WORLD TRADE  
ORGANIZATION  TN/TF/W/41 
2 June 2005 
 (05-2254) 
Negotiating Group on Trade Facilitation Original:   Spanish 
  
 
 
COMMUNICATION FROM ARGENTINA, BOLIVIA, BRAZIL, CHILE, 
COLOMBIA, ECUADOR, EL SALVADOR, GUATEMALA, 
HONDURAS, MEXICO, PARAGUAY, PERU 
AND URUGUAY 
 
   The following communication, dated 1 June 2005, from the delegations of Argentina, Bolivia, 
Brazil, Chile, Colombia, Ecuador, El Salvador, Gu atemala, Honduras, Mexico, Paraguay, Peru and 
Uruguay, is being circulated in advance of th e Negotiating Group meeting of 13-14 June 2005. 
 
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LINKS BETWEEN THE ELEMENTS OF ANNEX D 
 
I. INTRODUCTION 
1. On 1 August 2004, the General Council deci ded by explicit consensus to commence 
negotiations on trade facilitation on the basis of th e modalities set out in Annex D of the Doha Work 
Programme.  Since then, the Negotiating Group has fo cussed mainly on a preliminary consideration 
of ideas and proposals put forward by Members with a view to improving and clarifying Articles V, 
VIII and X of the GATT 1994. 
2. Over and above the valuable ideas containe d in the communications from, among others, 
China and Pakistan (TN/TF/W/29), Peru (TN/TF/W/30) and the African Group (TN/TF/W/33), the most commonly shared feature of the documents s ubmitted consists in their identification of specific 
problems and the suggestion of practical ways to im prove the relevant elements of Articles V, VIII 
and X of the GATT 1994 and enhance their effectiv eness.  Although those communications recognize 
that central importance should be attached to the id entification of national needs and priorities, and to 
technical assistance, capacity-building and special and differential treatment, a more in-depth analysis 
should be made of how those elements should interact and interrelate in future disciplines, so that all 
Members can benefit from the outcome of the negotiations. 
3. This communication addresses the interrelationshi p between the elements of Annex D, and 
develops some preliminary ideas on a possible appro ach to ensuring that the developing and least 
developed countries take full advant age of the benefits of trade fa cilitation and lessen any attendant 
costs.
1 
                                                      
1 The content of this contribution does not fully reflect all the views of the co-sponsors and should not 
be seen as their final position on all or some of the points raised. TN/TF/W/41 
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 II. ELEMENTS OF ANNEX D 
4. The modalities set out in Annex D were adopted  after extensive consultations focussing on 
the concerns of the developing and least-develope d countries with regard to their ability to assume 
new obligations in this field, as well as with rega rd to the possible repercussions on their national 
policies.  Consequently, those modalities should not only guide the negotiating process , but should 
also be adequately reflected in the final outcome of the negotiations .
2 
5. Annex D establishes links and conditions with regard to rules , the identification of the needs 
and priorities  of Members and technical assistance and capacity-building , each of these elements 
being interrelated, while at th e same time being linked to special and differential treatment .  Thus, a 
new form of cooperation between Members is outlin ed, aimed at ensuring that developing and least 
developed countries have real capacity to implemen t the new commitments.  The links and conditions 
concerned are the following: 
• The scope of the commitments  must be commensurate with the capacity for 
implementation  of developing and least-developed countries (paragraph 2 of 
Annex D). 
 
• The capacity for implementation  of the new commitments, particularly in the case of 
developing and least developed countries, shall be determined in accordance with 
their trade facilitation needs and priorities  (paragraph 4 of Annex D). 
 
• Technical assistance and capacity-build ing should help developing and least 
developed countries to implement the commitments  resulting from the negotiations 
(paragraphs 5 and 6 of Annex D). 
 
