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DAKAR
DECLARATION OF
THIRD LDC TRADE MINISTERS' MEETING
Dakar, Senegal, 4 - 5 May, 2004
We, the Ministers responsible for trade of the Least Developed
Countries, meeting in Dakar, Senegal, from 4 to 5 May, 2004,
to take stock, review progress and exchange views on developments
in the WTO negotiations after the 5th WTO Ministerial Conference
which took place in Cancun, Mexico from 10 to 14 September,
2003,
1. Re-affirming
our commitment to the multilateral processes guided by the
principles and objectives stipulated in the Marrakesh Agreement
Establishing the World Trade Organization for the creation
of a rules-based trading system that takes account of the
development needs of the Least Developed Countries, and ensure
that they secure a share in the growth of world trade commensurate
with the needs of economic development,
2. Further reaffirming
the LDCs common negotiating position for the Doha Round spelt
out in the Dhaka Declaration (Document no. WT/L/521) adopted
during our Second Meeting which took place in Dhaka, Bangladesh,
from 31st May to 2 June, 2003 to prepare for the Fifth WTO
Ministerial Conference,
3. Concerned about
the continued marginalization of LDCs in world trade,
4. Encouraged by
the observed desire among WTO members since Cancun to further
carry forward the negotiations,
5. Call upon the
Members of the WTO to fully take into account the interests
and development needs reflected in the LDCs Dhaka Declaration,
and urge Members to take into account the realities of LDCs
and agree on the following:
AGRICULTURE
6. Agriculture
is the backbone of the LDCs economies. This sector provides
employment and a livelihood for over 60 percent of the labour
force, and for some LDCs, agricultural products constitute
more than 70 per cent of exports. LDCs consider that, in view
of the current situation of negotiations, their concerns as
expressed in the Dhaka Declaration are still topical and relevant.
Whereas the Derbez Text takes on board the LDCs concern regarding
the exemption from reduction commitments, we furthermore,
submit the following proposals:
(a) Export subsidies
that are provided by developed countries to products of export
interest to LDCs shall be phased out on a fast-track basis;
(b) Members shall
exercise restraint in applying TBT (technical barriers to
trade) and SPS (sanitary and phytosanitary) measures to products
from LDCs. Technical and financial assistance shall be provided
to LDCs for improving agricultural infrastructure, productivity
and diversification for development of facilities and systems
for compliance with the SPS and TBTs requirements for exporting
agricultural commodities;
(c) The consolidation
of market access in total duty exemption for LDCs will be
considered;
(d) Developed countries
shall provide bound duty-free and quota-free market access
for all products originating from LDCs. Furthermore developing
countries are also urged to extend such facilities to products
from LDCs;
(e) Erosion of
preference margins due to MFN tariff reductions shall be offset
by establishing compensatory and other appropriate mechanisms,
including measures that promote exports from LDCs;
(f) The fast and
substantial reduction of domestic support measures which impede
the exports of LDCs, shall be achieved through the establishment
of accurate criteria and a ceiling of the green box as well
as phasing out the blue box and the amber box;
(g) 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.
COTTON
7. Cognisant of
the role of cotton as a critical industry within the agriculture
sector in the economy of LDCs, particularly those in the West,
East and Central regions of Africa where it contributes substantially
to the GDP, total export earnings as well as in promoting
rural development, employment and poverty reduction,
8. Deeply concerned
about the adverse effects of domestic support and subsidies
granted to the production and export of cotton by some developed
countries that cause distortions in the international trade
of this product and undermine trade opportunities and worsen
economic and social situation of LDCs that are cotton producers
and exporters.
9. We urge Members
of the WTO to expeditiously consider adopting the proposals
submitted to WTO by the proponents of the Sectoral Initiative
on Cotton as contained in Document WT/GC/W/516 of the 7th
of October 2003. These proposals stress the following:
a) The complete
elimination of export subsidies over a period of three years
and the elimination of production-related domestic support
over a period of four years, in each case as from 1st January
2005.
b) The setting
up of a cotton sector support fund.
