RESTRICTED
WORLD TRADE WT/COMTD/M/5
15March 1996
ORGANIZATION(96-0933 )
Committee onTrade andDevelopment
Fifth (Special) Session
NOTE ONTHE MEETING OF16FEBRUARY 1996
Chairman: Mr.Nacer Benjelloun-Touimi (Morocco)
A. Adoption ofAgenda
1. The outgoing Chairman oftheCommittee onTrade and Development (CTD),
Ambassador Haron Siraj ofMalaysia, welcomed delegates andindicated thathehadanumber of
comments tomake. With regard totheissue ofobservership intheCTD, heproposed thatsince the
matter hadnotbeenresolved bytheGeneral Council, theCommittee should agree toinvite toits
Sixth Session thesame organizations which wereinvited tothismeeting. TheCommittee soagreed.
Turning tothereasons whyhehadconvened theSpecial Session oftheCTD, herecalled thatatthe
lastsession aWorking Group wasestablished andanumber ofstudies wererequested bydelegations.
Hewanted toknow howtoproceed interms oforganizing theworkoftheWorking Group, inparticular,
whether ornotitshould beassigned theresponsibility ofconducting allthestudies thatwererequested
bydelegations. Healsowanted todiscuss theissue ofchairmanship oftheCTD, andexpected his
successor tobeelected atthissession inaccordance withtheCommittee 'srules ofprocedure. He
expectedthenewChairmantoraisethematterofchairmanshipoftheSub-CommitteeonLeast-Developed
Countries. After stating thatdelegations could raiseanymatter under theagenda item"Other Business",
theagenda forthemeeting ascontained inWTO/AIR/257 wasadopted.
B. Election ofChairperson oftheCTD
2. Theoutgoing Chairman recalled thatduring thelatter partoflastyear, theChairman ofthe
General Council carried outinformal consultations ontheappointment ofofficers totakecharge of
thevarious standing bodies oftheWTO. Inaccordance withtheestablished guidelines forthe
appointment ofofficers, theGeneral Council atitsmeeting inDecember oflastyearapproved certain
nominations including thatofAmbassador Nacer Benjelloun-Touimi ofMorocco asChairman ofthe
CTD. Heproposed thattheCTD confirm thenomination byacclamation. TheCommittee soagreed
andapproved thenomination.
3. Theoutgoing Chairman expressed histhanks todelegations andtheSecretariat fortheir
understanding, cooperation andsupport inassisting himtodischarge hisduties. Upon assuming the
chairmanship oftheCTD, Ambassador Nacer Benjelloun-Touimi thanked hispredecessor forthe
outstanding work thathehaddone during histenure ofoffice. Healsoexpressed hisappreciation
forthetrustplaced inhimbyhiscolleagues andassured them thathewould doeverything possible
tomeettheirexpectations. Withtheirsupport, andthatoftheSecretariat, helooked forward toavery
productive yearintheCTD. Anumber ofdelegations including Colombia, Philippines, United States,
European Communities, Japan, Canada, India, Switzerland, Peru, Morocco, Argentina andHong Kong
congratulated Ambassador Nacer Benjelloun-Touimi onhisassumption ofthechairmanship oftheCTDWT/COMTD/M/5
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andpledged theirfullsupport. They looked forward toworking closely withhimwiththeviewto
achieving theaimsoftheCTD. They alsocongratulated theoutgoing Chairman fortheexcellent work
thathehaddone.
C. Future Work oftheWorking Group Established bytheCTD
4. TheChairman saidthattheFifthSession should focus onhowthework oftheWorking Group
established atthelastCTD session could beadvanced. Hereminded delegations about therequests
forstudies made atthatsamemeeting. Itwashisunderstanding thattheWorking Group wasestablished
asaresult ofthestudies thatwererequested bydelegations. Tofacilitate thediscussion, hehadrequested
theSecretariat toprepare anddistribute todelegations aninformal paper which listed alltherelevant
studies thatwererequested. Theinformal paper hadbeenorganized along thelinesoftheProgramme
ofWork for1996.
