WT/COMTD/74
Page 1

World Trade
Organization
WT/COMTD/74
29 November 2011
(11-6236)

REPORT (2011) OF THE COMMITTEE ON TRADE AND DEVELOPMENT

I.introduction

  1. This report covers the work of the Committee on Trade and Development (CTD) in 2011. An overview is provided of the work of the CTD's Regular Session and Dedicated Session on Small Economies, the CTD's work on Aid for Trade, and the work of the SubCommittee on LeastDeveloped Countries.[1]

II.regular session

  1. The CTD in Regular Session held three formal meetings on 31March (81st Session), 21 June and 5 July (82nd Session) and 14November 2011 (83rd Session). The minutes of these meetings are contained in documents WT/COMTD/M/81, WT/COMTD/M/82 and WT/COMTD/M/83[2], respectively. At the 81stSession, the Chairmanship was handed over from Ambassador Erwidodo (Indonesia) to Ambassador Mothae Anthony Maruping (Lesotho).
  1. The CTD continues to have outstanding requests for observer status from the League of Arab States, the Organization of the Petroleum Exporting Countries (OPEC), the Gulf Organization for Industrial Consulting (GOIC), the Organisation internationale de la Francophonie, the Common Fund for Commodities (CFC), the Organization of Arab Petroleum Exporting Countries (OAPEC) and the Groupe de la Banque Africaine de Développement. At the 82nd and 83rd Sessions, the Arab Group called for an early resolution to the issues surrounding requests for observer status by intergovernmental organizations, specifically highlighting the League of Arab States, according to the existing rules of procedure. Other Members felt that this was a broader, cross-cutting issue.
  1. Members agreed to continue to invite a number of intergovernmental organizations on an adhoc meeting-by-meeting basis. These include the Arab Maghreb Union (AMU), the Economic Community of West African States (ECOWAS), the Economic Cooperation Organization (ECO), the Inter-Arab Investment Guarantee Corporation, the Islamic Development Bank (IDB), the African Union (AU), the Organization of the Islamic Conference (OIC), the South Centre, the Pacific Islands Forum, the United Nations Environment Programme (UNEP), the West African Economic and Monetary Union(WAEMU), and the World Intellectual Property Organization (WIPO). A full list of intergovernmental organizations with observer status in the Committee is contained in document WT/COMTD/W/22/Rev.6.
  2. The principal themes addressed by the CTD in Regular Session during the period covered in this report included the following:
  1. Technical cooperation and training;
  2. Notifications regarding market access for developing and least-developed countries (LDCs);
  3. Report of the Joint Advisory Group on the International Trade Centre UNCTAD/WTO;
  4. Modalities to implement the Transparency for Preferential Trade Arrangements (PTAs);
  5. Hong Kong Decision on duty-free and quota-free (DFQF) market access for LDCs;
  6. Electronic commerce;
  7. Consolidating and mainstreaming development in the World Trade Organization;
  8. Participation of developing countries in the multilateral trading system.

A.technical cooperation and training

  1. At its 82nd Session, the Committee took note of the Annual Report on Technical Assistance and Training, 1January to 31 December 2010 (WT/COMTD/W/178), and of the Technical Cooperation Audit Report for 2010 (WT/COMTD/W/177 and WT/COMTD/W/177/Corr.1[3]). The Biennial Technical Assistance and Training Plan for 2012 and 2013 (WT/COMTD/W/180) was adopted at the 83rdSession.

B.notifications regarding market access for developing andLeast-developed countries (LDCs)

  1. In 2011, notifications under the Enabling Clause concerning Generalized System of Preferences (GSP) schemes were made by the European Union (WT/COMTD/N/4/Add.5), Japan (WT/COMTD/N/2/Add.15) and Switzerland (WT/COMTD/N/7/Add.4). Notifications were also made to the CTD concerning India's Duty Free Tariff Preference (DFTP) Scheme for LDCs (WT/COMTD/N/38), China's duty-free treatment for LDCs (WT/COMTD/N/39 and WT/COMTD/N/39/Add.1) and Chinese Taipei's duty-free treatment for LDCs (WT/COMTD/N/40).[4]
  2. With regard to regional trade agreements (RTAs), a notification under the Enabling Clause was made concerning the IndiaMalaysia Agreement (WT/COMTD/N/37). The Committee also took note of a biennial report to the WTO (for the period 1 January 2008 to 31 December 2009) by the Latin American Integration Association (WT/COMTD/72).
  1. The RTA notifications concerning the Gulf Cooperation Council (GCC) Customs Union, the ASEAN-Korea Agreement and the India-Korea Agreement continued to be discussed in the CTD during 2011. The communication from China, Egypt and India titled "Systemic and specific issues arising out of the dual notification of the Gulf Cooperation Council Customs Union" (WT/COMTD/W/175) was presented. During the 81st, 82nd and 83rd Sessions these Members also raised a number of specific and systemic concerns over the legal and procedural implications of RTAs notified under both the Enabling Clause and GATT Article XXIV. The Chairman's consultations on these issues remained inconclusive.

