RESTRICTED
WORLD TRADE WT/COMTD/M/4
22December 1995
ORGANIZATION(95-4123)
Committee onTrade andDevelopment
Fourth Session
NOTE ONTHE MEETING OF17NOVEMBER 1995
Chairman: Mr.Haron Siraj(Malaysia)
A. Adoption ofAgenda
1. TheChairman oftheCommittee onTrade andDevelopment (CTD) welcomed delegates and
proposed thatasmatters relating toobservership hadnotbeenresolved bytheGeneral Council, the
Committeeshouldcontinuewithitspracticeofinvitingthesameorganizationsasthoseinvitedtoprevious
meetings. TheCommittee soagreed. TheChairman indicated thatunder theagenda item"Other
Business", hewould comment ontheAnnual Report totheGeneral Council. Theagenda forthemeeting
inairgram WTO/AIR/192 wasthenadopted.
B. Review oftheImpact oftheResults oftheUruguay Round onDeveloping Country
Members, inparticular ontheLeast-Developed Country Members
2. TheChairman recalled thattheCTD hadagreed tocontinue discussions ofthisagenda item
atthisSession. Helooked forward tosignificant contributions tothedebate from Members.
3. Therepresentative ofBangladesh, speaking onbehalf ofleast-developed countries, stressed
theimportance oftheCTD todeveloping countries. TheWork Programme oftheCTD andthe
AgreementEstablishingtheWorldTradeOrganization(WTO),requiredittoreviewthespecialprovisions
relating todeveloping countries andtomake recommendations totheGeneral Council, andexpectations
wereveryhighthattheCommittee would fulfil itsmandate. Hesaiddocument WT/COMTD/W/11
showed thedeclining shareofleast-developed countries (LLDCs) inworld tradeandthatGDPpercapita
ofLLDCs hadfallen. Thecombination ofthese trends confirmed themarginalization ofLLDCs in
theinternationaltradingsystem.WhiletheprimaryresponsibilityfordevelopmentwaswiththeLLDCs,
theinternational community wascommitted byMinisters atMarrakesh toadopt positive measures
toassist theminincreasing theirtrade andinvestment opportunities. LLDCs were disappointed that
noconcrete measures hadbeenadopted atrecent meetings andglobal conferences. Losses forLLDCs
through theerosion ofpreferences hadbeenpredicted inthe1995Least-Developed Countries 'Report
published byUNCTAD. While thepreferential treatment provided byGSPschemes wasappreciated,
there needed tobeanassessment ofgains andlosses, sopolicymakers could formulate appropriate
policy responses. WT/COMTD/W/10 wasauseful document asitlisted measures toincrease thetrade
andinvestment opportunities ofLLDCs. Hethought itwould behelpful iftheSecretariat evaluated
theimpact ofthose measures onindividual countries. Thiswould assist theformulation ofappropriate
policy-responses. Expressing hisappreciation forthetechnical assistance programme implemented
bytheWTO, hesaidmore assistance wasneeded. Thegenerous gesture oftheNorwegian government
insetting upaTrust Fund intheWTO was,hesaid,astepintherightdirection.WT/COMTD/M/4
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4. Therepresentative ofIndiasaidhedidnotwanttogointothedetails ofthepositive andnegative
aspects oftheRound asthissubject hadbeendiscussed onsomany occasions. Hedid,however, want
toraisetheissue ofthelegalvalue ofthe"special anddifferential provisions" intheUruguay Round
Agreements. While theprovisions giving longer time-periods fordeveloping countries toimplement
theirobligations didnotraiseanydifficulties, thesame could notbesaidofother provisions. For
instance, hehadbeentoldthataprovision which provided thataproduct under restraint should not
besubjected toanti-dumping duties hadnolegalvalue. Hewasconcerned thatthespecial anddifferential
provisions inUruguay Round Agreements would notleadtoenforceable legal rights. Developing
countries hadundertaken substantial obligations thinking thattheycould relyonsuchprovisions.
Herequested theSecretariat tocompile alistoftheprovisions which, prima facie,provided forspecial
anddifferential treatment todeveloping countries andtoindicate whether theywerelegally enforceable.
Hewasnotasking foranyspecific judgments, butrather aprofessional, objective andanalytical listing
oftheprovisions.
5. Therepresentatives ofCuba andPerusupported India'sproposal thatananalysis becarried
outbytheSecretariat onthelegalstatus ofthespecial provisions infavour ofdeveloping countries.
Therepresentative ofCanada saidthatwhile India'sproposal wasgoodinprinciple, Indiawould agree
thattheSecretariat should notundertake alegalinterpretation oftheWTO Agreement.
6. Therepresentative ofIndia stated thathewasonlyasking theSecretariat toputtogether
provisions which, prima facie,appear toconfer legalrights ondeveloping countries. Itwould beleft
totheCTD todecide onthestatus ofsuchprovisions.
7. TheChairman tooknoteoftheproposal andcomments from Members. Hesuggested that
thediscussions continue under Agenda ItemH,thefuture Work Programme oftheCTD.
C. Consideration ofMeasures andInitiatives toAssist theExpansion ofTrade andInvestment
Opportunities ofDeveloping Country Members, inparticular ontheLeast-Developed
Country Members
8. TheChairman saidthattheissueofcredit andrecognition forautonomous tradeliberalization
measures hadbeen ontheagenda oftheSecond Session oftheCTD buthadnotbeen discussed
exhaustively. While hedidnotwanttoinfluence theoutcome ofthediscussion, theChairman pointed
outthatparagraph 8ofdocument WT/COMTD/W/4 called forlong-term measures todealwiththis
issue. Therepresentative ofMexico saidhisdelegation wasinterested incontinuing thedebate on
"credit andrecognition" asMembers hadvarying views andhadproposed different solutions during
theUruguay Round. Hehoped thataconsensus could bereached atthisFourth Session oftheCTD.
9. Therepresentative ofZambia endorsed thestatement made byBangladesh, onbehalf ofthe
LLDCs. Discussions onwhether theUruguay Round hadworsened theposition ofleast-developed
countries wasapriority neither forZambia norforother least-developed countries. Theeconomic
decline inleast-developed countries hadnotbeenarrested because ofthesuccessful conclusion ofthe
Uruguay Round asthese countries faced structural problems. Theshare ofLLDCs 'exports inworld
trade haddeclined from 0.6percentin1975 tolessthan0.3percentin1992. Outoftheover
40LLDCs, onlytwo(Zambia andBangladesh) hadexports inexcess of$1billion. Their share in
world imports wasnegligible; in1992, itamounted tolessthan0.7percent. Unless something was
doneatboththedomesticandinternationallevel,thetrendwouldcontinue.Politicalwilltodosomething
tangible forleast-developed countries wasneeded. Despite assurances given byalmost every major
intergovernmental institution toassist African andother poorer countries, noneworserious initiatives
hadbeenproposed. LLDCs wereaware thattobepartofthemainstream, much hadtobedoneby
them. Inthefirstplace itwould require theadoption ofmarket-tested policies andfiscal discipline.WT/COMTD/M/4
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Overthepastdecade theyhadadopted andcontinued toadopt autonomous tradeliberalization measures.
