WORLD TRADE
ORGANIZATIONWT/L/521
26 June 2003
(03-3383)
Original:  English/
                  French
SECOND LDC TRADE MINISTERS' MEETING
Dhaka, Bangladesh
31 May – 2 June 2003
Communication from Bangladesh
The following communication, dated 18 June, has been received by the Director-General
from the Permanent Mission of Bangladesh, with the request that it be circulated to Members.
_______________
The Second LDC Trade Ministers' Meeting was held in Dhaka from 31 May to 2 June 2003.
The meeting reviewed developments in the negotiations since the 4th WTO Ministerial Meeting in
Doha, and drew up a common strategy for LD Cs for the Doha Round of negotiations.
On behalf of the LDC Group in the WTO, I have the honor to enclose herewith the outcome
of the Dhaka Meeting, which we refer to as the Dhaka Declaration.
_______________
Dhaka Declaration*
PART I
We, the Ministers responsible for trade of the least developed countries, meeting here in
Dhaka, Bangladesh, from 31 May to 2 June 2003 with a view to undertaking a review of the
developments following the Fourth WTO Ministerial Conference held at Doha (Qatar), taking stock
of the current state of the ongoing negotiations in the WTO, exchanging ideas and coordinating viewsto reach a common position for all LDCs at the Fifth WTO Ministerial Conference to be held at
Cancún, Mexico, from 10 to 14 September, 2003,
1. Reaffirming  the principles and objectives set out in the Marrakesh Agreement Establishing the
World Trade Organization, and reiterating the comm itment to further strengthen the rules-based
multilateral trading system to meet the development needs of LDCs;
2. Recalling  the Zanzibar Declaration adopted at the LDC Trade Ministers’ Meeting held in
Zanzibar, United Republic of  Tanzania, prior to the Doha Ministerial Conference;
                                                     
* As adopted at the closing plenary of the Ministerial Meeting on Monday, 2 June 2003.WT/L/521
Page 2
3. Concerned that the failure of the Members to meet deadlines on a number of issues, including
development issues affecting LDCs,  mandated by the Doha Ministerial Conference, is a setback to
advancing the development dimensions of the Doha Declaration;
4. Worried  that the LDCs continue to be marginalized in multilateral trade, with their market
share in world trade secularly declining, despite there being an increase in the number of LDCs and
repeated commitments by Members to address this problem;
5. Disappointed with  the slow progress of implementation of the commitments made by Trade
Ministers at Marrakesh, Singapore, Geneva a nd High-Level Meetings on LDCs, and by the
international community at the Third United Nati ons Conference on the Least Developed Countries in
Brussels, to help least developed countries secure beneficial and meaningful integration into themultilateral trading system and the global economy;
6. Concerned  at the failure of Members to find an acceptable solution to implement  the
Ministerial Declaration on TRIPS a nd Public Health adopted at Doha;
7. Expressing  our full solidarity with African LDCs that are affected by subsidies on cotton
provided by developed countries, and strongly supporting actions initiated by some African LDCs in
the WTO to urgently remedy the negative consequen ces of these subsidies that affect millions of
farmers;
8. Appreciating  the improved market access initiatives taken by a number of Members in favour
of LDCs;
9. Concerned  about the low rates of utilization of the market access preferences so far provided
to the LDCs owing to the existence of obstacles;
10. Recalling  the recognition by the Ministers at Doha that integration of the LDCs into the
multilateral trading system requires meaningful market access, support for the diversification of their
production and export base, and trade-related technical assistance and capacity building;
11. Disappointed with the lack of progress in making existing Special and Differential (S&D)
provisions more precise, effective and operational;
12. Desirous of improving the effectiveness of technical assistance programmes and the
Integrated Framework;
13. Emphasizing the importance of increased coherence of policies pursued by multilateral
institutions on matters of trade;
14. Taking note  of the adoption by the General Council of the guidelines for the accession of
LDCs;
15. Invite the attention of the Members of the WTO to the particular vulnerability of the least
developed countries and the special structural difficulties they face, and call upon  the WTO bodies
and the Fifth Ministerial Conference to agree on:
 (i) A binding commitment on duty-free and quota-free  market access for all products from least
developed countries on a secure, long-term and predictable basis with realistic , flexible and
simplified rules of origin to match the industrial capacity of LDCs in order to increase their
market share in world trade;WT/L/521
Page 3
 (ii) A binding commitment from our trading partners guaranteeing a substantive and concrete
increase in the market share of the LDCs in world trade;
 (iii) Resolving, by the Cancún Ministerial Conference, all implementation-related issues and
concerns, and all S&D proposals with a view to strengthening them and making them precise,