5. Therepresentative ofBangladesh referred tothefirstsub-item intheinformal paper which
read"evaluation oftheimpact ofmeasures toincrease trade andinvestment opportunities, aslisted
indocument WT/COMTD/W/10, onindividual least-developed countries" andsaidhehadadrafting
suggestion tomake. Hewanted toaddthewords "andthefuture course ofaction" aftertheendof
thesentence.
6. TherepresentativeofColombiasaidthattheProgrammeofWorkoftheCTDwasquiteambitious
andreflected theconcerns ofdeveloping countries. Itwasuptodelegations toinject thenecessary
content intotheProgramme ofWork. TheCTD should notonlymonitor theprogress thatwasbeing
made bydeveloping countries intheimplementation oftheirUruguay Round obligations andhowthey
wereadjusting totheliberalization process, butalsohowthevarious international organizations were
assisting themtocopewiththenewinternational trading environment through theirtechnical cooperation
activities andother programmes. TheCTD hadabroad range ofsubjects todealwithandthatshould
initself energize it.Theanalysis ofthese issues bytheCommittee should leadtotheadoption of
practical measures toassist developing countries. Therepresentative ofPhilippines alsostated that
theCTD hadabroad range ofsubjects todealwith. Itwasresponsible intheWTO framework for
tackling alltheproblems ofdevelopment.
7. ReferringtotheinformalpaperpreparedbytheSecretariat,therepresentativeoftheUnitedStates
stated thatfurther deliberation intheCTD wasnecessary before theSecretariat could beasked to
undertake thestudies. Itwashisdelegation 'sviewthatsome oftherequested studies werenotnecessary
orofhighpriority. Thelimited resources oftheSecretariat should bedeployed forurgent andrelevant
matters. While hisdelegation wasoftheviewthattheSecretariat could commence work onsub-item 4,
itappeared thattheelements ofthestudy wereveryunbalanced. Forthestudy tobecomprehensive
anduseful forMinisters, itshould alsoexamine other elements notlisted intheinformal paper.
8. Therepresentative oftheEuropean Communities supported thecreation ofaWorking Group
ontheunderstanding thatitwould onlyconsider whysome developing countries wereunder-performing
interms oftheirparticipation inworld trade. Itwould therefore seem tofollow thatthefirstthree
items oftheinformal paper felloutside themandate oftheWorking Group. These items were not
novel andhadbeendiscussed inprevious sessions oftheCTD, andtherewasnoreason whytheycould
notbediscussed insubsequent sessions oftheCommittee. Hisdelegation wasoftheviewthatsub-item 4
should beredrafted toinclude other important elements. Asitstood, itwasunbalanced. Besides,
before theWorking Group commenced work, itsterms ofreference hadtobeagreed. Ontheother
hand, iftheroleoftheWorking Group wastoassist andguide theSecretariat toconduct thestudy
andafterwards submit ittotheCTD fordiscussion under itemBoftheProgramme ofWork for1996,
thenitmight notbenecessary toestablish aWorking Group. TheCTD could meet informally to
discharge thatjob.Hestressed thatreferences toWorking Groups should beavoided astheynormallyWT/COMTD/M/5
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hadspecific legaltasksintheWTO. Given whatwasintended tobeachieved, itwould notbenecessary
toestablish aWorking Group. Therepresentative ofJapan saidhisdelegation didnothaveenough
timetoconsider theinformal paper, andwasthusreserving theright tocome backtoitatanother
time. Hisdelegation, however, sawsome difficulties withthedrafting suggestion made byBangladesh.
Hisinitial reaction wasthatitwasonlytheMembers whocould decide onwhatpolicy responses to
adopt. Hisdelegation would comment onthisissue afterconsultations withTokyo.
9. TherepresentativeofCanadacommentedontheseconditemintheinformalpaperwhichrequired
theSecretariat tomake acompilation ofallprovisions which prima facieappeared toconfer benefits
ondeveloping countries. Itwashisunderstanding thatthedelegation which requested thestudy had
laternoted thattheSecretariat hadprepared asimilar document inthepast. Ifthatwasthecase, then
hewould hopethatthere would notbetheneedforaseparate study tobecarried out.Hisdelegation
wasoftheview thatsince theWorking Group wasestablished toexamine whysome regions and
developing countries were notperforming interms oftheirparticipation intheinternational trading
system, itwould appear thatapart from sub-item 4,therestcould notbeproperly considered bythe
Working Group. Hesawnoreason whytheycould notbeconsidered atordinary sessions oftheCTD.
