DRAFT REPORT (1995) OFTHE COMMITTEE ONTRADE AND DEVELOPMENT
TOTHE GENERAL COUNCIL
Attached hereto istheDraft Report (1995) oftheCommittee onTrade andDevelopment to
theGeneral Council. Delegations areinvited tosubmit comments, ifany, totheSecretariat
(Mr.G.Sampson, Tel.7395147)by12.00 noon, Monday, 4December 1995.
95-3846RESTRICTED
WORLD TRADE WT/SPEC/17
29November 1995
ORGANIZATION
(95-3846)
DRAFT REPORT (1995) OFTHE COMMITTEE ONTRADE AND DEVELOPMENT
TOTHE GENERAL COUNCIL
Chairman: H.E. Ambassador HARON Siraj(Malaysia)
Introduction
1. During itsfirstyear,theCommittee onTrade andDevelopment heldfourSessions; on5April,
5July, 14September and17November 1995. Thisreport briefly summarizes thediscussions held
andthedecisions taken during these meetings. More complete details ofthework oftheCommittee
onTrade andDevelopment canbefound indocuments WT/COMTD/M/1-4. Thecontents ofthisreport
areorganized inaccordance withthework programme oftheCommittee onTrade andDevelopment.
Organizational Matters andInstitutional Arrangements
(i) Rules ofProcedure
2. TheCommittee discussed itsRules ofProcedure inbothitsFirstandSecond Sessions, and
theywereadopted intheSecond Session (WT/COMTD/6). Inaccordance withtherequirements of
theAgreementEstablishingtheWorldTradeOrganization(WTO),theRulesofProcedurewereapproved
bytheGeneral Council on15November 1995.WT/SPEC/17
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(ii) Observer Status
3. InaccordancewiththeadhocproceduresadoptedattheGeneralCouncilconcerningobservership
indifferent bodies oftheWTO, theCommittee onTrade andDevelopment invited toitsmeetings
allthose organizations which hadobserver status intheGATT 1947Committee. Following therequest
oftheUnitedNationsIndustrialDevelopmentOrganization(UNIDO)forobserverstatus,theCommittee
agreed toaddUNIDO tothelistofobservers. Annex 1liststhose organizations thatcurrently are
being invited, onanadhocbasis, tothemeetings oftheCommittee onTrade andDevelopment.
4. While itwassuggested thattheCommittee onTrade andDevelopment should grant observer
status totheInternational Trade Centre (ITC), itwasagreed thatitshould revert tothis-andother
questions ofobservership -oncetheGeneral Council would havecompleted itswork onguidelines
forobserver status.
(iii) Programme ofWork
5. TheCommittee onTrade andDevelopment adopted, atitsFirstSession, theprogramme of
work for1995 (WT/COMTD/W/2/Rev.1). Inaccordance withitem6ofitsterms ofreference, the
Committee reviewed itsprogramme ofwork atitsNovember meeting andagreed thatthe1996 work
programme would beslightly modified. Thetentative programme ofwork for1996 isattached as
Annex 2withtheunderstanding thatitmaybeimplemented inaflexible manner.
6. Therepresentative ofIndiarequested thattheCommittee address in1996theinclusion, within
itsterms ofreference, ofanitemreferring totheexamination ofprotective action bydeveloped countries
against imports from developing countries.
(iv) Sub-Committee onLeast-Developed Countries1
7. TheCommittee onTrade andDevelopment agreed, atitsSecond Session, totheestablishment
oftheSub-Committee onLeast-Developed Countries.2Miss Anne Stoddart, Deputy Permanent
Representative oftheUnited Kingdom, wasappointed Chairperson oftheSub-Committee.
1Afullaccount ofthemeeting isfound indocument WT/COMTD/LLDC/1.
