WT/COMTD/SE/W/22/Rev.8  
 
10 May 2017  
(17-2501) Page: 1/45 
Committee on Trade and Development  
Dedicated  Session    
 
WORK PROGRAMME ON SM ALL ECONOMIES  
COMPILATION PAPER PR EPARED BY THE SECRET ARIAT  
Revision  
I. INTRODUCTION  ................................ ................................ ................................ ....... 4 
II. MANDATE AND LEGAL FRAM EWORK  ................................ ................................ ........  4 
A. PARAGRAPH 35 OF THE DOHA MINISTERIAL DECLARATION – 
WT/MIN(01)/DEC/1 (20 NOVEMBER 2001)  ................................ ................................ ..... 4 
B. PARAGRAPH 2 OF THE WORK P ROGRAMME 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 DECEMBER 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. DECISIONS  ................................ ................................ ................................ ..............  6 
A. MINISTERIAL CONFERENCES  ................................ ................................ ..................  6 
1. Work Programme on Small Economies, WT/L/844 (17 Decemb er 2011)  ................  6 
2. Work Programme on Small Economies, WT/L/908 (7 December 2013)  ..................  6 
3. Work Programme on Small Economies, WT/L/975 (19  December 2015)  ................  7 
B. COMMITTEE ON TRADE AND DEVELOPMENT DEDICATED SESSION ON 
SMALL ECONOMIES  ................................ ................................ ................................ ..........  7 
1. 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)  ................................ ................................ .... 7 
2.  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 
3. 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 
C. COMMITTEE ON SUBSIDIES AND COUNTERVAILING MEASURES  ...........................  14 
1. Report (2010) of the Committee on Subsidies and Countervailing Measures 
- G/L/937 (29 October 2010)  ................................ ................................ ........................  14 WT/COMTD/SE/W/22/Rev.8  
 
- 2 - 
 
  2. 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)  ................................ ................  14 
IV. TRADE NEGOTIATIONS COMMITTEE  ................................ ................................ ...... 20 
A. SMALL, VULNERABLE ECONOMIES (SVES) CONTRIBUTION FOR THE POST 
BALI WORK PROGRAMME – JOB/TNC/49 (17 June 2015)  ................................ ..............  20 
V. COMMITTEE ON AGRICULTURE - SPECIAL SESSION  ................................ ..............  22 
A. CURRENT MODALITIES DRAFT  ................................ ................................ ...............  22 
1. Revised Draft Modalities for Agriculture - TN/AG/W/4/Rev.4 (6 December 
2008)  ................................ ................................ ................................ .............................  22 
B. LATEST SVE SUBMISSIONS  ................................ ................................ ...................  24 
2. Flexibi lities 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)  ................................ ........  24 
3. The Special Safeguard Mechanism (SSM) Modalities to Apply 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 Ma rch 2011)  ................................ ................................  25 
VI. NEGOTIATING GROUP ON MARKET ACCESS FOR NON AGRICULTURAL 
PRODUCTS  ................................ ................................ ................................ .....................  31 
A. CURRENT MODALITIES DRAFT  ................................ ................................ ...............  31 
1. Fourth Revision of Draft Modalities for Non -Agricultural Market Access – 
TN/MA/W/103/Rev.3 (6 December 2008)  ................................ ................................ .... 31 
B. LATEST SVE SUBMISSIONS  ................................ ................................ ...................  32 
1. Contribution to the Special and Differential Treatment and Technical 
Assistance Provisions on the "Horizontal Mechanism", Communication from El 
Salvador on behalf of Small Vulnerable, E conomies - JOB/MA/89 (19 April 
2011)  ................................ ................................ ................................ .............................  32 
2. Questions to the co -sponsors of the proposal of "Ministerial Decision on 
procedures for the facilitation of solutions to Non -Tariff Barriers", 
Commun ication from the group of small vulnerable economies – JOB/MA/55 (3 
November 2010)  ................................ ................................ ................................ ............  32 
3. Questions to the co -sponsors of  the proposal of  "Negotiating Text on 
Liberalizing Trade in Remanufact ured Goods", Communication from the group of 
small vulnerable economies – JOB/MA/56 (3 November 2010)  ................................ ..... 33 
VII.  COUNCIL FOR TRADE IN SERVICES SPECIAL SESSION  ................................ ..........  34 
A. CURRENT DRAFT TEXT  ................................ ................................ ...........................  34 
1. Elements Required for the Completion of the Services Negotiations, Report 
by the Chairman - TN/S/34 (28 July 2008)  ................................ ................................ ... 34 
VIII.  WORKING PARTY ON DOMESTIC REGULATION  ................................ ......................  35 
1. Services - Trade -Related Concerns of Small, Vulnerable Economies in the 
Working Party on Domes tic Regulation - JOB(06)/66/Rev.2 (10 July 2006)  .................  35 
IX. NEGOTIATING GROUP ON RULES  ................................ ................................ ..........  37 
A. CURRENT DRAFT TEXT  ................................ ................................ ...........................  37 
1. 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)  ................................ .....................  37 WT/COMTD/SE/W/22/Rev.8  
 
