. /.  WORLD TRADE  
ORGANIZATION   
WT/REG/W/65 
28 October 2011  
 
(11-5452) 
Committee on Regional Trade Agreements Original:   English 
  
 
PROPOSAL FOR AN IMPLEMENTATION OF  ARTICLE XXIV OF GATT 1994, IN  
ORDER TO HARMONIZE CURRENT WTO DISPOSITIONS ON DEVELOPMENT 
ASPECTS OF REGIONAL TRADE AGREEMENTS FOR INCLUSION AT  
THE EIGHTH MINISTERIAL CONFERENCE 
 
 
 The following communication, dated 27 October 2011 has been received from the Delegation 
of Argentina. 
_______________ 
 
I. INTRODUCTION 
1. Economic and trade integration through regiona l trade agreements (RTAs) has become a 
cornerstone of the economic development strategy for many developed and developing countries.  
2. As stated by some Members, economic and trade integration can significantly contribute to 
stability and development. Therefore, integration has an important role in sustaining and strengthening the multilateral system in the long-term.
1 
 Moreover, it is fundamental for many de veloping countries to rely upon a multilateral 
framework in order to cope with their deve lopmental strategies through regional integration.2 
 
Current Situation 
 
3. With regards to RTAs involving developi ng Members, unbalance exists among current 
WTO dispositions: 
(a) On the one hand, with regards to trade in goods, Article XXIV of GATT 1994 does not 
include specific dispositions that take into acc ount the necessities of developing countries in 
order to promote their developmental st rategies through regional integration. 
 In a certain way, the Enablin g Clause has covered this legal gap, becoming a useful and 
successful tool, but with a relatively limited applica tion due to, for instance, its lack of specificity 
regarding the conditions for the establishment of RTAs. 
 
(b) On the other hand, with regards to trade in  services, paragraph 3 of Article V of the 
General Agreement of Trade in Services (GATS)  contains specific dispositions which involve 
considerations related with de velopment.  In that paragra ph a distinction is established 
between: 
(i) agreements between developed and developing countries (paragraph 3a) of 
 Article V);  and 
                                                      
1 See document TN/RL/W/14, European Communities. 
2 See documents TN/RL/W/155 of China and TN/RL/W/185 of the ACP Group. WT/REG/W/65 
Page 2  
 
  (ii) agreements involving exclusively developi ng countries (paragraph 3 b) of Article V).  
 In both cases flexibilities and more favorable tr eatment is given to developing countries. 
 
4. Consequently, there is a certain legal asymme try with respect to the economic and trade 
conditions regarding goods and services. 
5. At the same time, there is an increasing num ber of RTAs which contains dispositions on 
goods and services as well.  Many of them have been set up between deve loped and developing 
Members, or among developing Members only. 
Proposal 
 
6. As some Members have suggested, a better c oherence should exist in the dimensions of 
development contained in the di fferent WTO dispositions on RTAs.3 
 In that regard, co-sponsors consider that th e Eighth Ministerial Conference could be an 
opportunity to make practical recommendations  that, without prejudice of the Doha Round 
negotiations regarding RTAs, allow a pragmatic and more harmonized application of current 
WTO rules, which take into account the developmen tal aspects and necessities of many countries that 
set up RTAs.  
 At the same time, this would be a way to comp ly with the Doha Ministerial Declaration that 
requires to take into account the developmen tal aspects of regional trade agreements.
4 
 7. It is also worth noting that in debates both in the Negotiating Group on Rules and in the 
Committee on Regional Trade Agreements, several Me mbers have made proposals with regards to the 
developmental aspects of the RTAs.5 
8. In line with the abovementioned consider ations, co-sponsors propose that additional 
flexibilities should be considered for developing count ries when they are contracting parties to RTAs 
notified under Article XXIV of GATT 1994.  These fl exibilities should be similar to, for instance, 
those already established in Article V.3 of GATS, and the Enabling Clause. 
 In view of the abovementioned considera tions, co-sponsors suggest that the following 
paragraph be included in the Ministerial Declaration: 
 
 "Without prejudice of the final results of current negotiations on regional trade 
agreements, and with the objective to contri bute to a greater harmonization of current 
rules on regional trade agreements, when at le ast one of the parties to an agreement of 
the type considered in Article XXIV of GATT 1994 is a developing country, additional flexibilities shall be foreseen with regards to all the conditions stated in that Article, 
taking into account similar dispositions stat ed in Article V of GATS and also especially 
the Enabling Clause." 
__________  
                                                      
3 See TN/RL/W/179, document of the European Communities. 
4 See paragraph 29 of Doha  Ministerial Declaration. 
5 In addition to the abovementioned communications by China (TN/RL/W/155), the ACP Group 
(TN/RL/W/185) and the EC (TN/RL/W/179), see also  the communications by Turkey (TN/RL/W/32 and 
TN/RL/W/167) and Australia (TN/RL/W/180).