WORLD TRADE
ORGANIZATION
RESTRICTED
WT/COMTD/SE/M/8
11 March 2005
(05-1037)
Committee on Trade and Development
Eighth Dedicated Session
NOTE ON THE MEETING OF 3 NOVEMBER 2004
Chairman: H. E. Mr. C. Trevor Clarke (Barbados)
Subjects discussed:
A.
ADOPTION OF THE AGENDA ........................................................................................................ 1
B.
DOHA WORK PROGRAMME ON SMALL ECONOMIES ................................................................... 1
C.
OTHER BUSINESS ...................................................................................................................... 13
A.
ADOPTION OF THE AGENDA
1.
The draft agenda for the meeting as contained in Airgram WTO/AIR/2408 of
15 October 2004 was adopted.
B.
DOHA WORK PROGRAMME ON SMALL ECONOMIES
2.
The Chairman said this item calls for a review of work and proposals submitted to date. He
said that under this item, it is also proposed that Members engage in an exchange of views on the
decision adopted by the General Council on 1 August 2004. He reminded Members that this decision
was also known as the "July Decision" and that it was contained in document WT/L/579. He said he
was very interested to hear how Members viewed the development aspects of the Decision and
especially how the Decision impacted on the CTD's work in the Dedicated Session. He suggested that
Members review the status of the work programme, examine the impact of the July Decision and
outline how the CTD in Dedicated Session should conduct its future work given the time line stated in
the July Decision.
3.
The representative of Barbados welcomed participants to the 9th Geneva Week for
non-resident Members and Observers. She said Geneva Week provided a useful opportunity for
non-resident delegations to participate more actively in the work of the WTO. She said it was well
known that many of the WTO non-resident Members were also small economies and that a successful
and significant outcome to the Work Programme on Small Economies would greatly enhance the
chances for such countries to integrate themselves into the multilateral trading system. She
emphasized that the present meeting was the first Dedicated Session to be held since the adoption of
the "July Decision". She said the current meeting was a good occasion to discuss the momentum
which had been generated by the July Decision and to plan for the next phase of work. She said the
mandate required that Members first identify the issues or problems which constrained the trade of
small economies, then frame responses for solutions to the constraints and then formulate
recommendations for action to address the trade-related issues pertaining to small vulnerable
economies. She said that in the two years since the commencement of substantive work in the CTD
Dedicated Session small economy delegations had sought to fulfil all three of the components of the
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paragraph 35 mandate.
In early 2002, a number of delegations tabled document
WT/COMTD/SE/W/1/Rev.1 which identified the trade-related issues of vital concern to small
economies and which constrained their ability to trade and to participate effectively in the multilateral
trading system. She said it was clear from that document and ensuing discussions that the range of
characteristics and constraints highlighted in document WT/COMTD/SE/W/1/Rev.1 afflicted a
diversity of countries. The linkages between these countries were that they all shared the constraints
of small economic size and vulnerability. She said several of the constraints identified by small
economies could be found in other developing countries and that it was the combination of these
disadvantages and the inability of small and vulnerable economies to deal with those disadvantages
which made small economies worthy of special trade consideration. Since June 2002 and May 2004,
documents WT/COMTD/SE/W/3, WT/COMTD/SE/W/10 and WT/COMTD/SE/W/11 had been
tabled by interested delegations. These documents contained proposals which sought to fulfil the
paragraph 35 objective of framing responses to trade-related issues identified for the fuller integration
of small and vulnerable economies into the multilateral trading system. The proposals had touched on
a diverse range of trade issues relating to market access for small economies, the flexibility necessary
for small economies to be able to participate effectively in and secure benefits from the multilateral
trade negotiations and other measures to address the inherent and structural constraints, disadvantages
and vulnerabilities of small economies. She added that the inability of small economies to use WTO
rules and procedures in the same way as other WTO Members was due to limited administrative,
financial and human capacities of small economies. Small economies also had difficulty ensuring
adequate representation in Geneva. Other concerns included the graduation of small economies from
LDC status and the accession of small economies to the WTO.
4.
She said that in connection with a review of the Work Programme on Small Economies, the
WTO Secretariat research provided an overview of the discussion of the small economy issue in
economic literature. It examined the issues of economic size and economic performance and
extracted from WTO Agreements the provisions which could potentially be of particular relevance to
small economies. Members had engaged in exhaustive discussions with a view to elaborating issues,
clarifying proposals and enhancing understanding. It was her view that collectively Members had
managed to obtain a greater level of appreciation of the various positions. She said, however, that a
significant amount of time has elapsed since the inception of the Work Programme for Small
Economies and despite attempts to transform some of the proposals into concrete recommendations
for action, Members had not yet managed to receive any results. It was her view that the time for
action had come.
5.