9 bis.Members continued to express divergent views on how to deal with the issues relating to the RTAs notified under both the Enabling Clause and GATT Article XXIV and their implications.

C.report of the joint advisory group on the international trade centre unctad/wto

  1. The Joint Advisory Group (JAG) on the International Trade Centre UNCTAD/WTO (ITC) held its 44th Session from 16 to 17 December 2010. The report on that meeting is contained in documentITC/AG/(XLIV)/238). The Executive Director of the ITC, when presenting the report at the 82nd Session, said that the JAG had provided the ITC with useful guidance on its annual programme of work and had acknowledged the impact of the ITC's capacity building work. The Group appreciated the ITC's growing emphasis on regionally structured solutions, while stressing the importance of the country ownership of projects. The ITC was encouraged to ensure that multi-country programmes contributed to regional integration. The Group had expressed satisfaction at the progress made in embedding results-based management into the ITC's work, and had encouraged the organization to work further in this direction. The Grouphad additionally taken note of the Consolidated Programme Document for 2010 and of the draft 2011 Operational Plan, and had endorsed the proposal to move the JAG meeting from December of each year to the second quarter of the year. The CTD took note of the JAG report and forwarded it to the General Council for adoption.

D.modalities to implement the transparency mechanism for preferential trade arrangements (PTAs)

  1. At the 82nd Session, the Committee agreed to a number of modalities to implement the Transparency Mechanism for PTAs (WT/L/806). As part of these modalities, a standard format for the notification of PTAs to the CTD was adopted (WT/COMTD/73).

E.hong kong decision on duty-freeand quota-free(DFQF) market access for LDCs

  1. The Decision taken at the Hong Kong Ministerial Conference on DFQF market access for LDCs remains a standing item on the CTD's agenda. Information was shared and clarification was sought on the steps being taken by Members to provide DFQF market access to LDCs' products, including in respect of preferential rules of origin. The LDCs took the floor at each of the formal meetings of the CTD, calling for an expeditious and faithful implementation of the Decision.

F.electronic commerce

  1. At the 83rd Session, the Committee considered a communication from Cuba, Ecuador, Nicaragua, the Plurinational State of Bolivia and the Bolivarian Republic of Venezuela titled "Effective participation of developing countries in electronic commerce as a means to combat poverty" (WT/GC/W/635-G/C/W/650-WT/COMTD/W/179, and its addendum). The Committee took note of the communication.

G.consolidating and mainstreaming development in the world trade organization

  1. At the 83rd Session, the Committee considered a communication from the African and Arab Groups titled "Consolidating and mainstreaming development in the World Trade Organization" (WT/COMTD/W/182). A number of questions were raised and clarifications sought. The Chairman encouraged the proponents to continue to engage with Members in order to make progress on the proposal.

H.participation of developing countries in the multilateral trading system

  1. In order to assist the Committee with its requirement to keep under continuous review the participation of developing country Members in the multilateral trading system, the Secretariat prepared a report (WT/COMTD/W/181) highlighting salient features concerning the participation of developing economies in the global trading system. The findings of the report were presented to the Committee at its 83rd Session. The Committee took note of the report.

III.DEDICATED session on small economies

  1. Pursuant to paragraph 35 of the Doha Ministerial Declaration, the General Council, at its meeting on 1 March 2002, took note of the framework and procedures for the conduct of the Work Programme on Small Economies. The CTD was instructed to oversee this programme of work in dedicated sessions. At the Hong Kong Ministerial Conference, Ministers reaffirmed their commitment to the Work Programme on Small Economies and urged the adoption of specific measures that would facilitate the fuller integration of small, vulnerable economies into the multilateral trading system, without creating a sub-category of WTO Members. The CTD was mandated to continue the work in dedicated session and to monitor progress of the small economies' proposals in the negotiating groups and other bodies.
  2. In 2011, the CTD in Dedicated Session held one formal meeting on 10 and 13 October on the Work Programme on Small Economies. It was chaired by Ambassador Mothae Anthony Maruping (Lesotho) and the minutes of the meeting are contained in document WT/COMTD/SE/M/22.[5] At the meeting, the Secretariat presented and Members took note of an updated version of the compilation paper (WT/COMTD/SE/W/22/Rev.6) containing all the proposals made to date by the proponents of small and vulnerable economies in the negotiating groups and other WTO bodies. Members then proceeded to finalize the Dedicated Session's report to the General Council contained in document WT/COMTD/SE/7.

