RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/COMTD/M/71 
20 November 2008 
 
 (08-5650) 
Committee on Trade and Development 
Seventy-First Session  
 
 
 
NOTE ON THE MEETING OF 16 OCTOBER 2008 
 
Chairman:  H.E. Mr. Shree B.C. Servansing (Mauritius) 
 
A. ADOPTION OF THE AGENDA .........................................................................................................2  
B. OBSERVERS ............................................................................................................................... ...2 
(i) Request for attendance of ad hoc observers ...............................................................................2  
(ii) Further consideration of the requests for observer status by the League of Arab 
States, the Organization of the Petroleum Exporting Countries (OPEC), the Gulf 
Organization for Industrial Consulting, the Organisation Internationale de la 
Francophonie, the Common Fund for Commodities, the Organization of Arab Petroleum Exporting Countries (OAPEC) and th e Groupe de la Banque Africaine de 
Développement.................................................................................................................. ..........2
 
C. NOTIFICATIONS UNDER THE ENABLING CLAUSE .........................................................................3  
- COMMUNICATION FROM BRAZIL ON THE REVISED GENERALIZED SYSTEM OF 
PREFERENCES SCHEME OF THE EUROPEAN COMMUNITIES (WT/COMTD/57/A DD.1) ...................3  
- COMMUNICATION FROM CHINA ON THE REVISED GENERALIZED SYSTEM OF 
PREFERENCES SCHEME OF THE EUROPEAN COMMUNITIES (WT/COMTD/57/A DD.2) ...................3  
- COMMUNICATION FROM INDIA ON THE REVISED GENERALIZED SYSTEM OF PREFERENCES SCHEME OF THE EUROPEAN COMMUNITIES 
(WT/COMTD/57/A DD.3) ...................3  
- COMMUNICATION FROM PAKISTAN ON THE REVISED GENERALIZED SYSTEM OF 
PREFERENCES SCHEME OF THE EUROPEAN COMMUNITIES (WT/COMTD/57/A DD.4) ...................3  
- COMMUNICATION FROM THE EUROPEAN COMMUNITIES – RESPONSES TO QUESTIONS 
SUBMITTED BY BRAZIL , CHINA , INDIA AND PAKISTAN ON THE REVISED GENERALIZED 
SYSTEM OF PREFERENCES SCHEME OF THE EUROPEAN COMMUNITIES 
(WT/COMTD/57/A DD.5)...............................................................................................................3  
- COMMUNICATIONS FROM BRAZIL ON THE GENERALIZED SYSTEM OF PREFERENCES SCHEME OF NORWAY 
(WT/COMTD/65  AND  WT/COMTD/65/A DD.2) ...........................................4  
- COMMUNICATION FROM NORWAY – RESPONSES TO FIRST SET OF QUESTIONS 
SUBMITTED BY BRAZIL ON THE GENERALIZED SYSTEM OF PREFERENCES SCHEME OF 
NORWAY (WT/COMTD/65/A DD.1) ...............................................................................................4  
D. DECLINING TERMS OF TRADE FOR PRIMARY COMMODITIES , AND ITS IMPLICATION TO 
TRADE AND DEVELOPMENT OF PRIMARY COMMODITY EXPORTING COUNTRIES ........................6  
- PRESENTATION BY THE UNITED NATIONS C ONFERENCE ON TRADE AND DEVELOPMENT 
(UNCTAD ) .............................................................................................................................. ......6  
E. DECISION ON TRANSPARENCY FOR PREFERENTIAL TRADE ARRANGEMENTS (WT/L/672 ) ...........7  WT/COMTD/M/71 
Page 2  
 
  F.
 REVIEW OF STEPS T AKEN TO PROVIDE DUTY -FREE AND QUOTA -FREE MARKET ACCESS 
TO LEAST -DEVELOPED COUNTRIES ...........................................................................................10  
G. OTHER BUSINESS .......................................................................................................................11  
 
