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Technical Assistance and Capacity Building

The WTO & the Doha Round

Fletcher Grundmann, Machiel van der Stelt, Steven Garrett, Kathleen Riley

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“Maximum benefit from participation in a WTO rules-based trading system comes about only when developing countries and transition economies have the required institutional, physical and human capacity to take advantage of trade opportunities.” - U.S. Government Initiatives to Build Trade Related Capacity in Developing and Transition Countries

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What is Technical Assistance? Also called technical co-operation, it is assisting

officials from developing countries to operate successfully in the multilateral trading system.

Objective is to build the necessary institutions and train officials.

Inclusions in: GATT Article XVIII (1955), GATT Part IV (1965), Enabling Clause (1979), Agreement on SPS Measures, the Agreement on TBT, the Agreement on Implementation of Article VII (Customs Valuation) and the Agreement on TRIPs

WTO www.wto.org

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Technical Assistance at WTO

Workshops • Focus on particular areas of trade policy

Seminars• National & regional level, focused & general

Technical Missions • Assist drafting legislation & regulations

WTO www.wto.org

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Technical Assistance at WTO

Briefing Sessions• Update on recent developments at WTO

Electronic Assistance• CD-ROM of Seminars

WTO www.wto.org

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What is Capacity Building? Developing institutions and other sectors of

an economy to effectively engage in trade.• Modernize Customs Offices• Support the design and implementation of

antitrust laws• Enforcement of labor standards and worker

rights• Assist in the development of physical

infrastructure needs (telecom, water, etc.)

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Ministerial Declaration 38.  We confirm that technical cooperation and capacity building are core

elements of the development dimension of the multilateral trading system, and we welcome and endorse the New Strategy for WTO Technical Cooperation for Capacity Building, Growth and Integration. We instruct the Secretariat, in coordination with other relevant agencies, to support domestic efforts for mainstreaming trade into national plans for economic development and strategies for poverty reduction. The delivery of WTO technical assistance shall be designed to assist developing and least-developed countries and low-income countries in transition to adjust to WTO rules and disciplines, implement obligations and exercise the rights of membership, including drawing on the benefits of an open, rules-based multilateral trading system. Priority shall also be accorded to small, vulnerable, and transition economies, as well as to members and observers without representation in Geneva. We reaffirm our support for the valuable work of the International Trade Centre, which should be enhanced.

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Cont.

39.  We underscore the urgent necessity for the effective coordinated delivery of technical assistance with bilateral donors, in the OECD Development Assistance Committee and relevant international and regional intergovernmental institutions, within a coherent policy framework and timetable. In the coordinated delivery of technical assistance, we instruct the Director-General to consult with the relevant agencies, bilateral donors and beneficiaries, to identify ways of enhancing and rationalizing the Integrated Framework for Trade-Related Technical Assistance to Least-Developed Countries and the Joint Integrated Technical Assistance Programme (JITAP).

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Cont. 40.  We agree that there is a need for technical assistance to benefit

from secure and predictable funding. We therefore instruct the Committee on Budget, Finance and Administration to develop a plan for adoption by the General Council in December 2001 that will ensure long-term funding for WTO technical assistance at an overall level no lower than that of the current year and commensurate with the activities outlined above.

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Cont.

41.  We have established firm commitments on technical cooperation and capacity building in various paragraphs in this Ministerial Declaration. We reaffirm these specific commitments contained in paragraphs 16, 21, 24, 26, 27, 33, 38-40, 42 and 43, and also reaffirm the understanding in paragraph 2 on the important role of sustainably financed technical assistance and capacity-building programmes. We instruct the Director-General to report to the Fifth Session of the Ministerial Conference, with an interim report to the General Council in December 2002 on the implementation and adequacy of these commitments in the identified paragraphs.

