RESTRICTEDWORLD TRADE
ORGANIZATIONWT/COMTD/LDC/M/33
25 August 2003
(03-4418)
Sub-Committee on Least-Developed Countries
Thirty-Third Session
NOTE ON THE MEETING OF 21 MAY 2003
Chair:  Ambassador Johan Molander (Sweden)
A. A DOPTION OF AGENDA ...............................................................................................................1
B. T HE WTO W ORK PROGRAMME FOR LEAST -DEVELOPED COUNTRIES .......................................1
(i) Accession of Least- Developed Countries.................................................................................... 1
(ii) Market Access for Le ast-Developed Countries........................................................................... 6
(iii) Enhancing the Participation of Least-Developed Countries in the Multilateral
Trading System ................................................................................................................. .......... 9
(iv) Trade-Related Technical Assistance and Capacity-Building Initiatives for Least-
Developed C ountrie s............................................................................................................ .....11
C. P REPARATIONS FOR THE FIFTH WTO M INISTERIAL CONFERENCE ..........................................14
(i) Arrangements to Facilitate the Partic ipation of Least-Developed Countries .......................... 14
D. O THER BUSINESS ......................................................................................................................14
A. ADOPTION OF AGENDA
1. The Sub-Committee adopted the proposed agenda contained in document
WTO/AIR/2072/Rev.1.
B. THE WTO W ORK PROGRAMME FOR LEAST -DEVELOPED COUNTRIES
2. The Chairman recalled that the WTO Work Programme for LDCs, WT/COMTD/LDC/11,
had been adopted by the Sub-Committee on 12 February 2002, in accordance with the mandate
contained in paragraph 42 of the Doha Ministerial Declaration.  He noted that since its adoption, the
Sub-Committee had systematically considered various elements of the LDC Work Programme with a
view to its effective implementation.  This session focussed on (i) Accession of LDCs;  (ii) Market
Access for LDCs;  (iii) Enhancing the Participation of LDCs in the Multilateral Trading System and;
(iv) Trade-Related Technical Assistance a nd Capacity-Building Initiatives for LDCs.
(i) Accession of Least-Developed Countries
3. The Chairman stated that positive steps had been taken to facilitate and accelerate LDCs'
accession with the adoption of the Guidelines (WT/L/508).  Since the adoption of the Guidelines,
Members and acceding LDCs had highlighted the importance of follow-up actions to put these
principles to practice.  There were currently ten LDCs at different stages of the accession process.  Hehad informally consulted with some Members, acceding LDCs and accession Working Party Chairs
on the implementation of the Guidelines.  Based on his consultations, he believed that Members could
adopt a two-track strategy with rega rd to LDC accessions, namely:  (i) to complete by Cancún or asWT/COMTD/LDC/M/33
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quickly as feasible, the accession of LDCs whose negotiations had advanced;  and (ii) to activate as
quickly as possible LDC accessions which had so far remained inactive.  He welcomed the Chairmen
of the accession Working Parties of Bhutan, Cape Verde, Ethiopia, Nepal and Yemen to the meeting.
The General Council had recently appointed new Working Party Chairmen for the accession of
Bhutan, Ethiopia, and Yemen and he hoped that these Chairs would be in a position to speed-up andenergize the accession negotiations.  A paper of the current state-of-play of LDC accessions was
circulated by the Secretariat as JOB(03)/87.  He invited Members, Observers and the accession
Working Party Chairs to contribute to the monitori ng and review of the LDC accession process and
the implementation of the Guidelines.
4. Ambassador Girard (Switzerland) as Chairman of the Working Party on the Accession of
Nepal welcomed the adoption of the Guidelines for LDCs accession.  With respect to Nepal, he noted
that steps had been taken to revitalize the process of accession.  In line with the elements contained in
the Guidelines, the Working Party had taken a number of initiatives in the accession process of Nepal.
By end December 2002, Members of the Working Party had established an ambitious road map for
the first part of 2003 which could permit the conclusion of work on Nepal by July 2003.
5. He said that ambitious road maps were necessary to focus minds and to provide Members of
the Working Party and the acceding country the necessary motivation to move forward.  It was alsoclear that road maps had to be adjusted in light of progress made.  In the case of Nepal, ambitious
aims had been set.  It appeared that a certain number of results had been achieved as the consequence
of this initiative.  As in any accession Working Party there were two types of undertakings:  the
bilateral negotiation and the multilateral instrument i.e. the protocol and the report of the Working
Party.  With Nepal, the emphasis had been on achieving results in the bilateral negotiations.Considerable effort had been put in and the Secretariat had provided support with a technical mission
to Nepal.  With the inputs received from Nepal, the material in bilateral terms was available for the
next quantitative and qualitative steps in the accession exercise.  He hoped that these efforts could be
the basis for further progress in the near future.
6. Ambassador Girard informed the Sub-Committee that capital-based representatives of the
Nepalese government were in Geneva for an in formal meeting and bilateral consultations.  Once
progress was made in these consultations it would be possible to clarify the work undertaken and to
take the necessary measures to seek to conclude the accession as soon as possible.  In conclusion, he
hoped that Members of the accession Working Party would keep the elements of the Guidelines in
mind when dealing with the accession of Nepal.
7. The representative of Bangladesh on behalf of the LDCs thanked the Secretariat for the status
report on LDCs' accessions.  The LDCs were at different stages of their accession process.  There was
a strong possibility that four LDCs could accede in 2003 while other acceding LDCs were at an
intermediate or at an initial stage.  The LDC group and the Membership attached importance to the
fast-track accession of LDCs.  The adoption of the accession Guidelines was a positive step and he
hoped that it would facilitate and accelerate negotiations with acceding LDCs.  The Guidelines
adopted still had to be faithfully implemented.  Acceding LDCs were still being requested concessionsor commitments that went beyond what was appli cable to the existing WTO LDC Members or which
went beyond the scope of the WTO agreements.  This was not in line with the Guidelines adopted.
He urged the Chairs of the Working Parties to assist acceding LDCs in such eventualities.  Members
needed to consider the special situation of LDCs and make requests commensurate with LDCs stage
of development.  Streamlined or simplified procedures or enhanced technical assistance to accedingLDCs would not be effective unless Members ex ercised restraint in seeking concessions and
commitments from LDCs.
