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U.N. Conference on Trade and DevelopmentLink to Address of OrganizationWeb Address of this Organization

The United Nations Conference on Trade and Development (UNCTAD) is the focal point within the United Nations for the integrated treatment of trade and development and inter-related issues in the areas of finance, technology, investment, and sustainable development. UNCTAD is a permanent intergovernmental conference and was established in 1964 as a subsidiary body of the United Nations General Assembly. UNCTAD has its secretariat in Geneva and is headed by Secretary-General Rubens Ricupero of Brazil.

UNCTAD promotes commodity diversification and commodity-based development

UNCTAD is intended to serve as a forum for the examination of these issues and to encourage consensus-building for reformulation of policies. Its intergovernmental meetings, analytical and research work, and technical cooperation programs are designed to play a role in helping developing countries, in particular the least developed countries (LDCs), and economies in transition, better understand how to design policies for an efficient integration into the world economy.

Ministerial Conferences
UNCTAD's work program is set every four years at a Ministerial-level conference. Ten plenary sessions of the conference have been held: the first in Geneva in 1964, followed by UNCTAD II in New Delhi in 1968, UNCTAD III in Santiago in 1972, UNCTAD IV in Nairobi in 1976, UNCTAD V in Manila in 1979, UNCTAD VI in Belgrade in 1983, UNCTAD VII in Geneva in 1987, UNCTAD VIII in Cartegena in 1992, and UNCTAD IX in Midrand, South Africa in 1996.

The Bangkok "Plan of Action"
The most recent ministerial conference, UNCTAD X, was held in Bangkok, Thailand from 12 to 19 February, 2000. The Bangkok "Plan of Action" included an evaluation of the developmental impact of globalization, stocktaking of major international initiatives and developments as well as recommendations for measures and initiatives to be undertaken by the international community. The Plan of Action also details UNCTAD's work program for its subprograms including: globalization, interdependence, and development; investment, enterprise, and technology; international trade; services infrastructure, trade efficiency, and human resources development; least developed countries, land-locked developing countries, and small island developing states. Finally, the Plan also articulates the basis upon which UNCTAD should undertake technical cooperation programs with a major emphasis on capacity-building activities.

UNCTAD's Secretariat Structure
UNCTAD's subprograms are mirrored in its secretariat structure. The division on globalization and development strategies (GDS) examines and analyzes trends in the global economy as well as drawing lessons from specific development challenges and successful experiences of developing countries and economies in transition. The Division on International Trade in Goods and Services, and Commodities (DITC) assists developing countries in their efforts to integrate effectively into the international trading system. DITC also analyzes the impact of the Uruguay Round Agreements on trade and development and assists countries in enhancing their export capabilities. The focus of the division on Investment, Technology, and Enterprise Development (DITE) is to examine global trends in foreign direct investment and to analyze policies and mechanisms that support the development of micro, small and medium-sized enterprises. DITE's staff also undertake science, technology, and innovation policy reviews to identify policy options for international action. SITE or the Division of Services Infrastructure for Development and Trade Efficiency helps developing countries and economies in transition improve the operations of trade-supporting services including customs, maritime programs, cargo information and multimodal transport systems. The Office of the Least Developed, Land-locked and Island Developing Countries coordinates UNCTAD's work on least developed countries. The office is the focal point for the United Nation's efforts to assist LDCs and will lead the preparation for the Third United Nations Conference on the Least Developed Countries to be held in 2001. The Coordinator's office also helps implement the Barbados Programme of Action for the Sustainable Development of Small Island Developing States, and the Global Framework for Transit Transport cooperation Between Land-Locked and Transit Developing Countries and the Donor Community.

The Trade and Development Board
Between sessions of the quadrennial conference, UNCTAD's governing body, the Trade and Development Board (TDB), holds regular annual sessions each autumn in Geneva to review UNCTAD's various activities. As part of its standing agenda, the TDB examines interdependence and global economic trends as addressed in the annual "Trade and Development Report." The Board also considers the question of UNCTAD's contribution to the implementation of the United Nation's "New Agenda for the Development of Africa." The UNCTAD secretariat prepares and issues an analytical report dealing with aspects of Africa's economic performance and prospects which serves as a basis for the Board's deliberations. Finally, the Board also reviews the work of UNCTAD's intergovernmental meetings convened throughout the year including the expert meetings, commission sessions as well as technical cooperation activities, and cooperation with other international organizations. At present, the Board is comprised of 144 member states and is open to all UNCTAD members.

