RESTRICTED
WORLD TRADE WT/COMTD/W/35
9February 1998
ORGANIZATION(98-0457)
Committee onTrade andDevelopment
IMPLEMENTATION OFWTO PROVISIONS
INFAVOUR OFDEVELOPING COUNTRY MEMBERS
Note bytheSecretariat
1. ThisNote hasbeenprepared bytheSecretariat inresponse torequests from anumber of
delegations atthemeeting oftheCommittee on17November 1997thatdocument WT/COMTD/W/33
beupdated andsupplemented soastoprovide comprehensive information onactions taken pursuant
toWTO provisions infavour ofdeveloping country Members.
2. Inthecaseofanumber ofthese provisions, theSecretariat hasnotfound itpossible toinsert
meaningful information ontheimplementation oftheprovisions: thatisthecasemost particularly
forprovisions ofapreambular nature, andforprovisions thatcallonMembers autonomously totake
account ofthetrade interests ofdeveloping country Members inthecourse ofimplementing the
WTO Agreements.
3. TheWTOSecretariatisundertakingextensivetechnicalcooperationactivitiestoassistdeveloping
country Members inimplementing theWTO Agreements. Insome instances thisisinresponse to
specific WTO provisions, butinothers itgoeswellbeyond whatiscalled forinthose provisions, both
interms ofSecretariat contacts withdelegations andcapital-based officials andinterms oftechnical
assistance missions. Notallofthisisreflected fullyinthefollowing tables.WT/COMTD/W/35
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I.
1.AGREEMENT ESTABLISHING THE WORLD TRADE ORGANIZATION
Preamble:
Recognizing further thatthere isneedfor
positive efforts designed toensure that
developing countries, andespecially theleast
developed among them, secure ashare inthe
growth ininternational trade commensurate
withtheneeds oftheireconomic development.
Structure oftheWTO: Article IV:7
TheMinisterial Conference shallestablish a
Committee onTrade andDevelopment, which
shallcarry outthefunctions assigned bythis
Agreement andbytheMultilateral Trade
Agreements, andanyadditional functions
assigned toitbytheGeneral Council, and
mayestablish suchadditional Committees with
suchfunctions asitmaydeem appropriate.
Aspartofitsfunctions, theCommittee on
Trade andDevelopment shallperiodically
review thespecial provisions inthe
Multilateral Trade Agreements infavour of
theleast-developed country Members and
report totheGeneral Council forappropriate
action. Membership inthisCommittee shall
beopentorepresentatives ofallMembers.Atitsmeeting on31January 1995 theGeneral
Council established theWTO Committee on
Trade andDevelopment.
Atitsmeeting on5July1995, theCommittee
onTrade andDevelopment established the
WTO Sub-Committee onLeast-Developed
Countries.
Original Membership: Article XI:2
Theleast-developed countries recognized as
suchbytheUnited Nations willonlybe
required toundertake commitments and
concessions totheextent consistent withtheir
individual development, financial andtrade
needs ortheiradministrative andinstitutional
capabilities.Forinformation onoriginal membership, see
section 7.1belowWT/COMTD/W/35
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II.
2.MULTILATERAL AGREEMENT ONTRADE INGOODS
2.1Agreement onAgriculture
Preamble
Having agreed thatinimplementing their
commitments onmarket access, developed
country Members would takefullyinto
account theparticular needs andconditions of
developing country Members byproviding for
agreater improvement ofopportunities and
terms ofaccess foragricultural products of
particular interest tothese Members, including
thefullest liberalization oftrade intropical
agricultural products asagreed attheMid-
Term Review, andforproducts ofparticular
importance tothediversification ofproduction
from thegrowing ofillicit narcotic crops;
Commitments under thereform programme
should bemade inanequitable wayamong all
Members, having regard tonon-trade
concerns, including foodsecurity andtheneed
toprotect theenvironment, having regard to
theagreement thatspecial anddifferential
treatment fordeveloping countries isan
integral element ofthenegotiations, and
taking intoaccount thepossible negative
effects oftheimplementation ofthereform
programme onleast-developed andnetfood-
importing developing countries.Schedules ofdeveloped country Members
show commitments ofgreater-than-average
reductions intariffs onproducts ofinterest to
developing countries (e.g.average reduction
intropical agricultural products tariffs of
43percent) andoften theiraccelerated
implementation.
Forimplementation oftheDecision on
Measures Concerning thePossible Negative
Effects oftheReform Programme onLeast-
Developed andNetFood-Importing
Developing Countries seeSection 7.4below.
Domestic Support Commitments: Article 6:2
Inaccordance withtheMid-Term Review
Agreement thatgovernment measures of
assistance, whether direct orindirect, to
encourage agricultural andrural development
areanintegral partofthedevelopment
programmes ofdeveloping countries,
investment subsidies which aregenerally
available toagriculture indeveloping country
Members andagricultural input subsidies
generally available tolow-income orresource-
poorproducers indeveloping country
Members shallbeexempt from domesticDeveloping countries tookaccount ofthe
provision intheestablishment oftheir
Schedules. Ofthe42domestic support
notifications received from developing
countries relating tothe1995 and1996
implementation years, 29notifications show
recourse totheprovision.WT/COMTD/W/35
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support reduction commitments thatwould
otherwise beapplicable tosuchmeasures, as
shalldomestic support toproducers in
developing country Members toencourage
diversification from growing illicit narcotic
crops. Domestic support meeting thecriteria
ofthisparagraph shallnotberequired tobe
included inaMember 'scalculation ofits
Current Total AMS.
Domestic Support Commitments:
Article 6:4(b)
Fordeveloping country Members, thede
minimis percentage under thisparagraph shall
be10percent.1Developing countries tookaccount ofthe
provision intheestablishment oftheir
Schedules. Ofthe42domestic support
notifications received from developing
countries relating tothe1995 and1996
implementation years, 12notifications show
recourse totheprovision.
Export Subsidy Commitments:
Article 9:2(b) (iv)
TheMember 'sbudgetary outlays forexport
subsidies andthequantities benefiting from
suchsubsidies, attheconclusion ofthe
implementation period, arenogreater than
64percentand79percentofthe1986-1990
baseperiod levels, respectively. For
developing country Members these
percentages shallbe76and86percent,
respectively.Developing countries tookaccount ofthe
provision intheestablishment oftheir
Schedules. All11developing country
Members which haveexport subsidy reduction
commitments usedtheflexibility toapply a
lower rateofcut.
Export Subsidy Commitments: Article 9:4
During theimplementation period, developing
country Members shallnotberequired to
undertake commitments inrespect ofthe
export subsidies listed below, provided that
these arenotapplied inamanner thatwould
circumvent reduction commitments.Developing countries tookaccount ofthe
provision intheestablishment oftheir
Schedules. Ofthe57export subsidy
notifications received from developing
countries relating tothe1995 and1996
implementation years, 8notifications show
recourse totheprovision.
1Therequirement forother Member 'sis5percentasoutlined inArticle 6.4(a).WT/COMTD/W/35
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-subsidies toreduce thecosts ofmarketing
exports ofagricultural products, including
handling, upgrading andother processing
costs, andthecosts ofinternational transport
andfreight; and
-providing internal transport charges on
export shipments terms more favourable than
those fordomestic shipment.
Disciplines onExport Prohibition and
Restriction: Article 12.2
Theprovisions ofthisArticle2shallnotapply
toanydeveloping country Member, unless the
measure istaken byadeveloping country
Member which isanet-food exporter ofthe
specific foodstuff concerned.Nodeveloping country hasnotified the
introduction ofsuchameasure.
Special andDifferential Treatment: Article 15
Inkeeping withtherecognition that
differential andmore favourable treatment for
developing country Members isanintegral
partofthenegotiation, special anddifferential
treatment inrespect ofcommitments shallbe
provided assetoutintherelevant provisions
ofthisAgreement andembodied inthe
Schedules ofconcessions andcommitments.
(Article 15:1)
Developing country Members shallhavethe
flexibility toimplement reduction
commitments overaperiod ofupto10years.
Least-developed country Members shallnotbe
required toundertake reduction commitments.
(Article 15:2)TheSchedules ofdeveloping countries and
least-developed countries reflect theflexibility
onceiling bindings, longer implementation
period andlower reduction commitments in
tariffs, domestic support andexport subsidies.
Moreover, under thenotification requirements
adopted bytheCommittee onAgriculture
(G/AG/2), least-developed countries areto
make notification ondomestic support only
every twoyears; developing countries areto
notify annually buttheCommittee on
Agriculture may, upon request, setaside parts
onthenotification requirements. There has
beennosuchrequest.
Theprovision wasusedbyallleast-developed
countries intheestablishment ofSchedules.
2Asoutlined inArticle 12:1.WT/COMTD/W/35
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Least-Developed andNetFood-Importing
Developing Countries :Article 16
Developed country Members shalltakesuch
action asisprovided forwithin theframework
oftheDecision onMeasures Concerning the
Possible Negative Effects oftheReform
Programme onLeast-Developed andNet
Food-Importing Developing Countries.
(Article 16:1)
TheCommittee onAgriculture shallmonitor,
asappropriate, thefollow-up tothisDecision.
(Article 16:2)SeeSection 7.4below.
Seeintroductory comment toSection 7.4
below.
Continuation oftheReform Process:
Article 20(c)
Negotiations forcontinuing theprocess willbe
initiated oneyearbefore theendofthe
implementation period, taking intoaccount:
non-trade concerns, special anddifferential
treatment todeveloping country Members, and
theobjective toestablish afairandmarket-
oriented agricultural trading system, andthe
other objectives andconcerns mentioned inthe
preamble tothisAgreement.Following theSingapore Ministerial
Conference (SMC), aprocess ofanalysis and
information exchange hasbeenestablished as
provided forinparagraph 12ofG/L/131 and
asagreed byMinisters.3Theprocess isbeing
conducted intheform ofopen-ended informal
meetings oftheCommittee onAgriculture,
usually scheduled back-to-back withthe
formal meetings soastominimize travel time
andcosts forcapital-based representatives. It
hasinvolved alldeveloping countries and
many haveparticipated actively indiscussions.
InSeptember 1997, three developing countries
(jointly) haveintroduced aninformal paper
intotheprocess providing fordetailed
discussions onissues ofinterest todeveloping
countries, andinDecember 1997 another
developing country submitted apaper onthe
same issue.
3WT/MIN(96)/DEC, paragraph 19.WT/COMTD/W/35
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Public stockholding forfoodsecurity
purposes: Annex II,para3footnote 5
Forthepurposes ofparagraph 3ofAnnex II,
governmental stockholding programmes for
foodsecurity purposes indeveloping countries
whose operation istransparent andconducted
inaccordance withofficially published
objective criteria orguidelines shallbe
considered tobeinconformity withthe
provisions ofthisparagraph, including
programmes under which stocks offoodstuffs
forfoodsecurity purposes areacquired and
released atadministered prices, provided that
thedifference between theacquisition price
andtheexternal reference price isaccounted
forintheAMS.Developing countries tookaccount ofthe
provision intheestablishment ofthe
Schedules. Eight notifications ofdomestic
support measures reflect theuseofthe
provision.
Domestic foodaid:Annex II,para4,
footnote 5&6
Forthepurposes ofparagraphs 3and4of
Annex II,theprovision offoodstuffs at
subsidized prices withtheobjective ofmeeting
foodrequirement ofurban andrural poorin
developing countries onaregular basis at
reasonable prices shallbeconsidered tobein
conformity withtheprovisions ofthis
paragraph.Developing countries tookaccount ofthe
provision intheestablishment ofthe
Schedules. Sixnotifications ofdomestic
support measures reflect theuseofthe
provision.
Annex 5,Section B
Theprovisions ofArticle 4:2shallalsonot
apply witheffect from theentry intoforce of
theWTO Agreement toaprimary agricultural
product thatisthepredominant staple inthe
traditional dietofadeveloping country
Member andinrespect ofwhich thefollowing
conditions, inaddition tothose specified in
paragraph 1(a)through 1(d), astheyapply to
theproducts concerned, arecomplied with:
(a)minimum access opportunities inrespect of
theproducts concerned, asspecified in
Section I-BofPartIoftheSchedule ofthe
developing country Member concerned,
correspond to1percentofbaseperiod
domestic consumption oftheproducts
concerned from thebeginning ofthefirstyearTwoSchedules from developing countries
reflect recourse tothisprovision.WT/COMTD/W/35
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oftheimplementation period andare
increased inequal annual instalments to
2percentofcorresponding domestic
consumption inthebaseperiod atthe
beginning ofthefifthyearofthe
implementation period. From thebeginning
ofthesixth yearoftheimplementation period,
minimum access opportunities inrespect of
theproducts concerned correspond to
2percentofcorresponding domestic
consumption inthebaseperiod andare
increased inequal annual instalments to
4percentofcorresponding domestic
consumption inthebaseperiod untilthe
beginning ofthe10thyear. Thereafter, the
levelofminimum access opportunities
resulting from thisformula inthe10thyear
shallbemaintained intheSchedule ofthe
developing country Member concerned;
(b)appropriate market access opportunities
havebeenprovided forinother products
under thisAgreement.
2.2 Agreement onSanitary andPhytosanitary Measures (SPS)
Preamble
Recognizing thatdeveloping country Members
mayencounter special difficulties in
complying withthesanitary orphytosanitary
measures ofimporting Members, andasa
consequence inaccess tomarkets, andalsoin
theformulation andapplication ofsanitary or
phytosanitary measures intheirown
territories, anddesiring toassist them intheir
endeavours inthisregard.
Equivalence: Article 4.1
Members shallaccept thesanitary or
phytosanitary measures ofother Members as
equivalent, evenifthese measures differ from
theirownorfrom those usedbyother
Members trading inthesame product, ifthe
exporting Member objectively demonstrates to
theimporting Member thatitsmeasures
achieve theimporting Member 'sappropriate
levelofsanitary orphytosanitary protection.Several developing countries havereported to
theSPSCommittee thattheyhaveentered into
consultations withother Members and
achieved bilateral recognition ofthe
equivalence ofspecific SPSmeasures.
Explanation oftheequivalency provision is
featured inthetechnical assistance provided
bytheSecretariat.WT/COMTD/W/35
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Forthispurpose, reasonable access shallbe
given, upon request, totheimporting Member
forinspection, testing andother relevant
procedures.
Technical Assistance: Article 9
Members agree tofacilitate theprovision of
technical assistance toother Members,
especially developing country Members, either
bilaterally orthrough theappropriate
international organizations. Such assistance
maybe,interalia,intheareas ofprocessing
technologies, research andinfrastructure,
including intheestablishment ofnational
regulatory bodies, andmaytaketheform of
advice, credits, donations andgrants,including
forthepurpose ofseeking technical expertise,
training andequipment toallow suchcountries
toadjust to,andcomply with, sanitary or
phytosanitary measures necessary toachieve
theappropriate levelofsanitary or
phytosanitary protection intheirexport
markets. (Article 9.1)Ateachmeeting oftheSPSCommittee,
Members areinvited toidentify specific needs
fortechnical assistance, orassistance which
theycanprovide. TheSecretariat reports on
itsrecent andscheduled technical assistance,
andtheobserver international organizations
provide detailed information oftheir
programmes. TheFAO hasnumerous
programmes focusing onmeeting multilateral
trade requirements, inparticular regarding
foodsafety andCodex standards.
Considerable technical assistance hasbeen
provided bytheSecretariat, bothatandfrom
headquarters andintheform ofmissions to
capitals. TheSecretariat hasorganized
various regional seminars incooperation with
other international organizations. The
Secretariat hasalsocontributed substantially to
anumber ofseminars organized byMembers
orbyother international organizations.
Where substantial investments arerequired in
order foranexporting developing country
Member tofulfil thesanitary orphytosanitary
requirements ofanimporting Member, the
latter shallconsider providing suchtechnical
assistance aswillpermit thedeveloping
country Member tomaintain andexpand its
market access opportunities fortheproduct
involved. (Article 9.2)Intheareas ofanimal andplant health, the
relevant standard-setting organizations have
alsoengaged insuchtechnical assistance
activities, though onamore limited scale.
Special &Differential Treatment: Article 10
Inthepreparation andapplication ofsanitary
orphytosanitary measures, Members shall
takeaccount ofthespecial needs of
developing country Members, andin
particular oftheleast-developed country
Members. (Article 10:1)Thenotification procedures forproposed SPS
measures, asestablished bytheSPS
Committee (G/SPS/7), allow developing
country Members toidentify where theymay
havepotential problems meeting new
requirements inadvance ofthese adversely
affecting theirexports, andprovide them the
opportunity torequest aphased introduction
where thisispossible.WT/COMTD/W/35
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Where theappropriate levelofsanitary or
phytosanitary protection allows scope forthe
phased introduction ofnewsanitary or
phytosanitary measures, longer time-frames
forcompliance should beaccorded on
products ofinterest todeveloping country
Members soastomaintain opportunities for
theirexports. (Article 10:2)
With aviewtoensuring thatdeveloping
country Members areabletocomply withthe
provisions ofthisAgreement, theCommittee
isenabled togrant tosuchcountries, upon
request, specified, time-limited exceptions in
whole orinpartfrom obligations under this
Agreement, taking intoaccount theirfinancial,
trade anddevelopment needs (Article 10:3).Nodeveloping country hasasyetrequested
anyexceptions from theobligations ofthe
Agreement.