She said that on 1 August 2004, the General Council adopted document WT/L/579 which
contained paragraphs of specific relevance to small economies. Paragraph 1(h) of the Decision
affirmed the high priority given to the non-negotiating elements of the Doha Work Programme such
as paragraph 35. She said the same paragraph 1(h) also set the time frame for the Sixth Ministerial
Conference or the submission by the General Council of recommendations for action by Ministers in
the context of the Small Economies' Work Programme. She explained that the Ministerial Conference
from 14 to 18 December 2005 is the Dedicated Session's timeline for achieving a substantive,
concrete and conclusive outcome to the Work Programme on Small Economies. She explained that
document WT/L/579 also contained an element in sub-paragraph 1(d) entitled "Other Development
Issues". This paragraph affirmed the need for Members to give special attention to the specific trade
and development needs of developing countries during the course of the market access negotiations.
It also called for the trade-related issues relevant to small and vulnerable economies to be addressed in
order to achieve the fuller integration of these countries into the multilateral trading system. She said
it was the view of small economy delegations that the time had come for the concerns of small
economies to be examined and addressed in the context of the Doha negotiations, including the new
negotiations on trade facilitation and that this must be done in a manner which preserves the integrity
of the work programme under paragraph 35 of the Doha Declaration. She recalled that small
economy delegations make contributions in the Doha market access negotiations according to their
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capacity and that, overall, delegations accord great importance to the July Decision. She said they
remained eager to engage in constructive and results-oriented discussions with their trading partners.
6.
The representative of Paraguay said that in looking beyond the explicit acknowledgement
formulated in paragraph 35 of the Doha Declaration and July's General Council Decision, the issues
currently affecting small economies constitute a real and tangible problem. He explained that there
were many developing countries in the world, yet some found it particularly hard to integrate into the
globalized world economy, mainly because of structural and economic reasons: e.g. the absence of a
coastline, the dependency on limited export commodities and small markets. He added that the
problems affecting small and vulnerable economies had existed for a long time, but had grown worse
lately due to a number of factors including the pace of trade and communication and the growing
importance of the role of foreign direct investment in an economy's development. Consequently, the
gap that separated these countries from all other developing and developed countries had widened.
Such countries would be unable to bridge this gap unless special measures were adopted to provide
assistance. He said it was important to acknowledge this reality.
7.
He wanted to thank the Agency for International Trade Information and Cooperation (AITIC)
for making a valuable contribution to the debate in the form of their recent study entitled "Small and
Vulnerable Economies: The Specific Problems of Landlocked Developing Countries", which has
been distributed to all WTO Members. He said the study provided a clear description of his country's
situation and the various elements that had to be taken into account if it was to be addressed properly.
8.
He explained that various delegations which thought of themselves as "small and vulnerable
economies," had already formulated proposals within the framework of the Committee on Trade and
Development with a view to addressing the particular difficulties faced by these countries. They had
done so, however, without attempting to create a subcategory of countries within this organization.
Among them was Paraguay, which, in conjunction with Bolivia and Mongolia, has submitted
document WT/COMTD/SE/W/10 for discussion.
9.
The representative of Paraguay continued by saying that Members had at their disposal a
number of working papers designed to help reflect on the problem and to find valid solutions capable
of commanding consensus. The existing proposals might not, however, be enough, and he said his
delegation felt that several more should be put forward, especially by the developed countries which
had so far only commented and asked questions on the proposals submitted.
10.
In his opinion, the work carried out by the Committee on Trade and Development on devising
the Programme for Small Economies must have a fixed deadline, a date by which the task must be
completed. The Decision adopted by the General Council on 31 July appeared to indicate that the
work should be finished in time for the Sixth Ministerial Conference. Nevertheless, to ensure that
work was completed within the set time frame, he proposed that the Chair set a specific date close to
the Ministerial Conference in order to finalize the Programme for Small Economies. He wanted such
a programme to be adopted by the Ministers at their meeting in Hong Kong, China in December 2005.
11.
He stressed that the delegation of Paraguay appreciated the Chair's concern and effort to fulfil
the mandate conferred on the Committee. He suggested that the Chair convene a number of informal
meetings and consultations, not only between the delegations of small economies, but also with other
interested delegations, so that the problems involved in creating the Work Programme, along with
possible solutions, could be addressed in an informal atmosphere.
12.
He said he wanted to emphasize his delegation's satisfaction with the start of the work of the
Negotiating Group on Trade Facilitation. He felt that small economies, and particularly the
landlocked developing countries, were aware that a significant number of their concerns could be
addressed within the framework of these negotiations, above all those relating to the transit of goods
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through foreign territories, an essential factor in increasing exports and expanding the investment that
was needed in order to develop.
13.
The representative of Bolivia said he shared the views expressed by some delegations in the
room, particularly the statement made by the delegation of Barbados. He said he was anxious to make
progress on the Work Programme for Small Economies.
14.
He explained that all WTO Members endorsed paragraph 35 of the Declaration and the new
negotiating phase that began in July 2004. He said small economy issues were wisely included in the
development section of the July Decision and that the section required "the need to pay special
attention to the specific trade – and development–related needs and concerns - of the developing
countries". He said that in order to put guidelines in practice by the time of the Hong Kong
Ministerial, past proposals would have to be re-examined. He mentioned a recent document by the
AITIC which had been circulated to Members. He said the paper referred to the specific problems of
land-locked developing countries and that it might be useful in the Dedicated Session's discussions.