- 3 - 
 
  2. 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)  ................................ .............................  40 
3. 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 t he Chair in 
TN/RL/W/213 - TN/RL/GEN/158 (22 May 2008)  ................................ ..........................  40 
X. COMMITTEE ON TRADE AND ENVIRONMENT  ................................ .........................  41 
A. CURRENT DRAFT TEXT  ................................ ................................ ...........................  41 
1. 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 ) ................................ ........................  41 
XI. NEGOTIATING GROUP ON TRADE FACILITATION  ................................ ..................  42 
A. CURRENT DRAFT TEXT  ................................ ................................ ...........................  42 
1. Draft consolidated negotiating text - TN/TF/W/165/Rev. 5 (5 November 
2010)  ................................ ................................ ................................ .............................  42 
XII.  AID FOR TRADE TASK FORCE  ................................ ................................ .................  42 
1. Aid for Trade - WT/AFT/W/18 (15 June 2006)  ................................ .....................  42 
 WT/COMTD/SE/W/22/Rev.8  
 
- 4 - 
 
  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 Dedicated 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 report s and draft texts circulated to date by the various Chairs of the DDA 
negotiating groups.3  
 
 The paper was expanded in document 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.  To date, five revisions have been issued to 
reflect the evolution of the texts and proposals discussed and to take stock  of any WTO decisions 
reached. The fifth revision reflects only the latest texts and decisions and does not provide details 
of how these texts evolved since this is r eflected in previous versions. The sixth revision contains 
further revisions made to the proposals since November 2010 and aims to provide Members with 
an ove rview of the current state of play of issues concerning the proponents of small economies. 
The paper 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 rela ting 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 o f 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 MARCH  2002)  
In pursuance of this mandate, the Work Programme shall 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 s hall 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 multila teral trading 
system.  
 
(d) The General Council shall instruct 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 w ork in the 
dedicated sessions.  
                                                
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/22/Rev.8  
 
- 5 - 
 
   
(f) The Chairperson of the regular CTD shall also be the Chair for the dedicated sessions 
of the CTD.  
 
(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, direc t relevant subsidiary bodies to frame responses to 
the trade -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 t o 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 on 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 req uest 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 fuller integration of small, vulne rable 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 MINI STERIAL 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, 
vulnerable economies into the mul tilateral 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 recommendat ions 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' proposals 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.8  
 
- 6 - 
 
  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 considera tion shall be given to proposals on trade -related concerns of small economies.  
 
III. DECISIONS  
A. MINISTERIAL CONFERENCES  
1. Work Programme on Small Economies, WT/L/844 (17 December 2011)  
The Ministerial Conference decides  as follows:  
 
We reaffirm our comm itment 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 overa ll 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 identified 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 item (k) of paragraph 2 of the Work Pr ogramme 
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 General Council to report on progres s and action taken, together with any 
further recommendations as appropriate, to our next Session.  
 
2. Work Programme on Small Economies, WT/L/908 (7 December 2013)  
 The Ministerial Conference decides  as follows:  
 
We reaffirm our commitment to the Work Pro gramme 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, w e 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.  
 WT/COMTD/SE/W/22/Rev.8  
 
- 7 - 
 
  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 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 Eco nomies and, in 
particular, the challenges and opportunities experienced by small economies when linking 
into global value chains in trade in goods and services.  
 
3. 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 and its previous revisions reflect the work of the Dedicat ed 
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 instru ct 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 direct relevant subsidiary bodies to frame responses to th e 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 when 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 progr ess 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 of SVEs in 
the multilateral trading system.  
 
 
B. COMMITTE E ON TRADE AND DEVELOPMENT DEDICATED SESSION ON SMALL 
ECONOMIES4  
1. Report to the General Council on Measures to Assist Small Economies in Meeting 
their Obligations under the Agreements on SPS Measures, TBT and TRIPS5 - 
WT/COMTD/SE/5 (3 October 2006)  
1. In paragraph 35 of the Doha Ministerial Declaration6, 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 is sues 
identified for the fuller integration of small, vulnerable economies into the multilateral 
trading system, without creating a sub category of WTO Members.  
 
                                                
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 and; WT/COMTD/SE/8.  
5 The General Council, at its meeting of 10 October 2006, agreed to the recommendat ions and 
understandings contained in paragraph 6 of the report.  
6 WT/MIN(01)/DEC/1.  WT/COMTD/SE/W/22/Rev.8  
 
- 8 - 
 
  2. On 1 March 2002, the General Council took note of a framework and procedures for 
the conduc t of the Wo rk Programme on Small Economies7 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 2004 Decision of the General Council.8 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 o f small 
economies into the multilateral trading system.9  
 
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 mult ilateral 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 (SP S) 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 implementat ion of their obligations in the SPS, TBT and TRIPS Agreements and sought 
explicit approval from Members to do so.  The pr oposals underwent two revisions10 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 i ntention to modify, amend 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 discussio ns 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 o f SPS, TBT and TRIPS, and thereby facilitate their fuller integration 
into the m ultilateral trading system.  Accordingly, and in pursuance of the provisions of 
paragraph 41 of the Hong Kong Ministerial Declaration, the CTD in Dedicated Session 
recommends th at the General Council agrees that small economies are allowed to use such 
regional bodies to assist 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 technical 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 understood that individual Members benefiting from these recommendations will 
continue to be legally responsible and accountable for their individual notifications and other 
obligations 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 cou ntry Members.  
                                                
7 WT/L/447.  
8 WT/L/579.  
9 WT/MIN(05)/DEC, paragraph 41.  
10 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/Re v.2. WT/COMTD/SE/W/22/Rev.8  
 
- 9 - 
 
  2.  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 decision 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 Dedicated 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 trad e 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"11 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  the 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 thei r survey 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 impo rtant 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 conversation on the particularities. In 
this session, s ubstantive discussions will follow the elements from the results of the Aid for Trade 
at a Glance 2015 publication.  
 
