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Page 1: THE UNITED STATES AND THE DOHA COMMITMENT · continue the work begun under the DDA. This is the WTO’s opportunity to focus on issues of importance to our least developed country
Page 2: THE UNITED STATES AND THE DOHA COMMITMENT · continue the work begun under the DDA. This is the WTO’s opportunity to focus on issues of importance to our least developed country
Page 3: THE UNITED STATES AND THE DOHA COMMITMENT · continue the work begun under the DDA. This is the WTO’s opportunity to focus on issues of importance to our least developed country

The members of the World TradeOrganization (WTO) have alwaysrecognized that the expansion of tradeopportunities can make a significantcontribution to economic growth andglobal poverty reduction. The DohaDevelopment Agenda (DDA) focuses onbetter integrating developing countries intothe international trading system andenabling them to benefit further fromglobal trade. The United States providedleadership at Doha in 2001 and continuesto do so today, not only through work inGeneva, but also through comprehensivetrade capacity building (TCB) programsthroughout the world. Trade capacitybuilding, or aid for trade, helps build thenecessary capacity for developing countriesto take advantage of more open markets.

While in Hong Kong, the United Statesintends to collaborate with others tocontinue the work begun under the DDA.This is the WTO’s opportunity to focus onissues of importance to our leastdeveloped country (LDC) partners asthey seek to develop their economiesthrough export-led growth. A successfulnegotiating round is key to openingmarkets further, and is aided by TCB.

The United States is the largest single-country donor of TCB assistance,providing over $1.34 billion in 2005, upfrom $921.2 million in 2004. The UnitedStates’ Millennium Challenge Account(MCA) contributed to TCB funding forthe first time this year, complementing on-going U.S. programs. In addition, wecontinue our strong support for thetrade-related programs of the multilateral

banks and the WTO’s Trade-RelatedTechnical Assistance Plan.

The United States is in a unique positionto provide assistance on many levels —working with international organizations,national and local governments — usingdiverse methods. We recognize that thereis no one-size-fits-all approach to TCBassistance. U.S. aid for trade is based onsustainability, ownership, and coordination,which enable the United States to provideflexible and creative assistance. As a donor,

THE UNITED STATES ANDTHE DOHA COMMITMENT

THE UNITED STATES AND THE DOHA COMMITMENT 1

East Timor coffee farmers expand sales by identifying potential markets for certifiedorganic coffee.

Page 4: THE UNITED STATES AND THE DOHA COMMITMENT · continue the work begun under the DDA. This is the WTO’s opportunity to focus on issues of importance to our least developed country

we strive to respond to the needs andpriorities identified by our developingcountry partners and value their input toour TCB programs. We develop ourassistance in line with the following:

n WTO: The United States continues itssupport of WTO technical assistancethrough the Global Trust Fund and theInternational Trade Centre.

n Integrated Framework (IF) process:The United States plays an active role inmultilateral efforts to provide TCB toLDCs.

n Free Trade Agreements (FTAs): TheUnited States provides technicalassistance to help countries implementcommitments under free tradeagreements.

THE UNITED STATES AND THE DOHA COMMITMENT2

20010

300

600

900

$ U

.S. M

illion

s

1200

1500

598.7

2002

637.8

2003

760.1

2004

921.2

2005

1342.0

U.S. Trade Capacity Building Assistance2001-2005

U.S. AID FOR TRADE

IS BASED ON

SUSTAINABILITY,

OWNERSHIP, AND

COORDINATION,

WHICH ENABLE THE

UNITED STATES TO

PROVIDE FLEXIBLE

AND CREATIVE

ASSISTANCE.

Southeast European countries are modernizingborder services as a key step toward regionalintegration. The U.S. Customs and BorderProtection Bureau of the U.S. Department forHomeland Security supports the SoutheastEuropean Cooperative Initiative in assistingcustoms administrations in Albania, Macedonia,Bulgaria, Romania, Serbia/Montenegro,

Croatia, and Bosnia/Herzegovina. Theinitiative facilitates cross-border trade, increasesthe effectiveness of border controls, andpromotes international trade. The programcontributed to a 62-percent decrease in thephysical inspection rate, reduced commercialtraffic wait times by 67 percent, and reducedduty collection by 140 percent.