2Theterms ofreference oftheSub-Committee arecontained indocument WT/COMTD/2.WT/SPEC/17
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8. TheSub-Committee helditsFirstSession on17October 1995. Discussions focused onthe
organization ofthework oftheSub-Committee, which adopted itsprogramme ofwork (contained in
Annex 3)andagreed tofollow mutatis mutandis theRules ofProcedure oftheCommittee onTrade
andDevelopment andtoreport regularly tothatbody. Thefirstsuchreport wasmade orally bythe
Chairperson attheFourth Session oftheCommittee onTrade andDevelopment. AtitsFirstSession,
theSub-Committee wasalsoinformed thatthegovernment ofNorway wasmaking aninitial contribution
of$2.5million toestablish afundwithin theWTO toassist poorer andleast-developed countries,
particularly those inAfrica, toparticipate more actively andeffectively intheWTO.
Programme ofWork for1995
Item A Review oftheimpact oftheresults oftheUruguay Round ondeveloping country
Members, inparticular ontheleast-developed country Members
9. Matters relating tothenotification obligations deriving fromtheUruguay Round wereraised
attheFirstandSecond Sessions oftheCommittee onTrade andDevelopment. TheWTO Secretariat
organized, inMay1995 inGeneva, aWorkshop onNotifications atwhich presentations were made
byWTO officials onthenotification obligations ofallUruguay Round Agreements. Anumber of
representatives stated thattheWorkshop washelpful andencouraged similar workshops tobeheld
periodically. Some delegations indicated thatinformation onnotification requirements wasstill
incomplete, andcalled formoreassistance inthisarea,nottheleastbecause ofthelackofrepresentation
inGeneva ofanumber ofdeveloping countries.
10. Inaddition toinformation onnotifications, theCommittee onTrade andDevelopment hadat
itsdisposal anumber ofbackground documents addressing some oftheimplications oftheRound for
developing country Members. TheCommittee conducted afirstdiscussion oftheissues involved at
itsSecond andFourth Sessions, noting thatmore timewasrequired toreview theresults oftheRound.
AttheCommittee 'sFourth Session, requests foradditional documentation bytheSecretariat weremade
bydelegations.WT/SPEC/17
Page4
Item B Review oftheparticipation ofdeveloping country Members inthemultilateral
trading system
11. Inaddressing thisitemattheFourth Session oftheCommittee, anumber ofdelegations were
oftheview thattheCommittee should gobeyond merely noting thechanges thathadtaken place
throughout theyears. Therepresentative ofIndia proposed thattheCommittee examine, based on
ananalysismadebytheSecretariat,thedifficultiesthatproductsofexportinteresttodevelopingcountries
werefacing indifferent markets -suchastechnical barriers totrade, safeguard measures, restrictive
business practices, etc.Therepresentatives ofGhana andCanada referred tothefactthatsuchanalysis
should alsocover investment, which could beseenasanewkeydimension formarket access. Inthis
context, theimportance ofasupportive domestic environment forexports wasalsoreferred to.
12. Atthesame Session, therepresentative ofSingapore proposed thattheCommittee onTrade
andDevelopment establish aWorking Group thatwould consider thenumerous suggestions made and
giveguidance totheSecretariat withrespect totheworkitwastoconduct. Besides, theWorking Group
could alsoprovide policy guidelines andmake recommendations fortheMinisterial Conference tobe
heldin1996inSingapore, inparticular withrespect tothespecial situation ofleast-developed country
Members. Anumber ofdelegations, while supporting theproposal, noted thatitwasimportant to
ensure thatthework doneinsuchGroup would notduplicate work being doneinother international
organizations.Followingthisdiscussion,theCommitteeagreedtoestablishsuchanopen-endedWorking
Group.