effective and operational as mandated by the Doha Declaration; and substantially expandingand binding special and differential treatment provisions to reverse the continued
marginalization of LDCs;
 (iv) Free access to developed country markets for temporary movement of natural persons,
particularly unskilled and semi-skilled service providers, under Mode 4 by inter alia
recognizing professional qualifications and si mplifying visa procedures, and without asking
for an economic needs test;
 (v) Allowing LDCs flexibility in undertaking comm itments and obligations consistent with their
individual development, financial and trade needs, or their administrative and institutional
capabilities;
 (vi) A substantial increase in technical and financial assistance to LDCs for the development,
strengthening and diversification of their production and export base, as well as for institution
and capacity building;
 (vii) The strengthening of the Integrated Framework, with enhanced funding, to meet the needs of
the LDCs, particularly for overcoming their supp ly-side constraints and for the diversification
of their export base together with simplification of procedures to improve access to financial
resources;
 (viii) The exemption of least developed country exports from anti-dumping, countervailing and
safeguard measures;
 (ix) Devising appropriate compensatory and other  mechanisms to fully  address  the erosion of
preference margins due to lowering of MFN tariffs;
 (x) Expeditious and full implementation of the guidelines for accession of LDCs adopted by the
General Council;
 (xi) Continuing with the technical work and studies to clarify the implications of the Singapore
issues for the development aspirations of LDCs;
 (xii) Developing mechanisms to help LDCs address the inherent problems of very small size,
landlocked States, remoteness and extreme vulnerability;
 (xiii) Establishing an international mechanism to protect genetic resources, traditional knowledge
and farmers’ rights and ensure non-patentability for all life forms;
 (xiv) A legally sound solution for LDCs which, owing to insufficient or low manufacturing
capacity, face difficulties in making effective use of compulsory licensing, in accordance with
the Doha Declaration on TRIPS and Public Health, without restricting coverage of diseases.
16. Agree to present this declaration and the accompanying negotiating positions for
consideration of the Fifth WTO Ministerial Conference and the WTO bodies, and further agree to
entrust Bangladesh, in its capacity as Chair of the Second LDC Trade Ministers’ Meeting, toWT/L/521
Page 4
coordinate and pursue our negotiating agenda, as contained in the Dhaka Declaration, through the
Fifth WTO Ministerial Conference to be held in Cancún;
17. Express  our profound appreciation to the Government of Bangladesh for hosting this meeting
in Dhaka, and thank the UNCTAD and WTO secretariats, as well as our development partners, fortheir assistance.WT/L/521
Page 5
PART II
LDC Negotiating Position for the Doha Round1
Agriculture
1. Agriculture is the backbone of the LDCs’ econom ies. This sector provides employment and a
livelihood for more than 60 per cent of the labour force; for some LDCs, agricultural products
constitute more than 70 per cent of exports.
2. Agriculture is protected through high tariffs in many developed countries, and market access
is sometimes denied to products from LDCs. Export subsidies and domestic support maintained by the
developed countries also depress world prices for agricultural commodities, undermining the
competitiveness of LDCs' agriculture. Besides, tariff escalation prevents LDCs from exploiting theircomparative advantage of cheaper labour and lower production costs.  Furthermore, LDCs’ market
access is hampered by other non-tariff measures such as sanitary and phytosanitary and environmental
measures.
3. At Doha the Ministers provided a negotiating mandate in agriculture in paragraphs 13 and 14
of the Ministerial Declaration.  In the light of this mandate and the progress of the negotiations to
date, as well as the paramount importance of the agricultural sector in the majority of LDCs, the major
objectives of LDCs in this round of negotiations are as follows:
(a) As provided for in Article 15.2 of the Agreement on Agriculture, LDCs shall not be required
to undertake reduction commitments.
(b) Developed countries shall provide duty-free and quota-free market access to all imports from
LDCs by the Cancún Ministerial Conference.  The product coverage shall include all
agricultural products in their primary, semi-processed and processed forms.  Developed
countries shall integrate such coverage into their schedule of commitments.
(c) With the gradual erosion of preferences currently enjoyed by LDCs on account of the
lowering of tariffs, Members shall establish compensatory and other appropriate mechanisms
to fully address the impact of erosion of preferences, including measures that promote exports
of LDCs.
(d) Food security, rural development and livelihood, security concerns and other public policy
objectives of LDCs shall be fully taken into account in the modalities to be established in
agriculture, including allowing LDCs to use the new Special Safeguards (SG).
