The joint WTO/UNIDO Technical Cooperation Programme

1. The joint WTO/UNIDO Technical Cooperation Programme WTO/UNIDO Briefing, 1 December 2003

2. Despite additional export earnings, developing countries do not take full advantage of trade liberalization Developing countries are confronted with two major problems: Tariff and non tariff barriers in sectors-industries where they have a comparative advantage Ill equipment of their industries to take advantage of reduction in trade barriers Context The barriers to trade in developed countries are estimated to cost developing countries $100 billion a year – This is almost twice the amount that developed countries provide in aid each year ($58 million).

3. reasons for the developing countries’ failure to benefit from trade liberalization are the lack of: Industrial production capacities: need of supply side upgrading to produce goods of competitive quality the ability to comply with international standards: need of technical assistance and capacity building to overcome TBT and SPS measures and to comply with international standards the knowledge of WTO rules: need of capacity building for national implementation of WTO agreements, trade negotiations and related policy formulation The need for technical assistance

4. Objective: Achieving an increase in developing country exports by: removing supply side constraints developing and proving conformity to technical requirements, and integrating into the multilateral trading system The WTO/UNIDO Cooperation

5. The Framework Concept – The main programme modules Module I Module II Module III Remove supply side constraints Prove Conformity with Technical Requirements Integrate into the multilateral trading system Introduce supporting legislation, policies and institutional reform Strengthen supply capacity to improve competitiveness Set up accreditation/ certification systems Support compliance with international standards Strengthen capacity for implementation of the WTO agreements and trade negotiations UNIDO WTO

6. Country focus of the programme Combining tasks of modules into country projects, based on priority sub-sectors/product Beneficiary-driven activities adjusted to specific needs of the country concerned Beneficiaries: governmental agencies, the private sector, academic institutions and members of civil society Partnerships with local institutions The Programme Principles

7. Phases of the programme - Preparatory phase: country assessments to identify the project focus in terms of sectors, sub-sectors as well as specific tasks to be carried out - Main phase: Implementation of the individual country projectsjointly by UNIDO and WTO with a clearly defined “Lead Agency” for each activity Possibility for the two organizations to invite other agencies with comparative advantages for the implementation (UNCTAD, FAO, ISO or ITC etc.) The Programme Strategy

8. The country selection: Existing comparative advantages, field presences and country requirements to be taken into account Pre-selection of nine countries for the pilot phase from initial list: Armenia, Bolivia, Cambodia, Cuba, Egypt, Ghana, Jordan, Kenya, Mauritania No LDC focus, but possibility of including LDCs where the WTO/UNIDO programme could provide an added value to the process in particular in following up the recommendations The Preparatory phase

9. Implementation of the UNIDO-WTO MoU: Technical Cooperation Programme Responding to the Doha Development AgendaUNIDO Preparatory Assistance Project

10. Technical Cooperation Programme Responding to the Doha Development AgendaUNIDO Preparatory Assistance Project • This pilot phase would cover nine pilot-countries through an assessment of priority sectors and/or products addressing trade capacity weaknesses including: • Supply-side constraints • Conformity to market requirements and standards; • Implementation of multilateral trade agreements.

11. Technical Cooperation Programme Responding to the Doha Development AgendaUNIDO Preparatory Assistance Project • Kick-off seminars will be jointly organized by UNIDO and WTO in each selected country during the first semester of 2004. • Linkages with the assistance or other activities being provided or planned by the two organizations in the selected countries will be established. Note: It would benefit from the UNIDO and WTO internal expertise, best practices and methodologies and knowledge of the selected countries

12. Technical Cooperation Programme Responding to the Doha Development AgendaUNIDO Preparatory Assistance Project -A team of UNIDO staff covering the whole range of UNIDO expertise in trade-related matters has been established to work on implementation of the project. -Direct linkage with WTO will be established through UNIDO office at Geneva and directly by the team of UNIDO staff involved in the project implementation.

13. Technical Cooperation Programme Responding to the Doha Development AgendaUNIDO Preparatory Assistance Project

14. Technical Cooperation Programme Responding to the Doha Development AgendaUNIDO Preparatory Assistance Project • UNIDO methodologies will be utilized: • Quick industrial and trade competitiveness analysis[1]; • Assessment of barriers to trade. • WTO expertise, diagnostic and training capability will allow efficient implementation of the project focusing on integration in the global market. • ---------------- • [1]The methodology to be used is essentially based on the one developed by UNIDO with Oxford University initially to draw up the Industrial Competitiveness Scoreboard which appeared in the World Industrial Development Report (WIDR) 2002/2003 and was then further refined for application at country level (Tanzania, Syria, Ecuador). The work would be mainly desk-based (reducing costs) although some local information may need to be sought through a national consultant. The quick analysis could be done in two to three (max) weeks.

15. Technical Cooperation Programme Responding to the Doha Development AgendaUNIDO Preparatory Assistance Project TENTATIVE SCHEDULE Kick-off seminars