WORLD TRADE
ORGANIZATION
RESTRICTED
WT/COMTD/SE/M/11
4 July 2005
(05-2887)
Committee on Trade and Development
Eleventh Dedicated Session
NOTE ON THE MEETING OF 25 MAY 2005
Chairman: H.E. Mr. Gomi Tharaka Senadhira (Sri Lanka)
A.
ADOPTION OF THE AGENDA ........................................................................................................ 1
B.
COMMUNICATION FROM ANTIGUA AND BARBUDA, BARBADOS, BOLIVIA, CUBA,
DOMINICA, DOMINICAN REPUBLIC, EL SALVADOR, FIJI, GRENADA, GUATEMALA,
HONDURAS, JAMAICA, MONGOLIA, NICARAGUA, PARAGUAY, SOLOMON ISLANDS,
ST. KITTS AND NEVIS, ST. LUCIA, ST. VINCENT AND THE GRENADINES AND TRINIDAD
AND TOBAGO - "WORK PROGRAMME ON SMALL ECONOMIES: AN APPROACH TO
FRAMING RESPONSES TO THE TRADE-RELATED PROBLEMS OF SMALL ECONOMIES "
(WT/COMTD/SE/W/13) ............................................................................................................ 1
C.
OTHER BUSINESS ........................................................................................................................ 7
A.
ADOPTION OF THE AGENDA
1.
The Chairman recalled that the draft agenda for the meeting was contained in
Airgram WTO/AIR/2570 issued on 13 May 2005 and a revision, WTO/AIR/2570/Rev.1, issued on
23 May 2005.
2.
The agenda was adopted.
B.
COMMUNICATION FROM ANTIGUA AND BARBUDA, BARBADOS, BOLIVIA, CUBA, DOMINICA,
DOMINICAN REPUBLIC, EL SALVADOR, FIJI, GRENADA, GUATEMALA, HONDURAS, JAMAICA,
MONGOLIA, NICARAGUA, PARAGUAY, SOLOMON ISLANDS, ST. KITTS AND NEVIS, ST. LUCIA,
ST. VINCENT AND THE GRENADINES AND TRINIDAD AND TOBAGO - "WORK PROGRAMME ON SMALL
ECONOMIES: AN APPROACH TO FRAMING RESPONSES TO THE TRADE-RELATED PROBLEMS OF SMALL
ECONOMIES " (WT/COMTD/SE/W/13)1
3.
The Chairman noted that the main item on the agenda of the meeting was a new submission
received from the group of proponents. Before going into a discussion of this submission, he wished
to summarize the work that had been done in the previous meetings of the Dedicated Session. He said
that the first meeting of the Dedicated Session this year was held on 21 February 2005. That meeting
was conducted in both formal and informal mode and focused on two main points. The first point
discussed concerned the three-step approach for advancing the Work Programme on Small
Economies. The three steps were:
1)
1
to consider the use of characteristics to identify what could be accepted as small,
vulnerable economies – without naming any group of countries;
Since the meeting of 25 May 2005, Mauritius and Papua New Guinea have said they wished to join
the other 20 proponents as co-sponsors of the paper now issued as document WT/COMTD/SE/W/13/Rev.1.
WT/COMTD/SE/M/11
Page 2
2)
to consider the trade-related problems which could reasonably be attributed to those
characteristics – without naming any group of countries; and
3)
to frame responses to those trade-related problems – without naming any group of
countries.
4.
He said there were some differing views about the order in which the three steps should be
addressed. That is, whether to start with one, then go to two, and then to three, or whether to start
with one and two together before going on to three. He said that on the whole, Members appeared to
prefer an approach which addressed one and two together, followed by three at a later stage. A
second point which was discussed at the last meeting concerned a new proposal by a group of
countries – islands and landlocked nations – which provided an indicative list of specific
characteristics and problems. The proposal was contained in document WT/COMTD/SE/W/12.
5.
The Chairman recalled that at the previous meeting of the Dedicated Session, which took
place on 6 April 2005 in both formal and informal mode, the Dedicated Session discussed the Work
Programme and agreed, in order to advance the Work Programme and deliver concrete results by the
Sixth Ministerial conference, that it would be necessary to have informal meetings about once a
month. The Dedicated Session also continued its discussion of document WT/COMTD/SE/W/12. In
response to the comments made by Members, a three-pronged approach was proposed to examine the
characteristics and problems. This approach included identifying the following: 1) areas where a
WTO solution could be found; 2) areas where WTO solutions may be available, but need to be
combined with assistance from other agencies; and 3) areas where a solution might lie elsewhere
(outside the WTO).
6.
The Chairman noted that discussions on document WT/COMTD/SE/W/12 were concluded in
an informal meeting held on 12 April 2005. At that meeting, the group of proponents announced that
they would be submitting a new paper which could take the discussions into the "solution phase".