(e) Members shall exercise restraint in applying TBT (technical barriers to trade) and SPS
(sanitary and phytosanitary) measures to products from LDCs; where such measures are
necessary, technical assistance shall be provided to enable the LDCs to overcome them.
(f) Export subsidies that are provided by developed countries to products of export interest to
LDCs shall be phased out on a fast-track basis.
(g) Developed countries shall substantially reduce export  and production support measures  that
are trade-distorting on products of export interest to LDCs  on a fast-track basis.
                                                     
1 This segment is an integral part of the Dhaka Declaration.WT/L/521
Page 6
(h) Members shall immediately implement the Marr akesh decision on measures concerning the
possible negative effect of the reform programme on LDCs and NFIDCs, including through
the establishment of a revolving fund to ease short-term financing problems linked to the
import of basic foodstuffs.
(i) Food aid provided by Members to meet emergency situations, and humanitarian and
development objectives, and to address the chronic food deficit situation in LDCs shall be
allowed.
(j) Technical and financial assistance shall be provided to LDCs for improving agricultural
infrastructure, productivity and diversification and for development of facilities and systems
for compliance with the SPS and TBT requirements for exporting agricultural commodities.
Market Access for Non-Agricultural Products
4. The decisions relating to the improvements in “market access for non-agricultural products”
adopted at the Doha Ministerial Conference, inter alia , state that the negotiations in this area shall
aim, by modalities to be agreed, to reduce and as appropriate eliminate tariffs, including the reduction
or elimination of tariff peaks, high tariffs and tariff escalation, as well as non-tariff barriers, inparticular those relating to products of export interest to developing countries.  They further state that
the negotiations shall take fully into account the special needs and interests of least developed
countries, including through less than full reciprocity in reduction commitments in accordance with
the provisions of the Enabling Clause and the Uruguay Round Decision on Measures in Favour of
Least Developed Countries and other WTO provisions, particularly those of GATT Article XXVIII.
5. In paragraph 42 of Doha Ministerial Declaration, the Ministers committed themselves to the
objective of duty-free and quota-free market access for products originating in LDCs.  A number of
developed and developing countries have either provided duty- and quota-free access, or have taken
steps to improve market access for products from the LDCs.  Enhanced market access, and marketentry, are key to LDCs’ growth and development.  Therefore, duty-free and quota-free market access
should be an integral part of the modalities to be established in the negotiations.
6. As tariffs and quantitative barriers are being reduced, countries resort to non-tariff measures
to advance their interests.  Anti-dumping measures  have now become common.  Another instance of a
non-tariff barrier to LDCs’ exports is the string ent application of rules of origin to avail of
concessional tariffs.  Meaningful improvements in market access for LDCs would require eliminationof non-tariff barriers.
7. Over the past decade, LDCs have significantly lowered their tariffs on non-agricultural
products on an autonomous basis.  This has resulted in a reduction of the revenue that is so necessary
to meet the development expenditure of the Governments of LDCs.  Given the LDCs' revenuestructure, import duties still constitute a major share of government revenue.  Moreover, tariffs are
also a principal instrument for providing support to domestic industries.
8. In view of the above, and taking into account the progress to date of negotiations on market
access for non-agricultural products, LDCs' objectives in this area of negotiations are as follows:
(a) As stipulated in Article XI.2 of the Agreement establishing the WTO, LDCs shall undertake
commitments and concessions only to the extent consistent with their individual development,
financial and trade needs and commensurate with their administrative and institutional
capabilities.  Therefore, LDCs shall be given fu ll flexibility to determine the coverage of theirWT/L/521
Page 7
binding undertakings, which they will undertake on an autonomous basis.  LDCs shall not be
required to undertake tariff reduction commitments in this round of negotiations.
(b) Developed countries shall provide duty-free and quota-free market access for all products of
all LDCs before the Cancún Ministerial Conference, together with realistic, flexible andsimplified rules of origin, which take into account the industrial capacity of LDCs, in order to
increase their market share of world trade.  Other developing countries are also encouraged to
extend such facilities to products from LDCs.
(c) Long-term security and predictability of preferential market access for LDCs shall be ensured
through integrating duty-free and quota-free treatment into the schedule of commitments of
developed countries.
(d) Developed countries shall ensure that duty-free and quota-free market access is not nullified
by non-tariff measures. In this regard, developed and developing countries  shall immediately
impose a moratorium on anti-dumping measures, and safeguard measures, against LDCs.
There must also be a moratorium on the imposition of other contingency measures onproducts from LDCs.
(e) Erosion of preferential margins due to MFN tariff reductions shall be offset by
establishing compensatory and other appropriate mechanisms to fully address theimpact of erosion of preferences, including measures that promote exports of LDCs.