They accepted trade asanengine ofgrowth andwere committed toexport-oriented development
strategies. Referring totheongoing discussion, hesaidLLDCs should begranted credit bytheirtrading
partners forautonomous liberalization measures. Theargument thatcredit could begiven onlywhen
themeasures werebound intheWTO ignored thefactthatveryfewLLDCs reversed tradeliberalization
measures. Thebestguarantee against anysuchreversal wasthediscipline ofmarkets. Herequested
trading partners totakeintoaccount domestic pressures theyfaced; bynotbinding alloftheir
autonomous trading liberalization measures, LLDCs wereabletocarry theirconstituencies withthem
andcontinue withtheirreform programmes. Hecalled foranad-hoc solution, untilapermanent
solution wasfound totheissue of"credit andrecognition".
10. Hethenpointed outthatstructural weaknesses ineconomies prevented LLDCs from taking
advantage, intheshort- andmedium-term, oftheopportunities toattract investment andexpand exports.
Among thegrave problems facing LLDCs wasthehuge debtproblem. In1993, theexternal debt
ofAfrican LLDCs stood at$96.7 billion andtheratiooftotaldebttoGNP was130percent. In
nominal terms, theratiooftotaldebttoexport ofgoods andservices worsened from389percentin1985
to565percentin1993. Thedebtburden constrained theability ofLLDCs toinvest innewer
technologies toincrease theproduction ofgoods andservices forexport. Instead ofusing theirexport
earnings tostrengthen supply capacities, earnings wentintoservicing theirdebts, perpetuating thecycle
ofpoverty. Effective action atthemultilateral levelalong thelinesproposed bytheWorld Bank to
easethedebtburden onAfrican andother poorer countries wasneeded; otherwise, African countries
could notparticipate effectively inthemultilateral trading system. Acollective effort bytheWTO,
theInternational Monetary Fund (IMF), theWorld Bank andother intergovernmental economic
institutions suchastheUnited Nations Conference onTrade andDevelopment (UNCTAD) andthe
International Trade Centre (ITC) would yield results. TheBretton Woods Institutions could be
encouraged tosignificantly reduce thedebtburden ofAfrican andother poorer countries, andtooffer
loans onconcessional terms. Such measures would helpLLDCs toadjust quickly totheshort-term
negativeeffectsoftheUruguayRound,re-structuretheireconomies,increasetheirexportsandparticipate
effectively inthemultilateral trading system. Uruguay Round tariffcutsonproducts ofexport interest
toLLDCs werebelow theglobal averages, andthere wasneedforserious efforts bytheinternational
trading community toeliminate thebarriers facing LLDC trade. Hewentontoenumerate measures
thatcould betaken bytheinternational trading community andbytheWTO, UNCTAD andITCto
increase thetrading opportunities ofLLDCs. Product coverage andmargins ofpreferences under GSP
schemes should beimproved. Preferences should beextended tosemi-processed andprocessed
agricultural products, natural resource-based products, fishandfishproducts, leather andfootwear,
textile andclothing. Heencouraged countries whodidnotgivepreferential treatment toextend such
treatment totheexports ofLLDCs. Theassistance oftheWTO andotherintergovernmental institutions
wasneeded todevelop andstrengthen nascent service industries, especially intheincreasingly important
areasoffinancial services, transport andtelecommunications. Heasked thatLLDC exports beexempted
fromanycontingentprotectionmeasures,suchasanti-dumpingduties,countervailingdutiesandsafeguard
measures; andthatmajor trading partners refrain from using measures suchasenvironmental and
labour regulations torestrict LLDC exports. Integrating LLDCs intotheglobal economy called for
painstaking sacrifices from them, andforingenuity andforesight from trading partners and
intergovernmental institutions suchastheWTO, IMF, theWorld Bank, UNCTAD, ITCandFAO.
Policy reforms undertaken byalmost every least-developed country were clear evidence oftheir
commitment toanopenmultilateral trading system.
11. TherepresentativeofMoroccosaidthatlikeMexico,hisdelegationwantedcreditandrecognition
toremain ontheCTD agenda untilasolution wasreached. Agreat dealoftechnical work onthe
subject hadbeencarried outandthetimehadcome totryandspelloutcertain ideas specifically. He
saidtheSecretariat could assist byredistributing aninformal paper submitted during theUruguay Round
byanumber ofMembers, including Mexico, Egypt andMorocco. TheSecretariat could alsoprepareWT/COMTD/M/4
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forthenextmeeting oftheCTD adetailed document setting outthedimensions ofthesubject, and
outlining options opentoMembers.
12. Therepresentative ofIndia saidthatcredit should begiven forautonomous liberalization
measures, andthatbinding ofsuchmeasures intheWTO should notbeapre-requisite. Ifacountry
didbinditsmeasures intheWTO, thelegitimacy ofitsclaim tobegranted credit could notbe
questioned. While hisdelegation fullysupported theconcept, hewasnotinaposition atthisstage
tosuggest anymechanism forimplementing it.Henoted thatparagraph 13ofthebackground document
listed certain problems which could notberesolved atearlier meetings oftheCTD. Asnoconsensus
wasinsight, heagreed withMembers thattheissue should remain ontheagenda oftheCTD. He
highlighted thattheimportance oftheissue hadalsobeenrecognized intheGeneral Agreement on
Trade inServices (GATS).
13. Recallingthathisdelegationwasoneoftheco-sponsorsoftheproposalmadebyMexicoin1990,
therepresentative ofPerusaiditwasimportant forhisdelegation thattheissueremained ontheagenda
oftheCTD untilasatisfactory solution wasfound. Hisdelegation supported therequest made by
Morocco thatadetailed informal paper beprepared bytheSecretariat andthought suchapaper should
becomprehensive andelaborate ontheideas proposed inparagraphs 13and17ofthebackground
document. Therepresentative ofCoted'Ivoire recalled thestrong support given byherdelegation
during theUruguay Round totheconcept ofcredit andrecognition. Forherdelegation, theissuehad
additional importance because itwould concretize theconcept ofcoherence between theWTO and
theBretton Woods Institutions. Theargument thatcredit could begiven onlyforbound measures,
ignored thebenefits totrading partners fromsuchmeasures. Granting credit forsuchmeasures would
notonlybeequitable, butwould alsounderline theseriousness ofdeveloped countries about theneed
tointegrate theeconomies ofdeveloping countries intotheglobal economy andencourage developing
countries toadopt liberal trading policies, thuscomplementing andstrengthening themultilateral trading
system. Shesaidthiswasanimportant issue andshould bemaintained onthefuture agenda ofthe
CTD.
14. Expressing hisappreciation forthebackground document prepared bytheSecretariat the
representative oftheEuropean Communities recalled thatattheSecond Session, theyhadoutlined
albeit inapreliminary manner, theirviews ontheissue ofcredit andrecognition. They wereofthe
viewthatliberalization measures hadbeentaken intoaccount intheUruguay Round, andwerereflected
intheoverall results ofthenegotiations onmarket access. Hethought some oftheviews expressed
inthebackground document wereuntenable andpremature. Thiswasespecially soforthesuggestion
ofmini-cycles ofnegotiations; theywould probably beoutside theterms ofreference oftheCTD.