Item C Provision ofguidelines forWTO technical cooperation activities astheyrelate to
developing country Members
13. Thisitemwasdiscussed attheCommittee 'sFirstandSecond Sessions. TheCommittee stressed
theneedfortheWTO Secretariat tocoordinate itstechnical assistance activities withother international
organizations withaviewtoremoving anyoverlap intheirprogrammes andalsotoensure thatrecepient
countries oftechnical assistance benefit fully from their complementarity andcompetence. The
representatives ofanumber ofdeveloping countries expressed satisfaction withtheworkoftheTechnical
Cooperation andTraining Division andcalled foranincrease inresources, soastoenable ittoeffectively
meettheincreasing technical assistance needs ofdeveloping countries. Support wasalsoshown for
thepriority given bytheWTO Secretariat totheprovision oftechnical assistance toAfrican countries.WT/SPEC/17
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Item D Consideration ofmeasures andinitiatives toassist intheexpansion oftrade and
investment opportunities (including support formeasures oftrade liberalization)
ofdevelopingcountryMembers,inparticulartheleast-developedcountryMembers
14. TheCommittee addressed thequestion ofcredit andrecognition forautonomous trade
liberalization measures atitsSecond andFourth Sessions. Some delegations were oftheviewthat
credit andrecognition wasanissuethatshould beactively pursued. Theypointed outthatthesuggestions
made intheSecretariat document WT/COMTD/W/4 deserved careful consideration, andtheyrequested
theSecretariat tomake concrete proposals onhowtooperationalize such suggestions. Onedelegation
referred tothefactthatproviding credit andrecognition forliberalization measures undertaken inthe
context ofadjustment programmes sponsored bytheInternational Monetary Fund andtheWorld Bank
waspartofthemandate given totheWTO tobring greater coherence toglobal economic policy-making.
Ontheother hand, anumber ofdelegations stressed thatcredit andrecognition hadbeendealtwith
intheUruguay Round andthat,while theywelcomed autonomous liberalization measures, these were
primarily tothebenefit ofthecountries liberalizing.
15. TheCommitteenotedthatdiscussionswerecurrentlybeingheldintheCommitteeonAgriculture
onhowtooperationalize theDecision onMeasures Concerning thePossible Negative Effects ofthe
Reform Programme onLeast-Developed andNetFood-Importing Developing Countries .TheChairman
noted thatwhile duplication ofwork should beavoided totheextent possible, delegations could raise
relevant matters intheCommittee onTrade andDevelopment.
ItemE Annual review oftheapplication ofspecial provisions intheMultilateral Trade
Agreements andrelated Ministerial Decisions infavour ofdeveloping country
Members, andinparticular least-developed country Members
- Supervision oftheimplementation ofGATT 1994PartIVandtheEnabling
Clause
16. Twoissues were addressed under thisitem: theGeneralized System ofPreferences (GSP)
andpreferential agreements among developing countries. AtitsFourth Session, theCommittee took
noteofthewritten information onGSPschemes provided bytheUnited States (WT/COMTD/N/1
andAdd.1), Japan (WT/COMTD/N/2 andAdd.1), European Communities (WT/COMTD/N/4 and
Corr.1),NewZealand(WT/COMTD/N/5)andNorway(WT/COMTD/N/6).Italsotooknoteoffurther
oralclarifications. Concern wasexpressed bysome developing country Members relating totheWT/SPEC/17
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introduction ofnewconditions under some GSPschemes, aswellaschanges regarding beneficiary
countriesofGSPschemes.TherepresentativeofMexicorequestedthatMembersconsiderthepossibility
ofmaking available information regarding GSPschemes through Internet.
17. TheCommittee 'swork relating topreferential arrangements among developing countries was
addressed inboththeThird andFourth Sessions. AttheThird Session, theCommittee adapted the
terms ofreference oftheWorking Party ontheSouthern Common Market (MERCOSUR) Agreement -
established bytheGATT 1947Committee onTrade andDevelopment -toreflect therelevant changes
necessary foritsexamination under theGATT 1994. AttheFourth Session, theCommittee tooknote
ofboththewritten andoralinformation regarding theestablishment ofaCommon Market forEastern
andSouthern Africa (WT/COMTD/N/3). Italsotooknoteoftheinformation provided byASEAN
countries concerning theASEAN FreeTrade Area (WT/COMTD/3) andoftheMemorandum of
Understanding onCloser Relations between Bolivia andMERCOSUR (WT/COMTD/4).
Item F Annual review ofWTO technical cooperation activities astheyrelate todeveloping
country Members
18. TheCommittee addressed thisitematitsFourth Session. Anumber ofdelegations commended
thetechnical assistance services oftheSecretariat. Support wasalsoshown forthepriority given
toAfrican countries andforthespecial contribution made byNorway totechnical cooperation activities.
