WORLD TRADE
ORGANIZATIONTN/CTD/W/25
6 December 2002
(02-6747)
Committee on Trade and Development
Special Session
DRAFT
REPORT TO THE GENERAL COUNCIL
I. INTRODUCTION
1. Paragraph 44 of the Doha Ministerial Declaration reaffirmed that "provisions for special and
differential treatment are an integral part of the WTO Agreements" and directed that "all special and
differential treatment provisions shall be reviewed with a view to strengthening them and making
them more precise, effective and operational."  Ministers also endorsed the Work Programme onspecial and differential treatment set out in the Decision on Implementation-Related Issues and
Concerns, and as per paragraph 12.1 of the Decision directed the  Committee on Trade and
Development (CTD):
(i) "to identify those special and differential treatment provisions that are already
mandatory in nature and those that are non-bi nding in character, to consider the legal
and practical implications for developed and developing Members of converting
special and differential treatment measures into mandatory provisions, to identify
those that Members consider should be made mandatory, and to report to the General
Council with clear recommendations for a decision by July 2002;
(ii) to examine additional ways in which special and differential treatment provisions can
be made more effective, to consider ways, including improved information flows, in
which developing countries, in particular the least-developed countries, may beassisted to make best use of special and differential treatment provisions, and to report
to the General Council with clear recommendations for a decision by July 2002; and
(iii) to consider, in the context of the Work Programme adopted at the Fourth Session of
the Ministerial Conference, how special and differential treatment may be
incorporated into the architecture of WTO rules."
2. In pursuance of this mandate the Trade Negotiations Committee (TNC) in its meeting held on
28 January - 1 February 2002, agreed that "…the review of all special and differential treatment
provisions with a view to strengthening them and making them more precise, effective and
operational provided for in paragraph 44 of the Ministerial Declaration shall be carried out by the
Committee on Trade and Development (CTD) in Special Sessions."
3. The report of the Special Session detailing the work that had been carried out in this period up
to July 2002, including recommendations for "the way forward" was considered and approved by the
General Council on 31 July 2002.  The General Council while accepting that "a large number of
issues, including some that are complex, have been raised, both in the written submissions and the
ensuing discussions", and that "a significant amount of work remains to be done before Members canagree on clear recommendations in a number of areas", instructed the Special Session of the CTD toTN/CTD/W/25
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"proceed expeditiously to fulfil its mandate, as contained in paragraph 44 of the Doha Ministerial
Declaration and paragraph 12 of the Decision on Implementation-Related Issues and Concerns, so as
to be able to report to the General Council with clear recommendations for decision by 31 December
2002".  The General Council gave further instructions regarding inter alia  the consideration of the
Agreement-specific proposals, the analysis and examination of cross-cutting issues, the establishmentof the Monitoring Mechanism, consideration of proposals on institutional arrangements and on
technical and financial assistance and training, and consideration of how special and differential
treatment may be incorporated into the architecture of WTO rules.
4. After a series of informal consultations held in September 2002, the Special Session adopted
an  intensive indicative work programme, so as to fulfil the mandate given by the General Council. As
a result, the Special Session of the Committee on Trade and Development (CTD) met [eight] times
during this period, on 7 & 18 October, 17 Octobe r, 21 & 23 October, 6 November, 12 November, 20
November, 21 & 25 November, and [3 December 2002].  Twelve submissions were received from
Members. These addressed a range of issues such as the Enabling Clause, the Monitoring Mechanism,
the Way Forward (both to December 2002 and the Cancun Ministerial), and provided responses to
questions raised during the consideration of proposals.  These submissions are listed in Annex I.  Five
of the meetings were scheduled as close as possible to the meetings of other WTO bodies, in order toutilise the expertise in those bodies, and were dedicated to discussions on the Agreement-specific
proposals that had been made in those areas.  Anne x II contains the list of Agreements discussed at
each of these meeting .  At the two meetings held on 7 & 18 October and 21 & 25 November 2002
there were discussions on (i) the remaining Agreement-specific proposals in thematic clusters based
primarily on the categories identified in document WT/COMTD/W77/Rev.1; and (ii) systemic andcross-cutting issues.  Discussions on the incorporatio n of special and differential treatment into the
architecture of WTO rules, and consultations on the Monitoring Mechanism for special and
differential treatment were also held during the period.
II. AGREEMENT-SPECIFIC PROPOSALS AND ISSUES
5. The General Council had instructed the Special Session of the CTD to continue, within the
parameters of the mandate contained in paragraph 44 of the Doha Ministerial Declaration and
paragraph 12 of the Decision on Implementation-Related Issues and Concerns, the analysis and
examination of the various Agreement-specific proposals and issues that had been raised in the
written submissions and the discussions, and to do so: (a) on the basis of a possible ordering of these
proposals for consideration in appropriate clusters; and  (b) utilising, as appropriate, the expertise
available in other WTO bodies and negotiating groups, and facilitating this through requesting and
receiving reports from these bodies, and where feasible, through the holding of back-to-back meetingsof the Special Session with the meetings of these bodies and groups.