Members should encourage andfacilitate the
active participation ofdeveloping country
Members intherelevant international
organizations. (Article 10:4)Efforts havebeenmade toschedule SPS
Committee meetings back-to-back with
meetings oftherelevant international
organizations, tofacilitate theparticipation of
developing countries inboth. TheFAO (both
Codex andIPPC) andtheOIEregularly hold
meetings indeveloping countries.
Furthermore, FAO hassponsored the
participation ofdeveloping countries inspecial
workshops which areheldinconjunction with
Codex meetings.
Final Provisions: Article 14
Theleast-developed country Members may
delay application oftheprovisions ofthis
Agreement foraperiod offiveyears
following thedateofentry intoforce ofthe
WTO Agreement withrespect totheirsanitary
orphytosanitary measures affecting
importation orimported products. Other
developing country Members maydelay
application oftheprovisions ofthis
Agreement, other thanArticle 5:8and
Article 7,fortwoyears following thedateof
entry intoforce oftheWTO Agreement with
respect totheirexisting sanitary or
phytosanitary measures affecting importation
orimported products, where suchapplication
isprevented byalackoftechnical expertise,
technical infrastructure orresources.Least-developed countries havetaken account
ofthisprovision. Developing countries had,
during thefirsttwoyears, onlytransparency
obligations pursuant toArticles 5.8and7of
theAgreement. TheSecretariat hasprovided
detailed information regarding the
transparency provisions aspartofitstechnical
assistance, including ontheproper completion
ofnotification formats. Developing countries
could haveasked fordelays withrespect to
anyobligation beyond thetwo-year period
under Article 10.3above; however, although
thetransition period fordeveloping countries
elapsed attheendof1996, nospecific
requests forsuchtreatment havebeenmade.WT/COMTD/W/35
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Annex Bparagraph 2:
Except inurgent circumstances, Members
shallallow areasonable interval between the
publication ofasanitary orphytosanitary
regulation anditsentry intoforce inorder to
allow timeforproducers inexporting
Members, andparticularly indeveloping
country Members, toadapt theirproducts and
methods ofproduction totherequirements of
theimporting Member.Thenotification procedures, asestablished by
theSPSCommittee (G/SPS/7), recommend a
lead-time ofatleast60daysforcomments to
bemade; developing country Members can
request alonger period before implementation
toallow them toadapt totherequirements.
Annex Bparagraph 9:
TheSecretariat shallpromptly circulate copies
ofthenotification toallMembers and
interested international organizations anddraw
theattention ofdeveloping country Members
toanynotifications relating toproducts of
particular interest tothem.Notifications areimmediately circulated toall
Members inthelanguage received, toallow
follow-up actions while awaiting translation.
TheSecretariat hasoffered tosend, upon
request, notifications directly tocapitals, to
facilitate theirconsideration bytherelevant
authorities.
2.3Agreement onTextiles andClothing
Preamble :
Recalling further thatitwasagreed that
special treatment should beaccorded tothe
least-developed country Members;
Article 1.2andfootnote 1:
Members agree tousetheprovisions of
Article 2:18andArticle 6:6(b)insuchaway
astopermit meaningful increases inaccess
possibilities forsmall suppliers andthe
development ofcommercially significant
trading opportunities fornewentrants inthe
fieldoftextiles andclothing trade.
footnote 1:Totheextent possible, exports
from aleast-developed country Member may
alsobenefit from thisprovision.Please refertothecomments under
Articles 2.18, 6.6(a) and6.6(b) below.
Article 2.18:
Asregards those Members whose exports are
subject torestrictions onthedaybefore the
entry intoforce oftheWTO Agreement and
whose restrictions represent 1.2percentor
lessofthetotalvolume oftherestrictions
applied byanimporting Member asof
31December 1991 andnotified under this
Article, meaningful improvement inaccess forUnder Article 2.18, theannual quota growth
ratesinthequotas carried overfrom the
former MFA aretobeadvanced byonestage
forallexporters falling within thecriteria set
outinthatArticle. According tonotifications
made, forCanada thisprovision currently
applies tothequotas witheight developing
countries andtwoleast-developed countries
(Lesotho andMyanmar).WT/COMTD/W/35
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theirexports shallbeprovided, attheentry
intoforce oftheWTO Agreement andforthe
duration ofthisAgreement, through
advancement byonestage ofthegrowth rates
setoutinArticle 2:13and2:14, orthrough at
leastequivalent changes asmaybemutually
agreed withrespect toadifferent mixofbase
levels, growth andflexibility provisions.
Such improvements shallbenotified tothe
TMB.IntheEC,thisprovision isbeing applied to
itsquotas withtwodeveloping countries, and
intheUStoitsquotas with16developing
countries andoneleast-developed country
(Haiti).
Article 1.4:
Members agree thattheparticular interests of
thecotton-producing exporting Members
should, inconsultation withthem, bereflected
intheimplementation oftheprovisions ofthis
Agreement.Nospecific measure bearing reference tothis
provision hasbeennotified, although some
Members haveprovided notifications with
comments ontheirapproach tothisprovision.
Intheapplication ofthetransitional safeguard
mechanism inArticle 6:
Article 6.6(a):
Least-developed country Members shallbe
accorded treatment significantly more
favourable thanthatprovided totheother
groups ofMembers, preferably inallits
elements but,atleast, onoverall terms.Nosafeguard action involving exports of
least-developed countries hasbeennotified.
Article 6.6(b):
Members whose totalvolume oftextile and
clothing exports issmall incomparison with
thetotalvolume ofexports ofother Members
andwhoaccount foronlyasmall percentage
oftotalimports ofthatproduct intothe
importing Member shallbeaccorded
differential andmore favourable treatment in
thefixing oftheeconomic terms provided in
Article 6:8,6:13and6:14. Forthose
suppliers, dueaccount willbetaken, pursuant
toArticle 1:24and1:3,ofthefuture
possibilities forthedevelopment oftheirtrade
andtheneedtoallow commercial quantities of
imports from them.Noinformation hasbeenprovided in
notifications ofsafeguard actions ontheextent
towhich recourse wasmade tothisprovision
insetting theparameters ofsuchactions.
4Pursuant toArticle 1:2,small suppliers, newentrants andpossibly least-developed countries benefit from
thisprovision.WT/COMTD/W/35
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Article 6.6(c):
With respect towool products from wool-
producing developing country Members whose
economy andtextiles andclothing trade are
dependent onthewool sector, whose total
textile andclothing exports consist almost
exclusively ofwool products, andwhose
volume oftextiles andclothing trade is
comparatively small inthemarkets ofthe
importing Members, special consideration
shallbegiven totheexport needs ofsuch
Members when considering quota levels,
growth ratesandflexibility.Nosafeguard action involving exports ofthis
category ofMember hasbeennotified.
Article 6.6(d):
More favourable treatment shallbeaccorded
tore-imports byaMember oftextile and
clothing products which thatMember has
exported toanother Member forprocessing
andsubsequent reimportation, asdefined by
thelawsandpractices oftheimporting
Member, andsubject tosatisfactory control
andcertification procedures, when these
products areimported from aMember for
which thistypeoftrade represents a
significant proportion ofitstotalexports of
textiles andclothing.TheUShasprovided more favourable
treatment tothese products exported by
6developing country Members.
Annex, paragraph 3(a):
Actions under thesafeguard provisions in
Article 6ofthisAgreement, shallnotapply to
developing country Members 'exports of
handloom fabrics ofthecottage industry, or
hand-made cottage industry products made of
suchhandloom fabrics, ortraditional folklore
handicraft textile andclothing products,
provided thatsuchproducts areproperly
certified under arrangements established
between theMembers concerned. Forsuch
products, theprovisions ofArticle XIXof
GATT 1994, asinterpreted bytheAgreement
onSafeguards, shallbeapplicable.Nosafeguard action involving exports ofthese
categories ofproducts hasbeennotified.WT/COMTD/W/35
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2.4Agreement onTechnical Barriers toTrade
Preamble
Recognizing thatdeveloping countries may
encounter special difficulties inthe
formulation andapplication oftechnical
regulations andstandards andprocedures for
assessment ofconformity withtechnical
regulations andstandards, anddesiring to
assist them intheirendeavours inthisregard.
Preparation, Adoption andApplication of
Technical Regulations: Article 2:12:
Except inthose urgent circumstances referred
toinArticle 2:10, Members shallallow a
reasonable interval between thepublication of
technical regulations andtheirentry intoforce
inorder toallow timeforproducers in
exporting Members, andparticularly in
developing country Members, toadapt their
products ormethods ofproduction tothe
requirements oftheimporting Member.TheCommittee hasrecommended anormal
timelimitof60daysforcomments on
notified technical regulations andprocedures
forassessment ofconformity. Inthecaseof
notifications oftechnical regulations, an
average interval of46dayswasprovided for
comments in1997.
Procedures forAssessment ofConformity:
Article 5.9
Except inthose urgent circumstances referred
toinArticle 5:7,Members shallallow a
reasonable interval between thepublication of
requirements concerning conformity
assessment procedures andtheirentry into
force inorder toallow timeforproducers in
exporting Members, andparticularly in
developing country Members, toadapt their
products ormethods ofproduction tothe
requirements oftheimporting Member.Inthecaseofnotifications ofprocedures for
assessment ofconformity, anaverage interval
of56dayswasprovided in1997.WT/COMTD/W/35
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Information: Article 10.6
TheSecretariat shall, when itreceives
notifications inaccordance withtheprovisions
ofthisAgreement, circulate copies ofthe
notifications toallMembers andinterested
international standardizing andconformity
assessment bodies, anddraw theattention of
developing country Members toany
notifications relating toproducts ofparticular
interest tothem.
Technical Assistance: Article 11
Members shall, ifrequested, advise other
Members, especially thedeveloping country
Members, onthepreparation oftechnical
regulations. (Article 11:1).
Members shall, ifrequested, advise other
Members, especially thedeveloping country
Members, andshallgrant them technical
assistance onmutually agreed terms and
conditions regarding theestablishment of
national standardizing bodies, and
participation intheinternational standardizing
bodies, andshallencourage theirnational
standardizing bodies todolikewise.
(Article 11:2).Under Article 10.6, theSecretariat circulates
toallMembers copies ofnotifications
indicating product coverage.
AttheFirstTriennial Review, in
December 1997, theCommittee agreed that
technical assistance should beprovided to
requesting Members, particularly least
developed country Members, onthe
preparation oftechnical regulations, the
establishment ofnational standardizing bodies,
regulatory bodies, orbodies forthe
assessment ofconformity, themethods by
which technical regulations ofother Members
could bestbemet,theparticipation inthe
international standardizing bodies, andthe
access tosystems forconformity assessment,
withaviewtoincreasing theeffectiveness of
theAgreement.
Members shall, ifrequested, takesuch
reasonable measures asmaybeavailable to
them toarrange fortheregulatory bodies
within theirterritories toadvise other
Members, especially thedeveloping country
Members, andshallgrant them technical
assistance onmutually agreed terms and
conditions regarding:
(i)theestablishment ofregulatory bodies, or
bodies fortheassessment ofconformity
withtechnical regulations; and
(ii)themethods bywhich theirtechnical
regulations canbestbemet.
(Article 11:3)TheEuropean Communities has
communicated toMembers (G/TBT/W/36)
information onitstechnical assistance
programmes. Technical assistance isaregular
itemontheagenda oftheTBTCommittee.WT/COMTD/W/35
Page16
Provision Implementation
Members shall, ifrequested, takesuch
reasonable measures asmaybeavailable to
them toarrange foradvice tobegiven to
other Members, especially thedeveloping
country Members, andshallgrant them
technical assistance onmutually agreed terms
andconditions regarding theestablishment of
bodies fortheassessment ofconformity with
standards adopted within theterritory ofthe
requesting Member. (Article 11:4)
Members shall, ifrequested, advise other
Members, especially thedeveloping country
Members, andshallgrant them technical
assistance onmutually agreed terms and
conditions regarding thesteps thatshould be
taken bytheirproducers iftheywishtohave
access tosystems forconformity assessment
operated bygovernmental ornon-
governmental bodies within theterritory ofthe
Member receiving therequest. (Article 11:5)Inorder toenhance theimplementation of
Article 11,theCommittee hasdecided that:
(a)Members areinvited, onavoluntary basis,
toexchange information regarding the
implementation ofArticle 11,including to
communicate totheCommittee annually any
information concerning theirnational and
regional technical assistance programmes;
and(b)Members thatrequire technical
assistance areinvited toinform theCommittee
ofanydifficulties theyencounter inthe
implementation andoperation ofthe
Agreement, andthekindoftechnical
assistance theymayneed. Other Members are
invited tocontribute tothetechnical assistance
process bysharing theirexperience inthe
implementation andoperation ofthe
Agreement.
Members which aremembers orparticipants
ofinternational orregional systems for
conformity assessment shall, ifrequested,
advise other Members, especially the
developing country Members, andshallgrant
them technical assistance onmutually agreed
terms andconditions regarding the
establishment oftheinstitutions andlegal
framework which would enable them tofulfil
theobligations ofmembership orparticipation
insuchsystems. (Article 11:6)TheCommittee hasagreed toreview therole
ofregional andinternational systems for
conformity assessment ascovered byArticle 9
andhowthese systems could contribute to
solving theproblems ofmultiple testing and
certification/registration fortraders and
industries, including inparticular small and
medium sizeenterprises. Thisexercise will
alsoaddress theextent towhich international
guides andrecommendations contribute tothe
establishment ofthese systems, andthe
possible technical assistance needed for
developing countries todevelop operational
conformity assessment procedures within the
context ofArticles 11.6, 11.7and12.5.WT/COMTD/W/35
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Provision Implementation
Members shall, ifsorequested, encourage
bodies within theirterritories which are
members orparticipants ofinternational or
regional systems forconformity assessment to
advise other Members, especially the
developing country Members, andshould
consider requests fortechnical assistance from
them regarding theestablishment ofthe
institutions which would enable therelevant
bodies within theirterritories tofulfil the
obligations ofmembership orparticipation.
(Article 11:7)
Inproviding advice andtechnical assistance to
other Members interms ofArticle 11:1
to11:7, Members shallgivepriority tothe
needs oftheleast-developed country
Members.
(Article 11:8)
Special &Differential Treatment: Article 12
Members shallprovide differential andmore
favourable treatment todeveloping country
Members, through theprovisions ofthis
Article, aswellasthrough therelevant
provisions ofother Articles ofthisAgreement.
(Article 12.1)
Members shallgiveparticular attention tothe
provisions ofthisAgreement concerning
developing country Members 'rights and
obligations andshalltakeintoaccount the
special development, financial andtrade needs
ofdeveloping country Members inthe
implementation ofthisAgreement, both
nationally andintheoperation ofthis
Agreement 'sinstitutional arrangements.
(Article 12.2)TheCommittee hasagreed that:
(a)Members areinvited, onavoluntary basis,
toexchange information onthe
implementation ofArticle 12,including
information related toArticles 12.2, 12.3,
12.5, 12.6, 12.7and12.9. Members are
invited, onavoluntary basis, toexchange
information onanyspecific problems they
faceinrelation totheoperation ofArticle 12;
and(b)theCommittee willconsider including
thefollowing matters initsfuture programme
ofwork, which could betaken upduring the
nextthree years andreviewed during the
Second Triennial Review oftheAgreement:WT/COMTD/W/35
Page18
Provision Implementation
Members shall, inthepreparation and
application oftechnical regulations, standards
andconformity assessment procedures, take
account ofthespecial development, financial
andtrade needs ofdeveloping country
Members, withaviewtoensuring thatsuch
technical regulations, standards and
conformity assessment procedures donot
create unnecessary obstacles toexports from
developing country Members. (Article 12.3)(i)Theuseofmeasures toengender capacity
building indeveloping country Members,
including theconsideration ofmeasures
relevant totransfer oftechnology tothese
countries, forthepurpose ofpreparation and
adoption oftechnical regulations, standards
andconformity assessment procedures, taking
intoaccount theirspecial development,
financial andtrade needs;
(ii)thepreparation ofastudy ofthe
Secretariat toestablish thestateofknowledge
concerning thetechnical barriers tothemarket
access ofdeveloping country suppliers,
especially small andmedium sized
enterprises (SMEs), asaresult ofstandards,
technical regulations andconformity
assessment procedures;
(iii)inviting representatives ofrelevant
international standardizing bodies and
international systems forconformity
assessment procedures tomake written and
oralpresentations totheCommittee witha
viewtoassessing whether andhowaccount is
taken ofthespecial problems ofdeveloping
countries insuchbodies andsystems. The
Secretariat willcirculate acompendium ofthe
written contributions bytherelevant
organizations; and
(iv)theencouragement oftheorganization of
international meetings relevant tothe
provisions oftheAgreement intheterritories
ofdeveloping country Members togive
greater representative participation bysuch
Members tothedeliberations and
recommendations ofsuchinternational
meetings, andtheelectronic dissemination of
information.WT/COMTD/W/35
Page19
Provision Implementation
Members recognize that,although
international standards, guides or
recommendations mayexist, intheirparticular
technological andsocio-economic conditions,
developing country Members adopt certain
technical regulations, standards orconformity
assessment procedures aimed atpreserving
indigenous technology andproduction methods
andprocesses compatible withtheir
development needs.