15.
The representative of Honduras said he endorsed the statement made by the delegation of
Barbados. He said Honduras attached great importance to the meeting because it was the first to take
place since the arduous task of completing the "July Decision". He said his country attached
considerable importance to the Work Programme on Small Economies and that his delegation had
co-sponsored a number of proposals which aimed at contributing to a constructive discussion and
achieving concrete results in this area. He explained that international trade played a key role in
promoting economic development. It could create jobs and help alleviate poverty. He recalled that
most of the Members of the WTO were developing countries and that a great many of them were
small economies that faced serious difficulties integrating into the world's trading system. The
programme agreed in Doha aimed at framing responses to trade-related issues for the fuller
integration of small economies into the multilateral trading system. He said that the objective of
paragraph 35 of the Ministerial Declaration was to find solutions to the problems experienced by
small economies.
16.
He explained that under the framework and procedures for the implementation of the Work
Programme on Small Economies of 1 March 2002, Members were urged to provide inputs to the
Committee on Trade and Development. A number of Members had submitted proposals. The
framework and procedures also ask the WTO Secretariat to provide information and relevant factual
analyses of a number of issues. He wished to express his appreciation for the work done by the WTO
Secretariat in three notes, each of which reflected outstanding research. However, he said the task
was not yet complete, especially since the mandate of the General Council clearly identified other
themes that called for additional work, more information on and further factual analysis of the impact
of the WTO rules on small economies, the constraints facing them and the consequences of trade
liberalization for those economies. He asked what needed to be done to give full effect to the
instructions given by the Ministers in Doha and the July Work Programme so that concrete results
could be achieved by the Ministerial Conference at the end of 2005.
17.
He said the WTO cannot make progress solely in areas of interest to a specific group of WTO
Members and that there would not be a balanced work programme unless its outcome took into
account the interests of small economies.
18.
The representative of the Dominican Republic said she endorsed the statement made by
Barbados. She referred to paragraph (d) of this reference document of the July Decision which
reaffirmed the commitment by Ministers, in paragraph 35 of the Doha Ministerial Declaration, to
establish a work programme to examine issues relating to the trade of small economies and to achieve
the fuller integration of these economies into the multilateral trading system. She said that in this
connection, the Dominican Republic wished to highlight the unique problems small economies faced
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and the barriers that were difficult for them to overcome. The latter included: low, if not insignificant
participation in world trade, a considerable dependency on exports and imports, concentration of
exports on a few products, dependency on just a few markets and frequent natural disasters.
19.
She said these difficulties were compounded by external factors such as the recent financial
crisis, which further increased the vulnerability of the Dominican Republic and led to a decline in
GDP and high inflation rates. She said that despite the efforts made by small economies to comply
with the rules and standards of the multilateral trading system, many of these very rules and standards
were a threat to economic, political and social stability since they imposed obligations without taking
into account the specificities and constraints of small economies. She added that the WTO Work
Programme on Small Economies should serve as a basis for recognizing the unique situation of small
economies and should prompt the adoption of specific measures aimed at resolving specific problems
and contributing to their integration into the multilateral trading system.
20.
The representative of Guatemala said his delegation wished to support the statement made by
Barbados, particularly the comments made on the approach that should be adopted in advancing and
structuring the issues of concern to small economies within the WTO.
21.
He said Guatemala attached great importance to the problems of small, developing
economies. In the context of the Doha Declaration, he said Guatemala, like many other countries in
the WTO, encouraged the need for WTO Members to respond to the difficulties facing small,
developing economies. He added that the July Decision, which was the result of arduous negotiation
among the WTO Members, built on the work carried out in Doha and promoted, in a new negotiating
context, the issue of small developing economies. He said it was an issue that had to be addressed
during the negotiations to ensure that these economies benefit and become more integrated.
22.
The representative of Antigua and Barbuda said he supported the statement made by
Barbados. He said he was especially pleased that the meeting of the Dedicated Session coincided
with Geneva Week which provided non-resident Members with a better understanding of how
multilateral trade rules are negotiated. He said every country faced limitations in the availability of
resources, but asked Members to imagine the dilemma of being small. In the world economy, he said
small economies were price takers. He explained that the markets of small economies were subjected
to international standards that did not take into consideration the constraints of small economies. In
addition, he said, Members only had to look at the devastating effect of natural disasters on small
countries like Grenada to understand the vulnerabilities of being small. He commended the General
Council Decision of 1 August 2004 for reaffirming the high priority placed on the small economies in
the "July Decision" and for reiterating the important work to be done on paragraph 35 of the Doha
Ministerial Declaration. He said the Hong Kong Ministerial Conference in December 2005 should
achieve a concrete outcome of the Work Programme on Small Economies. In any case, the integrity
of the Work Programme as mandated in paragraph 35 should be preserved. He concluded by saying
that his hope was for trade to contribute to the development of his government's citizens in a
meaningful way. He said this could be achieved through greater levels of flexibilities that would
allow small economies to integrate into the multilateral trading system. He said he looked forward to
a discussion on how to move the Work Programme for Small Economies forward in a universally
progressive way.