8. He recognized that accession was a complex and difficult process.  It required considerable
resources and technical capacity.  The acceding LDCs had already invested a lot of capital in it and
were committed to revising their laws, regulations and legislation.  The only remaining challenge wasWT/COMTD/LDC/M/33
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political and not technical.  Since 1995, while 18 developing countries had acceded to the WTO, no
LDC had acceded.  This was despite the goal set by Ministers at Doha to accelerate the accession of
LDCs.  Members recognized that the LDCs were the weakest link in the world trading system.
Accession would strengthen the participation of the LDCs in the WTO.  Cambodia and Nepal were at
advanced stages of their accession process.  They had taken steps to adjust their regulatoryinfrastructure to accede to the WTO.  The litmus test for the accession Guidelines would be the
accession of Cambodia and Nepal before or by Cancún.  He urged the Sub-Committee to send a
strong signal to the Membership.  He suggested th at the Chairman and the Secretariat bring forward
ideas and develop some tools to assess, evaluate and monitor the implementation of the Guidelines.
He looked forward to the status report by the Director-General to the Fifth Ministerial Conference on
the implementation of the commitment by Ministers to facilitate and accelerate the accession of
LDCs.
9. Mr. Neil McMillan (United Kingdom) as Chairman of the Working Party on the Accession of
Ethiopia thanked delegations for his recent appointm ent to this Chairmanship.  As a recent appointee
his report to the Sub-Committee was limited.  He commended the work done in the Sub-Committee to
establish the Guidelines on LDCs accessions.  These Guidelines would serve to remind delegations
that in dealing with the poorer acceding countries an understanding of their situation had to be shownand restraint was to be exercised.  While trade negotiators were not expected to be completely open
handed, he suggested that Members show some flexibility and not seek to apply a one size fits all
approach to accessions.  His delegation, the United Kingdom, was keen to facilitate LDC accessions
and the full integration of these countries into the world trading system.  He would seek to press ahead
with the accession of Ethiopia and bring it to an early conclusion.  Quite a lot of work had been doneon Ethiopia's Foreign Trade Memorandum with support from the WTO and UNCTAD.  Capital-based
officials had recently visited Geneva to move the technical work on the Memorandum forward.  He
had consulted with the Ethiopian authorities and was informed that the Foreign Trade Memorandum
would be available shortly.  If that was the case, he would seek to arrange a first meeting of the
Working Party to examine that Foreign Trade Memorandum before the end of 2003 and continue tomove the process forward as quickly as possible.
10. Mr. Hartmut Röben (Germany) as Chairman of the Working Party on the Accession of
Yemen thanked delegations for his recent appointmen t and said that he looked forward to the work
ahead on the accession process.  Trade was crucial for economic development, especially for
developing countries and LDCs.  His delegation, Germany, therefore attached importance to increased
participation of developing countries and LDCs in the WTO.  The Guidelines were important to
facilitate the accession of LDCs to the WTO.  In this regard, his delegation was active in capacity-building and technical cooperation.  He hoped that the contributions made in recent years to the Doha
Development Agenda Global Trust Fund would assi st LDCs and developing countries in their
accession to the WTO.
11. Ambassador Petritsch (Austria) as Chairman  of the Working Party on the Accession of
Bhutan thanked delegations for their support and good wishes in his recent appointment.  As indicated
in JOB(03)/87,  Bhutan had submitted its Memorandum, and the first set of questions by Members
were being answered.  The newly established Guidelines would be applied in order to contribute to
the smooth accession of Bhutan.  As Bangladesh had noted, it was important to be as sensitive and
flexible as possible.  Austria had a special relation with Bhutan and was engaged in development
cooperation.  This would help the capacity-building work and further aspects that were important inthe wider context of Bhutan's accession.  He looked forward to working with Members, the
Secretariat and with the representatives of Bhutan.
12. The representative of Canada hoped that Cambodia and Nepal would become Members of the
WTO by the Fifth Ministerial Conference.  She urged Members to work with these two LDCs to
ensure that as much as possible was done to conclude their accession negotiations.  While a one sizefits all implementation policy of the accession Guidelines was not appropriate, her delegation wasWT/COMTD/LDC/M/33
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interested in the exchange of best practices and ideas on the implementation of the Guidelines.
Canada had been using the Guidelines in an informal yet effective way and had widely disseminated
them.  There were capacity-building mechanisms which could also assist in the LDCs' accession
process.  Within the Integrated Framework, LDCs could identify their accession-related technical
assistance needs as a priority.  In the case of Ethiopia, the lead facilitator along with UNCTAD hadintroduced plans to provide the necessary accession-related technical assistance.  Other institutions
such as the World Bank, had also provided technical assistance and capacity-building to acceding
LDCs.  The Canadian International Development Agency supported APEC countries to meet their
WTO obligations with an 8 million-dollar project aimed primarily at capacity-building in Vietnam,
Thailand, Indonesia and the Philippines.  Some WTO accession-related technical assistance had also
been extended to Cambodia and Lao P.D.R.
13. The Chairman said that following discussions with Mr. Meloni (Italy), who was the Working
Party Chairman for Cambodia, there was evidence including in particular from Canada that the
Guidelines had been used quite effectively.
14. The representative of Japan thanked the Chairs of the Accession Working Parties for their
reports and apologised on behalf of Mr. Suzuki, who was the Chairman of the Working Party on the
Accession of Samoa and who due to prior commitments had been unable to attend the meeting.  Hesaid that the Guidelines had contributed to progress in the accession of LDCs.  As an example, his
delegation had visited the capital of Cambodia for the bilateral negotiations.  This had accelerated the
negotiation process.  Japan would continue to make efforts and provide technical assistance for
activities linked to LDCs accession process.