In addition to its annual session, the Trade and Development Board may hold up to three one-day executive sessions per year to address urgent policy or management issues. Membership in the Trade and Development Board is open to all UNCTAD members.

Commissions and Expert Meetings
UNCTAD has three standing commissions that were established after UNCTAX IX in Midrand, South Africa: Trade in Goods and Service; Commodities; Investment, Technology, and Related Financial Issues; and, Enterprise, Business Facilitation, and Development. The Commissions usually meet once a year for five days. In addition, the Commissions convene up to ten expert meetings a year. These sessions examine issues in depth and participants provide expertise on policy issues under consideration by the Commissions. Where appropriate, UNCTAD invites experts from academia and business to participate as panelists in sessions of expert meetings and Commissions.

Research, Analysis, and Major Publications
UNCTAD disseminates its research and analysis through its three major annual reports as well as occasional publications and analytical databases. The "Trade and Development Report" analyzes and proposes development strategies pertaining to current global economic performance, regional trends and the internationalization of trade, investment and financial flows. The "World Investment Report" details research on trends in foreign direct investment (FDI) worldwide and proposes policy recommendations to further FDI as an important element for development. The "Least Developed Countries Report" serves as the United Nations' most comprehensive and authoritative source of socio-economic analysis and data on the 48 LDCs and identifies major challenges and international support measures concerning these countries. Other major publications include UNCTAD's "Handbook of International Trade and Development Statistics," whose analyses covers basic indicators of development, such as per capita GDP and growth rates.

Technical Cooperation
Providing technical assistance to developing countries and countries in transition is the third major element of UNCTAD's work. In 2000, over 300 projects were being implemented in more than 100 countries, for an annual delivery of approximately US $24 million. UNCTAD's technical assistance activities are funded primarily through voluntary contributions from individual countries, foundations and other international organizations, including the World Bank and the UN Development Program. In accordance with UNCTAD X's adopted recommendations, the organization's technical cooperation program should be focused on: capacity-building to assist developing countries integrate into the global economy; assistance to assisting developing countries to prepare for multilateral trade negotiations, to implement the results and to support cooperation among developing countries at the subregional, regional and interregional levels.
UNCTAD X also reaffirmed the previously adopted principle that LDCs should have priority in the assistance provided by UNCTAD. Member states also determined that the effectiveness and impact of UNCTAD's technical cooperation should be strengthened as an essential complement to the institution's policy-oriented analytical and deliberative work.

The following are examples of UNCTADS technical cooperation programs:

TRAINS (Trade Analysis and Information System)
TRAINS is a PC-based system of databases to provide comprehensive information on trade flows, tariffs, non-tariff measures, trade rules and restrictions, details of the GSP, and the names of importers. The system includes information on 86 markets, representing over 85 percent of world trade. Intended for use by exporters, policy-makers, and trade negotiators, as well as academics and researchers, TRAINS is available on CD-rom in regularly updated editions.
Generalized System of Preferences (GSP)
Intergovernmental negotiations held under the auspices of UNCTAD resulted in the adoption of the Generalized System of Preferences (GSP) whereby preferential tariff treatment is granted on a non-reciprocal and nondiscriminatory basis by most developed countries to exports from developing countries. The project's goals include assisting developing countries to increase their awareness of the potential for trade expansion arising from GSP schemes and to increase their capabilities to make use of these schemes.
AMAD (Agricultural Market Access Database)
Agricultural Market Access Database is a cooperative effort by the Agriculture and AgriFood Canada, EU Commission - Agriculture Directorate-General, the Food and Agriculture Organization of the United Nations, the Organization of Economic Cooperation and Development, the World Bank, UNCTAD, and the Economic Research Service of the United States Department of Agriculture. This database includes a broad set of information such as bound tariff quota volumes, scheduled MFN tariff rates, world reference prices, and primary product equivalent factors. The current database includes information on 50 countries and is updated annually.
Technical assistance on issues relating to the multilateral trading system
This program focuses on capacity-building in trade policy formulation and implementation; identification and treatment of current and pending international and trade issues; assistance to countries acceding to the WTO;
Integrated Program of Technical Assistance for Africa
This program aims to enhance the development prospects and competitiveness of African countries through increased participation in international trade. It emphasizes human resource development and institutional capacity-building, and the strengthening of export supply capabilities.
Debt Management and Financial Analysis System (DMFAS)
DMFAS is a computer-based debt management system assists developing countries and countries in transition develop appropriate administrative, institutional and legal structures for effective foreign and domestic pubic debt management.
Automated System for Customs Data (ASYCUDA)
Applying state-of-the art technology, the ASYCUDA system assists governments to reform and modernize customs procedures and management. The system is used by more than 60 counties and is recognized as one of the standard tools used for customs automation.
Advance Cargo Information System (ACIS)
ACIS provides a tool-box of computer applications designed to produce management and tracking information to address multimodal cargo transit and transport issues. ACIS assists African countries in developing their transport sector, using computer technology to track cargo along land and sea routes. The United States Agency for International Development has co-financed an ACIS project in Southern Africa.
Commodity marketing and price risk management
Inter-country and country-level workshops increase developing countries' knowledge of export marketing; further understanding of commodity price risks and capacity to formulate risk management policies and instruments; and encourage the growth of commodity exchanges.
International Investment Agreements
Activities in this area include country workshops on issues related to international investment agreements. It also involves assistance to countries in issues such as: the organization of bilateral investment treaty or double taxation treaty negotiations; the formulation of regional investment agreements; and in the conceptualization and formulation of national positions vis-…-vis bilateral treaty partners and/or regional integration partners.