 
A. ADOPTION OF THE AGENDA  
1. The Chairman  said that the draft agenda for the 71st Session of the Committee on Trade and 
Development (CTD) was contained in document WTO/AIR/3239/Rev.1 issued on 9 October 2008.  
He drew Members' attention to item C of the agenda , and in particular the notification concerning the 
Pacific Island Countries Trade Agreement (PICTA),  contained in document WT/COMTD/N/29.  He 
informed the Committee that the notifying Members had requested that this notification be considered 
at the next CTD meeting, as they did not have a ppropriate representation in Geneva for the present 
meeting.  He went on to recall that the Committee had agreed at its last meeting to revert to the matter 
raised by the EC concerning the change in the notification status of the Gulf Cooperation Council 
(GCC) Customs Union from Article XXIV of GATT 1994 to the Enabling Clause.  As agreed, this 
matter would be treated under "Other Business".  He inquired whether there were any other requests 
to raise a matter under "Other Business". 
2. The representative of the United Na tions Development Programme (UNDP)  said that she 
wished to inform Members under "Other Business" of a recent UNDP publication believed to be of 
interest and relevance to the work of the CTD. 
3. The agenda was adopted  as amended. 
B. OBSERVERS  
(i) Request for attendance of ad hoc observers 
4. The Chairman  recalled that, at previous sessions of the CTD, Members had agreed to invite a 
number of intergovernmental organizations on an ad  hoc, meeting-by-meeting basis.  These included 
the Arab Maghreb Union (AMU), the Common Fund for Commodities (CFC), the Economic 
Community of West African States (ECOWAS), th e Economic Cooperation Organization (ECO), the 
Inter-Arab Investment Guarantee Corporation, th e Islamic Development Bank (IDB), the African 
Union (AU), the Organization of the Islamic Conference (OIC), the South Centre, the Pacific Islands Forum, the United Nations Environment Progra mme (UNEP), the West African Economic and 
Monetary Union (WAEMU) and the World Intellectua l Property Organization (WIPO).  He said that, 
following the decision taken at the previous meeti ng of the Committee, the organizations had been 
invited to the present meeting.  He proposed that the organizations be invited to the next formal 
meeting of the CTD. 
5. It was so agreed
. 
(ii) Further consideration of the requests for observer status by the League of Arab States, the 
Organization of the Petroleum Exporting Countries (OPEC), the Gulf Organization for 
Industrial Consulting, the Organisation Int ernationale de la Francophonie, the Common 
Fund for Commodities, the Organization of Arab Petroleum Exporting Countries (OAPEC) and the Groupe de la Banque Africaine de Développement 
6. The Chairman
 said that at previous meetings, the Committee had had before it a number of 
requests for observer status.  He said that if there was no change in positions to extend observer status  WT/COMTD/M/71 
 Page 3 
 
 
  to any of those applicants, then the Committee would take note and would revert to those requests at 
the next meeting.   
7. It was so agreed . 
C. NOTIFICATIONS UNDER THE ENABLING CLAUSE  
8. The Chairman  said that he wished to provide th e Committee with a brief update on some 
matters concerning recent notifications of region al trade agreements (RTAs) under the Enabling 
Clause, and their consideration in the CTD. 
9. He firstly reminded Members that immediat ely following the conclusion of the present 
Regular Session, the CTD's 1st Dedicated Session on RTAs would be held, at which the Egypt-Turkey 
Agreement would be considered.  In follow-up to hi s earlier briefings to the Committee, he informed 
Members that the GCC Customs Union would not be considered at the 1st Dedicated Session on 
RTAs.  He explained that the GCC Parties had yet to  provide the Secretariat with the data required to 
allow the agreement to be considered by Memb ers as per the provisions of the Transparency 
Mechanism for RTAs.  He understood that the Secr etariat was in touch with the Parties and was 
attempting to sort out the data issue. 
10. He also recalled that he had informed the Co mmittee in past meetings of two other RTAs 
notified under the Enabling Clause that were to be  considered in Dedicated Sessions of the CTD, 
namely the Pakistan-Malaysia Agreement and the Paki stan-Sri Lanka Agreement.  With regard to the 
Pakistan-Malaysia Agreement, he recalled that he had previously indicated that the goods aspect of 
this agreement could be consider ed in a Dedicated Session of the CTD in March 2009.  However, he 
understood that this would no longer be possible, in vi ew of some delays in the receipt of data from 
Malaysia.  It was now likely that the Dedicated S ession of the CTD to consider the goods aspect of 
the Pakistan-Malaysia Agreement would be held in September 2009, to coincide with the meeting of 
the Committee on Regional Trade Agreements (CRTA) at which the services as pect of the agreement 
would be taken up.  As for the Pakistan-Sri Lanka  Agreement, he recalled that he had previously 
indicated that it could be considered in a Dedicated  Session of the CTD in June 2009.  He said that he 
would keep Members informed of developments in this regard.  The Secretariat was presently waiting 
to receive the necessary data from the Parties. 
- COMMUNICATION FROM BRAZIL ON THE REVISED GENERALIZED SYSTEM OF 
PREFERENCES SCHEME OF THE EUROPEAN COMMUNITIES (WT/COMTD/57/A DD.1) 
- COMMUNICATION FROM CHINA ON THE REVISED GENERALIZED SYSTEM OF 
PREFERENCES SCHEME OF THE EUROPEAN COMMUNITIES (WT/COMTD/57/A DD.2) 
- COMMUNICATION FROM INDIA ON THE REVISED GENERALIZED SYSTEM OF 
PREFERENCES SCHEME OF THE EUROPEAN COMMUNITIES (WT/COMTD/57/A DD.3) 
- COMMUNICATION FROM PAKISTAN ON TH E REVISED GENERALIZED SYSTEM OF 
PREFERENCES SCHEME OF THE EUROPEAN COMMUNITIES (WT/COMTD/57/A DD.4) 
- COMMUNICATION FROM THE EUROPEAN COMMUNITIES – RESPONSES TO QUESTIONS 
SUBMITTED BY BRAZIL , CHINA , INDIA AND PAKISTAN ON THE REVISED GENERALIZED 
SYSTEM OF PREFERENCES SCHEME OF THE EUROPEAN COMMUNITIES 
(WT/COMTD/57/A DD.5) 
11. The Chairman  recalled that the EC had notified its revised Generalized System of Preferences 
(GSP) scheme at the 57th Session of the CTD.  Communications raising questions on the EC's revised WT/COMTD/M/71 
Page 4  
 