(f) LDCs shall be given maximum credit for unilateral liberalization.
(g) Targeted technical assistance shall be provided to LDCs to address supply-side constraints.
Services
9. The Services sector is the fastest growing component of GDP growth in many LDCS.  The
importance of trade in services for LDCs goes be yond pure economic significance owing to the major
role that services play in achieving social and economic development objectives.
10. At Doha, Members agreed to negotiations on tr ade in services with a view to promoting the
economic growth of all trading partners and the development of developing and least developed
countries.  LDCs are receiving requests for commitments in broad sectors of services such as
telecommunications, constructions and related engineering services, environmental services, financial
services, transport services and audio-visual services.  However, there has been virtually no
liberalization of markets for cross-border labour servi ces.  It has been estimated that a temporary visa
scheme (for temporary labour, not migrant labour) that amounts to no more than 3 per cent of the
OECD labour force would yield economic benefits for both developed and developing countriesequivalent to almost US $150–200 billion.  This alone is almost half to two thirds of the potential
benefit of complete liberalization of all trade in goods.
11. LDCs have difficulties in addressing complex issues of services negotiations because of a
lack of institutional and human capacities.  The constraints faced by LDCs in analysing offers andmaking requests should be factored into the negotiating process in general and into the individual
requests made to LDCs in particular.  Members shall adopt the modalities for the special treatment for
LDCs in the negotiations on trade in services as contained in document TN/S/W/13 before the Cancún
Ministerial Conference.WT/L/521
Page 8
12. In view of the above, and taking into account the current progress in negotiations, the LDCs
submit the following proposals in this area of negotiations:
(a) Considering the serious difficulty of LDCs in undertaking negotiated specific commitments in
view of their special economic situation, Members shall present requests which arecompatible with the developmental, economic and financial needs of the LDCs and which are
limited in terms of numbers of sectors and modes of supply and scope of commitments.
(b) LDCs shall retain maximum flexibility in un dertaking commitments in a manner consistent
with their development needs.  Members shall not seek the removal of conditions which
LDCs may attach when making access to their markets available to foreign services suppliers
and which are aimed at achieving the objectives of Article IV.  For so long as they remain
LDCs, no LDCs shall be required to offer na tional treatment.  LDCs shall not be requested
under Article XVIII to undertake additional commitments on regulatory issues, which may go
beyond their institutional, regulatory and administrative capacities.
(c) Members shall grant full market access and national treatment to LDCs in the sectors and
modes of supply of export interest to them.  To achieve effective implementation of the
provisions contained in Article IV:3, preferential market access mechanisms shall beestablished for ensuring effective access of LDCs to markets of other Members.  Additional
commitments ensuring increasing participation of the LDCs in the sectors of their trading
interest shall be offered by developed countries.  For this purpose, LDCs shall indicate those
sectors and modes of supply that represent a priority in their development policies, so that the
WTO Members take these priorities into account in the negotiations.
(d) Developed country Members shall promote and strengthen their investment and export/import
promotion programmes for LDCs with a view to  building domestic services capacity and its
efficiency and export competitiveness.
(e) Members shall assist least developed countries in obtaining training and transfer of
technology, and shall undertake other specific measures that support the development of theirinfrastructure and services exports through enterprise-level actions and schemes and
intergovernmental cooperation programmes, and making appropriate financial resources
available for such specific measures.
(f) Members shall facilitate and ensure the improvement of access for services and service
suppliers of LDC Members to distribution channels and information networks, especially in
tourism, transport, audio-visual and construction services, inter alia  through promotion of
intergovernmental cooperation programmes.  Members shall take appropriate measures todiscipline certain business practices that restrain competition and thereby restrict the
participation of services suppliers from LDCs in trade in services.
(g) Members shall grant full market access and national treatment to LDCs in Mode 4 (temporary
movement of natural persons), particularly in respect of unskilled and semi-skilled persons.
For LDCs, this is the most important means of supplying services internationally andeliminating poverty. Members shall, accordingly, undertake commitments to provide access
to all categories of natural persons from LDCs, particularly unskilled and semi-skilled
persons, for supplying services under the GATS, including through the elimination of
economic needs tests and quantitative restrictions, de-linking of temporary movement of
natural persons from commitments on commercial presence and introducing simplified visaschemes.WT/L/521
Page 9
(h) LDCs shall be granted maximum credit for their autonomous trade liberalization without their
scheduling it as binding commitments.  Credit shall not be requested from LDCs by other
Members.
(i) In developing multilateral rules and disciplines, including under Articles VI:4 (Domestic
regulation), X (Emergency safeguard measures), XIII (Government procurement) and XV(Subsidies), Members shall specifically account for interests and difficulties of LDCs.