15. Mr. David Shark (United States) as Chairman of the Working Party on the Accession of
Cape Verde said that the Foreign Trade Memorandum had not yet been submitted, and as a result
negotiations had not yet begun.  However, work was underway.  The United States had provided,
under its aid programme, technical assistance which had assisted the Government of Cape Verde in
putting together its Memorandum.  The document would be submitted once it was finalised by the
Government of Cape Verde.  After the document was submitted, he would work with the Accessions
Division of the WTO, to have the necessary follow-up steps taken for the scheduling of the first
Working Party meeting.  This would be done with  the objective of moving this process forward as
quickly as Cape Verde was in a position to move.  He said that Cape Verde had shown a great deal of
commitment to advance its WTO accession process.
16. The representative of the United States welcomed the reports by the Chairs of the Accession
Working Parties.  Significant progress had been made in LDCs accession process.  Her delegation was
committed to moving accession negotiations of LDCs forward as rapidly as possible.  Her delegationwas working hard to add one or two LDC Member s to the WTO at Cancún.  Like Canada, her
authorities had seen the effect of the Guidelines in  their own internal processes.  There was evidence
that the Guidelines were working in her capital.  There was no one size fits all approach, even among
LDCs.  There were different levels of commitments even among the existing LDC WTO Members.
The accession process was important to help countries focus on improvements in their trade regime.This interest in trade reform and trade integration would also help attract investment.  It was important
that these processes helped define the real technical assistance needs.  The United States was seeking
to dedicate additional resources to meet these needs.  She encouraged LDCs to seek trade-related
technical assistance through the Integrated Framework process.
17. The representative of Sudan associated his delegation with the statement made by Bangladesh
on behalf of LDCs and thanked the Chairs of the Accession Working Parties for their reports.  The
adoption of the Guidelines had been helpful.  He said that LDCs had limited human and institutional
capacities.  In the process of accession, the time required to prepare documents for the Working Party,
to formulate policies, and to respond to questions was lengthy and laborious.  He suggested that
specific accession-related technical assistance be provided to LDCs to build their human andWT/COMTD/LDC/M/33
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institutional capacity.  The supply-side constraints also needed to be addressed.  He urged Members to
adhere to the letter and the spirit of the Guidelines.  Demands beyond those placed on existing WTO
LDC Members were being sought, especially on tariffs and agriculture.  Tariffs were an important
source of revenue in LDCs and agriculture was a sensitive sector in LDCs.  These considerations
needed to be taken into account in implementing the Guidelines.
18. The representative of the European Communities welcomed the adoption of the Guidelines.
His delegation was committed to implementing these Guidelines and had maintained flexibility and
exercised restraint in demands to acceding LDCs.  The Chairmen of the accession Working Parties
had expressed a number of common themes such as the need for technical assistance to support the
accession process.  Technical assistance and capacity-building covered all stages of the accession
process.  In this regard, he recognized the important role of the Integrated Framework.  His delegation
was boosting the technical assistance given to acceding LDCs.  Memoranda to finance accession-related projects had recently been concluded in Cambodia and Yemen. Similar projects were being
worked on with other accession candidates.  He reiterated his support for the accession of Cambodia
and Nepal and stressed that the completion of as many LDC accessions as possible before Cancún
was important.
19. The representative of Norway welcomed the statements made by the Chairs of the Accession
Working Parties and thanked the Secretariat for Job(03)/87.  The Guidelines adopted had to be
followed up by action in the forthcoming meetings of the Working Parties.  With regard to technical
assistance, it was important to make use of the available assistance as well as seek new resources.
20. The representative of India said that the process of LDCs' accession had gained momentum
after the adoption of the Guidelines in December  2002.  However, the General Council's Decision and
the mandate had yet to be fully implemented.  He welcomed the statements made by the accession
Working Party Chairs seeking to move the work forward.  He urged Members to conclude the
accession of as many LDCs as possible by Cancún.
21. The representative of Nepal said that WTO membership was a key instrument for economic
development in his country.  Nepal had applied for WTO membership to integrate its economy into
the multilateral trading system and to raise its standard of living.  Membership was not an end in
itself, but a means to achieve overall development.  The accession negotiations therefore had to be
guided by the broader development outcome and not by market access considerations alone.  Nepal
was the first among the LDCs to initiate its accession process and had already spent almost one and a
half decades in the process.  The Working Party fo r the accession of Nepal had met twice.  The last
meeting was held in September 2002.  They had also had several rounds of formal and informal
discussions with trading partners.  The Nepalese capital-based delegation was in Geneva and washolding bilateral negotiations with interested Members.  The outcome of the talks was still mixed.
While in some areas they were close to reaching an agreement, in others the gap was widening.
Demands were being placed on acceding LDCs for commitments that were not commensurate with
their level of development, trade and financial needs.   Nonetheless, he hoped to conclude the bilateral
negotiations in the near future.  He sought the support of the LDCs and the Membership at theinformal Working Party meeting scheduled on 23 May 2003.
22. He said that the accession process had proved to be arduous, lengthy and complex.  The
LDCs were ill-equipped to meet the demands of the accession process, financially and in terms of the
expertise needed.  There was therefore a need to devise a time-bound accession package for LDCs.
Nepal's experience suggested that the target could be up to a maximum of three years from the date ofthe establishment of a Working Party or a maximum of three Working Party meetings, whichever
concluded earlier.  He urged the Sub-Committee to look  at this issue.  He recalled that no LDC had
yet managed to accede to the WTO.  This was not because LDCs did not want to move forward, but
there were inherent difficulties in the accession process.  The Guidelines as adopted by the General
Council were a positive development to address th e problems faced by acceding LDCs and to enableWT/COMTD/LDC/M/33
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them to conclude their accession process in an accelerated manner.  As Cancún drew nearer, the
accession outcome would be the test of the Guidelines.  He supported the constructive role played by
the Sub-Committee to translate the Guidelines into action.
