions resulting from this
HLM effective, thefuture HLM agenda should beexpanded tolook attheother aspects of
macroeconomic management thathinder LDCs development andparticipation intheglobal economy,
suchascommodity prices, debt, agricultural imports andthelike.
30. Coordination among thesixagencies involved intheHLM should becontinued withastanding
involvement ofNGOs asobservers andcontributors ofinformation, capacity andfieldexperience.
31. Weformally request theChairman oftheHLM topresent theabove recommendations tothe
meeting.
ATTACHMENTS
Final ListofParticipants.
Listofpapers submitted tothesymposium. Papers canbeobtained fromtheWTO Secretariat, External
Relations Division, upon request.WT/LDC/HL/16
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FINAL LIST OFPARTICIPANTS
NAME OFREPRESENTATIVE ABBREVIATION COUNTRY
Mr.Martin LIDEGAARD EUROSTEP BELGIUM
MsJanice FØRDE ICDA BELGIUM
Mr.John KRAUS ICC FRANCE
M.Antoine deRAVIGNAN SOLAGRAL FRANCE
Mr.H.C. GOLCHHA WASME INDIA
Mr.Christophe BELLMANN
Mr.Richard GERSTER
Mr.Migues BAUMANNSWISSAID SWITZERLAND
Mr.B.RajBHANDARI GLOBAL TRADERS
CONFERENCESWITZERLAND
Mr.Ricardo MELENDEZ-ORTIZ
Mr.Andrew CROSBY
MsMaud JOHANSSON, FORUM SYD
Mr.Klaus PEIPEL, MISEREOR
Mr.Mark HALLE, IUCN
MsMyriam VANDER STICHELE, TNI
MsMariama WILLIAMS, WIDE
Mr.Charles ARDEN-CLARKE, WWFICTSD SWITZERLAND
MsCaroline LeQUESNE OXFAM UNITED KINGDOM
Mr.Peter MADDEN CHRISTIAN AID UNITED KINGDOM
MsKristin DAWKINS IATP USA
M.Maximilien daSILVA ASED BENIN
Mrs. Sylvie KABORE PRODIA BURKINA FASO
Mr.Pierre KANIKA CNONGD DEMOCRATIC
REPUBLIC OFTHE
CONGO
Mr.Ismaël DAHER AMITERD DJIBOUTI
Mr.Laeke M.DEMESSIE RADEV ETHIOPIA
MsMariama ASHCROFT TANGO THE GAMBIA
Mme. Charlotte KARIBUHOYE TINIGUENA GUINEA BISSAU
Mr.Panoël RAKOTOVAO APEM MADAGASCAR
Mr.IssaSISSOUMA CCA-ONG MALI
Mr.Diallo HOUSSEYNE WORLD VISION INT'L MAURITANIA
Mr.Sunil MANANDHAR SEWA NEPAL
MsMary RUSIMBI TANGO TANZANIA
Mr.David P.KALETE DENIVA UGANDAWT/LDC/HL/16
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CHECKLIST OFPAPERS PRESENTED ATTHE SYMPOSIUM
1. Encourager l'investissement danslespayslesmoins avancés: exemple duBurkina Faso,
Promotion duDéveloppement Industriel-Artisanal etAgricole (PRODIA-AC), Burkina Faso,
Mme Kabore Sylvie, Conseiller desAffaires Economiques, Administrateur dePRODIA, (French and
English).
2. Développer lacapacité d'échanges danslespayslesmoins avancés, Centre deDocumentation
d'Information etdeFormation pour leDéveloppement (CEDIFOD), République Centrafricaine.
M.Marc Karangaze, Président/Fondateur (French andEnglish).
3. Promotion ofInvestment inLeast Developed Countries withSpecial Reference toNepal World
Association forSmall andMedium Enterprises (WASME), Mr.Hulas Chand Golcha, Immediate Past
Président. (Summary English andFrench, Paper inEnglish only).
4. Encourager l'investissement danslespayslesmoins avancés, Madagascar, Association pour
laPromotion del'Entreprise àMadagascar (APEM), M.P.Rakatovao, (French andEnglish).
5. Encouragerl'investissementdanslespayslesmoinsavancés,ComitédeCoordinationdesActions
desONG auMali(CCA-ONG), M.IssaSissouma, LeTrésorier Général. (French andEnglish).
6. Encourager l'investissement danslespayslesmoins avancés, World Vision International.
Mauritanie, M.Diallo Housseyne, Training Coordinator, (French andEnglish).
7. Building theCapacity toTrade, Swiss Coalition ofDevelopment Organisations,
M.Christophe Bellmann, Coordinator forDevelopment Policy, (English andFrench).
8. Prerequisites ofEnhanced Participation ofLeast Developed Countries inGlobal Trade, Global
Traders Conference, Switzerland, Mr.B.RajBhandari. Chief Consultant. (English only).
9. Rapport surledéveloppement delacapacité d'échanges despayslesmoins avancés, Fédération
desOrganisations NonGouvernementales auTogo (FONGTO), (French andEnglish).
10. Building theCapacity toTrade inLeast Developed Countries. Oxfam, United Kingdom.
Ms.Caroline LeQuesne, Policy Adviser, Trade andEnvironment, (English andFrench).
11. Building the'capacity totrade'through trade-related policy reform towards revising the
Agreement onAgriculture andtheAgreement onTrade-Related Intellectual Property Rights, Institute
forAgriculture andTrade Policy, United States, Ms.Kristin Dawkins, Director, Trade andAgriculture,
(English andFrench).
12. Building theCapacity toTrade inLeast Developed Countries. DENIVA, Uganda.
Mr.David P.Kalete. (English only).
13. Développer lacapacité d'échanges danslespayslesmoins avancés. ASED, République du
Bénin. M.Maximilien daSilva. (French only).WT/LDC/HL/16
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14. Lesmesures pourrésoudre lesobstacles àl'accès auxmarchés pourlesPMA, àl'exemple
des petits producteurs agricoles delaGuinée-Bissau. TINIGUENA, Guinée-Bissau.
Mme. Charlotte Karibuhoye. (French only).