7.
The Chairman asked if any of the delegations which had co-sponsored the
document WT/COMTD/SE/W/13 would like to take the floor to introduce the submission to the
Dedicated Session.
8.
In reference to the proposal WT/COMTD/SE/W/13, the representative of Barbados made an
intervention, which is reproduced below.
Intervention by Barbados:
Since Members have only just received the paper, let me first of all apologise for its
late delivery to the Secretariat. We had an original draft which was used in some
small group consultations and the wealth of comments, questions and feedback led to
quite a bit of re-drafting which did take us some time. Chair, let me thank Members
for their most valuable feedback.
Now to the paper. It is appropriate, in the circumstances, that we present the paper in
a little more detail than we normally would.
Mr. Chairman, this paper is seeking to do three things:
1. Confirm the assertion that the WTO can respond to characteristics within the
ranks of developing countries – because it has done just that in the past;
WT/COMTD/SE/M/11
Page 3
2. Advance the characteristics approach by pointing to some possible
responses to the trade-related problems arising from the intensity and the
combination of characteristics that gives rise to the vulnerability of small
economies;
3. Persuade Members that the small, vulnerable economies are not seeking to,
nor are they expecting to take anything away from LDCs nor from
developing countries generally.
Introduction
The paragraph 35 mandate is well known. In addressing the trade-related issues,
Members have adopted an approach that seeks to avoid forming any new category.
The Dedicated Session has reported to the General Council accordingly at its meeting
of 15 February 2005.
Members will recall that decisions based on the needs and concerns of certain
developing countries have been taken into account at Ministerial Conferences and at
the General Council. We have given three examples: one relates to "net food
importing developing countries", another to "subsistence and resource poor farmers".
Mr. Chairman, in paragraph 1(d) of the July 2004 Decision, under the rubric of
"Other Development Issues", there is mention that "special attention shall be given to
the specific trade and development related needs and concerns of developing
countries". The paragraph then ends with the statement which reads in part "(T)he
trade-related issues identified for the fuller integration of small, vulnerable economies
into the multilateral trading system, should also be addressed ....". Now, I wish to
draw your attention specifically to the phrase "should also be addressed". In other
words, Members agreed to address the concerns of developing countries, and also
address issues related to the small, vulnerable economies.
In
document
WT/COMTD/SE/W/13,
we
have
referred
to
document WT/COMTD/SE/W/12 and indicated how we have reached where we are
in the work programme – emphasizing that none of the characteristics and problems
by themselves can be assumed to be unique to small, vulnerable economies.
However, it is the combination and intensity of several of the characteristics and
problems that give rise to the vulnerability of which we speak.
The Way Forward
Being aware that paragraph 35 of the Doha Declaration states, in part, that "(T)he
General Council shall review the work programme and make recommendations for
action to the ... Ministerial Conference," we see the way forward as follows:
(i)
Consider this paper as providing a basis for a CTD report to the
General Council before the end of July;
(ii)
Pursue examination in the CTD of more concrete responses to
the trade-related problems of small, vulnerable economies with a
view to also providing more detailed inputs to the relevant
negotiating bodies;
WT/COMTD/SE/M/11
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(iii)
Continue examination of the responses in the CTD as well as
their progress in the negotiating bodies where relevant and
inform the General Council accordingly.
Finally, our expectation for this year is that: on the basis of the progress made in the
CTD, through to November, and on the recommendations from the General Council,
the Sixth Ministerial Conference shall adopt decisions for the meaningful
implementation of concrete measures designed to address the problems of small,
vulnerable economies.
Please note that the concrete measures are not included in this paper – we have only
pointed to them.
Considerations for Responses to Trade-Related Problems
Mr. Chairman, this paper WT/COMTD/SE/W/13 is a bridge between
WT/COMTD/SE/W/12 and the concrete proposals which we shall table next. The
section of the paper with the sub-heading "Considerations for Responses to
Trade-Related Problems" forms the central span of the bridge. Here we list some of
the things we want Members to take into consideration when we begin to examine
concrete responses to be tabled next.
Permit me to draw attention to one item in this indicative list, by way of example.
In the Uruguay Round, small, vulnerable economies undertook commitments, some
of which have resulted in severe difficulties. Mr. Chairman, I know some other
developing countries are having difficulties as well, but we again wish to repeat that it
is the combination and the intensity of the difficulties, coupled with the lack of
resilience faced by these small economies in implementation and in economic
adjustment etc. that gives rise to their vulnerability.
Elements of Responses
Mr. Chairman, in view of the above considerations, Members are asked to examine
the following non-exhaustive "Elements of Responses" proposed as components of a
holistic response to the trade-related problems of the small, vulnerable economies.