  GSP scheme had been received from Brazil, China, India and Pakistan and were circulated in 
documents WT/COMTD/57/Add.1 to Add.4, respectivel y.  The EC's responses to the questions were 
circulated in document WT/COMTD/57/Add.5.  It ha d been agreed at the last CTD meeting that he 
would continue his informal consu ltations on this matter and would report back to the Committee.  In 
this regard, he said that his consultations indicated that more time would be required before this item 
could be taken off the CTD's agenda.   
12. The representative of India
 said that the responses provided by the EC did not fully address 
India's questions.  His delegation had, therefore,  sought follow-up clarifications relating to the 
transparency and objectivity of the EC's GSP scheme,  which were conveyed to the EC in July 2008, 
prior to the 70th Session of the CTD.  He requested the EC  to expedite its responses to these follow-up 
questions.  He also asked that this item rema in on the agenda for the next CTD meeting. 
13. The representative of Brazil  said that no progress had been ma de on this issue since the last 
CTD meeting.  His delegation was still waiting for confirmation from the EC that 2007 data was 
available, so that a request for the data could be submitted bilaterally.  He not ed that this item had 
been on the CTD's agenda for more than two years, and regretted that the issue had to be considered 
in this manner.  He welcomed the factsheet that the EC had placed at the back of the meeting room 
concerning the renewal of its GSP scheme.  He i ndicated that his delegation would be studying the 
factsheet, and may possibly come  back with questions.    
14. The representative of Pakistan  said that his delegation was still examining the responses 
provided by the EC.  He, therefore, requested that this item remain on the agenda for the next CTD 
meeting.  He also welcomed any initiative by the Ch airman to continue his informal consultations.  
15. The representative of the European Communities , observing that the EC's current GSP 
scheme would soon be terminated, said that his dele gation's view was that the CTD had exhausted its 
discussion on the scheme.  With regard to the follo w-up clarifications sought by India, he indicated 
that if responses had not yet been provided by his delegation, this was due to a misunderstanding.  
The EC would look into this bilaterally with India.  He also confirmed, in response to the query by 
Brazil, that data for 2007 were available.  It was,  in fact, his understanding that the data had already 
been transmitted to the relevant authorities in Brazil. 
16. He next drew Members' attention to the factsheet concerning the EC's GSP scheme for the 
years 2009 to 2011, which had been made available at  the back of the meeting room.  While the EC 
would be formally notifying its new scheme during the first quarter of 2009, the factsheet provided 
some advance information on the scheme.  He pointed to the various internet links that were given in 
the factsheet.  Regarding the new "GSP-plus" arra ngement, he repeated what  had been said by his 
delegation at the last CTD meeting, namely that applications to benefit from the arrangement should 
be submitted by 31 October 2008.  The factsheet provided information on the application procedure 
and requirements.  
17. The Chairman  said that he would continue with his informal consultations, and would report 
back to the CTD at the next meeting.  The present ite m would, therefore, remain on the CTD's agenda.   
18. It was so agreed . 
- COMMUNICATIONS FROM BRAZIL ON THE GE NERALIZED SYSTEM OF PREFERENCES 
SCHEME OF NORWAY (WT/COMTD/65  AND  WT/COMTD/65/A DD.2) 
- COMMUNICATION FROM NORWAY – RESPONSES TO FIRST SET OF QUESTIONS 
SUBMITTED BY BRAZIL ON THE GENERALIZED  SYSTEM OF PREFERENCES SCHEME OF 
NORWAY (WT/COMTD/65/A DD.1)  WT/COMTD/M/71 
 Page 5 
 