Members therefore recognize thatdeveloping
country Members should notbeexpected to
useinternational standards asabasis fortheir
technical regulations orstandards, including
testmethods, which arenotappropriate to
theirdevelopment, financial andtrade needs.
(Article 12.4)TheCommittee hasagreed toinvite Members,
onavoluntary basis, tosubmit specific
examples totheCommittee addressing the
difficulties andproblems theyencounter in
relation tointernational standards, taking into
account Article 12.4.
Members shalltakesuchreasonable measures
asmaybeavailable tothem toensure that
international standardizing bodies and
international systems forconformity
assessment areorganized andoperated ina
waywhich facilitates active andrepresentative
participation ofrelevant bodies inall
Members, taking intoaccount thespecial
problems ofdeveloping country Members.
(Article 12.5)TheCommittee hasagreed toexplore ways
andmeans ofimproving theimplementation of
Article 12.5withaviewtoenhancing
Members 'awareness of,andparticipation in,
thework ofinternational standardizing bodies.
Members shall, inaccordance withthe
provisions ofArticle 11(seeabove), provide
technical assistance todeveloping country
Members toensure thatthepreparation and
application oftechnical regulations, standards
andconformity assessment procedures donot
create unnecessary obstacles totheexpansion
anddiversification ofexports from developing
country Members. Indetermining theterms
andconditions ofthetechnical assistance,
account shallbetaken ofthestage of
development oftherequesting Members and
inparticular oftheleast-developed country
Members. (Article 12.7)WT/COMTD/W/35
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Provision Implementation
Itisrecognized thatdeveloping country
Members mayfacespecial problems,
including institutional andinfrastructural
problems, inthefieldofpreparation and
application oftechnical regulations, standards
andconformity assessment procedures. Itis
further recognized thatthespecial
development andtrade needs ofdeveloping
country Members, aswellastheirstage of
technological development, mayhinder their
ability todischarge fullytheirobligations
under thisAgreement. Members, therefore,
shalltakethisfactfullyintoaccount.
Accordingly, withaviewtoensuring that
developing country Members areableto
comply withthisAgreement, theCommittee
onTechnical Barriers toTrade provided forin
Article 13isenabled togrant, upon request,
specified, time-limited exceptions inwhole or
inpartfrom obligations under thisAgreement.
When considering suchrequests the
Committee shalltakeintoaccount thespecial
problems, inthefieldofpreparation and
application oftechnical regulations, standards
andconformity assessment procedures, and
thespecial development andtrade needs ofthe
developing country Member, aswellasits
stage oftechnological development, which
mayhinder itsability todischarge fullyits
obligations under thisAgreement. The
Committee shall, inparticular, takeinto
account thespecial problems oftheleast-
developed country Members.
(Article 12:8)Norequest fortime-limited exceptions under
Article 12.8hasbeenreceived bythe
Committee from anydeveloping country
Member.
During consultations, developed country
Members shallbearinmind thespecial
difficulties experienced bydeveloping country
Members informulating andimplementing
standards andtechnical regulations and
conformity assessment procedures, andin
theirdesire toassist developing country
Members withtheirefforts inthisdirection,
developed country Members shalltakeaccount
ofthespecial needs oftheformer inregard to
financing, trade anddevelopment.
(Article 12:9)WT/COMTD/W/35
Page21
Provision Implementation
TheCommittee shallexamine periodically the
special anddifferential treatment, aslaiddown
inthisAgreement, granted todeveloping
country Members onnational andinternational
levels. (Article 12:10)TheTBTCommittee conducted thisperiodic
examination atitsmeeting of16October
1996. (Document G/TBT/M/6)
2.5Agreement onTrade Related Investment Measures (TRIMs)
Preamble
Taking intoaccount theparticular trade,
development andfinancial needs ofdeveloping
country Members, particularly those ofthe
least-developed country Members
Developing Country Members: Article 4
Adeveloping country Member shallbefreeto
deviate temporarily from theprovisions of
Article 2totheextent andinsuchamanner
asArticle XVIII ofGATT 1994, the
Understanding ontheBalance-of-Payments
Provisions ofGATT 1994, andthe
Declaration onTrade Measures Taken for
Balance-of-Payments Purposes adopted on
28November 1979 (BISD 26S/205-209)
permit theMember todeviate from the
provisions ofArticles IIIandXIof
GATT 1994.SeeSection 8.2below.
Notification andTransitional Arrangements:
Article 5
Each Member shalleliminate allTRIMs which
arenotified under Article 5.1,within
twoyears ofthedateofentry intoforce ofthe
WTO Agreement inthecaseofadeveloped
country Member, within fiveyears inthecase
ofadeveloping country Member, andwithin
seven years inthecaseofaleast-developed
country Member. (Article 5.2).Notifications under Article 5.1havebeen
submitted by25Members, ofwhom 21are
developing countries, 2transition countries
andonealeast-developed country.WT/COMTD/W/35
Page22
Provision Implementation
Onrequest, theCouncil forTrade inGoods
mayextend thetransition period forthe
elimination ofTRIMs notified under
Article 5.1foradeveloping country Member,
including aleast-developed country Member,
which demonstrates particular difficulties in
implementing theprovisions ofthis
Agreement. Inconsidering sucharequest,
theCouncil forTrade inGoods shalltakeinto
account theindividual development, financial
andtrade needs oftheMember inquestion.
(Article 5.3).Theinitial period oftransition forthe
developing andtheleast-developed countries
hasnotyetlapsed.
2.6Agreement onImplementation ofArticle VI(Anti-Dumping) oftheGATT 1994
Developing Country Members: Article 15
Itisrecognized thatspecial regard must be
given bydeveloped country Members tothe
special situation ofdeveloping country
Members when considering theapplication of
anti-dumping measures under thisAgreement.
Possibilities ofconstructive remedies provided
forbythisAgreement shallbeexplored before
applying anti-dumping duties where they
would affect theessential interests of
developing country Members.OneMember 'santi-dumping legislative
notification reviewed bytheCommittee
reflects thisprovision. Additionally, twenty-
seven Members havenotified theCommittee
thatthefulltextoftheAgreement onAnti-
Dumping Practices hasbeenfullyincorporated
intotheirdomestic legalsystem. Thelackof
aspecific provision indomestic anti-dumping
legislation would inactual practice notprevent
aMember from implementing the
Agreement 'srequirements inthisregard.
Information regarding theimplementation of
thisprovision inMembers 'anti-dumping
practice isnotavailable.
None oftheanti-dumping legislation
notification reviewed bytheCommittee
explicitly reflects thisprovision. However,
twenty-seven Members havenotified the
Committee thatthefulltextoftheAgreement
onAnti-Dumping Practices hasbeen
incorporated intotheirdomestic legalsystems.
Thelackofaspecific provision indocmestic
anti-dumping legislation would inactual
practice notprevent aMember from
implementing theAgreement 'srequirements in
thisregard. Information regarding the
implementation ofthisprovision inMember 's
anti-dumping practice isnotavailable.WT/COMTD/W/35
Page23
Provision Implementation
2.7Agreement onImplementation ofArticle VII(Customs Valuation) oftheGATT 1994
Preamble
Desiring tofurther theobjectives of
GATT 1994 andtosecure additional benefits
fortheinternational trade ofdeveloping
countries.
Special andDifferential Treatment: Article 20
Developing country Members notparty tothe
Agreement onImplementation ofArticle VII
oftheGATT (Tokyo Round), maydelay
application oftheprovisions ofthis
Agreement foraperiod notexceeding five
years from thedateofentry intoforce ofthe
WTO Agreement forsuchMembers.
Developing country Members whochoose to
delay application ofthisAgreement shall
notify theDirector-General oftheWTO
accordingly. (Article 20:1)Thisprovision hasbeeninvoked by
51developing countries (ofwhich 12least-
developed countries).
Developing country Members notparty tothe
Agreement onImplementation ofArticle VII
oftheGATT (Tokyo Round), maydelay
application ofparagraph 2(b)(iii) ofArticle 1
andArticle 6foraperiod notexceeding three
years following theirapplication ofallother
provisions ofthisAgreement. Developing
country Members thatchoose todelay
application oftheprovisions specified inthis
paragraph shallnotify theDirector-General of
theWTO accordingly.
(Article 20:2)Thisprovision hasbeeninvoked by
49developing countries (ofwhich 11least-
developed countries).
Developed country Members shallfurnish, on
mutually agreed terms, technical assistance to
developing country Members thatsorequest.
Onthisbasis developed country Members
shalldraw upprogrammes oftechnical
assistance which mayinclude, interalia,
training ofpersonnel, assistance inpreparing
implementation measures, access tosources of
information regarding customs valuation
methodology, andadvice ontheapplication of
theprovisions ofthisAgreement.
(Article 20:3)TheWorld Customs Organization (WCO) is
conducting anextensive programme of
technical assistance.
TheCommittee onCustoms Valuation agreed
inOctober 1997 toincrease itsrolein
technical assistance activities incooperation
withtheother organizations involved. Asa
firststep,arequest forinformation onthe
implementation situation ineachdeveloping
country hasbeencirculated. Theresults will
beassessed atameeting inFebruary 1998.WT/COMTD/W/35
Page24
Provision Implementation
Annex III:1
Thefive-year delay intheapplication ofthe
provisions oftheAgreement bydeveloping
country Members provided forinArticle 20.1
may, inpractice, beinsufficient forcertain
developing country Members. Insuchcases a
developing country Member mayrequest
before theendoftheperiod referred toin
Article 20.1anextension ofsuchperiod, it
being understood thattheMembers willgive
sympathetic consideration tosucharequest in
cases where thedeveloping country Member
inquestion canshow good cause.Theoriginal five-year delay hasnotyet
lapsed.
Annex III:2
Developing countries which currently value
goods onthebasis ofofficially established
minimum values maywishtomake a
reservation toenable them toretain such
values onalimited andtransitional basis
under suchterms andconditions asmaybe
agreed tobytheMembers.Thisprovision hasbeeninvoked by31
developing countries (ofwhich 9least-
developed countries).
Annex III:3
Developing countries which consider thatthe
reversal ofthesequential order attherequest
oftheimporter provided forinArticle 4of
theAgreement maygiverisetoreal
difficulties forthem maywishtomake a
reservation toArticle 4inthefollowing terms:
"The Government of............ reserves the
righttoprovide thattherelevant provision of
Article 4oftheAgreement shallapply only
when thecustoms authorities agree tothe
request toreverse theorder ofArticles 5
and6."
Ifdeveloping countries make sucha
reservation, theMembers shallconsent toit
under Article 21oftheAgreement.Thisprovision hasbeeninvoked by
47developing countries (ofwhich 8least-
developed countries).WT/COMTD/W/35
Page25
Provision Implementation
Annex III:4
Developing countries maywishtomake a
reservation withrespect toArticle 5:2ofthe
Agreement inthefollowing terms:
"The Government of............ reserves the
righttoprovide thatArticle 5:2ofthe
Agreement shallbeapplied inaccordance with
theprovisions oftherelevant notethereto
whether ornottheimporter sorequests."
Ifdeveloping countries make sucha
reservation, theMembers shallconsent toit
under Article 21oftheAgreement.Thisprovision hasbeeninvoked by
45developing countries (ofwhich 7least-
developed countries).
Annex III:5
Certain developing countries mayhave
problems intheimplementation ofArticle 1
oftheAgreement insofarasitrelates to
importations intotheircountries bysole
agents, soledistributors andsole
concessionaires. Ifsuchproblems arisein
practice indeveloping country Members
applying theAgreement, astudy ofthis
question shallbemade, attherequest ofsuch
Members, withaviewtofinding appropriate
solutions.Norequest forastudy hasbeenmade sofar.
TheWCO hasconducted asurvey ofits
members onthissubject. Discussions resulted
intheformulation ofanAdvisory Opinion.WT/COMTD/W/35
Page26
Provision Implementation
Decision onTexts Relating toMinimum Values andImports bySoleAgents, Sole
Distributors andSoleConcessionaires
Minimum values: Text1
Where adeveloping country makes a
reservation toretain officially established
minimum values within theterms of
Annex III:2(mentioned inSection 2.8ofthis
document) andshows good cause, the
Committee shallgivetherequest forthe
reservation sympathetic consideration.
Where areservation isconsented to,theterms
andconditions referred toinAnnex III:2shall
takefullaccount ofthedevelopment, financial
andtrade needs ofthedeveloping country
concerned.31developing country Members havemade
thereservation toretain minimum values
under Annex III.2.
Related agents: Text2:1-2
Anumber ofdeveloping countries havea
concern thatproblems mayexistinthe
valuation ofimports bysoleagents, sole
distributors andsoleconcessionaires. Under
Article 20:1(mentioned inSection 2.7ofthis
document), developing country Members have
aperiod ofdelay ofuptofiveyears prior to
theapplication oftheAgreement. Inthis
context, developing country Members availing
themselves ofthisprovision could usethe
period toconduct appropriate studies andto
takesuchother actions asarenecessary to
facilitate application.
Inconsideration ofthis,theCommittee
recommends thattheCustoms Co-operation
Council assist developing country Members,
inaccordance withtheprovisions ofAnnex II,
toformulate andconduct studies inareas
identified asbeing ofpotential concern,
including those relating toimportations by
soleagents, soledistributors andsole
concessionaires.TheTechnical Committee oftheWCO has
finalized itsconsideration ofadraftcasestudy
related toanimportation byasoledistributor.WT/COMTD/W/35
Page27
Provision Implementation
2.8Agreement onPreshipment Inspection
Preamble
Noting thatanumber ofdeveloping country
Members haverecourse topreshipment
inspection;
Recognizing theneedofdeveloping countries
todosoforaslongandinsofarasitis
necessary toverify thequality, quantity or
price ofimported goods;
Obligations ofExporter Members -Technical
Assistance: Article 3:3
Exporter Members shalloffer toprovide to
userMembers, ifrequested, technical
assistance directed towards theachievement of
theobjectives ofthisAgreement onmutually
agreed terms.
2.9Agreement onImport Licensing Procedures
Preamble
Taking intoaccount theparticular trade,
development andfinancial needs ofdeveloping
country Members.
General Provisions :Article 1.2
Members shallensure thattheadministrative
procedures usedtoimplement import licensing
regimes areinconformity withtherelevant
provisions ofGATT 1994 including its
annexes andprotocols, asinterpreted bythis
Agreement, withaviewtopreventing trade
distortions thatmayarisefrom an
inappropriate operation ofthose procedures,
taking intoaccount theeconomic development
purposes andfinancial andtrade needs of
developing country Members.Thismatter hasnotbeenraised inthe
Committee onImport Licensing. However,
thisprovision hasbeeninvoked indispute
settlement cases.WT/COMTD/W/35
Page28
Provision Implementation
Automatic Import Licensing: Article 2:2
footnote 5
Adeveloping country Member, other thana
developing country Member which wasa
Party totheAgreement onImport Licensing
Procedures doneon12April 1979, which has
specific difficulties withtherequirements of
Article 2:2subparagraphs (a)(ii) and(a)(iii)5
may, upon notification totheCommittee,
delay theapplication ofthese subparagraphs
bynotmore thantwoyears from thedateof
entry intoforce oftheWTO Agreement for
suchMember.Thisprovision hasbeeninvoked by
24developing countries (ofwhich 3least-
developed countries).
Non-automatic Import Licensing:
Article 3:5(a)(iv)
Members shallprovide, upon therequest of
anyMember having aninterest inthetrade in
theproduct concerned, allrelevant
information concerning where practicable,
import statistics (i.e.value and/or volume)
withrespect totheproducts subject toimport
licensing. Developing country Members
would notbeexpected totakeadditional
administrative orfinancial burdens onthis
account.
NonAutomatic Import Licensing:
Article 3.5(j)
Inallocating licences, theMember should
consider theimport performance ofthe
applicant. Inthisregard, consideration should
begiven astowhether licences issued to
applicants inthepasthavebeenfullyutilized
during arecent representative period. In
cases where licences havenotbeenfully
utilized, theMember shallexamine the
reasons forthisandtakethese reasons into
consideration when allocating newlicences.Thismatter hasnotbeenraised inthe
Committee onImport Licensing. However,
thisprovision hasbeeninvoked indispute
settlement cases.
5These subparagraphs pertain tospecific provisions thatapply toautomatic import licensing procedures.WT/COMTD/W/35
Page29
Provision Implementation
Consideration shallalsobegiven toensuring a
reasonable distribution oflicences tonew
importers, taking intoaccount thedesirability
ofissuing licences forproducts ineconomic
quantities. Inthisregard, special
consideration should begiven tothose
importers importing products originating in
developing country Members and,in
particular, theleast-developed country
Members.