REGIONAL INTEGRATION AND CROSS-BORDER TRADE IN

SOUTHEAST EUROPE

Page 5: THE UNITED STATES AND THE DOHA COMMITMENT · continue the work begun under the DDA. This is the WTO’s opportunity to focus on issues of importance to our least developed country

n Trade Preferences: The new AfricaGlobal Competitiveness Initiative, a $200million, five-year program, expandsAfrican trade with the United States,along with regional and otherinternational partners, and promotesexport competitiveness. The AfricanGrowth and Opportunity Act has alsobeen extended through 2015 andincludes third country fabric provisionsthrough September 2007.

The leading implementer of our TCBefforts, the U.S.Agency for InternationalDevelopment (USAID), is present in over

70 countries, providing the United Stateswith a unique opportunity to work withand respond to the needs of developingcountries as they seize the opportunitiesof trade liberalization. Targeted bilateral orregional programs are a practical, effectiveway of providing aid for trade. Moreimportantly, an on-the-ground approachenables the United States to build strongpartnerships with developing countries.USAID’s field programs arecomplemented by a range of TCBassistance provided by many other U.S.government agencies. The U.S.Trade andDevelopment Agency, for example,

THE UNITED STATES AND THE DOHA COMMITMENT 3

Asia$144.6

Former Soviet Republics$80.1

Sub-Saharan Africa$198.8

Non-targeted Global Funding $77.1

Latin America andthe Caribbean

$523.2

Middle East &North Africa

$245.0

Central &Eastern Europe

$73.3

1 Data are presented in millions of dollars and are based on the 2005 U.S. Government Trade Capacity Building (TCB) Survey. Survey results can be found in the U.S.TradeCapacity Building Database (www.usaid.gov, keyword: TCB Database); in the WTO Database of Trade-Related Technical Assistance and Capacity Building (http://tcbdb.wto.org);and on the attached CD-ROM. The CD-ROM contains summary tables for the 2005 U.S. Government TCB Survey.

U.S. TRADE CAPACITY BUILDING ASSISTANCE – 2005TOTAL FUNDING: $1.34 BILLION1

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provides TCB assistance such as earlyinvestment analysis and sectoraldevelopment. USTDA-funded activitiesare carried out by the U.S. private sector,which often contributes additionalresources to help countries address theirTCB priorities.

Recognizing that public-private alliancesmultiply the impact of official developmentassistance, the United States seeks toengage the private sector in developmentpartnerships. The private sector providesassistance that ranges from developinginformation technology skills to helping

small farmers. Examples of thesepartnerships include the following:

n The CISCO Networking AcademyAlliance, which partners worldwide withseveral technology companies, teachesstudents computer networking andprovides them with the skills requiredto compete effectively in the globalmarketplace.

n Starbucks and Green Mountain Coffee,through the Finance Alliance forSustainable Trade, help small farmers shiftto sustainable growing techniques and

THE UNITED STATES AND THE DOHA COMMITMENT4

While labor laws in Central America generallyconform to the International LaborOrganization’s Fundamental Principles andRights at Work, enforcement difficultiesremain. The U.S. Department of Labor helpsto increase compliance with national laborlaws in Central America, Panama, and theDominican Republic. Activities include

promoting transparency through a website onnational labor laws; strengthening inspectionservices of the Ministry of Labor; enhancingalternative dispute resolution mechanisms;and improving public awareness of laborrights. These activities help countries meet thelabor obligations negotiated in their free tradeagreements with the United States.

LABOR LAW COMPLIANCE IN CENTRAL AMERICA AND THE

DOMINICAN REPUBLIC

Farmers in Kenya grade, weigh, and store produce to maintain quality and safety.

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assist them in capturing a significantmarket premium for certified organiccoffee. This alliance provides assistancein Central America and several Africancountries, including Rwanda,Tanzania,and Uganda.

Local businesses and farmers benefit fromthese efforts by developing new skills andforging partnerships with such companies,which enable them to tap into newmarkets and enhance their overallcompetitiveness.

The United States and its FTA partnershave pioneered efforts to synchronize TCBwith trade initiatives. A systematic andfocused approach to assistance must betaken to support fast-moving negotiationsin the WTO and other forums and toseize trading opportunities. The UnitedStates focuses its TCB efforts on initiativesthat will yield tangible and timely results.