 
  19. The Chairman  recalled that Norway had made a notification at the 69th Session of the CTD 
concerning its GSP scheme.  A first set of questions from Brazil on the scheme were circulated in document WT/COMTD/65.  Responses from Norway to this first set of questions, which were made 
available as a room document at the last meeti ng, were subsequently circulated in document 
WT/COMTD/65/Add.1.  Some follow-up questions  from Brazil were then received, and were 
circulated in document WT/COMTD/65/Add.2.  He  understood that Norway had provided responses 
to this second set of questions, which were available at the back of the meeting room.  He invited the 
representative of Brazil to take the floor, in pa rticular to introduce the follow-up questions. 
20. The representative of Brazil
 said that, based on Norway's responses to Brazil's first set of 
questions, his delegation had subm itted a second group of questions to Norway.  The new questions 
aimed at further clarifying the criteria and the rati onale behind the extension of preferential treatment 
to a number of developing countries similar to that provided to LDCs, as well as the possible systemic 
implications of these provisions.  As indicated at the 70th Session of the CTD, Brazil did not intend to 
question the actions of any Member granting prefer ential treatment.  However, Brazil believed that 
differentiation between developing countries was a cause for concern, and should be carefully 
considered in the context of the provisions and requirements of the cove red agreements and the 
Enabling Clause.  His delegation looked forward to  discussing this issue bilaterally, as well as at the 
next CTD meeting, if necessary. 
21. The representative of Norway  said that responses to Brazil's follow-up questions had been 
made available as a room document for the present mee ting.  They would be circulated to Members in  
due course.  She said that she wished to highlight  some of the main points from the responses.  She 
firstly indicated that a translation would be made  available in English of the recommendations made 
by an inter-Ministerial working group reviewing th e Norwegian GSP scheme.  Second, she confirmed 
that the OECD's list of official development assi stance (ODA) recipients was used as the basis for 
establishing the list of beneficiaries of Norway's GSP scheme.  Partly due to their former status as 
LDCs, special preferences had been maintained for Botswana and Namibia.  Third, she informed the 
Committee that when the decision was taken to exte nd the list of countries eligible for duty-free and 
quota-free (DFQF) market access beyond LDCs, a population criterion of 75 million was used 
because this was one of the UN criteria for LDC st atus.  As a fourth point, she noted that the 
Norwegian Aid for Trade Action Plan, launched in November 2007, gave an overview of existing 
cooperation and an outline for future priority action.  This included matters relating to regional trade 
and trade between developing countries.  Targeted e fforts were being made to ensure that the LDCs 
and other low income countries made use of their DFQF access to the Norwegia n market.  Finally, she 
said that efforts were also being made to ensure  that updated and correct information was readily 
available.  In this regard, she indicated that c opies of the Norwegian Aid for Trade Action Plan 2007, 
as well as folders relating to the GSP scheme, were available at the back of the room.  
22. The representative of India  said that his delegation was intere sted in the clarifications sought 
by Brazil on Norway's GSP scheme, particularly in view of the possible systemic implications of the 
provisions of the scheme.  After a preliminary readi ng of Norway's responses to Brazil's first set of 
questions, his delegation had identified three distin ct criteria – coming from different organizations – 
used in the process of revising Norway's GSP sch eme.  The first was the OECD's Development 
Assistance Committee (DAC) list of aid recipient countries.  The second was the UN's population 
criterion of 75 million.  Third, there were th e selective recommendations of the study by the 
Norwegian Institute of International Affairs.  It  was his delegation's hope that the amalgamation of 
these three criteria would eventually result in a pr ocess that was objective, non-discriminatory, and 
did not lead to differentiation between developing co untries.  He observed that differentiation between 
developing countries was a cause for concern.  India w as, therefore, particularly interested in further 
clarification of the criteria used for selection or exclusion of developing countries receiving 
preferential treatment.  The information provided by Norway so far was useful and would be reviewed 
by his delegation, which might have further comments at the next CTD meeting. WT/COMTD/M/71 
Page 6  
 
  23. The Chairman
 sought clarification from the Indian representative as to whether India wished 
to pursue this matter bilaterally, or in the Committee. 
24. The representative of India  said that the matter could be taken up bilaterally. 
25. The representative of Brazil  said that he would like to have the opportunity to continue to 
discuss the issue in the CTD, if necessary.  While his delegation would be pursuing the matter 
bilaterally, he requested that the item remain  on the agenda for the next CTD meeting. 
26. The representative of Pakistan  said that he wished to highlight his delegation's systemic 
concerns with the criteria that had been used to differentiate between developing countries in 
Norway's GSP scheme.  He also expressed some d oubt on the desirability of using several criteria 
from different sources in establishing a classification of countries.  He in particular sought further 
clarification from Norway on the utility of the UN population criterion of 75 million.   
27. The Chairman  said that this item would appear on the agenda of the next CTD meeting.  In 
the time until the next meeting, he encouraged  the concerned delegations to pursue the matter 
bilaterally.     
28. It was so agreed .  
D. DECLINING TERMS OF TRADE FOR PRIMARY COMMODITIES , AND ITS IMPLICATION TO TRADE 
AND DEVELOPMENT OF PRIMARY COMMODITY EXPORTING COUNTRIES  
- PRESENTATION BY THE UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT 
(UNCTAD ) 
29. The Chairman  recalled that it had been agreed at the last CTD meeting that he would continue 
his informal consultations with Members to get a better idea as to how the Committee could continue 
to add value in its discussion on commodities.  He r ecalled that it had also been agreed at the last 
meeting that UNCTAD would be invited to the pr esent meeting to provide a brief outline of the 
organization's mandate on commodities, in particular  in light of the UNCTAD XII Conference and the 
resulting Accra Accord, as well as the work that th e organization had been undertaking in this area 
since the Conference.  He was pleased that UNCT AD had accepted the invitation.  He introduced 
Mr. Samuel Gayi, Senior Economic Affairs  in UNCTAD's Special Unit on Commodities. 
30. The representative of UNCTAD  said that the Accra Accord instructed UNCTAD's work on 
commodities to be undertaken around the organization's three pillars of activities, namely research and analysis, the intergovernmental process and techni cal cooperation.  Work was to be carried out in 
coordination with other interna tional and regional actors, and re levant international commodity 
bodies.  The Accord called for UNCTAD to continue to play a key role in addressing the trade and 
development problems associated with the commodity economy.  This included all commodity 
sectors, including agriculture, forestry, fisheries, metals and minerals, and oil and gas.  UNCTAD was 
also to monitor developments and challenges in commodity markets and address links between 
international commodity trade and national devel opment, particularly with regard to poverty 
reduction.  In addition, the organization was instructed to enhance its efforts to help 
commodity-dependent developing countries to harness development gains from the current 
commodity boom, and to deal with trade and development problems related to commodity 
dependence. 
31. He went on to discuss some of the specific activities that UNCTAD's mandate entailed.  
Under the research and analysis pillar, analytical  studies on commodity development and trade were 
to be prepared.  The organization would also undert ake research on sustainable strategies and policies,  WT/COMTD/M/71 
 Page 7 
 