23.
The representative of Mauritius said he also supported the statement made by Barbados. He
said paragraph 35 of the Doha Ministerial Declaration conferred a crucial mandate to the WTO to
facilitate the integration of small vulnerable economies into the global trading system. He said this
political imperative was further emphasized in the Monterrey Consensus and at the World Summit on
Sustainable Development held in South Africa. He said it was not necessary to elaborate on the
specific problems faced by small and vulnerable economies since these had been fully explored in the
context of the Work Programme on Small Economies over the past two years. He said it was now
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time to change gear and work towards the construction of an operational set of recommendations that
would effectively assist countries facing such constraints. He explained that the July Decision had
infused a new dynamism into the WTO system and that the WTO had demonstrated that it could
deliver. He believed one such deliverable would be a workable package on small economies that
would address the development and trade-related needs of small economies. The July Decision had
fixed a time-line and required Members to submit recommendations to the Sixth Ministerial
Conference. He stressed that Members must therefore not miss this deadline. He said he had
emphasized that it was important that a real sense of ownership was built around the Work
Programme on Small Economies. This did not have to be viewed as being divisive or discriminatory.
It only meant addressing specific situations faced by specific countries by adapting the concept of
special and differential treatment so that it would address a diversity of development needs. He added
that the participation of developed and developing countries alike would be most appropriate.
24.
He added that as a small island developing state, Mauritius lived with a permanent
vulnerability and struggle to develop its economy. He said his delegation was eager to engage in this
new phase of work on small economies in the run-up to the Hong Kong Ministerial Meeting and that
he believed this could be done by calling a number of informal meetings to address the specifics and
to propose a set of acceptable recommendations.
25.
The representative of Trinidad and Tobago said her delegation supported the intervention
made by Barbados. She said it was important that the work conducted in the Dedicated Session now
become action oriented so that Members could fulfil the mandate under paragraph 35. She said
substantial work had already been done by several delegations and that Members now had to build on
this work to ensure that the needs of small and vulnerable economies were adequately addressed by
the WTO.
26.
The representative of Jamaica said she welcomed the Decision adopted by the General
Council on 1 August 2004 as it related to small economies. She added that the relevant paragraph of
the Decision – 1(d) did not only refer to the Small Economies Work Programme in paragraph 35 of
the Doha Ministerial Declaration, but also placed the issue of small economies within the context of
the ongoing market access negotiations. She expected Members to show a requisite level of
receptivity to proposals related to the interests of small economies in these negotiations. She added
that it was her understanding that in keeping with paragraph 1(h) of the July Decision and the Doha
mandate, the work on small economies should be reported to the Sixth Session of the WTO's
Ministerial Conference. She said her government wished to see an acceleration of the work on the
Small Economies Work Programme.
27.
The representative of Cuba said she supported the statements made by Barbados and other
delegations. She explained that paragraph 35 of the Doha Declaration and the relevant paragraphs of
the July Decision were a recognition by the multilateral trading system of the difficulties faced by a
group of countries due to a combination of internal and external factors. She said Members should
not miss the opportunity to formulate action oriented recommendations so they can be agreed by the
Ministerial Conference in Hong Kong, China in December 2005. She added that several studies
recognized vulnerability as an important limitation for the commercial performance of small
economies so it was incumbent on the WTO to address those issues related to trade and multilateral
rules that contribute to exacerbate these limitations. She explained that the reliance of these
economies on foreign trade and investment was widely known, as well as the limitations to develop
import substitution and export diversification policies. Exports from small economies were generally
based on a reduced range of goods and services and were concentrated towards the markets of a few
countries which generated a great dependency in their economic stability. She said that given their
insignificant trade volume in comparison with the dimension of the world market, small economies
had no control over the prices of their principal exports. These were mainly commodities. Small
economies could not influence their terms of trade. She thought that some disadvantages related to
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geographical situations. She said this affected the competitiveness of these economies and,
notwithstanding the efforts made, their integration in world trade. She added that the vulnerability
factor also limited foreign investment as small vulnerable countries were considered as high risk
countries by investors. In this sense, the work that Members could do to improve the rules and
regulations that hamper the efforts of small economies, was important. She explained that this should
also be reflected in an improvement of market access to revert the lack of commercial opportunities.
With this goal in mind, she said her delegation considered it critical to lift policies that distort trade
including unilateral trade measures that constitute serious limitations for the good trade performance
of some of these economies. She stressed that small economies should find an express recognition,
greater flexibility and treatment adjusted to their particular situation, that responded to their specific
developments needs. She said that these particularities were identified and brought to the attention of
Members in document WT/COMTD/SE/W/1/Rev.1 and that her delegation considered that it was
time to focus work on concrete actions and recommendations contained in documents
WT/COMTD/SE/W/3, WT//COMTD/SE/W/10 and WT/COMTD/SE/W/11. She said she supported
Paraguay's proposal for informal meetings to be convened, as required, to move forward the Work
Programme on Small Economies.