Some delegations requested thatthetechnical assistance provided bytheSecretariat bebroadened so
toinclude capacity-building anddiversification oftrade capacities. TheCommittee tooknoteofthe
ECU 1.1million thattheEuropean Communities (EC)wasmaking available foratechnical assistance
programme infavour ofAfrican, Caribbean andPacific (ACP) countries. Thisprogramme, being
elaborated jointly bytheEC,theWTO Secretariat andtheACP Secretariat, would becomposed of
eight regional seminars -totakeplace in1996 -aiming atinforming boththepublic andtheprivate
sectors oftheresults oftheUruguay Round andidentifying policy measures which could beadopted
toassist theACP countries toobtain themaximum benefits from theRound.WT/SPEC/17
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ANNEX 1
Observers intheCommittee onTrade andDevelopment
UNbodies andspecialized agencies:
Economic Commission forAfrica (ECA)
Economic Commission forEurope (ECE)
Economic Commission forLatin America and
theCaribbean (ECLAC)
Economic andSocial Commission forAsiaand
thePacific (ESCAP)
Food andAgriculture Organization (FAO)
International Monetary Fund (IMF)
United Nations Conference onTrade and
Development (UNCTAD)
United Nations Industrial Development
Organization (UNIDO)
World Bank
World Food Council (WFC)Other organizations:
Andean Group Secretariat
Caribbean Community Secretariat
(CARICOM)
Central African Customs andEconomic
Union (UDEAC)
Commonwealth Secretariat
Cooperation Council fortheArab States of
theGulf(GCC)
European FreeTrade Association (EFTA)
Inter-American Development Bank (IDB)
International Wheat Council (IWC)
Latin American Integration Association
(ALADI)
Latin American Economic System (SELA)
Organization ofAmerican States (OAS)
Organization forEconomic Cooperation and
Development (OECD)
Secretariat oftheGeneral Treaty onCentral
American Economic Integration (SIECA)WT/SPEC/17
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ANNEX 2
Tentative 1996 Work Programme oftheCommittee onTrade andDevelopment
A. Review oftheimpact oftheresults oftheUruguay Round ondeveloping country Members,
inparticular ontheleast-developed country Members.
B. Review oftheparticipation ofdeveloping country Members inthemultilateral trading system.
C. Provision ofguidelines forWTO technical cooperation activities astheyrelate todeveloping
country Members.
D. Consideration ofmeasures andinitiatives toassist intheexpansion oftrade andinvestment
opportunities (including support formeasures oftrade liberalization) ofdeveloping country
Members, inparticular theleast-developed country Members.3
E. ReviewoftheapplicationofspecialprovisionsintheMultilateralTradeAgreementsandrelated
Ministerial Decisions infavour ofdeveloping country Members, andinparticular least-
developed country Members.
F. Review ofWTO technical cooperation activities astheyrelate todeveloping country Members.
G. Notification obligations
Items ofthework programme willbeaddressed inaccordance withthefollowing timetable:
3Thisinclude thequestions ofcredit andrecognition forautonomous trade liberalization measures andof
netfood-importing developing countries.WT/SPEC/17
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FirstSession (5March 1996)
ItemB
ItemG
Second Session (18June1996)
ItemA
ItemC
ItemD
Third Session (15October 1996)
ItemE
ItemFWT/SPEC/17
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ANNEX 3
Programme ofWork oftheSub-Committee onLeast-Developed Countries
1. Consideration ofthespecial andspecific problems ofleast-developed countries (LLDCs).
2. Consideration ofspecific measures toassist andfacilitate theexpansion ofLLDCs 'tradeand
investmentopportunities,withaviewtoenablingthemtoachievetheirdevelopmentobjectives.