Concrete responses along these lines will be further elaborated at the next stage.
Permit me again to draw attention to just one of these twelve items in this indicative
list, by way of example (see item 5). With regard to subsidies and countervailing
measures, decisions should be taken in order to allow small, vulnerable economies to
better respond to the needs of their small business sector. Mr. Chairman, small
business in a small economy deserves special consideration; and no affordable level
of support can distort world trade.
Conclusion
In conclusion Mr. Chairman, the responses at which we aim are not attempting to
minimize the flow of special and differential treatment to developing countries, but
merely to build on them. The responses we seek are also not intended to, and cannot
in any way, undermine the special treatment being extended to LDCs.
WT/COMTD/SE/M/11
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We must recognize that trade is not a zero-sum game. We will seek nothing that
takes away something from other developing countries. Remember small is small.
The paragraph 35 mandate should only be interpreted as offering an opportunity for
Members to recognize the particular circumstances of the small, vulnerable
economies and to frame responses accordingly. Members have, on more than one
occasion in the past, addressed peculiar concerns of some developing countries. The
small, vulnerable economies now seek your support – and we shall listen carefully.
9.
The representative of the Domincan Republic expressed her support as a co-sponsor of the
paper that was introduced by the representative of Barbados. She felt dialogue was the only way in
which progress could be achieved on a mandate which was of great importance to the
Dominican Republic. The paper presented summarized the work done pursuant to the mandate in
paragraph 35 of the Doha Declaration. She hoped that substantial progress could be achieved and that
concrete decisions could be taken at the forthcoming Hong Kong Ministerial. The documents
contained some of the answers that might be used as a basis for recognizing the specific situation of
small economies and could lead to the adoption of specific measures that would solve these unique
problems, thereby contributing to the integration of small economies into the multilateral trading
system. She noted that as regards the negotiations in NAMA and agriculture, it was a matter of
special importance for her country that a degree of flexibility be extended with regard to tariff
reductions, bearing in mind that as a small economy it had significantly low bound tariffs and had no
scope for granting financial support to its farmers. In the Services sector she felt that significant
measures needed to be adopted in order to give access to services from the smaller economies,
particularly in mode four, so that the sector would generate employment and economic development.
She also hoped that the document submitted would facilitate discussions and allow the Committee to
table specific proposals to the different negotiating bodies. Such a mandate could be the result of a
recommendation by the General Council.
10.
The representative of Honduras stated that discussion of this matter was of the utmost
importance and that his delegation was keen for it to be given effect through concrete action at the
Ministerial Conference in Hong Kong, China. Document WT/COMTD/SE/W/13, like the other
papers that had been submitted, aimed to move forward the mandate on small economies. He noted
that small economies certainly shared a number of characteristics and problems with other developing
countries, but that they were undoubtedly more vulnerable because of the effects that the combination
of the characteristics and the severity of the problems produce. This was clearly illustrated by what
occurred in Honduras when it was devastated by Hurricane Mitch in late October – early
November 1998. In its report "Honduras: Evaluation of the damage caused by Hurricane Mitch,
1998 - Implications for economic and social development and the environment", the Economic
Commission for Latin America and the Caribbean (ECLAC) said that a preliminary estimate assessed
the direct and indirect damage to the economy at just under four billion dollars, i.e. 70 per cent of
Growth Domestic Product (GDP) for 1998, including the destruction of capital goods and production.
In some cases, the GDP growth rates of other countries in the region were not affected.
11.
He explained that this was one example of how vulnerable small economies were to such
events and that this demonstrated the need for mechanisms to alleviate and provide solutions to the
ensuing problems. He also realized that other circumstances besides natural disasters could affect a
country and cause serious problems.
12.
He said the paper submitted set out a number of considerations and suggested elements to
contribute to a response to the concerns of small economies, concerns regarding issues of interest to
the small economies, in particular the inclusion of special flexibilities in the agriculture and NAMA
negotiations.
WT/COMTD/SE/M/11
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13.
Lastly, he pointed out that Honduras took the current negotiations very seriously. Bearing in
mind that Honduras' share of world trade was only 0.03 per cent and that its economy was largely
agricultural, he said that, the modalities that would be adopted should be in keeping with the level of
development of small economies.
14.
The representative of El Salvador, as a co-sponsor of document WT/COMTD/SE/W/13,
remarked that the document sought to ensure continuity in the discussions that had developed in the
course of previous meetings, formal and informal, in which the Dedicated Session had structured its
efforts to identify the characteristics and problems of the small and vulnerable economies and to find
different ways of achieving their effective integration into the world trading system.
15.
In that context, the group of proponents had presented in document WT/COMTD/SE/W/13
the general foundations on which they thought it would be possible to construct the solutions to the
real problems confronting the small and vulnerable economies.