2.10 Agreement onSubsidies andCountervailing Measures
Developing Country Members referred toin
Article 27:2(a):Annex VII
Thedeveloping country Members notsubject
totheprovisions ofArticle 3:1(a)under the
terms ofArticle 27:2(a)are:
(a)Least-developed countries designated as
suchbytheUnited Nations which are
Members oftheWTO.
(b)............. developing countries which are
Members oftheWTO shallbesubject tothe
provisions which areapplicable toother
developing country Members according to
Article 27.2(b)when GNP percapita has
reached $1,000 perannum6.............TheCommittee onSubsidies tooknotethatthe
GNP percapita perannum offourdeveloping
countries haveexceeded thefigure listed in
Annex VII(b).
Special &Differential Treatment of
Developing Country Members :Article 27
Members recognize thatsubsidies mayplayan
important roleineconomic development
programmes ofdeveloping country Members.
(Article 27.1)
Theprohibition ofArticle 3.1(a) shallnot
apply to:
(a)developing country Members referred to
inAnnex VII.
(b)other developing country Members fora
period ofeight years from thedateof
entry intoforce oftheWTO Agreement,
subject tocompliance withtheprovisions
inArticle 27:4.
(Article 27.2)Fivedeveloping country Members have
invoked thisprovision when notifying
pursuant toArticle 25.
6Theinclusion ofdeveloping country Members inthelistinparagraph (b)isbased onthemost recent data
from theWorld Bank onGNP percapita.WT/COMTD/W/35
Page30
Provision Implementation
Theprohibition ofArticle 3.1(b)shallnot
apply todeveloping country Members fora
period offiveyears, andshallnotapply to
leastdeveloped country Members foraperiod
ofeight years, from thedateofentry into
force oftheWTO Agreement. (Article 27:3)Four developing country Members have
invoked thisprovision when notifying
pursuant toArticle 25.
Anydeveloping country Member referred to
inArticle 27:2(b) shallphase outitsexport
subsidies within theeight-year period,
preferably inaprogressive manner.
However, adeveloping country Member shall
notincrease thelevelofitsexport subsidies,
andshalleliminate them within aperiod
shorter thanthatprovided forinthis
paragraph when theuseofsuchexport
subsidies isinconsistent withitsdevelopment
needs. Ifadeveloping country Member
deems itnecessary toapply suchsubsidies
beyond the8-year period, itshallnotlater
thanoneyearbefore theexpiry ofthisperiod
enter intoconsultation withtheCommittee,
which willdetermine whether anextension of
thisperiod isjustified, afterexamining allthe
relevant economic, financial anddevelopment
needs ofthedeveloping country Member in
question. IftheCommittee determines that
theextension isjustified, thedeveloping
country Member concerned shallholdannual
consultations withtheCommittee todetermine
thenecessity ofmaintaining thesubsidies. If
nosuchdetermination ismade bythe
Committee, thedeveloping country Member
shallphase outtheremaining export subsidies
within twoyears from theendofthelast
authorized period. (Article 27:4)Norequest forconsultations hasbeenmade to
date.WT/COMTD/W/35
Page31
Provision Implementation
Adeveloping country Member which has
reached export competitiveness7inanygiven
product shallphase outitsexport subsidies for
suchproduct(s) overaperiod oftwoyears.
However, foradeveloping country Member
which isreferred toinAnnex VIIandwhich
hasreached export competitiveness inoneor
more products, export subsidies onsuch
products shallbegradually phased outovera
period ofeight years. (Article 27:5)Nodeveloping country Member hasnotified
having reached export competitiveness.
Theprovisions ofArticle 4shallnotapply to
adeveloping country Member inthecaseof
export subsidies which areinconformity with
theprovisions ofArticle 27:2through 27:5.
Therelevant provisions insuchacaseshallbe
those ofArticle 7.
(Article 27.7)Thisprovision hasbeeninvoked inthedispute
settlement context.
There shallbenopresumption interms of
Article 6.1thatasubsidy granted bya
developing country Member results inserious
prejudice, asdefined inthisAgreement. Such
serious prejudice, where applicable under the
terms ofArticle 27:9, shallbedemonstrated
bypositive evidence, inaccordance withthe
provisions ofArticle 6:3through 6:8.
(Article 27:8)Thisprovision hasbeeninvoked inthedispute
settlement context.
Regarding actionable subsidies granted or
maintained byadeveloping country Member
other thanthose referred toinArticle 6:1,
action maynotbeauthorized ortaken under
Article 7unless nullification orimpairment of
tariff concessions orother obligations under
GATT 1994 isfound toexistasaresult of
suchasubsidy, insuchawayastodisplace
orimpede imports ofalikeproduct ofanother
Member intothemarket ofthesubsidizing
developing country Member orunless injury
toadomestic industry inthemarket ofan
importing Member occurs. (Article 27:9)Thisprovision hasnotbeeninvoked sofarin
thedispute settlement context.
7Export competitiveness inaproduct exists ifadeveloping country Member 'sexports ofthatproduct have
reached ashare ofatleast3.25 percent inworld trade ofthatproduct fortwoconsecutive calendar years. The
Committee istoreview theoperation ofthisprovision (i.eArticle 27:6) fiveyears from itsdateoftheentry
intoforce. (Article 27.6)WT/COMTD/W/35
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Provision Implementation
Anycountervailing dutyinvestigation ofa
product originating inadeveloping country
Member shallbeterminated assoonasthe
authorities concerned determine that:
(a)theoverall levelofsubsidies granted upon
theproduct inquestion doesnotexceed
2percentofitsvalue calculated onaperunit
basis; or
(b)thevolume ofthesubsidized imports
represents lessthan4percentofthetotal
imports ofthelikeproduct intheimporting
Member, unless imports from developing
country Members whose individual shares of
totalimports represent lessthan4percent
collectively account formore than9percent
ofthetotalimports ofthelikeproduct inthe
importing Member. (Article 27:10)
Forthose developing country Members within
thescope ofArticle 27:2(b) which have
eliminated export subsidies prior tothe
expiry oftheperiod ofeight years from the
dateofentry intoforce ofthe
WTO Agreement, andforthose developing
country Members referred toinAnnex VII,
thenumber inArticle 27:10(a) shallbe
3percentrather than2percent. This
provision shallapply from thedatethatthe
elimination ofexport subsidies isnotified to
theCommittee, andforsolongasexport
subsidies arenotgranted bythenotifying
developing country Member. Thisprovision
shallexpire eight years from thedateofentry
intoforce oftheWTO Agreement.
(Article 27:11)Fiveofthecountervailing dutylegislative
notifications reviewed bytheCommittee
include provisions relating tosuchfavourable
treatment. Additionally, twenty-seven
Members havenotified theCommittee thatthe
fulltextoftheAgreement onSubsidies and
Countervailing Measures hasbeen
incorporated intotheirdomestic legalsystems.
Theprovisions ofArticle 27:10 and27:11
shallgovern anydetermination ofdeminimis
under Article 15:3.8(Article 27:12)
8Forother Members, thedeminimus isfixed atlessthan1percentadvalorem.WT/COMTD/W/35
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Provision Implementation
Theprovisions ofPartIII(Actionable
Subsidies) shallnotapply todirect forgiveness
ofdebts, subsidies tocover social costs, in
whatever form, including relinquishment of
government revenue andother transfer of
liabilities when suchsubsidies aregranted
within anddirectly linked toaprivatization
programme ofadeveloping country Member,
provided thatbothsuchprogramme andthe
subsidies involved aregranted foralimited
period andnotified totheCommittee andthat
theprogramme results ineventual
privatization oftheenterprise concerned.
(Article 27:13)TheCommittee received anddiscussed one
notification made pursuant tothisprovision.
TheCommittee shall, upon request byan
interested developing country Member,
undertake areview ofaspecific countervailing
measure toexamine whether itisconsistent
withtheprovisions of27:10 and27:11 as
applicable tothedeveloping country Member
inquestion. (Article 27:15)Nosuchrequest hasbeenreceived bythe
SCM Committee.
2.11Agreement onSafeguards
Developing Country Members: Article 9.1and
footnote 2:
Safeguard measures shallnotbeapplied
against aproduct originating inadeveloping
country Member aslongasitsshare of
imports oftheproduct concerned inthe
importing Member doesnotexceed
3percent, provided thatdeveloping country
Members withlessthan3percentimport
share collectively account fornotmore than
9percentoftotalimports oftheproduct
concerned.
footnote 2:
AMember shallimmediately notify anaction
taken under Article 9:1totheCommittee on
Safeguards.Thefollowing Members haveapplied
safeguard measures pursuant tothe
Agreement: Argentina, Brazil, Korea andthe
United States. Each ofthese Members has
notified regarding theexemption ofdeveloping
countries 'exports which arebelow the
specified threshold. Other Members '
legislation andregulations reviewed bythe
Committee alsoreflect thisprovision.WT/COMTD/W/35
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Provision Implementation
Developing Country Members: Article 9.2
Adeveloping country Member shallhavethe
righttoextend theperiod ofapplication ofa
safeguard measure foraperiod ofuptotwo
years beyond themaximum period provided
forinArticle 7:3.Notwithstanding the
provisions ofArticle 7:5,adeveloping
country Member shallhavetherighttoapply
asafeguard measure again totheimport ofa
product which hasbeensubject tosucha
measure, taken afterthedateofentry into
force oftheWTO Agreement, afteraperiod
oftimeequal tohalfthatduring which sucha
measure hasbeenpreviously applied, provided
thattheperiod ofnon-application isatleast
twoyears.Because thesafeguard measures which have
beenapplied todateareintheirinitial period
ofapplication (where theAgreement provides
nospecial anddifferential treatment for
developing countries) thisprovision remains
unused forthetimebeing. Fiveofthe
notifications ofsafeguard legislation and
regulations reviewed bytheCommittee reflect
thisprovision. Additionally, 11developing
country Members havenotified thatthe
Agreement onSafeguards hasbeenfully
incorporated intotheirlegalsystems.WT/COMTD/W/35
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Provision Implementation
3.GENERAL AGREEMENT ONTRADE INSERVICES
Preamble:
Wishing toestablish amultilateral framework
ofprinciples andrules fortrade inservices
withaviewtotheexpansion ofsuchtrade
under conditions oftransparency and
progressive liberalization andasameans of
promoting theeconomic growth ofalltrading
partners andthedevelopment ofdeveloping
countries.
Recognizing therightofMembers toregulate,
andtointroduce newregulations, onthe
supply ofservices within theirterritories in
order tomeetnational policy objectives and,
given asymmetries existing withrespect tothe
degree ofdevelopment ofservices regulations
indifferent countries, theparticular needof
developing countries toexercise thisright;
Desiring tofacilitate theincreasing
participation ofdeveloping countries intrade
inservices andtheexpansion oftheirservice
exports including, interalia,through the
strengthening oftheirdomestic services
capacity anditsefficiency and
competitiveness;
Taking particular account oftheserious
difficulty oftheleast-developed countries in
viewoftheirspecial economic situation and
theirdevelopment, trade andfinancial needs
Transparency: Article III:4
Each Member shallrespond promptly toall
requests byanyother Member forspecific
information onanyofitsmeasures ofgeneral
application orinternational agreements within
themeaning ofArticle III:1. Each Member
shallalsoestablish oneormore enquiry points
toprovide specific information toother
Members, upon request, onallsuchmatters as
wellasthose subject tothenotification
requirement inArticle III:3. Such enquiry
points shallbeestablished within twoyears
from thedateofentry intoforce ofthe
Agreement Establishing theWTO.WT/COMTD/W/35
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Provision Implementation
Appropriate flexibility withrespect tothe
time-limit within which suchenquiry points
aretobeestablished maybeagreed upon for
individual developing country Members.
Increasing Participation ofDeveloping
Countries: Article IV:1
Theincreasing participation ofdeveloping
country Members inworld trade shallbe
facilitated through negotiated specific
commitments, bydifferent Members pursuant
toParts IIIandIVofthisAgreement,
relating to:
(a)thestrengthening oftheirdomestic
services capacity anditsefficiency and
competitiveness, interaliathrough access to
technology onacommercial basis;
(b)theimprovement oftheiraccess to
distribution channels andinformation
networks; and
(c)theliberalization ofmarket access in
sectors andmodes ofsupply ofexport interest
tothem.Thefirstsetofcommitments wasnegotiated
intheUruguay Round. Subsequently further
commitments havebeenundertaken inthe
context ofextended negotiations onfinancial
services, movement ofnatural persons,
maritime transport andbasic
telecommunications. TheCouncil forTrade
inServices iscarrying outanassessment of
trade inservices, withreference tothe
objectives setoutinArticle IV:1, interalia,
inthecourse ofitspreparation ofguidelines
forthenextround ofnegotiations onservices
scheduled tobegin bytheyear2000.
Increasing Participation ofDeveloping
Countries: Article IV:2
Developed country Members, andtothe
extent possible other Members, shallestablish
contact points within twoyears from thedate
ofentry intoforce oftheWTO Agreement to
facilitate theaccess ofdeveloping country
Members 'service suppliers toinformation,
related totheirrespective markets,
concerning:
(a)commercial andtechnical aspects ofthe
supply ofservices;
(b)registration, recognition andobtaining of
professional qualifications; and
(c)theavailability ofservices technology.Sofar50Members havenotified thatthey
haveestablished contact points pursuant tothis
provision.WT/COMTD/W/35
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Provision Implementation
Increasing Participation ofDeveloping
Countries: Article IV:3
Special priority shallbegiven totheleast-
developed country Members inthe
implementation ofArticle IV:1and2.
Particular account shallbetaken oftheserious
difficulty oftheleast-developed countries in
accepting negotiated specific commitments in
viewoftheirspecial economic situation and
theirdevelopment, trade andfinancial needs.
Economic Integration: Article V:3
(a)Where developing countries areparties to
anagreement ofthetypereferred toin
Article V:1,flexibility shallbeprovided for
regarding theconditions setoutin
Article V:1,particularly withreference to
Article V:1(b) thereof, inaccordance withthe
levelofdevelopment ofthecountries
concerned, bothoverall andinindividual
sectors andsub-sectors.
(b)Notwithstanding Article V:6,inthecase
ofanagreement ofthetypereferred toin
Article V:1involving onlydeveloping
countries, more favourable treatment maybe
granted tojuridical persons owned or
controlled bynatural persons oftheparties to
suchanagreement.
Subsidies: Article XV:1
Members recognize that,incertain
circumstances, subsidies mayhavedistortive
effects ontrade inservices. Members shall
enter intonegotiations withaviewto
developing thenecessary multilateral
disciplines toavoid suchtrade-distortive
effects. Thenegotiations shallalsoaddress the
appropriateness ofcountervailing procedures.
Such negotiations shallrecognize theroleof
subsidies inrelation tothedevelopment
programmes ofdeveloping countries andtake
intoaccount theneeds ofMembers,
particularly developing country Members, for
flexibility inthisarea.Work hasbegun intheWorking Party on
GATS Rules onthenegotiation ofdisciplines
relating tosubsidies. Such negotiations are
taking place pursuant tothemandate ofthis
provision.WT/COMTD/W/35
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Provision Implementation
Negotiation ofSpecific Commitments:
Article XIX:2
Theprocess ofliberalization shalltakeplace
withduerespect fornational policy objectives
andthelevelofdevelopment ofindividual
Members, bothoverall andinindividual
sectors. There shallbeappropriate flexibility
forindividual developing country Members
foropening fewer sectors, liberalizing fewer
types oftransactions, progressively extending
market access inlinewiththeirdevelopment
situation and,when making access totheir
markets available toforeign service suppliers,
attaching tosuchaccess conditions aimed at
achieving theobjectives referred toin
Article IV.TheCouncil forTrade inServices hasstarted
work onanexchange ofinformation exercise,
which should prepare theground forthenext
comprehensive round ofnegotiations in
services duetostartnolaterthanthe
year2000. Onthebasis oftheresults ofthis
exchange theCouncil willbegin work onthe
negotiating guidelines forthenextround.
Technical Co-operation: Article XXV:2
Technical assistance todeveloping countries
shallbeprovided atthemultilateral levelby
theSecretariat andshallbedecided upon by
theCouncil forTrade inServices.TheSecretariat hasbeenproviding technical
assistance todeveloping country Members
upon request. Nosuchassistance atthe
multilateral levelhasbeendecided upon by
theCouncil. Between JulyandOctober 1997
theSecretariat hasorganized andconducted
seven regional seminars fordeveloping
countries ontheGATS andontheon-going
sectoral negotiations.
Annex onTelecommunications: paragraph 5(g)
Adeveloping country Member may,
consistent withitslevelofdevelopment, place
reasonable conditions onaccess toanduseof
public telecommunications transport networks
andservices necessary tostrengthen its
domestic telecommunications infrastructure
andservice capacity andtoincrease its
participation ininternational trade in
telecommunications services. Such conditions
shallbespecified intheMember 'sSchedule.WT/COMTD/W/35
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Provision Implementation
Annex onTelecommunications: paragraph 6
(a)Members recognize thatanefficient,
advanced telecommunications infrastructure in
countries, particularly developing countries, is
essential totheexpansion oftheirtrade in
services. Tothisend,Members endorse and
encourage theparticipation, tothefullest
extent practicable, ofdeveloped and
developing countries andtheirsuppliers of
public telecommunications transport networks
andservices andother entities inthe
development programmes ofinternational and
regional organizations, including the
International Telecommunication Union, the
United Nations Development Programme, and
theInternational Bank forReconstruction and
Development.Anumber ofother international andregional
organizations continue tosponsor events
which giveconsideration tothecoordination
ofdeveloping country initiatives andstrategies
ontelecommunications. Upon request, the
Secretariat participates insuchactivities,
providing information onhowtheGATS
relates tothesector. Many Members (both
developed anddeveloping) participate inand
support these activities.