2.5 The second session will focus on the actions and policies associated with the most positive 
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 participation 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.  
                                                
11 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.8  
 
- 10 - 
 
  3. Outcomes from Discussions on the “Challenges and Opportunities Experienced by 
Small Economies when L inking 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 an d 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/COMT D/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 were 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 chal lenges 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 different 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 s mall 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.  
 There are many challenges in identifying the gaps towards integration and moving up the 
value chains.  
 The main obstacles for SV E 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 underde veloped 
and inappropriate technology for product development and packaging.  WT/COMTD/SE/W/22/Rev.8  
 
- 11 - 
 
   External fluctuations in supply and demand.  
 Poor Research and Development capacity.  
 Disorganized production chains -i.e. increase in fragmentation of production.  
 Lack of Transparenc y 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 th e 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 del ay. The 
information should be limited to what is necessary and the fees should reflect the 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 improved 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 i nvestment is needed to control plant pests and animal diseases such as avian 
influenza, foot 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 the 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 islan ds 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 integration, since the 
production is concentrated in a few countries, given that not all countries are capable of 
making significant investments.  
 Working conditions are often overlook ed by companies trying to be competitive by reducing 
costs.  
 Challenges of preference erosion and relocation of investors to cheaper markets.  WT/COMTD/SE/W/22/Rev.8  
 
- 12 - 
 
  Recommendations  
 
 In spite of relocation due to increases in costs related to labour, the best way to stay 
compe titive 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 diversify 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 a ble 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 target markets or with multinationals established in 
the domestic market.  
2.3  Tourism Value Chains  
 
Challenges  
 
The following challeng es 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 of skills in the private sector.  
 Accessibility.  
 
The following additional challenges were identified by Member States:  
 
 Small populat ion 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 govern ment taxation and other regulations.  
 Limited domestic capital for investment.  
 High costs of infrastructure and services.  
 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 skill.  
 "A disconnect" between trade and tourism. Poor institutional links between the ministries of 
trade and ministries of tourism.  WT/COMTD/SE/W/22/Rev.8  
 
- 13 - 
 
   
Recommen dations  
 
 FDI to help upgrade the size and quality of infrastructure.  
 Conservation of the natural resources.  
 An engaged 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 appropriate regulatory frameworks.  
 Deepening or expanding tourism products as well as diversifying to new markets.  
 Strengthening the specific i nstitutions dealing with the tourism sector.  
 Invest in staff training.  
 A transparent and predictable FDI regime to attract 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 sa tellite 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 prog rammes.  
 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 logisti cs 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 effic iency 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 resources 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.  WT/COMTD/SE/W/22/Rev.8  
 
- 14 - 
 
   Inefficient customs systems.  
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 inst ruments.  
 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 transa ctions.  
 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 polic ies encouraging decentralization to avoid the concentration of 
development of the sector only in the cities.  
 Promote innovation.  
C. COMMITTEE ON SUBSIDIES AND COUNTERVAILING MEASURES  
1. Report (2010) of the Committee on Subsidies and Countervailing Measur es - 
G/L/937 (29 October 2010)  
19. 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 year 2011 the  extensions of the transition period that the Committee 
had previously granted for calendar years 2003 -2010.12  
 
2. 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 an d Count ervailing Measures of 
13 July 2007 (G/SCM/120)  
ARTICLE 27.4 OF THE AGREEMENT ON SUBSIDIES AND  
COUNTERVAILING MEASURES  
 
Decision of 27 July 2007  
 
                                                
12 The Committ ee 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).  WT/COMTD/SE/W/22/Rev.8  
 
- 15 - 
 
  The General Council,  
 
 Having regard  to Articles IV:1 and 2 and IX:1 of the Marrakesh Agreement Establishing th e 
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 "Committ ee"), as directed by the Ministerial Conference13 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;14  
 
 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 elimination of expo rt 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 follow ing 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 proce dures 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 programmes, 
identified in the Annex.15   
 
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 effect 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 Committee pursuant to 1(d) of G/SCM/ 39.16  
 
(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 pursuant to 1(a) and for which the 
Committee has verified, in its annual review conducted pursuant to G/SCM/3917, that 
                                                
13 Ministerial Decision on Implementation -Related Issues and Concerns, (WT/MIN(01)/17), 
paragraph  10.6.   
14 See documents G/SCM/W/535 a nd G/SCM/W/537 and addenda.   
15 The programmes eligible for continuations of extensions under these procedures are programmes 
providing export subsidies in the form of full or partial exemptions from import duties and internal taxes for 
which the SCM Commi ttee continued extensions of the transition period under SCM Article  27.4 for calendar 
year 2007 pursuant to the procedures in G/SCM/39.  
16 At the regular meeting of the Committee in April 2007, these Members were reminded to submit their 
updating notificat ions by 30 June 2007.   
17 The procedures in G/SCM/39 shall cease to be effective upon completion of this 2007 annual review.  WT/COMTD/SE/W/22/Rev.8  
 
- 16 - 
 
  the transparency and standstill requirements under G/SCM/ 39 were fulfilled during 
2006.  
 
