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8 September 2009
ORGANIZATION
(09-4222)
I. BACKGROUND
2. The Dialogue was a follow-up to the Secretariat Note1 on the "Accession of LDCs to the
WTO" presented at the 52nd Session of the Sub-Committee on Least-Developed Countries on
2
25 March 2009, under the agenda item: "Accession of Least-Developed Countries to the WTO". In
the discussions that followed the presentation of the Secretariat Note, LDCs requested for
consultations and dialogue.
3. The Dialogue initiated a process of deeper engagement between Members and acceding
LDCs to better understand the priorities, concerns and challenges faced by LDCs in their accession
process and to explore possible options within the framework of the 2002 Decision on Accession of
Least-Developed Countries (hereafter: the Guidelines).3
4. High-level representatives from ten of the 12 acceding LDCs participated at the Dialogue,
including several non-resident acceding LDCs attending Geneva Week. Fourteen Members, including
capital-based senior officials, attended the Dialogue. A list of participants at the Dialogue is at
Annex II.
5. The Dialogue was facilitated by the WTO Secretariat and Chaired by the Director,
Accessions Division. Introductory remarks were made by WTO Deputy Director-General
Alejandro Jara. He encouraged participants to elaborate on the concerns and pre-occupations facing
LDCs in the process of accession, including any issues arising from the implementation of the
Guidelines on LDCs' Accession. Participants were invited to use this forum to listen to one another
and to put forward suggestions to improve the process. The Director of the Accessions Division
1
The Note was requested by WTO Members in the Sub-Committee at its 51st Session in October 2008.
2
WT/COMTD/LDC/W/44.
3
WT/L/508: Accession of Least-Developed Countries. Decision of 10 December 2002.
WT/COMTD/LDC/15
Page 2
added that the Dialogue was initiating a partnership between Members and acceding LDCs to
exchange views on concerns, challenges and any recommendations for improvement in a pragmatic
and result-oriented manner. It was necessary that any suggestions for improvements were within the
existing 2002 Guidelines. The Chairman of the Sub-Committee on LDCs, H.E. Mr. Jean Feyder
(Luxembourg), welcomed the Dialogue as a follow-up to the discussions in the Sub-Committee in
October 2008 and March 2009. He said that greater attention would be paid to the accession
negotiations of LDCs as part of the mandate of the Sub-Committee.
7. The Executive Secretariat of the Enhanced Integrated Framework (EIF)4 and the World Bank5
were invited to make presentations. Acceding LDCs and Members participated actively at the
Dialogue.6
8. The forum provided an opportunity to exchange views on the accession of LDCs within the
framework of the 2002 Guidelines. Members reiterated their support for LDCs' accessions and their
commitment to the implementation of the Guidelines. Some stressed that the Guidelines were clear
and working and were an important foundation or "acquis" for work on LDCs' accessions in the
WTO. Other Members felt that there was scope to improve the implementation of the Guidelines as
there were differences with regard to interpretation. A summary follows of the issues that emerged in
the exchange of views on four areas: market access; WTO rules; process/procedures; and, technical
assistance.
A. MARKET ACCESS
9. Acceding LDCs noted that the Guidelines stated that, "WTO Members shall exercise restraint
in seeking concessions and commitments" and that "acceding LDCs shall offer reasonable
concessions and commitments". However, they also noted that there were different interpretations of
these terms by WTO Members and acceding LDCs during the bilateral market access negotiations.
There were no standards although there were qualifications in the Guidelines such as "taking into
account the levels of concessions and commitments of existing WTO LDCs' Members". Some called
for greater predictability in the market access negotiations with consideration given to the special
circumstances of individual acceding LDCs. They suggested that benchmarks or criteria be
developed to implement the Guidelines. They recalled, for example, that a proposal for fast-track
procedures put forward by a Member before the 1999 Seattle Ministerial Conference had suggested
average bindings of 40 per cent on agriculture and 30 per cent for industrial products.
10. Members stressed that flexibility was the essence of the market access negotiations. There
was no "one size fits all". Each acceding LDC was unique. For countries dependent on tariff
revenues and with a higher/differentiated tariff structure, ceiling bindings of 30 or 40 per cent did not
leave policy space while for countries with low applied rates the same bindings would provide no
discipline. It was noted that the market access negotiations did not focus on tariffs alone but also
4
Mrs. Dorothy Tembo, Executive Director of the Enhanced Integrated Framework (EIF) Secretariat.
5
Mr. Richard Newfarmer, Special Representative of the World Bank to the United Nations and the
WTO.
6
Bhutan, China, Comoros, European Communities, India, Lao PDR, Nepal, Tanzania (Co-ordinator,
WTO LDCs' Consultative Group), Ukraine, United States, Samoa, and Yemen spoke at the Dialogue.