Members shall expeditiously establish an Emergency Safeguard Mechanism as provided for
in Article X. In pursuance of Article XV of the GATS, developed country Members shall
notify their subsidies, adopt a standstill commitment on trade-distorting subsidies and reduce
substantially such subsidies by 2005.
(j) Members shall set clear guidelines to give effect to the implementation of Article IV of the
Agreement on Services.
(k) Pursuant to Article XIX:3, the Council for Trade in Services shall carry out an assessment of
trade in services in overall terms and on a sectoral basis with a view to achieving the
objectives of the Agreement, including those set out in paragraph 1 of Article IV.
(l) Article VI.4 disciplines shall not limit the right to regulate and the flexibility to undertake
policy regulatory reform in pursuit of public interest and public policy objectives of LDCs.
(m) Members shall take concrete measures to facilitate recognition of qualifications of service
suppliers from LDCs and LDCs' membership of the MRAs.
(n) Targeted and coordinated technical assistance and capacity building, including for the
purposes of strengthening their domestic services capacity and its efficiency and
competitiveness, by WTO and other relevant multilateral, regional and bilateral developmentpartners shall be provided, on a priority basis, to assist LDCs.  Technical assistance shall also
be provided for institutional and human capacity building and undertaking regulatory reform.
Assistance shall be accorded in line with special priority given to LDCs with the objective of
effectively implementing their increasing participation in world trade.  In pursuance of
paragraph 14 of the Guidelines, technical assistance shall be provided to LDCs to carry outnational assessments of trade in services in overall terms and on a sectoral basis with
reference to the objectives of the GATS and Article IV in particular, and taking into account
their special economic situation and their development, trade and financial needs.
Special and Differential (S&D) Treatment
13. S&D provisions constitute the most significant component of the development dimension of
the WTO Agreements  that provide LDCs greater flexibility to pursue policy options most  appropriate
for rapid economic development  and to integrate into the multilateral trading system.
14. Paragraph 44 of the Doha Ministerial Declaration reaffirmed that “provisions for special and
differential treatment are an integral part of the WTO Agreements” and directed that “all special anddifferential treatment provisions shall be reviewed with a view to strengthening them and making
them more precise, effective and operational”.  Ministers also endorsed the Work Programme on
special and differential treatment set out in the Decision on Implementation-related Issues and
Concerns as per paragraph 12.1.
15. Pursuant to the Ministers’ mandate, LDCs submitted a number of proposals at the Special
Session of the Committee on Trade and Development.  As the Special Session was unable to resolveWT/L/521
Page 10
the outstanding differences, the Chairman of the General Council has made specific proposals to
overcome the impasse.  Taking into account the present state of the negotiations, the LDCs submit the
following proposals:
(a) All S&D proposals submitted by LDCs shall be addressed, without a priori exclusions, with a
view to making them precise, effective and operational and thereby converting them into
binding commitments of member States.
(b) All S&D provisions aimed at increasing the trade opportunities of LDCs shall be implemented
before the Cancún Ministerial Conference.
(c) Strengthening S&D provisions shall not be confined only to examining existing provisions.
Members shall devise additional ways, as envisaged in paragraph 12 of the Implementation
Decision.
(d) In fulfilling the Ministerial mandate on S&D treatment, all S&D proposals shall be negotiated in
the Special Session of the Committee on Trade and Development.
(e) Where changing the existing language of the “best-endeavour” provisions in WTO Agreements
into binding language requires amendment of the texts of existing Agreements, such
amendments  shall be made.
(f) The General Council shall convene Special Sessi ons of the General Council to review the
implementation of S&D provisions included in the WTO Agreements, decisions and
declarations.
(g) S&D treatment to facilitate the development efforts of LDCs, the expansion of their trade and
investment opportunities, and their integration into the multilateral trading system is a core
principle of the WTO and shall be incorporated in any future agreements.
Implementation-Related Issues and Concerns
16. It is of great concern to LDCs that despite a clear mandate by the Doha Ministerial
Conference that the implementation-related issues and concerns shall be an integral part of the Work
Programme, most of these issues remain unresolved.  It is therefore proposed that:
(a) All issues referred to various WTO bodies for expeditious solution by the Decision on
Implementation-related Issues and Concerns shall be addressed with a view to a solution
being found by the Cancún Ministerial Conference;
(b) All other outstanding issues shall also be addressed on a priority basis.
