WORLD TRADE
ORGANIZATIONTN/CTD/W/13
1 August 2002
(02-4259)
Committee on Trade and Development
Special SessionOriginal:  English
SUBMISSION FOR THE COMMITTEE ON TRADE AND DEVELOPMENT -
SPECIAL SESSION ON SPECIAL AND DIFFERENTIAL TREATMENT
Communication from the European Communities
The following communication, dated 26 July 2002, has been received from the European
Communities
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I. THE DOHA MANDATE
1. The EC welcomes the review of WTO special and differential (S&D) treatment as mandated
by paragraph 441 of the Doha Ministerial Declaration and paragraph 122 of the Decision on
Implementation-Related Issues and Concerns.
2. The Doha Decision on Implementation-Related Issues and Concerns outlines three pillars of
work towards the objective of strengthening S&D treatment provisions and making them more
                                                     
1 We reaffirm that provisions for special and differential treatment are an integral part of the WTO
Agreements.  We note the concerns expressed regarding their operation in addressing specific constraints facedby developing countries, particularly least-developed countries.  In that connection, we also note that some
Members have proposed a Framework Agreement on Special and Differential Treatment (WT/GC/W/442).  We
therefore agree that all special and differential treatment provisions shall be reviewed with a view tostrengthening them and making them more precise, effective and operational.  In this connection, we endorse theWork Programme on Special and Differential Treatment set out in the Decision on Implementation-RelatedIssues and Concerns.
2 Cross-cutting Issues:
12.1 The Committee on Trade and Development (CTD) is instructed:
i) to identify those special and differe ntial treatment provisions that are already mandatory in nature and those
that are non-binding in  character, to consider the legal and prac tical implications fo r developed and developing
Members of converting special and diffe rential treatment measur es into mandatory provisions, to identify those
that Members consider should be made mandatory, and to report to the General Council with clearrecommendations for a decision by July 2002;(ii)  to examine additional ways in which special and differential treatment provisions can be made moreeffective, to consider ways, including improved inform ation flows, in which developing countries, in particular
the least-developed countries, may be assisted 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 2 002; and
(iii) to consider, in the context of the Work Programme adopted at the Fourth Session of the MinisterialConference, special and differential treatment may be incorporated in to the architecture of WTO rules.
The work of the Committee on Trade and Development in this regard shall take fully into consideration
previous work undertaken as noted in WT/COMTD/W/77/Rev.1.  It will also be without prejudice to work inrespect of implementation of WTO Agreements in the General Council and in other Councils and Committees.
12.2 Reaffirms that preferences granted to devel oping countries pursuant to the Decision of the
Contracting Parties of 28 November 1979 ("Enabling Clause") should be generalised, non-reciprocal and non-discriminatory.TN/CTD/W/13
Page 2
precise, effective and operational:  (i) identify those S&D treatment provisions that are already
mandatory in nature and those that are non-binding in character and identify those provisions that
Members consider should be made mandatory"; (ii) consider ways in which S&D treatment
provisions can be made more effective, including especially ways in which developing countries, in
particular the least-developed countries, may be assisted to make use of S&D treatment provisions;(iii) consider how S&D treatment may be incorporated into the architecture of WTO rules.
II. THE THREE PILLARS OF THE WORK PROGRAMME
A. M
ANDATORY /NON-MANDATORY S&D TREATMENT
3. The identification of provisions that Members consider should be made mandatory must be
seen against the objective of strengthening S&D treatment provisions and making them more precise,
effective and operational; as such it is a means to reach this objective and not an end in itself.  In some
cases, making provisions mandatory will not be instrumental in meeting the overall objective.Similarly, the EC wishes to recall that there are other ways to reach that same objective and suggests
that Members broaden their attention to include the instruments that prove most appropriate in
relation to the overall objective.  This is not meant to exclude the option of making any given S&D
treatment provisions mandatory, as mandated by paragraph 44 of the Doha Ministerial Declaration
and paragraph 12 of the Doha Ministerial Decision on Implementation-Related Issues and Concerns,but to avoid confusing the means with the end.