(c) As provided for in SCM Article 27.4, the continuation 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 notif ications 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 the period 2008 -2012, Members of t he 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.18 The "l ast 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 peri od 
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 January 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 b e conducted in 2010.19 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 
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 follow the agreed format for subsidy 
notifications under SCM Artic le 25 (found in G/SCM/6/Rev.1).  Beginning wi th the 
updating notifications covering calendar year 2008, notifying Members also shall 
provide information regarding the actions they have ta ken pursuant 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 scope, coverage 
                                                
18 This extension mechanism shall cease to be effective upon completion in 2012 of the annual review 
by the Committee to continue th e extensions for calendar year 2013, such that there will be no basis for 
requests for extension beyond those foreseen in this Decision.   
19 The action plan shall indicate how the Member intends to eliminate export subsidies under the 
programme not later t han the end of the final two -year phase -out period provided for in the last sentence of 
SCM Article  27.4, including information as to legislative changes, administrative amendments and/or other 
procedures as may be necessary, and whether any of these actio ns have been undertaken or are in the process 
of being undertaken, including how the individual beneficiaries have been notified pursuant to 1(e).  WT/COMTD/SE/W/22/Rev.8  
 
- 17 - 
 
  and intensity of benefits (the "favourability") of the programmes in question20 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 requests 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 r eview 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 for which extensions are continued under these 
procedures shall not be modified so as to make them more fav ourable than they were 
as at 1 September 2001, as specified in the notified information previously submitted 
pursuant to the procedures in G/SCM/39. The 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 bas is of export competitiveness  
Notwithstanding these procedures, Articles 27.5 and 27.6 shall apply in respect of export 
subsidies for which extensions are continued pursuant to these procedures.  
 
5. Members listed in Annex VII(b) which reserved rights purs uant 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/3921 reaches the level provided for i n 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 procedures 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 GNP per capita reaches the level provided for in Annex VII(b) such that it  is 
no longer included in Annex  VII(b).   
                                                
20 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.   
21 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/KE N, and G/SCM/N/74/LKA.  WT/COMTD/SE/W/22/Rev.8  
 
- 18 - 
 
  ANNEX  
LIST OF PROGRAMMES ELI GIBLE FOR CONTINUATION OF EXTENSIONS  
UNDER THE PROCEDURES22, 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 Trad e and Processing Zone Act No. 12 of 1994 (G/SCM/51/Add.4)  
 
Barbados  
• Fiscal Incentive Programme (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 Chaguar amas (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 an d Expand Existing Ones" 
(G/SCM/64/Add.4)  
 
El Salvador  
• Export Processing Zones and Marketing 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/6 7/Add.4)  
• The Income Tax Act (Film Making and Audio Visual Incentive Amendment Decree 2000) 
(G/SCM/68/Add.4)  
                                                
22 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 the 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, a nd (iii) which are provided by developing country Members (iv) whose share of world 
merchandise export trade was not greater 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 bi llion, (vi)  and who are otherwise eligible to 
request an extension pursuant to Article 27.4, and (vii) in respect of which 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/22/Rev.8  
 
- 19 - 
 
  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 Enterpris es 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 P roduction 
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 Industria l 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 Generated 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 amended (G/SCM/91/Add.4)  
 
Uruguay  
• Automotive Industry Export Promotion Regime (G/SCM/92/Add.4)  WT/COMTD/SE/W/22/Rev.8  
 
- 20 - 
 
  IV. 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.  
 
_______________  
 
 
INTRO DUCTION  
 
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 fram e 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."23 
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 ec onomies 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 trade, minimal 
share of global fisheries catch, small participatio n 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 programme 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.24 
 
Recalling Paragraph 1.11 of the Bali Ministe rial Declaration that provides:  
 
"… we instruct the Trade Negotiations Committe e to prepar e within the next 
12 months a clearly defined work program on the remaining D oha Development Agenda 
issues".25  
The SVEs group submits the following contribution to the definition of the Work Program me:  
 
GENERAL PRINCIPLES  
 
The following are the general pr inciples 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 negotiation process: Bottom -up, transparent and inclusive 
process, Mem ber driven process and less than full reciprocity.  
 
                                                
23 Doha WTO Ministerial Declaration. WT/MIN(01)/DEC/1, 20 November 2001.  
24 Work Programme on Small Economies , Ministerial Decision (WT/MIN(13)/33 or WT/L/908).  
25 WT/MIN(13)/DEC.  WT/COMTD/SE/W/22/Rev.8  
 
- 21 - 
 
  3. Special and Differential Treatment (SDT) should be an integral component in all areas 
of the Work Program me. 
 
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 flexibilities 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 ELEM ENTS  
 
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.426, Paragraphs 65, 112, 
127, 130, 144, 157, 158.  
 