The Dominican Republic-Central America-United States Free Trade Agreementnegotiations marked the first time that aseparate TCB Working Group met inparallel with the negotiating groups. Thismodel has since been used in U.S. FTAnegotiations with the Andean countries,Southern African Customs Union,Thailand,

and others. During negotiations, the TCBWorking Groups provide an opportunityfor both bilateral and multilateral donorsto listen and respond to the needs andpriorities of our prospective FTA partners.Once the FTA is concluded, standing TCBCommittees make aid for trade bothmore effective and more efficient. Officialdevelopment assistance funding is limited,but by working together we can leveragethe available funds to get the most out ofour efforts.

Free Trade Agreement negotiations andTCB efforts work to strengthen labor andenvironmental protection, which arecritical dimensions of trade. U.S. labor-related TCB efforts include activitiesdesigned to strengthen the rule of laborlaw, build efficient and responsive labormarkets, address HIV/AIDS throughworkplace prevention, and reduce theincidence of the worst forms of childlabor. Environmental protection isachieved through programs that enforcedomestic environmental laws andregulations, and encourage citizen partic-ipation in environmental decision making.Other projects help meet internationalenvironmental standards and increaseecotourism.

THE UNITED STATES AND THE DOHA COMMITMENT 5

Interagency working groups within the U.S. Governmenthelp improve the effectiveness and coherence of U.S. tradecapacity building (TCB) activities. Coordination of thesegroups is led by the Office of the U.S.Trade Representative.United States TCB activities are strengthened by theresources and technical expertise of the following agencies:the U.S.Agency for International Development; theMillennium Challenge Corporation; the U.S.Trade andDevelopment Agency; the Departments of Agriculture,Energy, Interior, Justice, Labor, State, and Transportation;

the Environmental Protection Agency; U.S. Customs andBorder Protection of the Department for HomelandSecurity; the Commercial Law Development Program,International Trade Administration, U.S. Patent andTrademark Office, and the National Institute of Standardsand Technology of the Department of Commerce; the Foodand Drug Administration, the Federal Trade Commission,U.S. Export-Import Bank, and the Federal Mediation andConciliation Service.

INTERNATIONAL

TRADE CAN PLAY A

MAJOR ROLE IN THE

PROMOTION OF

ECONOMIC

DEVELOPMENT AND

THE ALLEVIATION OF

POVERTY.

ÑDOHA DECLARATION

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THE UNITED STATES AND THE WTO6

Building the capacity of developingcountries to trade helps countries realizethe benefits of agreements reached in theDoha negotiations. The United States alsoprovides developing countries withtechnical assistance for WTO agreements.This assistance enables developingcountries to negotiate and implementmarket-opening and reform-oriented tradeagreements on a bilateral or regional basis.

The United States provides support forcountries that are in the process ofacceding to the WTO. The United States

provided WTO accession andimplementation services to Nepal, whichofficially became a WTO member in 2003,and Cape Verde and Saudi Arabia.Ukraine and a number of other countriesin Eastern Europe and the former SovietUnion also have benefited from U.S.support in this area. In 2004, USAIDresponded to Ethiopia’s request forassistance in its accession process byinitiating a major, three-year project. TheUnited States provided broad accessionsupport in 2004 to Iraq and Afghanistan.

THE UNITED STATES AND THE WTO

Grain at a market in Afghanistan.

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THE UNITED STATES AND THE WTO 7

TRADE CAPACITY BUILDINGIN SUPPORT OF THE JULYFRAMEWORK

In July 2004,WTO members set out anambitious agenda for completing theDoha Round of trade negotiations. Atthat time, members also recognized thatdeveloping country partners would needsome assistance to participate in thenegotiations, implement the agreements,and take advantage of the benefits of freetrade. The “July Framework” specifies fourareas of immediate interest: tradefacilitation, agriculture, non-agriculturalmarket access, and services. United StatesTCB efforts support our developingcountry trade partners in these areas.Examples of these efforts follow:

TRADE FACILITATION

United States assistance for tradefacilitation supports regional and nationalinitiatives to simplify, standardize, andharmonize customs and other borderprocedures; improve customs cooperationat bilateral, regional, and multilateral levels;and develop and strengthen cooperationand consultation between customsadministrations and stakeholders. This may

include work in transparency, adminis-trative practice and organization, riskmanagement, customs valuation,harmonized system classification, rules oforigin, importer audit, integrity awareness,and automation.

