WT/COMTD/W/218/Rev.1  
 
17 November 2016  
(16-6322) Page: 1/3 
Committee on Trade and Development  Original: English  
 
  
DRAFT TERMS OF REFER ENCE  FOR THE CLINICAL EXA MINATION OF IMPLEMEN TATION 
OF THE DECISION ON T HE DUTY -FREE AND  QUOTA -FREE (DFQF)  
MARKET ACCESS FOR LD CS 
SUBMISSION BY THE D ELEGATION OF BENIN ON BEHALF  
OF THE L EAST DEVELOPED COUNTRIES (LDC S) 
Revision  
The following communication, dated 15 November 2016, is being circulated at the request of 
the delegation of Benin on behalf of the LDC Group.  
 
_______________  
 
1   BACKGROUND  
Under paragraphs (a)(i), (ii) and (b) of Decision 36 on Measures in Favour of Least  Developed 
Countries, contained in Annex F of the Hong Kong Ministerial Declaration of 2005:  
 
"Members should  provide duty -free and quota -free market access on a lasting basis, for all 
products originating from all LDCs by 2008 or no later than the start of the  implementation period 
in a manner that ensures stability, security and predictability .  
 
Members facing difficulties at this time to provide market access as set out above shall provide 
duty-free and quota -free market access for at least 97 % of products o riginating from LDCs, 
defined at the tariff line level, by 2008 or no later than the start of the implementation period. 
In addition, these Members shall take steps to progressively achieve compliance with the 
obligations set out above, taking into account  the impact on other developing countries at similar 
levels of development, and, as appropriate, by incrementally building on the initial list of covered 
products . 
 
Members shall notify the implementation of the schemes adopted under this decision every ye ar to 
the Committee on Trade and Development. The Committee on Trade and Development shall 
annually review the steps taken to provide duty -free and quota -free market access to the LDCs 
and report to the General Council for appropriate action" . 
 
The Bali Mi nisterial Decision (WT/L/919 of 7  December  2013) reiterated these objectives.  
 
It is important to recall that members are at different stages of implementation of the Ministerial 
Decisions on Duty Free and Quota Free Market Access for LDCs. The LDC Group continues to 
experience divisions on how the implementation of DFQF will affect their garment industry.  
 
During the 96th Session of the WTO Committee on Trade and Development, held on 
23 September  2015, Members agreed that a clinical examination would be conducted by the WTO 
Secretariat on the implementation of the decision on duty -free and quota -free market access for 
LDCs. During the session, the Chairman said that it would be necessary to define the parameters 
of the proposed study to be conducted by th e Secretariat. He indicated that a draft outline of the 
study would need to be prepared as soon as possible, after which informal consultations would be 
held. 
 WT/COMTD/W/218/Rev.1  
 
- 2 - 
 
  At the Committee's session on regional trade agreements, held on 16  March  2016, the Chairperson 
provided an update on the implementation of the Committee's decision that the Secretariat would 
carry out the clinical examination. During this session, the C hairman reaffirmed that a written 
proposal from the LDC Group on the parameters of the secretariat  study would help to move the 
process forward.   
 
The delegation of Benin, on behalf of the LDC Group, stated that the Group would submit draft 
terms of reference for the clinical examination at the next session of the Committee on Trade and 
Development.  
 
2  SCOPE AND PARAMETERS  OF THE CLINICAL EXAM INATION  
The clinical examination will be carried out on the basis of the following parameters:  
 
1. Diagnosis of the fundamental problem in implementing the decision on DFQF market access 
for LDCs with a view to establi sh why there  has been a problem i n the implementation since 
Hong Kong more than 10 years ago . 
 
2. An examination of the level of implementation of the Ministerial Decision on DFQF Market 
access by preference granting countries for LDCs . 
 
3. Major global and regi onal markets of LDCs’ exports and export revenues of individual LDC to 
each market . 
 
4. Number of MFN tariff lines dutiable in all of those countries, distribution of dutiable lines 
over HS chapters and average tariff faced by the LDCs.  
 
5. An identification of textile and clothing export of individual LDCs to major export markets 
between 2000 -2015.  
 
6. An identification of major worldwide importers of textile and Clothing products and a 
comparison of the market shares in textile and clothing products at HS heading and sub -heading 
levels in these markets, of suppliers, including LDCs, for the period 2000 -2015.  
 
7. Establishing why have textiles and garments been a problem in the implementation of the 
decision on DFQF Market Access.  
 
8. The overall contribution of DFQF MA t o the Gross Domestic Product (GDP) of LDCs and in 
particular the contribution of textile exports to the GDP of LDCs as a proportion of total exports.  
 
9. A comparison of tariff lines for clothing products most exported by individual LDCs under 
DFQF treatment  to preference granting members  with the list of tariff concession provided by that 
preference granting member to major competitors in clothing in the market of that member 
ranked by value of exports and tariff phase down.  
 
10. Based on last experiences of th e negative impact of the expiration of the Multifiber 
Agreement on the LDCs exports, evaluate the impact of these liberalization trends on exports and 
export diversification in textile and apparel of LDC beneficiaries of non -reciprocal preferential 
treatme nt to the preference granting Members.   
 
3  APPROACH  
The Secretariat should also identify the medium - and long -term development trends for exports on 
the global market as from the implementation of the decision on DFQF MA for LDCs.  
 
The statistical and trade  information provided by Members, as well as the information available 
from the databases of the WTO Secretariat, UNCTAD, the ITC, the World Bank, USITC, the  OECD 
and all other official sources of documentation, could be used for this study.   
 WT/COMTD/W/218/Rev.1  
 
- 3 - 
 
  4  TIMETABLE  
The results of the study shall be made available as soon as possible but in any case not later than 
two months after the submission of the Terms of Reference to the Committee on Trade and 
Development.  
 
The Committee on Trade and Development will review the s tudy with a view to identifying the 
problems hindering implementation of the DFQF Market access decision for LDCs, and coming up 
with recommendations.  
 
__________