LDCs and the WTO
The WTO provides a forum for negotiating multilateral trade deals whilst also upholding a system of agreed trade rules to provide stability and predictability in the world trading system. The ability to negotiate such deals depends upon the benefits which can be exchanged with others through the opening of markets.
Countries with weak markets can have less negotiating power - although development was put at the centre of the Doha Round. The power of the LDCs (which individually are, by definition, some of the world’s poorest countries) has been increased through them working together as a Group in pursuit of common aims. They first presented themselves as a Group to be reckoned with in Cancun in 2003 and followed this up with greater success in Hong Kong in 2005.
The countries of the LDC Group have recognised that addressing their common concerns are of more benefit to them than participation in either issue-based groups (such as cotton) or geographically-based groups (such as the Africa group) – although the work in the LDC Group often feeds into the other groups and rarely contradicts them.
Such is the cohesive base that when negotiations break down or are suspended, other issues of common interest (such as the Integrated Framework) remain focii for the Group or, as happened last time, the break down is seen as an opportunity to carry out important relevant technical work on offers.
The LDCs take it in turn amongst themselves to rotate as Coordinator of the Group. In 2006/7 it was Zambia who undertook this role, succeeded over the last year by Lesotho - in theory it rotates every six months but in practice few countries are in a position to take on the responsibilities. The role places a considerable burden upon the country concerned because they are obliged to attend all the relevant WTO meetings in order to be up to date with the issues (with their Ambassador acting as spokesperson for the Group and their Minister negotiating on its behalf). The Coordinating country also organises Group meetings and, as a result of its position, is allowed access to the negotiating table – which individual LDCs are not (the Group is vigilant about the possible misuse of the role to further national aims).
The LDC Group has also appointed ‘Focal’ Points from the various countries within its ranks who develop particular specialities and who undertake the relevant technical work (backed up as needed by specific expertise).
RTFP has supported the LDC group during the Coordination period of both Zambia and Lesotho by providing technical expertise (directly and by commissioning work); logistical support for meetings and attendance at WTO sessions; development of an LDC website, etc.
In February 2008, RTFP (with additional funds from DFID) financed a Ministerial Meeting of the LDC group in Maseru, Lesotho with o ver 200 people from 38 of the 50 LDCs (as well as from their partners and international organisations) participating. In addition to many countries from Africa others such as Nepal, Afghanistan, Laos, Cambodia, Solomon Islands, Samoa, Maldives, Yemen and Haiti were represented.
During the meeting, the Maseru Declaration (63.41 Kb)was published and although some may have wished for a stronger and more ambitious Declaration, nonetheless it was a true reflection of the consensus position of the LDCs in most areas. It reflected the frustration of LDCs in the relatively slow progress that has been made on issues of particular interest to them, including timeframes for duty free quota free market access (DFQFMA); market access for cotton, simplified rules of origin, SDT and SSM in agriculture, mode 4 in services, technical assistance for trade facilitation, EIF and Aid for Trade.
Other statements which were made at the meeting were:
European Commission - Peter Mandelson (82 Kb)
UNCTAD - Secretary General Supachai Panitchipakdi (279.25 Kb)
India - H.E. Ugal Singh Bhatia (318.82 Kb)
Canada (52.00Kb)
South Africa H.E Faizel Ismail (163.63 Kb)
SACU - Tswelopele Moremi (247.86 Kb)
ICTSD (43.11 Kb)
ITC (96.13 Kb)