United States TCBpartnerships achievepractical results when recipient countriesidentify their trade facilitation needs, takinginto account input from all governmentagencies, the private sector, and civil society.Success is highly dependent on localcommitment and intense collaborationwith our developing country partners.Examples of trade facilitation capacitybuilding follow:

n U.S.TCB supports implementation ofcommitments under the DominicanRepublic-Central America-United StatesFree Trade Agreement to harmonizetrade facilitation procedures throughoutthe region. Technical experts provideguidance on implementing new customsreforms and developing institutionalsupport for operations.

n The United States is providing technicalassistance to support the One-StopJoint Border Control Project at theKenya-Uganda border, which seeks to

United States technical assistancesupported Cape Verde to gather andprocess the legal and technical informationdemanded by WTO requirements,including the Memorandum of ForeignTrade Regime, action plans, and responsesto questions raised by WTO members

regarding Cape Verde’s trade regime. Thisassistance also facilitated a public-privatedialogue in Cape Verde that helpeddevelop a national consensus.

CAPE VERDE ACCESSION TO THE WTO

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THE UNITED STATES AND THE WTO8

harmonize customs, immigration, andcargo tracking communications. Theproject helps develop an informationtechnology corridor spanning the traderoute between Mombasa, Kenya, andKampala, Uganda.

n The United States helped thePhilippines to standardize and simplifyprocesses and procedures for clearinggoods at the border. As a result, thePhilippines developed a new customs

valuation law to implement WTO rules,and established an invoice value basisfor shipments.

AGRICULTURE

Economic growth, trade expansion, andincreased income-earning opportunities indeveloping countries are often linked tothe agriculture sector. Trade-relatedstandards, changing consumer preferences,and international advancements in scienceand technology are important factors

Armenian meat and dairy exporters need tocomply with international food safetystandards in order to successfully market theirproducts abroad. The U.S. Department ofAgriculture (USDA) provided assistance toArmenian exporters in such areas as standardscompliance, packaging and labeling,nutritional analysis, and refrigeration.

The USDA also conducted regionalworkshops on pasteurization to helpArmenian dairies adopt quality improvement,food safety, and shelf-life extension in order tocomply with international food safetyrequirements. Armenian meat and dairyproducers are now better positioned for theglobal marketplace.

ARMENIAN PRODUCERS MEET INTERNATIONAL FOOD

SAFETY REQUIREMENTS

Improving productivity of the agriculture sector in Egypt.

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affecting agriculture. To be successful,agricultural producers in developingcountries require training, infrastructuresupport, good governance, sound policies,and a solid and progressive institutionalbase that supports market participation.

One of the primary U.S. assistancemechanisms for agriculture is thePresidential Initiative to End Hunger inAfrica, which will help support theComprehensive African AgriculturalDevelopment Program. This Initiative is afive-year program funded at $200 millionin 2006, and comparable amounts insubsequent years.

WTO Agriculture Agreement

Building on Uruguay Roundcommitments and the July 2004Framework agreement for agriculturalmodalities, the United States haspresented a comprehensive package tomove the WTO agriculture negotiationsforward and unleash the full potential ofthe Doha Development Agenda. TheUnited States calls for WTO membersto aggressively reduce tariffs, rapidlyeliminate export subsidies, andsubstantially reduce trade-distortingdomestic support, with deeper cuts by

countries with larger subsidies. The U.S.proposal calls for reform in two stages:

n Stage 1: Substantial reductions of tradedistorting support measures and tariffs,along with the elimination of exportsubsidies, to be phased-in over a five-year period.

n Stage 2: Five years after implementingthe first stage, an additional five yearphase-in period will deliver theelimination of remaining trade-distortingpolicies in agriculture.

Reforming global agricultural trade iswidely recognized as an important steptoward expanding economic developmentand is forecasted to lift millions out ofpoverty.

Cotton

Cotton-producing countries are goodexamples of economies where agricultureis critical. African countries haveunderscored the important role thatcotton plays in sustaining their economiesand livelihoods. These countries haveasked the international community to helpaddress the trade and developmentaspects of the cotton market. The United

THE UNITED STATES AND THE WTO 9

Dragon fruit from Vietnam has a strongreputation among European importers, but ascompetition from other exporting countriesincreases, Vietnam’s fruit industry must takeaction to maintain its market share vis-à-visinternational competitors. USAID’s VietnamCompetitiveness Initiative helps dragon fruitexporters to develop a strategy for marketingdragon fruit in Europe. The strategy includes

improving fruit quality through the applicationof European procedures, adopting new andbetter varieties, lowering air freight coststhrough consolidation of shipments, andimproving packaging and post harvesthandling. The strategy helps boost exports andimproves Vietnam’s reputation as a reliablesource of high-quality fruit.