WTO Rules
17. There is a growing concern over excessive use of anti-dumping measures both by developed
and developing countries. Such measures have been initiated against several LDCs. The LDCs find it
extremely difficult to contest the allegations of dumping because of resource constraints. At the same
time LDCs are unable to protect their industries against dumping because of the complex and costly
procedures.  In view of the harm that dumping and arbitrary use of anti-dumping measures can do to
LDCs' industries, it is proposed that:WT/L/521
Page 11
(a) Agreements on anti-dumping duties and subsidies and countervailing duties shall incorporate
provisions for non-application of anti-dumping and countervailing measures against exports
of least developed countries.
(b) A simplified procedure for investigation for imposition of anti-dumping and countervailing
measures shall be devised for least developed country Members.
18. Recognizing that subsidies may play an important role in economic development and poverty
alleviation programmes, it is proposed that:
(a) Subsidies required for development, diversification and upgrading of infant industries and in
particular industries with substantial poverty alleviation potential in the least developed
countries shall be treated as non-actionable subsidies;
(b) Subsidies provided by the least developed countries for research activities, adaptation of new
environmental requirements and development of industries shall be treated as non-actionablesubsidies.
(c) Export subsidies applied by LDCs shall be exem pted from export competitiveness thresholds.
Accession
19. The Ministers gave special priority in Doha to LDCs' accession.  In paragraph 9 of the Doha
Declaration, they attached great importance to concluding accession proceedings as quickly as
possible, particularly those of LDCs.  In addition, in paragraph 42 of that Declaration, the Ministers
agreed to work to facilitate and accelerate negotiations with acceding LDCs.  Following upon those
decisions, at the General Council last December the WTO Members adopted Guidelines for LDCs'accession.  According to these Guidelines , negotiations for the accession of LDCs will be facilitated
and accelerated through simplified and streamlined accession procedures, and the negotiations will be
concluded as soon as possible.
20. Owing to cumbersome and time-consuming procedures as well as lack of clear and objective
rules for accession negotiation, no LDC has yet acceded to WTO since its establishment in 1995. A
number of LDCs are at different stages of accession negotiations and a few LDCs have reached an
advanced stage in their accession process, in the light of which the LDCs make the following
proposals:
(a) Members shall fully adhere to the letter a nd spirit of the accession guidelines for acceding
LDCs adopted by the General Council. Members shall ensure simplified and fast-trackaccession of LDCs on the basis of the guidelines.  The General Council shall regularly
monitor and review the effective implementation of the guidelines.  The Ministerial
Conferences shall take stock of the situation on a regular basis.
(b) Members shall exercise restraint in seeking concessions and commitments from acceding
LDCs.
(c) Members shall ensure that acceding LDCs are not subjected to obligations or commitments
that go beyond what is applicable to the existing LDC Members.
(d) Members shall ensure that the accession process is less onerous for LDCs and that the
obligations of acceding LDCs are commensurate with their stage of development.WT/L/521
Page 12
(e) All S&D treatment shall be applicable to all acceding LDCs from the date of entry into force
of their respective protocols of accession.
(f) Targeted technical assistance shall be provided to acceding LDCs on a priority basis, covering
all stages of accession negotiations and taking into account the high costs involved in the
accession negotiations.
(g) Members shall work towards the completion of the accession process by or at the Cancún
Ministerial Conference for LDCs that are at an advanced stage in their accession process.
TRIPS and Public Health
21. The Declaration on the TRIPS Agreement and Public Health at Doha recognized the gravity
of the public health problems afflicting many developing and least developed countries, especially
those resulting from HIV/AIDS, tuberculosis, malaria and other epidemics.  In paragraph 6 of that
Declaration, Members also recognized that countries with insufficient or no manufacturing capacitiesin the pharmaceutical sector could face difficulties in making effective use of compulsory licensing
under the TRIPS Agreement.  The Ministers instructed the TRIPS Council to find an expeditious
solution to this problem before the end of 2002.  It is regrettable that, to date, no solution could be
agreed upon.  In the light of these developments, the LDCs make the following proposals:
(a) The TRIPS Agreement shall be interpreted and implemented in a manner supportive of WTO
Members’ right to protect public health and, in particular, to promote access to medicines for
all at affordable prices.
(b) Members shall reaffirm that declaration of public health problems and the terms for granting
compulsory licences are the prerogatives of the Members.
(c) The 16 December 2002 draft decision on implementation of paragraph 6 of the Doha
Declaration on the TRIPS Agreement and Public Health remains the most acceptable solution.
Members shall adopt this decision as soon as possible, before the Cancún Ministerial
Conference.
