TN/TF/W/189  
 
15 April 2013  
(13-1991) Page: 1/9  
Negotiating Group on Trade Facilitation  Original: English  
 
TEXTUAL PROPOSALS ON SECTION II OF THE DRAFT CONSOLIDATED 
NEGOTIATING TEXT ON TRADE FACILITATION 
COMMUNICATION FROM THE ACP GROUP 
 
The following communication dated 3 April 2013 is being circulated at the request of the ACP 
Group for consideration by the NGTF. 
 
 
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SECTION II 
SPECIAL AND DIFFERENTIAL TREATMENT PR OVISIONS FOR DEVELOPING COUNTRY 
MEMBERS AND LEAST DEVELOPED COUNTRY MEMBERS 
1. General provisions and basic principles 1.1 The provisions
1 contained in Section I of this Agreem ent that are binding or become binding 
on developing and least developed countries, respectively, shall be implemented by those 
Members in accordance with this section in accordance with the modalities agreed in Annex D of the July 2004 Framework Agreement and the Hong Kong Ministerial Declaration.  
1.2  Members recognize that the principle of spec ial and differential treatment for developing and 
least developed country Members should extend beyond the granting of traditional transition periods for implementing commitments.  In particul ar, the extent and the timing of entering into 
commitments shall be related to the implementation  capacities of developing and least developed 
country Members, who would not be obliged to undertake investments in infrastructure projects beyond their means. 
 
1.3  Least developed country Members will only be required to undertake commitments to the extent consistent with their individual development, financial and trade needs or their administrative and institutional capabilities. 
 
1.4 Developed country Members shall ensure to provide support and assistance to developing 
and least developed country Members in a comprehensive manner and on a long term and 
sustainable basis, backed by secure funding, in order to allow implementation. Members agree 
that in cases where the required support and assistance is not forthcoming from developed country Members and other donors, and where a developing  or least developed country Member continues 
to lack the necessary capacity, implementation will not be required. 
 
                                               
1 The term "provision" means provision or a sub-part of a provision. TN/TF/W/189 
 
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  1.5 While every effort shall be made to ensure the necessary support and assistance, it is 
understood that the commitments by developed co untry Members to provide such support are not 
open ended.2 
 
1.6 Any developing or least developed Members experiencing difficulties in submitting 
provisional and definitive dates for implementation within the deadlines set forth in paragraphs 5 and 6 because of the lack of a donor to provid e assistance to implement, should notify the 
Committee of those difficulties as early as possible prior to the expiration of those relevant 
deadlines, at the latest the date stipulated in paragraphs 5.1(c) and 6.1 (e).   Members agree to cooperate to assist in addressing such difficulties; taking into account the particular circumstances and special problems facing the Member concerned and that appropriate assistance will enable 
implementation.  The Committee shall take appropriate action to address the difficulties, including, 
where necessary, extending the deadlines for the Member concerned.  
1.7 Implementation of provisions under Category  C by developing and least developed country 
Members is conditional on the provision of adequate and effective technical and financial assistance and capacity building measures by developed-country Members and/or other donors 
with a view to the acquisition of implementati on capacity by developing and least developed 
country Members.  Notwithstanding any other provision in this Section, in cases where technical assistance and capacity building is not provided or lacks the requisite effectiveness, developing 
country and least developed country Members are not bound to implement the provisions under 
Category C. 
 2. Definitions of Cate gories of Commitments 
2.1 There will be three different categories of commitments as defined below: 
(a) Category A commitments are provisions that a developing country Member or a least 
developed country Member has designated for implementation upon entry into force of 
this Agreement, as provided in Article [X]
3 
(b) Category B commitments are provisions that a developing country Member or a least 
developed country Member has designated for implementation on a date after a transitional period of time following the entry into force of this Agreement, as provided 
in Article [Y]. 
(c) Category C commitments are provisions that a Developing Country Member or a Least 
Developed Country Member has designated for implementation on a date after a 
transitional period of time following the entry into force of this Agreement upon the 
acquisition of implementation capacity through the provision of technical and financial assistance and support for capacity building, as provided for in Article [Z]. 
2.2 Developing country and least developed country Members shall determine, on an individual 
basis, the provisions to be included under each of the Categories A, B and C as defined in 2.1 of this Section.  
3. Notification and Implementation of Provisions under Category A 
3.1 Before entry into force of this Agreement, each developing country Member shall notify any 
provisions it has designated under Category A.  Upon entry into force of the Agreement, each 
Member's designations under Category A will be  made an integral part of this Agreement. 
                                               