While commending countries adopting autonomous liberalization measures, hebelieved suchmeasures
served theinterests ofthose countries more thantheir trading partners; theycould congratulate
themselves andlookforward toanimprovement intheireconomies. Considering thelevelofdeveloping
countries 'bound tariffs, there wasmuch scope forfurther liberalization. Hethought theproposal for
aConcessional Tariff Concession (CTC) oraTemporary Tariff Concession (TTC) tobeaccorded,
notonanm.f.n. basis butanindividual basis, raised theissue oftheconsistency withfundamental
rulesoftheWTO suchasnon-discrimination, predictability andtransparency. Theproposal wasill-
conceived andshould bediscarded.
15. Therepresentative ofJapan saidhisdelegation welcomed autonomous liberalization measures
adopted bydeveloping countries. While hethought itwasimportant thatother countries encouraged
developingcountriestocontinuewiththeirliberalizationeffortswhichoftenmetwithdomesticresistance,
theapproach adopted during theUruguay Round should beseenagainst thebackground ofthespecial
circumstances thatexisted atthattime. Concessions weremotivated partly bythedesire toenhance
theparticipation ofdeveloping countries inmarket access negotiations ongoods. There hadbeena
ground swell ofsupport atthetimetopartly setasidethecardinal principle ofreciprocity, inrecognitionWT/COMTD/M/4
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ofthespecial position ofdeveloping countries. Tocontinue todosowould undermine thepractical
effectiveness ofWTO principles. Moreover, itwasverydifficult toassess thevalue ofautonomous
liberalization measures which weretaken inresponse tospecial group interests orinresponse totrading
partners. ThiswaswhytheChairman oftheMarket Access Group presented guidelines rather than
formal rules. These guidelines werenotintended asrulestobefollowed subsequently. Developing
countries already enjoyed, within theframework oftheWTO, many benefits notavailable toother
countries, andJapan wasoftheviewthatgranting credit andrecognition onlytodeveloping countries
would affect thebalance ofrights andobligations between developed anddeveloping countries. The
representative oftheUnited States supported thepositions adopted bytheEuropean Communities and
Japan onthisissue.
16. Therepresentative ofBangladesh thought theterm"autonomous tradeliberalization measures"
wasamisnomer asdeveloping countries werecoerced bytheBretton Woods Institutions toadopt such
measures. Itwasunfortunate thatthese tariff andnon-tariff concessions were notnegotiated inthe
WTO anddeveloping countries could notgetnegotiating credit.
17. TherepresentativeofNewZealandthoughtitwouldbeextremelydifficulttodeviseamechanism
thatwould provide arealincentive todeveloping countries toadopt liberalization measures. Hiscountry
hadadopted extensive reforms inrecent years, andhefeltautonomous liberalization measures were
more likely tobeadopted because ofdomestic interests thanbecause ofbenefits fromtrading partners.
Heemphasized theneedforanysolution tobeWTO consistent, inparticular withthem.f.n. principle.
Heagreed withtheEuropean Communities thatconcepts suchasTTC andCTC intheSecretariat
document could raiseproblems related totransparency andpredictability. Hisdelegation wished to
reflect further onZambia 'sinteresting statement. However, hefound itdifficult tounderstand why
developing countries hadaproblem withtheproposition thatcredit could onlybegiven forbound
measures when theyhadabandoned import substitution policies andprotectionism, andcommitted
themselves toamarket economy inorder toparticipate fullyinthemultilateral trading system.
18. Therepresentative ofSwitzerland, while welcoming measures toliberalize atrading regime,
saidtheadoption ofsuchmeasures outside multilateral tradenegotiations wasinfluenced byeconomic
circumstancesandpoliticalconsiderations.SwitzerlandwasinagreementwiththeEuropeanCommunities
thatitwasimperative thatanyproposed solution beconsistent withbasic principles oftheWTO such
asm.f.n., transparency andpredictability. Suchprinciples enabled trading partners toplanahead and
make necessary judgments. They wereneeded toensure thestability ofthemultilateral trading system
andwerereflected intherequirement thatallmeasures bebound intheWTO. Granting concessions
forunbound liberalization measures would becontrary tothespirit oftheWTO Agreement.
19. Therepresentative ofIndia referred tothestatements thatgranting ofcredit would upset the
balance ofrights andobligations between developed anddeveloping countries intheWTO, andthat
itwasintheinterest ofdeveloping countries toadopt these measures. Hepointed outthatitwasnot
auniversally accepted viewthatsuchmeasures benefited developing countries; theissuealways drove
awedge between various interest groups inthesecountries. Asstated inparagraph 12ofthebackground
document, "receiving credit andrecognition forliberalization measures would helpthem inresisting
domesticpressurenottoliberalizetrade,andwouldbeanincentiveforthecontinuationofsuchpolicies".
Operationalizing theconcept sothatitdidnotruncounter toGATT/WTO principles would notbe
aneasytaskandherequested thattheissue bemaintained ontheagenda oftheCTD, untilasolution
satisfactory toallMembers wasfound. Supporting India'scomments, therepresentative ofMexico
saidthatifcreditwasgivenforautonomousliberalizationmeasures,thiswouldencouragemanycountries
toreduce oreliminate differences between applied andbound ratesofduty. Expressing disappointment
withthelackofprogress, heasked Members tobeflexible andconstructive onthisissue. The
Committee tooknoteofthecomments made, including therequests thatthisissue bemaintained onWT/COMTD/M/4
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theagenda oftheCTD. TheCommittee would revert to"credit andrecognition" when discussing
thefuture work programme under Agenda ItemH.
20. Turning totheissueofnetfood-importing developing countries, theChairman drewattention
toafootnote intheCTD terms ofreference which provided that"theCommittee would give
consideration, interalia,toanyreport thattheCommittee onAgriculture maydecide torefer toit
following paragraph 6oftheDecision onMeasures Concerning thepossible Negative Effects ofthe
Reform Programme onLeast-Developed andNetFood-Importing Developing Countries andArticle XVI
oftheAgreement onAgriculture". Hereminded Members thatdiscussions were continuing inthe
Committee ofAgriculture onhowtooperationalize thisDecision. TheCTD would follow these
discussions andwould takethem intoaccount when reporting totheGeneral Council. Hereminded
Members thatthisitemwasincluded intheagenda following adecision intheSub-Committee on
Institutional, Procedural andLegal Matters, andtheCommittee needed todecide onhowtofollow-up
onthisissue when addressing itsfuture Work Programme under Agenda ItemH.
D. Review oftheParticipation ofDeveloping Country Members intheMultilateral
Trading System
21. TheChairmansaidthatdocumentWT/COMTD/W/11,showedtheincreasingroleofdeveloping
countries inworld trade. Thestatistics demonstrated theimportance ofthesecountries forworld trade
growth.