 
  including supply-side capacity, value addition and diversification.  With regard to technical 
cooperation and advisory services, UNCTAD aimed to  help countries develop national commodity 
strategies.  The organization assisted countries in building supply-side capacity, and in moving up the 
value chain or diversifying.  Other areas of assistance included:  compliance with public, private, or international trade standards;  the improvement of access to commodity information and databases; 
human resource development and in stitutional development;  and the promotion and improvement of 
transparency and accountability, especially in extr active industries.  He noted that UNCTAD's 
assistance on the last two elements he had mentione d were of a demand-driven nature, in the sense 
that assistance was provided at the request of a member country.  He added that UNCTAD was developing commodity financing and risk manage ment schemes, including commodity exchanges.  
The organization had been instructed to avoid dupl ication, and to work in coordination with other 
relevant actors already active in these areas. 
32. With regard to the intergover nmental process, he said that UNCTAD would continue its work 
on consensus building.  This included looking at wa ys to integrate commodity policies into national, 
regional and international development, as well as in to poverty reduction strategies.  In addition, the 
organization would work in finding the most appropr iate trade-related policies and instruments to 
resolve commodity problems.  Investment and fina ncial policies for accessing financial resources for 
commodity-based development would also be consid ered.  He said that an institutional innovation 
coming out of the UNCTAD XII Conference was th e establishment of the annual sessions of the 
Intergovernmental Group of Experts.  These Multi- Year Expert Meetings (MYEMs) on commodities 
aimed to provide practical and actionable outcomes for addressing the challenges relating to the 
long-standing commodity trade and development i ssues identified in the Accra Accord.  They 
additionally aimed to assure development gains from the commodity boom.  Also with regard to the 
intergovernmental process, he said that UNCTAD w as building multi-stakeholder partnerships with 
non-governmental organizations and civil society or ganizations as part of the its innovative approach 
to resolving commodity-related problems.  
33. Finally, he briefly turned to the institutional arrangements that  had been put in place within 
UNCTAD for delivering the organization's work on commodities.  He informed the Committee in 
particular that a new Special Unit on Commodities ha d been established, which reported directly to 
the Secretary-General of UNCTAD.   
34. The representative of Nigeria
 requested that UNCTAD's presentation be provided in writing 
to interested delegations. 
35. The Chairman  observed that UNCTAD had been given a mandate of primary importance in 
the area of commodities.  He proposed that the Co mmittee agree to periodi cally invite UNCTAD to 
provide updates on the progress of its work in this ar ea.  He believed that this would be a useful way 
for Members to be kept abreast of the commod ities-related work taking place at UNCTAD.  More 
generally, he believed that UNCTAD's presentati on of its work would help the CTD in its 
consideration of how it could henceforth treat the co mmodities issue.  He suggested that he continue 
his informal consultations with Members on this ma tter.  At the Committee's next meeting, he hoped 
to be in a position to propose a manner in which comm odities could henceforth be treated in the CTD.   
36. It was so agreed .   
E. DECISION ON TRANSPARENCY FOR PREFERENTIAL TRADE ARRANGEMENTS (WT/L/672 ) 
37. The Chairman  said that the 14 December 2006 Gene ral Council Decision on "Transparency 
for Preferential Trade Arrangements" – contai ned in document WT/L/672 – invited the CTD to 
consider transparency for preferential arrangement s under paragraph 2 of the Enabling Clause – other WT/COMTD/M/71 
Page 8  
 