10. We welcome
the results of the WTO Regional Workshop held in Cotonou from
the 23 to 24 of March 2004 and recommend that the conclusions
of this meeting concerning the development aspect of the Sectoral
Initiative on Cotton be implemented expeditiously so that
the cotton sector is reinforced within all cotton producing
LDCs.
11. We also strongly
believe that the global and effective response to the request
contained in the Sectoral Initiative on Cotton must also take
into account the trade aspects through the adoption by the
WTO of a decision aiming at the elimination of domestic support
and subsidies granted to the production and export of cotton.
12. We remain open
and flexible to ways and approaches likely to resolve the
various aspects of this issue and we expect, from the concerned
countries, concrete proposals to resolve urgently the problems
raised in the sectoral Cotton initiative.
NON AGRICULTURAL
MARKET ACCESS (NAMA)
13. Deeply concerned
about continued marginalization and declining share of their
world trade LDCs emphasize that the Doha Work Programme, including
the negotiations on NAMA, shall contribute to the effective
improvement for market access in favour of LDCs, in particular
by encouraging their industrialization,
14. Whereas the
Derbez Text takes on board the LDCs concern regarding the
exemption from reduction commitments, we furthermore submit
the following proposals:
a) Developed countries
shall provide bound duty-free and quota-free market access
for all products originating from LDCs within the year 2004,
, with realistic, flexible and simplified rules of origin,
which takes into account the industrial capacity of LDCs,
in order to increase their share of world trade. Developing
countries are also encouraged to extend such facilities to
products from LDCs
b) Erosion of preference
margins due to MFN tariff reductions shall be offset by compensatory
appropriate mechanisms, including measures that overcome supply
constraints, diversify and promote exports from LDCs.
c) LDCs underscore
that negotiations on NTBs should commence as soon as possible
and be dealt with by the NAMA Group. As an early harvest,
LDCs want a moratorium on all contingency actions, including
antidumping measures, against export of LDCs.
COMMODITY ISSUES
15. We note the
heavy dependence of LDCs on a few commodities and the adverse
effects of persistent decline and sharp fluctuations in commodity
prices and urge members to address the trade-related issues
in the on going negotiations.
SPECIAL AND
DIFFERENTIAL ( S & D ) TREATMENT
16. We recall the
Doha mandate on S & D Treatment and reaffirm the proposals
submitted by developing countries, including those of LDCs,
aimed at strengthening the special and differential treatment
provisions and to make them more precise, effective and operational.
17. We are concerned
that Annex C of the Derbez Text, is not a substantial package
as most of the proposals contained therein are of no economic
value and do not provide sufficient policy space for LDCs.
18. We are further
concerned about the lack of progress on S&D issues in
the Doha work programme.
19. We submit the
following proposals for the way forward:
a) All the S &
D Treatment shall be considered in the Committee on Trade
and Development Special Session, to allow the full participation
of LDCs in the work.
b) All Agreement-specific proposals be addressed as a matter
of priority. A specified timeframe shall be established in
order to make all the S & D provisions more precise, effective
and operational.
IMPLEMENTATION
RELATED ISSUES AND CONCERNS
20. We express deep concern about the continued lack of progress
in the implementation issues and remain convinced that appropriate
solutions to the implementation related issues and concerns
shall contribute to LDCs increasing integration into the multilateral
trading system. We therefore urge members to complete the
work on these issues as a matter of priority.
TRIPS AND PUBLIC
HEALTH
21. We call upon
Members to expeditiously implement the Decision of the General
Council adopted on 30 August, 2003 on the TRIPS Agreement
and Public Health.
SERVICES
22. We welcome
the Decision on the Modalities for the Special Treatment for
LDCs Members in the Negotiations on Trade in Services, adopted
on 3 September 2003;
23. We call upon
members to fully take into account these modalities in the
current request and offer process so that LDCs can benefit
from market access opportunities and capacity building as
stipulated in the Decision as well as ensuring appropriate
flexibilities in their commitments.
24. We further
call upon members to provide improved offers in favour of
LDCs in Mode 4, particularly for less skilled persons.