Trade-Related Aspects of Intellectual Property Rights (TRIPS)
22. The TRIPS Agreement requires the introduction of high standards for the protection and
enforcement of property rights to products, processes, works and signs.  History shows that countries
have developed under selective IPR regimes to promote their own industrial policy objectives and to
facilitate acquisition of technology. All LDCs are at a very early stage of their scientific and technical
development, and require full flexibility in implem enting the TRIPS Agreement.  In the light of this,
the LDCs make the following proposals:
(a) Members shall fully adhere to the Decision of the Council for TRIPS of 19 February 2003
with a view to implementing the obligations  in Article 66.2 of the TRIPS Agreement.
Developed countries shall undertake, as required, specific legislative, policy and regulatorymeasures for their enterprises and institutions to give effect to Article 66.2 of the TRIPS
Agreement.
(b) In view of the special needs and requirements of LDCs, their economic, financial and
administrative constraints, and their need for flex ibility to create a viable technological base,
the transition period under Article 66.1 shall be extended so long as they retain LDC status.WT/L/521
Page 13
(c) The review process of Article 27.3b should clarify that plants, animals and parts of plants and
animals, including gene sequences and biological processes for the production of plants,
animals and their parts, must not be granted patents. Members shall select their own sui
generis  system for plant variety protection, including recognizing traditional knowledge and
the rights of farmers to use, save, re-sow, exchange or sell seeds.   Members shall ensure that
the TRIPS Agreement is fully co mpatible with the provisions of the Convention on Biological
Diversity (CBD) and with the International Tr eaty on Plant Genetic Resources for Food and
Agriculture (PGRFA).
(d) Non-participating LDCs shall not be obliged to provide legal means for interested parties to
use the registration of a geographical indication for wines and spirit.
(e) The protection of geographical indications shall be extended to products of commercial
interest to LDCs other than wines and spirits.
Technical Cooperation and Capacity Building
23. Technical cooperation and capacity building are core elements of the development dimension
of the multilateral trading system. Trade-related technical assistance is vital for LDCs to increase theirtrade-related supply capacity, and to effectively participate in multilateral trade negotiations.  All past
Ministerial Declarations re-emphasized the need  for enhanced support to LDCs.  In the Doha
Ministerial Declaration technical assistance runs throughout the text as a recurrent theme.  In
particular, in paragraph 42 of the Doha Ministerial Declaration, Members recognized that integration
of the LDCs into the multilateral trading system requires inter alia  trade-related technical assistance
and capacity building.
24. The Integrated Framework (IF) for Trade-Related Technical Assistance was designed with a
view to assisting the LDCs to enhance their tr ade opportunities, to develop supply capacity for
increasing their exports, and thereby effectively integrate into the global economy. LDCs’ supply-side
constraints need to be addressed in the IF as export-led growth is one of the principal vehicles to
reduce poverty in LDCs.
25. Technical assistance should also be seen in the context of provision of special and differential
treatment for the LDCs.  Technical assistance should help build LDCs’ institutions, implement
agreements and take advantage of trade opportunities.
26. In the light of the commitments on technical cooperation and capacity building in the Doha
Declaration, the LDCs make the following submission:
(a) Technical assistance programmes for LDCs shall be substantially  increased , be demand-
driven and emphasize country-specific and regional programmes.
(b) Long-term capacity building extending beyond the current one-year planning cycle of WTO
shall be given due importance in the trade-related  technical assistance plan.
(c) The institutional capacity of LDCs, including development of human resources, needs to be
developed and strengthened.  Technical assistance should be targeted for the development of
sustainable endogenous domestic capacity, to also enable LDCs to undertake research and
analysis of WTO-related subjects.  The WTO secretariat shall devise appropriate assistance to
cater to the needs of LDCs, as appropriate.WT/L/521
Page 14
(d) Members shall increasingly utilize experts/consultants from LDCs for studies and evaluation,
and to provide training in WTO technical assistance programmes, which would enhance
LDCs’ ownership of the programmes.
(e) In addition to training of government offici als of LDC countries, training of trainers’
programmes shall be strengthened.
(f) LDCs welcome the establishment of the Global Trust Fund and contributions made so far to
this Fund.  Developed countries shall provide increased resources to the Global Trust Fund to
enable WTO to impart adequate technical assistance for LDCs.
The Integrated Framework (IF) for Trade-Related Technical Assistance
(g) As provided for in paragraph 42 of the Doha Mi nisterial Declaration, the core agencies involved
in the IF shall address supply-side constraints identified by  LDCs, in particular diversification of
LDCs' production and export base.
(h) The follow-up to the Diagnostic Trade Integration Studies (DTIS) shall be made sustainable and
predictable with interlocking steps by providing enhanced resources to Window II of theIntegrated Framework Trust Fund (IFTF).