MARKETING VIETNAMESE DRAGON FRUIT TO EUROPE

BUILDING THE

CAPACITY OF

DEVELOPING

COUNTRIES TO

TRADE WILL ALLOW

THE BENEFITS OF

THE DOHA

NEGOTIATIONS TO

BE SUSTAINED AND

BENEFICIAL TO THE

ENTIRE WTO

MEMBERSHIP.

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States is responding with both new andenhanced initiatives.

African countries including Benin, BurkinaFaso, Chad, and Mali (the “four cottoncountries”), and Senegal stand to benefitfrom the June, 2005, commitment byPresident George W. Bush to double U.S.assistance to Africa by the year 2010.These West African countries will benefitfrom the G-8’s debt relief package forheavily indebted poor countries.

The Millennium Challenge Corporation(MCC) offers a significant new opportunityfor many countries to address long-termdevelopment obstacles, including thoserelated to cotton. It will result in hundredsof millions of grant dollars flowing into theregion in a manner determined byrecipient countries. Benin, Burkina Faso,Mali, and Senegal are each eligible tonegotiate with the MCC for a Compactthat would yield a large-scale grant.

USAID has designed a developmentassistance package for West Africa that willinclude strengthening private agricultureorganizations, expanding the use of goodagricultural practices, and improving thequality of cotton produced in the region.

Other U.S. efforts include sponsorship ofthe successful Biotechnology Conferencein Mali, as requested by the four cottoncountries; USDA-supported cottonclassing and soil management programsfor the four cotton countries; and U.S.Trade and Development Agency grantsrelated to agribusiness in West Africa.

NON-AGRICULTURALMARKET ACCESS

United States’ assistance helps developingcountries to take advantage of new tradeopportunities in non-agricultural goods andservices. Projects include supporting theremoval of micro-level policy and regulatoryconstraints to business expansion, improvedaccess to finance, marketing, and technology,and helping to improve product quality,productivity, and access to global markets(e.g., niche markets, branding, certifications).For instance, the United States is making theInternational Trade Centre’s Market AccessMap, which allows users to analyzeprotection at different levels of sectoral andregional aggregation, available to LDCexporters.

SERVICES

THE UNITED STATES AND THE WTO10

Heavily congested ports in South Africa faceincreasing difficulty competing in time-sensitive markets in North America andEurope. The Trans-Kalahari Corridorprovides an alternative route to help relievethese congested ports. The corridor connectsNamibia’s Atlantic coast to its capital, toBotswana and to South Africa. USAIDinitiated a pilot project, and the U.S. Trade

and Development Agency helped fund afeasibility study, to improve the Trans-Kalahari Corridor. Improvements intransport costs, efficiency, and reliability willbenefit the entire region. The corridor willhelp extend Namibia’s ability to conduct tradeand create a western gateway for the SouthernAfrica Development Community.

TRANS-KALAHARI CORRIDOR IMPROVES MARKET ACCESS

IN NAMIBIA

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THE UNITED STATES AND THE WTO 11

The United States provides support fordeveloping countries that pursue open andwell-regulated services markets toaccelerate economic development andpoverty reduction. United States TCBassistance supports implementation of theGeneral Agreement on Trade in Services(GATS), as well as activities that helpdeveloping countries build their capacity toparticipate in trade in services and createcomplementary legal, regulatory, andinstitutional frameworks.

One way in which the United States seeksto help developing countries participate inthe multilateral trading system is throughits partnership with the International TradeCentre to conduct Services CapacityAssessments and GATS training. ServicesCapacity Assessments aim to inform keypolicy makers of the opportunities andnational interests of participation in GATSnegotiations. Efforts such as these helpdeveloping countries build strong services

sectors and reinforce the commitments toprovide technical assistance made in theJuly Framework.

Other assistance ranges from energyservices to sustainable tourism. The SouthAsia Regional Initiative includes an energycomponent that promotes mutuallybeneficial energy linkages among thenations of South Asia. The programpromotes an understanding of thebenefits of regional energy trade andbuilds capacity for energy tradingopportunities. In Ecuador, technicalassistance and training supports local-based ecotourism as a productivealternative to overfishing, enhances localgovernance, and promotes a marinezoning plan.

