Committee on Trade and Development - A framework for modernizing and revitalizing the deliberative function of the WTO on trade and development : toward a more sequenced approach to bridge the missing link between domestic trade policies and the WTO trade rules - Communication from Japan

A FRAMEWORK FOR MODERNIZING AND REVITALIZING THE DELIBERATIVE
FUNCTION OF THE WTO ON TRADE AND DEVELOPMENT:
TOWARD A MORE SEQUENCED APPROACH TO BRIDGE
THE MISSING LINK BETWEEN DOMESTIC TRADE
POLICIES AND THE WTO TRADE RULES

COMMUNICATION FROM JAPAN

The following communication, dated 5 November 2025, is being circulated at the request of the delegation of Japan.

 

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1  OBJECTIVE

1.1.  Japan presented several viewpoints as trade-related takeaways from the Ninth Tokyo International Conference on African Development (TICAD 9) through its session at the WTO Public Forum[1] and the information agenda at the General Council meeting last October.[2] These include: i) (as a premise) trade is one tool for development, and the WTO is only one part of the broader global community which contributes to the development, hence, there needs to be even more focus on the WTO's unique added value; ii) (as a common objective) promoting the integration of developing country Members including least developed countries (LDCs) (hereinafter referred to as "the developing countries") into global trade and supply chains benefits the entire world economy; and iii) (as an effective means) the WTO could foster trust and partnership by improving the trade and investment environment in developing countries. In our view, these three viewpoints can serve as a basis for the Committee on Trade and Development (CTD) delegates to consider what they can collectively work on, putting aside the differences among their respective positions.

1.2.  This communication aims to present a more concrete suggestion to translate these viewpoints into actionable and practical works in the CTD, by presenting a more sequenced approach to bridge the missing link between domestic trade policies and WTO trade rules, by calling for:

_          i._        Firstly, drawing applicable lessons on effective trade policies for the integration of developing countries into global trade and supply chains, from Members' experiences including – but not limited topast experiences of technical assistance and capacity building (TACB) and Aid for Trade, as well as from other successful experiences of Members using available resources such as past Trade Policy Reviews (TPRs); and

_         ii._        Secondly, sharing such lessons within the CTD to build a shared knowledge base for more evidence-based discussion on the relationship between such effective trade policies and WTO trade rules.

2  DRAWING LESSONS ON EFFECTIVE TRADE POLICIES FOR THE INTEGRATION OF DEVELOPING COUNTRIES INTO THE GLOBAL TRADE AND SUPPLY CHAINS

2.1.  One valuable takeaway from the Development Retreat was the need to deepen discussion on Members' domestic policies helping developing countries' integration into global trade and supply chains. It was mentioned in the General Council Chair's takeaways (JOB/GC/425) that "(b)y exchanging best practices, Members can enhance their policies, improve integration into regional and global value chains, and reinforce the WTO as a platform for knowledge sharing." To that end, paragraphs 2.2 to 2.4 introduce some options.

2.2.  Members – both donors and beneficiaries – have accumulated rich lessons to share which they learned from their participation in TACB and Aid-for-Trade (AfT) programmes. Now, Members at the CTD could further debate how such lessons from the past TACB and AfT programmes could be best compiled to serve Members in identifying effective domestic trade policies helping developing countries' integration into global trade and supply chains.

_          i._        For that purpose, Members may wish to unpack the factors for the success of previous TACB and AfT programmes. For example, the WTO Secretariat's 2010–2011 report on AfT case studies in the Asia-Pacific region showed some critical factors for the success and sustainability of AfT interventions, such as: i) ownership by the beneficiary country at both political and technical implementation level; ii) alignment of the project with the beneficiary country's national priorities; iii) involvement and commitment of the private sector in both prioritizing needs and implementation; and iv) commitment by the beneficiary country to implement the lessons learned from the project.

_         ii._        Likewise, Members may wish to introduce policy-oriented lessons shared with other Members through their bilateral or trilateral AfT programmes. Examples of such lessons and knowledge shared through Japan's recent trilateral cooperation include: i) deepening the understanding of ASEAN economic integration (its history, strategy, measures, etc.) for the purposes of policy development for AfCFTA implementation[3]; and ii) knowledge and skills regarding success stories (best practices), challenges, and lessons learned in trade and investment promotion as the collaboration between Japan and Indonesia for African countries.[4]

2.3.  Previous TPR reports and findings can be used as a valuable source of information for identifying policies to address constraints hindering integration into global trade and supply chains.