2 Consideration being given as to (i) whether elements of paragrap hs 1.2 to 1.5 can be reflected in a 
preamble to the Agreement and theref ore shifted to Section 1 – Article 15  on Preamble/Cross -cutting matters 
until adequate preambular language is drafted; (ii) whet her the paragraphs 1.2 to 1. 5 could be deleted in the 
event that the elements as contained therein are duly re flected within the operative paragraphs of Section II. 
3 Members may wish to consider the mechanism for entr y into force.  For example, in accordance with 
the method used for the Uruguay Round agreements -  a date certain to be decided by Members. TN/TF/W/189 
 
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  3.2 Notwithstanding paragraph 2.1 (a)  of this Section,  a least developed country Member may 
notify the Committee any  provisions it chooses to notify under Category A [one year] [x] after entry into force of this Agreement. 
4.  Notification and Implementation of Provisions under Category B  
4.1 With respect to those provisions that a developing country Member has not designated 
under Category A, the Member may delay implementation of such provisions in accordance with the process set forth in this paragraph. 
 
(a) No later than [one year] [x] after entry into force of this Agreement, each developing 
country Member shall notify to the Committee the provisional dates for implementation of each of the provisions under Category B.
4 
(b) No later than [one year] [x] after notification of provisional dates pursuant to sub-
paragraph (a), each developing country Member shall notify to the Committee its definitive dates for implementation of final designations under Category B.  
(c) If a developing Member misses the deadline or experiences difficulty meeting the 
deadline under subparagraph (b), the Me mber may request that the Committee 
extend the period stipulated under subparagraph (b). 
5.  Notification and Implementation of Provisions under Category C 
5.1 With respect to those provisions that a developing country Member has not designated 
under Category A or B, the Member may delay implementation of such provisions in accordance with the process set forth in this paragraph. 
(a) For transparency purposes and to facilitate agreements with donors, no later than 
[one year] [x]  after entry into force of this Agreement, each developing country 
Member shall provisionally notify the Committee provisions it has designated under 
Category C,  together with information on required technical, financial and capacity 
building assistance as well as the national agency responsible for implementation of the provision.
 5 
(b) Within [one year] [x] after the notification date stipulated in subparagraph 5.1(a), 
taking into account donor Member registers submitted to the Committee pursuant to paragraph 11.1, developing country Members and donor Members shall conclude the agreements necessary to enable effective im plementation of the provisions designated 
under Category C.  If a developing count ry Member or donor Member is facing 
difficulties concluding agreements, the Member shall, in accordance with paragraph 1.6, inform the Committee with a view to finding options to reach agreement. 
(c) Developing country Members, together with the donor Member party to such 
agreements shall, no later than [three months] after the agreements are concluded, inform the Committee of those agreements.  Developing country Members shall also 
inform the Committee of agreements concluded with any Annex D donor agencies.  
(d) Subject to paragraph 1.7 of this Section, within [18 months] [x] from the notification 
date stipulated in sub-paragraph (b), donor Members and the respective developing country Members shall jointly notify the Committee on the progress toward 
implementation of Category C provisions.  If both parties have determined in their 
report, that progress is being made, each developing country Member shall at the 
                                               
4 Notifications submitted may also include such fu rther information as the notifying Member deems 
appropriate.  Members are encouraged to provide info rmation on the domestic agency/entity responsible for 
implementation. 
5 Notifications submitted may also include such fu rther information as the notifying Member deems 
appropriate.  Members are encouraged to provide info rmation on the domestic agency/entity responsible for 
implementation and, for those provisions for which a Member considers that technical assistance and capacity 
building is required, the donor agency with which the Member has an agreement to provide assistance. 
 TN/TF/W/189 
 
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  same time notify the definitive dates for implementation of provisions it has 
designated under Category C.  If the part ies have not agreed that sufficient progress 
has been made, the parties shall put forward recommendations for improvement and report back to the Committee within [six months] [x]. 
6. Least developed country Notification and Implementation of Provisions under 
Categories B and C  
6.1 With respect to provisions that a least developed country Member has not designated under 
Category A, taking into account paragraph 1.3 of  this Section, least developed country Members 
may delay implementation of such provisions in accordance with the process set forth in this paragraph: 
Category B 
(a) No later than [two years] [x] after entry into force of this Agreement, a least 
developed country Member shall notify the Committee the provisions under Category B, taking into account maximum flexibilities for least developed country Members and 
the possibility to shift commitments between B and C found in paragraph 8 below. 
 (b) No later than [two years] [x] after the notification under sub-paragraph (a) of this 
paragraph, each  least developed country Member shall notify the Committee to 
confirm designations of provisions and notify definitive dates for implementation under Category B.  
 