IV.AID FOR TRADE

  1. The CTD held four sessions on Aid for Trade in 2011, on 16February, 12April, 24June and 10November. The February meeting was chaired by AmbassadorErwidodo (Indonesia). The April meeting was exceptionally chaired by Ambassador Shree B.C.Servansing (Mauritius). The other meetings were chaired by Ambassador Mothae Anthony Maruping (Lesotho). The minutes of the meetings are contained in documents WT/COMTD/AFT/M/19,WT/COMTD/AFT/M/20, WT/COMTD/AFT/M/21 and WT/COMTD/AFT/M/22[6], respectively. The Third Global Review of Aid for Trade was held on 18 and 19July 2011. Aid for Trade was also included as an agenda item for discussion at the General Council on 26July 2011.
  2. The format of each CTD Aid-for-Trade session followed the five headings of the 2010-2011 AidforTrade Work Programme[7], namely resource mobilization, mainstreaming, implementation, monitoring and evaluation, and the private sector. The sessions provided Members with an opportunity to consider and discuss progress in implementation of the Work Programme and for different partners and organizations to report on their respective Aid-for-Trade related work. A background document prepared by the Secretariat was circulated in advance of the February and June sessions.[8]
  3. Two dedicated thematic workshops were held under the auspices of the CTD in 2011 as follows: Workshop on Small, Vulnerable Economies (SVEs) and Aid for Trade held on 16February; and Workshop on Aid-for-Trade Case Stories held on 23 June.
  4. At the CTD's 19thSession on Aid for Trade, the World Bank reported on the replenishment of the International Development Association-16 and provided information on the Bank's Aid-for-Trade operations, namely, its Group-wide Trade Strategy, two new regional strategies on the Bank's partnership with Africa ("Africa's Future and World Bank Support to it") and the Arab world ("Arab World Initiative"), and its private sector outreach activities on Aid for Trade. The Enhanced Integrated Framework (EIF) provided information on its activities. Dominica provided an overview of a conceptual proposal the SVEs were developing. UNECE provided information on events relating to the Aid-for-Trade Roadmap for UN Special Programme for the Economies of Central Asia (SPECA)[9] which included a review meeting held in Baku, Azerbaijan on 1 and 2December 2010. The ITC announced plans to extend its impact assessments of private sector mainstreaming efforts on demand and utilization of Aid-for-Trade funds. The Secretariat provided an overview of the events held to support Members in the M&E process leading up to the Third Global Review of Aid for Trade. These included: a training event for the Pacific Island Countries held in Nadi, Fiji on 9 and 10December 2010; a regional training event and forum for the Caribbean held in Barbados on 2527January 2011; and a meeting for the West African region held in Abuja, Nigeria on 1921January 2011. The Secretariat provided a brief report on the Workshop on SVEs and Aid for Trade held prior to the CTDAid-for-Trade meeting and also gave a preliminary overview of the status of submissions of completed Aid-for-Trade questionnaires and case stories.
  5. At the CTD's 20thSession, the Director-General provided information on the preparations for the Third Global Review of Aid for Trade. The OECD provided an overview of the 2009 AidforTrade flows and informed that detailed information on the flows would be reported fully in the joint OECD-WTO Aid for Trade at a Glance 2011 publication being prepared for the Global Review. The European Union announced the imminent release of its 2011 Aid for Trade Monitoring Report and Canada provided information on its multilateral 2009-2014 Aid for Trade initiative aimed at the Americas and Africa. UNCTAD reported on its efforts in support of the Aid-for-Trade Initiative. The AfDB informed about its Regional Integration Strategy Papers for Southern, Central, South, and North Africa and the IaDB gave an overview of decisions taken at the Bank's Annual Meeting and the focus and results of its Aid-for-Trade related projects and interventions in Latin America. UNECE provided an update of its Aid-for-Trade related work, including in respect of the SPECA Initiative, and UNDP informed on the status of its publication on trade mainstreaming in national development strategies. The World Bank provided details of its work with the private sector, which included a complementary AidforTrade case story exercise, announced the completion of its Group-wide Trade Strategy, and reported on a recently-held Expert Group Meeting on Trade Facilitation. The OECD reported on the Experts Workshop on Implementation of Aid for Trade organized on 29 March and the ITC reported on its private sector case studies which were being prepared as a contribution to measuring the effectiveness of Aid for Trade. The Secretariat gave an update on the preparations for the Third Global Review of Aid for Trade.
  6. The CTD's 21stSession focused on the preparations for the Third Global Review and the preparation of the joint OECD-WTO Aid for Trade at a Glance 2011publication. The DirectorGeneral provided an update on the M&E work and noted the success of theAid-for-Trade case story exercise. The World Bank introduced the key elements of the final version of its Groupwide Trade Strategy, profiled two Bank trade initiatives (the Transparency in Trade Initiative and the Central Africa Trade Facilitation Project), and informed of its soon-to-be released study on impact evaluations of Aid for Trade and the joint WB/WTO call for case stories to the private sector. The European Union presented an overview of the findings of its 2011 Aid-for-Trade Monitoring Report and the United States provided information on its African Competitiveness and Trade Expansion Initiative. Gabon, Indonesia, Dominica, the Pacific Islands Forum Secretariat, UNECA and UNCTADreported on recently-held Aid-for-Trade related events. These included preparatorymeetings for a Regional Review of Aid for Trade for Central Africa held in Libreville, Gabon on 25and 26 May, the Regional Review Meeting on Aid for Trade held in Jakarta, Indonesia on 14 June, the ACP High Level Meeting on Aid for Trade held on 22 June and the Third Aid-for-Trade Roundtable Meeting held in Nadi, Fiji on 28April. UNESCAP informed about its range of AidforTrade related programmes aimed at improving developing countries' business environment and productive capacity. The Secretariat also provided a brief report on the Workshop on AidforTrade Case Stories held prior to the CTD Aid-for-Trade meeting.
  7. The Third Global Review of Aid for Trade took place on 18 and 19 July 2011. It provided an opportunity to evaluate progress since the Second Global Review and highlighted that concrete positive results had been achieved. Sessions focused on the key objectives of the Review, namely showing outcomes and impacts of Aid for Trade, and included discussions on the role of Aid for Trade in consolidating recovery and stimulating growth; from project results to development impact; promoting food security through enhanced trade capacity; delivering on trade facilitation gains; accessing global private sector value chains; overcoming obstacles to regional trade integration in Africa; Aid for Trade in Latin America and the Caribbean, the Pacific and Asia; South-South cooperation; and taking monitoring and evaluation forward. A report of the Third Global Review is reproduced in document WT/COMTD/AFT/W/28.
  8. Aid for Trade was discussed at the General Council on 27July 2011. The DirectorGeneral reported on the Third Global Review and reiterated his suggestion made at the Review that "Deepening Coherence" should be the focus of the new 2012-2013 work programme. A number of delegations spoke in support of the orientation of the future work programme as outlined by the Director-General. The report of the General Council debate is contained in document WT/GC/M/132.
  9. The CTD's 22ndSession on Aid for Trade agreed on a draft Aid-for-Trade Work Programme as contained in JOB/DEV/12/Rev.2 to be issued under the responsibility of the CTD Chairman. The work programme covers the period 20122013 and is focused around the following headings: resource mobilization, mainstreaming, regional dimension, private sector, and monitoring and evaluation of implementation and development effectiveness. The aim of the work programme is to promote deeper coherence and an on-going focus on Aid for Trade, notably on showing results, which will generate continued impetus to the implementation process. The work programme, which is complemented by an annex setting out an indicative list of activities planned to implement the programme, will be submitted to the General Council.
  10. The 22nd Session also considered a communication from Barbados on behalf of the Small, Vulnerable Economies as contained in WT/COMTD/AFT/W/29/Rev.1. A number of questions were raised and clarifications sought. In addition, updates were provided on Aid-for-Trade activities (ongoing and planned) by the African Development Bank, OECD, UNCTAD and the World Bank.

