WT/COMTD/SE/W/22/Rev.10  
 
6 October 2021  
(21-7526) Page: 1/50 
Committee on Trade and Development  
Dedicated Session    
 
WORK PROGRAMME ON SMALL ECONOMIES  
COMPILATION PAPER PREPARED BY THE SECRETARIAT  
Revision  
I. INTRODUCTION  ................................ ................................ ................................ ...... 4 
II. MANDATE AND LEGAL FRAMEWORK  ................................ ................................ ....... 4 
A. PARAGRAPH 35 OF THE DOHA MINISTERIAL DECLARATION –  
WT/MIN(01)/DEC/1 (20  NOVEMBER 2001)  ................................ ................................ .... 4 
B. PARAGRAPH 2 OF THE WORK PROGRAMME ON SMALL ECONOMIES  
FRAMEWORK AND PROCEDURES – WT/L/447 (1 MARCH 2002)  ................................ ...... 4 
C. PARAGRAPH 1.D OF THE 1 AUGUST 2004 GENERAL COUNCIL DECISION - 
WT/L/579  ................................ ................................ ................................ .......................  5 
D. PARAGRAPH 41 OF THE HONG KONG MINISTERIAL DECLARATION - 
WT/MIN(05)/DEC (18  DECE MBER 2005)  ................................ ................................ ........  5 
D.1 REFERENCES TO SMALL ECONOMIES IN PARAGRAPH 21 OF THE SECTION ON 
NAMA IN THE HONG KONG MINISTERIAL DECLARATION  ................................ ................  6 
D.2 REFERENCES TO SMALL ECONOMIES IN THE SERVICES – ANNEX C OF THE 
HONG  KONG MINISTERIAL DECLARATION  ................................ ................................ ...... 6 
III. MINISTERIAL DECISIONS  ................................ ................................ ......................  6 
A. WORK PROGRAMME ON SMALL ECONOMIES, WT/L/844 (17 DECEMBER 2011)  ..... 6 
B. WORK PROGRAMME ON SMALL ECONOMIES, WT/L/908 (7 DECEMBER   2013)  ...... 6 
C. WORK PROGRAMME ON SMALL ECONOMIES, WT/L/975 (19 DECEMBER 2015)  ..... 7 
D. WORK PROGRAMME ON SMALL ECONOMIES, WT/L/1030 (13 DECEMBER 2017)  ... 7 
IV. COMMITTEE ON TRADE AND DEVELOPMENT DEDICATED SESSION ON SMALL 
ECONOMIES  ................................ ................................ ................................ ....................  8 
A. REPORT TO THE GENERAL COUNCIL ON MEASURES TO ASSIST SMALL  
ECONOMIES IN MEETING  THEIR OBLIGATIONS UNDER THE AGREEMENTS ON 
SPS MEASURES, TBT AND TRIPS - WT/COMTD/SE/5 (3 OCTOBER 2006)  ........................  8 
B.  SVE GROUP PROPOSAL TO ADVANCE WORK ON "CHALLENGES SMALL  
ECONOMIES EXPERIENCE IN THEIR EFFORTS TO REDUCE TRADE COSTS, PARTICULARLY 
IN THE AREA OF TRADE FACILITATION" - WT/COMTD/SE/W/33/REV.1 (7 NOVEMBER 
2016)  ................................ ................................ ................................ ..............................  9 
C. OUTCOMES FROM DISCUSSIONS ON THE "CHALLENGES AND OPPORTUNITIES 
EXPERIENCED BY SMALL ECONOMIES WHEN LINKING INTO GLOBAL VALUE CHAINS  
IN TRADE IN GOODS AND SERVICES " - WT/COMTD/SE/W/35 (2 MAY 2017)  ..............  10 
D. OUTCOME OF THE WORK ON "CHALLENGES SMALL ECONOMIES EXPERIENCE IN 
THEIR EFFORTS TO REDUCE TRADE COSTS, PARTICULARLY IN THE AREA OF TRADE 
FACILITATION " - WT/COMTD/SE/W/38 (15 APRIL 2019)  ................................ ...........  14 WT/COMTD/SE/W/22/Rev.10  
 
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  E.  INVESTMENT ATTRACTION: SMALL ECONOMIES' OPPORTUNITIES AND 
CHALLENGES – PROPOSAL BY THE GROUP OF SMALL, VULNERABLE ECONOMIES  – 
WT/COMTD/SE/W/40 (10 FEBRUARY 2020)  ................................ ................................  17 
F. ECONOMIC AND TRADE IMPACT OF NATURAL DISASTERS ON SMALL  
ECONOMIES – PROPOSAL BY THE GROUP OF SMALL, VULNERABLE  ECONOMIES – 
WT/COMTD/SE/W/41 (5 MAY 2021)  ................................ ................................ ............  18 
V. COMMITTEE ON SUBSIDIES AND COUNTERVAILING MEASURES  ..........................  19 
A. REPORT (2010) OF THE COMMITTEE ON SUBSIDIES AND COUNTERVAILING 
MEASURES - G/L/937 (29 OCTOBER 2010)  ................................ ................................ ... 19 
B. DECISION OF THE GENERAL COUNCIL OF 27 JULY 2007 - WT/L/691 
(31 JULY  2007) BASED ON THE DRAFT DECISION OF THE COMMITTEE ON  
SUBSIDIES AND COUNTERVAILING M EASURES OF 13  JULY 2007 (G/SCM/120)  ..........  20 
VI. TRADE NEGOTIATIONS COMMITTEE  ................................ ................................ ..... 26 
A. SMALL, VULNERABLE ECONOMIES (SVES) CONTRIBUTION FOR THE POST  
BALI WORK PROGRAMME – JOB/TNC/49 (17 JUNE 2015)  ................................ ............  26 
VII.  COMMITTEE ON AGRICULTURE - SPECIAL SESSION  ................................ .............  28 
A. REVISED DRAFT MODALITIES FOR AGRICULTURE - TN/AG/W/4/REV.4 
(6 DECEMBER 2008)  ................................ ................................ ................................ ...... 28 
B. LATEST SVE SUBMISSIONS  ................................ ................................ ..................  30 
1. Flexibilities in the Agricultural Modalities on the Pillars of Domestic Support  
and Export Competition, Communication by the G roup of Small and Vulnerable 
Economies (SVEs) - JOB/AG/16 (24 March 2011)  ................................ ........................  30 
2. The Special Safeguard Mechanism (SSM) Modalities to A pply to Small  
Vulnerable Economies (SVEs), Communication by the Group of Small Vulnerable 
Economies (SVEs), the African, Caribbean and Pacific (ACP) Group, and the African 
Group - JOB/AG/17 (24 March 2011)  ................................ ................................ ...........  31 
VIII.  NEGOTIATING GROUP ON MARKET ACCESS FOR NON -AGRICULTURAL  
PRODUCTS  ................................ ................................ ................................ ....................  37 
A. FOURTH REVISION OF DRAFT MODALITIES FOR NON -AGRICULTURAL  
MARKET ACCESS – TN/MA/W/103/REV.3 (6 DECEMBER 2008)  ................................ .... 37 
B. LATEST SVE SUBMISSIONS  ................................ ................................ ..................  38 
1. Contr ibution to the Special and Differential Treatment and Technical  
Assistance Provisions on the "Horizontal Mechanism", Communication from  
El Salvador on behalf of Small Vulnerable, Economies - JOB/MA/89 (19 April 2011)  ... 38 
2. Questions to the co -sponsors of the proposal of "Ministerial Decision on 
procedures for the facilitation of solutions to Non -Tariff Barriers", Communication  
from the group of small vulnerable economies – JOB/MA/55 (3  November 2010)  ....... 38 
3. Questions to the co -sponsors of the proposal of "Negotiating Text on  
Liberalizing Trade in Remanufactured Goods", Communication from the group  
of small vulnerable economies – JOB/MA/56 (3 November 2010)  ................................  39 
IX. COUNCIL FOR TRADE IN SERVICES SPECIAL SESSION  ................................ .........  40 
A. ELEMENTS REQUIRED FOR THE COMPLETION OF THE SERVICES  
NEGOTIATIONS, REPORT BY THE CHAIRMAN - TN/S/34 (28 JULY  2008)  .....................  40 
X. WORKING PARTY ON DOMESTIC REGULATION  ................................ .....................  41 
A. SERVICES - TRADE -RELATED CONCERNS OF SMALL, VULNERABLE  
ECONOMIES IN THE WORKING PARTY ON DOMESTIC REGULATION -  
JOB(06)/66/REV.2 (10 JULY 2006)  ................................ ................................ ..............  41 
XI. NEGOTIATING GROUP ON RULES  ................................ ................................ .........  43 WT/COMTD/SE/W/2 2/Rev.10  
 
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  A. TEXTUAL PROPOSAL FOR ADDITIONAL FLEXIBILITIES FOR SMALL AND 
VULNERABLE ECONOMIES UNDER ARTICLE III OF THE PROPOSED DRAFT  
CHAIR'S TEXT ON FISHERIES SUBSIDIES – TN/RL/GEN/162/REV.1  
(20 APRIL 2011)  ................................ ................................ ................................ ...........  43 
B. TEXTUAL PROPOSAL FOR ADDITIONAL FLEXIBILITIES FOR SMALL AND 
VULNERABLE ECONOMIES UNDER ARTICLE III OF THE PROPOSED DRAFT CHAIR'S  
TEXT ON FISHERIES SUBSIDIES – TN/RL/GEN/162 (8 JANUARY 2010)  .......................  46 
C. DRAFTING PROPOSAL ON ISSUES RELATING TO ARTICLE III.4 ("SPECIAL AND 
DIFFERENTIAL TREATMENT OF DEVELOPING COUNTRY MEMBERS" ) OF  
THE FISHERIES SUBSIDIES ANNEX TO THE SCM AGREEMENT AS PROPOSED BY THE 
CHAIR IN TN/RL/W/213 - TN/RL/GEN/158 (22  MAY 2008)  ................................ ........  46 
XII. COMMITTEE ON TRADE AND ENVIRONMENT  ................................ ........................  47 
A. VIEWS OF THE SMALL VULNERABLE ECONOMIES ON THE NEGOTIATIONS OF 
PARAGRAPH 31(III) OF THE DOHA MINISTERIAL DECLARATION, COMMUNICATION 
FROM THE SMALL, VULNERABLE ECONOMIES - JOB/TE/18 (1  APRIL 2011)  .................  47 
XIII.  NEGOTIATING GROUP ON TRADE FACILITATION  ................................ .................  48 
A. DRAFT CONSOLIDATED NEGOTIATING TEXT - TN/TF/W/165/REV.5 
(5 NOVEMBER  2010)  ................................ ................................ ................................ ..... 48 
XIV.  AID FOR TRADE TASK FORCE  ................................ ................................ ................  48 
A. AID FOR TRADE - WT/AFT/W/18 (15 JUNE 2006)  ................................ ...............  48 
 
 WT/COMTD/SE/W/22/Rev.10  
 
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  I. INTRODUCTION  
 Paragraph 41 of the Hong Kong Ministerial Declaration1 instructs the Committee on Trade and 
Development (CTD) in Dedicated Session to monitor progress of the small economies' proposals in 
the Doha Development Agenda (DDA) negotiati ng groups and other WTO bodies.  At its Fifteenth 
Dedic ated Session on 20 July 2006, Members requested the Secretariat to prepare a note based on 
an initial paper prepared by a group of small economies.2 The paper was to help the CTD in Dedicated 
Session to monitor work currently underway in the WTO and  in the DDA negotiating groups.  Its aim 
was to track proposals made by the proponents of small economies as well as relevant WTO reports 
and draft texts circulated to date by the various Chairs of the DDA negotiating groups.3  
 
 The paper was expanded in docume nt WT/COMTD/SE/W/22 to reflect the state of play of all 
the small economies' issues discussed in WTO bodies and negotiating groups since the launch of the 
Work Progra mme on Small Economies in 2001.  This paper was revised several times over the years, 
in order to provide updates regarding the state of play. The present revision , the tenth , builds on 
the prevision revision – which was issued in October 2019 – by incorporat ing references to relevant 
documents circulated since that time . Like its predecessors, this tenth  revision has been prepared 
under the Secretariat's own responsibility and does not prejudice the right of any Member to raise 
other concerns or views related to the Work Programme on Small Economies.   
 
II. MANDATE AND LEGAL FRAMEWORK  
A. PARAGRAPH 35 OF THE DOHA MINISTERIAL DECLARATION – WT/MIN(01)/DEC/1 
(20 NOVEMBER  2001)  
We agree to a work programme, under the auspices of the General Council, to examine issues 
relating to  the trade of small economies. The objective of this work is to fra me responses to 
the trade -related issues identified for the fuller integration of small, vulnerable economies into 
the multilateral trading system, and not to create a sub -category of WTO Members. The 
General Council shall review the work programme and make recommendations for action to 
the Fifth Session of the Ministerial Conference.  
 
B. PARAGRAPH 2 OF THE WORK PROGRAMME ON SMALL ECONOMIES FRAMEWORK AND 
PROCEDURES – WT/L/447 (1 M ARCH  2002)  
In pursuance of this mandate, the Work Programme s hall be undertaken in accordance with 
the follo wing framework and procedures:  
 
(a) The Work Programme shall remain under the overall responsibility of the General 
Council.  
 
(b) The General Council shall have the Work Programme on Small Economies (WPSE) as  a 
standing item on its agenda.  
 
(c) The objective of this work is to frame responses to the trade -related issues identified 
for the fuller integration of small, vulnerable economies into the multilateral trading 
system.  
 
(d) The General Council shall inst ruct the CTD to have a programme of work on small 
economies which will be conducted in dedicated sessions of the CTD.   
 
(e) The CTD shall report regularly to the General Council on the progress of work in the 
dedicated sessions.  
 
(f) The Chairperson of the  regular CTD shall also be the Chair for the dedicated sessions of 
the CTD.  
 
 
1 WT/MIN(05)/DEC.  
2 WT/COMTD/SE/W/21/Rev.1.  
3 Note that the numbering of footnotes in this document may not correspond to the numbering of 
footnotes of the original documents included herein.  WT/COMTD/SE/W/2 2/Rev.10  
 
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  (g) The dedicated sessions of the CTD shall have an agreed calendar of meetings to 
complete the work under its mandate.  
 
(h) The CTD will hold informal meetings as necessary with a view to assisting the formal 
process in the dedicated sessions of the CTD.  
 
(i) In accordance with the outcome of the programme of work in the CTD, the General 
Council shall, as appropriate, direct relevant subsidiary bodies to frame responses to 
the tra de-related issues identified by the CTD with a view to making recommendations 
for action to the Fifth Session of the Ministe rial Conference as mandated. This does not 
prejudice the right of Members to submit for consideration proposals relating to the 
concerns of small economies to the relevant WTO bodies.  
 
(j) As and when necessary, the dedicated sessions of the CTD will work in collaboration 
with relevant subsidiary bodies.  
 
(k) Members are urged to make their own contributions to the work of the C TD under its 
programme of work.  The General Council shall instruct the WTO Secretariat to provide 
relevant information and factual analysis, inter alia,  
 
(i) on the impact of WTO rules o n Small Economies;  
 
(ii) on the constraints faced by Small Economies as well as their shortfalls in 
institutional and administrative capacities, including in the area of human 
resources;  
 
(iii) on the effects of Trade Liberalization on Small Economies.  
 
The CTD will also request information and analysis from other agencies and bodies that 
carry out work on small economies.  
 
C. PARAGRAPH 1.D OF THE 1 AUGUST 2004 GENERAL COUNCIL DECISION - WT/L/579  
The trade -related issues identified for the ful ler integration of small, vulnerable economies 
into the multilateral trading system, should also be addressed, without creating a sub -category 
of Members, as part of a work programme, as mandated in paragraph 35 of the Doha 
Ministerial Declaration.  
 
D. PARAGRAPH 41 OF THE HONG KONG MINISTERIAL DECLARATION - 
WT/MIN(05)/DEC (18  DECEMBER  2005)  
We reaffirm our commitment to the Work Programme on Small Economies and urge Members 
to adopt specific measures that would facilitate the fuller integration of small, vu lnerable 
economies into the multilateral trading system, without creating  a sub -category of WTO 
Members.  We take note of the report of the Committee on Trade and Development in 
Dedicated Session on the Work Programme on Small Economies to the General Counc il and 
agree to the recommendations on future work.  We instruct the Committee on Trade and 
Development, under the overall responsibility of the General Council, to continue the work in 
the Dedicated Session and to monitor progress of the small economies' p roposals in the 
negotiating and other bodies, with the aim of providing responses to the trade -related issues 
of small economies as soon as possible but no later than 31 December 2006.  We instruct the 
General Council to report on progress and action taken,  together with any further 
recommendations as appropriate, to our next Session.  
 WT/COMTD/SE/W/22/Rev.10  
 
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  D.1 REFERENCES TO SMALL ECONOMIES IN PARAGRAPH 21 OF THE SECTION ON NAMA 
IN THE HONG KONG MINISTERIAL DECLARATION   
PARAGRAPH 21  
 
We note the concerns raised by small, vulnerable economies, and instruct the Negotiating 
Group to establish ways to provide flexibilities for these Members without creating a 
sub-category of WTO Members.  
 
D.2 REFERENCES TO SMALL ECONOMIES IN THE SERVICES – ANNEX C OF THE 
HONG  KONG MINISTERIAL DECLARATION  
PARAGRAPH 8  
 
Due consideration shall be given to proposals on trade -related concerns of small economies.  
 
III. MINISTERIAL DECISIONS  
A. WORK PROGRAMME ON SMALL ECONOMIES, WT/L/844 (17 DECEMBER 2011)  
The Ministerial Conference decide s as follows:  
 
We reaffirm our commitment to the Work Programme on Small Economies and take note of 
all the work conducted to date and duly reflected in document WT/COMTD/SE/W/22/Re v.6 
and its previous revisions.  We instruct the CTD to continue its work in  Dedicated Sessions 
under the overall responsibility of the General Council. Furthermore, it shall consider in further 
detail the proposals contained in the various submissions that have been received to date, 
examine any additional proposals that Members might wish to submit and, where possible, 
and within its mandate, make recommendations to the General Counc il, on any of these 
proposals. We instruct the General Council to direct relevant subsidiary bodies to frame 
responses to the trade -related issues id entified by the CTD with a view to making 
recommendations for action and instruct the WTO Secretariat to provide relevant information 
and factual analysis for discussion among Members in the CTD Dedicated Session, inter alia , 
in the areas identified in ite m (k) of paragraph 2 of the Work Programme on Small Economies, 
and on the identification and effects of non -tariff measures on Small Economies.  We instruct 
the CTD in Dedicated Session to continue monitoring the progress of the SVE proposals in 
WTO bodies and negotiating groups with the aim of providing responses, as soon as possible, 
to the trade -related issues identified for the fuller integration of small, vulnerable economies 
in an appropriate manner in th e multilateral trading system. We instruct the G eneral Council 
to report on progress and action taken, together with any further recommendations as 
appropriate, to our next Session.  
 