23. The Director, Accessions Division of the WTO Secretariat said that as the accession process
was continuously moving, the document, Job(03)/87, on the state of play of LDCs' accession needed
to be updated frequently.  He suggested that at appropriate intervals updates of the document would
be submitted to the Sub-Committee in order to keep Members in touch with developments.  There
were already factual updates to the document.  Some of these updates had already been referred to by
the Chairpersons and the acceding LDCs who spoke with respect to their individual accessions.  He
underlined the importance of activating accessions.  LDCs' accessions could be categorized either as
activated or initial.  The only distinction was that while the activated accessions referred to those
accessions where the Memoranda on the Foreign Trade Regime had been submitted but no firstmeeting of the Working Party had been held, the acce ssions in the initial stages were those where the
Memoranda had not yet been finalized.  As regards Cape Verde and Ethiopia, which were both at the
initial stages of their accession,  he said that if their respective Memoranda were submitted shortly, a
first Working Party meeting could be held before the end of the year.  That would move these two
countries into the activated list.  Developments in Nepal and Cambodia's accession had already beenreported.  Samoa was also an accession which was advanced and consultations would be scheduled in
June 2003 if some inputs like a revised offer in Goods and Services were to be received.  The
accession of Samoa could therefore be another possible result at the Fifth Ministerial Conference.
Sudan had recently submitted its inputs, and thus a first Working Party meeting was foreseen in July
2003.  He said that an assessment of technical assistance for acceding LDCs had also been outlined inthe document Job(03)/87.
24. The Chairman thanked the Chairs of the Working Parties and Members and Observers of the
Sub-Committee for their interventions.  He said that the document Job(03)/87 was useful and he
looked forward to having the document updated by the Secretariat regularly.  He sensed that the
Guidelines on LDCs accession were being used and that the interventions had alluded to restraint,flexibility, and the importance of technical assistance.  There had been some impetus in the accession
of LDCs and he hoped that Nepal and Cam bodia would become WTO Members by the Cancún
Ministerial Conference.  There were also other LDC accessions which could be put on the activated
list before the end of 2003.  There had been suggestions on the sharing of best practices and on
monitoring the implementation and follow up of the Guidelines.  He believed that the regular updating
of the document on the state of play of LDCs' accessions and the possibility of future discussions in
the Sub-Committee on this issue were ways of dealing with these suggestions.  Finally, he added thatthe Director-General would provide a status report to the Fifth Ministerial Conference on the
implementation of commitments made by Ministers to facilitate and accelerate the accession of LDCs.
These discussions in the Sub-Committee could be an element of the report to be compiled for the Fifth
Ministerial Conference.
(ii) Market Access for Least-Developed Countries
25. The Chairman recalled that in paragraph 42 of the Doha Ministerial Declaration, Ministers
had committed themselves to the objective of duty-free and quota-free access for LDCs and had
agreed to consider additional measures for progressive improvements in market access for LDCs.  He
recognized that several Members had, on an autonomous basis, accorded preferential access to LDCs
and that some Members had notified these measures.  At its 44th session, the Committee on Trade and
Development (COMTD), had forwarded a notification by Canada to the Sub-Committee for
discussion and reporting back.  He invited the representative of Canada to introduce its notification
(WT/COMTD/N/15/Add.1).
26.  The representative of Canada said that in support of LDCs' poverty reduction and trade
integration efforts, his delegation had improved market access for products exported by LDCs.  TheWT/COMTD/LDC/M/33
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main elements of the notified initiative were:  (i) Canada allowed duty and quota-free entry for
virtually all products exported by LDCs.  The only exceptions were eggs and dairy and poultry
products that were ex-quota.  (ii) The initiative also simplified the administrative procedures as these
applied to imports from LDCs. (iii) There were new rules of origin for textiles and garment
accessories which authorized a larger percentage of imports from other developing countries.  Up to75 per cent of the value of a cut or sewn garments from an LDC could be imported from developing
countries.
27. He said that the initiative sought to:  (i) support LDCs in their poverty reduction efforts;
(ii) contribute to private sector development thr ough enhanced exports;  and (iii) promote investment
and industrial development in the LDCs.  Moreover, the new rules of origin for textiles and apparels
would stimulate increased trade amongst developing and least-developed countries through the new
cumulation rules.  Although the initiative was recent, there had been a meaningful increase in LDCsexports into Canada.  Imports from LDCs in the first quarter of 2003, amounted to 170 million
Canadian dollars, up by 74 per cent as compared to the first quarter of 2002.  African LDCs in
particular showed strong growth with their imports up by 134 per cent in the first quarter of 2003.  He
added that an Office for Trade Promotion and International Trade Centres across Canada had been set
up to assist developing and least-developed countries to take full advantage of the improved marketaccess.  Canadian Missions and Embassies throughout the world had also made information on this
initiative available to LDC exporters.
28. The representative of Bangladesh, on behalf of the LDCs, commended the Canadian initiative
to provide duty-free and quota-free access to essentially all imports from LDCs.  The improvements
in the GSP scheme of Canada had been effective from 1 January 2003 and had added an additional903 tariff lines to the duty free tariff items for LDCs.  This improved preferential scheme included a
wide range of agricultural, footwear, textiles and apparel products.  These were products of
importance to LDCs and accounted for a major share of their export earnings.  He reminded Members
that LDCs had been seeking duty-free and quota-free treatment on all their exports together with
flexible rules of origin.  Enhanced market access was meaningless if that access was denied by non-tariff or other barriers.  In this context, the new Canadian measure was accompanied by flexible rules
of origin requirements.  This was in line with the commitment in the Doha Declaration to consider
additional measures for progressive improvements in market access for LDCs.  He hoped that the
initiative taken by the Canadian Government would encourage other Members to make further
commitments in their preferential schemes for LDCs before Cancún.  He requested the representative
of Canada to elaborate on the rules of origin criteria, in particular the value addition criteria and to
provide more information on the growth of African exports to Canada so as to illustrate the benefits ofthe Canadian initiative.  A business delegation from Canada was visiting Bangladesh to intensify
joint-ventures with Canada and to reap benefits from the duty-free access.  He hoped that Canada's
initiative would create further opportunities for the LDCs and would accelerate poverty reduction and
economic growth in LDCs.
29. The representative of Lesotho said that his delegation associated itself with the comments
made by Bangladesh on behalf of the LDCs.  It was difficult for LDCs to take advantage of improved
market access if rules of origin differed from one country to another.  There was a lack of technical
know-how to fulfil the origin criteria set out in the different initiatives.  While the Canadian initiative
was welcome, he urged Members to consider the harmonization of rules of origin requirements.