Domestic Support : Enhanced flexibilities for de minimis, overa ll 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 Credits27, Export prohibitions and restrictions28, 
Food Aid29, and State Trading Enterprises30. (JOB/AG/16).  
 
• Cuba’s proposal on Export Credits .31   
 
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 v oluntary 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 H ong Kong 
Declaration Articles XIX.2 and in the Guidelines and Procedures on the Negotiations in Trade in 
Services.  
 
Domestic regulation : Enhanced SDT for SVEs.  
 
                                                
26 TN/AG/W/4/Rev4. Revised Draft  Modalities for Agriculture . 
27 TN/AG/W/4/Rev4. Paragraph 5 of Annex J, and JOB/AG/16.  
28 Idem, paragraphs 180, and JOB/AG/16 . 
29 Idem,  paragraph 12 of Annex L, and JOB/AG/16.  
30 Idem, paragraph 6 of Annex K, and JOB/AG/16.  
31 TN/AG/GEN/31 . WT/COMTD/SE/W/22/Rev.8  
 
- 22 - 
 
  We reiterate 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.  
 
Fisheries Subsidies:  
 
Additional Flexibilities for Small and Vulnerable Economies under article III of the proposed 
draft Chair’s text on fisheries subsi dies, 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 proposed exemptions to the prohibited subsidies under Article I.  
 
TN/RL/GEN/162/Rev.1 sought so me 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 forms 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 special and differential treatment based on minimum disciplines on 
fisheries subsidies to addr ess 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.  
 
V. COMMITTEE ON AGRICULTURE - SPECIAL SESSION  
A. CURRENT MODALITIES DRAFT  
1. 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 f inal 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 reduction shall be 2/3 of the cut for developed country 
Members in paragraph 6 1(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 
country Me mbers in paragraph 61(c) above;  and 
 
(d) where the final bound tariff o r 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 economies32, including those among them which are ceiling 
binding and homogenously low b inding countries, which choose to exercise the option set 
                                                
32 The Members concer ned are those that meet the criteria set out in paragraph 151 and are  listed in 
Annex  I. As is made clear in the Agreed Framework, Small Vulnerable Economies (SVEs) are not meant to 
create any sub -category of Members. Bearing that principle in mind, the fo llowing 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:  Republi c of Congo, Côte d'Ivoire and Nigeria (plus other Members that can provide data that WT/COMTD/SE/W/22/Rev.8  
 
- 23 - 
 
  forth in paragraph 130 below shall be entitled to moderate the cuts specified in paragraph 
63 above by a further 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 indicators33 based on the criteria of food security, livelihood 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 Members 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 chose not to apply 
the tiered formula but simply meet an overall average cut of 24 % through ha ving 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 modalities, 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 
increa se 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 
tariff lines in any given period. This would be provided that all other relevant con ditions for 
application of the measure have been met.  
 
145. For developing country Members 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 would 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 prov ision would be invoked would be no more than 2 -634 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, t his 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 agr icultural product s of no more than 0.4 %. 
 
                                                                                                                                                  
show that they meet t he criteria 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 average 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.  
33 See Annex F . 
34 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 th is can entail a maximum of [4 - 8] tariff lines 
per product  below that 6 -digit level.  WT/COMTD/SE/W/22/Rev.8  
 
- 24 - 
 
  158. Developed country Members and developing 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.  
 
B. LATEST SVE SUBMISSIONS  
2. Flexibilities in the Agricultural Modalities on the Pillars of Domestic Support and 
Export Competition, Communication by the Group of Smal l and Vulnerable Economies 
(SVEs) - JOB/AG/16 (24 March 2011)  
1. This proposal is submitted with the objective of securing flexibilities for those Small 
Vulnerable Economies (SVEs), including non resident delegations, that are not currently listed as 
Net F ood Importing Developing Countries (NFIDCs).35  
 
2. The SVEs believe that in the agricultural 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 Economies, 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 to 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 
generates 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 m embers in the 
pillars of domestic support and export competition becomes an essential 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 amon gst those who have given relatively small amounts of support to their 
agricultural sector 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 agri culture negotiations and believe that the 
current Draft Modalities contained in document 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 issu es, but that the flexibility that 
we are pursuing can be reflected in the form of footnotes 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 proposals : 
 
Paragraph 10, amend the footnote as follows : 
 
"2 Antigua and Barbuda, Belize, Bolivia , Cameroon, Congo (Brazzaville), El Salvador, Fiji , 
Ghana, Grenada, Guatemala, G uyana, Maldives, Nicaragua , Nigeria, Suriname  and 
Swaziland shall have access also to this provision."  
 
                                                
35 Antigua and Barbuda, Belize, Bolivia, El Salvador, Fiji, Grenada, Guatemala, Guyana, Maldives, 
Nicaragua, Papua New Guinea and Suriname.  WT/COMTD/SE/W/22/Rev.8  
 
- 25 - 
 
  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.  
 
Paragraph 180, amend the footnote as follows:  
 
"29 Antigua and Barbuda, Belize, Bolivia , Cameroon, Congo (Brazzaville), El Salvador, Fiji,  
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 r espect 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 footnote 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 dire ct 
nutritional requirements of least -developed and 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 Barbuda, Belize, Bolivia, El Salvador, Fiji, Grenada, Guatemala, 
Guyana, Maldives, Nicaragua, Papua New Guinea and Suriname shall have access 
also to this provision.  
 