B. WORK PROGRAMME ON SMALL ECONOMIES, WT/L/908 (7 DECEMBER 2013)  
 The Ministerial Conference decides  as follows:  
 
We reaf firm our commitment to the Work Programme on Small Economies and take note of 
all the work conducted to date. In particular we note that document 
WT/COMTD/SE/W/22/Rev.6 and its previous revisions reflect the work of the Committee on 
Trade and Development ( CTD) up to the Eighth Ministerial. We take note of the work carried 
out since 2011 including that on the effects of non -tariff measures on Small Economies and 
instruct the CTD to continue its work in Dedicated Sessions under the overall responsibility of 
the General Council.  
 
Furthermore, we instruct the Dedicated Session to consider in further detail the proposals 
contained in the various submissions that have been received to date, to examine any 
additional proposals that Members might wish to submit and, where possible, and within its 
mandate, to make recommendations to the General Council on any of these proposals.  
 
We instruct the General Council to direct relevant subsidiary bodies to frame responses to the 
trade -related issues identified by  the CTD with a view to making recommendations for action. 
We instruct the WTO Secretariat to provide relevant information and factual analysis for WT/COMTD/SE/W/2 2/Rev.10  
 
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  discussion among Members in the CTD's Dedicated Session, inter alia , in the areas identified 
in item (k) of paragraph 2 of the Work Programme on Small Economies and, in particular, the 
challenges and opportunities experienced by small economies when linking into global value 
chains in trade in goods and services.  
 
C. WORK PROGRAMME ON SMALL ECONOMIES, WT/L/975 (19 DECEMBER 2015)  
 The Ministerial Conference decides as follows:  
 
We reaffirm our commitment to the Work Programme on Small Economies and take note of 
all the work conducted to date. In particular, we note that document 
WT/COMTD/SE/W/22/Rev.7 an d its previous revisions reflect the work of the Dedicated 
Session up to the Tenth Ministerial Conference. We take note of the work carried out since 
2013, including that on the challenges and opportunities faced by small economies when 
linking into global  value chains in trade in goods and services, and instruct the CTD to continue 
its work in Dedicated Session under the overall responsibility of the General  Council.  
Furthermore, we instruct the Dedicated Session to consider in further detail the various 
submissions that have been received to date, examine any additional proposals that Members 
might wish to submit and, where possible, and within its mandate, make recommendations to 
the General Council on any of these proposals. The General Council shall di rect relevant 
subsidiary bodies to frame responses to the trade -related issues identified by the CTD with a 
view to making recommendations for action. We instruct the WTO Secretariat to provide 
relevant information and factual analysis for discussion among  Members in the CTD's 
Dedicated Session, inter alia , in the areas identified in item (k) of paragraph 2 of the Work 
Programme on Small Economies and, in particular, to continue its work on the challenges and 
opportunities experienced by small economies whe n linking into global value chains in trade 
in goods and services. We request the Secretariat to also conduct work on the challenges 
small economies experience in their efforts to reduce trade costs, particularly in the area of 
trade facilitation.  
The CTD in Dedicated Session shall continue monitoring the progress of the small economy 
proposals in WTO bodies and in negotiating groups with the aim of providing responses, as 
soon as possible, to the trade -related issues identified for the fuller integration o f SVEs in the 
multilateral trading system.  
 
D. WORK PROGRAMME ON SMALL ECONOMIES , WT/L/ 1030  (13 DECEMBER 201 7) 
 The Ministerial Conference decides as follows:  
  
We reaffirm our commitment to the Work Programme on Small Economies and take note of 
all the wo rk conducted to date. In particular, we note that document 
WT/COMTD/SE/W/22/Rev.8 and its previous revisions reflect the work of the Dedicated 
Session up to the Eleventh Ministerial Conference. We take note of the work carried out since 
2015, including tha t on the challenges and opportunities faced by small economies when 
linking into global value chains in trade in goods and services, and instruct the CTD to continue 
its work in Dedicated Session under the overall responsibility of the General Council.  
 
Furthermore, we instruct the Dedicated Session to consider in further detail the various 
submissions that have been received to date, examine any additional proposals that Members 
might wish to submit and, where possible, and within its mandate, make recom mendations to 
the General Council on any of these proposals. The General Council shall direct relevant 
subsidiary bodies to frame responses to the trade -related issues identified by the CTD with a 
view to making recommendations for action. We instruct the WTO Secretariat to provide 
relevant information and factual analysis for discussion among Members in the CTD's 
Dedicated Session, inter alia, in the areas identified in item (k) of paragraph 2 of the Work 
Programme on Small Economies and, in particular, to  continue its work on the challenges 
small economies experience in their efforts to reduce trade costs, particularly in the area of 
trade facilitation.  
 
The CTD in Dedicated Session shall continue monitoring the progress of the small economy 
proposals in WTO bodies and in negotiating groups with the aim of providing responses, as WT/COMTD/SE/W/22/Rev.10  
 
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  soon as possible, to the trade -related issues identified for the fuller integration of SVEs in the 
multilateral trading system.  
  
IV. COMMITTEE ON TRADE AND DEVELOPMENT DEDICATED SESSION ON SMALL 
ECONOMIES4  
A. REPORT TO THE GENERAL COUNCIL ON MEASURES TO ASSIST SMALL ECONOMIES 
IN MEETING THEIR OBLIGATIONS UNDER THE AGREEMENTS ON SPS MEASURES, TBT AND 
TRIPS - WT/COMTD/SE/5 (3 OCTOBER 2006)  
1. In paragraph 35 of the Doha Ministerial Declaration5, Ministers established a work 
programme under the auspices of the General Council to examine issues relating to the trade 
of small economies with the objective of framing responses to the trade -related issues 
identified for the fu ller integration of small, vulnerable economies into the multilateral trading 
system, without creating a sub -category of WTO Members.  
 
2. On 1 March 2002, the General Council took note of a framework and procedures for the 
conduct of the Wo rk Programme on  Small Economies6 and instructed the Committee on Trade 
and Development (CTD) to conduct this programme of work in Dedicated Sessions and to 
report regularly on the progress of it s work to the General Council. This mandate was 
reaffirmed by the 1  August 2 004 Decision of the General Council.7 At the Hong Kong Ministerial 
Conference, Ministers reaffirmed their commitment to this Work Programme and urged 
Members to adopt specific measures that would facilitate the fuller integration of small 
economies into t he multilateral trading system.8  
 
3. In discussions in the CTD in Dedicated Session, the proponents of small economies 
identified, as one of the trade -related issues affecting the fuller integration of their economies 
into the multilateral trading system , their limited administrative capacities to implement 
complex rules and procedures and, in particular, to fulfil their obligations under the 
Agreements on Technical Barriers to Trade (TBT), on Sanitary and Phytosanitary Measures 
(SPS) and on Trade -Related  Aspects of Intellectual Property Rights (TRIPS).  
 
4. In documents WT/COMTD/SE/W/15, WT/COMTD/SE/W/16 and WT/COMTD/SE/W/18, 
the proponents suggested that they be allowed to designate regional bodies to assist them in 
the implementation of their obligation s in the SPS, TBT and TRIPS Agreements and sought 
explicit approval from Members to do so.  The pr oposals underwent two revisions9 to take into 
account the concerns raised by other Members in the Dedicated Session and at informal and/or 
formal meetings of the SPS and TBT Committees and the TRIPS Council.  
 
5. Reports from the Chairpersons of these bodies were sent to the Chairperson of  the CTD 
in Dedicated Session. The proponents of small economies also clarified that it was not their 
intention to modify, am end or alter the balance of rights and obligations contained in the SPS, 
TBT or TRIPS Agreements and that they, as Members, remain ultimately responsible for 
adhering to the obligations they contain.  
 
6. On the basis of the discussions that have been held  on this matter, the CTD in Dedicated 
Session considers that the use by small, vulnerable economies of regional bodies to provide 
technical support and assistance as necessary could help them implement their obligations in 
the areas of SPS, TBT and TRIPS, and thereby facilitate their fuller integration into the 
multilateral trading system.  Accordingly, and in pursuance of the provisions of paragraph  41 
of the Hong Kong Ministerial Declaration, the CTD in Dedicated Session recommends that the 
General Council  agrees that small economies are allowed to use such regional bodies to assist 
 
4 The Committee on Trade and Development in Dedicated Session has issued the following reports to 
the General Council in regard to its Work Programme on Small Economies:  WT/COMTD/SE/1, 
WT/COMTD/SE/4, WT /COMTD/SE/6, WT/COMTD/SE/7 and WT/COMTD/SE/7/Add.1; WT/COMTD/SE/8, 
WT/COMTD/SE/9, and WT/COMTD/SE/10  
5 WT/MIN(01)/DEC/1.  
6 WT/L/447.  
7 WT/L/579.  
8 WT/MIN(05)/DEC, paragraph 41.  
9 The latest versions have been circulated as WT/COMTD/SE/W/15/Rev.2, WT/COMTD/ SE/W/16/Rev.2 
and WT/COMTD/SE/W/18/Rev.2.  WT/COMTD/SE/W/2 2/Rev.10  
 
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  them in the implementation of their obligations under the  SPS, TBT and TRIPS Agreements.  
It also recommends that Members and the WTO, within its competence, when providing 
techn ical and financial assistance to support small, vulnerable economies in fulfilling their 
rights and obligations under the agreements concerned, shall consider the advantages of 
providing that assistance to the r egional body where such exists.  It is underst ood that 
individual Members benefiting from these recommendations will continue to be legally 
responsible and accountable for their individual notifications and other obli gations under these 
Agreements.  This recommendation is without prejudice both to the identification of other 
specific measures in due course to facilitate the fuller integration of small economies into the 
multilateral trading system and to the use of regional bodies as described in this report by 
other developing country Members.  
 
B.  SVE GROUP PROPOSAL TO ADVANCE WORK ON "CHALLENGES SMALL ECONOMIES 
EXPERIENCE IN THEIR EFFORTS TO REDUCE TRADE COSTS, PARTICULARLY IN THE AREA 
OF TRADE FACILITATION"  - WT/COMTD/SE/W/33/REV.1 (7 NOVEMBER 2016)  
1  Background  
 
1.1.  Ministers adopted a decisio n contained in document WT/MIN(15)/40 - WT/L/975 on the Work 
Programme on Small Economies on the WTO Tenth Ministerial Conference in Nairobi. In such 
decision, Ministers instructed the Committee on Trade and Development (CTD) to continue its work 
in the De dicated Session on global value chains in trade in goods and services and requested the 
Secretariat to also conduct work on the challenges small economies experience in their efforts to 
reduce trade costs, particularly in the area of trade facilitation.  
1.2.  On the topic of reducing trade costs, the WTO Secretariat issued a joint publication with OECD 
entitled: "Aid for Trade at a Glance 2015"10 for the Global Review of Aid for Trade. This publication 
provides a solid basis for discussions within the CTD  Dedicated Session on reducing trade costs.  
2  Proposal  
 
2.1  Objective  
 
2.1.  The objective of this work is to identify and discuss the specific challenges experienced by 
small, vulnerable economies in their efforts to reduce trade costs, and then analyze best practices 
and policy approaches for reducing the negative impacts of these challenges in their productive 
capacity and export competitiveness.  
 
2.2  Background Statistics  
 
2.2.  In order to facilitate a focused discussion, SVEs propose that th e Secretariat disaggregates the 
relevant statistical information from the "Aid for Trade at a Glance 2015" study, in particular, the 
statistics on important sources of trade costs in goods and services most commonly identified by 
small economies in their s urvey responses, impacts from policy actions taken to reduce trade costs, 
and types of policy actions that have achieved the most positive results in reducing trade costs for 
goods and services.  
 
2.3  Meetings  
 
2.3.  SVEs propose that the discussion of th e topic of "challenges small economies experience in 
their efforts to reduce trade costs, particularly in the area of trade facilitation", be taken in 
two sessions to be held  in the first semester of 2017.  
 
2.4.  The first session will focus on the most important sources of merchandise and services trade 
costs reported by small, vulnerable economies. The aim of the session is to identify the specific 
challenges faced by these Members and have an in-depth conversati on on the particularities. In this 
session, substantive discussions will follow the elements from the results of the Aid for Trade at a 
Glance 2015 publication.  
 
 
10 OECD/WTO (2015), Aid for Trade at a Glance 2015: Reducing Trade Costs for Inclusive, Sustainable  
Growth, OECD Publishing, Paris. http://dx.doi.org/10.1787/aid_glance -2015-en. WT/COMTD/SE/W/22/Rev.10  
 
- 10 - 
 
  2.5.  The second session will focus on the actions and policies associated with the most posi tive 
results in reducing trade costs for goods and services. The aim of this session is to discuss best 
practices and policy approaches for addressing the challenges identified in the previous session.  
 
2.4  Participation  
 
2.6.  To facilitate an active p articipation of small economies representatives as speakers for the 
sessions, SVEs request that the WTO Secretariat finance the costs of the participation and travel of 
two representatives per session.  
 
C. OUTCOMES FROM DISCUSSIONS ON THE "CHALLENGES AND OPPORTUNITIES 
EXPERIENCED BY SMALL ECONOMIES WHEN LINKING INTO GLOBAL VALUE CHAINS IN 
TRADE IN GOODS AND SERVICES " - WT/COMTD/SE/W/35 (2 MAY 2017)  
1  Introduction   
 
At the Ninth Ministerial Conference in Bali, Ministers reaffirmed their commitment to the Work 
Programme on Small Economies and instructed the WTO Secretariat to provide relevant information 
and factual analysis for discussion among Members in the CTD 's Dedicated Session on "The 
challenges and opportunities experienced by small economies when linking into global value chains 
in trade in goods and services ".  
At the Tenth Ministerial Conference in Nairobi, Kenya, Ministers instructed the WTO Secretariat to 
continue its work on this subject.  
In accordance with this mandate, the Secretariat prepared the Background Note contained in 
document WT/COMTD/SE/W/31. The Committee of Trade and Development agreed to discuss the 
background document in different sessions that would deal with the different sectors discussed in 
the paper, mainly: agrifood , seafood, textiles and apparel in the goods value chains; and Tourism, 
IT, business process outsourcing and trade logistics in the services value chains.  
Five meetings wer e organized throughout years 2015 and 2016, to discuss these topics. 
International organizations, such as UNCTAD and ITC, participated in the discussions. SVE 
representatives also made several presentations on the topics and substantial discussions and 
exchange of experiences took place during the meetings.  
As a result of these fruitful discussions, the SVEs where able to identify specific challenges they face 
when linking into Global Value Chains in Trade in Goods and Services, and where able to gather 
some recommendations on how to mitigate such challenges. The following is a document that 
presents a summary of the outcomes of the discussions. With this basis, the group will continue its 
work and present proposals or support existing initiatives in the di fferent committees in WTO, in 
order to facilitate the implementation of some of the recommendations contained in the document.  
2  Outcomes of discussions  
 
In this section, the SVEs group presents the results of the discussions during the CTD Dedicated 
Session on Small Economies, emphasizing the challenges that SVEs face when linking into global 
value chains, and making some recommendations that the group sees as necessary to overcome 
such challenges.  
2.1  Agrifood  and Seafood value chains  
 
Challenges  
 
• The implementation of measures for the control, inspection and approval procedures may 
disrupt trade more than necessary.  
• Small Economies or small islands with unique bio -diversity systems are now being affected 
by invasive alien species and the spread of pests.  
• One of the main challenges of joining a value chain is to meet the required sustainability 
standards. This is particularly when there has been a proliferation of these standards with 
their increasing number  resulting in a degree of confusion amongst exporters.  WT/COMTD/SE/W/2 2/Rev.10  
 
- 11 - 
 
  • There are many challenges in identifying the gaps towards integration and moving up the 
value chains.  
• The main obstacles for SVE exporters were the increasing number of public and private 
standards.  
• The lack of institutional capacity and technical know -how in small economies to integrate in 
GVCs.  
• The difficulty in accessing funds for investment and technology in GVCs. The underdeveloped 
and inappropriate technology for product development and packaging.  
• External fluctuations in supply and demand.  
• Poor Research and Development capacity.  
• Disorganized production chains -i.e. increase in fragmentation of production.  
• Lack of Transparency on NTMs.  
• Access to transportation.  
• Low economies of scale.  
• Lack of competitiveness.  
 
Recommendations  
 
• In developing SPS measures, governments should ensure that SPS measures are 
non-discriminatory and based on scientific risk assessment to ensure that the measure is 
not more trade restrictive than necessary, and they should be transparent.  
• In implementing the Trade Facilitation Agreement, Members should facilitate the control, 
inspection and approval procedures, so that they may be undertaken without delay. The 
information should be limited to what is necessary and the fees should reflect th e actual 
costs of the services provided.  
• There are measures to cut costs in the agricultural area, such as streamlining and simplifying 
regulations, by implementing a risk -based approach with inspections at the borders.  
• The coordination has to be improve d between SPS agencies and customs officials.  
• Strengthen capacity building programmes for SVEs, with an increased focus on the use of 
non-tariff measures.  
• Long-term investment is needed to control plant pests and animal diseases such as avian 
influenza, f oot and mouth disease and fruit fly pests.  
• There should be a focus on increasing the institutional capacity of countries by international 
and regional organizations, bilateral donors and development banks. Partnership with 
relevant institutions such as th e ITC and UNIDO to improve standards and conformity is also 
important.  
• Harmonization of NTMs at a regional level is advisable in order to facilitate trade among 
actors.  
• Consideration of harmonization of standards in relation to products of export interest.  
• More focus shall be given to work on international trade and invasive alien species, which is 
a critical area of work, especially for small economies and small islands with unique 
bio-diversity systems.  
• Funding assistance for hard infrastructure  that improves transportation and logistics in small 
economies.  
• Better coordination between suppliers at the national level in SVEs (farm to market).  
2.2  Textiles and Apparel value chains  
 
Challenges  
 
• Most of the foreign investment to SVEs was attracted by labour -intensive activities and low 
wages. When these wages increased over a period of time because sectors sought to add 
more value, foreign investors would relocate.  
• The industry is capital intensive and this makes it difficult for vertical integrati on, since the 
production is concentrated in a few countries, given that not all countries are capable of 
making significant investments.  WT/COMTD/SE/W/22/Rev.10  
 
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  • Working conditions are often overlooked by companies trying to be competitive by reducing 
costs.  
• Challenges of prefer ence erosion and relocation of investors to cheaper markets.  
Recommendations  
 
• In spite of relocation due to increases in costs related to labour, the best way to stay 
competitive is by enhancing productivity, updating equipment, improving the business 
environment and upgrading product quality.  
• In reference to the challenges related to vertical integration, it is recommended to shift to 
other high value -added sectors, rather than trying to integrate in the upward value chain.  
• From a development perspective, some recommended that SVEs should dive rsify away from 
the assembly stage, by moving up in the "smiley curve" to the left towards purchasing and 
research and design, or to the right, towards distribution and marketing. Case stories 
showed that some SVEs were successful in trying to diversify to  the finishing stages of 
clothing production such as washing and painting and aspects of logistics operations. Some 
SVEs have been able to enter into niche markets by diversifying their production in design, 
such as traditional customs and carnival clothes .  
• In terms of regional integration, small companies should partner with other companies at a 
national or regional level.  
• Attention should be paid to the development of partnerships along the value chain, either 
by partnering with major buyers in the targ et markets or with multinationals established in 
the domestic market.  
2.3  Tourism Value Chains  
 
Challenges  
 
The following challenges were identified in the Secretariat 's report and by presenters:  
 
• Low labour skills and limited training opportunities.  
• Complicated or difficult regulatory business environment.  
• Problems with access to finance.  
• Poor or inadequate airport or port capacity and infrastructure.  
• The inability to meet international hospitality standards.  
• The lack of dialogue with authorities.  
• Lack o f skills in the private sector.  
• Accessibility.  
 