He said
document WT/COMTD/SE/W/13 referred to a number of different areas. He thought it was
important to stress the interest that had been shown in the agriculture and NAMA negotiations, in
which Members would be trying to find common ground in order to help with the integration of small
economies into the multilateral trading system. He trusted that small economies would encounter the
required flexibility in this respect. Similarly, he singled out the negotiations on services and trade
facilitation as two areas in which small economies had high hopes of achieving the necessary leeway
for a proper and effective integration into world trade. He was aware of the pressing need for
concrete proposals in these areas if the Dedicated Session was to make any headway in its work; in
fact, this was one of the worries that had been expressed by certain delegations in bilateral meetings.
The delegation of El Salvador was working together with other delegations to submit such proposals
in the near future. He emphasized that the number and magnitude of the different drawbacks and
problems that the small and vulnerable economies have to deal with called for the effective
introduction of solutions aimed at achieving their effective integration into the world trading system.
As Members came close to agreeing on a "first approximation", in July 2005 and possible results of
the Hong Kong Ministerial Conference, he highlighted the extreme importance of ensuring, that the
small and vulnerable economies were given the space to which they were entitled under the Doha
mandate and the Decision of 1 August 2004. Similarly, he stressed the importance of working
towards concrete results at the Ministerial Conference in December 2005. Finally, he thanked various
delegations for the valuable time they had spent conversing with the delegations of the small and
vulnerable economies, giving them a better opportunity to achieve their working objectives. He
hoped that small economies could continue to rely on this kind of accessibility in future. He noted
that his delegation was ready to continue discussing with all delegations that so wish in order to
achieve the objective pursued in accordance with the given mandate.
16.
The representative of Venezuela noted that the title of the paper presented in document
WT/COMTD/SE/W/13 differed from the title of the same document appearing in the agenda for the
meeting. He requested the Secretariat to clarify this issue.
17.
The Secretariat clarified that the correct name was that which appeared in document
WT/COMTD/SE/W/13. A revision of the Airgram (WTO/AIR/2570/Rev.2) would be issued to
rectify this oversight.
18.
The representative of Guatemala said that as Members sought to make constructive headway
with the Work Programme in the CTD and under the auspices of the General Council, the small
economies had been working extremely hard, both amongst themselves and in consultations with
various Members. The document presented today, which Guatemala fully supported, was further
witness to the intensity of their work. This was an issue of vital significance for Guatemala. In the
current state of the discussions, Guatemala believed that it was important to direct efforts towards
developing general lines of action that would lead to concrete solutions. The solutions should address
WT/COMTD/SE/M/11
Page 7
the fundamental considerations underlying the small economies' insignificant share in international
trade (0.04 per cent in the case of Guatemala) and the ensuing limitations faced in the multilateral
trading system. It was, therefore, necessary to adopt elements that should be viewed and approved as
lines of action for the small economies' participation in the Doha Development Round. This would
offer the Ministers a large window of opportunity for framing a positive response to the multilateral
trading system, so as to promote broader and growing participation of small economies in
international trade and thus contribute to their economic development and poverty reduction
strategies. As an initial step, his delegation believed that special emphasis should be placed on all
negotiating areas, and specially on products and services of export interest to small economies. The
negotiations on rules and procedures in the WTO should take into special account the particular
interests of small economies and the features that cause the vulnerability of such economies, in
particular, their limited institutional capacities and capacity to take on commitments. Small
economies should be given the flexibility they need to implement the commitments negotiated in
agriculture and non-agricultural products, which were two areas of critical importance to them. In
services too, his delegation thought that the negotiations should address the interests of small
economies, especially in areas which they consider should be opened up, for example under Mode 4.
As regards the negotiations on trade facilitation, he believed it was necessary to accommodate the
particular needs of small economies. The technical assistance and capacity-building element was
most important in this negotiating area. The delegation of Guatemala stood ready to work
constructively to fulfil the paragraph 35 Ministerial mandate and to secure a positive outcome for the
forthcoming Ministerial Meeting in Hong Kong, China.
19.
In resuming the meeting in formal mode, the Chairman noted that during the discussions, the
Dedicated Session had heard different views on how to address the characteristics and problems
presented by small economies. The Dedicated Session had been assisted in this task by the interesting
ideas that were presented in document WT/COMTD/SE/W/13. He thought the discussion at the
meeting had laid the foundations upon which the Dedicated Session could start to frame responses to
the trade-related issues and problems raised so far by the proponents. The Chairman remained
optimistic about delivering on the mandate of the Dedicated Session, but noted that there was still
much to accomplish before the December Ministerial.
The Dedicated Session would have to
redouble its efforts.
C.
OTHER BUSINESS
20.
There were no items discussed under other business. The meeting was adjourned.
__________