RESTRICTED
WORLD TRADE WT/COMTD/M/7*
19August 1996
ORGANIZATION(96-3203)
Committee onTrade andDevelopment
Seventh (Special) Session
NOTE ONTHE MEETING OF18JUNE 1996
Chairman: Mr.Nacer Benjelloun-Touimi (Morocco)
A. Adoption oftheAgenda
1. TheChairman welcomed theSecretary-General ofUnited Nations Conference onTrade and
Development (UNCTAD), Mr.Rubens Ricupero, theExecutive Director oftheInternational Trade
Centre (ITC), Mr.Denis Bélisle, theDirector-General oftheWorld Trade Organization (WTO),
Mr.Renato Ruggiero andtheChairman ofboththeWTO 'sGeneral Council andUNCTAD 'sTrade
andDevelopment Board, Ambassador William Rossier andsaidthathewasconfident thattheyshared
hisviews ontheneedforincreased coordination andcooperation between institutions having amandate
intrade anddevelopment. HeandtheMembers oftheCommittee onTrade andDevelopment (CTD)
looked forward tohearing theirviews onthissubject andothermatters related totradeanddevelopment.
2. TheChairman informed Members that,pursuant toarequest made bysome Members atthe
Sixth Session, theSecretariat hadmade available intheroom apaper which detailed therespective
functions oftheWTO, UNCTAD andITCasregards theprovision oftechnical cooperation. Henoted
thatthispaper wasoneofthereference documents ofUNCTAD IX.
3. TheChairman proposed that,since thequestion ofobserver status forintergovernmental
organizations hadnotyetbeenresolved intheGeneral Council, theCTD follow itsadhocprocedures
andinvite toitsEighth Session thesame organizations which wereinvited tothatday'smeeting. The
Committee soagreed.
4. TheCommittee adopted theagenda ascontained indocument WTO/AIR/354. TheChairman
indicated thathewould bediscussing theorganization ofthenextmeeting under agenda item
"Other Business".
B. Trade andDevelopment Activities ofIntergovernmental Organizations pursuant
toUNCTAD IX
5. TheChairman recalled thattheterms ofreference oftheCTD mandated itto"serve asafocal
point forconsideration andcoordination ofwork ondevelopment intheWTO, anditsrelationship
todevelopment-related activities inother multilateral agencies". Henoted inthiscontext that,at
UNCTAD IX,governments andinstitutions hadshown their commitment todevelopment, which
underscored theperception thattradewasanengine ofgrowth anddevelopment andthat,hence, efforts
*Thisdocument replaces WT/COMTD/M/7 issued on13August 1996.WT/COMTD/M/7
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toincrease theparticipation ofdeveloping countries inthemultilateral trading system remained atop
priority.
6. TheSecretary-GeneralofUNCTADsaidthathislong-timeexperiencewithdevelopment-related
activities inmultilateral institutions included hisChairmanship oftheCTD oftheGATT. His
commitment todevelopment hadmade himacutely aware oftheneedforcooperation among therelevant
institutions withaviewtoincreasing synergies andtofurthering theinterests ofdeveloping countries
inamore effective way. Thatday'smeeting wasveryunique fromthatperspective, asithadbrought
together theheads ofsome oftheprincipal institutions withamandate intrade anddevelopment.
Development hadbeenatthecentre oftheagenda oftheinternational community formany years;
however, withtheincreasingly important roleplayed bydeveloping countries, ithadmoved toahigher
plane. Theincrease intheparticipation ofdeveloping countries intheglobal economy hadbeen
demonstrated frequently inrecent years, including during theUruguay Round negotiations. Developing
countries were atthetimethelocomotives oftheworld economy andcould becredited forhaving
played theirpartintherecovery ofindustrial countries; thesizeoftheimports ofthetenleading Asian
developing economies wascomparable tothatoftheUnited States, oroftheEuropean Communities.
Thesurge inimports inmany developing countries andtheliberalization oftheirtrade regimes had
hadseveral important ramifications. Offundamental importance wastheacknowledgement that
industrialized countries could notdictate global monetary andtradepolicies bythemselves, normanage
theglobal economy effectively without engaging developing countries inasustained dialogue. These
newdevelopments hadimplications forthework oforganizations suchasWTO, ITCandUNCTAD.
Theexistence oftheCTD stemmed from therecognition thattrade hadthepower tosettheprocess
ofdevelopment inmotion. Gone werethedayswhen "export pessimism" heldswayamong developing
countries; incontemporary times, theroleoftradeindevelopment hadbeenaccepted byalmost every
country. Integrating developing countries intothemultilateral trading system wasnolonger optional
either fordeveloping countries orfortheindustrialized countries. Thefortunes ofallcountries were
intertwined, andtheexpected benefits from integration easily outweighed theperceived costs.
7. Arecent World Bank report hadstressed theneed forsignificant policy adjustments in
industrialized countries aimed atcurbing fiscal deficits andbringing inflation under control. Itwas
onlythrough theadoption ofstructural reforms thatunemployment could bereduced inindustrial
countries. Further progress wasneeded inglobal trade liberalization. There wasariskthatthe
multilateral trading framework, based onabalance ofrights andobligations, would bechallenged by
protectionist pressures asresources moved outoflabour-intensive industries indeveloped countries.
Anotherseriouschallengewasposedbythelargedivergenceinperformanceamongdevelopingcountries.
Theissueofthemarginalization ofweaker countries fromthemainstream ofeconomic activity needed
tobeurgently addressed. Triggered bystructural problems, these countries wereunable tocompete
inaliberal trading environment, orinfluence thecurrent framework fortheconduct oftrading relations.
These challenges required developing countries tobeproperly equipped toenable themtoabsorb the
shocks thatwould flowfromreduced preferential margins. Developed countries should honour their
Uruguay Round commitments withrespect totheuseoftrade-restrictive remedies suchassafeguards,
anti-dumping andcountervailing measures. Theprovisions oftheMinisterial Decisions onMeasures
inFavour ofLeast-Developed Countries, andonMeasures Concerning thePossible Negative Effects
oftheReform Programme onLeast-Developed andNet-Food Importing Countries should befaithfully
implemented.