Organizations suchastheITU, UNCTAD,
andtheWTO (under theauspices ofthe
Group onBasic Telecommunications) have
sponsored information-sharing exercises aimed
atmaking details more readily available on
industry developments andnational policy
reforms inboththetelecommunications and
information services sectors.
(b)Members shallencourage andsupport
telecommunications cooperation among
developing countries attheinternational,
regional andsub-regional levels.Asmembers oftherespective organizations,
WTO Members haveparticipated insuch
exercises.
(c)Incooperation withrelevant international
organizations, Members shallmake available,
where practicable, todeveloping countries
information withrespect to
telecommunications services anddevelopments
intelecommunications andinformation
technology toassist instrengthening their
domestic telecommunications services sector.Under theauspices oforganizations suchas
theITU, UNDP andtheWorld Bank,
Members havesupported policies encouraging
private sector participation intheenhancement
ofdeveloping country telecommunications
sectors. More recently suchinitiatives have
included programmes forimproving least-
developed country access tointernet and
internet services.
(d)Members shallgivespecial consideration
toopportunities fortheleast-developed
countries toencourage foreign suppliers of
telecommunications services toassist inthe
transfer oftechnology, training andother
activities thatsupport thedevelopment oftheir
telecommunications infrastructure and
expansion oftheirtelecommunications services
trade.WT/COMTD/W/35
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Provision Implementation
4.AGREEMENT ONTRADE-RELATED ASPECTS OFINTELLECTUAL PROPERTY
RIGHTS (TRIPS)
Preamble:
Recognizing theunderlying public policy
objectives ofnational systems forthe
protection ofintellectual property, including
developmental andtechnological objectives;
Recognizing alsothespecial needs oftheleast-
developed country Members inrespect of
maximum flexibility inthedomestic
implementation oflawsandregulations in
order toenable them tocreate asound and
viable technological base
Transitional Arrangements: Article 65
Subject totheprovisions ofparagraphs 2,3
and4,noMember shallbeobliged toapply
theprovisions ofthisAgreement before the
expiry ofageneral period ofoneyear
following thedateofentry intoforce ofthe
WTO Agreement.
(Article 65.1)
Adeveloping country Member isentitled to
delay forafurther period offouryears the
dateofapplication, asdefined inparagraph 1,
oftheprovisions ofthisAgreement other than
Articles 3,4and5.(Article 65.2)Theprovisions ofArticle 65and66laydown
thetransitional periods applicable under the
Agreement. Article 65.2and65.4contain
transitional periods fordeveloping country
Members andArticle 66.1forleast-developed
country Members. Members are
automatically eligible fortheperiods
applicable tothem. Nevertheless, todate,
15Members have, intheinterest of
transparency, made communications tothe
TRIPs Council providing information thatthey
areavailing themselves ofthetransitional
arrangements inquestion. Oneofthese
communications wasfrom aleast-developed
country Member.
Totheextent thatadeveloping country
Member isobliged bythisAgreement to
extend product patent protection toareas of
technology notsoprotectable initsterritory
onthegeneral dateofapplication ofthis
Agreement forthatMember, asdefined in
paragraph 2,itmaydelay theapplication of
theprovisions onproduct patents ofSection 5
ofPartIItosuchareas oftechnology foran
additional period offiveyears. (Article 65.4)WT/COMTD/W/35
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Provision Implementation
Least-Developed Country Members: Article 66
Inviewofthespecial needs andrequirements
ofleast-developed country Members, their
economic, financial andadministrative
constraints, andtheirneedforflexibility to
create aviable technological base, such
Members shallnotberequired toapply the
provisions ofthisAgreement, other than
Articles 3,4and5,foraperiod of10years
from thedateofapplication asdefined under
Article 65.1. TheCouncil forTRIPS shall,
upon dulymotivated request byaleast-
developed country Member, accord extensions
ofthisperiod. (Article 66.1)Seeunder Transitional Arrangements:
Article 65
Developed country Members shallprovide
incentives toenterprises andinstitutions in
theirterritories forthepurpose ofpromoting
andencouraging technology transfer toleast-
developed country Members inorder to
enable them tocreate asound andviable
technological base. (Article 66.2)Atthemeeting oftheTRIPS Council in
September 1997, which hadaspecial focus on
technical cooperation, theattention ofthe
Council wasdrawn toArticle 66.2ofthe
Agreement andtheobligations ofdeveloped
country Members under these provisions. (See
documents IP/C/M/15, paragraph 59and
IP/C/12, paragraph 23.)
Technical Cooperation: Article 67
Inorder tofacilitate theimplementation ofthis
Agreement, developed country Members shall
provide, onrequest andonmutually agreed
terms andconditions, technical andfinancial
cooperation infavour ofdeveloping andleast-
developed country Members. Such
cooperation shallinclude assistance inthe
preparation oflawsandregulations onthe
protection andenforcement ofintellectual
property rights aswellasontheprevention of
theirabuse, andshallinclude support
regarding theestablishment orreinforcement
ofdomestic offices andagencies relevant to
these matters, including thetraining of
personnel.Technical cooperation hasbeenaprominent
issue intheTRIPS Council andontheagenda
ofallregular meetings oftheCouncil. In
order toensure thatinformation onavailable
assistance isreadily accessible andtofacilitate
themonitoring ofcompliance withthe
obligation ofArticle 67,developed country
Members haveagreed topresent descriptions
oftheirrelevant technical andfinancial
cooperation programmes andtoupdate this
annually. Forthesakeoftransparency,
intergovernmental organizations havealso
presented, ontheinvitation oftheCouncil,
information ontheiractivities. Inaddition,
theWTO Secretariat hasprovided information
onitstechnical cooperation intheTRIPS area.
(Fortheinformation provided in1997, see
documents IP/C/W/77-79 andaddenda.)WT/COMTD/W/35
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Provision Implementation
Developing countries havebeenencouraged to
indicate theirtechnical cooperation needs to
theCouncil. Developed country Members
haveagreed tonotify contact points intheir
administrations fortechnical cooperation on
TRIPS (seedocument IP/N/7, revisions and
addenda). Inaddition, theSecretariat has
organized, jointly withtheInternational
Bureau ofWIPO, twoworkshops onspecific
aspects oftechnical cooperation. Thepurpose
ofthese workshops, which were organized in
conjunction withthesessions oftheCouncil,
wastoenable anexchange ofviews on
technical cooperation needs andexperiences
related totheimplementation oftheTRIPS
Agreement. Furthermore, theAgreement
between theWIPO andtheWTO (inforce
since 1.1.96) provides forcooperation
between thetwoorganizations intheareas of
legal-technical assistance andtechnical
cooperation relating totheTRIPS Agreement,
including therequirement thatthe
International Bureau ofWIPO make available
todeveloping countries Members ofthe
WTO, butnotofWIPO, thesame legal-
technical assistance relating totheTRIPS
Agreement asitmakes available toMember
States ofWIPO which aredeveloping
countries (theWTO Secretariat isrequired to
reciprocate). Pursuant tothis,thetwo
Secretariats cooperate regularly intheir
technical cooperation activities.WT/COMTD/W/35
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Provision Implementation
5.UNDERSTANDING ONRULES AND PROCEDURES GOVERNING THE
SETTLEMENT OFDISPUTES (DSU)
General Provisions: Article 3:12
Notwithstanding Article 3:11, ifacomplaint
based onanyofthecovered agreements is
brought byadeveloping country Member
against adeveloped country Member, the
complaining party shallhavetherightto
invoke, asanalternative totheprovisions
contained inArticles 4,5,6and12ofthis
Understanding, thecorresponding provisions
oftheDecision of5April 1966
(BISD 14S/18), except thatwhere thePanel
considers thatthetime-frame provided forin
paragraph 7ofthatDecision isinsufficient to
provide itsreport andwiththeagreement of
thecomplaining party, thattime-frame maybe
extended. Totheextent thatthere isa
difference between therules andprocedures of
Articles 4,5,6and12andthecorresponding
rules andprocedures oftheDecision, the
latter shallprevail.Todatethisprovision oftheDSU hasnot
beenusedbyanydeveloping country
Consultations: Article 4.10
During consultations Members should give
special attention todeveloping country
Members 'particular problems andinterests.
Composition ofPanels: Article 8.10
When adispute isbetween adeveloping
country Member andadeveloped country
Member thepanel shall, ifthedeveloping
country Member sorequests, include atleast
onepanelist from adeveloping country
Member.Outofthesixteen disputes involving a
developing country Member, 12panels have
included apanelist from adeveloping country
Member. Inthree oftheother fourcases
panelists were selected withtheagreement of
theparties. Inonecase, thepanel was
selected bytheDirector-General.WT/COMTD/W/35
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Provision Implementation
Panel Procedures: Article 12.10
Inthecontext ofconsultations involving a
measure taken byadeveloping country
Member, theparties mayagree toextend the
periods established inArticle 4:7and4:8. If,
aftertherelevant period haselapsed, the
consulting parties cannot agree thatthe
consultations haveconcluded, theChairman of
theDSBshalldecide, afterconsultation with
theparties, whether toextend therelevant
period and,ifso,forhowlong. Inaddition,
inexamining acomplaint against adeveloping
country Member, thepanel shallaccord
sufficient timeforthedeveloping country
Member toprepare andpresent its
argumentation. Theprovisions ofArticle 20:1
andofArticle 21:4arenotaffected byany
action pursuant tothisparagraph.TheChairman oftheDSBhasnotformally
acted under thisprovision because no
Members haveinvoked it.TheSecretariat
knows ofnospecific agreement between
Members based onthisprovision. Itshould
benoted, however, thatmost panel requests
aremade wellbeyond therequired 60days
afterthestartoftheconsultation period.
Thetimeperiods forsubmission ofmaterial
arenormally agreed byconsensus. This
provision hasbeencitedindiscussing such
timeperiods, butpanels havenotmade
specific rulings based onit.
Panel Procedures: Article 12.11
Where oneormore oftheparties isa
developing country Member, thepanel's
report shallexplicitly indicate theform in
which account hasbeentaken ofrelevant
provisions ondifferential andmore-favourable
treatment fordeveloping country Members
thatform partofthecovered agreements
which havebeenraised bythedeveloping
country Member inthecourse ofthedispute
settlement procedures.Todate, nopanel report hascitedthis
provision ineither the"Findings" section orin
thedescription oftheparties 'arguments.
Surveillance ofImplementation of
Recommendations andRulings: Article 21.2
Particular attention should bepaidtomatters
affecting theinterests ofdeveloping country
Members withrespect tomeasures which have
beensubject todispute settlement.Insome dispute settlement cases Members
haveraised matters affecting theinterests of
developing countries inconnection withthe
surveillance ofimplementation.
Surveillance ofImplementation of
Recommendations andRulings: Article 21.7
Ifthematter isonewhich hasbeenraised by
adeveloping country Member, theDSBshall
consider whatfurther action itmight take
which would beappropriate tothe
circumstances.TheDSBhasnottaken specific action under
thisprovision.WT/COMTD/W/35
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Provision Implementation
Surveillance ofImplementation of
Recommendations andRulings: Article 21.8
Ifthecaseisonebrought byadeveloping
country Member, inconsidering what
appropriate action might betaken, theDSB
shalltakeintoaccount notonlythetrade
coverage ofmeasures complained of,butalso
theirimpact ontheeconomy ofdeveloping
country Members concerned.TheDSBhasnottaken specific action under
thisprovision.
Special Procedures Involving Least-Developed
Members: Article 24:1
Atallstages ofthedetermination ofthecauses
ofadispute andofdispute settlement
procedures involving aleast-developed
country Member, particular consideration shall
begiven tothespecial situation ofleast-
developed country Members. Inthisregard,
Members shallexercise duerestraint inraising
matters under these procedures involving a
least-developed country Member. If
nullification orimpairment isfound toresult
from ameasure taken byaleast-developed
country Member, complaining parties shall
exercise duerestraint inasking for
compensation orseeking authorization to
suspend theapplication ofconcessions or
other obligations pursuant tothese procedures.Noleast-developed country hasbeeninvolved
indisputes ascomplainants orrespondents, or
asthirdparties inpanel proceedings.
Special Procedures Involving Least-Developed
Members: Article 24:2
Indispute settlement cases involving aleast-
developed country Member, where a
satisfactory solution hasnotbeenfound inthe
course ofconsultations theDirector-General
ortheChairman oftheDSBshall, upon
request byaleast-developed country Member
offer theirgood offices, conciliation and
mediation withaviewtoassisting theparties
tosettle thedispute, before arequest fora
panel ismade. TheDirector-General orthe
Chairman oftheDSB, inproviding theabove
assistance, mayconsult anysource which
either deems appropriate.Noleast-developed country hasbeeninvolved
indisputes, whether ascomplainants,
respondents orthird-parties.WT/COMTD/W/35
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Provision Implementation
Responsibilities oftheSecretariat: Article 27.2
While theSecretariat assists Members in
respect ofdispute settlement attheirrequest,
there mayalsobeaneedtoprovide additional
legaladvice andassistance inrespect of
dispute settlement todeveloping country
Members. Tothisend,theSecretariat shall
make available aqualified legalexpert from
theWTO technical cooperation services toany
developing country Member which so
requests. Thisexpert shallassist the
developing country Member inamanner
ensuring thecontinued impartiality ofthe
Secretariat.TheTechnical Cooperation andTraining
Division employs twoconsultants, whoare
eachavailable onedayaweek andwho
provide suchadvice. Occasionally,
consultants arehired toprovide advice ina
specific dispute.
6.TRADE POLICY REVIEW MECHANISM
Procedures forreview: Section C:(ii)
Thetrade policies andpractices ofall
Members shallbesubject toperiodic review.
Share ofworld trade inarecent representative
period, willbethedetermining factor in
deciding onthefrequency ofreviews. The
firstfourtrading entities soidentified
(counting theEuropean Communities asone)
shallbesubject toreview every twoyears.
Thenext16shallbereviewed every four
years. Other Members shallbereviewed
every sixyears, except thatalonger period
maybefixed forleast-developed country
Members.Reviews ofseven developing countries,
including oneleastdeveloped country were
heldduring 1997. Byend-1997, 88reviews
hadbeenheld, covering 61Members
(counting theEUasone), including 4least-
developed countries (Benin, Bangladesh,
Uganda andZambia); 20Members hadbeen
reviewed twice ormore.
The1998 programme willadd11Members
which havenotpreviously beenreviewed,
including 6least-developed countries (Burkina
Faso, Guinea, Lesotho, Mali, Solomon Islands
andTogo).
Reporting: Section D
Inorder toachieve thefullest possible degree
oftransparency, eachMember shallreport
regularly totheTPRB. Particular account
shallbetaken ofdifficulties presented toleast-
developed country Members incompiling their
reports. TheSecretariat shallmake available
technical assistance onrequest todeveloping
country Members, andinparticular tothe
least-developed country Members.TheSecretariat continues toprovide technical
assistance onrequest forMembers under
review. Assistance wasprovided toBenin in
thecontext ofitsTPRin1997. Togo has,to
date, requested suchassistance for1998.
Togo has,todate, requested suchassistance
for1998.WT/COMTD/W/35
Page47
Provision Implementation
III.
7.MINISTERIAL DECISIONS AND DECLARATIONS
7.1Decision onMeasures inFavour ofLeast-Developed Countries
Preamble:
Recognizing theplight oftheleast-developed
countries andtheneedtoensure theireffective
participation intheworld trading system, and
totakefurther measures toimprove their
trading opportunities;
Recognizing thespecific needs oftheleast-
developed countries intheareaofmarket
access where continued preferential access
remains anessential means forimproving their
trading opportunities;
Reaffirming theircommitment toimplement
fullytheprovisions concerning theleast-
developed countries contained in
paragraphs 2(d),6and8oftheDecision of
28November 1979 onDifferential andMore
Favourable Treatment, Reciprocity andFuller
Participation ofDeveloping Countries;
Having regard tothecommitment ofthe
participants assetoutinSection B(vii)of
PartIofthePunta delEsteMinisterial
Declaration;
Paragraph 1
Ifnotalready provided forintheinstruments
negotiated inthecourse oftheUruguay
Round, notwithstanding theiracceptance of
these instruments, theleast-developed
countries, andforsolongastheyremain in
thatcategory, while complying withthe
general rules setoutintheaforesaid
instruments, willonlyberequired to
undertake commitments andconcessions tothe
extent consistent withtheirindividual
development, financial andtrade needs, orTheperiod wasfurther extended until
December 1995.