B. A
SSISTING DEVELOPING COUNTRIES IN MAKING BEST USE OF S &D TREATMENT PROVISIONS
AND S &D TREATMENT IN THE ARCHITECTURE OF WTO RULES
4. The EC recalls the mandate to look at all ways to assist developing countries in making best
use of S&D treatment provisions, including by information flows and technical assistance.  The inter-relation between different S&D treatment instruments and provisions is relevant to this.  In particular,
making better use of S&D treatment requires better synergy and co-ordination between different S&D
treatment instruments, e.g. how to make better us e of transition periods to prepare implementation by
providing targeted technical assistance and capacity building to countries that need such assistance.
Transition periods may in this situation be seen as a function of the rules in question, the level ofdevelopment of the implementing country and the capacity building efforts made and provided.
5. The EC therefore suggests that, in pursuing its work on cross-cutting issues, the CTD Special
Session address as a priority the issue of how to ensure synergy and co-ordination of S&D treatment
provisions as a central instrument in making S&D treatment provisions more effective and in assisting
developing countries in making use of S&D treatment provisions.  This should look at both existing
and new S&D treatment provisions, and could touch upon the S&D treatment instruments, their
structures and administration, as well as the possibility for a more differentiated application of S&Dtreatment to take account of the different constraints that countries at different levels of development
face in relation to the implementation and use of specific WTO rules, and in light of the overall
development objectives of the Doha Work Programme.
6. Moreover, the inter-relation between different S&D treatment provisions and instruments is
linked to the issue of the incorporation of S&D trea tment in the overall WTO architecture, i.e. their
place and function in WTO Agreements, current or future, and should therefore be considered
together with these other questions.  Accordingly, the first element of the work programme on S&D
treatment, relating to mandatory/non-mandatory nature of provisions, only makes sense if seen as part
of a comprehensive agenda to achieve effectiveness of S&D treatment provisions, as underlined by
the Least-Developed Countries in their communication (TN/CTD/W/4).TN/CTD/W/13
Page 3
III. THE RELATION BETWEEN THE S&D TREATMENT WORK PROGRAMME AND
OTHER ELEMENTS OF THE DOHA DEVELOPMENT AGENDA WORK
PROGRAMME
7. The EC recalls the link between the work programme on S&D treatment and the overall WTO
Doha Work Programme, as stated in paragraph 50 of  the Doha Ministerial Declaration.  In particular,
the EC notes that the work of the CTD in Special Session will be without prejudice to work in respect
of implementation of WTO Agreements in the General Council and in other Councils and
Committees.  Similarly, the EC notes that questions that have been dealt with in substance by the
Decision on Implementation-Related Issues and Concerns, would not merit reopening by the CTD
Special Session.  S&D questions now being addressed in the negotiations (e.g. on Rules) also would
not need to be separately addressed in the CTD although the CTD should be aware of those
discussions so that coherence of approach can be maintained in accordance with paragraph 51 of theDoha Ministerial Declaration.
8. As regards market access, the EC recalls that the negotiation mandates under the Doha
Ministerial Declaration fully integrate the need for S&D treatment, thus reflecting the principles of
Part IV of GATT 1994.  It should not therefore be necessary within the present S&D treatment
exercise to address the substance of those market access negotiations, but rather to use it to ensure thatthe S&D treatment aims set out in the different market access mandates are pursued in the manner
intended.
IV. MEMBERS’ SUGGESTIONS ON SPECIFIC PROVISIONS
9. The EC welcomes the submission of specific recommendations by Members (TN/CTD/W/1
to 4) and the recommendation to continue the analysis and examination of these proposals in theSpecial Session of the CTD.  The EC will consider each specific suggestion and provision with an
open spirit, on its merits, and in line with the mandate for this exercise.  The EC will address those
specific suggestions separately in the pursuit of the work of the Special Session.  The EC suggests that
the primary aim of the Special Session in doing so must be to ascertain whether the proposal, if
implemented, will aid the integration of developing countries into the multilateral trading system.  Atthe same time, account must be taken of the feasibility of each proposal in legal and practical terms,
of which Members or categories of Members should benefit from any strengthened provision, and of
whether or not within the Doha Development Agenda Work Programme the issue is already being
addressed.