30. The representative of Senegal welcomed the Canadian initiative and the information provided
on  the effects of this initiative, in particular, th e increase in LDC exports to Canada.  All goods from
LDCs, except eggs and dairy products could enter the Canadian market on a duty-free basis.  This
measure was encouraging and reflected the spirit of paragraph 42 of the Doha Declaration.  He
requested more explanation of the rules of origin requirements so that this information could be
shared with exporters.WT/COMTD/LDC/M/33
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31. The representative of Morocco commended Canada for its initiative and said that the measure
would have a positive impact on the exports of the LDCs.  It was of particular benefit to Africa since
34 of the 49 LDCs were in Africa.
32. The representative of United States welcomed the notification by Canada and the sharing of
experiences on the origin requirements and the effect of these initiatives.  Like Canada, her delegation
had witnessed growth in  imports under AGOA.  She took note of Lesotho's comment on some of the
challenges faced by LDCs due to the different appr oaches taken with respect to rules of origin and
would consult with her capital on this matter.
33. The representative of Guinea welcomed the Canadian initiative and associated her delegation
with the statement made by Bangladesh on behalf of LDCs.  The growth in LDC exports to Canada by
74 per cent was encouraging.  Initiatives and measures of this nature would assist LDCs in increasing
their exports and needed to be supported.
34. The representative of Rwanda supported the statement made by Bangladesh on behalf of the
LDCs and commended the Canadian initiative.  The initiative would generate benefits which LDCs
expected to derive from the DDA negotiations.  Agricu lture was an important sector in his country.  It
was estimated that 60 per cent of the population lived below the poverty line and that by 2015 that
number could be reduced to less than 25 per cent, with diversification of agriculture and agriculturaltrade.  If the agricultural sector grew by 5 to 6 per cent, the spillover effect would affect non-
agricultural products in the rural areas and the urban areas which could grow by 7 to 9 per cent.  The
trade integration of Rwanda would have a positive impact on poverty reduction.
35. The representative of Canada  in response to the comment made by Lesotho on the
harmonization of rules of origin said that the multip licity of existing rules of origin called for a
balance.  The balance was between simplifying administrative procedures and ensuring that the
system benefited those countries that were targeted by the initiative.  He said that the new origin
requirements in this initiative would be effective and provide better market access.  A technical
document had been circulated as a guide to the market access initiative for LDCs and it gave a more
detailed explanation of the mechanism.  There were seven categories of rules of origin.  First, thegeneral rules of origin system applied to everything except textiles and apparel.  This system was
similar to the existing system which allowed for 60 per cent cumulation in products whose final
assembly took place in an LDC.  The second rule was that the fibres could come from any country
provided that the fibres were then transformed within  the LDC.  The third rule said that those textiles
transformed in an LDC could come from any LDC or  any country benefiting from the GSP.  Fourth,
regarding clothing, he explained that two rules applied.  The first rule applied to fibres that came from
one LDC, were then assembled in another LDC or  any other country benefiting from the GSP and
could subsequently be exported to Canada.  The second rule applied to fibres and accessories coming
from non-LDCs.  More specifically, fibres from an LDC that could be exported to a non-LDC in order
to be transformed to textile and then re-exported to an LDC where the assembly would take place
could benefit from duty-free access to Canada.  A minimum of 25 per cent of the value added should
come from an LDC, whereas the previous cumulation rule had allowed a minimum of 40 per centvalue-added from an LDC.  Thus, the privilege of  cumulation had been increased in the case of
accessories.  The sixth rule concerned other sewn textile fabrics in which case the fabric had to be cut,
sewn or assembled in any eligible LDC with th read that originated from an LDC or any country
benefiting from the GSP scheme.  This rule allowed for a significant portion of the final product to
originate from a non-LDC benefiting from the GSP sche me.  The final rule of origin indicated that
any product which was completely processed from fibres through to assembly, sewing, and the final
product in an LDC would benefit from the LDC treatment.
36.  He said that on the question of statistics raised by Bangladesh and other delegations, the data
provided was for the first quarter of the implementation of this initiative.  These statistics varied fromWT/COMTD/LDC/M/33
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one country to another and he suggested that a better assessment of the full impact of this initiative on
LDC exports could only be obtained over a longer period of one or two years.
37. The Chairman thanked Canada for its notification and urged other Members to notify changes
and improvements in market access for LDCs.  This was particularly important for the annual
monitoring of improvements in LDC market access as mandated in the LDC Work Programme.  Heinvited the WTO Secretariat to outline the appro ach and elements for the drafting of the paper on
Market Access for LDCs which would be considered by the Sub-Committee later in the year.
38. The representative of the Economic Research and Statistics Division of the WTO Secretariat
said that the market access study last year was circulated to the Sub-Committee as
WT/COMTD/LDC/W/28.  The document was also issued as TN/MA/S/7 to the Negotiating Group on
Market Access pursuant to paragraph 16 of the Doha Declaration which referred to appropriate
studies and capacity-building specifically for LDCs .  The market access paper would be revised for
the October 2003 meeting of the Sub-Committee.  The revision would update data to include
notifications such as the one submitted by Canada.  There was a time lag between an announcement
of improved market access by a Member and when one could see the impact of that market access in
the context of trade flows.  He requested Members with preferential schemes with market access for
LDCs to provide the data beyond what had already been submitted to the Integrated Database (IDB).
He would also approach LDCs and their export pr omotion authorities or business chambers to get
further inputs from the LDCs on the types of measures that were affecting their market access.  He
asked for Members' cooperation since these efforts went beyond their commitments to the IDB.
39. The Chairman proposed that the Sub-Committee take note of the notification by Canada and
of the statements made.  A report of these di scussions would be forwarded to the COMTD.  He
suggested that market access be retained on the agenda for the last meeting of the Sub-Committee in
2003 so that the updated paper could be considered at that meeting.
40.  It was so agreed.
(iii) Enhancing the Participation of Least-Develope d Countries in the Multilateral Trading System
41. The Chairman said that work in the WTO had to be responsive to the needs and particular
constraints faced by LDCs and that the measures taken to increase LDCs participation in the
multilateral trading system were important.  He invited the WTO Secretariat to introduce the
document WT/COMTD/LDC/W/30 for co nsideration by the Sub-Committee.
