. /.   WORLD TRADE  
ORGANIZATION  TN/AG/GEN/31 
2 June 2010 
 
 (10-3040) 
Committee on Agriculture 
Special Session Original:   Spanish 
 
 
 
PROPOSAL CONCERNING PARAGRAPH 5 OF ANNEX J TO TN/AG/W/4/REV.4 
OF 6 DECEMBER 2008 ON PROVISIONS  FOR SPECIAL AND DIFFERENTIAL 
TREATMENT ACCORDED TO LEAST DEVELOPED COUNTRIES AND 
NET FOOD-IMPORTING DEVELOPING COUNTRIES 
 
Communication from Cuba  
   The following communication dated, 1 June 20 10, is circulated at the request of the 
delegation of Cuba in the context of th e negotiations on modalities for agriculture. 
 
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I. INTRODUCTION 
1. The Marrakesh Declaration  and the Decision on Measures Concerning the Possible Negative 
Effects of the Reform Programme on Least D eveloped and Net Food-Importing Developing Countries 
recognize the difficulties these Members face in terms of  the availability of adequate supplies of basic 
foodstuffs from external sources on reasonable terms and conditions. 
2. The food, energy, financial and economic cr ises have worsened economic and trade 
conditions in most of these Members.  More pa rticularly, one of the main aspects of the global 
financial crisis has been a contraction in the financ ing of international trade, which has put developing 
importing Members in a more disadvantaged pos ition given their limited financial capacity. 
3. The issue of export credits is of the utmost importance and a priority for Cuba as both a net 
food-importing developing country and a nation subj ected to an economic, commercial and financial 
embargo
1 which is barring its access to credit from interna tional financial institutions.  Because of this 
situation, it is unable to disclose the identity of cr edit grantors since this is now a matter of national 
security. 
4. Accordingly, Cuba is unable to accept the c onditions as they now stand in the modalities set 
out in paragraph 5 of Annex J. 
5. While it was agreed at the Hong Kong Ministerial Conference to ensure the phasing out of all 
forms of export subsidies by the end of 2013, the Preamble to the Agreement on Agriculture 
recognizes that "commitments under the reform pr ogramme should be made in an equitable way 
among all Members, having regard to non-tra de concerns, including food security … ". 
6. As it now stands, paragraph 5 of Annex J of the modalities text provides for a repayment term 
of between 360 and 540 days, and for an extension of this time-frame for countries facing exceptional 
                                                      
1 See United Nations General Assembly Resolution A/RES/64/6. TN/AG/GEN/31 
Page 2  
 
  circumstances in obtaining financing and/or in  accessing loans granted by international financial 
institutions.  For Cuba this language is still inadequate for the following reasons: 
- The conditions in which Cuba runs its economy and trade are unique; 
- the terms on which Cuba obtains the grant of commercial credit are more onerous than 
those applied to the other Members; 
- imports are what ensure greater availability of foodstuffs, and are therefore essential to 
ensuring the country's food security; 
- the right established in the Decision on the Possible Negative Effects of the Reform 
Program on Least Developed and Ne t Food-Importing Developing Countries  to draw 
on the resources of international financial in stitutions does not apply for Cuba.  Unlike 
the other Members, Cuba is barred from using these facilities agreed on in the WTO;  
and 
- the current wording of paragraph 5 does not ensure automatic granting of the 
extension designed for least developed a nd net food-importing developing countries. 
7. For the foregoing reasons, Cuba is seeking a solu tion that will address the particular situation 
of the country, which warrants exceptional treatment , being especially vulnerable owing to factors 
beyond its control.  At the same time, Cuba wi shes to see greater predictability regarding the 
extension designed for least developed a nd net food-importing developing countries. 
II. PROPOSAL 
8. Cuba proposes amending para graph 5 of Annex J and the corresponding footnote to read as 
follows: 
 5. Notwithstanding the terms of paragraphs  3(a) and 4 (a) above, least developed and 
net food-importing developing countries as listed in G/AG/5/Rev.8 shall be accorded 
differential and more favourable treatment co mprising allowance for a repayment term in 
respect of them of between 360 and 540 days for the acquisition of basic foodstuffs.  Should one of these Members face exceptional circumstances which still preclude financing normal 
levels of commercial imports of basic f oodstuffs and/or in accessing loans granted by 
multilateral and/or regional financial institutions  within these time-frames, it shall have an 
extension of such a time-frame.  The standard  monitoring and surveillance provisions of the 
Agreement shall apply to these cases.
2 
 
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2 In the event that Cuba is a recipient Member in this situation, the time-frame shall be unlimited and 
any such monitoring and surveillance shall not apply without the prior express consent of Cuba.