6. In compliance with this instruction, the Agreem ent-specific proposals were considered in two
ways.  Firstly, proposals relating to certain Agreements were considered in meetings held as close as
possible to the meetings of the respective WTO bodies.  This was done in order to utilise the expertise
in those bodies and these meetings were dedicated to discussions on the Agreement-specific proposalsmade in those areas.  The remaining Agreement-specific proposals were considered in thematic
clusters which were based primarily on the categories identified in WT/COMTD/W/77/Rev.1, namely
(1) "Provisions aimed at increasing the trade opportunities of developing country Members", (2)
"Provisions under which WTO Members should safeguard the interests of developing country
Members", (3) "Flexibility of commitments, of action, and use of policy instruments", (4)"Transitional time periods", (5) "Technical assistance", (6) "Provisions relating to LDC Members,
other than those already included in clusters 1-5" and (7) "Proposals on provisions not included in the
previous 6 clusters, as per the classification in document WT/COMTD/W/77/Rev.1".  In addition, as
instructed by the General Council, reports were requested from the other WTO bodies and negotiatingTN/CTD/W/25
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groups on work that they might have done in regard to special and differential treatment.  The
responses received from 25 WTO bodies have been circulated to Members.
7. While the level of engagement increased significantly, and meetings benefitted from the back-
to-back format and the involvement of capital-based participants, wide differences were apparent
between the responses provided to many proposals and the views expressed by proponents as to thepossible outcome they expected from  the consideration of their proposals.  There also continued to be
notable differences of views on the fora in which some of the proposals should be considered, and
differences as to what a “clear recommendation for decision” necessarily entailed in regard to the
proposals.
8. During the discussions some Members note d that some proposals were already under
consideration within other WTO bodies and could be best addressed in those bodies, including in the
context of the negotiations. In regard to a number of other proposals, the view was expressed thatthese were of a nature that would affect the existing balance of rights and obligations and/or went
beyond the Doha mandate.  Many responses included requests for more information, and for
clarification, especially in regard to the specific difficulties faced  in utilizing existing S&D provisions
to which changes were being sought.  Other Members maintained that the Special Session was the
appropriate forum  to consider all proposals, and that the mandate given by Ministers, in their view,
envisaged the possibility of making changes to provisions.  The non-mandatory and imprecise
character of many S&D provisions was cited frequently as being sources of difficulty in utilizing
these provisions.
9. On some proposals, fewer in number, the responses given indicated the possibility of agreeing
on ways and measures to meet the concerns identified.  [Intensive consultations on these proposalsresulted in a number of recommendations for decision.  These proposed decisions are at Annex III].
III. CROSS-CUTTING ISSUES
10.  A number of systemic and institutional cross-cutting issues were raised both in submissions
from Members, as well as in the discussion on those submissions.  These included issues relating to
the principles and objectives of special and differential treatment; a single or multi-tiered structure ofrights and obligations; coherence; bench marking; technical assistance and capacity building;
transition periods; trade preferences including the Enabling Clause; utilisation; and universal or
differentiated treatment, including graduation . There was some discussion on most of these issues, in
the period up to July 2002.  Some Members felt that these were important and , in some cases ,
fundamental issues, which would need to be examined in greater depth.  Other Members questioned
whether these issues were within the mandate of th e Doha Ministerial Declaration and of the Decision
on Implementation-Related Issues and Concerns.
11.  In July 2002 while considering the report of the Special Session of the CTD, the General
Council instructed the Special Session to continue the analysis and examination of the various cross-
cutting issues and proposals that were raised, within the parameters of the mandate contained in
paragraph 44 of the Doha Ministerial Declaration and paragraph 12 of the Decision on
Implementation-Related Issues and Concerns.
12. The cross-cutting issues were considered in two meetings held on 7 & 18 October 2002, and
that held on 21 & 25 November 2002.  There was vigorous discussion on some cross-cutting issues.
Discussions have taken place on the principles and objectives of special and differential treatment,
coherence, bench-marks, technical assistance and capacity building, transition periods, utilisation,
trade preferences and related issues, including the Enabling Clause, differentiated treatment andgraduation.  While the discussions have shown convergent views in some areas, especially on the
proposals relating to coherence and benchmarking, it is evident that there are major differences ofTN/CTD/W/25
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opinion on most cross-cutting issues, and these will require further discussion if there is to be any
possibility of agreement.