The following additional challenges were identified by Member States:  
 
• Small population base and small local markets.  
• Lack of competitiveness . 
• High transportation costs and limited connectivity.  
• Low levels of critical mass and limited economies of scale.  
• Economic and currency fluctuations.  
• Rising input prices.  
• Distortion effects of government taxation and other regulations.  
• Limited domestic capital for investment.  
• High costs of infrastructure and serv ices. 
• Complex land tenure systems.  
• Other socio -economic considerations such as economic volatility and epidemics and even 
terrorism.  
• Frequent natural disasters and specific challenges posed by climate change.  
• Lack of ecommerce policy, infrastructure and sk ill. 
• "A disconnect" between trade and tourism. Poor institutional links between the ministries of 
trade and ministries of tourism.  
 
Recommendations  
 
• FDI to help upgrade the size and quality of infrastructure.  WT/COMTD/SE/W/2 2/Rev.10  
 
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  • Conservation of the natural resources.  
• An enga ged and active private sector through tourism associations or working groups.  
• Harnessing IT technology, ecommerce and social media to allow internet -based marketing 
and online reservation systems.  
• Putting in place necessary ecommerce infrastructure and app ropriate regulatory 
frameworks.  
• Deepening or expanding tourism products as well as diversifying to new markets.  
• Strengthening the specific institutions dealing with the tourism sector.  
• Invest in staff training.  
• A transparent and predictable FDI regime to a ttract investors to develop tourism 
infrastructure.  
• Upgrading of tour operator 's services from being local guides and excursion operators to 
becoming local or national organizers for incoming agents.  
 
Possible Multilateral Solutions  
 
• A transparent and predictable FDI regime to attract investors to develop tourism 
infrastructure.  
• More statistics and better data including undertaking tourism satellite accounts to measure 
export diversification, employment creation, rural development and the participation of 
micro - and medium sized enterprises.  
• Strong and coordinated action towards developing tourism export strategies and sustainable 
tourism programmes.  
• Proper coordination of tourism policy and aid for trade across different ministries and  
implementing agencies.  
• Establishing secure access to markets.  
 
2.4  Trade Logistics and Business Processing Outsourcing Services  
 
Challenges  
 
Regarding logistics services, some challenges were identified such as:  
 
•  The volume of goods in transit due to connectivity issues:   
o This is a difficult area for many small economies which lack the necessary economies 
of scale.  
o Other factors involved: geography, port efficiency and trade facilitation.  
• Freight costs due to:  
o Distances.  
o Low shipping volumes.  
• The size of the containers:  
o Container ships becoming larger this implies more investments to acquire additional 
equipment and port infrastructure in order to service such ships.  
• Difficulties to link into Global Value Chains:  
o The presence of transnational corporations which account for 80% of global trade.  
o Challenges to compete against them due to their sophisticated and high technology.  
o Difficulties in meeting standards or rules concerning quantity, quality, speed of 
delivery and intellectual property protection.  
o Lack of basic infrastructure and limited connection between the production chain 
which causes inefficiencies, high costs and loss in competitiveness.  
• Vulnerability to external factors:  
o Loss of market access due  to external factors such as trade measures, preference 
erosion or non -diversified markets.  
• Absence or scattered legal framework over various institutions.  
• Lack of external investors and little investment from the private sector.  
• Shortage of human resource s at a technical level.  
• Lack of Information Communication Technologies (ICT) services to support the business 
sector.  
• Lack of financial institutions and access to capital flows.  
• Inefficient customs systems.  
 WT/COMTD/SE/W/22/Rev.10  
 
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Recommendations  
 
• SVEs should concentrate their efforts to be better integrated into global value chains.  
• Provide incentives and legal security for investors to attract FDI.  
• Business promotion - develop business process outsourcing industry (call centers and back -
office processing of transactions).  
• Develop highly skilled human resources.  
• Use technological advances and transparent business processes to promote and increase 
global distribution.  
• Upgrade educational and skills levels.  
• Offer diverse financial instruments.  
• Privatizing port operations could help lower transportation costs and enhance connectivity.  
• Diversify industries with strategies that could involve the creation of special economic zones.  
• Modernization of custom in order to speed up export transactions.  
• Private, public co -operation.  
• Increase large -scale production through partnerships and proper logistics.   
• Elaborating plans to improve potential of export products.  
• Increase regular market data to optimize product marketing.  
• Establishment of policies encouraging decentraliz ation to avoid the concentration of 
development of the sector only in the cities.  
• Promote innovation.  
D. OUTCOME  OF THE WORK ON "CHALLENGES SMALL ECONOMIES EXPERIENCE IN 
THEIR EFFORTS TO REDUCE TRADE COSTS, PARTICULARLY IN THE AREA OF TRADE 
FACILITATION " - WT/COMTD/SE/W/38 (15 APRIL 2019)  
1  Background  
 
1.1.  At the Eleventh Ministerial Conference in Buenos Aires, Argentina, Ministers adopted a 
Ministerial Decision on the Work Programme on Small Economies (WT/MIN(17)/63)  reaffirming their 
commitment to the Work Programme and instructing the Secretariat to provide relevant information 
and factual analysis for discussion among Members in the  CTD's Dedicated Session, in particular to 
continue its work on the challenges small  economies experience in their efforts to reduce trade costs, 
particularly in the area of trade facilitation.  
1.2.  In response to this mandate, the SVEs group presented a proposal on the work on "Challenges 
small economies experience in their efforts to reduce  trade costs, particularly in the area of trade 
facilitation " (WT/COMTD/SE/W/33/Rev.1) which was agreed by consensus by the CTD Dedicated 
Session on Small Economies. Based on this proposal, the Secretariat would issue a background 
document that disaggregat ed relevant statistical information from the "Aid for Trade at a Glance  
2015" study, in particular, statistics on important sources of trade costs in goods and services most 
commonly identified by small economies in their survey responses. The note would a lso consider 
impacts from policy actions taken to reduce trade costs, and types of policy actions that have 
achieved the most positive results in reducing trade costs for goods and services.  
1.3.  After the publication of the background note, an introductory me eting was held, where the  
Secretariat had the opportunity to present the documen t and Members  had an opportunity to 
comment on it. Following this initial session, two more sessions were held, one focused on the most 
important sources of merchandise and ser vices trade costs and challen ges SVE Members  faced in 
order to reduce them. The third session focused on the actions and policies associated with the most 
positive results in reducing trade costs for goods and services.  WT/COMTD/SE/W/2 2/Rev.10  
 
- 15 - 
 
  2  Topics of discussion  
 
2.1  Trade cos ts in goods  
 
2.1.  The background note of the Secretariat identified the following as the main challenges 
(mentioned in descending order of importance) for SVEs in the goods side: transport infrastructure, 
NTMs, border  procedures, tariffs, fees and other charges and access to trade finance.  
2.2.  SVEs are devoid of raw materials and therefore have to import all production inputs which 
increases the final cost of production in view of the cost involved in importing these inpu ts. It was 
mentioned that one way of addressing this issue from a trade perspective was to substantially review 
the rules of origin requirements to make them more flexible for small economies, not only at a 
multilateral level, but in the context of bilater al and regional agreements.  
2.3.  With regards to commodities, it is a matter of concern that massive subsidies provided by big, 
competitive economies to some of their commodities are having a devastating impact on small 
economies. Outcomes in negotiations on domestic support in agricultur e could help SVEs maintain 
their competitiveness.  
2.4.  As regards to the regional export markets of SVEs, the main challenges were: transport 
infrastructure and border procedures, closely followed by NTMs.  
2.2 Transport Infrastructure and costs  
 
2.5.  Transport is o ne of the highest costs in SVE countries. In fact, for Small Island Developing 
States  costs are higher than landlocked developing countries and LDCs.  
2.6.  Some of the reasons for these high costs where  the distance from SVEs to their main 
export/import markets ; high costs imposed by main freight companies; economies of scale; and 
deficient port infrastructure.  
Some of the solutions mentioned were:  
• Better port infrastructure . 
• Better port efficiency . 
• Port privatization in the exporting country . 
• Better connectiv ity, which fosters competition among carriers which may result in a reduction 
of freight prices.  
 
The following policy solutions were mentioned:  
• Include transport connectivity in planning and trade models: for this purpose, improved data 
on maritime tran sport networks in necessary.  
• Opportunities from modern network technologies: cargo and vessel tracking, and other 
digital developments can help enhance maritime connectivity.  
• Linkages between national, regional and intercontinental shipping services.  
• Plan port investments jointly to accommodate the vessel that will serve the route.  
• Investments in the form of PPPs  for the improvement of seaport infrastructure and 
intermodal connections . 
• A Member  mentioned that in some circumstances, government support to help lower freight 
costs might be necessary, but in this sense , flexibility might be needed for SVE countries 
since the SCM may consider such support as a prohibited subsidy.   
 
2.3 Border Measures and Procedures  
 
2.7.  During the sessions, SVEs  highlighted specific border procedures that they considered to be 
the most burdensome regarding costs:  
• Delays in examining cargo . 
• Lack of inter -agency coordination . 
• Multiple submissions of applications at the border . WT/COMTD/SE/W/22/Rev.10  
 
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  • Multiple payments . 
 
2.8.  Many SVEs highligh ted the importance of the implementation of TFA measures  to reduce these 
challenges, but many also recognized that further measures would be needed for SVE Members to 
fully respond to the high costs of border procedures.   
2.9.  One of the possibilities was Custo ms Modernization, that could include organization and 
restructuring, legal reforms, and in particular automation and business process re -engineering with 
tools like:  
• Digital manifests (real time online submission of cargo manifest) . 
• Digital customs declar ation (real -time online submission of customs declaration, online 
assessment of taxes payable) . 
• Online payments . 
• Paperless processing: digitally signed customs declaration, commercial invoice, bill of 
lading, delivery order and other documents.  
• Implementa tion of national single window . 
• Establishment of central cargo examination centre . 
• Implementation of container tracking system and automated gate . 
 
2.10.   It was also mentioned that many of these tools represented a considerable investment, and 
that SVEs would ne ed financial and technical support to implement many of them.  
2.11.   Regional integration was identified as an important tool for reducing trade costs and allow 
better economies of scale. In the area of trade facilitation, some of the possible solutions were: 
coordinated customs administration, use of regional certification centres, fostering harmonization or 
equivalence of standards, and postal services agreements.  
2.4 Trade costs  in Services  
 
2.12.   The background note of the Secretariat identified the following main drivers of high costs in 
many SVEs, in the area of services: network infrastructure, transport infrastructure. Non -recognition 
of professional qualification and the restrictions on moveme nt of natural persons, poor regulatory 
environments, low level of skills in the services sector, restrictions on commercial presence and 
tariffs on product inputs.  
2.13.   In the case of services trade in regional markets, the first driver of high costs was the 
non-recognition of professional qualifications, restrictions on movement of natural persons, poor 
network and transport infrastructure, restrictions on commercial presence and inefficient 
government regulations.  
2.14.   It is becoming increasingly difficult for small states to compete on the goods export market 
given their smaller size, low production capacity and connectivity issues. That is why many small 
states have tried to diversify their economies into trade in services.  
2.15.   Various reports have p ointed out that there is a direct correlation between efficient business 
services and enhanced competitiveness on the goods trade. Countries that undertake enhanced 
liberalization commitments experience a reduction transaction costs and hence higher produc tivity.  
2.16.   During the meetings, a Member suggested  a services waiver for SVEs where preferences to 
services and service suppliers from small economies could be granted.  
2.5 Technology and Trade Costs   
 
2.17.   During discussions, the importance of technology in reduc ing trade costs was highlighted. 
Many ICT  solutions targeted different aspects of border measures and procedures, payments, costs 
in services, but in order to make use of these tools, there are several elements that have to be in 
place such as:  
• Updating n ational legislation: SVEs are yet to reach the fifth generation of regulations, many 
are only in the second or third generation . WT/COMTD/SE/W/2 2/Rev.10  
 
- 17 - 
 
  • Investing in digital skills and life -learning training .  
• Appropriate ICT infrastructure . 
• Payment solutions . 
 
2.18.   During discussions , it was evident that Aid for Trade and  other types of cooperation to the 
ICT sector remains limited. There is also a need for greater country -specific analysis of the digital 
dimension in order to better understand the AFT needs.  
2.6 Non-Trade Measures  
 
2.19.   NTMs comprise a significant source of trade costs, and SVEs identified the difficulties they 
experienced  with these barriers. Usually, small economies are more specialized in products that are 
significantly exposed to NTMs, especially SPS measures. For exa mple, fats, oils and vegetable 
products, and foodstuffs. According to the Secretariat 's background note, foodstuffs is the product 
group with the second highest number of TBT notifications  and the highest number of TBT significant 
concerns. In addition to these difficulties, many SVEs have poor access to information and an 
impossibility to comply with product standards and certification procedures due to their high costs.  
2.20.   Most of the compan ies in SVE countrie s are MSMEs,  and they face serious difficulties when 
trying to adapt to constant changes in private standards, TBT and other NTMs.  
2.7 Natural Disasters and their impact in trade  
 
2.21.   Exogenous sources of trade costs were also discussed, in particular the effects of natural 
disasters in trade. SVEs are vulnerable to natural disasters, in particular due to their geographical 
location, dependency on agriculture, among others. Damages to infrastructure due to natural 
disasters, in particular on roads and port infrastructure were recognized as increasing significantly 
the costs of trade.  
2.22.   As the WTO Secretariat is currently working on the topic of natural disasters and their effect 
on trade, the group will seek further in -depth discussions on this issue.  
E.  INVESTMENT ATTRACTION: SMALL ECONOMIES' OPPORTUNITIES AND CHALLENGES  
– PROPOSAL BY THE GROUP OF SMALL, VULNERABLE ECONOMIES  – WT/COMTD/SE/W/ 40 
(10 FEBRUARY 2020)11  
1. Introduction  
1.1 In the past, the Work Programme  discussed the topic of integration into global value chains and 
reducing trade cost. It became clear that investment in particular sectors, (i.e. infrastructure, 
international certifications and standards, research and development, technology, transportat ion 
infrastructure, innovation, etc.) can enable small economies to participate into global value chains 
and reduce trade costs. It is important to explore further this kind of issues, in order small economies 
to take benefit from the opportunities derived  from investment. Some questions arise, like: Which 
are the key sectors to attract investments? Which are the challenges SVEs face relating the attraction  
of investments? How can they be overcome?  
2. Objective  
2.1 To explore the role of investments in the enhancement of small economies ' competitiveness and 
the reduction of trade costs, as well as best practices on attracting investments with positive and 
long-lasting impact on development.  
 
11 A discussion on the opportunities and challenges for small economies in attracting investments took 
place on the basis of this proposal  at the CTD's 40th Dedicated Session on Small Economies on 2 November 2020. 
The minutes of this meeting are contained in document WT/COMTD/SE/M/40. At the meeting, the Dedicated 
Session also discussed the impact of the COVID -19 outbreak on the trade of small economies.  WT/COMTD/SE/W/22/Rev.10  
 
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  3. Proposed activity  
3.1 A short session, where the WTO Secretariat and other relevant international organizations 
present the insights and experiences resulted from their work in the proposed topics. The proposed 
format is a seminar back to back to the CTD Dedicated Session to be held in March 2020 .  
4. Topics to be addressed  
4.1 Importance of investment for small economies.  
a. Relevance of investment attraction to the participation of small economies into global value 
chains.  
b. Key sectors for investment attraction and how to channel it to contribute to exp ort 
diversification and the development of local innovation.  
c. Relevance of investment attraction to the reduction of trade costs.  
d. Regulatory and policy frameworks: challenges for a long -lasting impact.  
e. Mobilizing investments to finance climate change miti gation and adaptation.  
 
4.2 Challenges faced by the small economies in the attraction of investments.  
4.3 Success stories.  
5. Relevant experts  
5.1 Besides the WTO Secretariat, experts from the United Nations Conference on Trade and 
Development and the Int ernational Trade Centre or other relevant international organizations, could 
share some results of their work in these areas.  
6. Cost 
6.1 There should be no expected additional costs to the session that will be convened in March by 
the Chair, regardless of the format chosen. If it is a seminar or a dedicated session, it should be 
organized back to back with the March meeting. The participati on of other international organizations 
in Geneva should be done through existing collaboration envisaged between international 
organizations.  
 
F. ECONOMIC AND TRADE IMPACT OF NATURAL DISASTERS ON SMALL ECONOMIES  – 
PROPOSAL BY THE GROUP OF SMALL, VULNERABL E ECONOMIES – WT/COMTD/SE/W/41 
(5 MAY 2021)12 
1. Introduction  
1.1 Small and Vulnerable Economies continue to face several challenges which hinder  their ability to 
be fully integrated in the multilateral trade system.  SVEs are particularly vulnerable to nat ural 
disasters and have greater difficulties to recover and experience long lasting negative effects after 
disasters strike their territories. In addition, climate change is aggravating and causing more 
frequent extreme weather events and natural disasters . According to a recent study from WTO, even 
though all countries may suffer economic losses from natural disasters, when expressed relative to 
national population or GDP, the impacts of disasters on smaller economies reflect higher values.13 It 
was evident from this study that natural disasters have important economic and trade impacts. It is 
also clear that climate change requires global responses that can only occur as a result of 
international cooperation. Therefore, it is imperative to co nsider policy options on how to respond 
to, and recover from natural disasters; build resilience; and adopt climate change mitigation 
measures.  
 