WT/COMTD/LDC/15
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covered non-tariff barriers and services. There was diversity in the services commitments of existing
WTO LDC Members. Market opening could attract investment. Noting the wide variation in the
commitments undertaken by LDCs, one Member suggested that the "average" level of commitments
undertaken by existing LDC Members could be considered in examining the application of the
Guidelines. Some Members highlighted the progress made in the bilaterals with individual acceding
LDCs and stated that the Guidelines had and would be taken into account.
B. WTO RULES
11. Acceding LDCs noted that in relation to WTO rules, the Guidelines provided for special and
differential treatment; transition periods and transitional arrangements, based on action plans; and,
optional participation in sectoral market access initiatives and plurilateral trade agreements. Acceding
LDCs suggested that a reference to the special and differential treatment provisions applicable to
LDCs should be reflected in the Protocol of Accession. Longer transitional periods would be
preferred. It was suggested that requests for transition periods should be based on action plans setting
out timeframes for implementation and the technical assistance needed for legislative changes,
training, etc. They stated that acceding LDCs had been requested to join plurilateral trade
agreements/optional sectoral market access initiatives but had expressed their inability to participate.
12. Members stressed that the benefits from membership accrued to those who participated fully
in the rights and obligations of the multilateral trading system. Time was required to coordinate with
the relevant domestic stakeholders and enact legislative reforms. Flexibility was important. Some
indicated that they would devote more staff resources and explore scope to accelerate progress in the
multilateral negotiations with acceding LDCs. Noting the difficulties in implementing plurilateral
trade agreements/optional sectoral market access initiatives, a Member suggested that it would not be
practical to expect acceding LDCs to join these initiatives or plurilateral trade agreements.
C. PROCESS/PROCEDURES
13. Acceding LDCs stressed that WTO accession was important for economic and trade
integration. They highlighted the length and complexity of the accession process and the challenges
faced by acceding LDCs. The challenges included the political will needed to accelerate the
negotiations and pursue domestic reforms; the internal coordination required to negotiate accession
terms; human and institutional capacity constraints; and, the challenges posed by non-residency. The
2002 Guidelines on "process" provided for the availability of the good offices of the Director-General
to assist acceding LDCs and the chairpersons of Working Parties. They also provided for general and
specific measures to streamline the accession process/procedures for acceding LDCs. Steps taken to
implement the Guidelines were noted, among which were the establishment of WTO Reference
Centres; the continued availability of the good offices of the Director-General to assist acceding
LDCs; and, several high-level visits by Chairs of Working Parties and the Secretariat.
14. Acceding LDCs offered several suggestions namely to: i) continue the process of developing
and applying simplified and streamlined accession procedures for LDCs; ii) reducing the time
between the establishment and the scheduling of the first meeting of the Working Party; iii) according
greater attention and support to non-resident delegations; iv) providing opportunities for Recently
Acceded Members (RAMs) and LDC Members to share best practices and experience with acceding
LDCs; v) holding more bilateral negotiations in acceding LDCs and increasing the use of electronic
means in communication; vi) simplifying or updating accession documents/checklists (examples:
structures of the Memorandum on the Foreign Trade Regime (hereafter: MFTR), Factual Summary,
and WT/ACC/5); vii) enhancing the role of the Chairs of Working Parties and the good offices of the
Director-General in facilitating LDCs' accession negotiations; viii) presentation of annual progress
reports on accessions to Members by the Director-General; and, ix) periodically holding an informal
dedicated session of the General Council on accessions.
WT/COMTD/LDC/15
Page 4
15. Members recognized that the accession process was lengthy and complex for all acceding
governments. Exercise of the balance of rights and obligations by a Member required detailed
knowledge of WTO rules and capacity to implement them. It was noted that if being an acceding
country was difficult, membership was difficult too. Thorough knowledge of the rules-based system
was necessary in order to enjoy the benefits of membership. Some stressed the importance and the
value of the accession process itself. Pursuing reforms and putting in place an economic and trade
regime in conformity with WTO rules and requirements were beneficial for the acceding government
and required time and the involvement of several stakeholders. It was observed that the accession
process better prepared a country to use membership to its advantage. Others, however, felt that the
process was not streamlined enough and called for the speedy conclusion of LDCs' accessions.
Members needed to work together to expedite the accession process and give adequate political and
technical attention to accessions.
D. TECHNICAL ASSISTANCE
16. Acceding LDCs said that a flexible approach was needed to provide technical assistance to
acceding LDCs. The pace of the accession process and the technical assistance required, varied with
the capacity and specificity of each individual acceding country. Acceding LDCs at the initial stages
of the process expressed a need for assistance in the preparation of the MFTR and for increasing
awareness and understanding of the WTO and its Agreements. Those at more advanced stages
requested more focussed support, including assistance targeted at line ministries. Acceding LDCs
suggested that national coordination teams or task forces required support; additional WTO Reference
Centres within LDCs should be established; and assistance was urgently required to support the action
plans for implementation of the WTO Agreements.