Greenhouse Gas Emissions Trading Project

UNCTAD's work on greenhouse gas emissions trading started in 1991. The goal of the project is to reduce the impact of climate change by helping foster the development of an integrated global emissions trading system in which all countries would participate based on the accepted principle of common but differentiated responsibilities.

Emissions trading is part of the market-based approach adopted by states parties to the United Nations Framework Convention on Climate Change at the historic Kyoto conference in 1997. The Kyoto Protocol authorizes four cooperative implementation mechanisms. These are: bubbles, emissions trading, joint implementation, and the Clean Development Mechanism (CDM). Under the Kyoto Protocol, emissions trading allows trading of 'assigned amounts' among Annex B Parties, mostly industrialized countries. Authorized by Article 17, the provision leaves the crafting of implementation details to subsequent conferences.

The Clean Development Mechanism allows a form of credits trading between developed and developing countries. This form of emissions trading is project-based rather than quota-based. Trades of credits earned from projects which are proven to reduce additional emissions can be banked from year 2000 for use during the first commitment period. UNCTAD is involved in research to foster the development of rules and modalities with regard to both international emissions trading and credits trading. In addition to its research work, UNCTAD has recently initiated a significant training and capacity building effort, with a focus on developing countries and countries in transition.

UNCTAD has also been active in expediting the development of a pilot emissions trading market, in order to learn from early experience. In June 1997, UNCTAD joined forces with the Earth Council to create the Greenhouse Gas Emissions Trading Policy Forum.

The Policy Forum has spurred two initiatives:

1.) The International Emissions Trading Association (IETA), an independent, non-profit organization which brings together companies, business organizations and trading associations to share information and practical experiences on emissions trading.

2.) The development of a plurilateral emissions trading system based on the establishment of a network of bilateral and plurilateral arrangements among countries with domestic emissions trading regimes.
Greenhouse Gas Emissions Trading project

US Participation in UNCTAD
The United States views UNCTAD as a useful intergovernmental forum to address the topical issues in trade and development. Through its assessed contribution to the United Nations General Assembly, the United States finances one quarter of UNCTAD's regular budget. In addition, the U.S. government has contributed funds to selected technical cooperation activities. Over the past decade the U.S. government has stressed the need to improve UNCTAD's overall management to ensure more timely delivery of the organization's research and analysis publications. U.S. government policy has also emphasized enhancement of UNCTAD's intergovernmental deliberations by encouraging the secretariat to include in substantive panel discussions private sector participants which have extensive field experience in Geneva-based and regional meetings.

The United States supported strongly many aspects of UNCTAD X's final outcomes, particularly the stress upon the need to for UNCTAD to improve its overall management as well as to provide sufficient staff and adequate resources for the Office of the Special Coordinator for the Least Developed, Land-locked and Island Developing countries, and Small Island Developing States. In addition, the United States actively backed measures to promote improved efficiency in the implementation of UNCTAD's technical cooperation activities so that the organization's capacity-building programs can make a real difference in recipient countries.

Membership: In August 2000, UNCTAD had 190 members. (This number included all UN members plus the Holy See, Monaco, Switzerland, and Tonga.)

Budget: UNCTAD has an annual operational budget of approximately $ US 50 million which is drawn from the United Nations regular budget.

Internet
www.unctad.org

General description of UNCTAD and its programs, current press releases, and selected publications.

Address
UNCTAD
Palais des Nations
8-14, avenue de la Paix
CH-1211 Geneva 10
Tel. 907.1234
Fax. 907.0123

E-mail: ers@unctad.org