12 A discussion on the economic and trade impact of natural disasters on small economies took place on 
the basis of this proposal at the CTD's 4 1st Dedicated Session on Small Economies on 6 July 2021 . The minutes 
of this meeting are contained in document WT /COMTD/SE/M/4 1. 
13 Natural Disasters and Trade Study 1, World Trade Organization 2019.  WT/COMTD/SE/W/2 2/Rev.10  
 
- 19 - 
 
  2. Objective  
2.1 The objective of this session is to have an in -depth conversation on what are the main economi c 
and trade impacts suffered by SVEs as a consequence of natural disasters; what trade policy 
responses under existing WTO Rules can SVEs adopt to recover from natural disasters and build 
resilience; and how, and in which areas, SVEs could benefit from int ernational cooperation to adopt 
climate change mitigation measures.  
3. Proposed Activity  
3.1 A Dedicated Session on Small Economies under the Work Programme on Small Economies in 
May-June 2021.  
4. Topics to be addressed  
4.1 Impact of natural disasters on trade of SVEs, with respect to:  
• Infrastructure resilience (ports, roads, telecommunications).  
• Sectoral Production (e.g. Agriculture, fisheries, agro -processing, manufacturing and 
services).  
• Trade performance (goods and ser vices/ volume and value) including challenges in mitigating 
the negative trade effects.  
4.2 Assessing vulnerability and risk factors of SVEs with respect to natural disasters.  
4.3 Adopting economic recovery measures consistent with the WTO Agreement.  
4.4 How to strengthen resilience in SVEs and explore policy options in respect to preventative 
measures.  
4.5 How, and in which areas, the SVEs could benefit from international cooperation to adopt climate 
change mitigation measures, like the use and transfer  of new technologies and renewable energies, 
change in consumer behavior, etc.   
5. Relevant Experts  
5.1 Besides the WTO Secretariat, experts from the United Nations Conference on Trade and 
Development and the International Trade Centre or other relevant i nternational organizations such 
as FAO, could share some results of their work in these areas.  
6. Costs  
6.1 There should be no expected additional costs to the session that will be convened in May -June 
by the Chair. The participation of other internation al organizations in Geneva should be done through 
existing collaboration envisaged between international organizations.  
V. COMMITTEE ON SUBSIDIES AND COUNTERVAILING MEASURES  
A. REPORT (2010) OF THE COMMITTEE ON SUBSIDIES AND COUNTERVAILING 
MEASURES - G/L/ 937 (29 OCTOBER 2010)  
1. A General Council Decision adopted on 27 July 2007 (WT/L/691) lays down procedures 
whereby during the period 2008 -2012 the Committee will continue to grant extensions under 
Article 27.4 of the Agreement of the transition period for the el imination of export subsidies. 
Among other things, this Decision states, in paragraph 1(f), that Members benefiting from 
such extensions shall submit an action plan as an integral part of their annual  updating 
notification in 2010.  At its regular meeting of 28 October 2010, the Committee conducted a 
review of the transparency and standstill requirements contained in this Decision as well as 
the action plans submitted by the Members concerned and agreed to continue for calendar WT/COMTD/SE/W/22/Rev.10  
 
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  year 2011 the extensions of the transition period that the Committee had previously granted 
for calendar years 2003 -2010.14  
 
B. DECISION OF THE GENERAL COUNCIL OF 27 JULY 2007 - WT/L/691 (31  JULY  2007) 
BASED ON THE DRAFT DECISION OF THE COMMITTEE ON SUBSIDIES AND 
COUNTERVAILING MEASURES OF 13  JULY 2007 (G/SCM/120)  
ARTICLE 27.4 OF THE AGREEMENT ON SUBSIDIES AND  
COUNTERVAILING MEASURES  
 
Decision of 27 July 2007  
 
The General Council,  
 
 Having regard  to Articles IV:1 and 2 and IX:1 of the Marrakesh Agreement Establ ishing the 
World Trade Organization ("WTO Agreement") and Article 27.4 of the Agreement on Subsidies  and 
Countervailing Measures  ("SCM Agreement ");  
 
 Recalling  that the Members of the Committee on Subsidies and Countervailing Measures 
("SCM Committee" or "Committee"), as directed by the Ministerial Conference15 have granted, 
pursuant to the procedures set forth in document G/SCM/39, extensions pursuant to Article 27.4 of 
the SCM Agreement  of the transition period under Article 27.2(b) of the SCM Agreement  for the 
elimination of export subsidies, in respect of certain programmes of certain developing country 
Members;   
 
 Noting  the proposals submitted by those developing country Members to extend the 
procedures contained in G/SCM/39;16  
 
 Noting  the terms of paragraph 5 of this Decision;  
 
 Recognizing  the economic, financial and development needs, as well as the capacity and 
administrative constraints, of those Members in implementing their commitments pursuant to the 
SCM Agreement  in respect of the eliminatio n of export subsidies;   
 
 On the basis of  the commitment of those Members to eliminate the export subsidies in 
question not later than 31 December 2015, with no requests for extension beyond those foreseen 
pursuant to this Decision;   
 
 Decides  to adopt the following procedures.   
 
PROCEDURES FOR CONTINUATION OF EXTENSIONS PURSUANT  
TO ARTICLE 27.4 OF THE SCM AGREEMENT OF THE TRANSITION  
PERIOD UNDER ARTICLE 27.2(b) OF THE SCM AGREEMENT  
FOR CERTAIN DEVELOPING COUNTRY MEMBERS  
 
 The SCM  Committee shall follow the procedures set forth below in respect of the continuation 
of extensions pursuant to Article 27.4 of the SCM Agreement  ("SCM Article 27.4") of the transition 
period under Article 27.2(b) of the SCM Agreement  for certain programme s, identified in the Annex.17  
 
14 The Committee decisions continuing the extensions of the transition period for calendar year 2011 
may be found in the following documents: An tigua & Barbuda (G/SCM/50/ Add.8 and G/SCM/ 51/Add.8); 
Barbados (G/SCM/52/Add.8 and G/SCM /56/Add.8);  Belize (G/SCM/57/Add.8 and G/SCM/59/Add.8); Costa Rica 
(G/SCM/61/Add.8 and  G/SCM /62/Add. 8); Dominica (G/SCM/63/Add.8);  Dominican Republic 
(G/SCM/64/Add.8);  El Salvador (G/SCM/65/Add.8 ); Fiji (G/SCM/66/Add.8 and G/SCM/ 67/Add.8 ); Grenada 
(G/SCM/69/Add.8 and G/SCM/ 71/Add.8); Guate mala (G/SCM/72/Add.8 and G/SCM/74/Add.8); Jamaica 
(G/SCM/75/Add.8 and G/SCM/78/Add.8); Jordan (G/SCM/79/Add.8) ; Mauritius (G/SCM/83/Add.8); Panama 
(G/SCM/84/Add. 8 and G/SCM/85/Add.8);  Papua New Guinea (G/SCM/86/Add.8);  St. Lucia (G/SCM/ 87/Add.8 
and G/SCM/89/Add.8); St.  Kitts and Nevis (G/SCM/90/Add.8);  St. Vincent and th e Grenadines 
(G/SCM/91/Add.8); and Uruguay (G/SCM/92/Add.8).  
15 Ministerial Decision on Implementation -Related Issues and Concerns, (WT/MIN(01)/17), 
paragraph  10.6.   
16 See documents G/SCM/W/535 and G/SCM/W/537 and addenda.   
17 The programmes eligible for continuations of extensions under these procedures are programme s 
providing export subsidies in the form of full or partial exemptions from import duties and internal taxes for WT/COMTD/SE/W/2 2/Rev.10  
 
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  1. Mechanism for continuation of extension  
(a) A Member that wishes to seek a continuation, for calendar year 2008, of the extension 
under SCM Article 27.4 for a programme listed in the Annex, shall submit a request to 
that e ffect to the SCM Committee no t later than 3 September 2007. The request also 
shall include a reference to the WTO document containing the corresponding updating 
notification covering calendar year 2006, which the Member shall have submitted to the 
SCM Comm ittee pursuant to 1(d) of G/SCM/39.18  
 
(b) Not later than 26 October 2007, Members of the SCM Committee shall agree to continue 
the extensions, for calendar year 2008, for programmes listed in the Annex in respect 
of which requests have been submitted pur suant to 1(a) and for which the Committee 
has verified, in its annual review conducted pursuant to G/SCM/3919, that the 
transparency and standstill requirements under G/SCM/ 39 were fulfilled during 2006.  
 
(c) As provided for in SCM Article 27.4, the conti nuation of extensions by the SCM 
Committee pursuant to these procedures shall be subject to annual reviews in the form 
of consultations between the Committee and the Members receivi ng continuations of 
extensions.  These annual reviews shall be conducted on the basis of annual updating 
notifications from the Members in qu estion, as referred to in 2(a).  The purpose of the 
annual reviews shall be to verify that the transparency and standstill requirements set 
forth in 2 and 3 are being fulfilled.   
 
(d) During t he period 2008 -2012, Members of the SCM Committee shall agree to continue 
the extensions pursuant to these procedures, subject to verification through annual 
reviews as provided for in 1(c) that the transparency and standstill requirements set 
forth i n 2 and 3 are being fulfilled.20 The "last authorized period" referred to in t he last 
sentence of SCM Article  27.4 shall not extend beyond 31 December 2013, and the final 
two-year phase -out period provided for in the last sentence of SCM Article 2 7.4 shall 
end not later than 31  December 2015.   
 
(e) A Member receiving a continuation of an extension under these procedures shall take, 
from 1 January 2008, the necessary internal steps with a view to eliminating export 
subsidies under the programme before the end of the final two -year phase -out period 
provided for in the las t sentence of SCM Article 27.4.  These steps shall include 
consultations with relevant government bodies and organisations and any necessary 
technical and/or leg al assessments.  In addition, from 1 J anuary 2008 and in  no case 
later than 31  December  2009, the Member shall notify each beneficiary under the 
programme indicating that no export subsidies within the meaning of SCM Article 3.1(a) 
will be granted or maintained beyond the end of calendar year 2015.   
 
(f) A Member receiving a continuation of an extension under these procedures shall 
provide, for transparency purposes, an action plan for eliminating export subsidies 
under the programme, as an integral part of the annual updating notification submitted 
for the annual r eview to be conducted in 2010.21 As part of this review, the SCM 
Committee shall undertake a mid -period assessment of each programme for which it 
has continued an extension under these procedures.  During this mid -period 
assessment, the SCM Committee shall take stock of the steps undertaken as of that 
 
which the SCM Committee continued extensions of the transition period under SCM Article  27.4 for calendar 
year 2007 pursuant to the procedures in G/SCM/39.  
18 At the regular meeting of the Committee in April 2007, these Members were reminded to submit their 
updating notifications by 30 June 2007.   
19 The procedures in G/SCM/39 shall cease to be effective upon completion of this 2007 annual review.  
20 This extension mechanism shall cease to be effective upon completion in 2012 of the annual review 
by the Committee to continue the extensions for calendar year 2013, such that there will be no basis for 
requests for extension beyond those foreseen in th is Decision.   
21 The action plan shall indicate how the Member intends to eliminate export subsidies under the 
programme not later than the end of the final two -year phase -out period provided for in the last sentence of 
SCM Article  27.4, including informat ion as to legislative changes, administrative amendments and/or other 
procedures as may be necessary, and whether any of these actions have been undertaken or are in the process 
of being undertaken, including how the individual beneficiaries have been noti fied pursuant to 1(e).  WT/COMTD/SE/W/22/Rev.10  
 
- 22 - 
 
  point by the notifying Member pursuant to 1(e), and shall discuss the action plan 
provided by the Member.   
 
(g) A Member receiving a continuation of an extension under these procedures may request 
the WTO Secretariat to provide technical assistance for eliminating export subsidies 
under the programme.  
 
2. Transparency  
(a) The annual updating notifications shall fol low the agreed format for subsidy notifications 
under SCM Artic le 25 (found in G/SCM/6/Rev.1).  Beginning with the updating 
notifications covering calendar year 2008, notifying Members also shall provide 
information regarding the actions they have ta ken pur suant to 1(e) and 1(f).  
 
(b) During the annual reviews by the SCM Committee referred to in 1(c), notifying Members 
can be requested by other Members to provide additional detail and clarification with a 
view to maintaining transparency in respect of the s cope, coverage and intensity of 
benefits (the "favourability") of the programmes in question22 and the form of the  
subsidies provided thereunder;  and in respect of the actions ta ken pursuant to 1(e) and 
1(f). Any information provided in response to such re quests shall be considered part of 
the notified information.   
 
(c) A Member receiving a continuation of an extension under these procedures shall ensure 
transparency in respect of the final two -year phase -out period provided for in the last 
sentence of SCM  Article 27.4 by submitting updating notifications under paragraph 2(a), 
which shall be subject to annual review by the Committee.   
 
3. Standstill  
(a) Through the end of the final two -year phase -out period provided for in SCM Article  27.4, 
the programmes f or which extensions are continued under these procedures shall not 
be modified so as to make them more favourable than they were as at 1 September 
2001, as specified in the notified information previously submitted pursuant to the 
procedures in G/SCM/39. T he continuation of an expiring programme without 
modification shall not be  deemed to violate standstill.  
 
(b) The verification of standstill in respect of the scope, coverage and intensity of benefits 
(the "favourability") of the programmes shall be based  on the notified information 
referred to in 1(c), 2(a), 2(b) and 3(a).   
 
4. Product graduation on the basis of export competitiveness  
Notwithstanding these procedures, Articles 27.5 and 27.6 shall apply in respect of export 
subsidies for which extensions a re continued pursuant to these procedures.  
 
5. Members listed in Annex VII(b) which reserved rights pursuant to the procedures in G/SCM/39  
(a) This Decision does not prejudge rights of Annex VII Members.  
 
(b) If, during the period 2008 -2015, the per capita GNP of a Member that reserved rights 
under paragraph 6(b) of G/SCM/3923 reaches the level provided for in Annex VII(b) of 
the SCM Agreement such that the Member is no longer included in Annex VII(b), that 
Member shall be able to make use of these pr ocedures as from the date at which its per 
capita GNP reaches that level and for  the remainder of that period. The effective date 
for the standstill requirement referred to in 3(a) shall be the year in which that Member's 
 
22 The scope, coverage and intensity of benefits of the programmes in question will be determined on 
the basis of the legal instruments underlying the programmes.   
23 The Members that reserved rights, and the programmes in respect of which these rights were 
reserved, are identified in documents G/SCM/N/74/BOL & G/SCM/N/74/BOL/ Suppl.1, G/SCM/N/74/HND, 
G/SCM/N/74/KEN, and G/SCM/N/74/LKA.  WT/COMTD/SE/W/2 2/Rev.10  
 
- 23 - 
 
  GNP per capita reaches the level p rovided for in Annex VII(b) such that it  is no longer 
included in Annex  VII(b).   WT/COMTD/SE/W/22/Rev.10  
 
- 24 - 
 
  ANNEX  
LIST OF PROGRAMMES ELIGIBLE FOR CONTINUATION OF EXTENSIONS  
UNDER THE PROCEDURES24, AND DOCUMENT REFERENCES FOR THE  
EXTENSION DECISIONS BY THE SCM COMMITTEE  
COVERING CALENDAR YEAR 2007  
 
 
Antigua & Barbuda  
• Fiscal Incentive Act Cap 172 (December 1975) (G/SCM/50/Add.4)  
• Free Trade and Processing Zone Act No. 12 of 1994 (G/SCM/51/Add.4)  
 
Barbados  
• Fiscal Incentive Progr amme (G/SCM/52/Add.4)  
• Export Allowance (G/SCM/53/Add.4)  
• Research & Development Allowance (G/SCM/54/Add.4)  
• International Business Incentives (G/SCM/55/Add.4)  
• Societies with Restricted Liability (G/SCM/56/Add.4)  
 
Belize  
• Fiscal Incentives Act (G/ SCM/57/Add.4)  
• Export Processing Zone Act (G/SCM/58/Add. 4)  
• Commercial Free Zone Act (G/SCM/59/Add.4)  
• Conditional Duty Exemptions Facility under Treaty of Chaguaramas (G/SCM/60/Add.4)  
 
Costa Rica  
• Free Zone Regime (G/SCM/61/Add.4)  
• Inward Processing  Regime (G/SCM/62/Add.4)  
 
Dominica  
• Fiscal Incentives Programme (G/SCM/63/Add.4)  
 
Dominican Republic  
• Law No. 8 -90 to "Promote the Establishment of New Free Z ones and Expand Existing Ones" 
(G/SCM/64/Add.4)  
 
El Salvador  
• Export Processing Zones and Marke ting Act, as amended (G/SCM/65/Add.4)  
 
Fiji 
• Short -Term Export Profit Deduction (G/SCM/66/Add.4)  
• Export Processing Factories/Export Processing Zones Scheme (G/SCM/67/Add.4)  
• The Income Tax Act (Film Making and Audio Visual Incentive Amendment Decree 20 00) 
(G/SCM/68/Add.4)  
 
 
24 Programmes for which the SCM Committee continued extensions of the transition period under SCM 
Article 27.4 for calendar year 2007 pursuant to the procedures in G/SCM/39.  It is recalled that the eligibility 
criteria in G/SCM/39 on the basis of which the original extension decisions pursuant to those procedures (for 
calendar year 2003) were taken for th e listed programmes were as follows (footnotes omitted):   
 
"Programmes eligible for extension pursuant to these procedures, and for which Members shall 
therefore grant extensions for calendar year 2003 [...], are export subsidy programmes (i) in the form of full or 
partial exemptions from import duties and internal taxes, (ii) which were in existence not later than 
1 September  2001, and (iii) which are provided by developing country Members (iv) whose share of world 
merchandise export trade was not gr eater than 0.10 %, (v) whose total Gross National Income ("GNI") for the 
year 2000 as published by the World Bank was at or below US$20 billion, (vi)  and who are otherwise eligible to 
request an extension pursuant to Article 27.4, and (vii) in respect of wh ich these procedures are followed."   
 