42. The Director, Development Division of the WTO Secretariat said that the
document (WT/COMTD/LDC/W/30) was put together with inputs from a number of Divisions in the
Secretariat.  In Section II, data on LDCs particip ation in global trade was analyzed.  The LDCs were
marginal participants and accounted for barely half a percent of the world trade in goods and services.There were however a few LDCs who had been strong performers throughout the 1990s.  The
marginalization of LDCs posed a major challenge to the international community and to the LDCs
themselves.  Section III, outlined steps taken in  the WTO to further integrate LDCs into the
multilateral trading system.  LDCs themselves played  a proactive role through their work in the WTO
LDCs' Consultative Group.  Initiatives had been taken in the WTO Secretariat with the Director-General creating an LDC Unit in the newly esta blished Development Division.  WTO Training and
Technical Assistance for LDCs had been enhanced. Other developments included: initiatives for Non-
Residents - such as the Geneva Week;  Information Technology Support including through the WTO
Reference Centres;  Trade Policy Reviews for LDCs;  and the Integrated Framework for LDCs.  He
hoped that these initiatives would assist LDCs in their participation in the global economy.  The briefconcluding section reminded delegations that the meaningful integration of the LDCs would involve
concerted efforts by all Members.WT/COMTD/LDC/M/33
Page 10
43. The representative of Bangladesh on behalf of the LDCs welcomed the paper.  It was of a
descriptive nature and he suggested that the docum ent could in the future analytically focus on the
LDCs participation in particular sectors.  He stated that despite the efforts of LDCs and the
international community, LDCs' share in world trad e had remained static through the 1990s.  While
the number of LDCs had risen from 24 in the early 1970s to 49 at present, LDCs' share in world trade
over this period had fallen from 2 per cent to 0.4 per cent.  The LDCs were worse off and the
Secretariat needed to focus more on constraints responsible for LDCs dismal performance in world
trade and what needed to be done to address this situation.  Paragraph 3 of the paper, reported that for
the period 2000 to 2002, LDCs merchandise exports and imports had grown faster than world trade.
This implied that the share of LDCs in world trad e had also increased.  It was also reported that
commodity exporters had recorded stronger growth than exporters of manufactured goods over the
last two years. He sought clarification from the Secretariat on the data and the inferences made for theperiod 2000 to 2002.  Paragraph 8 listed LDCs that had expanded their trade in the 1990s through the
exports of manufactured goods.  While growth through the exports of manufactured goods had been
impressive,  the exports did not lead to much value addition within the LDCs.  Also in 2002, export
earnings in Bangladesh had suffered as there was a sharp fall in export prices by almost 40 per cent.
This pointed to the need for value addition and further diversification of LDC exports.
44.  He suggested that the paper could have focussed on some of the unresolved issues in the
WTO, such as the work on the special and differential treatment proposals.  He hoped that such issues
would be addressed as they were important for LDCs' integration into the multilateral trading system.
As regards technical assistance, the major challenges that LDCs faced were trade-related supply-side
capacity-building and enhancing the capacity of tr ade-support institutions.  In addition to building
human capacity, there was a need to build the relevant trade-related institutions in LDCs.  He
suggested that the paper could include further information on accession issues or steps taken by the
WTO to mainstream trade-related elements of the Brussels Programme of Action into the Work
Programme of the WTO.  He requested the Secretariat to incorporate some of these elements in future
documents so that the international community would be aware of the LDCs views.  He welcomed the
initiative by the Director-General to establish the LDC Unit and sought further information on the
support that the Unit would provide to LDCs.
45. The representative of Sudan said that the paper needed to take account of the individual
country situations.  Sudan was mainly an exporter of commodities.  While Sudan's exports over the
period 1969 to 1998  had ranged between 500 to 700 million dollars per year, the population had
increased from 12 million to about 30 million.  Exports per capita had therefore decreased and this
was not analysed in the paper.  He requested more in depth analysis to understand the real problemsthat LDCs were currently facing.
46. The representative of Guinea sought clarification on whether the exports from Angola and
Equatorial Guinea mentioned in the paper included only oil or whether it also included other
agricultural commodities.  Second, she asked whether more information could be provided on the
commodities exported by Guinea.  Third, in the addendum table, the export growth of Guinea wasreported as zero.  She wanted to know whether this  growth rate was zero, or whether the Secretariat
did not have data from the Guinean authorities.  Finally, she asked for more details on each LDC
exports of agricultural commodities and services.
47. The Director, Development Division of the WTO Secretariat, reminded Members that the
elements that were included for review in this document were based on the WTO Work Programme
for LDCs (WT/COMTD/LDC/11).  These elements  as indicated in paragraph 15 of the Work
Programme included:  (i) the negotiating agenda for the LDCs in the context of the Doha Ministerial
Declaration and Decisions;  (ii) initiatives in fav our of Non-Residents;  (iii) Information Technology
support;  (iv) diagnostic trade integration studies in  the Integrated Framework Pilot Scheme;  (v) the
participation of developing countries, especially LDCs, in international standard setting bodies;  andWT/COMTD/LDC/M/33
Page 11
(vi) LDCs' Trade Policy Reviews.  However, other elements could be included if that was the wish of
Members of the Sub-Committee.
48. The representative of the Economic Research and Statistics Division of the WTO Secretariat
in response to the comments made said that there were some data limitations in the paper.  For LDCs,
data were often unavailable and estimates had to be made using mirror statistics.  Unless provided bythe LDC themselves, some country-specific information or data for the most recent years were
therefore provisional.  For the period 2000 to 2002, the share of LDCs in world trade had not changed
significantly.  He said that analysis of the value added component of international trade was difficult
without data on the nominal trade values.  He offered to consult further with Bangladesh on the
decline in export prices.  On the issues raised by Gu inea he said that fuels or crude oil accounted for a
large share of the exports of Angola and Equatorial  Guinea.  While from a development perspective it
would be interesting to look at data on specific agricultural products, the resources were not availableto undertake such an exercise.  He said that he  would re-examine the figures for export growth in
Guinea for the period 1990 to 2002.  The data used were country submissions or from the
International Monetary Fund.  Partner statistics were also used to clarify the situation if there were
divergences.  In Sudan, he noted that trade and population growth did not match.  Per capita trade data
however did not capture the contribution of trade to development.  Currently with the recent surge infuel exports, trade had exceeded population growth in Sudan.