21least-developed countries became original
WTO Members inaccordance withthis
Ministerial Decision, andtheirschedules were
annexed totheMarrakesh Protocol.WT/COMTD/W/35
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theiradministrative andinstitutional
capabilities. Theleast-developed countries
shallbegiven additional timeofoneyear
from 15April 1994 tosubmit theirschedules
asrequired inArticle XIoftheAgreement
Establishing theWorld Trade Organization.
Paragraph 2(i):
Expeditious implementation ofallspecial and
differential measures taken infavour ofleast-
developed countries including those taken
within thecontext oftheUruguay Round shall
beensured through, interalia,regular reviews
(which currently takeplace intheCommittee
onTrade andDevelopment).TheCommittee onTrade andDevelopment
conducted reviews atitsmeetings in
September 1996 andNovember 1997.
Paragraph 2(ii):
Totheextent possible, MFN concessions on
tariff andnon-tariff measures agreed inthe
Uruguay Round onproducts ofexport interest
totheleast-developed countries maybe
implemented autonomously, inadvance and
without staging.
Consideration shallbegiven tofurther
improve GSPandother schemes forproducts
ofparticular export interest toleast-developed
countries.Ontheoccasion oftheHigh-Level Meeting on
Integrated Initiatives forLeast-Developed
Countries 'Trade Development heldon27-
28October 1997, Canada inthecontext of
simplification ofitstariff, announced thatit
intends toaccelerate to1998 most ofits
Uruguay Round tariff reductions currently
scheduled forimplementation on1January
1999.
Ontheoccasion oftheHigh-Level Meeting,
13Members, bothdeveloped anddeveloping,
made announcements ofsteps theyhador
would betaking toimprove preferential
market access measures forleast-developed
countries.
Paragraph 2(iii):
Therules setoutinthevarious agreements
andinstruments andthetransitional provisions
intheUruguay Round should beapplied ina
flexible andsupportive manner fortheleast-
developed countries. Tothiseffect,
sympathetic consideration shallbegiven to
specific andmotivated concerns raised bythe
least-developed countries intheappropriate
Councils andCommittees.WT/COMTD/W/35
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Paragraph 2(iv):
Intheapplication ofimport relief measures
andother measures referred toin
paragraph 3(c)ofArticle XXXVII of
GATT 1947 andthecorresponding provision
ofGATT 1994, special consideration shallbe
given totheexport interests ofleast-developed
countries.
Paragraph 2(v):
Least-developed countries shallbeaccorded
substantially increased technical assistance in
thedevelopment, strengthening and
diversification oftheirproduction andexport
bases including those ofservices, aswellasin
trade promotion, toenable them tomaximize
thebenefits from liberalized access to
markets.TheHigh Level Meeting endorsed the
"Integrated Framework forTrade-related
Technical Assistance, including forHuman
andInstitutional Capacity-Building, toSupport
Least-developed Countries inTheir Trade and
Trade-related Activities"
(WT/LDC/HL/1/Rev.1). TheFramework
seeks toincrease thebenefits thatleast-
developed countries derive from thetrade-
related technical assistance available tothem
from thesixorganizations involved in
designing thisFramework: IMF, ITC,
UNCTAD, UNDP, World Bank andWTO, as
wellasfrom other multilateral, regional and
bilateral sources.
Paragraph 3:
Tokeepunder review thespecific needs ofthe
least-developed countries andtocontinue to
seektheadoption ofpositive measures which
facilitate theexpansion oftrading
opportunities infavour ofthese countries.Pursuant tothemandate received from the
WTO Ministerial Conference inSingapore,
theHigh-Level Meeting onIntegrated
Initiatives forLeast-developed Countries '
Trade Development tookplace on27-
28October inWTO. Itwasorganized with
thesupport andactive participation ofthe
Secretariats ofUNCTAD, ITCandUNDP,
andthestaffoftheIMFandtheWorld Bank.
Themain objectives ofthisMeeting were to
enable Members toannounce improved market
access forleast-developed countries, andto
endorse theIntegrated Framework forTrade-
Related Technical assistance. TheMeeting
encouraged allWTO Members tokeepunderWT/COMTD/W/35
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active review alloptions forimproving market
access forleast-developed countries presented
intheComprehensive andIntegrated WTO
PlanofActions forLeast-developed Countries
andtomonitor theimplementation ofthe
commitments made inthisregard. The
Meeting alsorecommended totheWTO thata
fullreport ontheoutcome andfollow-up of
theMeeting andannouncements of
implementation ofautonomous market access
measures andcommitments infavour ofleast
developed countries beprepared bythe
Director-General oftheWTO andsubmitted
totheWTO Ministerial Conference in
May1998.
7.2Declaration ontheContribution oftheWTO toAchieving Greater Coherence in
Global Economic Policy-making
Paragraph 2states interalia:
There isalsoaneedforanadequate and
timely flowofconcessional andnon-
concessional financial andrealinvestment
resources todeveloping countries andfor
further efforts toaddress debtproblems, to
helpensure economic growth and
development. Trade liberalization forms an
increasingly important component inthe
success oftheadjustment programmes that
many countries areundertaking, often
involving significant transitional social costs.
Inthisconnection, Ministers notetheroleof
theWorld Bank andtheIMFinsupporting
adjustment totrade liberalization, including
support tonetfood-importing developing
countries facing short-term costs arising from
agricultural trade reforms.InNovember 1996 theGeneral Council
approved WTO agreements withtheIMFand
theWorld Bank. Theagreements aimed to
strengthen inter-agency relations.
TheHigh-Level Meeting forLeast-Developed
Countries 'Trade Development in
October 1997 endorsed theparticipation ofsix
inter-governmental agencies including theIMF
andWorld Bank intheIntegrated Framework
forTrade-Related Technical Cooperation for
least-developed countries
7.3Decision onNotification Procedures
Review ofnotification obligations and
procedures: PartIII
TheCouncil forTrade inGoods will
undertake areview ofnotification obligations
andprocedures under theAgreements in
Annex 1AoftheWTO Agreement ..........
....bearing inmind thepossible needofsome
developing country Members forassistance in
meeting theirnotification obligations.TheWTO Secretariat hasprepared apractical
handbook onnotification obligations.WT/COMTD/W/35
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7.4Decision onMeasures Concerning thePossible Negative Effects oftheReform
Programme onLeast-Developed andNetFood-Importing Developing Countries
Thefollow-up oftheDecision hasrepresented
animportant partofthework ofthe
Committee onAgriculture. TheDecision has
beenontheagenda ofvirtually eachmeeting
oftheCommittee. Agreement wasfound ona
number ofelements related totheDecision.
thatis,(i)anannual review (November) of
theimplementation oftheDecision;
(ii)notification requirements, notably for
developed country Members, foractions taken
under theDecision; (iii)theestablishment of
aWTO listofNFICs, which comprises
currently the48least-developed countries as
defined bytheUnited Nations and
18developing country Members. Inaddition
totheannual reviews oftheDecision inthe
Committee onAgriculture which were
undertaken, interalia,onthebasis ofsome
20notifications received from Members on
thesubject, theCommittee made specific
recommendations totheSingapore Ministerial
Conference (SMC) which were adopted. The
recommendations, which aresetoutbelow,
havebeenfollowed-up intherelevant bodies
andmonitored within theCommittee on
Agriculture.
Paragraph 3:
Ministers agree toestablish appropriate
mechanisms toensure thattheimplementation
oftheresults oftheUruguay Round ontrade
inagriculture doesnotadversely affect the
availability offoodaidatalevelwhich is
sufficient tocontinue toprovide assistance in
meeting thefoodneeds ofdeveloping
countries, especially least-developed andnet
food-importing developing countries. Tothis
endMinisters agree:WT/COMTD/W/35
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Paragraph 3(i):
Toreview theleveloffoodaidestablished
periodically bytheCommittee onFood Aid
under theFood AidConvention 1986 andto
initiate negotiations intheappropriate forum
toestablish aleveloffoodaidcommitments
sufficient tomeetthelegitimate needs of
developing countries during thereform
programme.TheSMC agreed that,inanticipation ofthe
expiry ofthecurrent Food AidConvention
(FAC) inJune1998 andinpreparation forthe
renegotiation oftheFAC, action beinitiated
in1997 within theframework oftheFAC,
under arrangements forparticipation byall
interested countries andbyrelevant
international organizations asappropriate, to
develop recommendations withaviewtowards
establishing aleveloffoodaidcommitments,
covering aswidearange ofdonors and
donable foodstuffs aspossible, which is
sufficient tomeetthelegitimate needs of
developing countries during thereform
programme. Inresponse, since January 1997,
several meetings havetaken place within the
framework oftheFAC, including meetings
withnetfood-importing developing andleast-
developed countries. InDecember 1997, the
FAC Food AidCommittee decided toextend
thecurrent FAC foroneyear(until June
1999) andtoopentheConvention for
renegotiation in1998, taking intoaccount,
among others, theSMC recommendation.
TheCommittee onAgriculture continues its
monitoring role.
Paragraph 3(ii):
Toadopt guidelines toensure thatan
increasing proportion ofbasic foodstuffs is
provided toleast-developed andnetfood-
importing developing countries infullygrant
form and/or onappropriate concessional terms
inlinewithArticle IVoftheFood Aid
Convention 1986.TheSMC agreed thattherecommendations
referred toabove should include guidelines to
ensure thatanincreasing proportion offood
aidisprovided toleast-developed andnet
food-importing developing countries infully
grant form and/or onappropriate concessional
terms inlinewithArticle IVofthecurrent
FAC, aswellasmeans toimprove the
effectiveness andpositive impact offoodaid.
Paragraph 3(iii):
Togivefullconsideration inthecontext of
theiraidprogrammes torequests forthe
provision oftechnical andfinancial assistance
toleast-developed andnetfood-importing
developing countries toimprove their
agricultural productivity andinfrastructure.TheSMC called ondeveloped country WTO
Members tocontinue togivefullconsideration
inthecontext oftheiraidprogrammes to
requests fortheprovision oftechnical and
financial assistance inthislight.WT/COMTD/W/35
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Paragraph 4:
Toensure thatanyagreement relating to
agricultural export credits makes appropriate
provision fordifferential treatment infavour
ofleast-developed andnetfood-importing
developing countries.Ministers reaffirmed thecommitment atthe
SMC.
Paragraph 5:
Asaresult oftheUruguay Round certain
developing countries mayexperience short-
termdifficulties infinancing normal levels of
commercial imports andthatthese countries
maybeeligible todraw ontheresources of
international financial institutions under
existing facilities, orsuchfacilities asmaybe
established, inthecontext ofadjustment
programmes, inorder toaddress such
financing difficulties. Inthisregard,
Ministers takenoteofparagraph 37ofthe
report oftheDirector-General tothe
CONTRACTING PARTIES toGATT 1947
onhisconsultations withtheManaging
Director oftheInternational Monetary Fund
andthePresident oftheWorld Bank
(MTN.GNG/NG14/W/35).AttheSMC itwasagreed thatWTO
Members, intheirindividual capacity as
members ofrelevant international financial
institutions, takeappropriate steps to
encourage theinstitutions concerned, through
theirrespective governing bodies, tofurther
consider thescope forestablishing new
facilities orenhancing existing facilities for
developing countries experiencing Uruguay
Round-related difficulties infinancing normal
levels ofcommercial imports ofbasic
foodstuffs. Atrecent meetings ofthe
Committee onAgriculture, theWorld Bank
andtheIMFreported thattheyareina
position tomeetrelevant requests from
existing facilities.WT/COMTD/W/35
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Provision Implementation
8.THE GENERAL AGREEMENT ONTARIFFS AND TRADE9
8.1Article XVIII
1.Thecontracting parties recognize thatthe
attainment oftheobjectives ofthisAgreement
willbefacilitated bytheprogressive
development oftheireconomies, particularly
ofthose contracting parties theeconomies of
which canonlysupport lowstandards of
living andareintheearly stages of
development.
2.Thecontracting parties recognize further
thatitmaybenecessary forthose contracting
parties, inorder toimplement programmes
andpolicies ofeconomic development
designed toraisethegeneral standard ofliving
oftheirpeople, totakeprotective orother
measures affecting imports, andthatsuch
measures arejustified insofarasthey
facilitate theattainment oftheobjectives of
thisAgreement. They agree, therefore, that
those contracting parties should enjoy
additional facilities toenable them (a)to
maintain sufficient flexibility intheirtariff
structure tobeabletogrant thetariff
protection required fortheestablishment ofa
particular industry and(b)toapply
quantitative restrictions forbalance of
payments purposes inamanner which takes
fullaccount ofthecontinued highlevelof
demand forimports likely tobegenerated by
theirprogrammes ofeconomic development.
9References tonotes andsupplementary provisions (AdArticles) havebeenleftoutintheinterest ofbrevity.WT/COMTD/W/35
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Provision Implementation
3.Thecontracting parties recognize finally
that,withthose additional facilities which are
provided forinSections AandBofthis
Article, theprovisions ofthisAgreement
would normally besufficient toenable
contracting parties tomeettherequirements of
theireconomic development. They agree,
however, thatthere maybecircumstances
where nomeasure consistent withthose
provisions ispracticable topermit a
contracting party intheprocess ofeconomic
development togrant thegovernmental
assistance required topromote the
establishment ofparticular industries witha
viewtoraising thegeneral standard ofliving
ofitspeople. Special procedures arelaid
down inSections CandDofthisArticle to
dealwiththose cases.
4.(a)Consequently, acontracting party, the
economy ofwhich canonlysupport low
standards ofliving andisintheearly stages of
development, shallbefreetodeviate
temporarily from theprovisions oftheother
Articles ofthisAgreement, asprovided in
Sections A,BandCofthisArticle.
(b)Acontracting party, theeconomy of
which isintheprocess ofdevelopment, but
which doesnotcome within thescope of
subparagraph (a)above, maysubmit
applications totheCONTRACTING
PARTIES under Section DofthisArticle.
5.Thecontracting parties recognize thatthe
export earnings ofcontracting parties, the
economies ofwhich areofthetypedescribed
inparagraph 4(a)and(b)above andwhich
depend onexports ofasmall number of
primary commodities, maybeseriously
reduced byadecline inthesaleofsuch
commodities. Accordingly, when theexports
ofprimary commodities bysuchacontracting
party areseriously affected bymeasures taken
byanother contracting party, itmayhave
resort totheconsultation provisions of
Article XXII ofthisAgreement.WT/COMTD/W/35
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6.TheCONTRACTING PARTIES shall
review annually allmeasures applied pursuant
totheprovisions ofSections CandDofthis
Article.
Section A
7.(a)Ifacontracting party coming within
thescope ofparagraph 4(a)ofthisArticle
considers itdesirable, inorder topromote the
establishment ofaparticular industry witha
viewtoraising thegeneral standard ofliving
ofitspeople, tomodify orwithdraw a
concession included intheappropriate
Schedule annexed tothisAgreement, itshall
notify theCONTRACTING PARTIES tothis
effect andenter intonegotiations withany
contracting party withwhich suchconcession
wasinitially negotiated, andwithanyother
contracting party determined bythe
CONTRACTING PARTIES tohavea
substantial interest therein. Ifagreement is
reached between suchcontracting parties
concerned, theyshallbefreetomodify or
withdraw concessions under theappropriate
Schedules tothisAgreement inorder togive
effect tosuchagreement, including any
compensatory adjustments involved.Theprovision hasnotbeeninvoked by
developing country Members since theWTO
Agreement came intoforce.
(b)Ifagreement isnotreached within sixty
daysafterthenotification provided forin
subparagraph (a)above, thecontracting party
which proposes tomodify orwithdraw the
concession mayreferthematter tothe
CONTRACTING PARTIES which shall
promptly examine it.Iftheyfindthatthe
contracting party which proposes tomodify or
withdraw theconcession hasmade every
effort toreach anagreement andthatthe
compensatory adjustment offered byitisWT/COMTD/W/35
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adequate, thatcontracting party shallbefree
tomodify orwithdraw theconcession if,at
thesame time, itgives effect tothe
compensatory adjustment. Ifthe
CONTRACTING PARTIES donotfindthat
thecompensation offered byacontracting
party proposing tomodify orwithdraw the
concession isadequate, butfindthatithas
made every reasonable effort tooffer adequate
compensation, thatcontracting party shallbe
freetoproceed withsuchmodification or
withdrawal. Ifsuchaction istaken, anyother
contracting party referred toinsubparagraph
(a)above shallbefreetomodify orwithdraw
substantially equivalent concessions initially
negotiated withthecontracting party which
hastaken theaction.
Section B
8.Thecontracting parties recognize that
contracting parties coming within thescope of
paragraph 4(a)ofthisArticle tend, when
theyareinrapid process ofdevelopment, to
experience balance ofpayments difficulties
arising mainly from efforts toexpand their
internal markets aswellasfrom theinstability
intheirterms oftrade.Theprovision hasbeeninvoked by
12developing country Members since the
WTO Agreement came intoforce. Seealso
section 8.2below under Understanding on
Balance-of-Payments Provisions of
GATT 1994.