It is further recalled that, in respect of the above eligibility criteria, G/SCM/39 also provided that:   
 
"The criteria set forth in these procedures are solely and strictly for the purpose of determining whether 
Members are eligible to invoke these procedures.  Members of the Committee agree that these criteria have no 
precedential value or relevance, direct or indirect, for any other purpose."   WT/COMTD/SE/W/2 2/Rev.10  
 
- 25 - 
 
  Grenada  
• Fiscal Incentives Act No. 41 of 1974 (G/SCM/69/Add.4)  
• Statutory Rules and Orders No. 37 of 1999 (G/SCM/70/Add.4)  
• Qualified Enterprises Act No. 18 of 1978 (G/SCM/71/Add.4)  
 
Guatemala  
• Exemption from Company Tax, Customs Duties and Other Import Taxes for Companies under 
Special Customs Regimes (G/SCM/72/Add.4)  
• Exemption from Company Tax, Customs Duties and Other Import Taxes for the Production 
Process Relating to Activities of Managers and Users of Free Zones (G/ SCM/73/Add.4)  
• Exemption from Company Tax, Customs Duties and Other Import Taxes for the Production 
Process of Commercial and Industrial Enterprises Operating in the Industrial and Free Trade 
Zone (G/SCM/74/Add.4)  
 
Jamaica  
• Export Industry Encouragement Act (G/SCM/75/Add.4)  
• Jamaica Export Free Zone Act (G/SCM/76/Add.4)  
• Foreign Sales Corporation Act (G/SCM/77/Add.4)  
• Industrial Incentives (Factory Construction) Act (G/SCM/78/Add.4)  
 
Jordan  
• Partial or Total Exemption from Income Tax of Profits Genera ted from Exports under Law No. 
57 of 1985, as amended (G/SCM/79/Add.4)  
 
Mauritius  
• Export Enterprise Scheme (G/SCM/80/Add.4)  
• Pioneer Status Enterprise Scheme (G/SCM/81/Add.4)  
• Export Promotion (G/SCM/82/Add.4)  
• Freeport Scheme (G/SCM/83/Add.4)  
 
Panama  
• Official Industry Register (G/SCM/84/Add.4  
• Export Processing Zones (G/SCM/85/Add.4)  
 
Papua New Guinea  
• Section 45 of the Income Tax (G/SCM/86/Add.4)  
 
St. Kitts and Nevis  
• Fiscal Incentives Act No. 17 of 1974 (G/SCM/90/Add.4)  
 
St. Lucia  
• Fiscal Incentives Act No. 15 of 1974 (G/SCM/87/Add.4)  
• Free Zone Act, No. 10 of 1999 (G/SCM/88/Add.4)  
• Micro and Small Scale Business Enterprises Act, No. 19 of 1998 (G/SCM/89/Add.4)  
 
St. Vincent & Grenadines  
• Fiscal Incentives Act No. 5 of 1982, as ame nded (G/SCM/91/Add.4)  
 
Uruguay  
• Automotive Industry Export Promotion Regime (G/SCM/92/Add.4)  WT/COMTD/SE/W/22/Rev.10  
 
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  VI. TRADE NEGOTIATIONS COMMITTEE  
A. SMALL, VULNERABLE ECONOMIES (SVES) CONTRIBUTION FOR THE POST BALI 
WORK PROGRAMME – JOB/TNC/49 (17 JUNE 2015 ) 
 
Submission from  Guatemala on behalf of the SVEs Group  
The following communication is being circulated at the request of the delegation of Guatemala, on 
behalf of the SVEs Group.  
 
_______________  
 
 
INTRODUCTION  
 
Recalling  Paragraph 35 of the Doha Ministerial Declaration that provides:  
 
"We agree to a work programme, under the auspices of the General Council, to examine 
issues relating to the trade of small economies. The objective of this work is to frame 
responses to the  trade -related issues identified for the fuller integration of small, 
vulnerable economies into the multilateral trading system, and not to create a sub -
category of WTO Members. The General Council shall review the work programme and 
make recommendations f or action to the Fifth Session of the Ministerial Conference."25 
Recalling  the proposals and work undertaken up to now, contained in document 
WT/COMTD/SE/W/22/Rev.6.  
 
Stressing  the particular economic conditions of the small, vulnerable economies such as: 
exposure to natural disasters, narrow economic base, small domestic markets, high level of poverty, 
high external debt, and negligible shares in Agricultural and NAMA world tra de, minimal share of 
global fisheries catch, small participation in services global trade, low FDI, among others.  
 
Recalling  the Bali Ministerial Decision on the Work Programme on Small Economies where 
Ministers reaffirmed their commitment to the work pro gramme and instructed the General Council 
and subsidiary bodies to frame responses to the trade -related issues identified by the CTD with a 
view to mak ing recommendations for action.26 
 
Recalling Paragraph 1.11 of the Bali Ministe rial Declaration that prov ides: 
 
"… we instruct the Trade Negotiations Committe e to prepare within the next 12  months 
a clearly defined work program on the remaining D oha Development Agenda issues".27  
The SVEs group submits the following contribution to the definition of the Work Program me:  
 
GENERAL PRINCIPLES  
 
The following are the general principles that SVEs believe should be an integral part of the Post -Bali 
Work Program me: 
 
1. Development dimension of the Doha Development Agenda is central.  
 
2. Basic principles for the negot iation process: Bottom -up, transparent and inclusive 
process, Member driven process and less than full reciprocity.  
 
3. Special and Differential Treatment (SDT) should be an integral component in all areas 
of the Work Program me. 
 
25 Doha WTO Ministerial Declaration. WT/MIN(01)/DEC/1, 20 November 2001.  
26 Work Programme on Small Economies , Ministerial Decision (WT/MIN(13)/33 or WT/L/908).  
27 WT/MIN(13)/DEC.  WT/COMTD/SE/W/2 2/Rev.10  
 
- 27 - 
 
   
4. SDT for the SVEs : enhanced flexibilities for SVEs on all elements of Agriculture, NAMA 
and services, as well as in any other component of the Work Program me of our interest.  
 
5. SVEs believe in building future work on the basis of the agreed mandates and the 
stabilized f lexibilities contained in the Draft Modalities of 2008 and 2011.  
 
6. Balanced outcome according to the level of ambition and contributions of Members. If 
as a result of the negotiations there is a lowering of the level of ambition, SVEs flexibilities and 
contributions will also have to be revisited in that same way.  
 
KEY ELEMENTS  
 
Flexibilities captured for SVEs in Rev.4 and Rev.3 are the basis for future work.  
 
The level of ambition in Agriculture is central to the Round. Progress should be made across 
all negotiating areas in the Post -Bali Work Program me.  
 
Agriculture:  
 
Market Access : Enhanced flexibilities for SVEs, Special Safeguard Mechanism (SSM), Special 
products, Tariff Rate Quotas (TRQs) and TN/AG/W/4/Rev.428, Paragraphs 65, 112, 127, 130, 
144, 1 57, 158.  
 
Domestic Support : Enhanced flexibilities for de minimis, overall trade -distorting domestic 
support (OTDS), Blue Box. (TN/AG/W/4/Rev.4 paragraph 10, 32, 50 and JOB/AG/16).  
 
Export Competition : 
 
• Enhanced Flexibilities in Export Credits29, Export prohibitions and restrictions30, 
Food Aid31, and State Trading Enterprises32. (JOB/AG/16).  
 
• Cuba's proposal on Export Credits .33  
 
NAMA:  
 
Market Access : Enhanced flexibilities. (Including specific flexibilities for Fiji, Bolivia, and 
Gabon) TN/MA/ W/103/Rev.3, para.13.  
 
Participation in sectorial initiatives should remain on a voluntary basis.  
 
General Concerns on Non -Tariff Measures (NTMs) : Especially the NTMs identified in the 
Secretariat 's Studies: WT/COMTD/SE/W/26/Rev.1 and WT/COMTD/SE/W/28.  
 
Services:  
 
Market Access : Flexibilities contained in Paragraph 8 of Annex C of the Hong Kong 
Declaration Articles XIX.2 and in the Guidelines and Procedures on the Negotiations in Trade in 
Services.  
 
Domestic regulation : Enhanced SDT for SVEs.  
 
We reiterat e that targeted technical assistance as agreed in paragraph 10, Annex C of the 
Hong Kong Ministerial should enable developing countries to participate effectively in the 
negotiations.  
 
 
28 TN/AG/W/4/Rev4. Revised Draft Modalities for Agriculture . 
29 TN/AG/W/4/Rev4. Paragraph 5 of Annex J, and JOB/AG/16.  
30 Idem, paragraphs 180, and JOB/AG/16 . 
31 Idem,  paragraph 12 of Annex L, and JOB/AG/16.  
32 Idem, paragraph 6 of Annex K, and JOB/AG/16.  
33 TN/AG/GEN/31 . WT/COMTD/SE/W/22/Rev.10  
 
- 28 - 
 
  Fisheries Subsidies:  
 
Additional Flexibilities for Small and Vulnerable Economies under article III of the proposed 
draft Chair 's text on fisheries subsidies, based on the SVEs' proposal (TN/RL/GEN/162/Rev.1).  
 
We reiterate that the referred proposal seeks some additional flexibility for SVEs with respect 
to the pro posed exemptions to the prohibited subsidies under Article I.  
 
TN/RL/GEN/162/Rev.1 sought some additional flexibility for SVEs with respect to the proposed 
exemptions to the prohibited subsidies proposed under Article I, in the context of a core set of for ms 
of disciplines of fisheries subsidies and fisheries management related criterion easily enforceable in 
developing countries.  
 
In the context of the current recalibration of ambition across all areas, the SVEs are willing to 
engage on a discussion of sp ecial and differential treatment based on minimum disciplines on 
fisheries subsidies to address overcapacity and overfishing are agreed to. SVEs note that 
transparency alone will not address the sustainability concerns that underpinned the mandate for 
the fisheries subsidies negotiations.  
 
VII. COMMITTEE ON AGRICULTURE - SPECIAL SESSION  
A. REVISED DRAFT MODALITIES FOR AGRICULTURE - TN/AG/W/4/REV.4 
(6 DECEMBER 2008)  
II. MARKET ACCESS  
A. TIERED FORMULA FOR TARIFF REDUCTIONS  
63. Developing country Members other than those specified in paragraph 65 below shall 
reduce their final bound tariffs in eleven equal annual instalments over ten years in accordance 
with the following tiered formula:  
 
(a) where the final bound tariff or ad valorem equivalent is  greater than 0 and less 
than or equal to 30 %, the reduction shall be 2/3 of the cut for developed country 
Members in paragraph 61(a) above;  
 
(b) where the final bound tariff or ad valorem equivalent is greater than 30 % and 
less than or equal to 80 %, the r eduction shall be 2/3 of the cut for developed country 
Members in paragraph 61(b) above;  
 
(c) where the final bound tariff or ad valorem equivalent is greater than 80 % and 
less than or equal to 130 %, the reduction shall be 2/3 of the cut for developed coun try 
Members in paragraph 61(c) above;  and 
 
(d) where the final bound tariff or ad valorem equivalent is greater than 130 %, the 
reduction shall be 2/3 of the cut for developed country Members in paragraph 61(d) 
above.  
 
65. Those small, vulnerable economies34, including those among them which are ceiling 
binding and homogenously low binding countries, which choose to exercise the option set forth 
 
34 The Members concerned are those that meet the criteria set out in paragraph 151 and are  listed in 
Annex  I. As is made clear in the A greed Framework, Small Vulnerable Economies (SVEs) are not meant to 
create any sub -category of Members. Bearing that principle in mind, the following Members could also be 
deemed to be eligible for this treatment, should they choose to avail themselves of it, despite not being 
members of the SVE Group per se  given that this treatment could be deemed to be broadly comparably 
appropriate:  Republic of Congo, Côte d'Ivoire and Nigeria (plus other Members that can provide data that 
show that they meet t he crite ria in paragraph 147). Additionally, Bolivia shall have access, exceptionally, to 
treatment equivalent to that  provided for in paragraph 142.  As an exception, Suriname shall rebind its 
agricultural tariffs on a line by line basis at the level of the averag e bound tariff of Antigua and Barbuda, 
Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and 
the Grenadines and Trinidad and Tobago resulting from these modalities.  WT/COMTD/SE/W/2 2/Rev.10  
 
- 29 - 
 
  in paragraph 130 below shall be entitled to moderate the cuts specified in paragraph 63 above 
by a furth er 10 ad valorem percentage points in each band.  
 
D. SPECIAL AND DIFFERENTIAL TREATMENT  
Special Products  
 
129. Developing country Members shall be entitled to self -designate Specia l Products guided 
by indicators35 based on the criteria of food security, li velihood security and rural development.  
There shall be 12 % of tariff lines available for self -designation as Special Product s. Up to 5 % 
of lines may have no cut. The overall average cut shall, in any case, be 11 %.* 
 
* A number of developing country Member s have expressed reservations 
concerning the numbers specified in this paragraph, noting also that this 
may be affected by what is decided in other areas of the text.  
130. In the case of small vulnerable economies, including those among them which are 
ceiling binding and homogenously low binding countries, they may, if they choose to do so, 
apply the moderated tariff tiered formula for SVEs provided for in paragraph 65 above plus 
the Special Produ ct entitlement outlined above.  Alternatively, they may choose  not to apply 
the tiered formula but simply meet an overall average cut of 24 % through having in effect 
opted to designate as many tariff lines as t hey choose as Special Products.  The tariff lines so 
chosen need not be subject to any minimum tariff cut and need not be guided by the 
indicators.  
 
Special Safeguard Mechanism (SSM)  
 
144. [In the case of SVE's referred to in footnote 11 (see footnote 20 of this compilation) to 
these mo dalities, they may apply the maximum remedy provided for above even if this would 
otherwise entail breach of a pre Doha bound tariff, provided that the maximum increase over 
a pre -Doha bound tariff does not exceed 20 ad valorem  percentage points or 20 % of the 
current bound tariff, whichever is higher,  for up to a maximum of (10 -15)%  of tar iff lines in 
any given period. This would be provided that all other relevant conditions for application of 
the measure have been met.  
 
145. For developing country Member s other than those referred to in the preceding 
paragraph, they may apply the maximum remedy provided for above even if this would 
otherwise entail breach of a pre -Doha bound tariff provided that (a) the maximum increase 
over the pre -Doha bound tariffs wou ld be no more than 15 ad valorem  percentage points or 
15% of the current bound tariff, whichever is the higher; (b) the maximum number of products 
for which this provision would be invoked would be no more than 2 -636 in any given period; 
and (c) this would  not be permissible for two consecutive periods. All other provisions would 
be applicable.]  
 
G. SMALL, VULNERABLE ECONOMIES  
157. For the purposes of this Agreement, this term applies to Members with economies that, 
in the period 1999 to 2004, had an average share of (a) world merchan dise trade of no more 
than 0.16% or less, and (b) world trade in non -agricultural products of no more than 0.1 % 
and (c) world trade in agricultural product s of no more than 0.4 %. 
 
158. Developed country Members and develop ing country Members in a position to do so 
shall provide enhanced improvements in market access for products of export interest to 
Members with small, vulnerable economies.  
159. More specific provisions are to be found in relevant sections of this document . 
 
 
35 See Annex F . 
36 For the purposes of this provision a "product" is identifiable at the 6 -digit level of the Harmonized 
System (HS) nomenclature, but with the understanding that this can entail a maximum of [4 - 8] tariff lines 
per product  below that 6 -digit level.  WT/COMTD/SE/W/22/Rev.10  
 
- 30 - 
 
  B. LATEST SVE SUBMISSIONS   
1. Flexibilities in the Agricultural Modalities on the Pillars of Domestic Support and 
Export Competition, Communication by the Group of Small and Vulnerable Economies 
(SVEs) - JOB/AG/16 (24 March 2011)  
1. This proposal is sub mitted with the objective of securing flexibilities for those Small Vulnerable 
Economies (SVEs), including non-resident delegations, that are not currently listed as Net Food 
Importing Developing Countries (NFIDCs).37  
 
2. The SVEs believe that in the agri cultural negotiations, the special circumstances and 
characteristics of our members should be taken into account, in compliance with the mandate 
outlined in paragraph 35 of the Doha Ministerial Declaration which refers to the Work Program on 
Small Economie s, as well as paragraph 41 of the Hong Kong, Ministerial Declaration which Ministers 
instruct the Dedicated Session of the CTD to "monitor progress of the small economies' proposals in 
the negotiating and other bodies, with the aim of providing responses t o the trade -related issues of 
small economies as soon as possible".  
 
3. It is widely acknowledged that the Agriculture sector remains a major component of economic 
activity in rural areas in developing countries, especially th e smallest among them. It gene rates 
employment, meets food security objectives, and can be a vital sourc e of foreign exchange earnings.  
In this sense, the importance of obtaining flexibilities for our members in the pillars of domestic 
support and export competition becomes an essentia l part of the balance that we are seeking from 
these negotiations.  
 
4. In contrast with the considerable distorting support provided by some Members, our countries 
are amongst those who have given relatively small amounts of support to their agricultural s ector 
although an important percentage of it is represented by  small and subsistence farmers.  In most 
cases this is due to the financial constraints faced by our countries which prevent us from providing 
subsidies to our farmers, as well as the constraints  derived from the Uruguay Round, in this area,  
for small countries like ours.  In this sense, we believe that there are some flexibilities in the pillars 
of domestic support and export competition that should also be granted to our countries, in order to 
achieve a balanced outcome.  
 
5. In putting our proposal forward, we would like to stress that our countries recognize the 
enormous amount of work which has gone into the agriculture negotiations and believe that the 
current Draft Modalities contained in docu ment TN/AG/W/4/Rev.4 are a good reflection of the work 
that has been done in this area throughout the years.  
 
6. In this sense, we would not be seeking to reopen whole issues, but that the flexibility that we 
are pursuing can be reflected in the form of fo otnotes as presented below, as has be en utilized 
before in the text.  We believe that this proposal will not harm in any way the balance of these 
negotiations as members of our group represent a very small share of global agricultural trade.  
 
Specific propo sals: 
 
Paragraph 10, amend the footnote as follows : 
 
"2 Antigua and Barbuda, Belize, Bolivia , Cameroon, Congo (Brazzaville), El Salvador, Fiji , 
Ghana, Grenada, Guatemala, Guyana, Maldives, Nicaragua , Nigeria, Suriname  and Swaziland 
shall have access also to this provision."  
 
Paragraph 50, include a footnote as follows:  
 
" … .  For least -developed country Members and for NFIDCs these limit s shall be 75% and 25 % 
respectively.*"  
 
* Antigua and Barbuda, Belize, Bolivia, El Salvador, Fiji, Grenada, Guatemala, 
Guyana, Maldives, Nicaragua, and Suriname shall have access also to this provision.  
 
37 Antigu a and Barbuda, Belize, Bolivia, El Salvador, Fiji, Grenada, Guatemala, Guyana, Maldives, 
Nicaragua, Papua New Guinea and Suriname.  WT/COMTD/SE/W/2 2/Rev.10  
 
- 31 - 
 
   
Paragraph 180, amend the footnote as follows:  
 
"29 Antigua and Barbuda, Belize, Bolivia , Cameroon, Congo (Brazzaville), El Salvador, Fi ji, 
Ghana, Grenada, Guatemala, Guyana, Maldives, Nicaragua , Nigeria, Papua New Guinea, 
Suriname  and Swaziland shall have access also to this provision."  
 
