WORLD TRADE  
ORGANIZATION  TN/AG/22 
27 July 2006 
 
 (06-3615) 
Committee on Agriculture 
Special Session  
 
 
 
PROPOSALS FOR SPECIAL AND DIFFERENTIAL TREATMENT 
 
Report by the Chairman of the Special Session of the  
Committee on Agriculture to the General Council  
 
 
I. INTRODUCTION 
1. The Doha Ministerial Declaration states: 
"44. .... We therefore agree that all special and differential treatment provisions shall be 
reviewed with a view to strengthening them, and making them more precise, effective and 
operational.  In this connection, we endorse the work programme on special and differential 
treatment set out in the Decision on Impl ementation-Related Issues and Concerns."1 
2. On 1 August 2004, the General C ouncil adopted the following decision with respect to special 
and differential treatment: 
"Special and Differential Treatment:  the General Council reaffirms that provisions 
for special and differential (S&D) treatment are an integral part of the WTO 
Agreements.  The Council recalls Ministers'  decision in Doha to review all S&D 
treatment provisions with a view to st rengthening them and making them more 
precise, effective and operational.  The Council recognizes the progress that has been 
made so far ... 
The Council also instructs all WTO bodies to which proposals in Category II have 
been referred to expeditiously complete  the consideration of these proposals and 
report to the General Council, with clear recommendations for a decision, as soon as possible and no later than July 2005.  In doing so, these bodies will ensure that, as far 
as possible, their meetings do not overlap so as to enable full and effective participation of developing countries in these discussions."
 2 
3. The Hong Kong Ministerial Declaration states: 
 "37. We are concerned at the lack of progr ess on the Category II proposals that had been 
referred to other WTO bodies and negotiating groups.  We instruct these bodies to expeditiously complete the consideration of  these proposals and report periodically to the 
General Council, with the objective of ensuri ng that clear recommendations for a decision 
are made no later than December 2006.  We also instruct the Special Session to continue to 
coordinate its efforts with these bodies, so as to ensure that this work is completed on time. 
 
                                                     
 
1 WT/MIN(01)/DEC/1   
2 WT/L/579 TN/AG/22 
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   We further instruct the Special Session, with in the parameters of the Doha mandate, to 
resume work on all other outstanding issues, including on the cross-cutting issues, the monitoring mechanism, and the incorporation of S&D treatment into the architecture of 
WTO rules, and report on a regular basis to the General Council."
3 
 
4. The special and differentia l treatment provisions referred to the Special Session of the 
Committee on Agriculture are contained in paragraphs  48 to 51 of a proposal from the African Group 
of 17 July 2002 (TN/CTD/W/3/Rev.2).  The relevant sections are attached.   
5. Category II proposals referred to the Special  Session of the Committee on Agriculture were 
discussed at open-ended consultati ons held on 24 Marc h 2006.  Moreover, issues relating to the 
proposals were in fact discussed at each of the open-ended consultations held since the Hong Kong 
Ministerial Declaration and at many of the co nsultations held with representative groups of 
delegations.  Since the start of 2006 there have  been 12 sets of open-ended consultations and 
numerous different papers prepared and distributed many of which directly or indirectly address 
issues related to the Category II proposals. 
6. At the consultations held on 24 March a number of delegations noted that, although the 
negotiations may have addressed issues  related to the Category II proposals, it would be better if this 
was to be made clear in the discussions, particularly  so that all delegations would be aware of the 
linkage and to ensure that these issues were appr opriately addressed.  That is an idea which is 
inherently worth exploring further.  The intense time pressure and competing priorities of ensuring 
that the appropriate reference papers and draft modalities documents were prepared, distributed and 
discussed over the last few months precluded that but it is something which we will revert to. 
II. PROPOSALS  
A. ARTICLE 6.2 OF THE AGREEMENT ON AGRICULTURE  
7. The Agreement on Agriculture does not apply a limit to subsidies under Article 6.2 of the 
Agreement on Agriculture.  Paragraph 6 of the Ag reed Framework and paragraph 54 of the Draft 
Possible Modalities4 state that developing country Memb ers will have continued access to the 
provisions of Article 6.2.   
8. In addition, in line with the Framewor k (paragraph 11) and the Hong Kong Ministerial 
Declaration (paragraph 5), the Draft Possible Modalities (paragraph 63) also provides for an 
exemption from reductions in de minimis  for developing country Member s that either have no AMS 
reduction commitments or allocate almost all de minimis  support for subsistence and resource-poor 
farmers. 
9. The Draft Possible Modalities also includes a number of other provisions under special and 
differential treatment in each of the three pillars of market access, domestic support and export competition which would permit developing countr y Members to provide support for food security 
and rural development.  In each pillar longer implem entation periods are provided for and in market 
access and domestic support lower reductions.  In do mestic support, apart from the continuation of 
Article 6.2 and the exemptions me ntioned above from reductions in de minimis , these include 
coverage in the Green Box for programmes in developing country Members that cause no more than minimal trade-distortion.  In export competition Article 9.4, which expired at the end of the 
                                                     