8. Thepaceoftrade-liberalizationindevelopingcountrieshadbeenimpressiveoverthelastdecade.
Thereform policies of70developing countries during thisperiod wasmatched byonlythreecountries
oftheOrganisation forEconomic Co-operation andDevelopment (OECD). However, tariff peaks
andtariffescalationstillimpededexportsfromdevelopingcountries.Whiledomesticcorrectivemeasures
indeveloping countries wereimperative, theseshould beaccompanied bytheadoption ofinternationally
supportive measures. Afavourable external environment wassinequanonforthesuccess ofdomesticWT/COMTD/M/7
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policies.Theimportancetotheglobaleconomyofoutwardlookingtradepoliciesofdevelopingcountries
could notbeoverstated. Such outward looking policies hadincreased intra-trade among developing
countries andhadprovided thenecessary boost totheglobal economy. Between 1985and1990, intra-
tradeamong developing countries increased by12percent;andtradewithOECD countries increased
by10percentduring thesame period. Developing countries wereatthetimeactive players; their
increased significance needed tobereflected intheirshare inthedecision-making process.
9. Thecompetence ofUNCTAD tolookattherelevant issues from adevelopment perspective
inaglobalizing andliberalizing world economy wasconfirmed attherecent UNCTAD IX,heldin
Midrand, South Africa. Theworkprogramme which wasadopted atthemeeting projected asupportive
roleforUNCTAD, which wasexpected touseitsexpertise toassist developing countries inincreasing
theirparticipation intheinternational trading system; instrengthening theircapacity intheservices
sector; inexamining therelevance ofcompetition legislation foreconomic development; inreviewing
thelinkbetween trade andenvironment from adevelopment perspective; andinreviewing thelinks
between foreign direct investment, trade, technology andeconomic development. UNCTAD 'smandate
wasextended toseektoenhance thecapacity ofcountries toimprove theirinvestment climate.
10. Mr.Ricupero drewparticular attention tothefuture work programme ofUNCTAD inthearea
ofinvestment. According tothemandate given toit,UNCTAD should identify andanalyze the
developmentimplicationsofissuesconnectedwithamultilateralframeworkoninvestment.Heindicated
thatUNCTAD waswilling torespond totherequest ofdeveloping countries thatapilotseminar be
organized withaviewtoencouraging theprivate sector toincrease investment flows tocountries which
were receiving trifling amounts.
11. Henoted thatexisting trade concepts andtrade instruments could loose some oftheirvalidity
duetoglobalization. Indrawing aparallel toUNCTAD IX,hesaidthattheforthcoming Singapore
Ministerial Conference should rethink thetasksahead, choose priorities andselect toolsforcooperation.
Ministers needed toaddress theimplications fordevelopment policies oftheextension ofmultilateral
trade disciplines tonon-trade areas.
12. TheUNCTAD IXConference hadreaffirmed UNCTAD 'sposition asthefocal point inthe
United Nations 'system fortheintegrated treatment ofdifferent elements oftheworld economy from
adevelopment perspective. Asanessential complement toitspolicy-oriented analytical work, UNCTAD
would strengthen itstechnical cooperation programme andgivepriority toassisting developing countries
intheirefforts todevelop andstrengthen theirinstitutional andhuman capacities. Experience hadshown
thatanexclusive reliance onimproving market access conditions wasnotenough; itwascommon
knowledge thatsome beneficiary countries wereunable tomake fulluseoftheirGeneralized System
ofPreferences benefits. Cooperation andcoordination withWTO andITCwasanimportant element
ofUNCTAD 'swork, andwasmanifested inthejointprogrammes established forthebenefit ofAfrica.
13. Heurged theDirector-General oftheWTO tobearinmind some oftheconcerns expressed
atUNCTAD IXaswellasdeveloping countries 'concerns withrespect totheSingapore agenda, at
theforthcoming G-7meeting inLyon.
14. TheExecutive-Director oftheITCsaidthatITC'ssolefieldofactivities consisted oftechnical
cooperation. After thirty-one years ofwork intrade promotion andexport development, andonthe
basis ofitsownsubstantial technical expertise andexperience, sixdistinct coreservices hadbeen
identified which responded tothepriority needs ofrecipient countries. Theguiding principle wasto
concentrate onthose areas where ITC'sexpertise could haveavisible cost-effective impact ontrade
development efforts. Thesixdistinct coreservices rendered torecipient countries wereasfollows:
(i)product andmarket development: identification ofnewmarketing opportunities incollaboration
with local exporters andassisting them toadapt their products tothemarket requirements;WT/COMTD/M/7
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(ii)development oftrade support services: aware thatproblems related topackaging ortoquality
assurance, legalaspects ofinternational trade, export financing andexport insurance needed specialized
skills which were unavailable locally, theITChaddesignated focal points intherecipient countries
andassisted themindeveloping suchcapacities; (iii)ensuring reliable business information: ITChad
identified appropriate sources ofinformation anddemonstrated howtheycould beusedintherecipient
countries; where information wasnotreadily available, ITC'smarket newsservice, usedinconjunction
withUNCTAD 'sTrade Points, could provide suchinformation toexporters andotherinterested parties;
(iv)human resource development: aseparate unitinITCtaught staffhowbesttotrainpeople andassist
them indeveloping newtraining tools. Theaimofthisservice wastoensure efficient foreign trade
operations based onrelevant knowledge andadequate skills; (v)international purchasing andsupply
management:ITChadadaptedspecialisedtechniquestoensurecost-effectiveprocurements.Thisservice
wasinhighdemand intherecipient countries; and(vi)analysis oftheneeds anddesign ofprogrammes
which would havemaximum impact onthetrade performance ofrecipient countries: some ofthe
programmes attempted tolinktrade policy andtrade promotion activities. Thespecialized expertize
oftheITCinthisareawasevident asitsservices werebeing increasingly demanded byawiderange
offirms andinstitutions. TheITCwascurrently helping theWorld Bank todraw upaprogramme
which would attempt tosolve some oftheproblems facing African countries.