2.4.  Members may wish to bring in other successful national experiences on the proactive use of their trade policies for their integration into global trade and supply chains. Perspectives offered by business stakeholders would also be valuable.

3  EXCHANGING SUCH LESSONS WITHIN THE CTD TO BUILD A SHARED KNOWLEDGE BASE FOR MORE EVIDENCE-BASED DISCUSSION ON THE RELATIONSHIP BETWEEN SUCH EFFECTIVE TRADE POLICIES AND WTO TRADE RULES

3.1.  Using such applicable lessons, the CTD, in line with its terms of references (WT/L/46), can function as a venue for Members to build a shared knowledge base, which would inform Members' discussion on the relationship between specific domestic measures necessary for developing countries' economic advancement into global trade and supply chains, and WTO trade rules.

3.2.  Assisted by the Secretariat's useful inputs including its recent analytical works on special and differential treatment (S&DT) (JOB/COMTD/15 and JOB/COMTD/15/Add.1), such discussion could focus on: i) how these measures relate to WTO trade rules; and ii) how WTO rules can support those domestic measures. This would further guide Members' evidence-based discussion for: iii) identifying trade rules (both existing ones and new ones to be negotiated) that promote greater integration into global trade and supply chains; and iv) making S&DT more targeted and "tailor-made" to fit the specific circumstances of each developing country Member.[5]

4  CONCLUSION

4.1.  The idea proposed in this communication is a framework for modernizing and revitalizing the deliberative function of the WTO on trade and development within the context of WTO reform. And in our view, the three perspectives mentioned in paragraph 1.1, particularly the common fundamental objective of better integrating developing countries into global trade and supply chains, through the rules-based and open multilateral trading system with the WTO at its core, can provide a viable springboard on which CTD delegates may work collectively and pragmatically.

4.2.  A more sequenced approach to bridge the missing link between domestic trade policies and WTO trade rules, as discussed in this communication, could lead to further operationalization of the function of the CTD as a focal point for consideration and coordination of work on development in the WTO. The CTD could then feed the knowledge gained in this way back to other relevant WTO bodies.

4.3.  This communication is not for proposing outcomes based on specific timelines. Rather, Japan expects further ideas from other Members as well. Japan looks forward to continuing the contribution to the Member-led discussion toward the revitalization of the trade and development work, with a view to providing practical input into the broader discourse on WTO reform.

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[1] The session titled "Co-Creation Beyond Aid: Trade Vision in TICAD9" explored how well-designed trade, industrial, and investment policies, under the digitized and modernized trade system anchored in WTO and AfCFTA frameworks, can support the co-creation of innovative solutions through public and private collaboration to address common global challenges and support inclusive development. Panelists also discussed potential ways for the WTO to modernize its deliberative and negotiating functions to provide actionable insights for not only African but also global stakeholders shaping the future of trade-driven development.

[2] The outcome document of TICAD 9 "Yokohama Declaration" includes several particularly noteworthy points regarding trade and development, including technology transfer and the relationship between trade rules and domestic policies. These include: i) regional economic integration and inter-regional connectivity; ii) enhancing regional value chains to promote industrialization and job creation; iii) trade facilitation and the promotion of intra-regional trade (such as the implementation of the African Continental Free Trade Area); iv) the relevance of current WTO work, such as the digital trade and the moratorium on imposing customs duties on electronic transmissions; and v) the importance of improving the business environment to strengthen the role of the private sector as an engine of productive transformation.

[3] These are offered in a training programme organized by Japan in FY2024 in collaboration with the ASEAN Secretariat, as a cooperative project based on the Memorandum of Cooperation between Japan's JICA (Japan International Cooperation Agency) and the AfCFTA Secretariat.

[4] These are offered in a training programme on trade and investment promotion for African countries held in Jakarta from 8-20 July 2025, based on the Memorandum of Cooperation for Strengthening Cooperation with African Countries concluded between JICA and the Ministry of Foreign Affairs of Indonesia.

[5] This requires i) which S&DT provisions are actually being used; ii) which are beneficial; iii) which are not being used; and iv) what unintended effects have resulted from their use, all with a view to promoting developing countries' greater integration into global trade and supply chains.