While hisdelegation accepted inprinciple thattheWorking Group could examine sub-item 4,hewas
alsoinagreement withother delegations thatitwasunbalanced andshould beredrafted toinclude other
elements. Hisdelegation would submit induecourse some specific ideas which could alsoformpart
oftheenquiry oftheWorking Group. Whereas theSecretariat could berequested tocarryoutananalysis
ofcertain subjects, itcould notbeexpected toproduce recommendations fordelegations asregards
theappropriate policy responses tobeadopted toenhance theperformance ofdeveloping countries
intheinternational trading system. Thiswastheresponsibility ofMembers themselves. Likethe
Japanese delegation, hisdelegation alsohadsome problems withtheproposal ofBangladesh ifitmeant
thattheSecretariat should beauthorized toprescribe some policy responses.
10. Therepresentative ofIndiasaidthatbecause ofthemany problems facing developing countries,
itwasnecessary fortheWorking Group tocarry outallthefourstudies listed intheinformal paper.
Theconclusions reached bytheGroup could bepresented toMinisters inSingapore forappropriate
action. Referring tosub-item 2intheinformal paper, hesaidthattheSecretariat could analyse further
thepreliminary work ithaddoneontheprovisions relating todeveloping countries intheUruguay
Round Agreements. India didnotagree thatsub-item 2intheinformal paper should bedeleted. He
added thatanappreciation oftheproblems hindering theexports ofdeveloping countries wasnecessary,
iftheywere toincrease theirparticipation intheinternational trading system.
11. Therepresentative ofPhilippines saidthatthelastparagraph oftheinformal paper wasquite
clear. Studies 1and2aslisted intheinformal paper weretobeundertaken inthecontext ofitemA
oftheProgramme ofWork oftheCTD, namely the"review oftheimpact oftheresults oftheUruguay
Round ondeveloping country Members, inparticular ontheleast-developed country Members". The
thirdstudy wastobeundertaken inthecontext ofitems DandEoftheProgramme ofWork ofthe
CTD. Shestated thattheelements ofthestudy onwhysome developing countries werenotperforming
intermsoftheirparticipationintheinternationaltradingsystemshouldbeclarifiedassoonaspracticable.
Shesaiditwasnecessary fortheWorking Group tostartitswork sothatitsconclusions could be
presented toMinisters fortheirconsideration. Sheproposed thattheChairman oftheCTD should
alsochair theWorking Group.
12. TheChairman stated, although theCTD established atitslastsession aWorking Group to
consider thestudies described intheinformal paper, itwashisimpression fromtheviews expressed
sofarandconsultations that,instead ofhaving aformal Working Group, aninformal grouping ofthe
CTD could consider alltheitems listed intheinformal paper. Thissuggestion would obviate theneed
tonegotiate theterms ofreference oftheWorking Group, andmake thedistinction between thevarious
items intheinformal paper superfluous, astheywere allitems which could properly beconsideredWT/COMTD/M/5
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bytheCTD either formally orinformally. Ifthissuggestion wasacceptable, there might, however,
betheneed toprioritize thestudies which hadtobecarried out. Hestressed theimportance of
completing thestudies ontimefortheirpresentation toMinisters atSingapore.
13. Therepresentative ofBangladesh saidhewasdisturbed bythecomment thattheSecretariat
could notmake anypolicy recommendations totheCTD. Hehadthought thatintheWTO framework,
theCTD wastheonlybody where suchissues could bediscussed exhaustively. TheCTD didnot
existmerely fordiscussing themechanical implementation ofthevarious Uruguay Round Agreements.