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U.S. Suggestions for Banks

A Strategic Partnership Trade and Finance Ministers Policy Dialogues Trade mainstreaming Lending Facilities and Grant Funding for Trade-Related Projects Technical assistance, training and capacity building the Doha Development Agenda Trade-Related Technical Assistance

and Capacity-Building Database Seventh, Integrated Framework Partners Finally, Follow-Up - Periodic Consultations

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The participating banks:

The African Development Bank The Arab Monetary Fund The Asian Development Bank The European Bank for Reconstruction and Development The Inter-American Development Bank The Islamic Development Bank The New Partnership fro African Development World Bank

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Solution

Provide a sound financial basis for WTO technical cooperation activities by securing funds to enhance technical assistance and capacity-building to help developing countries participate more actively in the Doha Development Agenda. The goal is to enhance the cooperation between the WTO and the regional development banks.

Regional banks must work to ensure that trade priority areas of action are mainstreamed (distinctly reflected) into national development strategies and the Poverty Reduction Strategy Papers (PRSPs) of countries in their regions.

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The Integrated Framework•Inaugurated in October 1997, due to complex trade related problemsfacing the LDC.

•The IF is the cooperation between IMF, ITC, UNCTAD, UNPDWorld Bank and the WTO.

•This cooperation was established mainly to bundle the competenceof the different organizations. To get more results concerningCapacity Building.

•In 2000 the IF was reorganized, due to improve its function.

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The Integrated FrameworkAfter the reorganization the IF is mainly concentrating on:

•Assisting LDC’s in mainstreaming trade priority areas to reducepoverty and develop the LDC’s economics.

•Improve governance structure by the Integrated Framework SteeringCommittee (IFSC).

•Financing the mainstreaming work by the IF Trust Fund led by theWorld Bank.

•The improvement between bilateral and multilateral donors concerningthe coordination within a coherent policy framework.

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The Integrated Framework• Currently the IF is implemented on a pilot basis in Cambodia,Madagascar and Mauritania.

• Now the pilot scheme is extended to 11 new LDC’s on basis of the gained experience.

• Criteria for assessing new pilot countries are:1. Strong commitment to integrate into national

development strategy.2. Preparatory stage of PRSP.3. Preparatory stage of upcoming meetings of the

World Bank Consultative Group or UNDP Round Table.4. Conductive operational country environment.

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The Integrated Framework• The implementation of the IF is done by the World Bank

three step method.

1. Diagnostic integration study (DTIS) is prepared for each country.

2. Action Plan is developed in consultation with stakeholders, based on the findings of the study.

3. Trade policy priorities are incorporated into the country’s updated PRSP.

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The Integrated FrameworkChallenges for the future (Paul J. Fekete, The Service Group):• This process is still in a developing state and there is

not a precise answer yet how to move to the implementation state. The program has to be put under one umbrella, because some LDC know how to play the game of getting money from different resources.

• Capacity building has to be undertaken, not everyone has the knowledge in these countries. So the institutions have to find the right people to send to these countries to do the capacity building job well.

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In summary…

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WTO and Technical Assistance

Because More than three-quarters of WTO's Members have self-elected the status of developing countries, of which 30 are least-developed…

At Doha, Ministers confirmed that technical cooperation and capacity building are core elements of the development dimension of the multilateral trading system.

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Technical assistance and Capacity Building is designed to…

Assist developing and least-developed countries and low-income countries in transition to adjust to:• WTO rules and disciplines• implement obligations and exercise the

rights of membership• including drawing on the benefits of an open,

rules-based multilateral trading system.

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Through a concerted effort and core development efforts

The WTO promises to support developing nations with T.A. in the form of workshops, technical missions and seminars, as well as through…

Capacity building efforts designed to support laws, enforce labor standards, develop necessary infrastructure and…

Identify funding sources

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Through the Ministerial declaration adopted on 14 November 2001 the WTO:

paragraphs 16, 21, 24, 26, 27, 33, 38-40, 42 and 43 Confirmed its support for domestic efforts in

mainstreaming trade into national plans for economic development and strategies for poverty reduction. (article 38)

Underscored the urgent necessity for the effective coordinated delivery of technical assistance with bilateral donors (article 39)

Promised to ensure long-term funding for WTO technical assistance (article 39)

Discussed an integrated framework to help in bundling limited resources and make the most of existing capabilities

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Sources

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