  than RTAs – and report back within six months fo r appropriate action by th e General Council.  The 
Council had since extended the deadlin e to its December 2008 meeting. 
38. He recalled that in his report to the General Council in July 2008, he had informed the 
Council of the progress that had been made on this matter.  He had referred in particular to the 
usefulness of the small-group informal consultations  that he had held, on the basis of which the 
proponents were able to revise their draft proposal  on more than one occasion.  He now wished to 
further inform the Committee that he had since con tinued with his informal consultations.  This had 
allowed the proponents to further refine their dr aft proposal, which had now been circulated in 
document JOB(08)/103.  He noted that this docum ent had only just been made available, and 
Members would clearly need some time before th ey would be in a position to make detailed 
comments.  Therefore, he did not plan to have a substantive discussion on the document at today's 
meeting.  In line with what he had outlined at earlier CTD meetings, his intention was to initially 
consider the text in an informal, open-ended CTD m eeting dedicated to the issue of transparency for 
preferential trade arrangements (PTAs), which he woul d call shortly.  That being said, he indicated 
that he would like to invite the proponents to introdu ce their document at the pr esent meeting, as this 
would be useful to Members. 
39. The representative of Brazil
 said that the proponents' draft proposal built upon the elements 
and guidelines contained in a conceptual pape r by Brazil and India circulated as document 
JOB(07)/142 in October 2007.  The draft proposal w as the result of discussions between the original 
proponents, joined in the course of the year by  the US and China as co-sponsors, and interested 
delegations in Geneva.  The draft proposal set out procedures for the consideration of transparency for 
PTAs similar to those contained in the Transpar ency Mechanism for RTAs, but with the necessary 
adaptations due to the specific nature of the pref erences granted and the schemes that supported them.  
In drafting the proposal, the aim of the proponents had been to guarantee an appropriate level of 
transparency for the beneficiaries of preferential treatment, and the WTO membership in general, 
while avoiding disproportionate burdens on notifying Members.  He said that the proponents were 
presenting the draft proposal as a contribution to a gr eater degree of transparency in the WTO.  The 
proponents strongly supported all forms of transpar ency, not only for PTAs, and were confident that 
the General Council would know ho w best to formalize this and other initiatives concerning 
transparency.  He welcomed the Chairman's in itiative to convene an informal, open-ended CTD 
meeting and, in that regard, indicated the propone nts' readiness to discuss an y aspects of the proposal. 
40. The representative of India  said that the circulation of the draft proposal, after several rounds 
of informal consultations, was a clear pointer that  significant progress had been made.  He expressed 
appreciation for the constructive engagement shown by Members in the informal consultations.  On 
the draft proposal, he noted that Brazil had succinctly  elucidated some of its salient features.  He 
looked forward to discussing further details of th e proposed PTA Transparen cy Mechanism in an 
informal, open-ended CTD meeting.  His delega tion was confident that the proposed mechanism 
would address the systemic issue of transparency for a large set of trade arrangements which fell 
outside the ambit of the Tran sparency Mechanism for RTAs. 
41. The representative of the United States  supported the interventions by Brazil and India.  She 
said that her delegation looked fo rward to continuing to work with the co-sponsors and other 
Members on this initiative.  Her delegation appreciated  the work that had been undertaken thus far in 
advancing the proposed PTAs Transparency Mech anism towards a positive outcome.  She supported 
the Chairman's proposal to have the proponents' draf t proposal considered in an informal, open-ended 
session of the CTD as soon as possible. 
42. The representative of China  associated his delegation with the interventions by Brazil, India 
and the United States.  He believed that the proposed Transparency Mechanism for PTAs would 
benefit the multilateral trading system and the WTO membership.  While the circulation of the draft  WT/COMTD/M/71 
 Page 9 
 
 
  proposal was a significant step forward, he also ca lled on the Committee to accelerate its work.  China 
was committed to working with Members to try to conclude the CTD's consideration of transparency 
for PTAs by the end of 2008. 
43. The representative of the European Communities  said that her delegation welcomed enhanced 
transparency for all preferential arrangements, wh ether reciprocal or non-reciprocal.  The proposed 
Transparency Mechanism for PTAs was an import ant complement to the work that was being 
undertaken in the context of the RT As Transparency Mechanism.  She pointed out that the decision to 
work on transparency for PTAs was the result of discussions that had taken place leading up to the 
adoption of the RTAs Transparency Mechanism.  He r delegation welcomed the fact that the proposed 
PTAs Transparency Mechanism would shed more light on the preferential schemes of both developed 
countries and developing countries. 
44. She continued by saying that her delegation woul d need to have further discussions with the 
proponents on some aspects of their draft proposal.  For one thing, clarification was sought on the form of an eventual decision to establish a Transparency Mechanism fo r PTAs.  In addition, in order 
to gain a clearer idea of what could be expect ed from the mechanism in a practical sense, her 
delegation was in favour of seeing a mock factual presentation of a PTA.  She noted that the annual 
reporting on PTAs envisaged in the draft proposal im plied significant efforts by notifying Members, 
and in this regard appreciated Brazil's co mment that the mechanism should not create a 
disproportionate burden on notifying Members.  Finally, she expressed hope that the eventual 
implementation of the PTAs Transparency Mechanis m would address some of the difficulties that the 
Committee had encountered in recent years in c onsidering some notifications under the Enabling 
Clause, in particular those concerning GSP schemes.      
45. The representative of Japan
 emphasized the importance of transparency for preferential 
treatment. She said that her delegation had been  participating in the small-group, informal 
consultations called by the Chairman on the issu e of PTA transparency, and looked forward to 
Members' discussion on the issue in an informal, open-ended CTD meeting.   
46. The representative of Canada  thanked the proponents for having taken into account her 
delegation's comments in the draft proposal.  She expressed support for the draft proposal.  
47. The representative of Barbados  welcomed the Chairman's initiati ve to have the draft proposal 
discussed in an informal, open-ended CTD meeting.  He said that he had one specific question at this 
time on the proposal.  In particular, he wished to know whether the proponents envisaged the proposed PTAs Transparency Mechan ism to be applied on a provisional basis, as was currently the 
case for the RTAs Transparency Mechanism.    
48. The representative of Pakistan
 expressed support for the draft proposal.  His delegation 
looked forward to discussing it in an informal, open-ended CTD meeting. 
49. The representative of Mexico  said that her delegation was interested in discussing the 
proposal in more detail in an informal, open-ended CTD meeting. 
50. The representative of Chile  said that his delegation looked forward to discussing the proposal 
further in an informal, open-ended meeting of th e CTD.  He observed that his delegation had a 
number of questions on the draft proposal.  He fi rstly noted that his delegation shared a similar 
concern to that raised by Barbados concerning pr ovisional application.  He also requested some 
elaboration on the logic and rationale behind th e proposed PTAs Transparency Mechanism.   
51. The representative of El Salvador  said that his delegation had been participating in the 
informal consultations which had been called by th e Chairman, and looked forward to having the draft WT/COMTD/M/71 
Page 10  
 