22. Therepresentative ofNorway saidthebackground document prepared bytheSecretariat gave
aclearoverview ofthecurrent trends inworld trade, andoftheincreasing participation ofdeveloping
countries intheinternational trading system. Thedocument alsoshowed clearly thateconomies of
developing countries asagroup werethemostdynamic intheworld economy. Inrecent years, their
performance hadhelped recovery oftheglobal economy andcontributed toitssustainability. While
theintegration ofdeveloping countries intotheworld economy should beapriority fortheinternational
trading system, theposition ofleast-developed andotherpoorer countries merited special consideration.
These countries hadfailed tobenefit from amore open international trading system andunless the
international community tookimmediate steps toincrease theirtrading opportunities, theywould be
further marginalized intheworld economy. While theWTO wasnottheplace todiscuss financial
aidordebtrelief, trade-related technical assistance andmarket access forproducts ofexport interest
toLLDCs werewithin themandate oftheWTO. Pointing outthepossibilities forspecial anddifferential
treatment forLLDCs under GSPschemes after thetariffication introduced bytheAgreement on
Agriculture, hesaidNorway hadtaken action andexpected other countries todolikewise. Heurged
more advanced developing countries andcountries-in-transition togivespecial treatment totheexports
ofLLDCs soastoincrease world trade. Improved market access conditions fortextiles could also
enhance greatly theparticipation ofdeveloping countries, especially LLDCs inthemultilateral trading
system. Increased trade-related technical assistance todeveloping countries would improve anddeepen
knowledge ofWTO rules andenhance capacity-building inthese countries andequip them totake
advantage oftheopportunities offered bytheUruguay Round. Assistance should betargeted atexport-
promotion programmes andatidentifying newmarket opportunities forproducts ofexport interest
todevelopingcountries.OrganizationssuchastheWorldBank,IMF,ITCandUNCTADwereproviding
technical assistance intheirspheres ofcompetence, and,ashadbeennoted byMinisters inthevarious
declarations anddecisions adopted atMarrakesh, further coherence inpolicy advice andassistance
wasnecessary.
23. Therepresentative ofIndia agreed withNorway thatthefundamental issuewasthatofmarket
access forproducts ofexport interest todeveloping countries. Theperformance ofdeveloping countries
hadnotbeenuniform, andsome regions hadfaredbetter thanothers; thepicture forAfrican andMiddleWT/COMTD/M/4
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Eastern countries was,hesaid,onthewhole verydismal. TheCTD hadtorecognize thatdeveloped
countriesshouldimprovemarketaccessconditionsforproductsofexportinteresttodevelopingcountries.
Hethoughtacoherentanalysiswouldassistpolicymakerstodesignandimplementthenecessarymeasures
toassist these countries. Itwasnecessary toconsider whydeveloping countries hadnotincreased
theirshare ofworld trade, andtocatalogue theproblems inhibiting themfromparticipating effectively
inthemultilateral trading system. TheSecretariat could assist theCTD initsevaluation ofthissubject
byundertaking adetailed study, analyzing theshare inworld trade ofdeveloping countries inmajor
productcategories-especiallytheonesinwhichtheyhadtraditionallyenjoyedacomparativeadvantage-
identifying iftheirshares inthese product categories were increasing ordecreasing andwhyitwas
so.Thisstudy could alsoexamine theimpact oftechnical standards, health andenvironmental
regulations, sanitary andphytosanitary measures, andsafeguard measures ontheperformance of
developing countries inimportant sectors suchastextiles andclothing. Itcould alsoexamine theeffects
ofrestrictive business practices oftransnational corporations. Such acomprehensive study would,
inhisview, benefit allWTO Members. TheCTD needed todomore thanjusttakenoteofthe
performance ofdeveloping countries intheinternational trading system, andastudy suchastheone
proposed would show theverymany problems facing developing countries. Aforward-looking and
analytical approach wasneeded, hesaid,sotheCTD could address theproblems facing developing
countries. Therepresentative ofVenezuela expressed hissupport fortheproposal made byIndia.
24. Therepresentative ofGhana stressed theimportance ofinvestment flows inincreasing
participation ofdeveloping countries intheinternational trading system. Countries which received
substantial investments produced goods andservices fortheglobal market place andincreased their
participation intheinternational trading system. While technical assistance aimed atinstitutional and
capacity-building wereappreciated bydeveloping countries, theimportance ofresource inflows had
toberecognized.
25. Therepresentative ofCanada, noting theexceptional performance ofdeveloping countries as
agroup intheinternational trading system, drew attention tothevariations intheperformance of
countries. Thedynamism shown bymany developing countries inthelastfivetotenyears hadbeen
remarkable. Ifpresent trends were sustained, theywould continue toincrease theirshare inworld
trade. Thespecial situation ofLLDCs needed toberecognized astheymight notshare inthebenefits
oftheUruguay Round. Commenting ontheproposal made byIndia, hedidnotobject totheprinciple,
butwasoftheviewthattheCTD should notaddress subjects ofinterests toonlydeveloping countries.
Agreeing withtherepresentative ofGhana ontheimportance ofinvestment, hesaidthatifastudy
could becarried outonrestrictive business practices, itcould alsoaddress thetreatment offoreign
direct investment byhostcountries. Such astudy would interest developed countries whowerenot
always given thesame treatment asnationals ofthehoststate.
32. Therepresentative ofIndia saidhecould seethatfordeveloped countries issues suchas
investment andnational treatment hadpriority. Butnowthesubject ofdiscussion wastheparticipation
ofdeveloping countries intheinternational trading system, anditwasnecessary toknow whytheshare
ofsome countries inworld trade wasdeclining. Ifthesuggestion thatrestrictive business practices
oftransnationalcorporationsshouldbelookedintowasobjectionableandunacceptabletosomeMembers,
itcould bedropped. However, itwashisconviction thattheCTD should lookattheimpact safeguard
measures,environmentalstandards,phytosanitaryandsanitarymeasureswerehavingontheperformance
ofdeveloping countries inthemultilateral trading system.
26. Therepresentative oftheEuropean Communities observed thatwhile somedeveloping countries
weremaking substantial progress, thesame could notbesaidofcountries inAfrica andtheMiddle
East.ThedecliningshareinworldtradeofthesecountrieswasofconcerntotheEuropeanCommunities.
While hisdelegation appreciated thespirit inwhich theproposal byIndiawasmade, hedoubted whether
suchastudy would explain whycountries inEastAsiaperformed better thanotherdeveloping countries,WT/COMTD/M/4
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especially considering thatalmost allofthem faced thesame market access conditions indeveloped
countries. Also, hewondered whether theCTD could notusestudies already prepared onthesubject,
instead ofinitiating newones. Theevidence suggested thatitwasnotthetrading policies ofdeveloped
countries thatweretobeblamed, buttheeconomic policies andother conditions inthenon-performing
countries.
27. Therepresentative ofPeruexpressed hissupport fortheproposal made byIndia andsaidthe
CTD should notbesatisfied withadocument which onlyreproduced figures; itrather hadtoanalyze
thereasons forthelackofcompetitiveness ofdeveloping countries intheinternational trading system.