3. The Special Safeguard Mechanism (SSM) Mo dalities to Apply to Small Vulnerable 
Economies (SVEs), Communication by the Group of Sm all Vulnerable Economies 
(SVEs)36, the African, Caribbean and Pacific (AC P) Group, and the African Group37 - 
JOB/AG/17 (24 March 2011)  
1. The Group of Small Vulnerable Ec onomies (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 efforts 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 Febr uary 2009 (TN/AG/GEN/29) which 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, AC P, and the African Group Members 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 
                                                
36 This submission is without pr ejudice to the negotiating positions of the Group of Least -Developed 
Countries.  It is recognised that, in accordance with the established principle of differentiated treatment, LDCs 
shall have more flexible treatment than SVEs.  
37 This submission is withou t prejudice to the negotiating positions of the SVEs, ACP and the African 
Group.  Countries reserve the right to submit further proposals elaborating on Group or individual needs.  WT/COMTD/SE/W/22/Rev.8  
 
- 26 - 
 
  treatment for the SVEs with in 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 submissi ons should be 
read in conjunction 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 to out line the specific treatment for 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 clarif y 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 
multilater al trading system.  
 
6. The rationale 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 volume 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 imports 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 during 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 appl y notwithstanding that the pre -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 the most recent three -year period prece ding 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 international 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.  
 WT/COMTD/SE/W/22/Rev.8  
 
- 27 - 
 
  New Paragraph 136 bis 
 
In the case of SV Es 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 reference38 price.  
 
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 may apply the 
maximum remedy provided fo r 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.39  
                                                
38 See Footnote 26 of TN/AG/W/4/Rev.4.  
39 The Plurinational State of Bolivia i s 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.8  
 
- 28 - 
 
  ANNEX I  
SMALL, VULNERABLE ECONOMIES  
 
1. The data are based on the methodology that was used to prepar e 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 sig nificant 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 import s, but this does n ot change the overall results40. 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 whose av erage share for the period 
1999-2004 (a) of world merch andise 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 Unite d Nations Economic and Social Council and those Members for which no data 
are available.
                                                
40 Cif-fob factors were estimated based on the ratio of imports to exports for a matched group of 
reporters in Comtrade.  World imports by co mmodity group were derived by applying these cif -fob factors to 
the WTO's world exports by commodity 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.8  
 
- 29 -  Share of total merchandise trade 
(%) Share of world agriculture (AOA) 
trade (%)  Share of non -agriculture (NAMA) 
trade (%)  
WTO Member  Total 
(exports + 
imports  Export s 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.8  
 
- 30 -  Share of total merchandise trade 
(%) Share of world agriculture (AOA) 
trade (%)  Share of non -agriculture (NAMA) 
trade (%)  
WTO Member  Total 
(exports + 
imports  Export s 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 Gu inea 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.8  
 
- 31 - 
 
  VI. NEGO TIATING GROUP ON MARKET ACCESS FOR NON AGRICULTURAL PRODUCTS  
A. CURRENT MODALITIES DRAFT  
1. Fourth Revision of Draft Modalities for Non -Agricultural Market Access – 
TN/MA/W/103/Rev.3 (6 December 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 reduction 
instead of the fo rmula modality which is contained in paragraphs 5, 6 and 7 above.  
 
(a) Members with a bound tariff average of non -agricultural tariff lines41:  
 
(i) at or above 50% shall bind all of their non -agricultural tariff lines at an average 
level that does not exc eed 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 -agricul tural 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 that 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 XXVI II 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 
maintai n 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 implemented in 
11 equal rate reductions. The first red uction 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, except for lines 
covered under 13(e) where the first r eduction 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 applied on those lines on which accession commitments are n ot 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.  
 
                                                
41 See document TN/MA/S/4 and Corr.1 for the bound tariff averages of Members . WT/COMTD/SE/W/22/Rev.8  
 
- 32 - 
 
  (f) All duties shall 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.  
 
B. LATEST SVE SUBMISSIONS  
1. Contribution to the Special and Differential Treatment and Technical Assistance 
Provisions o n 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 w ritten 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 implementa tion 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 f ormulation 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 paragraph 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. Implementatio n of technical assistance and/or capacity building agreed as part 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 eco nomies – JOB/MA/55 (3 November 2010)  
1) While understanding that 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 this 
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 
applic ation of the Mechanism?  
 
2) Do proponents envisage the possibility 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 shoul d take place once the mechanism is invoked, as one 
possible provision of SDT?  WT/COMTD/SE/W/22/Rev.8  
 
- 33 - 
 
   
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 its implementation, what is the relationship of 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 Remanufact ured 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 env isaged 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 Progra mme?  
 