  proposal considered by the CTD in an informal, ope n-ended meeting.  His delegation was particularly 
interested in discussing the scope of the proposed mechanism.  He also supported the suggestion by 
the EC of the desirability of seeing a mock factual presentation of a PTA.  
52. The representative of Costa Rica
 said that the subject matter of the draft proposal was 
important and relevant.  His dele gation would make efforts to provide comments on the draft proposal 
at the informal, open-ended CTD meeting. 
53. The representative of Nigeria  said that he supported the Chairman's initiative to hold an 
informal, open-ended CTD meeting to give Members the opportunity to have an in-depth discussion 
on the draft proposal.  
54. The Chairman  said that the CTD would need to have a systematic discussion on several 
aspects of the draft proposal.  He did not wish to go into the details of the proposal at the present 
meeting.  He also made a distinction between the technical issues to be resolved, and broader political 
issues. 
55. The representative of Brazil  believed that the proposed PTAs Transparency Mechanism, once 
implemented, would help the CTD in overcomi ng the difficulties it had recently encountered in 
considering GSP schemes.  It was his understanding  that a mock factual presentation of a PTA was 
already in the process of being put together.  He felt that this would help clarify some aspects of the 
draft proposal.  On the question concerning the nature  of the application of the proposed mechanism, 
he observed that the mandate given to the CTD by the General Council did not foresee a provisional 
application.  With regard to the relationship between the proposed PTAs Transparency Mechanism 
and the Transparency Mechanism for RTAs, he not ed that differences between the two stemmed from 
the fundamental differences in the nature of PTAs and RTAs.  Additionally, the proponents had in 
their draft proposal taken into account the experi ences gained in the application of the RTAs 
Transparency Mechanism.  
56. The representative of th e European Communities , referring to the observation made by Brazil 
concerning the mandate given to the CTD by the General Council, noted that the mandate did not 
even specifically mention that a mechanism for co nsidering PTA transparency be established.  She 
added that her delegation considered issues relati ng to the implementation of the proposed mechanism 
to be an integral part of the technical work that needed to be completed.    
57. The Chairman  said that important progress had been made on this matter.  He reminded 
Members that he would need to report to the Gene ral Council in December 2008.  It was his hope that 
the CTD would have come to a decision by th en. In the time remain ing until the December 
General Council meeting, he would c ontinue to work with Members.  As he had already indicated, his 
intention was to call an informal, open-ended CTD m eeting to consider the proponents' draft proposal.  
The matter would also be taken up at the next formal meeting of the CTD.   
58. It was so agreed . 
F. REVIEW OF STEPS T AKEN TO PROVIDE DUTY -FREE AND QUOTA -FREE MARKET ACCESS TO 
LEAST -DEVELOPED COUNTRIES  
59. The Chairman  said that an item concerning the Hong Kong Decision on duty-free and 
quota-free (DFQF) market access for LDCs had been on the CTD's agenda since early 2006.  Under 
this item, delegations had provided information on the steps they we re taking, or had already taken, to 
provide DFQF market access to LDCs.  Written co mmunications by some Members had also been 
considered.  He recalled that the CTD had to date  undertaken two of its mandated annual reviews of 
the implementation of the Hong Kong Decision.   WT/COMTD/M/71 
 Page 11 
 