Thedynamism ofinternational tradewasaffected bytheparticipation ofdeveloping countries andthis
wasamatter ofimportance toallMembers oftheWTO. Hiscountry hadamore openinvestment
regime thansome other countries, andhisdelegation hadnoobjection totheCanadian proposal.
28. Therepresentative ofSingapore saidthecritical question thatarose fromtheinteresting debate
waswhysomeregionsanddevelopingcountrieswerenotbenefitingfromthemultilateraltradingsystem.
TheCTDshould analyze carefully thevariations inperformance oftheregions andindividual countries.
Thereasons forthedecline intheshare ofworld trade ofAfrican andMiddle Eastern countries might
notbeduetoasingular cause, suchasmarket access difficulties orrestrictive traderegulations. Given
thattheshare ofAsian andLatin American countries hadincreased, hewasinclined toagree withthe
representative oftheEuropean Communities, thatthedifferences inperformance could bedueto
structural rigidities. ASEAN countries favoured theestablishment ofaWorking Group tolookinto
thisissue andreport totheCTD. Despite studies carried outbyother institutions, itwasnecessary
fortheCTD togainaninsight intotheproblems facing developing countries, soitcould propose
appropriate policy responses. Heoffered delegates copies ofapaper which touched ontheissueunder
review.
29. Therepresentative ofCuba welcomed theongoing discussion andsaidtheCTDshould examine
thereasons forthenon-performance ofsome regions anddeveloping countries, andpropose effective
solutions. Supporting theproposal made byIndia, hesaidhealsofound theASEAN proposal very
interesting. Citing theexample oftheunequal treatment ofdeveloping countries intheGSPschemes
ofcertaincountries,hedisagreedwiththerepresentativeoftheEuropeanCommunitiesthatalldeveloping
countries faced thesame market access conditions. Hehadnoobjection tothestudy extending to
investment which wasadynamic aspect ofdevelopment. Therepresentative ofAustralia saidcare
should betaken nottoduplicate work done byother institutions. Shedidnotthink, however, that
anystudies covered alltheelements specified byIndia andother Members.
30. TheChairman stated thatwhile there wasacommon denominator ontheneedforexamining
theparticipationofdevelopingcountriesintheinternationaltradingsystemfromaqualitativeperspective,
itwasnotclear whether Members wanted aWorking Group established orastudy done bythe
Secretariat. Hewastherefore proposing theestablishment ofaWorking Group toguide theSecretariat
inthepreparation ofthestudy. Membership oftheGroup would beopentoanyinterested Members.
Itwould notcarry outresearch ontherelevant issues butdirect theSecretariat onwhatshould bedone.
Heinvited Members topresent ideas forsuchstudy sothatappropriate terms ofreference could be
drawn up.TheCTD could analyze conclusions reached insuchastudy, andmake appropriate
recommendations totheGeneral Council.
31. Therepresentative ofSingapore saidthatinview ofthedimensions oftheissues atstake,
theSecretariat should notbeasked toproduce yetanother document. Asignificant input fromCTD
members would benecessary toensure thepractical usefulness ofthestudy. Supporting theproposal
made bytheChairman toestablish aWorking Group, hesaidhehadavested interest, asthefindings
andconclusions oftheCTD could provide policy guidance forconsideration byMinisters when they
meetinSingapore inDecember 1996. Headded thatthemarginalization ofLLDCs intheinternationalWT/COMTD/M/4
Page9
trading system wasanissue ofgrave concern totheinternational trading community, andMinisters
werecommitted invarious Decisions andDeclarations toworking towards theirintegration intothe
multilateral trading system. Hewasready toplayapositive roleintheproposed Working Group.
TheCommittee tooknoteofthecomments made andagreed toestablish suchaWorking Group. Saying
hewasready toserve ontheWorking Group, theChairman emphasized theneedforcleardirections
totheSecretariat ontheissues tobestudied andanalyzed.
E. Review oftheApplication ofSpecial Provisions intheMultilateral Trade Agreements and
Related Ministerial Decisions inFavour ofDeveloping Country Members, inparticular
ontheLeast-Developed Country Members
32. TheChairman saidunder thisagenda item, discussions should cover theimplementation of
GATT 1994 PartIVandtheEnabling Clause, andthespecial provisions intheMultilateral Trade
AgreementsandRelatedMinisterialDecisionsandDeclarations.UnderPartIVandtheEnablingClause
there weretwosub-items; first,preferential arrangements among developing countries, andsecond,
changes insome GSPschemes. Anotification from theCommon Market forEastern andSouthern
Africa (COMESA), circulated inWT/COMTD/N/3, provided information ontheestablishment anew
regional grouping, andanother from theAssociation ofSouth EastAsian Nations (ASEAN) in
WT/COMTD/3 provided information ontheASEAN Free-Trade Area. Recent notifications bysome
Members ofchanges intheirGSPschemes were contained inWTO documents WT/COMTD/N/1,
2,4,5and6,andtheircorresponding addenda andcorrigenda. WT/COMTD/W/11/Add.1 provided
aSecretariat summary ofthenotified changes inGSPschemes.
33. TherepresentativeoftheUnitedStatessaidtheextensionoftheirGSPschemethroughto31July
hadbeennotified. Sheindicated thatefforts werecurrently under waytorenew theprogramme. The
Chairman looked forward toasolution totheimpasse.
34. TherepresentativeofIndiawonderedwhethertherecentintroductionofmulti-layeredpreference
schemes hadtheeffect ofnullifying benefits granted under them. Inhisviewnewelements introduced
intosome GSPschemes didnotpaysufficient regard tofundamental concepts suchasnon-reciprocity
andnon-discrimination. Hethought astudy bytheSecretariat ontheramifications ofthenewelements
insome ofthese newly implemented GSPschemes might behelpful andthatsuchastudy should be
doneincoordination withUNCTAD which hadconsiderable expertise inthisarea. Heagreed with
theAustralian representative thatwork done byother institutions should notbeduplicated. The
representative ofBangladesh saidhisdelegation, likeIndia, wasconcerned about thedesign ofsome
newGSPschemes. Newconditionalities thatwerebeing imposed, especially intheareaofenvironment,
hadtheeffect ofnegating benefits under suchschemes. Thisplaced weaker countries ataserious
disadvantage.