Prior to joining the WTO in 2000, Jordanfaced enforcement difficulties regardingintellectual property rights (IPR). USAID andthe U.S. Patent and Trademark Office workedwith the Jordan Intellectual PropertyAssociation to improve enforcement of IPR inJordan. As a result of U.S. assistance, theGovernment of Jordan drafted legislation tojoin international agreements on patent andtrademark registration. The United States also

provided support for Jordan’s National Libraryand public seminars to improve copyrightawareness and strengthen enforcement. Jordanis now regarded as a regional leader in theenforcement of intellectual property laws.The number of copyright infringement casesreferred to the courts has sharply increasedwith about 80 percent of those cases resultingin corrective actions.

REFORMING INTELLECTUAL PROPERTY RIGHTS IN JORDAN

Produce from Kenya ready forshipment, locally or worldwide.

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THE UNITED STATES AND THE LEAST DEVELOPED COUNTRIES12

The United States recognizes that thecapacities of the Least DevelopedCountries (LDCs) call for special attention,and has devised specific assistancemechanisms to address LDC challenges.Among these mechanisms that supportLDC efforts to build their trade capacityare the bilateral Millennium ChallengeCorporation (MCC) and the multilateralIntegrated Framework for Trade-RelatedTechnical Assistance to LDCs (IF).

MILLENNIUM CHALLENGECORPORATION

In Monterrey, Mexico, President George W.Bush called for a new compact for globaldevelopment to link greater contributionsfrom developed nations to greaterresponsibility from developing nations. Inresponse, the United States established the MCC in 2004 to work with some of the

THE UNITED STATES AND THE LEASTDEVELOPED COUNTRIES

U.S. regional programs in West Africa support local populations.

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THE UNITED STATES AND THE LEAST DEVELOPED COUNTRIES 13

poorest countries in the world. The MCCdraws on 50 years of U.S. developmentexperience and is based on the principlethat aid is most effective when it reinforcesgood governance, economic freedom, andinvestments in people that promoteeconomic growth and reduce extremepoverty.

At the heart of the MCC is the Compact,or agreement, between a developingcountry and the MCC. Working closelywith the MCC, countries that are eligible toreceive Millennium Challenge Account(MCA) assistance are responsible foridentifying the greatest barriers to theirdevelopment, and developing an MCAprogram that has broad civil society input.MCA participation requires a high-levelcommitment from the selected country. Inturn, the United States is committed tosupporting MCA Compact partners tohelp them reach their full potential. Trade isonly one aspect of economic growth, andthe Compact provides assistance broaderthan TCB alone. However, the UnitedStates recognizes that trade is a vitalcomponent of MCA countries’ efforts toachieve their potential and become fullparticipants in the global trading system.The MCC is an innovative response by theUnited States to the needs and prioritieswe have heard from around the world,including at Doha.

The MCC is working with LDCs and otherdeveloping countries and has compactswith Cape Verde, Honduras, Georgia,Madagascar, and Nicaragua. Twenty-threecountries are now eligible to make MCAprogram proposals. Another fifteencountries are eligible for the MCC’sThreshold Program. The U.S. Governmentlooks forward to working with othergovernments demonstrating a commitmentto the MCA principles in the coming years.

INTEGRATED FRAMEWORK FORTRADE-RELATED TECHNICALASSISTANCE FOR THE LEASTDEVELOPED COUNTRIES

The United States is a strong supporterand active player in the IF, offering globalleadership through our efforts in Genevaand concrete implementation at the locallevel. Working with LDC partners andother donors, we see the IF as being aneffective mechanism for mainstreamingtrade into each country’s povertyreduction strategy, and coordinatingdelivery of assistance with the needsidentified in the IFdiagnostic studies.

A key part of U.S. support has been toserve two terms as a coordinator ofbilateral donor participation in the IF.Experience shows that the sharing of timelyand concrete information on the status ofIF implementation on the ground facilitatespractical problem-solving, promotes thedissemination of best practices, and helps

We want to make decisions ourselves.

It is our country, and we have to take on

leadership and responsibilities. Ladies and

gentlemen, if you take a look at the last

two issues, our vision and country

ownership, you will realize why the MCA

is so important for us. Here we have a

new approach which helps us to

implement our vision. We have

opportunities to design and implement

our own programs.

Marc RavalomananaPresident of Madagascar April 19, 2005

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maintain the momentum of the IF in eachcountry. To advance these objectivesfurther, the United States initiated andorganized an IF simulation exercise inSeptember 2005 in Addis Ababa. Publicand private sector representatives from 17LDCs, 12 donor countries, and fivemultinational corporations came togetherto identify best practices and concretesteps for strengthening the IF process ineach participating country. The UnitedStates provided financial support for thisevent, as did the United Kingdom, Norway,and Denmark.

