Let me first extend my sincere thanks to the Government of India for the warm hospitality accorded to my delegation and me. We are also very appreciative of the excellent arrangements made for the Meeting, taking place at a short notice.

Mr. Chairman,

This Meeting is very important for all of us in the sense that it intends to evolve a common strategy of the SAARC countries for the Fourth Ministerial Conference of the WTO, which is taking place in Doha later this year. The outcome of this Meeting will have significant implications for trade prospects of the SAARC countries within the WTO framework.

As a least-developed country intending to become Member of the WTO, Nepal has been watching with keen interest the movements of international trade. And, we are concerned about the not-so-encouraging performance of LDCs. The experience of many LDCs during the 1990s show that despite massive economic liberalization, the overall progress in increasing real incomes, combating poverty, and achieving human development has remained disappointing. Real GDP of LDCs grew by only 3.2 percent during 1990-98. The poor economic performance of LDCs is being accompanied by high population growth. This is the reason why they could not go beyond 0.9 percent in increasing real GDP per capita during the same period. With an eye on the degree of trade liberalization undertaken by the LDCs, one could qualify for an active participation in the WTO. However, the share of LDCs in world merchandise exports has been declining over the last ten years. It has come down from 0.48 percent in 1990 to 0.40 percent in 1999. At the same time, the importance of foreign trade is increasing in the LDCs, which is clearly reflected in the increasing trade/GDP ratio. But, it has not been able to keep pace with growth in advanced countries. While global merchandise exports grew at 5.6 percent annually during the 1990s, LDCs had to be satisfied with a lower growth rate of 3.6 percent per annum. The worsening terms of trade associated primarily with declining commodity prices is giving further rise to the concerns of these countries.

Mr. Chairman,

The situation must improve. It is encouraging to note that the attention of the international community has been drawn to this fact. I may cite two recently held international meetings for example. One is the Third UN Conference on LDCs organised in Brussels in May 2001 and the other is the Special Ministerial Meeting of LDCs, which took place in Zanzibar, Tanzania in July 2001. Both these Meetings have adopted substantial resolutions with regard to the integration of LDCs into the global economy with particular reference to the WTO. The UN Conference on LDCs focused on making objective assessments with regard to commitments made in the areas of Official Development Assistance (ODA), debt relief, investment promotion, and international trade. The Conference recognizes the need to transform trade into a powerful engine for growth and poverty alleviation in LDCs. Accordingly, the international community has undertaken to assist LDCs in capacity building, trade policy and related areas, developing human and institutional capacities for meaningful participation in multilateral trade negotiations, and removing procedural and institutional bottlenecks that increase transaction costs. LDCs have been assured of assistance in the areas of trade diversification, infrastructure development, regional/sub-regional cooperation, and protection of women's interests. The Conference also underlines the need for improving preferential market access to LDCs and full implementation of special and differential treatment measures foreseen by the WTO system.

Similarly, the Zanzibar Meeting has underlined the need for further efforts aiming at providing meaningful market access ensuring security of the preferential market access for LDC products. On the other hand, the Meeting has emphasised full implementation of existing provisions with special reference to the Uruguay Round Agreements on agriculture, trade in services, subsidies, technical barriers to trade, trade-related investment measures, textiles, and intellectual property rights. In all these themes, the Meeting has come up with concrete proposals. For example, immediate abolition of export subsidies for agricultural products of particular interest to LDCs and implementation of bound duty-free and quota-free market access conditions to exports of LDCs covering all agricultural products in their primary, semi-processed and processed forms are suggested. In the area of services, the negotiations should aim at achieving a further liberalization on movement of persons for LDCs on a sectoral basis and address issues that are impeding their market access including issuance of visas, administrative procedures and lack of transparency, economic needs tests. Nepal welcomes these decisions and hopes that they would be followed up in all sincerity.

Mr Chairman,

Following the recent deliberation in those conference and meeting, we should streamline our position on specific WTO issues to be discussed in Doha. As an acceding country, Nepal would like to stress that the WTO should ease the process of accession of LDCs. A fast-track approach with simple accession procedures should be adopted. On the other hand, the terms and conditions should be consistent with the stage of development of the LDCs. Nepal also maintains that the commitments laid by WTO should not be higher than those undertaken by other LDCs members. The transitional period provided under various agreements should commence from the date of accession ensuring the protocol of accession not adversely affecting the existing preferences and concessions enjoyed by LDCs through bilateral, regional and multilateral trade arrangements.

We are aware of the need and consequences of a new round of negotiations within the WTO. With regard to the launching of the new round, Nepal sees the need for full implementation of the existing provisions of WTO, especially on Agreement on Agriculture and Trade Related Intellectual Property Rights (TRIPs). Further, mandated reviews as foreseen within the framework of built-in agendas must take place. If new round has to go ahead, it is to be only with minimum agenda not overloading WTO with task of new issues.

In line with the suggestions made by the UN Conference on LDCs, the Zanzibar Meeting, and other international fora, Nepal would like to see binding commitment on duty-free and quota-free market access for all products from LDCs. The idea is to ensure predictability of the system. The question of market access brings also the need of simplifying and harmonising rules of origin. In fact, they should be flexible enough to match the industrial capacity of the LDCs. Full implementation of the commitments made in the Marrakesh Declaration and other Ministerial decisions and commitments in favour of LDCs would be another priority area. In this regard, full implementation of the Integrated Framework for LDCs should also be ensured. In addition, all non-tariff barriers (NTBs) should be removed and LDCs exports should be exempt from anti-dumping duties and safeguard actions on an autonomous basis. Recent efforts to facilitate duty-free entry for LDCs exports through mechanisms such as EBA are to be welcomed. It is also important that the developed countries commit themselves to enhance the market access in services, especially by way of easing the movement of natural persons. Given the growing tendency among Members to enter into regional trading arrangements and free trade agreements, it becomes imperative that WTO Membership does not affect any preferential bilateral and regional trading arrangements in an adverse manner.

Mr. Chairman,

As we know, the WTO system foresees special provisions for developing countries with a view to ensuring equity in the system. However, the intended beneficiaries are lagging far behind reaping the benefits. In this context, we see the need for binding commitments made on full implementation of the provisions under the special and differential treatment principle of the WTO. This would include adoption of new special and a differential measure to take into account problems encountered by LDCs. Equally important is to ensure technology transfer to developing countries.

The question of implementation of WTO Agreements also involves, for us, an understanding on the need for allowing developing countries to adopt some degree of flexibility. Specifically speaking, developing countries should be able to implement the TRIPs Agreement in such a way as allows them to ensure food security and easy access to medicines to combat pandemic diseases. Similarly, with regard to the Agreement on Trade Related Investment Measures (TRIMs), there should an extension of the transitional period for developing countries. On the other hand, measures under the TRIMs Agreement should be limited to a manageable level.

The developing countries are acutely facing a number of supply-side constraints. This has been limiting their capacity to meaningfully interact with other players in the market. The LDCs among them are in a more disadvantaged situation. However the recent initiatives to back it by creating a Trust Fund have raised fresh hopes in the LDCs. We hope that commitments to the Fund will increase substantially.
Mr.Chairman,

May I finally assure you that Nepal is committed to the idea of a common position of the SAARC countries at the Doha Ministerial Conference of the WTO. I hope, other delegations would reciprocate this feeling.