Annex J Paragraph 5, include a footnote as follows:  
 
"5. Notwithstanding the terms of paragraphs 3(a) and 4(a) above, Least -developed and net 
food-importing developing countries as listed in G/AG/5/Rev.8 shall be accorded differential and 
more favourable treatment comprising allowance for a repayment term in respect of them of 
between 360 and 540 days for the acquisition of basic foodstuffs*…"  
 
* Antigua and Barbuda, Belize, Bolivia, El Salvador, Fiji, Grenada, Guatemala, 
Guyana, Maldives, Nicaragua, Papua New Guinea and Suriname shall have access 
also to this provision.  
 
Annex L Paragraph 12, include a foo tnote as follows:  
 
"12. Monetization of in -kind food aid in non -emergency situations shall be prohibited except where 
it is in conformity with the provisions of paragraph 11 above and, as a means to meet direct 
nutritional requirements of least -developed a nd net food -importing developing country members*, 
it is necessary to fund the internal transportation and delivery of the food aid to, or the procurement 
of agricultural inputs to low -income or resource -poor producers in, those Members."  
 
* Antigua and Ba rbuda, Belize, Bolivia, El Salvador, Fiji, Grenada, Guatemala, 
Guyana, Maldives, Nicaragua, Papua New Guinea and Suriname shall have access 
also to this provision.  
 
2. The Special Safeguard Mechanism (SSM) Modalities to Apply to Small Vulnerable 
Economies (SVEs), Communication by the Group of Sm all Vulnerable Economies (SVEs)38, 
the African, Caribbean and Pacific (AC P) Group, and the African Group39 - JOB/AG/17 (24 
March 2011)  
1. The Group of Small Vulnerable Economies (SVEs), the African, Caribbean and Pacific (ACP) 
Group, and the African Group take note of documents TN/AG/W/4/Rev.4 and TN/AG/W/7 prepared 
by the former Chairman of the Committee on Agriculture (Special Session),  Ambassador Crawford 
Falconer. The Groups acknowledge the effort s of the current Chair, Ambassador David Walker, to 
find balanced solutions in the framework of the Agriculture negotiations.  
 
2. It should nonetheless be recalled that the G -33, on behalf of the SVEs, made a submission in 
February 2009 (TN/AG/GEN/29) whic h sought, among other things, to address the issues raised in 
paragraph 5(b) of the  document TN/AG/W/7 on the SSM.  It remains the case that the specific 
modalities to be applied to SVEs have not been discussed.  
 
3. The SVEs, ACP, and the African Group Memb ers wish to recall that, since July 2008, there 
have not been any real discussions regarding the specific  treatment for SVEs on the SSM.  Since that 
time, on behalf of its SVEs Members, the G -33 presented two documents regarding the treatment 
for the SVEs w ithin the SSM. These are:  TN/AG/GEN/29, " G-33 Proposal on the Treatment of SSM 
Provided to the SVEs ", dated 10 February 2009 and JOB/AG/6, " G-33 Submission on the SSM: 
Flexibilities  for SVEs ", dated 4 March 2010.  These submissions should be read in conjunc tion with 
the present document.  
 
4. It has been the understanding of the SVEs, ACP, and the African Group Members that 
emphasis would first be on finding a solution for developing countries, in general, before proceeding 
 
38 This submission is without prejudice to the negotiating positions of the Group of Least -Developed 
Countries.  It is recogni sed that, in accordance with the established principle of differentiated treatment, LDCs 
shall have more flexible treatment than SVEs.  
39 This submission is without prejudice to the negotiating positions of the SVEs, ACP and the African 
Group.  Countries re serve the right to submit further proposals elaborating on Group or individual needs.  WT/COMTD/SE/W/22/Rev.10  
 
- 32 - 
 
  to outline the specific treatment f or the SVEs, taking into account that it has generally been 
recognized by the WTO membership that SVEs should have more flexible treatment within the SSM.  
 
5. The SVEs, ACP, and the African Group present this document to clarify the position of the 
SVEs on  various elements of the SSM and in order to address sub -paragraphs 5(b) and (c) of 
document TN/AG/W/7 and is without prejudice to the positions regarding the general solution for 
other developing countries. This submission is made pursuant to the mandate of paragraph 35 of 
the Doha Ministerial Declaration and paragraph 42 of the Hong Kong Ministerial Declaration, to frame 
responses to the trade -related issues identified for the fuller integration of the SVEs into the 
multilateral trading system.  
 
6. The ra tionale and structure of the SSM should be agreed on the basis of the elements 
contained in the document TN/AG/W/4/Rev.4. Whilst some of the paragraphs on the SSM are 
unbracketed, important gaps remain, including in respect  of the treatment for the SVEs.  In that 
regard, any future revised draft modalities should include the following elements in order to close 
those gaps and address the needs of SVEs:  
 
New Paragraph 133 bis 
 
In the case of SVEs referred to in footnote 11 to these modalities, the volume -based  SSM shall be 
applied on the basis of a rolling average of imports in the preceding three -year period for which data 
are availa ble (hereafter "base imports").  On this basis, the applicable triggers and remedies shall be 
set as follows:  
 
(a) where the volum e of impo rts during any year exceeds 110% but does not exceed 115 % 
of base imports, the maximum additional duty that may be imposed shall not exceed 
25% of the current bound tariff or 25 percentage points, whichever is higher;  
 
(b) where the volume of impo rts during any year exceeds 115 % but does not exceed 120 % 
of base imports, the maximum additional duty that may be imposed shall not exceed 
40% of the current bound tariff or 40 percentage points, whichever is higher;  
 
(c) where the volume of imports durin g any year exceeds 120 % of base imports, the 
maximum additional duty that may be imposed shall not exceed 50 % of the current 
bound tariff or 50 percentage points, whichever is higher.  
 
The above triggers and remedies shall apply notwithstanding that the pr e-Doha bound rate may be 
breached, subject to the limitation in paragraph 144.  
 
New Paragraph 135 bis 
 
In the case of SVEs referred to in footnote 11 to these modalities, the price -based SSM  shall be 
applicable where the c.i.f. import price of the shipment entering the customs territory of the SVEs 
Member concerned, expressed in terms of its domestic currency falls below a trigger price equal to 
90% of the average price for that product for t he most recent three -year period preceding the year 
of importation for which data is available, provided that, where the Member 's domestic currency, 
has at the time of importation, depreciated by at least 10 % over the preceding 12  months against 
the intern ational currency or currencies against which it is normally valued the import price shall be 
computed using the average exchange rate of the domestic currency against such international 
currency or currencies for the three -year period referred to above.  
 
New Paragraph 136 bis 
 
In the case of SVEs referred to in footnote 11 to these modalities, the price -based SSM remedy shall 
apply o n a shipment -by-shipment basis.  The additional duty shall not exceed the difference between 
the import price of the shipme nt concerned and the reference40 price.  
 
 
40 See Footnote 26 of TN/AG/W/4/Rev.4.  WT/COMTD/SE/W/2 2/Rev.10  
 
- 33 - 
 
  New Paragraph 138 bis 
 
In the case of SVEs referred to in footnote 11 to these modalities, paragraph 138 shall not be 
applicable.  
 
Paragraph 144  
 
 In the case of SVEs referred to in footnote 11 to these modalities, they m ay apply the 
maximum remedy provided for above even if this would otherwise entail breach of a pre -Doha bound 
tariff, provided that the maximum increase over a pre -Doha bound tariff does not exceed 75 ad 
valorem percentage points or 75 % of the bound tariff , whichever is higher, for up to a maximum of 
30% of tariff lines in any given period.  This would be provided that all other relevant conditions for 
application of the measure have been met.41  
 
41 The Plurinational State of Bolivia is not in a position to support these numbers at this stage and 
remains with the pre -July 2008 position of the Group.  WT/COMTD/SE/W/22/Rev.10  
 
- 34 - 
 
  ANNEX I  
SMALL, VULNERABLE ECONOMIES  
 
1. The data are based on the methodology that was used to prepare a previous Secretariat paper 
on shares of WTO Members in world non -agricultural trade, 1999 -2004 (TN/MA/S/18). Individual 
Members' data were extracted from the United Nations Comtrade database on 6 June 2007.  World 
export and import totals, excluding significant re -exports were taken from the Secretariat's 
Internationa l Trade Statistics Report 2006.  This time period has been updated to 2000 -2005 and a 
cif-fob adjustment has been applied to world  exports by commodity group to derive respective world 
imports, but this does n ot change the overall results42. The country averages are calculated on the 
basis of the years for which data are available.  
 
2. A small, vulnerable economy is defined as one w hose av erage share for the period 1999 -2004 
(a) of world merchandise trade does not exceed 0.16 % and (b) of world NAMA trade does not exceed 
0.10% and (c) of world agricultural  trade does not exceed 0.40 %. 
 
3. The attached table does not include those Members that are defined as least developed 
countries by the United Nations Economic and Social Council and those Members for which no data  
are available.  
 
42 Cif-fob factors were estimated based on the ratio of imports to exports for a matched group of 
reporters in Comtrade.  World imports by commodity group were derived by applying these cif -fob factors to 
the WTO's world exports by com modity group and aligning the resulting figures to the WTO's world total 
imports  Intra -trade of the 25 EC member States was then subtracted from the totals.   
  WT/COMTD/SE/W/22/Rev.10  
 
- 35 -   Share of total merchandise trade 
(%) Share of world agriculture (AOA) 
trade (%)  Share of non -agriculture (NAMA) 
trade (%)  
WTO Member  Total 
(exports + 
imports  Exports  Imports  Total 
(exports + 
imports  Exports  Imports  Total 
(exports + 
imports  Exports  Imports  
Worlda 100 100 100 100 100 100 100 100 100 
Albania  0.019  0.008  0.029  0.050  0.008  0.087  0.017  0.008  0.026  
Antigua and Barbuda  0.004  0.001  0.007  0.011  0.000  0.020  0.004  0.001  0.006  
Armenia  0.015  0.010  0.019  0.040  0.018  0.060  0.013  0.010  0.016  
Barbados  0.013  0.005  0.020  0.037  0.022  0.050  0.011  0.004  0.019  
Belize  0.006  0.004  0.008  0.023  0.029  0.017  0.004  0.001  0.007  
Bolivia, Plurinational State of  0.032  0.032  0.032  0.102  0.143  0.065  0.028  0.025  0.030  
Botswana  0.057  0.061  0.053  0.075  0.030  0.116  0.056  0.065  0.048  
Brunei Darussalam  0.050  0.078  0.025  0.029  0.000  0.056  0.053  0.086  0.023  
Cameroon  0.036  0.038  0.035  0.112  0.140  0.087  0.032  0.032  0.032  
Cuba 0.063  0.034  0.089  0.240  0.223  0.256  0.052  0.022  0.080  
Dominica  0.002  0.001  0.002  0.007  0.005  0.008  0.001  0.001  0.002  
Dominican Rep.  0.068  0.018  0.113  0.154  0.115  0.189  0.063  0.011  0.111  
Ecuador  0.110  0.112  0.108  0.326  0.515  0.154  0.098  0.087  0.107  
El Salvador  0.051  0.026  0.075  0.173  0.136  0.206  0.044  0.018  0.068  
Fiji 0.014  0.010  0.018  0.047  0.055  0.040  0.012  0.007  0.017  
Gabon  0.031  0.046  0.017  0.026  0.004  0.046  0.032  0.051  0.015  
Georgia  0.014  0.009  0.020  0.052  0.044  0.060  0.012  0.006  0.018  
Ghana  0.057  0.044  0.067  0.221  0.302  0.144  0.047  0.027  0.063  
Grenada  0.003  0.001  0.004  0.009  0.006  0.012  0.002  0.001  0.004  
Guatemala  0.086  0.053  0.116  0.319  0.416  0.231  0.072  0.030  0.110  
Guyana  0.010  0.009  0.010  0.037  0.052  0.024  0.008  0.007  0.010  
Honduras  0.041  0.026  0.056  0.190  0.223  0.160  0.032  0.013  0.049  
Jamaica  0.044  0.024  0.063  0.114  0.091  0.136  0.040  0.020  0.059  
Jordan  0.079  0.052  0.104  0.198  0.120  0.269  0.071  0.049  0.092  
Kenya  0.052  0.037  0.065  0.215  0.314  0.126  0.041  0.019  0.062  
Kyrgyz Republic  0.011  0.010  0.012  0.029  0.032  0.026  0.010  0.009  0.011  
Macao, China  0.049  0.049  0.048  0.055  0.013  0.093  0.050  0.053  0.046   
  WT/COMTD/SE/W/22/Rev.10  
 
- 36 -  Share of total merchandise trade 
(%) Share of world agriculture (AOA) 
trade (%)  Share of non -agriculture (NAMA) 
trade (%)  
WTO Member  Total 
(exports + 
imports  Exports  Imports  Total 
(exports + 
imports  Exports  Imports  Total 
(exports + 
imports  Exports  Imports  
Mauritius  0.037  0.032  0.041  0.096  0.102  0.090  0.034  0.028  0.038  
Moldova, Rep of  0.018  0.013  0.022  0.089  0.132  0.051  0.013  0.006  0.021  
Mongolia  0.013  0.011  0.014  0.025  0.017  0.033  0.012  0.011  0.013  
Namibia  0.030  0.030  0.029  0.072  0.073  0.070  0.028  0.028  0.027  
Nicaragua  0.023  0.012  0.034  0.102  0.129  0.079  0.018  0.004  0.031  
Panama  0.038  0.016  0.059  0.105  0.091  0.114  0.035  0.011  0.056  
Papua New Guinea  0.032  0.042  0.023  0.070  0.086  0.056  0.030  0.040  0.022  
Paraguay  0.032  0.022  0.042  0.173  0.280  0.077  0.023  0.005  0.040  
Saint Kitts and Nevis  0.002  0.001  0.003  0.006  0.002  0.009  0.002  0.001  0.003  
Saint Lucia  0.004  0.001  0.006  0.016  0.009  0.022  0.003  0.001  0.005  
Saint Vincent and the Grenadines  0.002  0.001  0.003  0.011  0.009  0.012  0.002  0.000  0.003  
Sri Lanka  0.102  0.092  0.112  0.249  0.284  0.217  0.095  0.081  0.107  
Suriname  0.009  0.009  0.011  0.017  0.007  0.027  0.009  0.009  0.010  
Swaziland  0.019  0.018  0.019  0.068  0.082  0.056  0.015  0.014  0.016  
The FYR of Macedonia  0.033  0.026  0.039  0.076  0.069  0.083  0.027  0.024  0.030  
Trinidad and Tobago  0.086  0.102  0.071  0.086  0.072  0.098  0.088  0.107  0.071  
Uruguay  0.047  0.044  0.050  0.209  0.333  0.096  0.037  0.025  0.048  
Zimbabwe  0.037  0.037  0.039  0.151  0.280  0.067  0.030  0.021  0.037  
a Excludes intra -EC trade (25 member States) and significant re -exports.  
Source:  All data are from the United Nations Comtrade database except for world totals, which are WTO estimates.  
 WT/COMTD/SE/W/22/Rev.10  
 
- 37 - 
 
  VIII. NEGOTIATING GROUP ON MARKET ACCESS FOR NON-AGRICULTURAL  PRODUCTS  
A. FOURTH REVISION OF DRAFT MODALITIES FOR NON -AGRICULTURAL MARKET 
ACCESS – TN/MA/W/103/REV.3 (6 D ECEMBER  2008)  
Small, Vulnerable Economies  
 
13. With the exception of developed Members, those Members having a share of less than 
0.1% of world NAMA trade for the reference period of 1999 to 2001 or best available data as 
contained in document TN/MA/S/18 may apply the following modality of tariff reduc tion 
instead of the formula modality which is contained in paragraphs 5, 6 and 7 above.  
 
(a) Members with a bound tariff average of non -agricultural tariff lines43:  
 
(i) at or above 50% shall bind all of their non -agricultural tariff lines at an average 
level that does not exceed an overall average of 30%;  
 
(ii) at or above 30% but below 50% shall bind all their non -agricultural tariff lines at 
an average level that does not exceed an overall average of 27%;   
 
(iii) at or above 20% but below 30 shall bind  all their non -agricultural tariff lines at 
an average level that does not exceed an overall average 18%; and  
 
(iv) below 20%, shall apply a minimum line -by-line reduction of 5% on 95% of all 
non-agricultural tariff lines or bind at the overall average tha t would result from 
that line -by-line reduction.    
 
As an exception, Bolivia shall not be required but is encouraged to apply the modalities in 
paragraph 13.  
 
As an exception, Fiji shall be deemed to fall under (a)(i).  
 
As an exception, Gabon shall engage in GATT Article XXVIII negotiations to reach the overall 
target average of 20%.  
 
(b) All tariff lines shall be bound on 1 January of the year following the entry into force of 
the DDA results at initial bound rates. As an exception, Fiji shall have the flexibility to 
maintain 10% of non -agricultural tariff lines unbound.   
 
(c) The initial bound rates shall be established as follows: for bound tariff lines the existing 
bindings shall be used, and for unbound tariff lines the Member subject to this modality 
will determine the level of the initial binding of those tariff lines.   
 
(d) The overall binding target average shall be made effective at the end of the 
implementation period as follows:  the tariff reductions shall be i mplemented in 11  equal 
rate reductions. The first reduction shall be implemented on 1 January of the year 
following the entry into force of the DDA results and each successive reduction shall be 
made effective on 1 January of each of the following years, e xcept for lines covered 
under 13(e) where the first reduction shall be implemented on 1 January of the year 
following completion of the grace period.  
 
(e) For those Recently Acceded Members applying this modality, a grace period of 3 years 
shall be applie d on those lines on which accession commitments are not fully 
implemented before entry into force of the DDA results. This grace period shall begin 
as of the date of full implementation of the accession commitment on that tariff line.  
 
(f) All duties shal l be bound on an ad valorem basis. Existing bindings on a non ad valorem 
basis shall be converted to ad valorem equivalents on the basis of the methodology 
outlined in document TN/MA/20.  
 
 
43 See document TN/MA/S/4 and TN/MA/S/4 /Corr.1 for the bound tariff averages of Members . WT/COMTD/SE/W/22/Rev.10  
 
- 38 - 
 
  B. LATEST SVE SUBMISSIONS  
1. Contribution to the Special and Differe ntial Treatment and Technical Assistance 
Provisions on the "Horizontal Mechanism", Communication from El Salvador on behalf of 
Small Vulnerable, Economies - JOB/MA/89 (19 April 2011)  
Special and Differential Treatment  
 
Paragraph 7 bis  
 
SVE's  shall be granted an additional period of [40] days to present the written response, referred to 
in paragraph 7 of this Decision.  
 