 
  60. The representative of Lesotho , on behalf of the LDC Group, urged those developing countries 
in a position to provide DFQF market access to co me forward and declare their DFQF packages, 
accompanied by simple and transparent rules of origin.  The Group expressed appreciation to those 
Members that had already taken steps to provide LD Cs with DFQF market access, and asked them to 
ensure that their rules of origin we re also simple and transparent.   
61. The Committee took note  of the intervention by Lesotho. 
G. OTHER BUSINESS  
62. The Chairman  recalled that it had been agreed at the last CTD meeting that the Committee 
would revert to the matter raised by the EC concer ning the change in the notification status of the 
GCC Customs Union from Article XXIV of GATT 1994  to the Enabling Clause.  He informed 
Members that, after the last meeting, Saudi Arab ia had circulated a communication in document 
WT/COMTD/66, providing replies to the questions raised by some Members on the GCC Customs Union. 
63. The representative of the European Communities
 said that, after having taken careful note of 
the replies provided by Saudi Arabia, his delegation could only reiterate its concerns concerning the 
change in the notification status of the GCC Customs Union.  He observed that Members' decision 
concerning the provision under which to notify an RTA should be driven by appropriate legal 
considerations.  The understanding of  his delegation was that paragraph 2(c) of the Enabling Clause 
did not provide the appropriate legal basis justifying  the formation of a customs union.  In particular, 
his delegation believed that the Enabling Clause co uld not be invoked to justify the reduction or 
elimination of non-tariff measures, which was an  essential component of a customs union.  His 
delegation's view was that the appropriate pr ovision under which to notify a customs union was 
Article XXIV of GATT 1994.  In this light, he indicat ed that further discussions on this issue should 
take place in the CRTA, which his delegation saw as  the appropriate forum for the consideration of 
customs unions. 
64. The representative of the United States  said that her delegation, like the EC, was of the view 
that paragraph 2(c) of the Enabling Clause did not provide the legal basis for the notification of a 
customs union.  Her delegation continued to have con cerns about the change in the notification of the 
GCC Customs Union to be exclusively under the Enabling Clause.  The US did not support moving forward with the process of reviewing the agreemen t until clarification had been obtained from the 
GCC member countries.  She said that Saudi Arabia  had observed at the last CTD meeting that the 
GCC countries were all developing countries, an d that the GCC Customs Union was a regional 
agreement for the mutual reduction or elimination of ta riffs.  It followed, in Saudi Arabia's view, that 
the agreement fell within paragraph 2(c) of the Enabling Clause and that it was appropriate for the 
Parties to notify the agreement under the Enabling Clause.  While this interpretation was still under 
discussion, she noted that the Enabling Clause – in  contrast to GATT Article XXIV – allowed for 
action inconsistent with Article I of the GATT only.  In the event that a regional arrangement under 
paragraph 2(c) resulted in measures inconsiste nt with other provisions of GATT 1994, that 
inconsistency would gene rally not be excused unless the regional arrangement were a free-trade 
agreement (FTA) or a customs union covered by GATT Article XXIV. 
65. She continued by saying that, upon review of the WTO tariff bindings of the GCC countries, 
it appeared that four out of six countries had bindi ngs that were below the common external tariff of 
the GCC.  She noted that the application of ta riffs that exceeded a Member's bindings would be 
inconsistent with a Member's obligations under GATT Article II, unless otherwise permitted under the 
GATT 1994.  It  appeared, therefore, that if the GCC countries sought to apply tariffs beyond their bindings, their agreement would need to be an FTA or customs union consistent with Article XXIV and, accordingly, would need to be promptly no tified in accordance with paragraph 7(a) of that WT/COMTD/M/71 
Page 12  
 
  Article.  Her delegation encouraged the GCC to s ubmit its notification under GATT Article XXIV, in 
accordance with paragraph 7(a) of that Article.  Her delegation also requested that this item be further 
discussed at the upcoming meeting of the CRTA, a nd be added to the agenda for that meeting as 
necessary. 
66. The representative of Saudi Arabia
, on behalf of the GCC countries, noted that the 
interventions by the EC and the US at the present meeting raised issues that had not been raised 
previously.  He requested that the EC and the US provide their comments in writing for further consideration by the GCC countries. He added th at the GCC countries maintained the position that 
they had the right to notify the GCC Customs Uni on under the Enabling Clause, and did not agree that 
the matter should be referred to the CRTA.     
67. The representative of Kuwait
 supported the intervention by Saudi Arabia.  He said that, at the 
last CTD meeting, Saudi Arabia had given a proper  legal response to the questions raised by some 
Members on the change in the notification status of the GCC.  His delegation wished to see this matter 
closed at the present meeting.  This would allow th e GCC countries to turn their attention to the issue 
of providing the Secretariat with the necessary data that would permit the preparation of the factual 
presentation on the GCC Customs Union.   
68. The representative of Brazil  said that this matter raised systemic concerns.  He requested that 
those Members that had raised questions on the cha nge in the notification status of the GCC Customs 
Union put them in writing and circulate them for the benefit of the membership .  He was particularly 
interested in these Members' views regarding th e legal status of customs unions notified under 
paragraph 2(c) of the Enabling Clause.  He ob served that MERCOSUR, a customs union, had been 
notified under this provision.  
69. The Chairman  noted that there had been requests fo r the questions raised by some Members 
on this matter to be put in writing.  With rega rd to the view expressed that the matter should be 
considered in the CRTA, he observed that it was fo r the CRTA to make this decision.  He indicated, 
however, that the CTD would need to revert  to this matter at its next meeting.  
70. It was so agreed . 
71. The representative of UNDP  said that she wished to inform  the Committee of a recent study 
that had been undertaken under the auspices of UNDP , which was believed to be of interest and 
relevance to the work of the CTD, particularly in the context of Aid for Trade.  The study – which had 
been prepared by Stephen Kosack of Brown Univ ersity – was titled "Trade for Poverty Reduction – 
the Role of Trade Policy in Poverty Reduction Strate gy Papers".  The objective of the study was to 
assess the level of integration of trade policy in  countries' Poverty Reduction Strategy Papers 
(PRSPs).  A total of 72 PRSPs completed by 54 countries between 2000 and early 2008 had been examined.  The general conclusion was quite positive.  The author was of the view that PRSPs were 
playing an important role in trade policy.  At th e same time, the author believed that there was room 
for improvement in the process of integrating trade into poverty reduction.  She said that UNDP saw a 
clear link between this study and the Aid for Trade agenda.  In this light, UNDP was willing to 
facilitate a presentation of the study in an appropriate WTO body.       
72. The Chairman
 said that he would consult on how UNDP 's offer could be accommodated.    
73. The meeting was adjourned . 
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