9.Inorder tosafeguard itsexternal financial
position andtoensure alevelofreserves
adequate fortheimplementation ofits
programme ofeconomic development, a
contracting party coming within thescope of
paragraph 4(a)ofthisArticle may, subject to
theprovisions ofparagraphs 10to12,control
thegeneral levelofitsimports byrestricting
thequantity orvalue ofmerchandise permitted
tobeimported; Provided thattheimport
restrictions instituted, maintained or
intensified shallnotexceed those necessary:WT/COMTD/W/35
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(a)toforestall thethreat of,ortostop, a
serious decline initsmonetary reserves, or
(b)inthecaseofacontracting party with
inadequate monetary reserves, toachieve a
reasonable rateofincrease initsreserves.
Dueregard shallbepaidineither casetoany
special factors which maybeaffecting the
reserves ofthecontracting party oritsneed
forreserves, including, where special external
credits orother resources areavailable toit,
theneedtoprovide fortheappropriate useof
suchcredits orresources.
10.Inapplying these restrictions, the
contracting party maydetermine their
incidence onimports ofdifferent products or
classes ofproducts insuchawayastogive
priority totheimportation ofthose products
which aremore essential inthelightofits
policy ofeconomic development; Provided
thattherestrictions aresoapplied astoavoid
unnecessary damage tothecommercial or
economic interests ofanyother contracting
party andnottoprevent unreasonably the
importation ofanydescription ofgoods in
minimum commercial quantities theexclusion
ofwhich would impair regular channels of
trade; andProvided further thatthe
restrictions arenotsoapplied astoprevent the
importation ofcommercial samples orto
prevent compliance withpatent, trade mark,
copyright orsimilar procedures.
11. Incarrying outitsdomestic policies, the
contracting party concerned shallpaydue
regard totheneedforrestoring equilibrium in
itsbalance ofpayments onasound andlasting
basis andtothedesirability ofassuring an
economic employment ofproductive
resources. Itshallprogressively relax any
restrictions applied under thisSection asWT/COMTD/W/35
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conditions improve, maintaining them onlyto
theextent necessary under theterms of
paragraph 9ofthisArticle andshalleliminate
them when conditions nolonger justify such
maintenance; Provided thatnocontracting
party shallberequired towithdraw ormodify
restrictions ontheground thatachange inits
development policy would render unnecessary
therestrictions which itisapplying under this
Section.
12.(a)Anycontracting party applying new
restrictions orraising thegeneral levelofits
existing restrictions byasubstantial
intensification ofthemeasures applied under
thisSection, shallimmediately afterinstituting
orintensifying suchrestrictions (or,in
circumstances inwhich prior consultation is
practicable, before doing so)consult withthe
CONTRACTING PARTIES astothenature
ofitsbalance ofpayments difficulties,
alternative corrective measures which maybe
available, andthepossible effect ofthe
restrictions ontheeconomies ofother
contracting parties.
(b)Onadatetobedetermined bythem the
CONTRACTING PARTIES shallreview all
restrictions stillapplied under thisSection on
thatdate. Beginning twoyears afterthatdate,
contracting parties applying restrictions under
thisSection shallenter intoconsultations of
thetypeprovided forinsubparagraph (a)
above withtheCONTRACTING PARTIES at
intervals ofapproximately, butnotlessthan,
twoyears according toaprogramme tobe
drawn upeachyearbytheCONTRACTING
PARTIES; Provided thatnoconsultation
under thissubparagraph shalltakeplace
within twoyears aftertheconclusion ofa
consultation ofageneral nature under any
other provision ofthisparagraph.Since theentry intoforce oftheWTO,
consultations havebeenheldwithtwelve
developing country Members: Bangladesh,
Brazil, Egypt, India, Israel, Nigeria, Pakistan,
thePhilippines, South Africa, SriLanka,
Turkey andTunisia. Brazil 'sclaim forBOP
cover wasnotaccepted bytheCommittee.
Egypt, Israel, South Africa andTurkey have
disinvoked BOPprovisions. ThePhilippines
undertook todisinvoke theprovisions subject
totheliberalization ofremaining restrictions
by31December 1997. Tunisia hasagreed to
aphase-out programme running until
1July2000; Pakistan istosubmit atime
tableforphasing outofremaining restrictions
within 12months from November 1997.
India isinadispute settlement process with
theUnited States concerning itsphase-out
programme.
Thefollowing developing countries arethus
currently subject toBOPconsultations:
Bangladesh, Nigeria, Pakistan, SriLanka and
Tunisia.WT/COMTD/W/35
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(c)(i)If,inthecourse ofconsultations witha
contracting party under subparagraph (a)or
(b)ofthisparagraph, theCONTRACTING
PARTIES findthattherestrictions arenot
consistent withtheprovisions ofthisSection
orwiththose ofArticle XIII(subject tothe
provisions ofArticle XIV), theyshallindicate
thenature oftheinconsistency andmayadvise
thattherestrictions besuitably modified.
(ii)If,however, asaresult ofthe
consultations, theCONTRACTING PARTIES
determine thattherestrictions arebeing
applied inamanner involving an
inconsistency ofaserious nature withthe
provisions ofthisSection orwiththose of
Article XIII(subject totheprovisions of
Article XIV) andthatdamage tothetrade of
anycontracting party iscaused orthreatened
thereby, theyshallsoinform thecontracting
party applying therestrictions andshallmake
appropriate recommendations forsecuring
conformity withsuchprovisions within a
specified period. Ifsuchcontracting party
doesnotcomply withthese recommendations
within thespecified period, the
CONTRACTING PARTIES mayrelease any
contracting party thetrade ofwhich is
adversely affected bytherestrictions from
suchobligations under thisAgreement towards
thecontracting party applying therestrictions
astheydetermine tobeappropriate inthe
circumstances.
(d)TheCONTRACTING PARTIES shall
invite anycontracting party which isapplying
restrictions under thisSection toenter into
consultations withthem attherequest ofany
contracting party which canestablish aprima
faciecasethattherestrictions areinconsistent
withtheprovisions ofthisSection orwith
those ofArticle XIII(subject totheprovisions
ofArticle XIV) andthatitstrade isadversely
affected thereby. However, nosuchinvitation
shallbeissued unless theCONTRACTING
PARTIES haveascertained thatdirect
discussions between thecontracting parties
concerned havenotbeensuccessful. If,asaWT/COMTD/W/35
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result oftheconsultations withthe
CONTRACTING PARTIES noagreement is
reached andtheydetermine thatthe
restrictions arebeing applied inconsistently
withsuchprovisions, andthatdamage tothe
trade ofthecontracting party initiating the
procedure iscaused orthreatened thereby,
theyshallrecommend thewithdrawal or
modification oftherestrictions. Ifthe
restrictions arenotwithdrawn ormodified
within suchtimeastheCONTRACTING
PARTIES mayprescribe, theymayrelease the
contracting party initiating theprocedure from
suchobligations under thisAgreement towards
thecontracting party applying therestrictions
astheydetermine tobeappropriate inthe
circumstances.
(e)Ifacontracting party against which action
hasbeentaken inaccordance withthelast
sentence ofsubparagraph (c)(ii)or(d)ofthis
paragraph, finds thattherelease ofobligations
authorized bytheCONTRACTING PARTIES
adversely affects theoperation ofits
programme andpolicy ofeconomic
development, itshallbefree,notlaterthan
sixty daysaftersuchaction istaken, togive
written notice totheExecutive Secretary to
theContracting Parties ofitsintention to
withdraw from thisAgreement andsuch
withdrawal shalltakeeffect onthesixtieth day
following thedayonwhich thenotice is
received byhim.
(f)Inproceeding under thisparagraph, the
CONTRACTING PARTIES shallhavedue
regard tothefactors referred toin
paragraph 2ofthisArticle. Determinations
under thisparagraph shallberendered
expeditiously and,ifpossible, within sixty
daysoftheinitiation oftheconsultations.WT/COMTD/W/35
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Section C
13.Ifacontracting party coming within the
scope ofparagraph 4(a)ofthisArticle finds
thatgovernmental assistance isrequired to
promote theestablishment ofaparticular
industry withaviewtoraising thegeneral
standard ofliving ofitspeople, butthatno
measure consistent withtheother provisions
ofthisAgreement ispracticable toachieve
thatobjective, itmayhaverecourse tothe
provisions andprocedures setoutinthis
Section.Since theWTO Agreement entered intoforce,
onedeveloping country Member citedthis
provision during adispute.
14.Thecontracting party concerned shall
notify theCONTRACTING PARTIES ofthe
special difficulties which itmeets inthe
achievement oftheobjective outlined in
paragraph 13ofthisArticle andshallindicate
thespecific measure affecting imports which it
proposes tointroduce inorder toremedy these
difficulties. Itshallnotintroduce thatmeasure
before theexpiration ofthetime-limit laid
down inparagraph 15or17,asthecasemay
be,orifthemeasure affects imports ofa
product which isthesubject ofaconcession
included intheappropriate Schedule annexed
tothisAgreement, unless ithassecured the
concurrence oftheCONTRACTING
PARTIES inaccordance withprovisions of
paragraph 18;Provided that,iftheindustry
receiving assistance hasalready started
production, thecontracting party may, after
informing theCONTRACTING PARTIES,
takesuchmeasures asmaybenecessary to
prevent, during thatperiod, imports ofthe
product orproducts concerned from increasing
substantially above anormal level.
15.If,within thirty daysofthenotification
ofthemeasure, theCONTRACTING
PARTIES donotrequest thecontracting party
concerned toconsult withthem, that
contracting party shallbefreetodeviate from
therelevant provisions oftheother Articles of
thisAgreement totheextent necessary to
apply theproposed measure.WT/COMTD/W/35
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16.Ifitisrequested bytheCONTRACTING
PARTIES todoso,thecontracting party
concerned shallconsult withthem astothe
purpose oftheproposed measures, asto
alternative measures which maybeavailable
under thisAgreement, andastothepossible
effect ofthemeasure proposed onthe
commercial andeconomic interests ofother
contracting parties. If,asaresult ofsuch
consultation, theCONTRACTING PARTIES
agree thatthere isnomeasure consistent with
theother provisions ofthisAgreement which
ispracticable inorder toachieve theobjective
outline inparagraph 13ofthisArticle, and
concur intheproposed measure, the
contracting party concerned shallbereleased
from itsobligations under therelevant
provisions oftheother Articles ofthis
Agreement totheextent necessary toapply
thatmeasure.
17.If,within ninety daysafterthedateofthe
notification oftheproposed measure under
paragraph 14ofthisArticle, the
CONTRACTING PARTIES havenot
concurred insuchmeasure, thecontracting
party concerned mayintroduce themeasure
proposed afterinforming the
CONTRACTING PARTIES.
18.Iftheproposed measure affects aproduct
which isthesubject ofaconcession included
intheappropriate Schedule annexed tothis
Agreement, thecontracting party concerned
shallenter intoconsultations withanyother
contracting party withwhich theconcession
wasinitially negotiated, andwithanyother
contracting party determined bythe
CONTRACTING PARTIES tohavea
substantial interest therein. The
CONTRACTING PARTIES shallconcur in
themeasure iftheyagree thatthere isno
measure consistent withtheother provisions
ofthisAgreement which ispracticable in
order toachieve theobjective setforth in
paragraph 13ofthisArticle, andiftheyare
satisfied:WT/COMTD/W/35
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(a)thatagreement hasbeenreached with
suchother contracting parties asaresult ofthe
consultations referred toabove, or
(b)ifnosuchagreement hasbeenreached
within sixty daysafterthenotification
provided forinparagraph 14hasbeen
received bytheCONTRACTING PARTIES,
thatthecontracting party having recourse to
thisSection hasmade allreasonable efforts to
reach anagreement andthattheinterests of
other contracting parties areadequately safe
guarded.
Thecontracting party having recourse tothis
Section shallthereupon bereleased from its
obligations under therelevant provisions of
theother Articles ofthisAgreement tothe
extent necessary topermit ittoapply the
measure.
19.Ifaproposed measure ofthetype
described inparagraph 13ofthisArticle
concerns anindustry theestablishment of
which hasintheinitial period beenfacilitated
byincidental protection afforded by
restrictions imposed bythecontracting party
concerned forbalance ofpayments purposes
under therelevant provisions ofthis
Agreement, thatcontracting party mayresort
totheprovisions andprocedures ofthis
Section; Provided thatitshallnotapply the
proposed measure without theconcurrence of
theCONTRACTING PARTIES.
20.Nothing inthepreceding paragraphs of
thisSection shallauthorize anydeviation from
theprovisions ofArticles I,IIandXIIIofthis
Agreement. Theprovisos toparagraph 10of
thisArticle shallalsobeapplicable toany
restriction under thisSection.WT/COMTD/W/35
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21.Atanytimewhile ameasure isbeing
applied under paragraph 17ofthisArticle any
contracting party substantially affected byit
maysuspend theapplication tothetrade ofthe
contracting party having recourse tothis
Section ofsuchsubstantially equivalent
concessions orother obligations under this
Agreement thesuspension ofwhich the
CONTRACTING PARTIES donot
disapprove; Provided thatsixty days'notice of
suchsuspension isgiven tothe
CONTRACTING PARTIES notlaterthansix
months afterthemeasure hasbeenintroduced
orchanged substantially tothedetriment of
thecontracting party affected. Anysuch
contracting party shallafford adequate
opportunity forconsultation inaccordance
withtheprovisions ofArticle XXII ofthis
Agreement.
8.2 General Agreement onTariffs andTrade 1994
Understanding onBalance-of-Payments Provisions
Procedures forBOPconsultations:
Paragraph 8
Consultations maybeheldunder the
simplified procedures approved on
19December 1972 (referred tointhis
paragraph as"simplified consultation
procedures") inthecaseofleast-developed
country Members orinthecaseofdeveloping
country Members which arepursuing
liberalization efforts inconformity withthe
schedule presented totheCommittee in
previous consultations. Simplified
consultation procedures mayalsobeused
when theTrade Policy Review ofa
developing country Member isscheduled for
thesame calendar yearasthedatefixed for
theconsultations. Insuchcases thedecision
astowhether fullconsultation procedures
should beusedwillbemade onthebasis of
thefactors enumerated inparagraph 8of
the1979 Declaration. Except inthecaseof
least-developed country Members, nomore
thantwosuccessive consultations maybeheld
under simplified consultation procedures.Bangladesh, aleast-developed country, has
always todateheldconsultations under
simplified procedures. However, the
Committee hasdetermined thatfull
consultations would bedesirable and
Bangladesh hasbeeninvited toconsider
holding suchconsultations intheautumn
of1998 or,inanycase, before May1999.
Thenextconsultations withPakistan,
SriLanka andTunisia should alsobeheldon
asimplified basis inthecontext of
liberalization schedules.WT/COMTD/W/35
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Notification andDocumentation:
Paragraph 12
TheSecretariat shall, withaviewto
facilitating theconsultations intheCommittee,
prepare afactual background paper dealing
withthedifferent aspects oftheplanfor
consultations. Inthecaseofdeveloping
consulting Member, theSecretariat document
shallinclude relevant background and
analytical material ontheincidence ofthe
external trading environment onthebalance-
of-payments situation andprospects ofthe
consulting Member. Thetechnical assistance
services oftheSecretariat shall, attherequest
ofadeveloping country Member, assist in
preparing thedocumentation forthe
consultations.Background papers arecontained inthe
BOP/S/... series.
Technical assistance andadvice relating to
substantive issues before theCommittee is
provided todelegations onrequest bythe
Secretary oftheCommittee.
8.3Article XXXVI
1.Thecontracting parties,
(a)recalling thatthebasic objectives ofthis
Agreement include theraising ofstandards of
living andtheprogressive development ofthe
economies ofallcontracting parties, and
considering thattheattainment ofthese
objectives isparticularly urgent forless-
developed contracting parties;
(b)considering thatexport earnings ofthe
less-developed contracting parties canplaya
vitalpartintheireconomic development and
thattheextent ofthiscontribution depends on
theprices paidbytheless-developed
contracting parties foressential imports, the
volume oftheirexports, andtheprices
received forthese exports;
(c)noting, thatthere isawidegapbetween
standards ofliving inless-developed countries
andinother countries;
(d)recognizing thatindividual andjointaction
isessential tofurther thedevelopment ofthe
economies ofless-developed contracting
parties andtobring about arapid advance in
thestandards ofliving inthese countries;WT/COMTD/W/35
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(e)recognizing thatinternational trade asa
means ofachieving economic andsocial
advancement should begoverned bysuch
rules andprocedures -andmeasures in
conformity withsuchrules andprocedures -
asareconsistent withtheobjectives setforth
inthisArticle;
(f)noting thattheCONTRACTING PARTIES
mayenable less-developed contracting parties
tousespecial measures topromote theirtrade
anddevelopment;
agree asfollows.
2.There isneedforarapid andsustained
expansion oftheexport earnings oftheless-
developed contracting parties.
3.There isneedforpositive efforts designed
toensure thatless-developed contracting
parties secure ashare inthegrowth in
international trade commensurate withthe
needs oftheireconomic development.Aresponse totheprovisions ofparagraphs 3,
4and5maybefound inthemaintenance of
preferential tariff andother market access
arrangements maintained under Members '
GSPschemes, theGSTP, andother non-
reciprocal preferential arrangements. Seealso
thereference toimproved preferential market
access measures forleast-developed countries
under Section 7.1above (Decision on
Measures inFavour ofLeast-Developed
Countries).