28.
The representative of Japan said paragraph 35 was highlighted in the July Decision and the
importance of small economies restated. He said Japan was ready to continue its work on this issue.
He added that Japan had requested more clarification on some of the specific proposals at the last
Dedicated Session in May 2004 and that he wished to emphasize that if the Dedicated Session was
now to discuss the proposals, Members should take into account the mandate given in paragraph 35 of
the Doha Declaration, namely to identify the specific difficulties for small economies and to discuss
the appropriate responses. He said Members should always keep in mind that no sub-category of
WTO Members should be created. A question raised in the past concerned whether the proposals
applied exclusively to small economies or whether they would also apply to other countries. He said
Members should concentrate on how they can respond within the mandate of the WTO. He said
proposals tabled at the meeting in May 2004 raised many points which were beyond the capacity of
the WTO. He said it was difficult for his delegation to accept that different and permanent treatment
should be granted to countries because it was geographic constraints. Finally, he said some of the
proposals raised so far have also been taken up in other forums in the WTO but in a broader context.
His delegation wished to avoid duplicating the work unless there is a specific agreement on a problem
being related to small economies. He added that his delegation looked forward to hearing more from
the proponents on their proposals.
29.
The representative of Rwanda said she agreed with the statement made by Barbados and
Paraguay. She said it was essential that Members advance work in this area and concentrate on
finding solutions. She was glad that the July Decision had set the deadline of the Sixth Ministerial
Conference. She said she agreed with the proposals to move ahead with work in informal sessions as
had been proposed. Finally, she wanted to also mention the category of small economies which are
also landlocked. Of the 31 landlocked countries in the world, 50 per cent of them were LDCs. This is
not just because of chance but because of structural difficulties which work against these countries
and keep them from being competitive. She added that these specific problems were also linked to
market access questions. She explained that her delegation was ready to work on the specific
proposals and achieve results before the Ministerial Conference.
30.
The representative of Chad asked whether or not the Work Programme for Small Economies
and especially the July Decision included issues concerning trade and cotton and whether work on
cotton in the Dedicated Session would be conducted in parallel with work to be carried out on the
recently established Sub-Committee on Cotton.
31.
The representative of the Solomon Islands said he supported the intervention made by
Barbados. He said the July Decision offered the opportunity for small economies to take their
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proposals directly to the negotiating bodies, especially in regard to preferences and market access. He
also said he was pleased that the focus on paragraph 35 was to be maintained.
32.
The representative of El Salvador said his delegation greatly valued the Work Programme for
Small Economies. He said it should be a concrete programme of work in conformity with the Doha
mandate and the July Decision adopted by the General Council. His delegation welcomed the
intervention made by Barbados. He said Ministers had confided in the Members to establish a
programme of work to examine questions of relevance for the trade of small economies and in this
way to achieve a better integration into the international trading system. He said his country
supported trade liberalization. However, it was also necessary to address concerns and limitations.
He said it was very important to use the mandate and work programme to achieve the objectives and
to arrive at concrete results in time for the next Ministerial Conference.
33.
The representative of Peru said his delegation supported the interventions by Barbados and
Paraguay. He said his delegation would like to reiterate a past request for concrete and specific
proposals to advance the work programme in a practical way. He said the mandate provided by
paragraph 35 of the Doha Declaration was also addressed in the July Decision adopted by the General
Council.
34.
The representative of Saint Lucia said he supported the intervention made by Barbados. He
said the challenge now was to move the debate away from just a discussion amongst small economies
to seriously engaging the wider membership and to do so in a more tangible way than had been done
before. He said there was a tremendous amount of work to do before the deadline or the next
Ministerial in Hong Kong, China. He said other Members needed to be convinced about what the
proponents were doing. Based on the report of the last meeting in May, it appeared there was not a
great understanding of the task of the Dedicated Session. He said that at the last meeting there were
several references to the fact that paragraph 35 stated that there was to be no new sub-categories of
countries. But, this is not what the Work Programme is about. He said that Ministers realized that
economic smallness imposed serious constraints on the development possibilities of countries and that
these related to the countries' inability to benefit from economies of scale. Both are known as being
essential to economic development and to a successful integration into the global economy. He said
the wider membership of the WTO needed to be convinced to examine the real problems. A subcategory was not the issue. He explained that Members needed to find some means of addressing the
constraints which small economies face. Unless the interests of small economies were taken into
account in Hong Kong, China a balanced outcome would not be possible. He said the responsibility
also lies with small economies themselves. They were to be the beneficiaries and have to present a
clear case to the Members. He said there were many, genuine developing country issues which
needed to be addressed during the round. However, the Small Economies Work Programme should
not be used as a convenient shopping list where every thing is added. He said there are certain
structural issues which developing countries faced such as issues of remoteness, issues of insularity
and issues related to lack of access to the sea. He said these issues are not issues of smallness. He
emphasized that smallness is a distinct concept and said that if the elements are confused, Members
would not be able to present proposals to the wider Membership which were sufficiently clear. He
added that action needed to be taken, but that such action needed to be accompanied by a change of
direction. He called for pragmatism and a focus on the concrete proposals.