6. Special and differential treatment  should be made subject, in future disciplines, to longer 
time-frames than the customary transition periods, so as to ensure a cross-cutting interrelationship 
with the elements referred to above. 
III. INTERRELATIONSHIP BETWEEN THE ELEMENTS OF ANNEX D 
7. The relationships and synergies between the elemen ts referred to could be reflected in future 
disciplines as follows: 
1. Relationship between the rules and the needs and priorities of Members 
8. The negotiating process will lead to the a doption of a series of improvements and 
clarifications designed substantially to enhance th e effectiveness of Articles V, VIII and X of the 
GATT 1994.  It is possible that some rules, though be neficial from the standpoint of trade facilitation, 
may require resources, capacity-bu ilding or institutional adjustment s for their implementation, and 
will therefore be temporarily beyond the implementa tion capacity of certain Members, particularly 
developing and least developed countries. 
9. In such cases, compliance w ith future commitments should be commensurate with the 
demonstrated implementation capacity of each Member.  This would serve to promote gradual implementation in the manner best suited to the cap acity, development level and trade needs of each 
Member. 
                                                     
 
2 Note 1 to Annex D provides that: " It is understood that this is without prejudice to the possible format 
of the final result of the negotiations and would allow consideration of various forms of outcomes" .  TN/TF/W/41 
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10. The identification of the needs and priorities of Members will be a compulsory benchmark, 
parallel to the identification of future commitments3, within the negotiating process.  To that end, a 
process of self-assessment by each Member – with the necessary technical assistance – would make it possible to diagnose the actual capacity for implemen tation of future commitments.  This diagnosis 
would serve to determine each Member's real situati on in relation to trade facilitation and the distance 
separating it from the capacity needed to implement ob ligations to be agreed in the future.  It would 
also serve to define technical assistance and capacity-building requirements for the purpose of narrowing the gap between the rule and the actual capacity for implementation. 
11. With a view to the implementation of the agreed commitments, Members will report on their 
actual capacity for implementation within a period of time to be determined.  
12. In the case of developing and least deve loped countries with no proven capacity for 
immediate implementation of the new commitments, di fferential transition periods will be established, 
combined with programmes of technical assistan ce and capacity-building, and geared to the 
obligations to be assumed and the analysis of nati onal needs and priorities.  Upon completion of those 
programmes, the Members concerned could be in a position to undertake the new commitments 
gradually, following a timetable and a procedure ad apted to their implementation capacities.  Pending 
achievement of the required capacities, th e commitments would not be enforceable. 
2. Technical assistance and capacity-building in the light of Members' needs and priorities 
and the rules 
13. Compliance with the future trade facilitation di sciplines for developing and least developed 
countries may entail technical assistance and capacity- building, with a resulting need for resources.  
The experience with the implementation of th e Uruguay Round Agreements demonstrated the 
practical difficulties to which commitments undertaken  in the WTO framework gi ve rise if resources 
for their implementation are lacking or if inadequate  consideration is given to each country's needs for 
the implementation of the discipline. 
14. Technical assistance and capacity-building sh ould be directed to the establishment of 
programmes conducive to implementation of the outcom es of the negotiations.  In other words, when 
rules are considered for possible adoption in the WT O, simultaneous consideration should be given to 
technical assistance so as to guarantee the viability of their implementation.   
15. An assessment should be made of the desirab ility of establishing a mechanism to organize 
and coordinate technical assistance and capacity bui lding in the area of trade facilitation, pooling the 
efforts of donors, recipients and other internationa l organizations.  This mechanism would ensure that 
technical assistance is adapted to the needs of the recipients, so as to guarantee transparency, 
coherence and effective assistance to developing and least developed countries in the implementation 
of commitments in this field. 
3. Special and differential treatment and its relationship with the other elements of 
Annex D 
16. Special and differential treatment, which must  go beyond the customary granting of transition 
periods for the implementation of commitments, is horizontally related to each of the above-
mentioned elements of Annex D.  This principle should therefore form an integral part of the 
clarification and improvement of Articles V, VIII and X of the GATT 1994, of the identification of 
                                                     
 
3 Suggestions along these lines were recently made in the communication from the People's Republic of 
China and Pakistan (TN/TF/W/29). TN/TF/W/41 
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 each Member's needs and priorities, as well as of  the means of providing technical assistance and 
support for capacity-building.  Moreover, the effec tiveness of special and differential treatment will 
depend on the way in which the existing links and relationships between the above-mentioned 
elements are given effect in the final outcome. 
IV. CONCLUDING REMARKS 
17. The links, relationships and synergies between the elements discussed in this communication 
are not exhaustive and may be further elaborated in  the course of these negotiations.  It is especially 
important for the design and implementation of future  disciplines that they be taken into account.  For 
this reason, they should be dealt with in parallel with the process of clarification and improvement of 
Articles V, VIII and X of the GATT 1994, as they can make a significant contribution to the progress 
of these negotiations. 
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