35. Therepresentative ofZambia saidtheCOMESA Treaty hadbeennotified toMembers atthe
Second Session inWT/COMTD/N/3. Copies oftheTreaty were available intheSecretariat. The
Treaty wassigned on5November 1993 andratified byagroup offifteen African countries on8
December 1994. Thecurrent members ofCOMESA wereAngola, Burundi, Comoros Islands, Eritrea,
Ethiopia, Kenya, Lesotho, Malawi, Mauritius, Rwanda, Sudan, Swaziland, Tanzania, Uganda, Zaire,
Zambia andZimbabwe. TheCOMESA Treaty superseded thePreferential Trade Area forEastern
andSouthern African States (PTA), anddealt withabroad range ofsubjects including cooperation
ineconomic andsocial sectors. TheTreaty aimed topromote abalanced andharmonious development
ofproduction andmarketing structures, andthesustainable growth anddevelopment ofitsmember
states. COMESA aimed toraisethestandard ofliving ofthecitizens ofitsmember state, foster closer
relations among itsmember states through jointadoption ofmacro-economic policies andprogrammes,
andcooperation inallfields ofeconomic activity. Itprovided forfreemovement ofpersons andtheWT/COMTD/M/4
Page10
rightofestablishment ofbusiness bynationals ofmember states. Italsoaimed toestablish acustoms
union within atransitional period oftenyears. COMESA wasbased ontheprinciples of"open
regionalism", itdidnotintroduce anybarriers totrade anditwasfirmly anchored inthemultilateral
system oftrade. Queries orcomments ontheTreaty could bechannelled through theSecretariat.
COMESA wascommitted totheprinciple oftransparency andwould respond promptly.
36. Therepresentative ofSwitzerland saidhisgovernment wascurrently intheprocess ofrevising
itsGSPscheme, andtherevision should becompleted bytheendof1996. Thepresent Swiss scheme
accorded duty-free entry toindustrial products exported byLLDCs. Every effort wasbeing made
toincrease concessions intheagricultural sector, anditwaslikely thatsome newproducts inthissector
ofexport interest toLLDCs would beincluded. Inaddition toimproving market access conditions
forLLDCs, therevised Swiss scheme would respect thecardinal rulesoftransparency andpredictability.
37. Therepresentative ofNorway saidtherevised GSPscheme ofNorway wassummarized in
WT/COMTD/N/6. Norway hadseized theopportunities presented bythesuccessful conclusion of
theUruguayRoundandrevampeditsGSPschemebyimprovingtheconcessionstodevelopingcountries,
especially totheleast-developed among them. While improved market access under GSPschemes
wasimportant andcould assist diversification ofexports, Norway believed theintegration ofdeveloping
countries intothemultilateral trading system required theadoption ofappropriate economic andsocial
policies andgood management oftheeconomy. Norway wanted developing countries toseeGSP
schemes from thatperspective.
38. Therepresentative oftheEuropean Communities saidtheyhadnotified theiramended GSP
scheme totheSecretariat, andacopyoftherelevant ECCouncil Regulation could beobtained from
theSecretariat. Addressing theconcerns expressed byIndia andBangladesh ontheinclusion of
environmental andlabour standards inthenewGSPscheme oftheECandother countries, hesaid
itwasnottheintention oftheECtopenalize countries. ThenewECscheme offered additional benefits
todeveloping countries which complied withsuchstandards; margins ofpreferences werenotreduced,
ifcountries didnotmeet thestandards. Thefiveyearvalidity ofthenewECscheme added
predictability.Theschemeaimedatmaintainingexistingmarginsofpreferencesthroughthemechanisms
ofmodulationandofgraduation.Preferentialmarginsrangedfrom15percentto100percentdepending
onthesensitivity oftheproducts. There were noquantitative restrictions. Toprotect asmuch as
possible themargins ofpreferences enjoyed bycountries under theprevious scheme, thenewmargins
ofpreferences would beapplied tobound rates. Thenewscheme allowed theECtowithdraw
preferences forsome countries incertain specific sectors, under certain conditions. Preferences could,
forexample, bewithdrawn ifexports constituted 25percentoftotalexports totheEC.Theobjective
ofthenewgraduation policy wasnottopenalize "successful" countries, buttoredistribute margins
ofpreferences inawaythatimproved competitiveness ofcountries which mostneeded GSPbenefits.
51. Therepresentative ofEgypt thanked theNorwegian government forsetting upatechnical
assistance fundintheWTO. Hefound theamended GSPscheme notified bytheECveryconfusing.
They were currently studying itsdetails, although hiscountry 'sexports were covered byabilateral
agreement. Ithadbeenbrought totheattention ofhisdelegation byUNCTAD thatAustralia haddecided
tophase outitsGSPscheme fordeveloping countries, withtheexception ofLLDCs andsmall-island
states. Thedecision wasregrettable. Therepresentative ofAustralia saidhercountry hadnotified
thechanges toitsGSPscheme. Asaspects ofthenewscheme seemed tobeunclear tosome Members,
shehadadditional material onthescheme which shecould share withthem.
39. Therepresentative ofJapan saidthirteen countries hadbeendesignated asnewbeneficiaries
under theiramended GSPScheme. Thecriteria fordetermining eligibility forpreferential status were
thattheeconomy ofthecountry orterritory should beintheprocess ofdevelopment; thecountry
should beamember ofUNCTAD; thecountry orterritory should bewilling tohavepreferential statusWT/COMTD/M/4
Page11
under Japan'sGSPscheme; andacabinet order should proclaim thatthebenefits beextended tothe
country orterritory. Acountry fulfilling thesecriteria would bedeclared abeneficiary. Japan accepted
thatthere hadbeenerosion ofpreferences duetoUruguay Round tariff reductions. However, Japan
believed thatsuchreductions, along withthehigher levelofbindings, offered increased stability and
predictability inthetrading system. Drawing attention tothemany benefits resulting fromthesuccessful
conclusion oftheUruguay Round, headded thatGSPschemes were voluntary anddonor countries
hadnoobligation tocompensate forlossofpreferential margins. Notwithstanding thatJapan had,
onavoluntary basis, introduced improvements under their GSPscheme following thesuccessful
conclusion oftheUruguay Round, andreduced thepreferential tariffratesforanumber ofagricultural
products including twelve tropical products.
40. Therepresentative ofMexico suggested thatdonor countries useanelectronic medium, such
asthe"Internet", todisseminate information ontheirGSPschemes. Details should beavailable in
asimple user-friendly format thatcould beeasily accessed byinterested persons orfirms. Hewas
aware thatsome donor countries wereseriously studying thispossibility, andrequested representatives
ofthose present atthemeeting toprovide information onsteps being taken bythem.
41. TheChairman noted thatwithrespect tothespecial provisions intheMultilateral Trade
Agreements andAssociated Legal Texts, WT/COMTD/W/10 wasanimportant reference document
asitsetsout,among other things, provisions which wereaction-oriented. Therepresentative ofIndia
suggested that,iftheSecretariat paper wasfurther elaborated onthelinesoftheproposal hehadmade
under thesecond agenda item, itwould meettheexpectations ofhisdelegation. TheCommittee took
noteofthecomments made.
F. Annual Review ofWTO Technical Cooperation Activities astheyRelate toDeveloping
Country Members
42. TheChairman saidthatasummary ofthetechnical assistance activities oftheWTO during 1995
activities wascontained inWT/COMTD/W/12 .