15. Theprime focus forITCwasthebusiness community; overtheyears ithaddeveloped close
contacts withinstitutions suchastheExport Promotion Boards, theChambers ofCommerce, Exporters
Associations, Manufacturers Association andexporters whowished tousespecialized skills toimprove
theirservices. TheITCuseditscontacts withthebusiness community toensure thattoolswhich were
being developed wererelevant toexport activity, limiting itselftopractical action-oriented assistance.
Hebelieved thatinthisway, ITCmost usefully complemented thework done bytheWTO and
UNCTAD.
16. TheDirector-General oftheWTO thanked theSecretary-General ofUNCTAD forhisstrong
andclearpolitical message andshared hisviewthatpriority beplaced onastrong collaboration between
UNCTAD, ITCandWTO. Inthiscontext hewelcomed Mr.Bélisle 'sstatement ontheactivities of
theITC. Healsoagreed withtheviews expressed inrespect ofthegrowing importance ofdeveloping
countries, notonlyinterms oftheirparticipation intheWTO, butalsointheircontribution tothe
world economy andtothegrowth ofindustrialized countries. Interdependence wasgrowing andthe
threeinstitutions hadaresponsibility tosustain thisinterdependence andtostrengthen therelationship
between thedeveloping anddeveloped world soastoensure thecontinued dynamism oftheworld
economy. Hewasoftheview thaturgent action wasneeded toredress theproblems ofcountries
marginalized intheprocess ofglobalization. Every effort wasneeded toincorporate these countries
intothemainstream ofeconomic activity. Theparticipation oftheheads ofthevarious institutions
inthemeeting wasproof ofthegrowing importance ofdeveloping countries intheworld economy.
Itunderlined astrong willtocollaborate andthedetermination tofightthemarginalization oftheleast-
developed countries.
17. Henoted thattheWTO, contrary toUNCTAD andITC, wasaneworganization. Itwas
evolving withthemultilateral system andwithglobalization. Globalization haditsowndynamism.
Forinstance, information technology wasevolving, independent ofanyintervention bygovernments
orinstitutions; thesame wastrueforinvestment flows. They would continue todevelop at
unprecedentedrates,whetherornotthereweremultilateralagreementscoveringthesenewdevelopments.
However, intheabsence ofmultilateral disciplines, developments inthese sectors would depend only
ontheinterplay offorces where market power would bethedeciding factor. Ontheother hand, rules
anddisciplines, negotiated multilaterally intheWTO, would ensure thatthose developments would
occur inside aframework ofrulesanddisciplines. Evenintheabsence ofanyagreement oninvestment,
investment would continue todevelop. Forexample, according toUNCTAD 'sAnnual Investment
Report, shares ofdeveloped countries in1992amounted to65percent,in1993, 62percent,in1994,WT/COMTD/M/7
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58percentandin1992, itwentupto66percent. Those figures fordeveloping countries were, in1992,
32percent, in1993, 35percent, in1994, 39percentandin1995, itwent down to30percent.
Anagreement oninvestment intheWTO would, however, provide aninternational guarantee, especially
important forthedeveloping andtheleast-developed countries, which werecertainly theleastprivileged
interms offoreign investment. Amultilateral agreement oninvestment wasbound toencourage foreign
direct investment toleast-developed countries.
Thechoice wasbetween arules-based world economy andonebased onpower.
18. TheDirector-General sawhisinvitation totheG-7meeting asanacknowledgement thatthe
WTO hadarelevant message which should beheard. Hewould usethatoccasion tohighlight the
dilemma ofleast-developed countries which, duetostructural problems, werenotyetabletobenefit
from theprocess ofglobalization. Thetheme ofWTO 'sparticipation would bethequestion ofhow
marginalization oftheleast-developed countries could bereduced, andwhatcould possibly bedone
toenhance theirintegration intotheinternational trading system. Hewould basehisintervention on
thetwoMarrakesh Decisions infavour oftheleast-developed countries andonnet-food importing
countries andemphasise theneedforMembers tohonour theircommitments infavour ofleast-developed
countries interms ofincreasing access totheirmarkets andinterms oftechnical cooperation. Amajor
effort intheareaoftechnical cooperation wasneeded, withaviewtoassisting developing countries
toestablish andstrengthen theirinstitutional andhuman capacities.
19. TheWTO hadinitiated acollaboration withtheUNCTAD andITContechnical cooperation;
itwasintheprocess ofdeveloping relations withtheCommon Fund onCommodities withaviewto
assisting developing countries intheirefforts todiversify theirexport structures. Collaboration with
theWorld Bank could, hehoped, leadtotheuseofnewtechnologies toimprove andextend thereach
oftechnical cooperation. Hewashopeful thatthrough improved collaboration, amuch greater impact
could bemade withpresent resources.
20. Hestrongly encouraged inputs fromthedeveloping countries onwaystoenhance theintegration
oftheleast-developed countries intothemultilateral trading system. Heurged theCTDtocome forward
withanon-paper onthisissue, pursuant totheDecision onMeasures inFavour ofLeast-Developed
Countries, withaview toitsincorporation inthepreparatory process fortheSingapore Ministerial
Conference. TheCommittee 'sviews werenecessary inthisprocess. Healsoencouraged developing
countries tocome forward withinputs onanyotherissueforthepreparation oftheSingapore Ministerial.
Heconcluded bysaying thatwork intheWTO inthenextfewyears, which would oftenbeofatechnical
nature, would nonetheless beveryrelevant inshaping themould ofthenextcentury; itcalled for
maintaining andenhancing astrong relationship between developed anddeveloping nations.