At the country level, U.S. donor agenciesand their field missions actively look foropportunities to integrate national prioritiesidentified through the IF process into theirlong-term regional and country assistanceprograms. In Mali and Mozambique,USAID field missions are providingcontinuous support to the NationalSteering Committees in their roles as thelocal “IF donor facilitator.” Mozambique’ssuccess in mobilizing high level public andprivate sector support for the IF, and acoordinated local donor response, hasbeen identified as a “best practice” foroverall management of the IF process.

THE UNITED STATES AND THE LEAST DEVELOPED COUNTRIES14

USAID assists Mozambique as the leadfacilitator for the Integrated Frameworkprocess. USAID supported the Governmentof Mozambique to devise a national strategyand build consensus for trade-related growthand poverty reduction. Multiplestakeholders from the government, privatesector, and multilateral and bilateral donorsdeveloped a Diagnostic Trade IntegrationStudy, which was vetted in October 2004 ina widely attended national validation

workshop. As a result, consensus wasreached, key constraints were identified, andthe incumbent government took steps toaddress those constraints. Requests todonors were also coordinated through the IFSteering Committee. This effort withstoodits first major test: Mozambique’s newgovernment, elected following the nationalvalidation conference, endorsed and is actingon the recommendations agreed upon bythe previous administration.

INTEGRATED FRAMEWORK IN MOZAMBIQUE

In Uganda,TCB helps smallbusinesses grow.

The Government of Mali thanks the

United States for its trade-related assistance

and for its Lead Donor role within the

context of the Integrated Framework,

which is dear to the Ministry of Industry

and Commerce. This assistance helps

Malian exporters to conform to trade

requirements in international markets. This

opportunity reminds us all that enhancing

exports contributes greatly to rural

poverty reduction . . .Thanks to the United

States, the Malian public institution

responsible for trade policy and trade

promotion has been equipped with

computers, contributing greatly to its

efficiency and performance. U.S. assistance

is crucial for helping the Malian private and

public sector stakeholders, involved in

international trade, to understand better

the trade requirements in foreign markets.

Mr. Mahamane Toure Director, Department of Commerceand CompetitionOctober 7, 2005

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The U.S. bilateral TCB assistance to LDCsparticipating in the IF process has risen from$36.6 million in 2001 to over $132.9 millionin 2005. This is supplemented by U.S.contributions to the IF trust fund and torelated programs of the International TradeCentre in Geneva.

The United States has been an activeparticipant in and supporter of a new Aidfor Trade Initiative to support the DohaDevelopment Agenda. Such an initiativeshould take a practical approach that buildson efforts that are currently working. TheIF, a mechanism that has evolved throughexperience and has made measurableprogress in integrating sound trade consid-

erations into national development plans,should be the center of such an initiative.

The Aid for Trade Initiative should focus onconcrete enhancements to the IF, including,but not limited to, increased funding forassistance. This approach has theadvantage of maintaining established andrecognized principles for effective TCB,while avoiding a negative impact ofseparating the trade and developmenttracks of the Doha Development Agenda.The United States looks forward toworking with LDCs to make sure that anAid for Trade Initiative benefits them in apractical way.

THE UNITED STATES AND THE LEAST DEVELOPED COUNTRIES 15

WE ARE COMMITTED

TO ADDRESSING THE

MARGINALIZATION

OF LDCS IN

INTERNATIONAL

TRADE AND TO

IMPROVING THEIR

EFFECTIVE

PARTICIPATION IN

THE MULTILATERAL

TRADING SYSTEM.

ÑDOHA DECLARATION

Clients using a Community Information Center in Mali.

PHOTO CREDITS

Cover photos:Afghan girl: Alejandro Chicheri/WFPCoffee farmer: Lisa Rogers/DAIKenyan woman: USAID/KenyaWorker: K. BurnsChild at computer: USAID

Coffee farmer: Lisa Rogers/DAI (p. 1)Kenyan woman: USAID/Kenya (p.4)Grain: Martin Lueders/USAID (p. 6)Egyptian farmer: USAID/Egypt (p. 8)Produce: USAID/Kenya (p. 11)Worker: USAID (p. 12)

Worker: K. Burns (p. 14)Woman at the computer: D. Bilodeau (p. 15)

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TCB CATEGORY 2001 2002 2003 2004 2005

United States Trade Capacity Building Assistance by Category2001-2005

ANNEX

Source: U.S. Trade Capacity Building Database, USAID Development Information Services, http://qesdb.cdie.org/tcb/index.html.