4.Given thecontinued dependence ofmany
less-developed contracting parties onthe
exportation ofalimited range ofprimary
products, there isneedtoprovide inthe
largest possible measure more favourable and
acceptable conditions ofaccess toworld
markets forthese products, andwherever
appropriate todevise measures designed to
stabilize andimprove conditions ofworld
markets inthese products, including in
particular measures designed toattain stable,
equitable andremunerative prices, thusSeealsounder Section 2.1above (Agreement
onAgriculture).WT/COMTD/W/35
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permitting anexpansion ofworld trade and
demand andadynamic andsteady growth of
therealexport earnings ofthese countries so
astoprovide them withexpanding resources
fortheireconomic development.
5.Therapid expansion oftheeconomies of
theless-developed contracting parties willbe
facilitated byadiversification ofthestructure
oftheireconomies andtheavoidance ofan
excessive dependence ontheexport of
primary products. There is,therefore, need
forincreased access inthelargest possible
measure tomarkets under favourable
conditions forprocessed andmanufactured
products currently orpotentially ofparticular
export interest toless-developed contracting
parties.Seeabove.
6.Because ofthechronic deficiency inthe
export proceeds andother foreign exchange
earnings ofless-developed contracting parties,
there areimportant inter-relationships between
trade andfinancial assistance todevelopment.
There is,therefore, needforclose and
continuing collaboration between the
CONTRACTING PARTIES andthe
international lending agencies sothattheycan
contribute most effectively toalleviating the
burdens these less-developed contracting
parties assume intheinterest oftheir
economic development.Seeunder Section 7.2above (Declaration on
theContribution oftheWTO toAchieving
Greater Coherence inGlobal Economic
Policy-Making).
7.There isneedforappropriate collaboration
between theCONTRACTING PARTIES,
other intergovernmental bodies andtheorgans
andagencies oftheUnited Nations system,
whose activities relate tothetrade and
economic development ofless-developed
countries.Aglobal arrangement forcooperation between
WTO andtheUnited Nations wasconcluded
on29September 1995 byanexchange of
letters between theDirector-General andthe
UNSecretary General (WT/GC/W/10).WT/COMTD/W/35
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8.Thedeveloped contracting parties donot
expect reciprocity forcommitments made by
them intrade negotiations toreduce or
remove tariffs andother barriers tothetrade
ofless-developed contracting parties.
9.Theadoption ofmeasures togiveeffect to
these principles andobjectives shallbea
matter ofconscious andpurposeful effort on
thepartofthecontracting parties both
individually andjointly.Seeabove under paragraphs 3,4and5.In
addition, thisprovision wastaken intoaccount
during thenegotiations intheUruguay Round.
Thisisreflected bothintheextent ofbindings
onindustrial products andtheaverage levelof
tariffs ofthedeveloping country Members.
In1997 intheInformation Technology
Agreement thedeveloping country Members
were given thefacility ofalonger timeperiod
foralimited number ofproducts for
elimination oftariffs.
8.4Article XXXVII
1.Thedeveloped contracting parties shallto
thefullest extent possible -thatis,except
when compelling reasons, which mayinclude
legalreasons, make itimpossible giveeffect
tothefollowing provisions:
(a)Accord highpriority tothereduction and
elimination ofbarriers toproducts currently or
potentially ofparticular export interest toless-
developed contracting parties, including
customs duties andother restrictions which
differentiate unreasonably between such
products intheirprimary andintheir
processed forms;Asimilar provision hasbeentaken into
account inthereduction oftariffs ontropical
products during theUruguay Round. See
under Section 2.1above (Agreement on
Agriculture).
(b)refrain from introducing, orincreasing the
incidence of,customs duties ornon-tariff
import barriers onproducts currently or
potentially ofparticular export interest toless-
developed contracting parties; and
(c)(i)refrain from imposing newfiscal
measures, and(ii)inanyadjustments offiscal
policy accord highpriority tothereduction
andelimination offiscal measures,WT/COMTD/W/35
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which would hamper, orwhich hamper,
significantly thegrowth ofconsumption of
primary products, inraworprocessed form,
wholly ormainly produced intheterritories of
less-developed contracting parties, andwhich
areapplied specifically tothose products.
2.(a)Whenever itisconsidered thateffect is
notbeing given toanyoftheprovisions of
subparagraph (a),(b)or(c)ofparagraph 1,
thematter shallbereported tothe
CONTRACTING PARTIES either bythe
contracting party notsogiving effect tothe
relevant provisions orbyanyother interested
contracting party.Norequest forconsultations hasbeenmade
either byaMember giving effect tothe
provisions ofsub-paragraphs a,bandcof
paragraph 1orbyanyother interested
Member.
(b)(i)TheCONTRACTING PARTIES shall,
ifrequested sotodobyanyinterested
contracting party, andwithout prejudice to
anybilateral consultations thatmaybe
undertaken, consult withthecontracting party
concerned andallinterested contracting parties
withrespect tothematter withaviewto
reaching solutions satisfactory toall
contracting parties concerned inorder to
further theobjectives setforth in
Article XXXVI. Inthecourse ofthese
consultations, thereasons given incases
where effect wasnotbeing given tothe
provisions ofsubparagraph (a),(b)or(c)of
paragraph 1shallbeexamined.
(ii)Astheimplementation oftheprovisions of
subparagraph (a),(b)or(c)ofparagraph 1by
individual contracting parties mayinsome
cases bemore readily achieved where action is
taken jointly withother developed contracting
parties, suchconsultation might, where
appropriate, bedirected towards thisend.
(iii)Theconsultations bythe
CONTRACTING PARTIES might also,in
appropriate cases, bedirected towards
agreement onjointaction designed tofurther
theobjectives ofthisAgreement asenvisaged
inparagraph 1ofArticle XXV.WT/COMTD/W/35
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3.Thedeveloped contracting parties shall:
(a)Make every effort, incases where a
government directly orindirectly determines
theresale price ofproducts wholly ormainly
produced intheterritories ofless-developed
contracting parties, tomaintain trade margins
atequitable levels.
(b)Giveactive consideration totheadoption
ofother measures designed toprovide greater
scope forthedevelopment ofimports from
less-developed contracting parties and
collaborate inappropriate international action
tothisend.
(c)Have special regard tothetrade interests
ofless-developed contracting parties when
considering theapplication ofother measures
permitted under thisAgreement tomeet
particular problems andexplore all
possibilities ofconstructive remedies before
applying suchmeasures where theywould
affect essential interests ofthose contracting
parties.Thisprovision hasbeenincorporated intothe
Anti-dumping Agreement.
4.Less-developed contracting parties agree to
takeappropriate action inimplementation of
theprovisions ofPartIVforthebenefit ofthe
trade ofother less-developed contracting
parties, insofarassuchaction isconsistent
withtheirindividual present andfuture
development, financial andtrade needs taking
intoaccount pasttrade developments aswell
asthetrade interests ofless-developed
contracting parties asawhole.Nomeasure hasbeennotified byadeveloping
country Member since theWTO Agreement
entered intoforce. However, oneagreement,
namely theProtocol forTrade Negotiations
among Developing Countries which was
drawn upin1971 isstillinforce. Another
global agreement namely theGSTP negotiated
inUNCTAD isstillinforce. Inaddition,
announcements ofnewpreferential market
access measures infavour ofleast-developed
countries were made byanumber of
developing countries attheHigh-Level
Meeting onIntegrated Initiatives forLeast-
Developed Countries 'Trade Development in
October 1997. Seeunder Section 7.1above.
5.Intheimplementation ofthecommitments
setforth inparagraph 1to4eachcontracting
party shallafford toanyother interested
contracting party orcontracting parties full
andprompt opportunity forconsultations
under thenormal procedures ofthis
Agreement withrespect toanymatter or
difficulty which mayarise.WT/COMTD/W/35
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8.4Article XXXVIII
1.Thecontracting parties shallcollaborate
jointly, withtheframework ofthisAgreement
andelsewhere, asappropriate, tofurther the
objectives setforth inArticle XXXVI.
2.Inparticular, theCONTRACTING
PARTIES shall:
(a)where appropriate, takeaction, including
action through international arrangements, to
provide improved andacceptable conditions of
access toworld markets forprimary products
ofparticular interest toless-developed
contracting parties andtodevise measures
designed tostabilize andimprove conditions
ofworld markets inthese products including
measures designed toattain stable, equitable
andremunerative prices forexports ofsuch
products;TheCommittee onTrade andDevelopment
provides aforum forMembers tocollaborate
jointly inthisregard.
Thismatter hasgenerally beenconsidered in
UNCTAD from theinception.
(b)seekappropriate collaboration in
matters oftrade anddevelopment policy with
theUnited Nations anditsorgans and
agencies, including anyinstitutions thatmay
becreated onthebasis ofrecommendations by
theUnited Nations Conference onTrade and
Development;
(c)collaborate inanalysing thedevelopment
plans andpolicies ofindividual less-developed
contracting parties andinexamining trade and
aidrelationships withaviewtodevising
concrete measures topromote thedevelopment
ofexport potential andtofacilitate access to
export markets fortheproducts ofthe
industries thusdeveloped and,inthis
connection, seekappropriate collaboration
withgovernments andinternational
organizations, andinparticular with
organizations having competence inrelation to
financial assistance foreconomic development,
insystematic studies oftrade andaid
relationships inindividual less-developed
contracting parties aimed atobtaining aclear
analysis ofexport potential, market prospects
andanyfurther action thatmayberequired;Seecomment under Section 8.3above
(Article XXXVI:7).
TheHigh-Level Meeting onIntegrated
Initiatives forLeast-Developed Countries '
Trade Development wasinpartaresponse to
thisprovision.WT/COMTD/W/35
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(d)keepunder continuous review the
development ofworld trade withspecial
reference totherateofgrowth ofthetrade of
less-developed contracting parties andmake
suchrecommendations tocontracting parties
asmay, inthecircumstances, bedeemed
appropriate;TheCommittee onTrade andDevelopment
conducts regular reviews oftheparticipation
ofdeveloping countries inworld trade.
(e)collaborate inseeking feasible methods to
expand trade forthepurpose ofeconomic
development, through international
harmonization andadjustment ofnational
policies andregulations, through technical and
commercial standards affecting production,
transportation andmarketing, andthrough
export promotion bytheestablishment of
facilities fortheincreased flowoftrade
information andthedevelopment ofmarket
research; and
(f)establish suchinstitutional arrangements as
maybenecessary tofurther theobjectives set
forth inArticle XXXVI andtogiveeffect to
theprovision ofthisPart.Thework oftheWTO/UNCTAD International
Trade Centre isoriented towards meeting the
objectives ofthisprovision.WT/COMTD/W/35
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V.
9.1979 DECISION OFTHE CONTRACTING PARTIES ONDIFFERENTIAL AND
MORE FAVOURABLE TREATMENT, RECIPROCITY AND FULLER
PARTICIPATION OFDEVELOPING COUNTRIES: "Enabling Clause"
1.Notwithstanding theprovisions ofArticle I
oftheGeneral Agreement, contracting parties
mayaccord differential andmore favourable
treatment todeveloping countries10,without
according suchtreatment toother contracting
parties.
2.Theprovisions ofparagraph 1apply tothe
following:11
(a)Preferential tariff treatment accorded by
developed contracting parties toproducts
originating indeveloping countries in
accordance withtheGeneralized System of
Preferences.12Alldeveloped country Members are
maintaining GSPschemes.
(b)Differential andmore favourable treatment
withrespect totheprovisions oftheGeneral
Agreement concerning non-tariff measures
governed bytheprovisions ofinstruments
multilaterally negotiated under theauspices of
theGATT.Measures fordifferential andmore favourable
treatment arecontained inalloftheWTO
Agreements covering non-tariff measures.
(c)Regional orglobal arrangements entered
intoamongst less-developed contracting
parties forthemutual reduction orelimination
oftariffs and,inaccordance withcriteria or
conditions which maybeprescribed bythe
CONTRACTING PARTIES, forthemutual
reduction orelimination ofnon-tariff
measures, onproducts imported from one
another.14regional andglobal agreements havebeen
notified bythedeveloping countries under the
Enabling Clause (WT/COMTD/W/27/Rev.1).
10Thewords "developing countries" asused inthistextaretobeunderstood torefer alsotodeveloping
territories.
11Itwould remain open fortheCONTRACTING PARTIES toconsider onanadhocbasis under theGATT
provisions forjoint action anyproposals fordifferential andmore favourable treatment notfalling within the
scope ofthisparagraph.
12AsdescribedintheDecisionoftheCONTRACTINGPARTIESof25June1971,relatingtotheestablishment
of"generalized, non-reciprocal andnon-discriminatory preferences beneficial tothedeveloping countries."WT/COMTD/W/35
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(d)Special treatment ontheleastdeveloped
among thedeveloping countries inthecontext
ofanygeneral orspecific measures infavour
ofdeveloping countries.Allindustrialized countries 'GSPschemes
contain special provisions forleast-developed
countries. Tendeveloping country Members
havemade announcements ofspecial
preferences forleast-developed countries at
theHigh-Level Meeting.
3.Anydifferential andmore favourable
treatment provided under theclause:
(a)shallbedesigned tofacilitate andpromote
thetrade ofdeveloping countries andnotto
raisebarriers toorcreate undue difficulties
forthetrade ofanyother contracting parties;
(b)shallnotconstitute animpediment tothe
reduction orelimination oftariffs andother
restrictions totrade onamost-favoured-nation
basis;
(c)shallinthecaseofsuchtreatment
accorded bydeveloped contracting parties to
developing countries bedesigned and,if
necessary, modified, torespond positively to
thedevelopment, financial andtrade needs of
developing countries.
4.Anycontracting party taking action to
introduce anarrangement pursuant to
paragraphs 1,2and3above orsubsequently
taking action tointroduce modification or
withdrawal ofthedifferential andmore
favourable treatment soprovided shall:13
(a)notify theCONTRACTING PARTIES and
furnish them withalltheinformation theymay
deem appropriate relating tosuchaction;Since theWTO Agreement entered intoforce,
EU,Japan, NewZealand, Norway,
Switzerland andUShavemade notifications
under thisprovision (WT/COMTD/N/-
series).
13Nothing inthese provisions shall affect therights ofcontracting parties under theGeneral Agreement.WT/COMTD/W/35
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(b)afford adequate opportunity forprompt
consultations attherequest ofanyinterested
contracting party withrespect toanydifficulty
ormatter thatmayarise. The
CONTRACTING PARTIES shall, ifrequested
todosobysuchcontracting party, consult
withallcontracting parties concerned with
respect tothematter withaviewtoreaching
solutions satisfactory toallsuchcontracting
parties.
5.Thedeveloped countries donotexpect
reciprocity forcommitments made bythem in
trade negotiations toreduce orremove tariffs
andother barriers tothetrade ofdeveloping
countries, i.e.,thedeveloped countries donot
expect thedeveloping countries, inthecourse
oftrade negotiations, tomake contributions
which areinconsistent withtheirindividual
development, financial andtrade needs.
Developed contracting parties shalltherefore
notseek, neither shallless-developed
contracting parties berequired tomake,
concessions thatareinconsistent withthe
latter'sdevelopment, financial andtrade
needs.
6.Having regard tothespecial economic
difficulties andtheparticular development,
financial andtrade needs oftheleast-
developed countries, thedeveloped countries
shallexercise theutmost restraint inseeking
anyconcessions orcontributions for
commitments made bythem toreduce or
remove tariffs andother barriers tothetrade
ofsuchcountries, andtheleast-developed
countries shallnotbeexpected tomake
concessions orcontributions thatare
inconsistent withtherecognition oftheir
particular situation andproblems.
7.Theconcessions andcontributions made
andtheobligations assumed bydeveloped and
less-developed contracting parties under the
provisions oftheGeneral Agreement should
promote thebasic objectives ofthe
Agreement, including those embodied intheSeethecomments made under Section 8.3,
(Article XXXVI. paras. 3,4,5and8).WT/COMTD/W/35
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Preamble andinArticle XXXVI. Less-
developed contracting parties expect thattheir
capacity tomake contributions ornegotiated
concessions ortakeother mutually agreed
action under theprovisions andprocedures of
theGeneral Agreement would improve with
theprogressive development oftheir
economies andimprovement intheirtrade
situation andtheywould accordingly expect to
participate more fullyintheframework of
rights andobligations under theGeneral
Agreement.
8.Particular account shallbetaken ofthe
serious difficulty oftheleast-developed
countries inmaking concessions and
contributions inviewoftheirspecial economic
situation andtheirdevelopment, financial and
trade needs.
9.Thecontracting parties willcollaborate in
arrangements forreview oftheoperation of
these provisions, bearing inmind theneedfor
individual andjointefforts bycontracting
parties tomeetthedevelopment needs of
developing countries andtheobjectives ofthe
General Agreement.TheCommittee onTrade andDevelopment
reviews regularly theimplementation ofWTO
provisions relating todifferential andmore
favourable treatment ofdeveloping countries.
__________