Category C 
(c) No later than [two years][x] after entry into force of this Agreement, in order to 
facilitate agreements with donors, each  least developed country Member shall notify 
the Committee its designations  under Categories C, taking into account maximum 
flexibilities for least developed country Members and [the possibility to shift commitments between B and C found in paragraph 8 below]. 
 
(d) [One year][x] from the notification submitted under sub-paragraph 6.1(c), least-
developed country Members shall notify  information on required technical, financial and capacity building assistance as well as the national agency responsible for 
implementation of the provision. 
 (e) No later than [two years] [x] after the notification date under sub-paragraph (d), 
taking into account donor registers submitted to the Committee pursuant to 
paragraph 11.1, donor Members and least developed countries shall enter into technical and financial and capacity building assistance agreements  If a least 
developed country Member or donor Member is facing difficulties concluding an 
agreement, the Member shall inform the Committee, consistent with paragraph 1.6 of this Section, with a view to finding options to conclude the agreements. 
 
(f) No later than [six months] after conclusion of a technical and financial and capacity 
building assistance agreement, least develo ped country Members, together with the 
donor Member party to such agreement, shall inform the Committee of those 
agreements. 
 (g) Subject to paragraph 1.7 of this Section, no  later than [18 months] [x] after the date 
stipulated in 6.1(e) or after agreements have been concluded, donor Members and the 
respective least developed country Members shall jointly notify the Committee on progress toward implementation of Category C provisions.  If both parties have determined in their report, that progress is being made, each least developed country 
shall at the same time notify the Committee its definitive dates for implementation of 
each of the Category C provisions.  If the parties have not agreed that progress has been made, the parties shall put forward recommendations for improvement and 
report back to the Committee in [one year] [x]. 
 TN/TF/W/189 
 
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  7.  Early Warning Mechanism: Extension of Implementation Dates of Provisions under 
Categories B and C  7.1 
(a) A developing country Member or least developed country Member that considers 
itself to be experiencing difficulty in implementing a provision by the date set forth in Category B or C shall alert the Committee.  Developing countries shall notify the 
Committee no later than [four months] [x] before the expiration of the 
implementation date.  Least developed countries shall notify the Committee no later than [three months] [x] before such date. 
(b) The notification to the Committee shall indicate the new date by which the 
developing country or least developed country Member expects to be able to 
implement the provision concerned.  The noti fication shall also indicate the reasons 
for the expected delay in implementation.  Such reasons may include the need for 
assistance where not earlier anticipated. 
7.2 Where a developing country request for additi onal time for implementation does not exceed 
[two years], or a least developed country’s request for additional time does not exceed [three 
years], the Committee shall grant an automatic extension.  If the additional time required for 
implementation exceeds [two years] in the case of a developing country, or [three years] in the case of a least developed country Member, the Member shall request the Committee to grant an 
extension. 
 
7.3 Where a developing country or least developed country Member considers that it requires a second or any subsequent extension, it shall su bmit to the Committee a request for an extension 
containing the information described in 7.1 (b).  Developing country Members shall notify the 
Committee no later than [four months] before the expiration of the implementation date and least developed countries shall notify the Committee within [three months] before the expiration of the 
implementation date. 
7.4 The Committee shall give positive consideration to requests for extensions pursuant to sub-
paragraph 7.3, taking into account the specific circumstances of the Member submitting the request.
6 
8.  Shifting between Categories B and C 
8.1 Developing country members and least de veloped country Members who have notified 
provisions under Categories B and C may shift provisions between such categories through the 
submission of a notification to the Committee. 
8.2 Where a Member proposes to shift a provision from Category B to C, it shall be presumed 
that additional time will be required for implem enting the provision taking into account the time 
needed to secure an agreement with a donor and completion of the technical and financial 
assistance and capacity building to enable capaci ty to implement.  In that regard, the Member 
shall also provide information on the technical assistance, capacity building and financial needs required and the new proposed definitive date for implementation.   Any new definitive date of 
more than [four years] for developing Members, [five years] for least developed countries) after 
the original definitive date notified under Catego ry B, shall require approval by the Committee. 
9. Grace Period for the Application of th e Understanding on Rules and Procedures 
Governing the Settlement of Disputes 
9.1  For a period of two years after entry into  force of this Agreement, the provisions of 
Articles XXII and XXIII of GATT 1994 as elaborated and applied by the Understanding on Rules and 
Procedures Governing the Settlement of Disputes shall not apply to the settlement of disputes 
against a developing country Member having designated a provision under Category A. 
                                               