V.Sub-Committee on Least-developed countries

  1. During the period under review, the SubCommittee on LeastDeveloped Countries (hereafter the Sub-Committee) held five formal meetings on 18March, 5 May, 7 July, 19 October and 8November 2011. The minutes of the meetings are contained in documents WT/COMTD/LDC/M/58,WT/COMTD/LDC/M/59,WT/COMTD/LDC/M/60, WT/COMTD/LDC/M/61 and WT/COMTD/LDC/M/62, respectively.[10] The first meeting of the year was chaired by Ambassador Jean Feyder (Luxembourg). All other meetings were chaired by Ambassador Steffen Smidt (Denmark), who was elected Chairman at the 81st Session of the CTD on 31 March 2011. The delegation of Bangladesh acted as the Coordinator of the LDCs in all the meetings of the SubCommittee in 2011.
  2. The work of the SubCommittee has mainly focused on the implementation of the WTO Work Programme for the LDCs adopted by Members on 12February2002.[11] The subjects considered under the Work Programme during the reporting period were: (i) market access for LDCs; (ii)traderelated technical assistance and capacitybuilding initiatives for LDCs; and (iii) accession of LDCs to the WTO. In addition, an exchange of views on the possible update of the Work Programme took place at the 61st Session. The other issues considered were: (i) the Fourth United Nations Conference on the LDCs (LDC-IV); (ii) a proposal of the LDC Group concerning the establishment of a Work Programme on Post-Accession for the recently acceded LDCs; and (iii) preparations for the Eighth Ministerial Conference of the WTO.

(i)Market Access for LDCs