21. TheChairman oftheGeneral Council oftheWTO saidthatitwould benoeasytask,after
thisshow ofcompetence fromtheSecretary-General ofUNCTAD, theExecutive Director oftheITC
andtheDirector-General oftheWTO, toputacross whatheconsidered torepresent something ofthe
views oftheMembers inthisdiscussion. Assomeone whoheldresponsibilities within boththeWTO
andUNCTAD andwhohadparticipated intheUNCTAD IXConference inMidrand, hewaswell
placedtonotethenewandrealcomplemenaritybetweenUNCTADandtheWTO.Thiscomplementarity
wasnolonger theoretical, ashadpreviously beenthecase-wishful thinking asitwere -butrather
atangible reality onwhich Members hadtobuild. TheITC,which haddonesome remarkable work
inrecent years, served asamodel forthis. Hethought thataspecial tribute totheExecutive Director
oftheITCandhisteamwasinplace fortheCentre 'sachievements. Hewasaware howdifficult the
taskwas,which made theachievements allthemore praiseworthy.
22. Ambassador Rossier concurred withthethreeprevious speakers thatthemeeting wassymbolic
fromthatpoint ofview, although itwasnecessary toepitomize thesymbol, something theChairman
hadachieved byconvening thatmeeting.WT/COMTD/M/7
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23. ComplementaritybetweentheOrganizationshadatthattimebecomearealitybecauseatMidrand
animportant measure hadbeentaken: theopenorlatent areasofconflict between thetwoOrganizations,
UNCTAD andWTO, adversely affecting theircapacity foraction andsynergy tothedetriment ofthe
Members, hadbeeneliminated. Theground hadcurrently beenprepared toenable ustoputintoeffect
thesubstantial synergies among thethree Organizations.
24. From thepoint ofviewoftheMembers, these synergies could andshould beputintoeffect
inatleastfourpriority areas. Firstofall,asynergy hadtobecreated among thethree Organizations
intheareaofinternational tradeingoods andservices andcommodity issues. AtMidrand, anessential
taskforUNCTAD hadbeendefined interms ofmaximizing thepositive impact ofglobalization and
liberalizationwithaviewtosustainabledevelopment,byfacilitatingtheeffectiveintegrationofdeveloping
countries intotheglobal economy, especially theleastdeveloped countries. Globalization wasa
recognized phenomenon andithadtobeexploited tomaximum effect forthebenefit ofdeveloping
countries. Acooperation approach hadtherefore tobedeveloped within theglobal economic andtrade
system, rather thananapproach thatwasmarginal oroutside thesystem. Inthisconnection, UNCTAD
hadbeengiven animportant roleinsupport ofdeveloping countries, support thatwasclearly linked
totheresults andimplementation oftheUruguay Round. Thesecond areainwhich synergy could
andhadtobeputintoeffect wastechnical cooperation. AtMidrand, UNCTAD 'stechnical cooperation
activities hadbeengrouped together inorder togivethem theprofile sought byMember States. It
wasagreed thattechnical cooperation priorities would bedictated bythepriorities inUNCTAD 'swork
programme soastoavoid theinconsistencies encountered inthepast. TheTrade andDevelopment
Boardwasassignedthetaskofdevelopingathree-yeartechnicalcooperationplan(anindicativethree-year
revolving programme). Thetaskhadthusnotbeenentrusted totheSecretariat buttotheBoard itself,
albeit withSecretariat assistance. Lastly, theBoard wasresponsible forongoing monitoring ofthese
technical cooperation activities. A"demand driven" rather thana"supply driven" approach totechnical
cooperation hadtherefore beenchosen, eventhough acertain balance hadundoubtedly tobemaintained.
Thisapproach wasnotdevoid ofinterest forWTO andhehadunderstood thattheChairman hadrecently
taken some extremely worthwhile initiatives inthisrespect. Thethirdareaforsynergy between the
twoOrganizations wasinvestment. UNCTAD hadbeengiven veryclear terms ofreference, which
could nodoubt helpWTO indealing withthesubject because theyincluded defining andanalysing
theconsequencesfordevelopmentofthepossibleformulationofamultilateralframeworkforinvestment.
Thissimple sentence, which wasnonetheless ofsubstantial importance, showed thatthiswasoneof
themain areas intheterms ofreference assigned toUNCTAD bytheMember States. There wasa
potential forcoordination andsynergy which WTO hadtoturntogood account. Lastly, there was
theareaofnewandemerging issues. UNCTAD could andhadtoprovide assistance inconsidering
these issues. There could besignificant synergy inthisareabetween WTO andUNCTAD, especially
inrelation toanalytical information.
25. Inhisview, thesefourareas ofcooperation werethemostimportant. There wereundoubtedly
others.TheeffortsmadebytheSecretariatswithregardtocoordinationoftechnicalcooperationactivities
were commendable. TheDirector-General andtheSecretary-General hadalready referred tothis.
From thepointofviewofMembers, however, onehadundoubtedly togofurther. Following Midrand,
looking ahead totheSingapore Conference andtheimplementation oftheUruguay Round, itwas
important thatcooperation among thethreeorganizations should bestrengthened bydirectly involving
Members indefining thiscooperation. Members hadtobuild ontheefforts andmeasures taken by
theexecutive heads oftheorganizations. They hadtofeelclosely involved, parties tothedialogue
among thethreemembers ofthefamily present atthatmeeting andinthecooperation efforts withother
international organizations, forexample, theWorld Bank andtheInternational Monetary Fund (IMF).
Thiswasessential withaviewtoensuring thatfunding wasmaintained andevenincreased. Hesuggested
thattheWTO hadtotrytodevelop thesame typeofmechanism asexisted inUNCTAD andITCwith
aviewtoinvolving Members closely indialogue andtechnical cooperation. Hewasoftheviewthat
theCTD wastheappropriate bodyforthis,asentiment which wasprobably shared byalarge numberWT/COMTD/M/7
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ofWTO Members. Ithadnottobeforgotten thatthecommitment ofMembers towards coordinated
technical assistance could innowaybecompared withthesituation afewyears ago. Thecurrent
political environment wasverydifferent butalsounfortunately thefinancial situation. Thisdevelopment
compels atotalcommitment toataskoftheutmost importance forworld trade andconsequently for
peace aswell.