General conditions on Special and Differential Treatment  
 
The Horizontal Mechanism shall not be applicable in so far as SVEs are concerned, until two years 
after the beginning of the implementation period.  
 
Technical Assistance  
 
Technical assistance  
 
1.  Members agree that technical assistance in using the mechanism shall be provided to SVEs. 
It shall take the following forms:  
 
(i) In case of a requesting Member, necessary assistance for the formulation of a request 
and assessment of possible solutions.  
 
(ii) In the case of a responding Member, appropriate assistance to analyze the request 
received, for the formulation of responses and exploration of possible solutions.  
 
General conditions of Technical Assistance  
 
2.  Technical assistance under this parag raph shall be (a) demand driven (b) available at all the 
stages of the procedure and (c) fully take into account the rights and obligations of Members under 
the WTO Agreement.  
 
3. Implementation of technical assistance and/or capacity building agreed as pa rt of a mutually 
agreed solution shall be monitored by the Committee on Trade and Development.  
 
4.  The WTO Secretariat shall incorporate these Procedures into its technical assistance and 
capacity building programmes related to non -tariff measures.  
 
2. Questions to the co -sponsors of the proposal of "Ministerial Decision on procedures 
for the facilitation of solutions to Non -Tariff Barriers", Communication from the group of 
small vulnerable economies – JOB/MA/55 (3 November 2010)  
1) While understanding tha t the objective of this mechanism is to establish procedures of a 
conciliatory nature, with a view to promoting mutually acceptable solutions to Members' concerns 
regarding non -tariff barriers, we understand that SVEs may be frequently targeted through thi s 
mechanism as many have limited export base and therefore, imports play an important part of their 
trade. In this regard, would proponents envisage special consideration for SVEs in the application of 
the Mechanism?  
 
2) Do proponents envisage the possibi lity of extending the period of response contained in Article 
7 of the Decision, taking into account the limited resources of some countries and the process of 
internal consultations that should take place once the mechanism is invoked, as one possible 
provision of SDT?  
 
3) Given that Article 12.2 of the SPS Agreement already contemplates a consultation mechanism 
for the resolution of SPS trade related measures, and since the SPS Committee is already discussing WT/COMTD/SE/W/22/Rev.10  
 
- 39 - 
 
  its implementation, what is the relationship o f the Horizontal Mechanism with the SPS mechanism 
that is currently being discussed?  
 
3. Questions to the co -sponsors of the proposal of "Negotiating Text on Liberalizing 
Trade in Remanufactured Goods", Communication from the group of small vulnerable 
economies – JOB/MA/56 (3 November 2010)  
1) It is noted that the proponents have indicated that remanufacturing is a growing area for 
many developing countries. However, many SVEs comprise small delegations, have capacity 
constraints and, in some cases are not  represented in Geneva. How do the proponents envision that 
the creation of an additional Work Programme under the WTO structure can facilitate SVEs' 
participation in this area?  
 
2) Is it envisaged that the Work Programme on Remanufacturing would have a previously agreed 
review period to ensure that it is working properly, that the original intentions are being met and 
that small countries are able to participate effectively in the Work Programme?  
 
3) Within the possible implementation of this decision, h ow do proponents envisage the issues 
of capacity building and transfer of technology for developing countries, including SVEs to ensure 
that they effectively benefit from this decision?  
 
4) Given that remanufacturing incorporates "product life extension" p rocesses for goods that are 
at the end of their life -cycle, can the proponents elaborate on environmental impact on 
remanufacturing products? What are the proponents views on environmental levies to ensure that 
used and remanufactured products do not pose harm to the health and environment of SVEs?  
 
5) How do the proponents envisage the implementation of these modalities for remanufactured 
goods insofar as there is no intent to have a separate tariff line for such products? How is it 
envisioned that domest ic Customs authorities would differentiate between goods that are 
remanufactured and those that are re -used, repaired, reconditioned, refurbished, etc? In order to 
facilitate the consideration of this proposal taking into account the aforementioned, is an eventual 
definition/identification of remanufacturing tariff lines envisioned?  
 
6) Given that different countries have different consumer protection legislation regarding 
warranties and conditions of return, could the proponents elaborate on the envisioned  process where 
importers act as re -distributors for goods? Will such entail greater burden on regulatory authorities 
in small developing countries? Is there a possible mechanism to minimise any potential additional 
burden?  
 
7) Taking into account the impor tance of the exceptions contained in Article XX of GATT 1994 to 
protect health and life of people and the conservation of scarce natural resources, amongst others, 
would proponents consider the possibility of including a reference in the body of the decisi on in the 
sense that "nothing in this decision shall undermine Members' rights and obligations under Article 
XX of GATT 1994"?  WT/COMTD/SE/W/22/Rev.10  
 
- 40 - 
 
  IX. COUNCIL FOR TRADE IN SERVICES SPECIAL SESSION  
A. ELEMENTS REQUIRED FOR THE COMPLETION OF THE SERVICES NEGOTIATIONS, 
REPORT B Y THE CHAIRMAN - TN/S/34 (28 J ULY 2008)44  
ANNEX  
 
Elements Required for the Completion of the Services Negotiations  
 
10. Members shall continue to give due consideration to proposals on trade -related concerns of 
small economies. In recognizing their special situation, further liberalization shall be in accordance 
with their development needs.  
 
44 At the m eeting of the Special Session on 23 July 2008, the delegations of Bolivia, Cuba, Nicaragua 
and Venezuela expressed their disagreement with this annex and requested that  their position be registered. 
For that purpose, the following text has been provided by the delegation of Venezuela on behalf of Bolivia, 
Cuba and Nicaragua, with the reques t that it appear in this Annex.  It has not been subject to any discussion by 
other delegations at the Special Ses sion. 
"There is no conse nsus on a new text on services.  Various delegations consider that there is no mandate 
to agree on elements that go beyond the points agreed by all Members in the Hong Kong Ministerial 
Declaration and that there is no obligation to m ake commitments at the highest possible level. Any language 
that modifies Members' current obl igations has no binding force. However, there is total agreement on 
immediate implementation of any treatment in favour of the least developed countries and the s mall and 
vulnerable economies."  
 WT/COMTD/SE/W/22/Rev.10  
 
- 41 - 
 
  X. WORKING PARTY ON DOMESTIC REGULATION  
A. SERVICES - TRADE -RELATED CONCERNS OF SMALL, VULNERABLE ECONOMIES IN 
THE WORKING PARTY ON DOMESTIC REGULATION – JOB (06)/66/REV.2 (10 J ULY 2006)  
Proponents : Antigua and Barbuda, Barbados, Cuba, Dominica, Dominican Republic, El Salvador, Fiji, 
Grenada, Guatemala, Honduras, Jamaica, Mauritius, Mongolia, Nicaragua, Paraguay, St. Kitts and 
Nevis, St. Vincent and the Grenadine s and Trinidad and Tobago.  
 
Small, vulnerable economies recommend that the following elements be included in any future 
disciplines on domestic regulation in services.  
 
III. RECOMMENDATIONS TO ADDRESS THE CONCERNS OF SMALL, VULNERABLE ECONOMIES  
 
A. GENERAL PRINCIPLES  
 
(i) These disciplines shall not affect nor limit a Member's right to regulate, and shall not 
prevent or prescribe the development and adoption of future legislation to meet 
Members' national policy objectives.  
 
(ii) Developing country M embers shall implement the disciplines that require adjustment of 
existing domestic regulation and/or the adoption of new implementation mechanisms 
to the extent consistent with their financial, administrative and institutional capabilities 
and according t o their size and level of development.  
 
(iii) Developing country Members shall be accorded adequate time frames to upgrade their 
legislative, regulatory, administrative and institutional capacity to implement these 
disciplines. Members shall provide techn ical assistance and capacity -building assistance 
in order to help developing country Members to develop such capacity.  
 
(iv) These disciplines shall apply to a Member's measures only to the extent that these affect 
sectors, sub -sectors and modes of supply  covered by the respective Member's schedule 
of commitments.  
 
(v) These disciplines shall not prevent a Member from establishing measures or 
mechanisms to support the development of regional economic integration.  
 
B. QUALIFICATION REQUIREMENTS  
 
(i) The est ablishment of qualification requirements by the competent authorities shall not 
be limited to the recognition and verification of specific diplomas, test scores or the like, 
but shall include where possible, the opportunity to fulfil such requirements by t he 
recognition and verification of relevant experience and other education methods for 
establishing a provider's competence to supply the respective services.  
 
(ii) To ensure that qualification requirements do not in themselves constitute barriers to 
trade , Members shall provide technical assistance and capacity building assistance in 
order to help developing country Members and their suppliers meet such requirements.  
 
C. QUALIFICATION PROCEDURES  
 
(i) Fees charged by the competent authorities should not be an impediment in themselves 
to practising the relevant activity. Developing country Members are not precluded from 
recovering fees where fees are utilised to meet national policy objectives.  
 
(ii) Procedures for the verification of qualifications shall be limited to those required to 
establish the minimum qualifications required for supplying the service.  
 
(iii) Members shall ensure that its competent authorities provide for clear and practical 
mechanisms for recognizing as being comparable, education or experience obtained, 
requirements met, or licences or certifications granted in the territory of another 
Member .  WT/COMTD/SE/W/22/Rev.10  
 
- 42 - 
 
   
(iv) To ensure that qualification procedures do not in themselves constitute barriers to trade, 
Members shall provide technical assistance and capacity building assistance in order to 
help developing country Members and their suppliers meet such proced ures. 
 
D. LICENSING REQUIREMENTS  
 
(i) Fees charged by the competent authorities should not be an impediment in themselves 
to practising the relevant activity. Developing country Members are not precluded from 
recovering fees where fees are utilised to meet  national policy objectives.  
 
(ii) To ensure that licensing requirements do not in themselves constitute barriers to trade, 
Members shall provide technical assistance and capacity building assistance in order to 
help developing country Members and their su ppliers meet such requirements.  
 
E. LICENSING PROCEDURES  
 
(i) Members shall ensure that licensing procedures applied by its competent authorities are 
of minimal complexity and entail minimal costs for meeting requirements and fulfilling 
procedures for entr y into export markets. Members may grant reduced licensing and 
other related fees to service providers from developing country Members.  
 
(ii) To ensure that licensing procedures do not in themselves constitute barriers to trade, 
Members shall provide tech nical assistance and capacity building assistance in order to 
help developing country Members and their suppliers meet such procedures.  
 
F. TECHNICAL STANDARDS  
 
(i) Members shall in reasonable time publish a notice in a publication, print or electronic, 
and notify other Members through the Secretariat, of the establishment and application 
of measures relating to national or international technical standards relating to services 
and service providers.  
 
(ii) Members shall, where requested, grant other Member s, especially developing country 
Members, technical assistance on mutually agreed terms and conditions regarding the 
establishment of technical standards and participation in the international standardizing 
bodies in the area of services.  
 
(iii) As a matter of good practice, Members involved in the development and application of 
measures relating to plurilateral standards, and standards developed and applied by 
non-governmental standardisation bodies should ensure maximum transparency of 
relevant processes for the benefit of other Members.  
G. TRANSPARENCY  
 
(i) Members shall ensure access for service suppliers of other Members to relevant 
information on legislative, regulatory and administrative measures relating to 
qualification requirements and p rocedures, licensing requirements and procedures, and 
technical standards.  
 
(ii) Members shall ensure the establishment of appropriate, transparent and accessible 
administrative and judicial channels for reviewing decisions.  
  WT/COMTD/SE/W/22/Rev.10  
 
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  XI. NEGOTIATING GROUP ON RUL ES 
A. TEXTUAL PROPOSAL FOR ADDITIONAL FLEXIBILITIES FOR SMALL AND VULNERABLE 
ECONOMIES UNDER ARTICLE III OF THE PROPOSED DRAFT CHAIR'S TEXT ON FISHERIES 
SUBSIDIES – TN/RL/GEN/162/REV.1 (20 A PRIL  2011)  
I. INTRODUCTION  
 
1. The co -sponsors of this proposal ar e all proponents of the WTO Work Programme on Small 
Economies which has its mandate in Paragraph 35 of the Doha Ministerial Declaration45 and 
Paragraph 41 of the Hong Kong Ministerial Mandate.46 The co -sponsors recall WTO document 
TN/RL/W/242 which represe nts the statement delivered by Barbados on behalf of Small and 
Vulnerable Economies (SVEs) under item 15(c) of the Chair's roadmap for discussions on fisheries 
subsidies (Annex VIII, TN/RL/W/236).   
 
2. SVEs recall the Hong Kong mandate for fisheries subsidies, which calls on Members to 
"strengthen disciplines on subsidies in the fisheries sector, including through the prohibition of 
certain  forms of fisheries subsidies that contribute to overcapacity and ove r-fishing ...".  We also 
recall the Chair's roadmap for discussions which calls on the Negotiating Group to "work to identify 
those  subsidies that contribute to overcapacity of over -fishing, with a view to determining which of 
these should and should not be  prohibited , while considering at the same time how to effectively 
address the needs and particularities of developing members ".  
 
3. SVEs highlight the following special characteristics and peculiarities of SVEs, in the fisheries 
context:  
 
- As per data presented in Annex I of this proposal, a majority of the SVEs have a share 
of global marine wild capture less than 0.1%. The magnitude of subsidies typically 
provided by SVEs is small and, at this stage in their development, many SVEs are not 
even in a pos ition to provide subsidies. In this context, it is well -known that SVEs have 
a negligible impact on overcapacity and overfishing.   
 
- In contrast, several SVEs are characterised by heavy economic dependence on the 
fisheries sector. Thus, any disciplines wo uld have profound implications for the 
maintenance of basic livelihoods, economic survival and sustainable development.   
 
- SVEs require the necessary policy space to provide subsidies of small magnitudes in the 
future, to be better equipped to harvest their own resources, within sustainable limits.  
 
4. SVEs reiterate their commitment towards finding fair solutions in the debate on  fisheries 
subsidies negotiations.  We believe that those Members that have had a history of providing the 
highest magnitude of harmful subsidies should bear the greatest burden in these disciplines.   
5. The SVEs have attempted to incorporate their special circumstances in the current architecture 
of the proposed Chair's text47, as is proposed in Section II below, for the consideration of all 
Members.  
 
45 "We agree to a work programme, under the auspices of the General Council, to examine issues 
relating to  the trade of small economies. The objective of this work is to frame responses to the trade -related 
issues identified  for the fuller integration of small, vulnerable economies into the multilateral trading system, 
and not to create a sub -category of WTO Members. The General Council shall review the work programme and 
make recommendations for action to the Fifth Session o f the Ministerial Conference."  
46 "We reaffirm our commitment to the Work Programme on Small Economies and urge Members to 
adopt specific measures that would facilitate the fuller integration of small, vulnerable economies into the 
multilateral trading system, without creating a sub -category of WTO Members.  We take note of the report of 
the Committee on Trade and Development in Dedicated Session on the Work Programme on Small Economies 
to the General Council and agree to the r ecommendations on f uture work. We instruct the Committee on Trade 
and Development, under the overall responsibility of the General Council, to continue the work in the Dedicated 
Session and to monitor progress of the small economies' proposals in the negotiating and other bo dies, with 
the aim of providing responses to the trade -related issues of small economies as soon as possible but no later 
than 31  Decem ber 2006. We instruct the General Council to report on progress and action taken, together with 
any further recommendatio ns as appropriate, to our next Session."   
47 For ease of reference, textual changes proposed by SVEs in this document are in bold and underlined 
form and elements of the Draft Chair's text replicated here are not presented in underlined form.   WT/COMTD/SE/W/22/Rev.10  
 
- 44 - 
 
  II. PROPOSED TEXTUAL REVISIONS TO ARTICLE III.2(B) OF CHAIR'S TEXT, ANNEX 
VIII, TN/RL/W/213  
 
(b) In addition , subject to the provisions of Article V:   
 
(1) Subsidies referred to in Articles I.1(d), I.1(e) and I.1(f) shall not be prohibited.   
 
(2) (i) Subsidies referred to in Article I.1(a) and I.1(c) shall not be prohibited provided that 
they are used exclusivel y for marine wild capture fishing employing decked vessels not 
greater than 10 meters or 34 feet in length overall, or undecked vessels of any length.  
OR 
 
(ii) Subsidies referred to in Article I.1(a) and Article I.1(c) should not be 
prohibited for those de veloping country Members whose percentage share in 
world NAMA trade is not more than 0.1% and whose percentage share of 
global marine wild capture is not more than 1%.  
 
(3) For fishing and service vessels of such Members other than the vessels referred to  in 
paragraph (b)(2), subsidies referred to in Article I.1(a) shall not be prohibited provided 
that (i) the vessels are used exclusively for marine wild capture fishing activities of such 
Members in respect of particular, identified target stocks within th eir Exclusive Economic 
Zones ("EEZ"); (ii) those stocks have been subject to prior scientific status assessment 
conducted in accordance with relevant international standards, aimed at ensuring that 
the resulting capacity does not exceed a sustainable level ; and (iii) that assessment has 
been subject to peer review in the relevant body of the United Nations Food and 
Agriculture Organization ("FAO").48  
 
III. TECHNICAL NOTES TO EXPLAIN THE PROPOSED REVISIONS UNDER SECTION II  
 
- Share of world NAMA trade less than 0.1% is a criterion used for the treatment of SVEs 
under Paragraph 13 of the December 2008 NAMA text, TN/MA/W/103/Rev.3 and one of 
the criterion used for the definition of an SVE under Annex I of the December  2008 
Agricu lture, TN/AG/W/4/Rev.4. One of the benefits of using this criterion is that it is 
obtained from texts where the definition of an SVE is stabilized in the context of the 
Doha round of negotiations.   
 
- All Members with a share of world NAMA trade less than 0.1% also have a share of 
global fisheries catch less than one percent, as per FAO's average estimates for 
2006-2008. In fact, 23 out of the 28 countries in the list in Annex 1 (inclusive of the 
03 landlocked countries) have a share of global fisheries cat ch less than 0.1% each.   
 
IV. CONCLUDING REMARKS  
 
The SVEs have accepted all forms of other disciplines on fisheries subsidies proposed in the Draft 
Chair's Text, including through enhanced transparency disciplines, an actionability clause and even 
through  the concept of the proposed Article I.2. In addition, the SVEs have accepted the principle of 
conditioning Special and Differential Treatment exemptions on a core set of fisheries -management 
related criterion easily enforceable in developing countries. Th is proposal only seeks for some 
additional flexibility for SVEs with respect to the proposed exemptions to the prohibited subsidies 
under Article I.   
 
