Bridges Weekly Trade News Digest • Volume 6 • Number 35 • 17th October 2002
CTD Looks At Technical Assistance For 2003
On 8 and 9 October, the 42nd session of the WTO’s Committee on Trade and Development (CTD) met to address, inter alia, the planning of technical assistance for 2003, the ongoing work on the participation of developing countries in world trade, and a review of the flexibilities for developing countries under GATT 94 Article XVIII (i.e. Government Assistance to Economic Development). The discussions of the first day focused specifically on technical assistance matters, with the second day looking at the other items. While some headway was made on the TA issues, most of the others saw limited discussions, with many being pushed forward to the next CTD meeting on 11 November.
Comments on technical assistance from the new Director-General
The discussions on technical assistance (TA) began with some introductory remarks from WTO Director-General Supachai Panitchpakdi. Dr. Supachai conveyed a few points regarding technical assistance, of which the 2003 TA Plan, he said, "was a key element in [his] evolving thoughts" on the subject. His first, and arguably most important, comment was on the nature of TA that he felt was best within the competencies of the WTO Secretariat to deliver. This, he noted, lay primarily in the realm of providing "technical assistance to build effective capacity for negotiations" as well as to assist developing countries (in collaboration with relevant multilateral agencies) in understanding the rules and their implementation. On the sensitive issue of providing TA to help with developing the commercial capacity to take advantage of market access opportunities that could emerge through the WTO rules-based trading system (what is often termed as dealing with ’supply-side constraints’), Supachai indicated that the WTO’s role would be to "seek coordination and advocate [for] such TA with development institutions and bilateral donors."
His other points on TA touched on a broad number of items, including the continued focus on LDCs and acceding countries, the need for "systematic, cumulative and sustainable capacity building", and the need to concentrate on the quality and not quantity of TA activities. He also indicated that the objectives of TA activities were not simply focused on the Fifth Ministerial in Cancun (September 2003), but rather to establish a framework for TA that would last beyond Cancun and the Doha negotiations themselves. Finally, calling it perhaps "the greatest challenge" of TA work, he noted the need for results-oriented coordination with other agencies, bilateral donors and the recipient countries themselves.
Technical Assistance Plan
With those points in mind, Members began a discussion on the delivery, focus, and costing of the 2003 technical assistance plan (WT/COMTD/W/104 & /104/Add.1, searchable at http://docsonline.wto.org). One developed country delegate noted "near-consensus" among delegates that the Secretariat was trying to do too much and that alternative providers, such as the UN Conference on Trade and Development & the International Trade Commission, needed to be brought on board to assist in delivering the required activities. With respect to the nature of TA activities to be provided by the Secretariat, developing country Members were reportedly divided — with some indicating that supply- side issues needed to take greater importance, and others pointing to market access and other concerns. Many developing country Members also voiced concerns that numerous activities that they had requested had not been included in the Plan.
In that regard, 451 activities have been decided upon out of the 1038 requested. This breaks down into 251 national activities (approximately two per developing country and three per least developed county) and 190 regional activities (as regional events were designed where national requests exceeded available capacities). Twenty-one areas form the structure for these events. One trade source noted, however, the low percentage of activities provided versus those requested in certain areas that had a high number of requests. For example, the source said, the issues of WTO rules (subsidies, antidumping, etc), market access and intellectual property rights all had low acceptance rates of only 25 percent. Those of implementation (of WTO obligations) and mainstreaming (of trade into development strategies) were even lower with 18 percent and 16 percent respectively. Discussions on the substance of the Plan did not take place at the 8-9 October meeting, and were postponed until the next CTD session in November.
TA budget
Supachai also provided a budget (currently restricted) on the envisaged TA activities for 2003. One developed country delegate expressed surprise over the availability of this information already, as well as over the tripling in costs from 2002 activities. A number of the larger trading powers allegedly called for full accounting of the 2002 Plan, including those events that have yet to, or will not, take place. One source indicated their belief that a fair amount of money likely remained after this year’s events and that 2002 expenditures would have to be reviewed before the 2003 figures could be approved.
Participation in world trade
Members spoke very briefly on this issue, primarily to thank the Secretariat for its latest contribution (WT/COMTD/W/100/Add.1, searchable at http://docsonline.wto.org) and to request more time to review the data. This item will be revisited again at the November session.
Article XVIII
With little movement on the issue of Article XVIII (Government Assistance to Economic Development) so far (see BRIDGES Weekly, 3 July 2002), Members still found themselves re-iterating known positions. India reportedly argued that in light of the fact that this clause had not been invoked since the mid-1980s, it was clearly in need of review. Developed countries questioned this claim as they felt little new information had been presented that convinced them of the need for a review. The Chair postponed these discussions as well, reportedly making sure to note that the Doha Declaration mandates discussions on this matter.
Article XVIII is one of the embodiments of development in the WTO in that it allows for special and differential treatment for developing countries.
The Committee on Trade and Development will meet again on Monday 11 November to discuss, inter alia, revisions to the technical assistance plan, participation of developing countries in world trade, the review of Article XVIII, the ongoing work on paragraph 51 of the Doha Declaration relating to sustainable development, and the year-end annual report.
ICTSD reporting.