26. TherepresentativeofSingaporeagreedwiththeDirector-GeneraloftheWTOonthesignificance
ofthatmeeting oftheCTD. Hecomplemented thevision oftheChairman tobring together theHeads
ofthethree Organizations. Themain responsibility oftheCommittee wasdevelopment, which was
alsoattheheart ofthework programme oftheorganizations present atthatmeeting. From that
perspective, thatday'smeeting could besaidtobeanhistoric event. Attheheart ofthenotion of
development wasthatofequity, which, inhisview, hadnotbeenemphasized intheWTO sofar.
Inthespirit ofglobalization andliberalization, theelement ofequity hadtobetaken intoaccount if
there were tobeabalance ofinterests among members oftheinternational community. Increased
cooperation between theWTO, UNCTAD, ITC,World Bank andtheIMFwould greatly benefit the
world economy, provided theconcepts ofdevelopment andequity were made integral parts oftheir
programmes. AshosttotheMinisterial Conference, hisgovernment expected asubstantial contribution
fromtheorganizations withaviewtoenabling Ministers toaddress issues relating tocapacity-building
anddevelopment inthecontext oftrade. Referring tothepaper circulated bytheITC,hestated that
thecharacterization oftheWTO asaplatform fornegotiations ofmultilateral trade rules and
commitments didnotfullytakeintoaccount theother functions oftheorganization. Asaninstitution,
theWTO wasalsoconcerned withtrade-related issues aswasevidenced bythisdiscussion inthe
Committee onways torespond tothechanging global economic environment.
27. Therepresentative oftheEuropean Communities joined inthanking theChairman 'ssuccessful
efforts togivetheCommittee ahigher political profile. Hisdelegation agreed thatpriority begiven
totheintegration ofdeveloping countries inthemultilateral trading system. Their active participation
intheprocess ofglobalization wasnecessary toovercome marginalization. Thesituation ofleast-
developed countries needed theattention oftheinternational community, which should intensify its
effortstoassisttheminachievingeconomicdevelopment.HeagreedwiththerepresentativeofSingapore
thatthemeeting wasunique, andnoted thewilloftheorganizations present towork together toachieve
common goals. Members werefaced withthechallenge tobring backintothemainstream those who
werebeing side-lined bytheprocess ofglobalization. While recognizing thatlessfinancial assistance
wasavailable, heobserved thatthesynergy ofavailable financial assistance andliberal trade policies
could leadtoeconomic development. Developing countries which hadachieved anenviable levelof
development should seektoincrease access totheirmarkets forthebenefit ofweaker developing
countries; anddeveloped countries should seektomaintain healthy andsocial policies offering apolitical
andlegalenvironment conducive torapid investment anddevelopment.
28. Therepresentative ofCanada saidthattheChairman 'sdynamic andimaginative leadership
hadbrought newvigour totheCommittee. Dwindling resources inthepresent global environment
hadimposed itsownlogic ofcloser cooperation among organizations. Thethoughtful interventions
oftheheads ofWTO, UNCTAD andITChaddisplayed thewilltoovercome theseconstraints through
effective cooperation, which would reduce oreliminate anyoverlap infunctions. Investment wasan
areawhere extensive cooperation between theinstitutions could yieldpositive results ifadvantage were
taken oftherespective fields ofexpertise oftheorganizations. Thestrong analytical skills ofUNCTAD
could bepaired withtheexperience oftheWTO innegotiating rules. Thecontribution ofalltherelevant
institutions would ensure abalanced multilateral agreement.
29. Therepresentative ofBangladesh, inwelcoming thecollaboration between WTO, ITCand
UNCTAD, expressed thehope thattheexpectations oftheleast-developed countries, which were
marginalized intheprocess ofglobalization, would befulfilled. Technical assistance alone would notWT/COMTD/M/7
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beenough; therewasnodearth ofideas, onlythelackofwill.Noting that,according tocertain reports,
thelevelofassistance fromthebiggest trading partners wasdeclining, hecalled foraction atthepolitical
level. Inthatcontext, helooked totheLyon G-7summit andtheSingapore Ministerial Conference
forapositive outcome.
30. Therepresentative oftheUnited States noted theimportance ofthatmeeting andwelcomed
theparticipationoftheheadsofthevariousorganizations.Hewascertainthattheleadership,pragmatism
andcreativity which Mr.Ricupero haddisplayed asheadofBrazil 'snegotiating teamintheUruguay
Round would beuseful inhiscapacity asSecretary-General ofUNCTAD. TheUnited States wasof
theviewthattherecurrently existed anunprecedented opportunity forcooperation among international
organizations withamandate intrade anddevelopment. Theinclusion inthemultilateral system of
newareas provided bothopportunities andchallenges fordeveloping countries, which should takethe
steps necessary toparticipate intheglobal economic system. There wasclearly aneedforassistance
tobeprovided tocountries which wereunable tomake useoftheoptions available. Hisauthorities
wereexpecting UNCTAD, afterthemeeting inMidrand, toimplement reforms aimed atnarrowing
itsscope, atincreasing transparency andcomplementarity andatimproving governance. Henoted
ITC'spragmatic approach ofmeeting selected needs ofdeveloping countries inareas ofitsinstitutional
strength. Focusing onrealistic programmes ofpractical benefit would enable taking advantage ofthe
respective fields ofexpertise ofeachorganization inthemostuseful way,forthebenefit ofdeveloping
countries. Therecent tri-partite arrangement ontechnical cooperation forAfrica illustrated the
determination ofthevarious organizations. Efforts should beintensified todevelop programmes which
bestsuited theneeds ofdeveloping countries. Herequested that,atanappropriate time, information
beprovided onthecooperation agreement between UNCTAD andtheWTO.