3) Within the possible implementation of this decision, how 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" processes 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 levi es 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 domestic 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 conditi ons 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 importance 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 
decision 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.8  
 
- 34 - 
 
  VII. COUNCIL FOR TRADE IN SERVICES SPECIAL SESSION  
A. CURRENT DRA FT TEXT  
1. Elements Required for the Completion of the Services Negotiations, Report by the 
Chairman - TN/S/34 (28 July 2008)42   
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.  
                                                
42 At the meeting 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 del egations at the Special Session.  
"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 make 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 de veloped countries and the small and 
vulnerable economies."  
 WT/COMTD/SE/W/22/Rev.8  
 
- 35 - 
 
  VIII.  WORKING PARTY ON DOMESTIC REGULATION  
1. Services - Trade -Related Concerns of Small, Vulnerable Economies in the Working 
Party on Domestic Regulation - JOB(06)/66/Rev.2 (10 July 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 Grenadines 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 legislat ion to meet 
Members' national policy objectives.  
 
(ii) Developing country Members shall implement the disciplines that require adjustment 
of existing domestic regulation and/or the adoption of new implementation 
mechanisms to the extent consistent with the ir financial, administrative and 
institutional capabilities and according to their size and level of development.  
 
(iii) Developing country Members shall be accorded adequate time frames to upgrade their 
legislative, regulatory, administrative and institu tional capacity to implement these 
disciplines. Members shall provide technical 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 on ly 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 establishment 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 sha ll include where possible, the opportunity to fulfil such requirements by 
the 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 q ualification 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. QUALIFICATI ON 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 an d practical 
mechanisms for recognizing as being comparable, education or experience obtained, WT/COMTD/SE/W/22/Rev.8  
 
- 36 - 
 
  requirements met, or licences or certifications granted in the territory of another 
Member.  
 
(iv) To ensure that qualification procedures do not in themselves co nstitute barriers to 
trade, Members shall provide technical assistance and capacity building assistance in 
order to help developing country Members and their suppliers meet such procedures.  
 
D. LICENSING REQUIREMENTS  
 
(i) Fees charged by the competent auth orities 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 suppliers meet such 
requirements.  
 
E. LICENSING PROCEDURES  
 
(i) Members sh all ensure that licensing procedures applied by its competent authorities 
are of minimal complexity and entail minimal costs for meeting requirements and 
fulfilling procedures for entry into export markets. Members may grant reduced 
licensing and other rel ated 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 technical assistance and capacity building assistance in order to 
help devel oping 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 an d 
application of measures relating to national or international technical standards 
relating to services and service providers.  
 
(ii) Members shall, where requested, grant other Members, especially developing country 
Members, technical assistance on mutual ly 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 en sure access for service suppliers of other Members to relevant 
information on legislative, regulatory and administrative measures relating to 
qualification requirements and procedures, 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.8  
 
- 37 - 
 
  IX. NEGOTIATING GROUP ON RULES  
A. CURRENT DRAFT TEXT  
1. Textual Proposal for Additional Flexibilities for Smal l 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)  
I. INTRODUCTION  
 
1. The co -sponsors of this proposal are all proponents of the WTO Work Programme on Small 
Economie s which has its mandate in Paragraph 35 of the Doha Ministerial Declaration43 and 
Paragraph 41 of the Hong Kong Ministerial Mandate.44 The co -sponsors recall WTO document 
TN/RL/W/242 which represents 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 sub sidies in the fisheries sector, including through the prohibition of 
certain  forms of fisheries subsidies that contribute to overcapacity and over -fishing ...".  We also 
recall the Chair's roadmap for discussions which calls on the Negotiating Group to "wo rk 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 de veloping 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 position to provide subsidies. In this context, it is well -known that SVEs 
have a negligible impact on overcapaci ty and overfishing.   
 
- In contrast, several SVEs are characterised by heavy economic dependence on the 
fisheries sector. Thus, any disciplines would have profound implications for the 
maintenance of basic livelihoods, economic survival and sustainable de velopment.   
 
- 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 soluti ons 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.   
                                                
43 "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 trad e-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 ac tion to the Fifth Session of the Ministerial Conference."  
44 "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 th e 
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 ecom mendations 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' proposals in the negotiati ng 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  Decem ber 2006. We instruct the General Council to report on progress and action taken, together with 
any furthe r recommendations as appropriate, to our next Session."   WT/COMTD/SE/W/22/Rev.8  
 
- 38 - 
 
  5. The SVEs have attempted to inco rporate their special circumstances in the current 
architecture of the proposed Chair's text45, as is proposed in Section II below, for the consideration 
of all Members.  
 
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 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 b e 
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 tha n 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, identifie d target 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 e xceed 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").46  
 
III. TECHNICAL NOTES TO EXPLAIN THE PROPOSED REVISIONS UNDER SECTION II  
 
- Share o f 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 Agriculture, 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% a lso 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 catch les s 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. This pr oposal 
only seeks for some additional flexibility for SVEs with respect to the proposed exemptions to the 
prohibited subsidies under Article I.   
                                                
45 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 .   
46 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.8  
 
- 39 - 
 
  ANNEX 1  
List of SVEs with Share of World NAMA Trade of less than 0.1% and whosepercentage 
share of global mar ine 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  
Mongol ia (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 an d 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 in 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.8  
 
- 40 - 
 
  2. 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)  
 
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 exclusively for marine wild capture fishing 
employing decked vessels not greater than 10 meters or 34 feet in length 
overal l, 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 sh are 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 
vessel s are used exclusively for marine wild capture fishing activities of such Members in respect 
of particular, identified target stocks within their Exclusive Economic Zones ("EEZ"); (ii) those 
stocks have been subject to prior scientific status assessment co nducted 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 Ag riculture Organization ("FAO").47  
 
3. 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)  
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 particular as regards the conditions and criteria set forth in 
this Article and in Articles V ("Fisheries Management") and VI ("Notification s 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 
Members 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 t hrough other mechanisms of relevant international 
and regional organisations.   
 