TheCTD wasperhaps theonlyforum where developing countries could ventilate theirgrievances and
thedifficulties theywerefacing intheirquest toparticipate more effectively intheinternational trading
system. Since many developing countries, especially theleast-developed ones, were notcapable of
studying theirownsituation andadopting theappropriate policy responses, theylooked tobodies such
astheCTD toassist theminthisprocess. While theprimary responsibility fordevelopment waswith
countries themselves, assistance provided bybodies suchastheCTD could goalongwayinassisting
developing countries toadopt therightpolicies needed fortheiractive andeffective participation in
theinternational trading system. IftheCTD could notprovide thatassistance, thenitsexistence might
bequestioned.
14. Therepresentative ofSwitzerland saidthathisdelegation wasparticularly attracted totheidea
ofconvening aninformal meeting oftheCTD, instead ofestablishing aWorking Group. Hisdelegation
was,however, unclear about theSecretariat 'sroleinthisprocess, especially thelinkbetween itand
theinformal group. Hisdelegation wasoftheviewthattheinformal paper hadnotbeensufficiently
discussed intheCTD. Assuch, there wastheneedforfurther discussion oftheproposed subjects
andclarification oftheobjectives oftheinformal group. Therepresentative ofCanada wished toclarify
anearlier comment onthedrafting suggestion made byBangladesh. Hispoint wasthatitwaswithin
themandate oftheCTD tosuggest certain policy responses totheproblems being faced bydeveloping
countries intheinternational trading system. Hestressed thatthisprerogative didnotbelong tothe
Secretariat.
15. Therepresentative ofPerusaidthatasfarashisdelegation wasconcerned, theCTD actually
established aWorking Group atitslastsession. Evidence ofthiscould befound initemCoftheagenda
forthismeeting andinthesummary records ofthelastsession (WT/COMTD/M/4). However, his
delegation wasprepared toaccept theproposal made bytheChairman thataninformal group ofthe
CTD should beconvened togivedirections totheSecretariat inthepreparation ofthestudies. His
delegation wasflexible anddidnotfeelstrongly about thename thatwould begiven totheinformal
process. What wasimportant wasthecommencement ofwork onthefouritems listed intheinformal
paper. Itwashisdelegation 'shope thatmembership oftheinformal group would beopen toany
interested delegation. Therepresentative ofHong Kong agreed withthestatement made bythePeruvian
delegation, andstated thathisdelegation wasinsupport oftheCTDcarrying outinformal consultations
onthefouritems.
16. TheChairman assured delegations thattheinformal gathering oftheCTD would beopento
anyinterested delegation. Assuch, therewasnoneedtoelaborate onthecomposition oftheinformal
group. Hewanted toremind delegations thattheCTD would meetinformally togiveguidance and
directions totheSecretariat inthepreparation ofthestudies. What wasoutstanding fromhisperspective
wasasubstantive discussion ofthesubjects. Itwashishopethatthediscussion could takeplace in
theinformal meeting oftheCTD. Heexpected thefouritems listed intheinformal paper tobediscussed
andamended inthelightofthecomments made bydelegations atthismeeting. Theconclusions of
theinformal group would bepresented totheCTD. Heasked delegations ifhisproposal wasacceptable.WT/COMTD/M/5
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17. Therepresentative oftheEuropean Communities saidheagreed withtheproposal made by
theChairman. Herecalled theEuropean Communities 'support fortheestablishment oftheWorking
Group atthelastsession oftheCTD. They supported theproposal made bySingapore; the
marginalization ofcertain countries fromtheinternational trading system wasamatter ofgrave concern
totheEuropean Communities. He,however, thought thatinstead ofconcentrating onallfourstudies,
itwould bebetter iftheinformal group concentrated onsub-item 4oftheinformal paper. Therest
could beconsidered atformal sessions oftheCTD.
18. Therepresentative ofMorocco saidtheChairman 'sproposal wasacceptable tohisdelegation.
From hisperspective, itdidnotmatter whether itwasaWorking Group oraninformal meeting of
theCTD which wastoconduct thestudies withtheassistance oftheSecretariat. What wasimportant
wasthecommencement ofwork onthesubjects listed intheinformal paper. Itwasnecessary, ashad
beenindicated byIndia, thatthestudies becomprehensive andcover alltheissues raised bydelegations
atthelastsession oftheCTD. None ofthesubjects tobeaddressed wasnew; boththeSecretariat
anddelegations hadworked onthem, although hisdelegation wasconvinced thatthere wasstillthe
possibility todeepen theanalysis. Delegations could asktheSecretariat toprepare documentation on
anyrelevant subject.