49. The Chairman proposed that the Sub-Committee take note of the
document WT/COMTD/LDC/W/30 and of the statements made.  He recalled that the Sub-Committee
had been mandated in the WTO Work Programme for LDCs, to report each year to the COMTD on its
monitoring and review of this item.  These disc ussions in the Sub-Committee would be an element of
the end-of-year report to be compiled and considered in the COMTD.
50. It was so agreed.
(iv) Trade-Related Technical Assistance and Capacity-Building Initiatives for Least-Developed
Countries
51. The Chairman recalled that trade-related technical assistance was important for LDCs to
overcome capacity constraints and to draw on the benefits of improved market access opportunities.
He invited the Secretariat to brief the Sub-Committee on WTO Training and Technical Assistance for
LDCs.
52. The Director, Institute for Training and Technical Cooperation of the WTO Secretariat
reported on technical cooperation activities for LDCs carried out since January 2003.  A number of
new parameters had been defined and this had an impact on the profile of the WTO training and
technical cooperation.  First, the establishment of the Institute for Training and Technical Cooperation(ITTC) brought together the Training Institute and the Technical Cooperation Division.  With this
merger, the WTO technical assistance and training activities to LDCs were coordinated in the ITTC.
This had a positive impact on the implementation of the WTO Technical Assistance Plan for 2003.
Follow-up to the technical assistance commitments in the WTO Work Programme on LDCs and
paragraphs 38 to 43 of the Doha Ministerial Declaration had also been facilitated.  Second, there wasa new distribution of responsibilities between the ITTC and the Development Division with regard to
LDC activities.  This breakdown represented better coordination of tasks, with the LDC Unit in the
Development Division responsible for the Integrated Framework, and the ITTC responsible for
operational aspects of the WTO technical cooperation activities.  Coordination with other donors and
agencies in the delivery of technical assistance wa s also important for poverty alleviation efforts and
for enhancing the benefits that LDCs derived from the multilateral trading system.
53. He stated that a report on the implementation of technical assistance activities in the first
quarter of 2003 was circulated in document WT/COMTD/W/112.  The implementation rate of LDCWT/COMTD/LDC/M/33
Page 12
activities was higher than that of other regions.  Out of 68 activities implemented by end March 2003,
about half related to LDCs.  He added that since March 2003, about 60 additional activities had been
undertaken and more activities were planned in light of the requests made by LDCs in preparation for
the Cancún Ministerial.  Activities scheduled included:  (i) a trade policy course for French speaking
LDCs to be held in Geneva in mid-July;  (ii) two regional advanced training courses on the DDA forsenior officials would take place from 16 to 27 June in Johannesburg for English speaking African
countries, and from 28 July to 8 August in Ouagadougou, for French-speaking African countries;  (iii)
a briefing session for senior LDC officials would take place in the third week of August in Geneva
and would follow up on the Dhaka Ministerial;  (iv) regional seminars or technical missions would
take place in the following LDCs:  Togo, Rwanda, Mozambique, Chad and Madagascar;  (v) at least
two representatives from each LDC would be invited to regional seminars on services, investment,
environment and market access;  (vi) technical missions were scheduled to assist acceding LDCs likeCambodia, Equatorial Guinea, Ethiopia and Lao P.D.R.;  and (vii) reference centres would be
established or upgraded in six LDCs, namely Cam bodia, Chad, Ethiopia, Eritrea, Malawi and Mali.
As regards the Joint Integrated Technical Assistance Programme (JITAP), he said that the programme
had been extended to sixteen African countries, of which eight were LDCs. Implementation of the
second phase of JITAP was important for LDCs' participation in the current negotiations.
54. He said that the WTO was seeking to improve the delivery of technical assistance in 2003
while actively preparing for the Fifth Ministerial Conference.  The challenges faced included:
(i) Reconciling activities planned in 2003 with the unplanned activities requested by LDCs.  In this
process, flexibility in the implementation of activities was of importance.  (ii) Flexibility was also
needed to deliver planned activities that had been postponed to a later date for reasons such as thoselisted in paragraph 5 of WT/COMTD/W/112.  (iii) The issue of costs in national activities also needed
to be examined, for example, for interpretation se rvices when activities had to be held in three
different working languages.  He mentioned that close to half of the LDCs were French-speaking
countries.  (iv) In light of the limited human resources of the Secretariat, "outsourcing" could be
considered.  (v) Challenges were also faced with innumerable requests to upgrade and maintainequipment of the Reference Centres.  He said that the WTO would continue to respond to needs and
challenges faced by LDCs in the drawing up of the Technical Assistance Plan for 2004 and that he
would work towards making the WTO's Technical Cooperation more effective in the future.
55. The representative of Mauritania noted the improvements in the content and delivery of the
WTO training and technical assistance.  Three activities had already taken place in Mauritania,
including a National Seminar on Notifications, another on Trade and Investment and finally a mission
in Nouakchott for the Reference Centre.  He added that more activities were scheduled by the end ofJune 2003.  He requested that technical assistance activities continue to take LDCs' needs into account
and that activities reinforce LDC participation in the negotiations.  This would ease the human and
financial constraints faced by LDCs.  He suggested that training for trainers be extended as it would
ease the burden of the scarce human resources in the Secretariat and would also enable the transfer of
know-how to LDCs.  There was also scope for partnerships with academic and research institutions toincrease LDCs knowledge in the field of international trade.
56. The representative of Bangladesh asked if the document WT/COMTD/W/112 had been
circulated to Members.  He supported the suggestion by Mauritania to strengthen the training of
trainers programme.  He also proposed that the WTO engage LDCs in the delivery of technical
assistance by hiring resource persons from LDCs.