43. Therepresentative ofTanzania endorsed thestatement earlier made byBangladesh, onbehalf
ofLLDCs, andassociated hisdelegation withthestatements byZambia, India andSingapore. Inthe
recent past, Tanzania hadbenefited from seminars organized bytheSecretariat, andhadreceived
assistance onitsnotification andother obligations arising from WTO Agreement. Hisdelegation
appreciated theefforts andcommitment oftheDirector-General tomobilize additional resources for
technical assistance, especially forleast-developed countries. Welcoming warmly thecontribution of
Norway inestablishing atechnical assistance Trust FundintheWTO, herequested otherdonor countries
tocontribute totheFund. Pastassistance given tocountries inthepreparation oftheirUruguay Round
commitments andseminars ontheimplications oftheRound werehelpful. What wasnecessary now,
wasassistance toincrease exports andtotakeadvantage oftheopportunities offered bythesuccessful
conclusion oftheRound. Hesuggested thatefforts should nowfocus oncapacity-building andpractical
initiatives aimed athorizontal andvertical diversification ofproduction andexport structures. Hesaid
thatthenotion of"demand-driven technical assistance" should notprevent theSecretariat frombeing
proactive; fromadvising countries onthenature oftechnical assistance theywould needtomake use
oftheopportunitiesintheinternationaltradingsystem.Hestressedtheimportanceofclosercollaboration
between theWTO andother institutions inthedesign andimplementation oftechnical assistance
programmes. Relevant organizations withwhich closer cooperation should bepursued included
UNCTAD andITC,andinstitutions suchastheIMF, World Bank, European Communities, theWorld
Intellectual Property Organization (WIPO), theUnited Nations Industrial Development
Organization (UNIDO) andtheFood andAgriculture Organization oftheUnited Nations (FAO).WT/COMTD/M/4
Page12
44. Therepresentative ofBangladesh saidthefunction oftheWTO technical assistance programme
should not,asnow,bedirected atacquainting Members withWTO rules. Heasked thattheprogramme
bestructured togivepractical assistance toLLDCs toincrease theirexports andtakeadvantage of
theUruguay Round; itshould takeaccount ofthedevelopment dimension. Practical measures were
needed toincrease theparticipation ofLLDCs intheinternational trading system. Supporting Tanzania,
hestrongly urged theSecretariat topursue thesuggestions made byitsrepresentative.
45. Therepresentative oftheEuropean Communities saidthat,in1996, theywould beorganizing,
withthecooperation oftheACPandtheWTO Secretariat, eightregional seminars intheACPcountries
atacostofabout ECU 1.1million. Sixseminars would beheldintheAfrican region andfifty-
fourcountries wereexpected toparticipate; onewould beheldintheCaribbean andanother inthe
Pacific, withfifteen andeight countries expected toparticipate, respectively. Each country would
berepresented bytwogovernment officials andtworepresentatives fromtheprivate sector. Themain
purpose oftheseminars wastoacquaint andincrease theunderstanding oftrade policymakers and
businessmen oftheresults oftheUruguay Round. Thetrading opportunities andthegeneral economic
impact oftheUruguay Round would beanalyzed inthatcontext. Theseminars would aimatidentifying
policy measures needed togetmaximum benefit from post-Uruguay Round opportunities. Abrief
description oftheprogramme, hesaid,could befound inthebackground document prepared bythe
Secretariat.
46. TherepresentativeofCubawhileexpressinghisappreciationforthetechnicalassistanceactivities
oftheWTO, saidheagreed withTanzania andBangladesh thattechnical assistance should beincreased
andtargeted atcapacity-building andother practical initiatives which would assist developing countries
toincrease theirexports andtakeadvantage oftheopportunities presented bytheUruguay Round.
Heencouraged theSecretariat topursue thematter withother institutions withacapability toassist
inthese goals, sothatresources could beusedtomaximum advantage. Hestressed theimportance
ofregionalandsub-regionalseminarsonsubjectssuchasnotificationrequirements,inhelpingdeveloping
countriesbenefitfromthemultilateraltradingsystem.HewasencouragedbythegestureoftheEuropean
Communities andhoped thathiscountry would beabletoparticipate intheseminar tobeorganized
intheCaribbean region.
47. Therepresentative ofSwitzerland saidshehadnothadtheopportunity tostudy indetail the
document prepared bytheSecretariat astheyhadreceived itthedaybefore themeeting; sheexpected
tocomment onthedocument atthenextmeeting oftheCTD. Shethensaidthatdemands fortechnical
assistance were growing, andsowere theactivities ofinstitutions engaged inproviding technical
assistance. Asthisincreased theprospect ofduplication offunctions, itwasabsolutely necessary to
coordinate these various activities toensure thatresources weredeployed tomaximum benefit. The
ideaofdiversification wasimportant andwasbeing studied andanalyzed inmany institutions such
asUNCTAD, FAO andtheWorld Bank. Shereiterated thatanefficient management ofresources
required proper coordination ofactivities. Thenewmultilateral trading environment required the
adaptation andintensification ofprogrammes fortechnical assistance andcooperation. Hergovernment
wasintheprocess ofreviewing itstrade policies tomeetthese newchallenges. Therevision oftheir
GSPscheme wasbutoneaspect ofthisreview. ShesaidthatSwitzerland, incooperation withthe
UNCTADSecretariat,wouldsoonholdaseminaron"TechnicalCooperationforTradeandDevelopment
intheFaceofGlobalization". Theseminar wasaimed atidentifying concrete policies tofacilitate the
integration ofdeveloping countries andcountries-in-transition intothemultilateral trading system.
Inaddition, theseminar would attempt toidentify technical cooperation requirements flowing from
theUruguay Round Agreements, andtofocus specifically onhowsuchassistance could bedelivered.
Theseminar would alsoconsider andclarify theroleofeachinstitution inthedelivery oftechnical
assistance. Itwasexpected thattheconclusions oftheseminar would bepartofthebackground material
forUNCTAD IX.WT/COMTD/M/4
Page13
48. TherepresentativeofBangladeshaskediftheWTOtechnicalassistancefundhadbeenestablished
andifso,wished tohavedetails about itsoperation. TheDirector oftheTechnical Cooperation and
Training Division saidthefundhadnotyetbeenestablished; adetailed planhadbeensubmitted to
theNorwegian government andtheFund could startoperating shortly aftertheadoption ofapositive
decision bythem.
49. Therepresentative ofCoted'Ivoire associated herself withthestatement made byTanzania.
Herdelegation greatly appreciated theDirector-General 'spersonal commitment toassisting African
countries toincrease theirexports andtakeadvantage oftheopportunities offered bytheUruguay Round,
andforsetting upaProgramme ofAction forAfrica. Shealsogreatly appreciated thefinancial support
extended byNorway andtheEuropean Communities andtheirwillingness toassist Africa andother
countries tobenefit fromthemultilateral trading system. TheCommittee tooknoteofthecomments
made.
G. Work oftheSub-Committee onLeast-Developed Countries
50. TheChairman recalled thatduring theSecond Session, theCTDestablished theSub-Committee
onLeast-Developed Countries andappointed MissAnne Stoddart, Deputy Permanent Representative
oftheUnited Kingdom, asChairperson oftheSub-Committee. Heinvited MissStoddart topresent
anoralreport totheCTD.