31. Therepresentative ofIndia thanked theChairman forhisinitiative inconvening thatspecial
meeting. TheCTD needed toconsider three items inthestatement made bytheSecretary-General
ofUNCTAD atafuture date. Thefirstwasthatliberalization efforts ofdeveloping countries had
surpassed those ofdeveloped countries. Thesecond concerned thedifficult external environment which
hadcontributed tothepoorperformance ofmany developing andleast-developed countries. Thethird
related tothemandate given toUNCTAD forstudying interalia,issues relating toinvestment. He
could notaccept theviews oftheDirector-General oftheWTO ontheneedtohaveamultilateral
agreement oninvestment. While fullyaccepting theprinciple ofthesuperiority ofarule-based system
overapower-based one,hecautioned against legitimacy inadvertently being given bytheWTO to
apower-based regime. Heagreed withtherepresentative ofSingapore thattheWTO should bebound
byprinciples ofequity, elsethere would notbeanyjustification fordrawing adistinction between
apower-based system andarules-based system. Thepaper circulated bytheITCpresented some useful
ideas, butitwasuptotheCTD todetermine itsownagenda.
32. Therepresentative ofMexico stated thatthemeeting wasanhistoric event which ushered the
CTD intoanewandchallenging phase. Thanking theChairman forhaving brought together people
ofknowledge andvision, hesawthegains thatcould bereaped from anextensive cooperation and
coordination between theorganizations, especially ifeach concentrated onitsareaofexpertise.
Recognizing thedynamics ofachanging global environment, hesaidthatthecontractual approach
oftheWTO, theintegrated andinterdisciplinary development work ofUNCTAD, andthetechnical
cooperationworkoftheITC,whichfocusedprimarilyonenterprises,werealloffundamentalimportance
inthequest tointegrate developing countries, particularly theleast-developed ones, intothemultilateral
trading system.
33. Therepresentative ofKorea saidthattheinformative andinsighted interventions ofthelead
speakers would behelpful insetting thefuture direction ofthework inthisCommittee. Hisdelegation
fullysupportedcooperationbetweenWTO,UNCTADandITC,especiallywheretheyproducedtangible
results suchasthejointprogramme ontechnical cooperation forAfrica. Pooling resources hadmanyWT/COMTD/M/7
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spin-offs including thepossibility ofattracting additional funds from donors. Hisauthorities were
committed topromoting cooperation among international organizations.
34. Therepresentative ofJapan welcomed thepresent meeting asheralding cooperation and
coordination between UNCTAD andtheWTO. Helooked forward toaformal arrangement between
thetwoOrganizations which would takeintoaccount thecomplementarity oftheirroles.
35. Therepresentative ofSwitzerland saidthatherdelegation wasconscious ofthebenefits that
could begained from cooperation andcoordination among theorganizations withamandate inthe
fieldoftrade anddevelopment. Herdelegation hadalways stressed thepoint thatcooperation would
result inthefullutilization ofexisting capacity andavoidance ofduplication. Thepartnership forgrowth
anddevelopment presaged atUNCTAD IXshould befollowed up,particularly inareassuchastechnical
cooperation andinvestment measures. Theadequate involvement ofMembers wascrucial, withaview
toensuring thatsuchcooperation among organizations wasinaccordance withtheirmandate. From
thatperspective, theCTD wasontherightpath. Shewelcomed UNCTAD 'sinitiative toanalyze the
inter-relationship between development andforeign direct investment, trade intechnology andrelated
financial issues, andsaidthatsuchinitiatives complemented andsupported thework oftheWTO.
Tominimize inconsistencies andduplication, eachorganization should concentrate onmatters within
itsdomain andexpertise: theWTO could concentrate onmanaging andmonitoring thelegalframework,
dispute settlement, rule-making andtradenegotiations; UNCTAD could analyze development-related
trendsintrade,widerdevelopmentissues,consensusbuilding,disseminationofinformation,andprovide
technical assistance incooperation withWTO andITC.While therewasthepotential forleast-developed
countries tobenefit fromWTO agreements, coordinated assistance fromtheinternational community,
particularly theinternational financial institutions, wasrequired soastoenable these countries to
implement thenecessary domestic reforms needed toposition theminthenewinternational economic
environment andtotakeadvantage oftheopportunities offered bytheUruguay Round. Thepossibility
ofgranting further preferences toleast-developed countries should belooked into.
36. Therepresentative ofPerusaidthatthemeeting wasnotonlyanhistoric event butalsoan
historic challenge. Itshould beensured thatdeveloping countries benefitted fullyfromthecooperation
andcoordination among thevarious relevant organizations. Political willwasnecessary ifthisgoal
wastobeachieved. Hisdelegation looked forward tosharing inthebenefits which could begained
from thework oftheWTO andUNCTAD intheareaofinvestment.
37. Therepresentative ofSenegal thanked theChairman 'seffective guidance oftheCommittee
initswork andthegenuine commitment shown byMessrs. Ruggiero, Bélisle, Ricupero andRossier
tothefuller integration ofdeveloping countries inthemultilateral trading system. Shenoted thatthe
perceptions about trade anddevelopment hadchanged greatly andintherightdirection. Combining
thepragmatism oftheWTO withtheexperience ofUNCTAD andITChadbeenthemissing link.
Herauthorities werecommitted todoing whatwasnecessary atthedomestic levelsoastomake best
useoftechnical assistance. Technical cooperation could notleadtosustained development, unless
thebeneficiaries themselves werecommitted toovercoming poverty andunderdevelopment. Thanking
theITCandUNCTAD fortheirassistance, shesaidthattheDakar Trade Point wasveryactive; a
delegation from hercountry would shortly bevisiting South-East Asian countries tolearn from the
experienceofthosecountrieswhohadsucceededinachievingphenomenaleconomicgrowths.Expressing
herappreciation fortheassistance provided bytheWTO, shesaidthatwork wasinprocess tobring
domestic provisions inlinewiththeprovisions oftheWTO Agreement. Inconcluding, shereaffirmed
Senegal 'sfaithintheefforts ofUNCTAD, WTO andITC.