48 If the Me mber in question is not a member of the FAO, the peer review shall take place in another 
recognized and competent international organization . WT/COMTD/SE/W/22/Rev.10  
 
- 45 - 
 
  ANNEX 1  
List of SVEs  with Share of World NAMA Trade of less than 0.1% and whose  percentage 
share of global marine wild capture is not more than 1%  
Non-LDC WTO Developing Country 
Members with Share of World 
NAMA trade less than 0.1% (See 
Note 1 below)  Share of World NAMA trade  
(Average of period 1999 -
2004)  Share of global total catch 
(marine wild capture fishing 
only), Average of period  2006  – 
2008)  
(See Note 2 below)  
Antigua and Barbuda  0.004  0.004  
Barbados  0.011  0.003  
Belize  0.004  0.028  
Bolivia, Plurinational State of 
(landlocked)  0.028  n/a 
Cuba  0.052  0.034  
Dominica  0.001  0.001  
Dominican Rep.  0.063  0.016  
Ecuador  0.098  0.487  
El Salvador  0.044  0.046  
Fiji  0.012  0.051  
Grenada  0.002  0.003  
Guatemala  0.072  0.022  
Guyana  0.008  0.054  
Honduras  0.032  0.018  
Jamaica  0.040  0.018  
Jordan  0.071  0.001  
Kenya  0.041  0.159  
Mauritius  0.034  0.009  
Mongolia (landlocked)  0.012  n/a 
Nicaragua  0.018  0.032  
Panama  0.035  0.264  
Papua New Guinea  0.030  0.270  
Paraguay (landlocked)  0.023  n/a 
Saint Kitts and Nevis  0.002  0.001  
Saint Lucia  0.003  0.002  
Saint Vincent and the Grenadines  0.002  0.005  
Trinidad and Tobago  0.088  0.015  
Uruguay  0.037  0.131  
Note 1: Data compiled from WTO document TN/MA/S/18, as referenced in Paragraph 13 of 
TN/MA/W/103/Rev.3, 8 December 2008. The above list is also contained in Annex I, 
TN/AG/W/4/Rev.4, 8 December 2008.  
Note 2:  Statistics relating to global fisheries catch for the average period 2006 -2008 have been directly 
obtained from the FAO. Statistics i n relation to share of global fisheries capture for the Members 
referenced as "landlocked" was not available primarily due to these Members being landlocked 
countries, with little marine wild capture fishing activity.  WT/COMTD/SE/W/22/Rev.10  
 
- 46 - 
 
  B. TEXTUAL PROPOSAL FOR ADDITIONAL FL EXIBILITIES FOR SMALL AND VULNERABLE 
ECONOMIES UNDER ARTICLE III OF THE PROPOSED DRAFT CHAIR'S TEXT ON FISHERIES 
SUBSIDIES – TN/RL/GEN/162 (8 J ANUARY  2010 ) 
II. PROPOSED TEXTUAL REVISIONS TO ARTICLE III.2(B) OF CHAIR'S TEXT, 
ANNEX  VIII, TN/RL/W/213  
 
(b) In addition, subject to the provisions of Article V:   
 
  (1) Subsidies referred to in Articles I.1(d), I.1(e) and I.1(f) shall not be prohibited.   
 
(2) (i) Subsidies referred to in Article I.1(a) and I.1(c) shall not be prohibited 
provided that they are us ed exclusively for marine wild capture fishing employing 
decked vessels not greater than 10 meters or 34 feet in length overall, or 
undecked vessels of any length. OR 
 
(ii) Subsidies referred to in Article I.1(a) and Article I.1(c) should not be 
prohibited  for those developing country Members whose percentage 
share in world NAMA trade is not more than 0.1% and whose percentage 
share of global marine wild capture is not more than 1%.  
 
(3) For fishing and service vessels of such Members other than the vessels referred to in 
paragraph (b)(2), subsidies referred to in Article I.1(a) shall not be prohibited provided that (i) the 
vessels are used exclusively for marine wild capture fishing activities of such Members in respect of 
particular, identified targ et stocks within their Exclusive Economic Zones ("EEZ"); (ii) those stocks 
have been subject to prior scientific status assessment conducted in accordance with relevant 
international standards, aimed at ensuring that the resulting capacity does not exceed a sustainable 
level; and (iii) that assessment has been subject to peer review in the relevant body of the United 
Nations Food and Agriculture Organization ("FAO").49  
 
C. DRAFTING PROPOSAL ON ISSUES RELATING TO ARTICLE III.4 ("SPECIAL AND 
DIFFERENTIAL TRE ATMENT OF DEVELOPING COUNTRY MEMBERS") OF THE FISHERIES 
SUBSIDIES ANNEX TO THE SCM AGREEMENT AS PROPOSED BY THE CHAIR IN 
TN/RL/W/213 - TN/RL/GEN/158 (22  MAY 2008)  
Proponents : ACP and SVEs Groups  
 
6. In line with the above considerations, it is suggested to  modify Article III.4 as follows:   
 
III.4.1 " Members recognize that developing country Members, especially least -developed 
countries and small, vulnerable economies, will face serious challenges in complying with the 
requirements of this Annex, in particul ar as regards the conditions and criteria set forth in this 
Article and in Articles V ("Fisheries Management") and VI ("Notifications and Surveillance").   
 
III.4.2 Members recognize that the ability of developing country Members, especially least -
developed  countries and small, vulnerable economies, to adopt, implement and sustain 
measures necessary for complying with the requirements of this Annex may depend on the 
effective and timely provision of technical assistance by Members to developing country 
Membe rs in accordance with their demands and needs. Members recognize that developing 
country Members will have different implementation needs and capacities and to this end, 
developing countries which indicate a need for technical assistance shall be provided with such 
assistance through bilateral processes, through new and/or existing WTO technical assistance 
and support mechanisms and through other mechanisms of relevant international and regional 
organisations.   
 
III.4.3 The Committee on Subsidies and Counte rvailing Measures shall establish a 
Sub-Committee dealing exclusively with issues related to technical assistance and support 
programs under this Annex, specifically as regards fisheries management systems and 
measures related thereto. The Sub Committee sh all coordinate the requests from developing 
 
49 If the Member in question is not a member of the FAO, the peer review shall take place in another 
recognized and  competent international organization.   WT/COMTD/SE/W/22/Rev.10  
 
- 47 - 
 
  country Members for technical assistance and support programs and shall review the 
effectiveness of the technical assistance provided to developing country Members.50 The Sub -
Committee shall periodically report its findings to the Committee on Subsidies and 
Countervailing Measures and the Committee on Trade and Development.51  
 
XII. COMMITTEE ON TRADE AND ENVIRONMENT  
A. VIEWS OF THE SMALL VULNERABLE ECONOMIES ON THE NE GOTIATIONS OF 
PARAGRAPH 31(III) OF THE DOHA MINISTERIAL DECLARATION, COMMUNICATION FROM 
THE SMALL, VULNERABLE ECONOMIES 52 - JOB/TE/18 (1 A PRIL  2011)  
1. This proposal sets out the views of the Group of Small, Vulnerable Economies (SVEs), in the 
negotiations  derived from paragraph 31 (iii) of the Doha Ministerial Declaration, aimed at "the 
reduction or, as appropriate, elimination of tariff and non -tariff barriers to environmental goods and 
services."   
 
2. This proposal is also premised on the recognition tha t the Doha Round is centered on the 
needs and interests of developing countries, and on the fact that in the Doha Declaration Ministers 
recognized that every country has the right to take measures deemed appropriate for, inter alia, the 
protection of the e nvironment, provided that these measures do not constitute a means of arbitrary 
discrimination between countries where the same conditions prevail.53 
 
3. Being widely acknowledged that the SVEs  face special circumstances among developing 
countries due, inter alia , to their minimal participation in world trade, limited natural resources, 
severe fiscal constraints, and, in most cases, their  vulnerability to natural disasters, the SVEs believe 
that in the trade and environment negotiations, the special circumstances and characteristics of their 
members should be duly taken into account, in compliance with the mandate outlined in paragraph 
35 of the Doha Ministerial Declaration which refers to the Wo rk Program on Small Economies, as 
well as paragraph 41 of the Hong Kong Ministerial Declaration in which Ministers instructed the 
Dedicated Session of the Committee on Trade and Development (CTD) to "monitor progress of the 
small economies' proposals in th e negotiating and other bodies, with the aim of providing responses 
to the trade -related issues of small economies as soon as possible" .  
 
4. The SVEs hereby draw the attention of the Members to their need for special and differential 
treatment, that in li ne with the mandate contained in paragraph 50 of the Doha Ministerial 
Declaration, would allow us in turn to meet the objective of paragraph 51 which states that 
sustainable development should be part of the outcome of the negotiations on trade and 
environ ment.  
 
5. For this reason, our Group is interested in ensuring that any outcome in this negotiation 
effectively strikes a balance between market access, environmental benefits and the legitimate 
objective of our Members to maintain policies that will allo w our sustainable development. Moreover, 
due recognition should be given to the fact that many developing countries, including SVEs, 
contribute least to the degradation of the environment, but suffer most of its negative consequences.  
 
6. In any event, th e SVE Group wishes to reiterate its strong opposition to any sectoral type 
market access approach to the negotiations on trade and environment, particularly to those on 
paragraph 31 (iii). In this respect, the Group maintains that these negotiations cannot  and shall not 
adversely affect the flexibilities that have been agreed for SVEs in other negotiating areas of the 
Doha Development Agenda, such as in NAMA and Agriculture.  
 
 
50 The Sub -Committee, in consultation with the developing Member concerned, shall identify any 
additional needs of that Member for technical assistance and every effort shall be made to ensure that 
appropriate techni cal assistance is provided to that  Member.  The role of the Sub -Committee shall not be to 
determine the validity of a developing country's request for technical assistance . 
51 Future discussion would be required on the procedures to be followed if a developi ng country member 
does not receive the requested technical assistance.   
52 This communication is without prejudice to the final position that the SVEs will take regarding 
negotiations on trade and environment, including with regards to paragraph 31(iii) of the Doha Ministerial 
Declaration. The SVE Group and its individual members, reserve the right to submit further communication on 
this issue.  
53 From paragraphs 3 and 6 of the Doha Ministerial Declaration.  WT/COMTD/SE/W/22/Rev.10  
 
- 48 - 
 
  7. Finally, the SVEs would like to stress and reiterate the importance of technic al assistance, 
capacity building and transfer of technology in these negotiations.  
 
XIII. NEGOTIATING GROUP ON TRADE FACILITATION  
A. DRAFT CONSOLIDATED NEGOTIATING TEXT - TN/TF/W/165/REV. 5 
(5 NOVEMBER  2010)  
ARTICLE 15:  PREAMBLE/CROSS -CUTTING MATTERS  
 
[1.1 [Small [and vulnerable] [economies]] developing [and least developed] countries which are 
Members of a customs union or a regional economic arrangement may adopt regional approaches 
to assist in the implementation of their obligations under the Trade Faci litation Agreement including 
through the establishment and use of regional bodies.]  
 
XIV. AID FOR TRADE TASK FORCE  
A. AID FOR TRADE - WT/AFT/W/18 (15 J UNE 2006)  
 Proponent : Barbados  
 
 III. SCOPE FOR AFT  
 
 9. In general, AFT should cover the following:  
 
• Trade Policy and Regulations, (i.e. regional and multilateral negotiations, 
standards, implementation of trade agreements, trade policy and planning);  
 
• Trade -Related Infrastructure (i.e. transport and storage, communications, 
energy, trade facilitation, etc);  
 
• Trade Development (i.e. trade promotion strategy and implementation, market 
analysis and development);  
 
• Productive Supply -Side Constraints, ( i.e. banking and financial services, research 
and development and innovation; business and other services, agriculture, 
forestry, fishing, industry and mining, tourism etc.); and  
 
• Trade Adjustment (abnormal adjustment resulting from severe adverse trade  
shocks).  
 
 IV. PRIORITY AREAS FOR INTERVENTION  
 
 A. TRADE POLICY AND REGULATIONS  
 
 B. TRADE ADJUSTMENT  
 
 C. TRADE -RELATED INFRASTRUCTURE  
 
 D. TRADE DEVELOPMENT  
 
 E. PRODUCTIVE SUPPLY -SIDE CONSTRAINTS  
 
V. A PRIVATE SECTOR AID FOR TRADE PROGRAMME  
 
29. A special effort should be made to ensure the involvement of the private sectors in both 
developed and developing countries and to connect them to each other.  
 
30. The scope of a Private Sector Aid -For-Trade Programme should relate to activities 
capable of s upporting private sector efforts to export. The identification of gaps in current 
Official Development Assistance in the trade -related field would be an appropriate starting 
point.  WT/COMTD/SE/W/22/Rev.10  
 
- 49 - 
 
   
31. The delivery and monitoring of Private Sector AFT programmes should be  vested in an 
organization agreed between interested multilateral and bilateral donor agencies and sector 
specific representative institutions on a country basis or, where appropriate, on a regional 
basis.  
 
32. AFT participants should aim for a feasible pr ogramme of assistance that is based on 
professional diagnostic studies and needs assessments and on arrangements for a monitoring 
system using mutually agreed benchmarks. Improving coherence and coordination of action 
among multiple donors should also be p art of this approach.  
 
33. An existing international trade -related organization that has a comparative advantage 
in this field, and also enjoys the confidence of developing countries, should be given 
responsibility for managing the programme. On the recip ient side, the executing agency could 
be the agreed representative institution such as regional development banks.  
 
VI. VOLUME AND NATURE OF FINANCIAL SUPPORT  
 
A. MOBILIZING ADDITIONAL FINANCIAL RESOURCES  
 
34. According to the paragraph 57 mandate, additio nal funding is required. Between 1994 -
2004, development aid has been decreasing as debt relief became an increasing part of ODA. 
It would be important therefore that current aid budgets are not depleted in order to support 
AFT but rather additional resourc es would be tapped to add "new money" to ODA budgets.  
 
35. The pledges so far for 2010 are promising but the challenge remains to realize 
additionality.  In this respect, it is essential that in finalizing commitments to the provision of 
these resources th at long -term sustainability of the AFT process and predictability in the 
provision of funds are assured.  
 
B. NATURE OF AFT FINANCIAL SUPPORT  
 
36. In order to avoid an increase in the debt burden of developing countries, particularly 
LDCs and small, vulnera ble developing countries, aid -for-trade financial support should be 
provided primarily in the form of grants. However, for certain high cost physical infrastructure 
projects, these could be co -financed with long -term concessional loans from other multilate ral 
financial institutions (e.g., regional development banks and the World Bank). Such loans 
should be on terms no less favourable than those of IDA or IFAD.  
 
37. Funding should also not involve any burdensome conditionalities.  The latter should be 
limited  to monitoring and governance.  
 
38. With regard to the financial instruments, there is as much a need for budgetary support 
that is available for sector -wide approaches on a multi -annual basis, as for specific "project 
financing". Budgetary support in situ ations of fiscal imbalance and balance of payments deficit 
ensures macroeconomic stability through quicker disbursement and a focus on the areas of 
adjustment most in need. It facilitates the development of projects by ensuring the correct 
macroeconomic en vironment.  
 
C. DURATION AND SUSTAINABILITY OF AFT FUNDING  
 
39. The problems related to supply -side capacity and trade -related infrastructure must be 
tackled on a sustainable basis. This essentially implies that projects must be developed and 
implemented over many years and be funded on a multi -year basis. AFT funds would therefore 
have to be replenished periodically according to an agreed schedule, and procedures would 
have to be established to ensure this.  
 
40. Access to these funds would als o have to be guaranteed and predictable, and to achieve 
this purpose, some agreement between donors and recipients would be needed to provide 
such security. In this context, some consideration could be given to strengthening the role of 
multilateral source s in the provision of the additional resources.  
 WT/COMTD/SE/W/22/Rev.10  
 
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  VII. MONITORING AND GOVERNANCE OF AFT  
 
A. MONITORING MECHANISM  
 
41. The role of the WTO in monitoring and evaluating performance of AFT programmes 
should be paramount, and this responsibility could be assig ned to its highest Council and its 
subsidiary bodies (particularly the Committee on Trade and Development). The Joint 
WTO/OECD Database on TRTA/CB already constitutes a useful monitoring tool which could be 
further enhanced by improved supervision of the c ollection and processing of information. In 
addition, a mechanism would be needed to assess the impact of AFT. Monitoring should permit 
the involvement of recipients, donors and other interested parties.  
 
B. GOVERNANCE MECHANISM  
 
42. The wide range of bila teral, regional and multilateral mechanisms now in operation 
would suggest that the AFT governance mechanism should first explore the comparative 
advantage of existing institutions and seek to improve functioning where gaps exists.  
 
43. Several forms of a ssistance suffer from insufficient resources as well as a lack of 
coordination between the institutions managing the projects. These weaknesses should be 
avoided in AFT.  
 
44. There is need for credible mechanisms for delivering AFT and ways of improving ex isting 
national and regional mechanisms must be found.  Regional development banks should play a 
key role in this area.  
 
45. Any governance structure should ensure WTO involvement as well as provide for 
adequate coordination where gaps have been observed. T he effective participation of WTO 
Members or their representatives – which again could be the regional development banks 
should be assured. It should also draw into the process international and regional financial 
agencies, the private sector, bilateral do nors along with experts, and other interested parties. 
There should be an agreed administrative framework with agreed principles of management 
and allocation of funds. Institutional conditionalities should be avoided.  
 
C. ELIGIBILITY  
 
46. In terms of count ry coverage, AFT should address the relevant needs of all WTO 
developing -country Members with priority to LDCs, SVEs and acceding small developing 
countries.  
 
VIII. PROCESSES TO IDENTIFY TRADE -RELATED NEEDS AT THE INDIVIDUAL COUNTRY 
LEVEL  
 
47. In view of the wide variation in country situations, a country -specific approach to needs 
assessment will be necessary in order to identify both the priority needs of individual countries 
and the additional assistance required in each case. This effort sho uld take into account the 
needs of the private sector.  
 
48. For countries that are part of a regional integration scheme and would wish their 
national approaches to be complimented by a regional needs assessment approach, the latter 
should also be underta ken. 
49. Aid for Trade should allow policy flexibilities and national ownership as mandated in the 
Paris Declaration of June 2005. Adopted at the High -Level Forum on Aid Effectiveness (March 
2005) the Paris Declaration on Aid Effectiveness has been prepare d with broad participation 
from development practitioners, through a process coordinated by the High -Level Forum 
Steering Committee. The declaration outlines a set of joint commitments and targets for 
governments and multilateral donors to reach over the n ext five years.  
 
 
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