SINGAPORE ISSUES
25. We take note
of the developments regarding Singapore issues at and after
Cancun. The preferred approach by some members including LDCs
is to keep the three Singapore issues, namely: the Relationship
between Trade and Investment, the Interaction between Trade
and Competition Policy and Transparency in Government Procurement;
out of the Doha work programme. In respect of trade facilitation
the LDCs propose the following approach:
(a) Work on clarification
of various aspects of this issue should continue. However,
this work should be carried out in parallel with other segments
of the Doha work programme of interest to LDCs.
(b) After the completion of the clarification process, a decision
would need to be taken on the modalities, by explicit consensus,
before negotiations can commence. Modalities should include,
among others, the adoption of a provision whereby LDCs are
exempted from WTO dispute settlement action.
(c) Commitment for technical and financial assistance should
be ensured to LDCs to conduct studies to assess the implications
and meet the costs of implementation of trade facilitation
measures,
WTO RULES
26. We are concerned
about the extreme use of anti-dumping measures against LDCs
by both developed and developing countries. LDCs cannot contest
these measures for lack of resources and we therefore call
upon Members:
(a) To review the
rules on Anti-dumping & countervailing measures in order
to prohibit their application to LDCs` exports.
(b) To adopt simplified
procedures for LDCs for investigation of imposition of anti-dumping
and countervailing measures against imports into their territories.
27. Recognising
that subsidies applied by LDCs may play an important role
in economic development and poverty alleviation programmes
in these countries, we further call upon Members:
a) To treat as
non-actionable, subsidies required by LDCs for development,
diversification and upgrading of infant industries.
b) To treat as
non-actionable, subsidies provided by LDCs for research activities,
adaptation of new environmental requirements and development
of industries.
c) To grant exemption
from export competitiveness thresholds, export subsidies applied
by LDCs
ACCESSION
28. We urge members
to fully and faithfully implement the LDCs Guidelines on accession
of December, 2002 without seeking excessive and strenuous
commitments from these countries or denying them rights being
enjoyed by the founding LDCs members of the WTO.
INTEGRATED FRAMEWORK
29. We recognize
that the Integrated Framework (IF) is a potentially viable
instrument for enhancing LDCs' supply capacities,
30. We recall that
the Doha Ministerial Declaration urges the core agencies involved
in the IF to address supply side constraints of LDCs, in particular
diversification of LDCs' production and export base and we
propose that:
a) The IF Trust
Fund needs to be substantially supplemented in order for the
Fund to be effective in supporting the projects in LDCs that
have long term development benefit. The DTIS is an important
first step to identify priority projects, and that follow
up and implementation should be given equal importance.
b) In this regard,
coverage of Diagnostic Trade Integration Study (DTIS) should
be widened to all the LDCs.
31 We note with
appreciation the recent initiative of the donor community
to increase the level of funding under Window II following
the second IF evaluation early this year. Therefore we propose
that:
(a) An early implementation of Window II and follow up of
the DTIS should be an integral part of the IF process.
(b) The process
for implementation of projects identified by the LDCs DTIS
Action Matrices should be simplified, and granted sufficient
funding particularly for trade related infrastructure.
(c) IF should constitute
an effective mechanism with sufficient funds to address supply-
side constraints.
(d) 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.
32 We further noted
with gratitude the supportive contribution of other organizations
such as UNIDO towards addressing LDCs supply-side constraints
and propose extension of the composition of core agencies
to include such agencies.
33 We reaffirm
the important role of UNCTAD as the principal forum of the
UN for the integrated treatment of trade and development and
interrelated issues in the areas of finance, investment, technology
and sustainable development. In this context, UNCTAD XI provides
a unique opportunity for reinvigorating this role, and in
particular, for strengthening coherence between development
and trade.
APPRECIATION
34 We express our
appreciation to the Government and the people of Senegal for
organizing and hosting this meeting and for the hospitality
and excellent facilities put at our disposal which ensured
successful deliberations. We also thank the Secretariats of
UNCTAD, WTO, AITIC, Islamic Bank for Development, other bilateral
and multilateral Development Partners. Thanks are also extended
to the UN Secretary in charge of LDCs for providing financial
and technical support to delegates and to the organization
of this meeting.
Done at Dakar,
this 5th day of May, 2004
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