(i) Window II of the IFTF shall fund priority pr ojects identified by LDCs in the DTIS Action
Matrices.  Projects with the potential of addressing the supply-side bottlenecks of LDCs should
be given priority.
(j) The access to financial resources for funding the projects identified in the matrices of the DTIS
shall be facilitated through simplified procedures and modalities .
(k) Development partners shall enhance support to LDCs’ efforts aimed at improving the
participation of the private sector and other stakeholders in the IF process/programmes so that
supply-side constraints are appropriately addressed.
Singapore Issues
27. The Doha Ministerial Declaration stipulated that negotiations on Singapore issues will take
place after the fifth session of the Ministerial Conference on the basis of a decision to be taken, by
explicit consensus, at that session on modalities of negotiations.
28. In view of the overwhelming workload gene rated by the Doha work programme, LDCs with
limited resources are not able to follow negotiations and evaluate the implications/impact ofnegotiations on Singapore issues on their economies. Therefore, LDCs shall be given enhanced
technical assistance and support to build capacity in these areas. WTO, in cooperation with other
relevant intergovernmental organizations, including UNCTAD and ITC,  shall provide strengthened
and adequately resourced assistance to LDCs.
Trade and Investment
29. In paragraph 22, the Ministers instructed that further work be undertaken in the Working
Group on the Relationship between Trade and Investment on the clarification of certain issues.Progress in the work of the  Working Group on Trade and Investment clearly indicates that there willWT/L/521
Page 15
be no agreement between now and Cancún on any of th e elements outlined in the Doha Declaration.
Therefore, it is still premature to consider the real substantive issues.  The views of the LDCs on trade
and investment are as follows:
(a) Most of the LDCs have not been able to attract foreign direct investment through liberalizing
investment regimes owing inter alia  to very small size, remoteness and extreme vulnerability.
Improvements of regulations or policies ar e unlikely to attract orthodox FDI into LDCs,
without a supportive, targeted intervention from  the Governments of the sending countries. In
particular, ODA should assist in creating the infrastructure required for attracting FDI.
(b) The Working Group should continue work on the issues referred to in paragraph 22 of the
Doha Ministerial Declaration, including studies on whether and how any multilateral
investment agreement would facilitate flow s of FDI or improve its quality in LDCs.
Trade and Competition Policy
30. The Doha Declaration in paragraph 25 mandated the Working Group on the Interaction
between Trade and Competition Policy to focus on the clarification of certain issues.  Discussions inthe Working Group reveal that there are differences even among the demandeurs  of a multilateral
framework on competition policy.  The views of the LDCs in this area are as follows:
(a) Most LDCs lack competition laws and regulations, and agencies that are able to implement
the laws.  This lack of exposure to, and experience in, competition laws has hampered the
participation of LDCs in the current negotiatio ns. Therefore, efforts aimed at assisting LDCs
in formulating national competition laws and in establishing requisite institutions in LDCs
shall be undertaken.
(b) The Working Group should continue work on the elements referred to in paragraph 25 of the
Doha Ministerial Declaration. Studies would also need to be continued/undertaken to reflect
on ways in which possible international agreements on competition policy might apply todeveloping countries, including through preferential or differential treatment.
Transparency in Government Procurement
31. Paragraph 26 of the Doha Declaration states that negotiations on a multilateral agreement on
transparency in government procurement shall be lim ited to the transparency aspect and will therefore
not restrict the scope for countries to give preferences to domestic supplies and suppliers.
32. LDCs are yet to assess how an agreement on transparency in government procurement in
WTO would affect social and economic development in LDCs.
33. The Working Group should continue work on issues referred to in paragraph 26 of the Doha
Declaration.  Studies need to be undertaken to understand the depth and breadth of any possibleagreement in this area, and how it would affect LDCs.   
Trade Facilitation
34. Paragraph 27 of the Doha Declaration instructed the Council for Trade in Goods to review
and as appropriate clarify and improve relevant aspects of Articles V, VIII and X of the GATT 1994WT/L/521
Page 16
and identify the trade facilitation needs and priorities of Members, in particular developing and least
developed countries.
35. The current approach towards trade facilitation presupposes the establishment of common
procedures, rules and regulations for the movement of goods. Implementation of such laws and
procedures will be very costly for the LDCs, and they are unable to afford that at this stage.  LDCs’
institutions should be strengthened to facilitate trade.
36. Work on trade facilitation in other institutions should be taken into account in the current
work programme of WTO. Outside the WTO framework, current efforts to assist the LDCs in this
area should continue.
__________