35.
The representative of Fiji said that Fiji was a non-resident Member and lacked capacity to
follow all the work in Geneva. She supported the intervention made by Barbados and by Saint Lucia
and by the delegations of the Solomon Islands and the Pacific Islands Forum. She said it seemed that
there had not been much progress. Nevertheless, her delegation welcomed the developments of the
July Decision and hoped for some kind of resolution before the Hong Kong Ministerial Conference.
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Page 9
36.
The representative of the European Communities said he would try to answer the three
questions raised by the Chair. He agreed with Fiji that work in the Dedicated Session was not
progressing very quickly but said that that was because delegations had been working on other matters
since the last meeting in May. He said his delegation continued to fully support the objectives of the
work programme in terms of supporting the integration of small and vulnerable economies into the
trading system and doing so within the constraints of paragraph 35. He said the EC had taken part
both in formal and informal discussions on the proposals – particularly those in document
WT/COMTD/SE/W/3. He said the time may be right to re-visit some of these proposals. He said the
July Decision keeps the Doha Development Agenda firmly on track and that the Work Programme for
Small Economies remained an important part. He said he agreed with what some had already stated
in so far as in the WTO, an Organization with nearly 150 Members, the balance of interests had to be
in equilibrium for the Organization as a whole to move forward. The July Decision provided
momentum for the WTO and the Doha Agenda and the Dedicated Session to use that momentum.
Even if the reference to the work programme was short, it was a positive one and reiterated the
importance that was attached to the achievement of the specific mandate given in Doha. He said the
EC was ready to work with small economies and all other Members to move things forward. His
delegation was prepared to again look at the proposals that have been tabled so far. He added that
previous discussions had focussed on re-visiting some of the proposals in terms of some of the details.
He said his delegation had expressed an interest in looking more closely at proposals that dealt with
the development of regional capacity and institutional capacity in areas such as the rules concerning
trade defence instruments and rules for technical barriers to trade and sanitary and phytosanitary
measures. He agreed with many other delegations that the idea to hold meetings in informal sessions
could help move the work forward. He also agreed with Saint Lucia that Members should move
ahead with specific proposals in the context of specific constraints faced by small and vulnerable
economies in the hope of finding appropriate responses. He shared the view of others that some of the
issues in the proposals were not just limited to small economies and might concern other developing
countries as well. In those areas concerning specific WTO obligations and rights, his delegation
thought those issues should be addressed in the appropriate negotiating context whether that be in the
Agriculture group or the NAMA group or the new group on trade facilitation or in the area of rules.
In conclusion, he said the EC wished to reiterate its support for the work programme and its readiness
to work towards moving things forward.
37.
The representative of Costa Rica said that because of Members' efforts, the July Decision was
a success and represented a balanced package of results. He said that a way to work would be to
examine the special and differential treatment for small economies in the context of the multilateral
trading system. In this context, something which is often forgotten concerns the case of exporters.
He referred to interventions by Japan and Peru about how to conduct the work for small economies
but to do so in the context of the Doha mandate and without creating a sub-category of Members. He
said his delegation was ready to contribute in a practical and constructive way.
38.
The representative of St. Vincent and the Grenadines said he was concerned about the slow
pace of work on small economies to date. He said he supported the comments made by the delegation
of Barbados and explained that the Ministers in Doha recognized the difficulties of small economies.
He said the work to be done in Geneva involved putting together a work plan which moved towards a
balanced outcome. He called for greater political will to be shown by Members. He said countries
such as his did not have a presence in Geneva. He said it is occasions such as meetings of the
Dedicated Session that his voice had to be heard to relate the uniqueness of small economies. He
referred to Grenada and the recent devastating hurricane which ruined the island's infrastructure. He
hoped that in the run up to December 2005, work in Geneva would truly address the issues and result
in a roadmap that addresses the unique characteristics of small economies.
39.
The representative of the United States said she wished to thank Barbados for an overview of
the steps taken to identify some of the problems and challenges. She referred to certain Secretariat
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papers drafted in 2002 and said they could prove useful in furthering the Dedicated Session's work.
She said they contained useful analysis and background materials and explained that progress in the
working group was more likely in areas where proponents could articulate the unique characteristics
associated with small economies. She said she shared views expressed so far and those of Japan that
some of the proposals put forward to date did not reflect the unique characteristics of small
economies. These were still challenges in the working group. She said her delegation had found that
work in small groups was very useful in moving the process forward. The proposal from the US, both
in the Dedicated Session and in the subsidies working group, showed that her delegation was trying to
be pragmatic. She said Members had to keep pragmatism in mind. She said she was prepared to revisit some of the proposals which were on the table and that it was also important to engage the
broader Membership in finding solutions. She said there was a new momentum coming from the July
Decision and that it should be used. She added that the efforts by the various negotiating groups last
July had produced results. However, it was necessary to avoid duplicating work being undertaken in
other areas, in particular the work underway in the CTD Special Session. She also agreed with others
that work in the Dedicated Session in informal mode could help move the process forward.