6 These circumstances may include, inter alia, difficulties and delays in legislative processes, natural or 
other disasters, or those related to the provision of assistance. TN/TF/W/189 
 
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  9.2 For a period of six years after entry into forc e of this Agreement, the provisions of Articles 
XXII and XXIII of GATT 1994 as elaborated and a pplied by the Understanding on Rules and 
Procedures Governing the Settlement of Disputes shall not apply to the settlement of disputes 
against a least developed country Member having designated any provision under Category A. 
9.3  For a period of [two years] after implemen tation of a provision under Category B and C by 
the developing country Member, the provisio ns of Articles XXII and XXIII of GATT 1994 as 
elaborated and applied by the Understanding on  Rules and Procedures Governing the Settlement 
of Disputes shall not apply to the settlement of disputes against that developing country Member 
concerning those provisions. 
9.4 For a period of [six years] after implementa tion of a provision under Category B and C by a 
least developed country Member, the provisions of Articles XXII and XXIII of GATT 1994 as 
elaborated and applied by the Understanding on  Rules and Procedures Governing the Settlement 
of Disputes shall not apply to the settlement of  disputes against that least developed country 
Member concerning those provisions. 
9.5  Each Member shall nevertheless provide adeq uate opportunity for consultation with respect 
to any issue relating to the implementation of this Agreement. 
9.6  The Committee shall encourage and facilitate ad hoc consultations or negotiations among 
Members on specific issues relating to trade facilitation, with a view to reaching a mutually 
satisfactory solution promptly.7 
9.7  Notwithstanding this grace period for the Application of the Understanding on Rules and 
Procedures Governing the Settlement of Disputes and Before making a request for consultations 
pursuant to Articles XXII or XXIII, and at all stag es of dispute settlement procedures with regard 
to a measure of a least developed country Member, a Member shall give particular consideration to the special situation of least developed country Memb ers.  In this regard,  Members shall exercise 
due restraint in raising matters under the Understanding on Rules and Procedures Governing the 
Settlement of Disputes involving least developed country Members. 
10. Provision of Technical and financial assistance and Capacity Building 
10.1  The provision of technical and financial as sistance and capacity building by developed 
country Members and relevant international organizations and other agencies of cooperation, including the IMF, OECD, UNCTAD, WCO and the World Bank, is a precondition for the acquisition of implementation capacity by developing country  and least developed country Members in respect 
of provisions requiring assistance. 
10.2 Developed country Members [and developing country Members in a position to do so] agree 
to facilitate the provision of technical, financia l, and capacity building assistance to developing 
country and least developed country Members, on mutually agreed terms and either bilaterally or 
through the appropriate international organizations.  The agreements concluded between donors and the developing country or least developed country Members may also contain a work program 
with a view to achieving implementation of the rele vant provisions by the completion of assistance 
agreed and sustainability.  The objective of such assistance is to enable developing country and least developed country Members to comply with the Agreement's commitments. 
10.3 In line with the Paris Declaration on Aid Effectiveness and the Accra Agenda for Action, 
Members shall endeavour to apply the following principles for providing technical assistance and 
capacity building with regard to the implementation of this Agreement: 
(a) Take account of the overall developmenta l framework of recipient countries and 
regions and, where relevant and appropriate, on-going reform and technical 
assistance programs; 
(b) Include, where relevant and appropriate, activities to address regional and sub-
regional challenges and promote regional and sub-regional integration; 
                                               
7 This paragraph could be moved to another location in the Agreement. TN/TF/W/189 
 
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  (c) Ensure that on-going trade facilitation reform activities of the private sector are 
factored into assistance activities; 
(d) Promote coordination between and among Members and other relevant institutions, 
including regional economic communities, to ensure maximum effectiveness of and 
results from this assistance.  To this end: 
i. Coordination, primarily in the country or region where the assistance is to be 
provided, between partner Members an d donors, and among bilateral and 
multilateral donors, should aim to avoid overlap and duplication in assistance 
programs, and inconsistencies in reform activities through close coordination of technical assistance and capacity building interventions; 
ii. For least developed country Members, the Enhanced Integrated Framework 
should be a part of this coordination process; and 
iii. Members should also promote internal coordination between their trade and 
development officials, both in capitals  and Geneva, in the implementation of 
the Agreement and technical assistance. 
(e) Encourage use of existing in-country and regional coordination structures such as 
round tables and consultative groups to coordinate and monitor implementation 
activities; and 
(f) Encourage developing countries to provide capacity building to other developing and 
least developed countries and consider supporting such activities, where possible. 
10.4 The Committee shall provide for a specific ag enda item to discuss technical assistance and 
capacity building including inter alia: 
 