Survey definitions can be found in the U.S. Trade Capacity Building Database (www.usaid.gov, keyword: TCB Database). Survey methodology can be foundin the 2001 report United States Government Initiatives to Build Trade-Related Capacity in Developing and Transition Countries – Main Report.

WTO Awareness 8,250,253 9,518,213 8,389,916 6,297,984 6,857,445

WTO Accession 8,112,957 4,074,503 6,201,026 3,431,274 9,925,264

WTO Agreements (Sum of) 37,572,617 36,325,261 35,088,900 25,012,669 19,858,920

Agreements on Trade in Goods 2,653,722 1,039,694 671,330 380,349 998,975

Agreement on Agriculture 4,105,782 2,186,466 729,950 987,205 1,549,304

Agreement on Sanitary and Phytosanitary (SPS) Measures 6,788,308 9,857,862 6,995,360 7,246,468 8,725,989

Agreement on Technical Barriers to Trade (TBT) 4,840,140 4,643,520 4,401,560 1,801,453 1,642,870

Agreement on Trade-Related Investment Measures (TRIMS) 1,956,048 330,000 220,070 165,291 10,000

Agreement on Antidumping 32,770 703,562 103,680 202,462 30,000

Agreement on Customs Valuation Methods 3,462,136 3,974,680 6,651,130 3,014,549 1,000,506

Agreement on Rules of Origin 1,459,185 1,211,590 659,070 989,661 802,275

Agreement on Import Licensing Procedures 1,366,840 383,000 52,230 76,000 151,800

Agreement on Subsidies and Countervailing Measures (CVMs) 198,440 237,480 236,600 307,850 161,117

Agreement on Safeguards 108,400 664,562 149,750 272,027 101,117

General Agreement on Trade in Services (GATS) 3,423,691 1,558,513 3,878,527 1,086,044 1,518,317

Agreement on Trade-Related Intellectual Property Rights (TRIPs) 3,558,952 6,215,359 7,027,824 4,708,533 1,526,357

Agreement on Dispute Settlement 258,942 736,100 1,568,210 745,216 378,975

Agreement on Trade Policy Review Mechanism 1,508,041 485,000 252,920 219,220 15,000

Agreement on Government Procurement 1,851,219 1,993,873 1,480,000 2,029,473 696,317

Other WTO Agreements - 104,000 10,689 777,868 550,000

Trade Facilitation (Sum of) 111,337,461 167,787,129 224,311,593 278,203,991 367,869,266

Customs Operation & Administration - 19,900,167 21,505,858 31,801,583 17,004,953

E-Commerce & Information Technology - 22,635,501 27,446,566 23,009,965 42,466,015

Export Promotion - 30,992,468 67,413,517 87,250,531 97,755,987

Business Services & Training - 74,482,426 76,102,461 94,645,233 153,900,696

Regional Trade Agreements (RTA) - 9,449,448 29,262,861 32,741,228 28,684,386

Other Trade Facilitation - 10,327,118 2,580,331 8,755,451 28,684,386

Human Resources & Labor Standards 132,074,621 99,664,527 115,292,905 138,396,841 87,695,235

Financial Sector Development & Good Governance 63,332,344 68,850,959 88,730,327 86,135,648 167,683,650

Physical Infrastructure Development 43,251,493 19,401,099 44,063,581 119,723,023 347,047,431

Environmental Trade & Standards 34,465,246 19,310,946 28,903,590 29,220,906 29,287,153

Competition Policy & Foreign Investment 37,038,793 28,667,469 23,901,142 22,824,831 27,480,569

Trade-Related Agriculture 41,628,190 84,002,132 104,494,091 114,906,661 160,986,437

Tourism Sector Development 6,051,892 20,989,283 10,623,252 19,126,614 21,882,684

Other Services Development 21,897,831 23,619,182 6,373,076 6,370,782 4,385,429

Government Transparency & Interagency Coordination 7,576,435 22,266,038 21,839,261 22,125,464 52,775,117

Total Trade Capacity Building 598,749,112 637,835,149 760,120,442 921,160,431 1,342,000,240

ANNEX16

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