3. Review oftheoperation ofthespecial provisions intheMultilateral Trade Agreements and
related Ministerial Decisions infavour ofLLDCs andmaking recommendations tothe
Committee onTrade anDevelopment foraction.WT/SPEC/17
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ANNEX 4
Checklist ofDocuments Prepared forMeetings ofthe
Committee onTrade andDevelopment in19954
Procedural andinstitutional matters
Programme ofWork for1995 WT/COMTD/W/2/Rev.1
Rules ofProcedure forMeetings ofthe WT/COMTD/6
Committee onTrade andDevelopment
Sub-Committee onLeast-Developed Countries
Decision fortheEstablishment oftheWTO WT/COMTD/2
Sub-Committee onLeast-Developed Countries
Note ontheProceedings oftheFirstMeeting WT/COMTD/LLDC/1
Review oftheimpact oftheresults oftheUruguay Round ondeveloping country Members, in
particular ontheleast-developed country Members
Preliminary Information onNotifications WT/COMTD/W/1 andAdd.1
tobeRequired from WTO Members -
Note bytheSecretariat
Uruguay Round Commitments Undertaken WT/COMTD/W/5
byDeveloping Country Members -
Note bytheSecretariat
4Only finalversions ofdocuments.WT/SPEC/17
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Regulatory Obligations andOther Implications WT/COMTD/W/6
oftheUruguay Round Agreements -
Note bytheSecretariat
Matrix onRegulatory Obligations andOther Implications WT/COMTD/W/6/Add.1
oftheUruguay Round Agreements -Addendum -
Note bytheSecretariat
Review oftheparticipation ofdeveloping country Members inthemultilateral trading system
Notes ontheParticipation ofDeveloping Countries WT/COMTD/W/11
intheMultilateral Trading System -
Note bytheSecretariat
Guidelines forWTO technical cooperation
Technical Cooperation Activities oftheWTO - Note dated 3April 1995
Informal Note bytheSecretariat
Technical Cooperation oftheWTO - WT/COMTD/W/7
Relations withOther International Organizations -
Note bytheSecretariat
Examination ofcredit andrecognition forautonomous trade liberalization measures
Credit andRecognition forAutomous Liberalization Measures - WT/COMTD/W/4 andCorr.1
Note bytheSecretariatWT/SPEC/17
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Review oftheapplication ofspecial provisions intheMultilateral Trade Agreements andrelated
Ministerial Decisions infavour ofdeveloping country Members, inparticular least-developed
country Members
WTO Measures Relating toDeveloping Country Members - WT/COMTD/W/10
Note bytheSecretariat
Notes ontheParticipation ofDeveloping Countries WT/COMTD/W/11/Add.1
intheMultilateral Trading System -Addendum -
Note bytheSecretariat -Generalized System ofPreferences
- Supervision oftheimplementation ofGATT 1994PartIVandtheEnabling Clause
Southern Common Market (MERCOSUR) Agreement - WT/COMTD/1
Updated TextoftheReplies
ASEAN Preferential Trading Arrangements - WT/COMTD/3
Information submitted bytheASEAN Members
Memorandum ofUnderstanding onCloser WT/COMTD/4
Relations between Bolivia andMERCOSUR -
Communication from theRepublic ofBolivia
Working Party ontheSouthern Common Market WT/COMTD/5
(MERCOSUR) Agreement -Terms ofReference
Generalized System ofPreferences - WT/COMTD/N/1 andAdd.1
Notification bytheUnited States
Generalized System ofPreferences - WT/COMTD/N/2 andAdd.1
Notification byJapan
Common Market forEastern andSouthern Africa WT/COMTD/N/3WT/SPEC/17
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Generalized System ofPreferences - WT/COMTD/N/4 andCorr.1
Notification bytheEuropean Communities
Generalized System ofPreferences - WT/COMTD/N/5
Notification byNewZealand
Generalized System ofPreferences - WT/COMTD/N/6
Notification byNorway
Annual review ofWTO technical cooperation activities astheyrelate todeveloping country
Members
Technical Cooperation withDeveloping Countries - WT/COMTD/W/12
Note bytheSecretariat
Notifications
Notification Requirements Related totheWork of Note dated 13.11.95
theCommittee onTrade andDevelopment -
Informal Note
Report ofthemeetings
Note ontheMeeting of5April 1995 WT/COMTD/M/1
Note ontheMeeting of5July1995 WT/COMTD/M/2
Note ontheMeeting of14September 1995 WT/COMTD/M/3 andCorr.1
Note ontheMeeting of17November 1995 WT/COMTD/M/4