13. There were further discussions on the Enabling Clause as a result of additional submissions
on this issue by a number of Members.  A number of aspects of this issue were discussed.  Many
Members emphasized the importance of the non-discriminatory application of the Enabling Clause toall developing countries.  The need to provide special and differential treatment, including though
waivers, in a manner that does not prejudice the interests of other developing countries was  raised in
a proposal and in the discussion.  Some Members were of the view that there should be flexibility in
the application of special and differential treatmen t, including through preferential treatment.  They
considered that some differentiation amongst developing country Members would be necessary if
special and differential treatment was to be made effective and targeted.  The issue relating to the
definition of developing countries was also raised in this context, with some Members saying thatsuch a definition was necessary to make special and differential treatment more precise, effective and
operational and to confer legal predictability and certainty regarding the beneficiaries.  Other
Members however disagreed, saying that any attempt to define a developing country went beyond
what the Ministers had mandated at Doha.
IV. THE MONITORING MECHANISM
14. In July 2002, the General Council agreed to establish a Monitoring Mechanism for special and
differential treatment.  It also instructed the Special Session of the CTD to elaborate for the Council's
approval, the functions, structure and terms of reference of such a Mechanism, taking into account the
proposals made by the African Group, and the discussions that have taken place thereon in Special
Sessions of the CTD.
15. A number of possible elements relating to the establishment of the Monitoring Mechanism
were discussed. There was convergence of views on some matters, such as aspects of the role of the
Mechanism and the sources of information for it to conduct its work.  Many Members emphasised
that the structure to be agreed for the mechanism should be simple, streamlined, and not
administratively burdensome.  There was also a general receptivity to the view that the Mechanismshould monitor the implementation and utilisation of special and differential provisions; that WTO
Committees should keep special and differential treatment as a standing or regular item on their
agenda; and that the General Council could consider, probably on an annual basis, and possibly in
special session, the Mechanism's report on the implementation and utilisation of special and
differential treatment provisions.
16. However, there are still some important areas of difference, including on the institutional
structure of the Mechanism and the timing for its co ming into force.  The general view is that it
should be an open-ended body.  Some Members believe that the monitoring of special and differential
treatment should be carried out by the Regular CTD, or by the CTD in dedicated sessions, while other
Members are of the view that a Sub-Committee of the CTD should be established for this purpose.
There are also significant differences of opinion on the timing for coming into force of the
Mechanism.  Some Members consider that the Mechanism should come into force immediately, or inthe very near term.  They see an immediate role for the Mechanism, including possibly in relation to
ongoing work in the Doha process.  A large number of other Members have expressed the view that
the first task is to strengthen special and differential provisions and that this should be done before
defining the modalities of operation of the Mechanism and deciding when it should come into force.
V. TECHNICAL & FINANCIAL ASSISTANCE AND TRAINING
17. The General Council had instructed the Special Session to submit the proposals on criteria for
technical and financial assistance and training, to the CTD in Regular Session, for inclusion of anyTN/CTD/W/25
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agreed elements in future Technical Assistance Plans.  This was to be done without prejudice to
further discussion in this regard in the Special Sessions of the CTD.
18. The Special Session of the CTD has held additional discussions on technical assistance and
capacity building.  The proposal on the criteria for technical and financial assistance and training from
the African Group was submitted to the CTD in Regular Session, and was taken account of in theconsideration and finalisation of the elements of the Technical Assistance Plan for 2003.  This
proposal and suggested elements are also to be considered in future Technical Assistance Plans.
VI. INCORPORATION OF SPECIAL AND DIFFERENTIAL TREATMENT INTO THE
ARCHITECTURE OF WTO RULES
19. Finally, the General Council instructed the Special Session of the CTD to consider how
special and differential treatment may be incor porated into the architecture of WTO rules, in
accordance with Paragraph 12.1(iii) of the Ministerial Decision on Implementation-Related Issues andConcerns.  Only a preliminary discussion has been held on the matter of how special and differential
treatment might be incorporated into the architecture of WTO rules.  It should be noted that some of
the elements put forward, and discussions held, with respect to some of the cross-cutting issues also
appear to have a bearing on this work.  This aspect of the mandate requires further discussion.
VII. THE WAY FORWARD
20. The General Council mandated the CTD in Special Session to "report to the General Council
with clear recommendations for a decision by 31 December 2002".  The Special Session adopted an
intensive work programme in order to  fulfil this mandate.  A total of eight formal and a large number
of informal meetings were convened in this two and a half month period.  A large number of issues
and proposals remain unresolved.  In part this has been because of the large number of Agreement-specific proposals that the Special Session has had to consider.  The cross-cutting issues also led to an
extensive, but inconclusive discussion on some issues relating to special and differential treatment.
21. However, there was a discernible movement on some issues.  [Accordingly, it is
recommended that the General Council approves the recommendations on the Agreement-specific
proposals contained in Annex …...]
