Supporting Development and Building Trade Capacity
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Supporting development and building trade capacity Supporting development and building trade capacity Trade and development 146 Least‑developed countries 148 Small economies 150 Aid for Trade 151 Spotlight: Global Review of Aid for Trade 2017 154 Enhanced Integrated Framework 156 Standards and Trade Development Facility 158 Technical cooperation and training 160 Background on supporting development and building trade capacity The WTO aims to help developing countries build their trade capacity and allows them a longer time to implement trade agreements. Hundreds of training courses are organized each year for officials from developing countries. Message from Director-General Roberto Azevêdo 144 World Trade Organization Annual Report 2018 www.wto.org/dg Supporting development and building trade capacity 7 7 Message from Director-General Roberto Azevêdo www.wto.org/dg World Trade Organization Annual Report 2018 145 Supporting development and building trade capacity Trade and development • The Committee on Trade and Development continued its work on the link between trade and development. • The Committee looked at implementation of ministerial instructions on duty-free and quota-free market access for least-developed countries. • A Secretariat report showed developing country share of world trade slipped in 2016. WTO members considered a number merchandise trade contracted in 2016 of submissions under a ministerial to 42.5 per cent for exports and 39.7 Background on trade mandate for the Committee on Trade per cent for imports, down by around and development and Development to undertake focused 1 per cent compared with 2014. The Committee on Trade and work on the link between trade and This marked a slowdown from the swift Development is the focal point for development. It also considered growth of the early 2000s. the coordination of all work on a number of proposals relating to trade and development issues in Trade’s role in promoting sustainable electronic commerce and continued the WTO. The Committee deals development was an important topic with a variety of issues, including discussion of duty-free and quota- at the WTO’s annual Public Forum all developmental issues, technical free (DFQF) market access for least- in Geneva (see page 166). Both cooperation and training, and developed countries (LDCs) and the governments and the private sector need notifications under the Enabling monitoring mechanism for special to be more active in ensuring trade’s full Clause, which allows developed and differential treatment (S&D) potential in contributing to the United countries to give more favourable for developing countries in WTO Nations’ Sustainable Development treatment to developing countries. agreements and decisions. Goals (SDGs), the Forum heard. Cambodia – the Coordinator of the LDC There are direct references to WTO Group – recalled that the group had activities in many of the SDGs, ranging submitted in 2016 a revised proposal from ensuring food security and concerning the draft terms of reference sustainable agriculture to conserving for a Secretariat study on DFQF marine resources and promoting implementation. The Secretariat has inclusive and sustainable economic so far not been able to issue its report growth. There are also references to on members’ DFQF market access the value of the trading system itself in for LDCs, as mandated in the Bali supporting economic stability, which is Ministerial Decision, because of essential for growth and development. divergent views about the scope and The SDGs are a set of 17 goals and coverage of the report. 169 targets that members of the United Several members presented papers on Nations endorsed as part of the 2030 e-commerce, including the promotion Agenda for Sustainable Development. and facilitation of cross-border trade in The Committee held two dedicated There are direct goods, payments and logistics services, sessions on the monitoring mechanism electronic signatures and their role in the references to WTO on S&D. The mechanism acts as a focal digital identity of users, online security activities in many point to review the implementation of and access to online payments as well S&D in WTO agreements and decisions, of the SDGs, ranging as the infrastructure gaps that exist in as decided by ministers in Bali in 2013. from ensuring developing countries. food security to Ministers declared that monitoring The WTO Secretariat reported that the should be on the basis of written inputs promoting sustainable share of developing economies in world or submissions. However, no written economic growth. submissions had yet been received. Trade and development 146 World Trade Organization Annual Report 2018 www.wto.org/development In the discussions, delegations differed Africa. A notification under the Enabling on whether to proceed with a review or Clause was also circulated on behalf wait until there was concrete experience of Argentina, Brazil, Chile, Mexico, of its use. Paraguay and Uruguay, members of the Latin American Integration Association. In a session dedicated to regional trade In addition, the United States made agreements, WTO members considered a notification of its trade preference the agreement between the Association scheme for Nepal. of Southeast Asian Nations and India. The Committee Technical cooperation reviewed the The Committee received a report on the 51st session of the Joint Advisory Group and training implementation (JAG) of the International Trade Centre. The WTO Secretariat undertook about of special and The JAG is the policy-making body of the 350 technical assistance activities in differential treatment trade promotion agency for developing 2017. Overall, 18,500 participants were for developing countries jointly sponsored by the WTO trained (see page 160). and the United Nations Conference on countries in The biennial technical assistance and Trade and Development. WTO agreements training plan for 2018 and 2019, which and decisions. Market access defines the strategy and priorities, was The Committee received notifications adopted by the Committee. Members under the Enabling Clause (see page discussed an external evaluation of 110) concerning an agreement between the WTO’s technical assistance. India and Thailand, an agreement The evaluation found that the WTO’s between MERCOSUR (the Southern technical assistance is relevant and Common Market) and the Southern aligned to the needs and priorities African Customs Union, and the of beneficiaries. accession of Egypt to the Common Market for Eastern and Southern 7 Trade and development www.wto.org/development World Trade Organization Annual Report 2018 147 Supporting development and building trade capacity Least-developed countries • Market access was a key element in discussions in the Sub-Committee. • Least-developed countries (LDCs) expressed concern about continuing percentage decline in their exports of goods and services and widening trade deficit. • LDCs urged WTO members to increase efforts to implement ministerial decisions intended to boost LDC trade. • LDCs continued to benefit from technical assistance and were among the biggest users of WTO e-learning courses. Background on Market access for LDCs so as to increase their participation in services trade (see page 97). least-developed Market access for least-developed countries (LDCs) countries (LDCs) was a central element Technical assistance The Sub-Committee on LDCs, of the discussions in the meetings of the and capacity building established in July 1995 as a Sub-Committee on LDCs in 2017 as it subsidiary body to the Committee continued its examination of systemic The Sub-Committee monitors the on Trade and Development, focuses issues of interest to LDCs. progress of WTO trade related technical its work based on an agreed WTO assistance provided to LDCs as well as work programme for LDCs. This The WTO Secretariat’s yearly report on other capacity building initiatives. work programme looks at a number trends in LDC trade and market access of systemic issues of importance conditions showed that LDCs’ exports of The WTO Secretariat attaches priority to LDCs in the multilateral trading goods and services fell by a further 3.9 to LDCs in the delivery of its technical system, such as market access, per cent in 2016, after losing 24 per cent assistance (see page 160). LDCs were technical assistance and accession invited to over 70 per cent of all activities to the WTO. in 2015. Their share of world exports declined to 0.91 per cent and their in 2016. LDCs, especially from Africa, collective trade deficit widened to US$ were among the biggest users of WTO 92.9 billion from US$ 87 billion in 2015. e learning courses, accounting for a third Unfavourable developments in the prices of participants in 2016. LDCs highlighted the usefulness of internship programmes Enhanced integration of primary commodities continue to have an adverse impact on the export growth at the WTO and at LDC missions, as of the LDCs into of LDCs, the report said. well as of LDC-specific courses and the the multilateral WTO reference centre programme. trading system is an The LDCs expressed concern that they were far from achieving the target of The Executive Secretariat of the institutional priority. doubling their share in world exports Enhanced Integrated Framework (EIF), by 2020 as envisaged under the UN which assists LDCs in integrating Istanbul Programme of Action for the trade into their national development LDCs and the Sustainable Development strategies, updated the Sub