V. ISSUES FOR FURTHER CONSIDERATION BY THE CTD SPECIAL SESSION
A. A
NALYSIS OF THE OVERALL OBJECTIVES OF S &D TREATMENT IN WTO RULES
10. As a first step, the EC suggests that the CTD analyse the overall objectives of S&D treatment.
Such analysis should build on the useful work carried out by the WTO Secretariat in
WT/COMTD/W/77/Rev.1 and include both immedi ate and longer-term perspectives of S&D
treatment provisions in existing and future agreements.  Work should also consider the expectations of
developing countries with respect to S&D treatmen t supporting their integration into the multilateral
trading system:  how can S&D treatment lead to integration and not exclusion?  In this context, theEC recalls the principle of common but differentiated responsibility, and the need for all Members to
participate in and contribute to the multilateral trading system, whether it be by demonstrating
political will in the assumption of commitments, by providing and implementing technical assistance,
or further market opening, or by carrying out appropriate domestic policies, in order to maximise the
benefits for all Members.
11. A clearer definition and understanding of the overall objectives of S&D treatment can help
assess the effectiveness of alternative S&D treatment measures and identify the most effectiveTN/CTD/W/13
Page 4
instruments to meet those objectives, and focus attention on areas and countries, where these
instruments are most needed.  In this context, attention should be given to the current utilisation by
developing countries.  This broader analysis of S&D treatment objectives can help point to means of
fundamentally improving the present approach, as i ndicated by the African Group in their submission.
The exercise would also be useful in identifying cases where provisions have been implemented, butwhere the expectations in terms of result have not been met because of other circumstances.  In
particular, and as the African Group points out in their communication, the development needs of
developing and least-developed countries require special domestic policies, measures and laws as well
as assistance.  The EC believes that recommendations flowing from this broader exercise should go
beyond the "provision by provision" approach, which has been pursued so far, thus addressing the
broader concept, objective and mechanism of S&D treatment in WTO agreements.
B. I
NTERACTION OF S &D TREATMENT INSTRUMENTS AND THEIR INTEGRATION IN WTO
AGREEMENTS
12. A second element, which is relevant both for the ability of developing countries to benefit
from S&D treatment and for incorporating S&D treatm ent in the WTO architecture, is the question of
how different SDT instruments interact and how they are integrated into specific agreements.  To take
an important practical example:  technical assistance is a central S&D treatment instrument, because itis one of the means to assist countries to meet commitments (as well as to benefit from opportunities
offered in other markets).  Technical assistance should, however, be designed and implemented in
conjunction with decisions on the application of transition periods for the assumption of
commitments, which in turn depends on the type of commitment in question and the objective
situation and needs of the country in question.
13. WTO Members are committed to improving the quantity, quality and co-ordination of trade-
related technical assistance and capacity building.  The EC suggests that these efforts be seen as an
integral part of the review of S&D treatment in the WTO.
C. T
AKING ACCOUNT OF THE NEEDS , INTERESTS AND SPECIFIC CIRCUMSTANCES OF COUNTRIES
14. It has often been stressed that S&D treatment should not rely on arbitrary or blanket
provisions, but be designed to reflect the needs of countries at different levels of development.  We
agree.  The exercise should therefore consider how best to take account of such differentiated needs of
developing countries in relation to both market access and WTO rule making.  Understanding the
needs and interests of countries in view of their specific circumstances will allow the trading system
to better address those needs in relation to specific agreements.  In particular, the needs, interests and
specific circumstances of least-developed countries tend to be very different from those of most other
developing countries.  The EC therefore has doubts about the approach taken in some of thesubmissions made on SDT which present proposals across the board – for example sweeping and
potentially permanent exemptions for all developing countries - without taking account of the
objectively different needs of countries at different developmental levels.
D. T
AKING ACCOUNT OF THE DIFFERENT NATURE OF WTO COMMITMENTS
15. The various WTO agreements, existing and future, are different in nature and imply different
levels of capacity to implement.  Whereas certain commitments may imply significant resources and
infrastructure, others may be implemented and applied with relative ease.  Such differences should be
taken in account when determining appropriate S&D treatment instruments for countries whose
capacities differ.TN/CTD/W/13
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E. RELATION BETWEEN WTO S &D TREATMENT AND OTHER SUPPORT MEASURES
16. A fifth and final element for consideration could be the relation between WTO S&D
treatment provisions and measures that are taken by other organisations or donors to support the
development of developing countries – notably those measures that assist their integration in the
multilateral trading system and the global economy.  In particular, the role of trade-related assistanceand capacity building and the complementarity of WTO efforts and those by other donors need to be
addressed in order to maximise efficiencies of scale, and strengthen complementarity.
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