 
3 WT/MIN(05)/DEC 
4 TN/AG/W/3  TN/AG/22 
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  implementation period of the Uruguay Round Agreem ent on Agriculture, will continue for 5 years 
after the end-date for the eliminati on of all forms of export subsidies. 
10. In the negotiations this year several propo sals relating to domestic supports for food security 
and rural development purposes in developing country Members have been submitted and discussed.  
These include the proposal by the African Group on the Green Box (TN/AG/GEN/15) and by the G-
20 on the Green Box (Job(06)/145).  These proposal s are reflected in the Possible Draft Modalities 
B. ARTICLE 14 OF THE AGREEMENT ON AGRICULTURE  
11. Article 14 of the Agreement on Agriculture re fers to the Agreement on the Application of 
Sanitary and Phytosanitary Measures.  On  30 June 2005, the Committee on Sanitary and 
Phytosanitary Measures adopted a re port on proposals for special and differential treatment which is 
contained in document G/SPS/35 of 7 July 2005.  Subsequent meetings of the SPS Committee have 
benefited from in-depth discussion of the underlying issues addressed in G/SPS/35, although without 
further elaboration of the report or specific de cision by the Committee.  At the 24 October 2005 
meeting of the SPS Committee, which wa s resumed on 1-2 February 2006, the  procedure to enhance 
transparency of special and differential tr eatment (adopted on 27 October 2004 in document 
G/SPS/33) was extended until the first meeting of the SPS Committee in 2008. 
C. ARTICLE 15.1  OF THE AGREEMENT ON AGRICULTURE  
12. The Agreed Framework, the Hong Kong Mini sterial Declaration and the Draft Possible 
Modalities include a wide range of issues relati ng to future commitments, including measures 
specifically in favour of developed and/or least -developed country Members.  Many of these 
measures may require binding in Members' Schedules,  such as the results of any modalities on tariff 
escalation and tariff simplification (paragraphs 11 to 17 of the Possible Draft Modalities).  In addition, 
paragraph 43 of the Agreed Fr amework and paragraphs 31 to 35  of the Possible Draft Modalities 
cover the various proposals on the table concerning the fullest liberalization of trade in tropical products and products of particular importance to the diversification of production from the growing 
of illicit narcotic crops.  The issue of preference erosion is also addressed in paragraphs 36 and 37. 
13. The Hong Kong Ministerial Declaration (par agraph 11) also provided for duty and quota free 
access for imports of cotton from least-developed country Members from the start of implementation.  The Declaration also states that imports from l east-developed country Members by developed-country 
Members and developing-country Members declaring themselves in a position to do so as set out in 
Annex F to the Ministerial Declaration (paragraph 47).  Possible modalities to give effect to these 
Decisions are set out in paragraphs 42 to 46 of the Draft Possible Modalities. 
D. A
RTICLE 15.2  OF THE AGREEMENT ON AGRICULTURE  
14. The Draft Possible Modalities provides for a longer implementation period for developing 
country Members for market access, domestic support a nd the elimination of export subsidies.  It also 
provides for lower reductions in trade-distorti ng domestic support (parag raph 53) and  bound duties 
(paragraph 4).  In addition to sensitive products, de veloping country Members will also have the right 
to self-designate an appropriate number of tariff lines as Special Products guided by indicators based 
on the criteria of food security, livelihood security and rural development (paragraph 7 of the Hong Kong Ministerial Declaration and pa ragraphs 21 to 28 of the Draft Possible Modalities).  According to 
the Hong Kong Ministerial Declaration (paragraph 7) developing countries will also have recourse to 
a Special Safeguard Mechanism based on price and quantity triggers and the Draft Possible 
Modalities (paragraphs 29 and 30) sets out the vari ous proposals made by Members concerning the 
coverage and operation of this Mechanism. TN/AG/22 
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  SPECIAL AND DIFFERENTIAL TREATMENT PROVISIONS UNDER CONSIDERATION 
BY THE GENERAL COUNCIL (RELEVANT SECTIONS OF TN/CTD/W/3/REV.2)  
Agreement on Agriculture  
Article 6.2 Proposal by the African Group (TN/CTD/W/3/Rev.2) 
48. It is understood that the perm itted subsidies under Article 6.2 sh all, be without limitation as to 
amount, and include any programmes in developing and least-developed country Members for, inter 
alia, promoting food security and rural development, and assisting resource poor or low-income 
farmers. 
Article 14 
Proposal by the African Group (TN/CTD/W/3/Rev.2) 49. It is understood that measures covered by th e Agreement on the Application of Sanitary and 
Phytosanitary Measures shall not be used as disguise d restrictions against the trade of developing and 
least-developed country Members.  Members shall biannually report to the Committee on Agriculture 
any measures taken under the Agreement on the App lication of Sanitary and Phytosanitary Measures 
that affect any products from developi ng and least-developed country Members. 
Article 15.1 
Proposal by the African Group (TN/CTD/W/3/Rev.2) 
50. It is understood that where developed country Members are to take me asures of a special and 
differential treatment nature, they shall embody in their schedules of commitments or concessions specific special and differential treatment commitmen ts in favour of developing and least-developed 
country Members, which shall be binding commitments .  It is further understood that this Decision 
shall be without prejudice to the acquis under an y preferential regime governing the exports of 
developing and least-devel oped country Members by de veloped country Members. 
Article 15.2 
Proposal by the African Group (TN/CTD/W/3/Rev.2) 
51. It is understood that: 
 (a) transition periods under the Agreement sh all be extended for developing and country 
Members that face adjustment difficulties; and  
 (b) developing and least-developed country Members shall have the right to modify their 
 commitments if this is found necessary to protect the public interest in ensuring food  security and alleviating rural poverty. 
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