19. Therepresentative ofArgentina found theproposal tobeverypragmatic, asitaccommodated
varying interests. Itwasthebelief ofhisdelegation thattheproposal would facilitate theprocess and
enable delegations tocontribute effectively toit.From aprocedural point ofview, itshould beeasier
togainconsensus onthevarious items inaninformal setting. LiketheMoroccan delegation, his
delegation wasnotsomuch interested inprocedures. Substance mattered more, andthatwaswhy
hewassupporting theChairman 'sproposal.
20. Therepresentative ofSwitzerland sawmerit intheChairman 'sproposal. Hisdelegation was
oftheviewthatallfouritems listed intheinformal paper could bediscussed ataninformal gathering
oftheCTD. Inthefuture, titlesthatmight bedistributed should reflect thatfact,soastoavoid the
misconception thatthere werestudies requested fromandprepared bytheSecretariat. TheChairman
stated thatsincetherewasnoconsensus onthestudies tobecarried out,theinformal paper distributed
bytheSecretariat should beseenasonlyadraftwithnoimplications whatsoever.
21. TheChairman asked delegations whether theywould agree totheCTD meeting informally
todiscuss thepaper prepared bytheSecretariat andmaking recommendations thereafter toaformal
meeting. Agreement onthiswould pavethewayforinstructions tobegiven totheSecretariat to
commence work onthefoursubjects listed intheinformal paper. Given thedecision bytheGeneral
Council thatthere would notbeanyPreparatory Committee ofMinisterial Meeting inSingapore, and
thateachbodyshould make itsownpreparations, itwasnecessary fortheCTD toprioritize itswork
according towhatitexpected topresent toMinisters inSingapore. TheCommittee tooknoteofthe
comments made andagreed withtheproposal made bytheChairman.
22. Therepresentative oftheEuropean Communities stressed thatdelegations werenotestablishing
aninformal group oftheCTD, butrather thattheCommittee would meet informally todiscuss all
therelevant issues asandwhen appropriate.
D. Schedule ofMeetings for1996
23. TheChairman recalled theamendment made byAmbassador Haron attheGeneral Council
meeting of13December 1995tothe1996Programme ofWork, included inthereport oftheCommittee
totheGeneral Council (WT/GC/W/25). Hesaidthatinviewoftheconvening ofthisSpecial Session
oftheCTD, itwould beappropriate toamend thedates forthesubsequent meetings oftheCTD.
Hehadinanticipation requested theSecretariat tofindsuitable dates fortheother meetings. TheWT/COMTD/M/5
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Secretariat proposal wascontained inaninformal document which hadbeencirculated todelegations.
TheSixth Session could beheldon20May1996instead of5March 1996. Theperiod between those
twodates should permit delegations toconcentrate onthework oftheinformal group oftheCTD.
Thepreliminary conclusions reached would beconsidered atthemeeting of20May1996under itemB
oftheProgrammeofWork,whichmandatedareviewoftheparticipationofdevelopingcountryMembers
inthemultilateral trading system. Atthatmeeting, theCTD would alsodiscuss itemC(Provision
ofguidelines forWTO technical cooperation activities astheyrelate todeveloping country Members)
anditemG(Notification Obligations). TheSeventh Session would beheldovertwodays, preferably
on22/23 July1996 instead of18June1996. Atthatsession, theCTD would continue itsdiscussion
ofitemB,andexamine itemA(Review oftheimpact oftheresults oftheUruguay Round ondeveloping
country Members, inparticular ontheleast-developed country Members) anditemD(Consideration
ofmeasures andinitiatives toassist intheexpansion oftrade andinvestment opportunities, including
support formeasures oftrade liberalization ofdeveloping country Members, inparticular the
least-developed country Members). Hehoped thattheinformal group would havecompleted itswork
byJuly, thusenabling theCTD toreview itsconclusions anddecide onthenextcourse ofaction.