17. The Executive Director of the EIF Secretariat signalled that an Action Plan to support the
accession process would be developed with acceding LDCs. The EIF Trust Fund was operational and
there was approximately US$64 million to support Tier I and II projects. The EIF was "demand-
driven" and could support the 12 acceding LDCs, at various stages, of the accession process. The
Executive Director elaborated on the assistance available to support the accession process under Tier I
of the EIF Trust Fund. DTIS implementation could be fast-tracked and projects could be developed
from the accession chapters (action matrices) of these studies. There would be an effort to further
develop Action Plans on the margins of the meeting of EIF Focal Points.
18. The World Bank said that the WTO accession process was lengthy and costly, but provided
an opportunity for governments to introduce competitiveness factors into their overall development
strategies. Technical assistance for the accession process was available and "tailor-made" to the
individual needs and requests of the acceding governments. Support was provided in coordination
with other agencies and bilateral donors. The World Bank signalled that resources and support would
be available to acceding LDCs that presented their priorities and requested assistance for accession at
the country-level.
19. Members emphasized the need for technical assistance to support the accession processes of
LDCs. Some noted that in light of the human and institutional capacity constraints faced by LDCs,
technical assistance was the most important aspect of the Guidelines. The Guidelines had encouraged
the provision of technical assistance to acceding LDCs. Several Members elaborated on their bilateral
assistance programmes to acceding LDCs. Donor coordination existed to ensure assistance was
provided. Some Members underlined the importance of supply-side measures to complement the
accession process. The importance of Aid for Trade, EIF and other programmes was also highlighted.
Acceding LDCs were strongly encouraged to elaborate their specific needs in order to obtain donor
assistance.
WT/COMTD/LDC/15
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20. In concluding remarks, the Secretariat noted that the objective was to initiate a process of
dialogue between Members and acceding LDCs. The dialogue had been constructive with pragmatic
engagement by all participants. In their presentations, acceding LDCs had drawn attention to their
concerns and challenges with suggestions for the improvement of the implementation of the existing
2002 Guidelines. The opportunities for assistance from the World Bank and the Secretariat of the EIF
were welcomed. WTO Members engaged on the issues, stated their positions and exchanged views
on the way forward.
21. All participants had expressed the wish to work within the existing Guidelines; and no
participant had suggested the need for any new Guidelines. LDCs had made suggestions on areas
where they would like further engagement with Members with a view to improving the
implementation of the existing Guidelines. It was noted that LDCs had indicated that issues
pertaining to their accessions could be raised with Members at the 7th WTO Ministerial Conference, to
be held from 30 November to 2 December 2009.
22. On next steps, the WTO Secretariat informed participants that a report of the Dialogue would
be sent to the Director-General; and, the Secretariat would report to the Sub-Committee on LDCs
through its Chairman. Members and acceding LDCs would continue with the process of engagement.
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WT/COMTD/LDC/15
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ANNEX I
PROGRAMME
Purpose: The Secretariat, at the request of Members, presented Note WT/COMTD/LDC/W/44 to the
Sub-Committee on LDCs on 25 March 2009. Participants welcomed the Note, expressed a range of
views and requested the Secretariat to further build on the Note. LDCs requested consultations on
their accessions. The purpose of this dialogue is to initiate a sustained process of engagement
between Members and Acceding LDCs to better understand real difficulties and concerns and explore
possible solutions within the framework of the Guidelines on LDCs' Accession. This dialogue is
being organized during Geneva Week to benefit from the presence of Non-Resident LDCs.
• Market Access
o Mr. Nagib Hamim, Yemen (Co-Focal Point)
• WTO Rules
o Ms. Nella Tavita, Samoa
• Process/Procedures
o H.E. Mrs. Khemmani Pholsena, Vice-Minister, Lao PDR
• Technical Assistance
o Mr. Said Abdou Salime, Comoros (Co-Focal Point)
o Mrs. Dorothy Tembo, ED, EIF Secretariat
1
Afghanistan, Bhutan, Comoros, Equatorial Guinea, Ethiopia, Lao PDR, Liberia, Sao Tomé and
Principe, Samoa, Sudan, Vanuatu and Yemen.
WT/COMTD/LDC/15
Page 7
ANNEX II
List of Participants
ACCEDING LDCs
e-mail: osamar33@yahoo.com
WTO MEMBERS
Mr Marco KASSAJA
Minister, Plenipotentiary
Permanent Mission of the United Republic of Tanzania
Avenue Blanc 47
1202 Geneva
OTHER INVITEES
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