38. Therepresentative ofNorway noted theuniqueness ofthatmeeting anditsfocus on
complementarity between theWTO, UNCTAD andITC. This complementarity required each
organization torespect thelimits toitsmandate. Alimited scope didnotimply limited importance;WT/COMTD/M/7
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rather itmeant clear specialization which hadtobeconsciously cultivated. Heagreed withthe
representative ofKorea thatattracting financing would befacilitated bytheestablishment ofintegrated
programmes. Heshared theconcern oftheSecretary-General ofUNCTAD inrespect oftheslow
paceofdevelopment insome developing countries. Hisdelegation wasoftheviewthatthiswasan
importantissue,perhapsthemostpressingone.Supportingthestrengtheningofcoordinationinparticular
withtheIMFandWorld Bank, heunderlined thatinitiatives fromrecipient countries todevelop, for
instance, thelegalframework tofacilitate investment andinternational trade wereindispensable. His
authorities weregiving serious consideration tothetwoMarrakesh decisions infavour ofleast-developed
countries andonnet-food importing countries.
39. TherepresentativeofEgyptsaidthattheconcurrenceofAmbassadorRossier'srolesasChairman
oftheGeneral Council oftheWTO andChairman oftheTrade andDevelopment Board ofUNCTAD
wasagoodillustration ofthebenefits fromsynergy. Theprime reason forcoordination wastoincrease
thebenefits todeveloping countries andtofurther theirintegration intotheworld economy. Thecost
ofduplication andoverlap wasborne bydeveloping countries andshould beavoided. Coordination
which respected distinct mandates would increase synergies. Shesaidthat,justasWTO hadparticipated
atUNCTAD IX,UNCTAD should havearoleattheSingapore Ministerial meeting. Shecautioned
against anearly discussion ofWTO rules, since thiswould bepremature. Itwould benecessary to
berealistic inrespect oftheability ofdeveloping countries tocopewiththenewdisciplines andrules
imposed bytheWTO Agreement. Shewelcomed Ambassador Rossier 'sclearassertion thatUNCTAD
hadbeenmandated bygovernments todefine andanalyze theconsequences fordevelopment ofa
multilateral agreement oninvestment. Shealsoagreed withhisstatement thatdeveloping countries
would benefit from increased cooperation between UNCTAD andtheWTO onthenewissues and
welcomed suchcooperation. Sheagreed withtherepresentatives ofMexico andSwitzerland thatthe
competence ofeachorganization should beclearly demarcated.
40. TherepresentativeofHongKongcomplimentedtheChairman'simaginativeandcreativehandling
ofthedeliberations intheCommittee. Results werelikely tobeachieved iftheinstitutions cooperated
intheareas where theircompetencies overlapped. Theguiding principle should bethateachinstitution
should concentrate onmatters falling within itssphere ofresponsibility. Globalization presented both
opportunitiesandchallengesfordevelopingcountries.Itwasimperativethattheinternationalcommunity
asrepresented inthisCommittee adopt measures which would ensure thatevery country benefitted
fromtheprocess ofglobalization. Developments taking place inthebusiness community should not
beignored. Heagreed withtherepresentative ofSingapore thattheWTO wasnotonlyanegotiating
body, butthatitalsohadtorespond tochanging economic realities byinitiating discussions suchas
theonecurrently taking place withaviewtoformulating appropriate policy responses.
41. Therepresentative ofNewZealand thanked theChairman fortheactive focus hehadgiven
totheagenda ofthisCommittee. Integrating developing countries intothemultilateral trading system
andgiving particular attention totheneeds oftheleast-developed countries were major tasks ofthe
CTD. Thechallenges ofglobalization andliberalization required effective cooperation among allthe
relevant organizations. Duplication offunctions should beremoved, asitwasnotintheinterest of
developing countries. Hehoped thatthevaluable analytical input which hadcome from UNCTAD
overtheyears would continue andbecomplemented bytherule-based work oftheWTO. Heagreed
withtherepresentative ofSingapore thattheperspectives oftheIMF, World Bank, UNCTAD and
ITCneeded tobetaken intoaccount soastogiveamore focused approach totechnical assistance.
Hisdelegation endorsed Ambassador Rossier 'semphasis ontheimportance thatrecipient countries
themselves setpriorities fortechnical cooperation, andthattheycontribute actively totheprocess of
discussion anddecision-making.WT/COMTD/M/7
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42. Therepresentative ofDjibouti endorsed theWTO Director-General 'sstatement saying that,
aslongasthere wasnomultilateral agreement oninvestment which guaranteed private investments,
there could notbeanylong-term development.
43. Therepresentative ofMauritius, while agreeing onthesignificance ofthatmeeting, saidthat
itwasnecessary togointothedetails oftechnical assistance. Concerns needed tobeaddressed such
asadecrease inthefinancial resources devoted toprogrammes fortraining ofmiddle-rank management
officials.
44. Therepresentative ofPakistan, while agreeing ontheimportance ofthatmeeting, saidthat
hecouldnotsharetheoptimismexpressedonthegrowthprospectsfordevelopingcountries.Formidable
development challenges were before them. Theextent towhich developing countries could take
advantage oftheopportunities offered byglobalization waslimited. Coordinated efforts bytheWTO,
UNCTAD andITCcould goalongwayinhelping developing countries toincrease theirparticipation
inthemultilateral trading system. Hesawaroleinthisregard fortheCTD.
45. TherepresentativeofAustraliathankedtheinitiativeanddynamismoftheChairmaninorganizing
thatmeeting andlooked forward tomore ofsuchmeetings inthefuture. Itwasapleasure tohave
theheads ofWTO, UNCTAD andITCaddress thisCommittee. Hewelcomed theresolve forgreater
cooperation inimplementing theMidrand Declaration, andthecommitment toavoid duplication of
workandobtain themosteffective results fromtechnical cooperation. Helooked forward todeveloping
countries, especially theleast-developed ones, increasing theirparticipation intheglobal economy.