40.
The representative of Colombia said her delegation welcomed and recognized the efforts to
address the specific concerns of small economies. Her delegation appreciated the past proposals and
believed that the debate which had been conducted over the last years had demonstrated the diversity
of the issues. She added that her delegation felt that the July Decision provided an appropriate
decision to continue examining the issues which were related to trade in order to better integrate small
economies into the multilateral trading system. She said her delegation wished to join others which
believed that some of the specific issues would have to be addressed in other negotiating fora where
solutions to specific concerns could be found without duplicating work. She thought it was important
that all the discussions and debates remain within the framework that was set up under paragraph 35
of the Doha Ministerial Declaration. She added that she agreed with Japan on the need for tangible
responses to the numerous questions which had been posed so far.
41.
The representative of Belize said the 8th Dedicated Session was important since it was the first
meeting on small economies since the agreement on the July Decision. She said she endorsed the
comments made by Barbados and others on the Work Programme on Small Economies and that she
looked forward to future proposals. She added that her government wished to associate itself with the
statements made by St. Lucia and St. Vincent and the Grenadines.
42.
The representative of Thailand said her delegation was interested in continuing work and that
she sympathised with the small economies. She said it was appropriate to discuss this issue and
paragraph 35 of the Doha Declaration in the context of the July Decision. She also said that at the last
meeting of the Dedicated Session in May 2004, there had been an understanding that there would be a
revised proposal outlining the problems faced by the proponents. She agreed with St. Lucia's
suggestion about providing clear examples of the difficulties faced by small economies but also with
Japan and others that some of the difficulties cited by the proponents were also common to other
developing countries.
43.
The representative of Mongolia said his country's annual volume of trade was small and
explained that his country was landlocked and was surrounded by two big commercial and economic
powers. He said Mongolia wanted to become more integrated in the world's trading system and to
benefit from the advantages of such an integration. He supported the statement made by Barbados
and other delegations which mentioned the very slow pace of work on the Work Programme for Small
Economies and said he agreed with those who wished to ensure that the Ministerial Conference in
2005 achieved tangible results for small economies. He also supported the idea of holding more
informal meetings and consultations for not only the delegations of small economies, but for all those
who were interested in addressing issues of concern to small and vulnerable economies.
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44.
The representative of St. Kitts and Nevis said he supported the comments made by Barbados,
St. Lucia and St. Vincent and the Grenadines. He said he came from a group of countries that was
non-resident in Geneva and that his country was small by definition. He explained that his country
had a population of 47,000 persons and a land mass of 108 square miles. Meanwhile, he said his
country's percentage of world trade was minimal. He added that the WTO should recognise such
facts and address such differences in the levels of development. He said the WTO should make
provisions so that countries like St. Kitts and Nevis could participate in the work of the WTO. He
explained that if it was not for the technical assistance received by the WTO for the various training
courses and the attendance at Geneva Weeks, it would not be possible for his government to follow
WTO issues. He said small, vulnerable states must be allowed some flexibilities if they are to
participate in the international trading system.
45.
The representative of Australia said a lot of good work had taken place in the Dedicated
Session and in those areas of the WTO where there were specific negotiating mandates. He said the
outcome of that work can clearly be found most recently in the July Decision which provided
Members with a forward looking work programme. He thought work in the Dedicated Session should
be further refined to identify what was specific to the Dedicated Session and to clarify the existing
proposals on the table.
46.
The representative of Cuba asked whether delegations wished to move forward within the
framework of the Doha mandate and the July Decision. She said she had taken note of the different
qualifications and the different positions of Members and that her delegation wished to move forward
on the basis of specific proposals which could be submitted in a timely fashion in the different
negotiations. She asked how the Dedicated Session was going to organize its work.
47.
The representative of Mexico said he wished to make three points: the first was that he
agreed with Saint Lucia's suggestion for the Dedicated Session to focus on clear examples of
specificities of small economies. He also agreed with Thailand that some of the situations addressed
so far also pertain to other developing countries. He added that it was very important to frame
discussions within paragraph 35 of the Doha Declaration and that any creation of a sub-category be
avoided. His third point was to avoid any overlap of work between work in the Dedicated Session
with work being carried out in other negotiating bodies.
48.
The Chairman said he wished to make a brief summary of the points raised. He was
heartened by the fact that so many delegations wished to move forward with the work programme,
especially given the importance of the Sixth Ministerial Conference in December 2005. He said it
was true that some questions and comments were made with respect to the lack of progress in the last
few months. He agreed with the EC that Members were very focused on trying to achieve something
not just for small economies but for the entire Doha work programme. However, he said it was now
time to move ahead. He had taken note that some Members were still expecting responses from the
proponents. He also noted the passionate contribution from St. Lucia and others that the Dedicated
Session needed to address the issue of smallness as a distinct concept and address the issues
associated with the challenges that small economies face. He said he agreed with some delegations
that Members needed "to bring the political will to resolve some of these problems". He also referred
to Paraguay's remarks on the need for inputs from major trading partners.