OPTION I
22. Members could not agree on whether, or what recommendations to make on further work.
Accordingly, the direction of the General Council is sought.
OPTION II
23. A significant amount of work remains to be done.  It is accordingly recommended that the
General Council note that the Special Session has not been able to fulfil its mandate in accordance
with the instructions given in July 2002 and exte nd the deadline until […… date…...] for the Special
Session to fulfil its mandate.
OPTION III
24. A significant amount of work remains to be done, including through the rationalisation of the
work. It is accordingly recommended that the Special Session of the CTD be instructed to continue,
within the parameters of the mandate contained in paragraph 44 of the Doha Ministerial Declarationand paragraph 12 of the Decision on Implementation-Related Issues and Concerns, the analysis and
examination of the various Agreement-specific proposa ls and issues that have been raised in theTN/CTD/W/25
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written submissions and discussions.  It is instructed that this further work be undertaken in the
Special Session on the basis of an ordering of these proposals for consideration in the following three
categories:
(a) proposals that may be amenable to possible recommendations in the short term; and
proposals for which there appears to be a significant measure of support, but inrespect of which further process-related work involving the assistance of other bodies
is required;
(b) proposals on which substantial  work is required to be carried out in the CTD in
Special Session in the period after January 2003; and
(c) proposals on which the Special Session could benefit from ongoing discussions in
other bodies, since either the issues raised are already under consideration in those
bodies, or because it would be difficult to take a decision in isolation of the ongoingnegotiations in those areas.
It will be for the Special Session of the CTD to decide which Agreement-specific proposals
will fall into which of the above-mentioned categories.  The Special Session will also be kept
informed, through interim and periodic reports, on the progress and outcome of the
consideration of the proposals where the assistance of other WTO bodies has been sought.
25. It is recommended further that the Special Session of the CTD be instructed to continue, at the
same time, within the parameters of the mandate contained in paragraph 44 of the Doha Ministerial
Declaration and paragraph 12 of the Decision on Implementation-Related Issues and Concerns, the
analysis and examination of the various cross-cutting issues and proposals that have been raised in the
written submissions and the discussions.
26. It is recommended that the General Council also instruct the Special Session of the CTD to
continue work on the functions, structure and terms of reference of the Monitoring Mechanism, taking
into account the proposals made by the African Group, and the discussions that have taken place
thereon in Special Sessions of the CTD.  The decision on the timing for coming into force of the
Monitoring Mechanism will be taken by the General Council at the time of the approval of  theSpecial Session's recommendations on the functions, structure and terms of reference of the
Mechanism.
27. It is recommended that the General Council also instruct the Special Session of the CTD to
continue the examination of other proposals on institutional arrangements made by the African and
LDCs Group.
28. It is recommended that the General Council further instruct the Special Session of the CTD to
continue its work on how special and differential treatment may be incorporated into the architectureof WTO rules, in accordance with Paragraph 12.1( iii) of the Ministerial Decision on Implementation-
Related Issues and Concerns.
29. The Special Session will report to the General Council with clear recommendations for a
decision by […...date ..…].
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ANNEX I
SUBMISSIONS RECEIVED IN THE SPECIAL SESSION OF
THE COMMITTEE ON TRADE AND DEVELOPMENT
AUGUST – DECEMBER 2002
• TN/CTD/W/13 and TN/CTD/W/20 from the European Communities
• TN/CTD/W/14 from Switzerland
• TN/CTD/W/15 from Paraguay
• TN/CTD/W/16 from Hungary
• TN/CTD/W/17, TN/CTD/W/21 (to be issued) and TN/CTD/W/22 (to be issued) from Canada
• TN/CTD/W/18 and TN/CTD/W/23 (to be issued) from the African Group
• TN/CTD/W/19 from the United States
• TN/CTD/W/24 (to be issued) from EgyptTN/CTD/W/25
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ANNEX II
AGREEMENTS DISCUSSED DURING "BACK-TO-BACK" MEETINGS
17 October - 20 November 2002
17 OCTOBER 2002
• Agreement on Technical Barriers to Trade
21 & 23 OCTOBER 2002
• Agreement on Implementation of Article VI of the GATT 1994 (Anti-Dumping)
• Agreement on Subsidies & Countervailing Measures
• General Agreement on Trade in Services
• Agreement on Safeguards
6 NOVEMBER 2002
• Agreement on Sanitary and Phytosanitary Measures
12 NOVEMBER 2002
• Understanding on Rules and Procedures Governing the Settlement of Disputes
20 NOVEMBER 2002
• Agreement on AgricultureTN/CTD/W/25
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[ANNEX III
AGREEMENT-SPECIFIC PROPOSALS ON WHICH RECOMMENDATIONS FOR CLEAR
DECISION COULD BE MADE BY DECEMBER 2002
…………………………
…………………………
………..…………………..]
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