46. Therepresentative ofKenya saidthatthiswasanhistoric event which hadgiven theopportunity
toMembers tohearverycomprehensive presentations ontechnical assistance. UNCTAD IXhad
establishedaCommissiontoidentifyanddiscussopportunitiesarisingfromUruguayRoundagreements,
andtoassist developing countries intheirefforts toincrease theirparticipation inthemultilateral trading
system. Improved coordination andcooperation between theorganizations wasimperative. Theneeds
ofdeveloping countries which hadbeenperforming poorly should notbeignored. Putting emphasis
onfailures inAfrican countries without acknowledging positive developments didnotreflect reality.
Sheasked thattheorganizations indicate theelements which constituted thefavourable climate for
investment incountries which hadundertaken major economic reforms. Shewelcomed therecent visit
toKenya oftheDirector-General oftheWTO. Abusiness guide ontheresults oftheUruguay Round
andaseminar organized bytheITCincooperation withtheWTO constituted apractical example of
cooperation andcoordination.
47. Therepresentative ofPoland welcomed thejointtrade promotion plans oftheorganizations.
Hisgovernment wasastrong advocate ofoutward-oriented policies: hiscountry hadbenefitted from
theadoptionofsuchmeasures.HewelcomedAmbassadorRossier'spositiveassessmentoftheincreasing
complementarity oftasks oftheorganizations, andstated thatitwould behelpful iftheirrespective
competencies were clearly defined.
48. Therepresentative ofHungary saidthattheestablishment ofWTO wasapositive development
against thebackground ofthedifferences andcomplementarities oftheroleofeachorganization in
fields suchastechnical cooperation. Extensive cooperation andcoordination among theorganizations
wasimperative. Investment wasoneareawhich would benefit from jointWTO/UNCTAD efforts.
49. TherepresentativeofSriLankasaidthatthemeetingcarriedhistoricdimensionsforcollaboration
intrade anddevelopment. Hewelcomed thecommitment tocollaborate andrequested whether such
collaboration between organizations could benefit countries suchashis.Hiscountry hadliberalized
itstrade regime, buthadnodomestic legislation onanti-dumping andcountervailing measures.
Developing countries, including his,hadrecently beenthetarget ofmany anti-dumping actions. TheWT/COMTD/M/7
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Understanding onDispute Settlement postulated assistance todeveloping countries intheirefforts to
respond tosucharbitrary commercial practices. Tangible technical assistance intheformofeffective
legaladvice wasneeded todefend theirlegitimate rights.
50. Therepresentative oftheCzech Republic saidthattheresults oftheUruguay Round, the
conclusions ofUNCTAD IXandthedefinition ofpriority areas bytheITCpresented abeach-head
forfulfilling theobjective ofintegrating countries intotheinternational trading system. Theclearvision
evident inwhathehadheard thatdayaugured wellforestablishing priorities. Heendorsed thepriorities
setbyMr.Bélisle onbehalf ofITC.
51. Therepresentative ofBrazil agreed thatgovernments andorganizations should organize their
work onthebasisofcooperation andharmony, andwelcomed theopportunity provided atthismeeting
toheartheheads ofUNCTAD, ITCandWTO.
52. TheChairman saidthatthediscussion hadbeenbothinteresting andthought-provoking. As
animportant firststep,themeeting hadunderlined theneedforharmony andcooperation among the
institutions. Heagreed withAmbassador Rossier thatMembers themselves hadtheresponsibility to
determine theirownneeds andexpectations from theorganizations. Itwould alsobenecessary to
harmonize theobjectives oftheWTO andtheinitiatives resulting from UNCTAD IX.Hetooknote
ofthecomments onITC'snon-paper which setoutwhattheorganizations weredoing. Further thought
andclarification inrespect oftheroleoftheCTDvis-a-vis UNCTAD wasneeded. Given theincreasing
importance ofdeveloping countries intheworld economy andthechallenges facing least-developed
countries, theCTD wasperhaps thebestforum fordiscussing tangible initiatives fortheintegration
ofthese countries intotheworld economy. Therecommendations oftheCTD could bepresented to
theforthcoming Ministerial Conference inSingapore. Heintended tohaveinformal consultations with
Members inresponse totherequest fromtheDirector-General oftheWTO foraninput fromtheCTD.
Hewelcomed thelevel ofcooperation andcoordination among theinstitutions inrespect ofthe
programming andexecution oftechnical cooperation projects. Hecommended theSwiss delegation
foritsveryinteresting ideas. Hewasoftheviewthattheguidelines, which theCTD wasdeveloping,
were afurther stepintheprocess ofintegrating technical cooperation efforts soastoenhance
development andtoensure increased participation ofdeveloping countries inthemultilateral trading
system.
53. TheCommittee tooknoteofthestatements made bytheSecretary-General ofUNCTAD, the
Executive Director ofITC, theDirector-General oftheWTO andtheChairman ofboththeWTO 's
General Council andUNCTAD 'sTrade andDevelopment Board andofthecomments made.
C. Other Business
54. TheChairman indicated that,withrespect toimplementation, hehadcontacted chairpersons
ofthevarious WTO bodies tofindouthowcommitments made infavour ofdeveloping countries in
theUruguay Round agreements werebeing implemented. Following consultations withMembers on
theoutline ofthestudy ontheparticipation ofdeveloping countries inthemultilateral trading system,
anamended outline hadbeenprepared andsenttodelegations reflecting some oftheconcerns raised.
Since nocomments hadbeenreceived ontheamended version, hehadinstructed theSecretariat to
proceed withthepreparation ofthestudy. Thestudy wasexpected tobecompleted before thesummer
break. Heindicated that,atthenextmeeting scheduled for12July, heintended toconsider the
implementation ofUruguay Round commitments made infavour ofdeveloping countries, using as
aninput theresponses from theChairpersons ofthevarious WTO bodies. Guidelines ontechnical
cooperation would alsobeontheagenda. Delegations would havethebenefit ofananalytical summary
ofideas raised atthelastmeeting andareport onthereplies tothequestionnaire.