49.
The representative from Barbados said she wished to address some of the issues raised by
delegations during the course of the meeting. One of those concerned the paragraph 35 mandate
which explicitly says that there should be no creation of sub-categories. She said given the mandate,
it would be necessary to work constructively to achieve a concrete outcome of the work programme
on the basis of characteristics and needs of small economies. She explained that small economies'
delegations have often explained that the parameters of paragraph 35 relate to small economic size
and to vulnerability. These parameters reflect the diversity of characteristics mentioned or listed in
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document WT/COMTD/SE/W/1/Rev.1 and which have been referred to by many delegations
including the Dominican Republic and St. Lucia. She said the problems had been presented and, in
some instances also refined, in documents WT/COMTD/SE/W/3, WT/COMTD/SE/W/10 and
WT/COMTD/SE/W/11. She welcomed the opportunity to engage in consultations and to commence
on drafting responses and solutions. She said a second issue raised by many delegations was that
some of the issues raised by small economies in the various proposals were not unique to small
economies. She explained that during the course of discussions over the years it had become evident
that some of the constraints identified by small economies could be found in other developing
countries. She added that it was a combination of the disadvantages and the inability of small,
vulnerable economies to deal with these disadvantages which made small economies worthy of
special consideration. She further explained that it was this inability and lack of capacity to deal with
crises and shocks of all types which was a constant and underlying reality. She said the inability to be
resilient was due uniquely to the constraints of small size. This affected the ability of small
economies to trade and to participate in the multilateral trading system. She said she wished to draw
attention to the importance of the July Decision and to its importance to the next phase of the Work
Programme on Small Economies. She welcomed the willingness expressed by delegations to work
towards the Sixth WTO Ministerial Conference as the agreed time frame for the adoption of a
substantive, concrete and tangible outcome to the Work Programme on Small Economies.
50.
The representative of Paraguay said several delegations had raised the question of how work
on small economies was going to relate to work being conducted by the specific negotiating groups.
He said his delegation was concerned because work on small economies should have its own focus
and that was why the work programme should not lose sight of finding specific proposals for small
economies. He explained that in his opinion, the issues of concern to small economies would not be
treated in an adequate fashion in the negotiating groups and would not receive the attention they
deserve.
51.
The Chairman said Members certainly had a challenge before them. He said if a Member
raised a matter of interest to small economies but that the matter did not receive enough attention,
then the responsibility was for the Dedicated Session to address the matter. He explained that if the
CTD in Dedicated Session agreed on one or two or any number of proposals, then the CTD could
arrange for those proposals to be taken to the General Council. He explained that the mandate of the
Dedicated Session allowed the CTD to report to the General Council and that it was the responsibility
of the proponents to ensure that their concerns were addressed. He reminded Members that the
Committee was asked to address fuller integration or to frame responses for the fuller integration of
small, vulnerable economies and was asked to do so without forming any new category of Members.
He explained that it was important for the CTD to understand how it could move forward but within
the confines of paragraph 35. He suggested holding an informal session. He also wished to respond
to Cuba's concern of how the CTD would monitor work related to small economies if the CTD
decided to spread the work out into negotiating bodies. He added that this question arose in the CTD
Regular Session in regard to a discussion on commodities. He recalled that even though commodity
issues are also discussed in the NAMA and Agriculture negotiating groups, the CTD Regular Session
remained the central point for discussion on commodity issues. So, the CTD in Regular Session will
not be relinquishing any responsibility for the monitoring of progress of the commodity matters. He
said the CTD in Special Session recently called on Members to carefully monitor what special and
differential treatment matters were being addressed in the negotiating bodies. The call was for the
CTD in Special Session to establish a monitoring mechanism that could serve as a contact point for
Chairpersons and provide feedback from the Secretariat. This way the CTD in Special Session could
monitor the special and differential treatment work in other bodies.
52.
The representative of Cuba said her delegation thought it was very important to create a
mechanism which was coherent. Special and differential treatment was supposed to help Members
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address some of the specific problems. She thought the CTD could play a more important role in
backing the different proposals which had been submitted in the negotiating bodies.
53.
The representative of the Pacific Island Forum said she supported the intervention made by
Barbados. She said a window of opportunity was open to table proposals to the negotiating bodies
under paragraph 1(d) of the July Decision. She said it was the intention of the Forum to continue to
pursue the work programme under paragraph 35 of the Doha mandate and that it was committed to
achieving tangible results by the mid-term review in 2005 in preparation for the Sixth Ministerial
meeting in Hong Kong, China.
54.
The Chairman said a challenge in the WTO was to achieve elegant solutions. He said that if
there was a consensus on how to forward work in the CTD, then the CTD could make the necessary
recommendations to the General Council. He called for more informal meetings to meet that
objective.
C.
OTHER BUSINESS
55.
No issue was raised under "Other Business". The Chairman adjourned the meeting.
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