III.4.3 The Committee on Subsidies and Countervailing Measures shall establish a 
Sub-Committee dealing exclusively with issues related to technical assistance and support 
                                                
47 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.8  
 
- 41 - 
 
  programs under this Annex, specifically as regards fisheries management systems and 
measures related thereto. The Sub Committee shall coordinate the requests from developing 
country Members for technical assistance and support programs and shall review the 
effectiveness of the technical assistance provided to developing country Members.48 The 
Sub-Committee shall periodically report its findings to the Committee on Subsidies and 
Countervailing Measures and the Committee on Trade and Development.49  
 
X. COMMITTEE O N TRADE AND ENVIRONMENT  
A. CURRENT DRAFT TEXT  
1. Views of the Small Vulnerable Economies on the Negotiations of Paragraph 31(III) 
of the Doha Ministerial Declaration, Communication from the Small, Vulnerable 
Economies50 - JOB/TE/18 (1 April 2011)  
1. This pr oposal 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 that 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 c ountry has the right to take measures deemed appropriate for, inter alia, 
the protection of the environment, provided that these measures do not constitute a means of 
arbitrary discrimination between countries where the same conditions prevail.51 
 
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 natura l 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 Work 
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 th e small economies' proposals in the 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 line 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 
environment.  
 
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 t o maintain policies that will allow 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.  
 
                                                
48 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 technical 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 . 
49 Future discussion would be required on the procedures to be followe d if a developing country member 
does not receive the requested technical assistance.   
50 This communication is without prejudice to the final position that the SVEs will take regarding 
negotiations on trade and environment, including with regards to paragr aph 31(iii) of the Doha Ministerial 
Declaration. The SVE Group and its individual members, reserve the right to submit further communication on 
this issue.  
51 From paragraphs 3 and 6 of the Doha Ministerial Declaration.  WT/COMTD/SE/W/22/Rev.8  
 
- 42 - 
 
  6. In any event, the 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 mainta ins 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.  
 
7. Finally, the SVEs would like to stress and r eiterate the importance of technical assistance, 
capacity building and transfer of technology in these negotiations.  
 
XI. NEGOTIATING GROUP ON TRADE FACILITATION  
A. CURRENT DRAFT TEXT  
1. 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 i mplementation of their obligations under the Trade Facilitation Agreement 
including through the establishment and use of regional bodies.]  
 
XII. AID FOR TRADE TASK FORCE  
1. Aid for Trade - WT/AFT/W/18 (15 June 2006)  
 Proponent :  Barbados  
 
 III. SCOPE FOR A FT  
 
 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, 
resear ch 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 INTERVEN TION 
 
 A. TRADE POLICY AND REGULATIONS  
 
 B. TRADE ADJUSTMENT  
 
 C. TRADE -RELATED INFRASTRUCTURE  
 
 D. TRADE DEVELOPMENT  
 
 E. PRODUCTIVE SUPPLY -SIDE CONSTRAINTS  
 WT/COMTD/SE/W/22/Rev.8  
 
- 43 - 
 
  V. A PRIVATE SECTOR AID FOR TRADE PROGRAMME  
 
29. A special effort should be made to ensure the i nvolvement 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 supporting private sector efforts to export. T he identification of gaps in current 
Official Development Assistance in the trade -related field would be an appropriate starting 
point.  
 
31. The delivery and monitoring of Private Sector AFT programmes should be vested in an 
organization agreed between int erested 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 programme of assistance that is based on 
profes sional 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 part of this approach.  
 
33. An existing inter national 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 recipient 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, additional funding is required. Between 
1994-2004, d evelopment 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 resources 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 that long -term sustainability of the AFT proce ss 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, vulnerable developing countries, aid -for-trade fina ncial 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 multilateral financial institutions (e.g., regional d evelopment 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 re gard 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 situations 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 environment.  
 
C. DURATION AND SUSTAINABILITY OF AFT FUNDING  
 WT/COMTD/SE/W/22/Rev.8  
 
- 44 - 
 
  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 also have to be guaranteed and predictable, and to 
achieve t his 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 sources in the provision of the additional resources.  
 
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 assigned to its highest Council and its 
subsidiary bodies (par ticularly 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 collection and processing of information. 
In addition, a m echanism 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 bilateral, regional and multilateral mechanisms now in operat ion 
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 assistance 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 
existing national and regional mechanisms must be found.  R egional 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. The effective participation of WTO 
Members or their repre sentatives – 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 donors along with experts, and other interested 
parties. T here 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 country coverage, AFT should address the relevant needs of al l 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 should take into 
account the needs of the private sector.  
 
48. For cou ntries 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 undertaken.  WT/COMTD/SE/W/22/Rev.8  
 
- 45 - 
 
  49. Aid for Trade should allow policy flexibilities and nationa l 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 prepared 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 next five years.  
 
 
__________