51. TheChairperson oftheSub-Committee onLeast-Developed Countries saidtheFirstMeeting
oftheSub-Committee hadtaken place on17October 1995. Thedetails oftheproceedings could be
found inWT/COMTD/LLDC/1. Themeeting waswellattended and,inherview, thegeneral level
ofinterest showed byMembers demonstrated theseriousness accorded totheMarrakesh commitment
toensure theeffective participation ofLLDCs inthemultilateral trading system. TheSub-Committee
adopted itsProgramme ofWork which wasdesigned primarily tofacilitate thefullintegration ofLLDCs
intothemultilateraltradingsystem.Shehopedtocarryoutconsultationsonitemsthatwouldbeaccorded
"priority status" atthenextmeeting oftheSub-Committee inFebruary 1996. TheWork Programme
represented aconsiderable challenge, andshewassuretheMembers oftheSub-Committee would work
togethertoproduceconstructiveresults.SheunderlinedtheimportanceoftechnicalassistancetoLLDCs
andsaiditwould continue toplayavitalroleinenabling them tomake themostoftheopportunities
andchallenges ofthepost-Uruguay Round trading environment. Shenoted thattheNorwegian initiative
inestablishing atechnical assistance fundintheWTO forthebenefit ofLLDCs waswidely commended
bytheMembers oftheSub-Committee. Therepresentatives ofUNCTAD, ITCandtheTechnical
CooperationandTrainingDivisioninformedtheSub-Committeeofworkinprogressofspecialrelevance
toLLDCs. Sheurged Members oftheCTD tobeready toplaytheirfullpartinmeeting theheavy
responsibilitiesassignedtotheSub-Committee.Practicalresultscouldbeachieved,shesaid,ifMembers
worked together withdetermination.
52. Therepresentative ofBangladesh thanked theChairperson forherstatement. Hedrewattention
tothedeclining share ofLLDCs inworld trade andthedropintheirGDP percapita andsaidthat
itwasabsolutely necessary thatsomething bedoneforthese countries. Astheproblems ofLLDCs
were within public knowledge, hedidnotthink further elaboration wasnecessary.
53. Therepresentative ofNorway thanked theChairperson oftheSub-Committee forheraccurate
report onthemeeting andsaidthatthedebate intheCTD hadunderscored thefactthattheSub-
Committee hadanimportant tasktoperform. Heinformed Members thathisdelegation washolding
consultations withtheSecretariat todevelop guidelines forgetting thebestuseoutoftheFund. An
interesting proposal made bytheSecretariat wasbeing studied inOsloandMembers would beinformed
assoonasadecision wastaken. Heencouraged contributions fromother countries totheTrust Fund,WT/COMTD/M/4
Page14
which could domuch toincrease andstrengthen theparticipation ofdeveloping countries inthe
multilateral trading system. Hewelcomed theEC'sinitiative toholdregional seminars fortheACP
countries. TheCommittee tooknoteofthecomments made.
H. Future Work Programme oftheCommittee onTrade andDevelopment
54. TheChairmanremindedMembersthatthetermsofreferenceoftheCTDrequiredit"toestablish
aprogramme ofwork which maybereviewed asnecessary eachyear". Thedraftwork programme
for1996basically followed thework programme of1995, andincluded tentative datesforthemeetings
oftheCTD in1996. Regarding thetwoitems ofthe1995work programme which werenotincluded
intheterms ofreference oftheCTD, i.e.review oftheimpact oftheUruguay Round ondeveloping
countryMembersandtheissueofcreditandrecognition,hesuggestedthattheproposedworkprogramme
for1996 carry anexplicit reference totheimpact oftheUruguay Round. Theissue ofcredit and
recognition could, hethought, bediscussed under "Consideration ofMeasures andInitiatives toAssist
theExpansion ofTrade andInvestment Opportunities ofDeveloping Country Members, inparticular
ontheLeast-Developed Country Members"; itwasnotnecessary forspecific reference tobemade
toitintheprogramme ofwork.
55. TheChairman thenrecalled thattheCTD wasresponsible forthenotification requirements
ofArticle XVIII: A,CandD,PartIVandtheEnabling Clause. TheSecretariat hadresponded to
arequest made attheSecond Session thatrelevant documents containing notification obligations relating
todevelopment issues andpastdecisions oftheCTD onthesubject becirculated toMembers. These
documents wereavailable intheroom. Suggesting thattheCTD address thenotification requirements
atitsfirstmeeting in1996, hehoped thediscussion would clarify which notification obligations were
relevant totheCTD, andwhether there wastheneedtohavestandard formats fornotifications.
56. TheChairman thenturned totheproposed work programme andinvited preliminary comments
fromMembers, andinformed those whowished topropose amendments totheprogramme could do
soinwriting totheSecretariat. Hewould thenthereafter holdconsultations withMembers onthe
proposed changes. Hehoped tofinalize theprogramme ofwork early andinclude itintheCTD's
report totheGeneral Council.
57. Therepresentative ofIndia recalled hisdelegation 'sproposal made attheSecond Session, to
include anitemintheterms ofreference oftheCTD. Consultations were stillinprogress andhis
delegation wanted thematter tobeincluded inthework programme for1996. TheChairman said
thatasconsultations werestillgoing on,theIndian delegation could raisethematter nextyearunder
anyappropriate itemofthework programme.
58. Therepresentative ofPeru, referring tothedecision toestablish aWorking Group toexamine
issues raised byMembers, thought itwould beappropriate todiscuss theparticipation ofdeveloping
countries intheinternational trading system atthenextmeeting oftheCTDinMarch 1996. According
tothedraftwork programme, theissue would notcome upfordiscussion untilOctober 1996 andin
hisdelegation 'sview, thatwastoolate. Thediscussion ofItemBcould bebrought forward inorder
fortheWorking Group tomake asignificant contribution tothework oftheCTD. Peruwaswilling
toparticipate intheWorking Group. TheChairman assured Peruthathisproposal would betaken
intoaccount. Hereminded Members tosubmit theirproposals toamend thedraftwork programme
inwriting totheSecretariat. TheCommittee tooknoteofthecomments made.WT/COMTD/M/4
Page15
I. Other Business
59. TheChairman saidRule36bisoftheCTD'sRules ofProcedure, required that"After thelast
meeting oftheyear, areport totheGeneral Council ontheactivities oftheCommittee onTrade and
Development during theyearshall beadopted". Hesuggested thatMembers entrust himwiththe
responsibility ofpreparing thedraft report, which would include, among other things, thework
programme for1996. Before submission totheGeneral Council, hewould circulate adrafttoMembers
fortheircomments. TheCTD soagreed. TheCommittee alsoagreed toauthorize theChairman
tomake anoralreport totheGATT CONTRACTING PARTIES ontheactivities oftheCTD forthis
year.
60. TheChairman thanked Members fortheiractive participation andfortheirconfidence inhim.
Heassured them thathehadtaken careful noteofallproposals andcomments. Heconfirmed that
aWorking Group would beestablished togivecleardirections totheSecretariat onissues tobeanalyzed
inthelightofproposals made byIndia, Singapore andother Members; membership oftheGroup
would beopen-ended. TheChairman declared themeeting closed.