Itcould, forexample, draftappropriate policy responses andsubmit them totheGeneral Council for
itsconsideration. TheChairman indicated thatthere would benochange inthedatefortheEighth
Session, where itemE(Review oftheapplication ofspecial provisions intheMultilateral Trade
AgreementsandrelatedMinisterialDecisionsinfavourofdevelopingcountryMembers,andinparticular
theleast-developed country Members) anditemF(Review ofWTO technical cooperation activities
astheyrelate todeveloping county Members) would beconsidered. Heenquired whether thetentative
schedule wasacceptable todelegations.
24. Therepresentative oftheUnited States hadnoparticular problems withthetentative schedule
ofmeetings orgroupings ofsubjects. However, since hisdelegation hadnothadample timetofully
study theproposal, hewould liketoreserve therighttocome backtothequestion should helateridentify
anyproblems. Therepresentative oftheEuropean Communities alsoreserved therighttocomment
ontheproposal later. Therepresentative ofJapan saidhisdelegation hadnoproblems withthetentative
schedule, buthadasmall question onthefootnote appearing inthepaper. Ifhewascorrect, the1995
Programme ofWork alsohadafootnote ontheissue ofnet-food importing countries. Itwashis
understanding thattheissue wasbeing dealt withintheCommittee onAgriculture andtoavoid
duplication offunctions, itwould bebetter forthe1996Programme ofWork tohavethesamefootnote
asthe1995Programme ofWork. Therepresentative ofArgentina saidhisdelegation hadnoproblems
withthetentative schedule ofmeetings orgroupings ofsubjects. TheProgramme ofWork hadalready
beenagreed tobytheCommittee andwhatwasoutstanding wasadecision onthedatesforthemeetings.
Hisdelegation would nothaveanyproblems ifsuggestions foramendments didnotaffect theProgramme
ofWork, butonlythedates forthemeetings. Therepresentative oftheEuropean Communities said
thatitwasnotonlyaquestion ofdates, butalsothecombination ofitems fordiscussion intheCTD.
Theformer tohimdidnotraiseanyproblems. Herecalled thatattheGeneral Council meeting of
December lastyear, theCommunities requested thattechnical assistance bediscussed preferably at
thefirstmeeting oftheCTD in1996. They wanted toavoid whathappened attheCTD meeting in
November lastyearwhere delegations weregiven apaper onWTO 'stechnical cooperation activities
atthelastmoment. Delegations didnothavethetimetogothrough thedocument andcould notengage
inanyserious discussion ofthesubject.
25. TheChairman stressed theneedforflexibility; theCTD should beabletoconvene special
sessions asandwhen necessary. Delegations which hadsuggestions could propose themastheschedule
wasadraft. TheChairman thenmentioned thatsince Members oftheWTO wish tostrengthen
cooperation between UNCTAD andtheWTO, theCTDcould consider inviting Mr.Rubens Ricupero,
theSecretary-General ofUNCTAD toaddress itatafuture session. Therepresentative ofParaguay
saidtheChairman 'ssuggestion wasacceptable tohisdelegation. Therepresentative oftheUnited StatesWT/COMTD/M/5
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thought thematter could befurther discussed. TheChairman saidthathewould carry outinformal
consultations onthismatter. TheCommittee tooknoteofthecomments made.
E. Other Business
26. TheChairman referred toRule12bis oftheruleofprocedures oftheCTD which provided
that"atitsfirstmeeting oftheyear, theCTD shallalsoelectachairperson fortheSub-Committee
ontheLLDCs among therepresentatives ofMembers. TheChairperson shallholdoffice untilanew
election takes place intheCTD", andsaidthattheSub-Committee metonlyoncelastyearunder the
chairmanship ofMs.Anne Stoddart. ItsSecond Session wasduetotakeplace on27February 1996.
Hehadbeeninformed byhispredecessor, Ambassador Haron ofMalaysia, thatitwasthegeneral
viewofdelegations thattheelection ofthechairperson should bepostponed. Hewould therefore be
carrying outinformal consultations onthematter andhoped thatachairperson could beelected atthe
nextsession oftheCTD. TheCommittee tooknoteofthatinformation provided bytheChairman.