(a) Review of donor register notifications and developing and least developed Member 
needs schedules, by provision;  
(b) Review of progress in the provision of technical and financial assistance and capacity 
building including any developing or least developed country Members not receiving 
adequate technical assistance and capacity building; 
(c) Information from developing and least developed country Members on any difficulties 
receiving responses from donors to requests for technical and financial assistance and capacity building; 
(d) Discussion on any problems regarding implementation of provisions or sub-parts of 
provisions; 
(e) Information from parties on agreements concluded with donors; 
(f) Options to secure agreements with donors where problems persist; and  
(g) Sharing experiences and information on ongoing assistance and implementation 
programs, including challenges and successes. 
11. Information on Assistance to be submitted to the Committee 
11.1 To provide transparency to developing an d least developed Members on the provision of 
specific assistance and support for implementation of Section I, each developed country Member assisting developing country and least developed co untry Members with the implementation of this 
Agreement shall submit to the Committee, at entry into force of the Agreement and annually 
thereafter,  a trade facilitation technical and financial assistance and support for capacity building TN/TF/W/189 
 
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  register containing  the following information, by Section I provision, that was provided in the 
preceding twelve months [and that will be made available in the forthcoming twelve months8: 
 
(a) description of the technical and financial assistance and capacity building resources 
by relevant provision in Section I; 
 (b) the status and amount committed/disbursed; 
 
(c) procedures for disbursement of the assistance; 
 (d) the beneficiary country, or, where necessary, the region;  
 
(e) the implementing agency in the Member providing assistance; and 
 
(f) procedures for approval 
 The information shall be provided in the format specified in Annex X.
9 In the case of OECD 
Members, the information submitted can be based on relevant information from the OECD Creditor 
Reporting System. [Developing country Members in a position to provide assistance should also 
submit the information above.]  
11.2  Developed country Members assisting developing country and least developed country 
Members shall submit to the Committee: 
(a) Contact points of their agencies responsible for providing technical and financial 
assistance and support for capacity building related to the implementation of this 
Agreement, including where practicable, information on such contact points within the Country or region where the assistance is to be provided; 
(b) Information on the process and mechanisms for requesting assistance. 
Developing country Members in a position to provide assistance may also submit the information 
above. 
11.3  Developing country and least developed country Members intending to avail themselves of 
trade facilitation-related assistance shall submit to the Committee information on any difficulties 
obtaining donors or conclusion of agreements with donors and information on contact point(s) of the office(s) responsible for coordinating and prioritizing such assistance. 
11.4  Members may provide the information in paragraphs 11.1, 11.2 and 11.3 through internet 
references and shall update the submitted information as necessary.  The Secretariat shall make all such information publicly available. 
11.5  The Committee shall invite relevant international and regional organizations (such as the 
IMF, OECD, UNCTAD, WCO, UN Regional Commissions, the World Bank or their subsidiary bodies, and regional development banks) and other agencies of cooperation to provide information referred to in paragraphs 11.1, 11.2 and 11.4. 
 
                                               
8 [The information provided will reflect the demand driven nature of some developed country 
approaches to the provision of technical assistance.] 
9 This register is contained in TN/TF/W/175 and will form Annex X. This register would support 
operationalizing the principal mandate contained in Annex D of the 2004 July Framework Agreement and Annex E of the Hong Kong Declaration. TN/TF/W/189 
 
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  1.1.  Annex [1]:  Format for Schedule B/C 
 
 
Provision/Sub-part of 
Provision  
Time Period  
Assistance Required and 
Other Information 
   
 
 
Annex X: Format for notification under Article 11.1 
 
 
Register 
Donor 
Provision/Sub-
part of 
Provision  Description of 
technical/ 
financial 
assistance  Description 
of capacity 
building 
resources Status and 
amount 
committed Status and 
amount 
disbursed Beneficiary 
Country/ 
Region 
(where 
necessary) The 
implementing 
agency in the 
Member 
providing 
assistance Procedures for  
Approval and 
disbursement 
of the 
assistance 
        
 
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