57. The Director, Institute for Training and Technical Cooperation of the WTO Secretariat in
response to the comments made by Mauritania, sa id that there was a need for the WTO technical
assistance programme to look beyond its more traditional activities such as seminars and workshops.
Efforts were being made to take this into account in the 2004 Technical Assistance Plan.  There was a
heavy demand for technical assistance activities and there was a need for LDCs to set out theirpriorities.  He said that he would seek to shift some resources to the training of trainers programme inWT/COMTD/LDC/M/33
Page 13
the 2004 Technical Assistance Plan.  Two regional trade policy courses were also underway since last
year.  These courses were carried out in co-teaching arrangements with academic institutions like the
University of Nairobi for the trade policy course for English speaking African countries.  There was
also the "university programme" working with selected  universities in order to build their curricula on
WTO trade-related matters.  The training of trainers would be developed, so that LDCs could makebetter use of it.  In this regard, an activity was held in Geneva in partnership with another international
organization.  In response to the clarification s ought by Bangladesh, he said that WT/COMTD/W/112
was an official document of the WTO and that it would be discussed at the next COMTD meeting.
On outsourcing, he stated that all interested partie s would have the opportunity to make their interests
known in being a resource person for the WTO.  This could include people from LDCs and
developing countries.
58. The Chairman said that the priority given to LDCs in the delivery of the WTO training and
technical assistance had been emphasised in the statements made.  He noted that the COMTD would
undertake a fuller discussion on technical cooperation shortly.  He invited the Chairman of the
Integrated Framework Steering Committee (IFSC) to provide a status report on the IF and on
developments at the IFSC meeting held on 16 May 2003.
59. Ambassador Iversen (Denmark), as Chairman of the Integrated Framework Steering
Committee said that fourteen countries were presently involved in the IF.  Feedback from these LDCs
was fairly positive and encouraging though follow-up to the DTIS studies still required further
attention.  A proposal for clarification of the terms of reference of Window II of the IF Trust Fund had
been presented so as to facilitate the financing of some LDC projects.  These clarifications in the
terms of reference for Window II of the IF Trust Fund had been agreed upon (WT/IFSC/4).  Pledges
to the IF Trust Fund were forthcoming with donors scheduled to meet at a Trade and Development
meeting in Copenhagen.  Canada had already pledged 1 million Canadian dollars.  These funds would
make it possible to finance some priority projects in the action matrices of the DTIS.  He clarified that
financing under Window II was meant for modest and quick-deliverable projects.  Funds would not be
extended to finance large infrastructure projects.  He reminded delegates that Window II of the IF
Trust Fund was a tool that reinforced the purpose of the IF process, which was to integrate trade into
national development and poverty reduction plans of the LDCs, and to address LDCs' supply-side
constraints.  Finally, he reported that the evaluation of the IF process had commenced and that an
evaluation firm, Capra International, had been selected.
60. The representative of Bangladesh commended the Chairman of the IFSC for his efforts in
finalizing the terms of reference for Window II of  the IF Trust Fund.  While LDCs recognised the
importance of the DTIS studies, their ultimate objective was to benefit from trading opportunities.Therefore, supply-side constraints faced by LDCs needed to be addressed.  The Window II terms of
reference would facilitate funding of some pilot projects that LDCs had identified in their DTIS
Action Matrices.  He hoped that the funds put forward by donors would be utilised in an effective
manner and would cover concrete projects and not merely be a policy-driven exercise.
61. The representative of Mauritania said that one of the successes of the agreed clarifications in
the terms of reference of Window II was that it  would speed up the approval and implementation of
post DTIS projects.  He thanked Canada for its contribution to Window II of the IF Trust Fund.
62. The Chairman proposed that the Sub-Committee take note of the reports and statements
made.
63. It was so agreed.WT/COMTD/LDC/M/33
Page 14
C. PREPARATIONS FOR THE FIFTH WTO M INISTERIAL CONFERENCE
(i) Arrangements to Facilitate the Participation of Least-Developed Countries
64. The Chairman said that preparations for the Fifth Ministerial Conference had shifted gear.
LDC Members and Observers had intensified thei r work, with LDC Trade Ministers scheduled to
meet in Dhaka, in June 2003, to coordinate positions and prepare for the Fifth WTO MinisterialConference.  He invited the WTO Secretariat to brief the Sub-Committee on the arrangements to
facilitate the participation of LDCs at the Cancún Ministerial Conference.
65. The Director, Development Division of the WTO Secretariat said that arrangements to
facilitate the participation of LDCs at the Fifth Ministerial Conference had already been informally
discussed with the WTO LDCs' Consultative Gr oup.  A WTO Trust Fund had been established.  He
urged Members to contribute to the Trust Fund and to provide the funds needed to finance the
participation of LDCs at the Cancún Ministerial Conference.  The Secretariat would finance the travelexpenses of three delegates from each LDC.  This would include the Minister/Head of Delegation and
two senior officials.  The Government of Me xico would provide hotel accommodation and living
expenses for the LDC participants.  Rooms had be en reserved for LDCs in Hotel Sierra and in
addition half the per-diem would be provided to th e LDC delegates.  He requested LDCs to nominate
the three delegates for the Fifth Ministerial Conference to the WTO Secretariat by mid June 2003.Travel arrangements would be made by the Logistic Unit of the WTO Secretariat.
66. The representative of Norway said that her delegation supported the Secretariat in its efforts
to ensure the best possible participation of LDCs at Cancún.  She announced that Norway was in the
process of contributing 800,000 Norwegian Kroners for travel expenses.  This contribution would be
channelled through the WTO Trust Fund.
67. The Director, Development Division of the WTO Secretariat welcomed the announcement by
Norway.  The Trust Fund needed Swiss Francs (CHF) 1.3 million to meet LDC travel expenses of
which CHF 200,000 was available at present.
68. The Chairman thanked Norway for its contribution.  He proposed that the Sub-Committee
take note of the statements made.
69. It was so agreed.
D. OTHER BUSINESS
70. The Chairman proposed that the 34th Session of the Sub-Committee be convened on
8 October 2003.
71. It was so agreed.
72. In the absence of any other business, the meeting was adjourned.
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