WORLD TRADE  
ORGANIZATION  WT/COMTD/71 
11 October 2010 
 (10-5204) 
Committee on Trade and Development  
  
 
TRANSPARENCY MECHANISM FOR PREFERENTIAL TRADE ARRANGEMENTS  
 
Report by the Committee on Trade and Development
 
  
 The General Council, in its decision of 14 December 2006 (WT/L/672), invited the 
Committee on Trade and Development to consider transparency for preferential arrangements under 
paragraph 2 of the Enabling Clause (other than RTAs),  and to report back for appropriate action.  The 
Committee on Trade and Development concluded its c onsideration of this matter at its 80th Regular 
Session on 4 October 2010 and agreed on the attached recommendation for a Transparency 
Mechanism for Preferential Trade Arrangements, which is being forwarded to the General Council for 
adoption.WT/COMTD/71 
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  TRANSPARENCY MECHANISM FOR PREFERENTIAL TRADE ARRANGEMENTS 
 
A.  Coverage 
 
1. The transparency mechanism shall apply to the following Preferential Trade Arrangements 
(PTAs):  
(a) PTAs falling under paragraph 2 of the Deci sion of 28 November 1979 on Differential 
and More Favourable Treatment Reciprocity and Fuller Participation of Developing 
Countries ("Enabling Clause"), with the exception of regional trade agreements under paragraph 2(c)
1 as described in the General C ouncil Decision of 14 December 2006 
(Transparency Mechanism for Re gional Trade Agreements).   
(b) PTAs taking the form of preferential treatm ent accorded by any Member to products 
of least-developed countries. 
(c) Any other non reciprocal preferential  treatment authorised under the WTO 
Agreement.   
2. The purpose of this Mechanism is to enhance tr ansparency of the PTA under consideration.  
These procedures do not prejudge the substance of the relevant provisions of the Enabling Clause or any other instrument as referred in 1(a), (b) or (c ), nor affect Members' rights and obligations under 
the WTO Agreements in any way.  
B.  Notification 
3. The required notification of a PTA shall take place as early as possible; it will occur when 
practicable before the application of preferential treatment by the notifying Member
2 and, at the latest, 
three months after the  PTA is in force.   
4. Notifying Members shall specify under which pr ovision or provisions in paragraph 1 their 
PTAs are notified.  The Member notifying a PTA shall provide the full text of the related legislation 
and any related instruments (e.g., regulations, anne xes, schedules, protocols), in one of the WTO 
official languages and in an electronically exploita ble format, including, when appropriate, internet 
links.   
C.  Procedures to Enhance Transparency 
5. Upon notification, the PTA shall be considered  by the Committee on Trade and Development 
(CTD) under the procedures established in paragraphs 6 to 13 below. 
6. The consideration by the CTD of a notified PTA  shall be normally concluded in a period not 
exceeding 12 months after the date of notification. 
7. To assist Members in their consideration of the PTA:  
(a) the notifying Member shall make available to the WTO Secretariat data as specified 
in Annex 1, in an electronically explo itable format.  If the PTA covers several 
                                                      
1 For greater clarity, since it has been notified to the GATT/WTO unde r paragraph 2(c) of the Enabling 
Clause, the Global System of Trade Preferences (GSTP) is not covered by this Mechanism, but instead, is 
covered by the General Council D ecision of 14 December 2006 (Transpa rency Mechanism for Regional Trade 
Agreements). 
2 The Notifying Member is the Member granting the non-reciprocal preferences.  WT/COMTD/71 
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  sub-schemes the data should be detaile d enough so as to allow an analysis by 
sub-scheme.  Disaggregated data, if available for these sub-schemes, shall be provided. 
(b) the WTO Secretariat shall prepare a guide indicating where specific types of 
information can be found, following, as a ppropriate, the template contained in 
Annex 2.  The guide shall be made availabl e as soon as possible after the notification.  
Members shall be free to present the guide themselves when notifying PTAs.  
(c) the WTO Secretariat shall prepare a factual presentation of the PTA, on its own 
responsibility and in full consultation w ith the notifying Member, before it is 
circulated to Members.  As a part of these preparations, Members receiving benefits 
under the PTA shall, upon request, be gi ven an opportunity to view and submit 
comments on the draft factual presentation,  within a specified timeframe, while 
respecting deadlines allowed for final cons ultations with the notifying Member.  
8. The data referred to in paragraph 7(a) shall be  made available as soon as possible.  Normally, 
the timing of the data submission shall not ex ceed ten weeks – or 20 weeks in the case of PTAs 
notified by developing country Members - after the date of notification of the PTA. 
9. The guide and factual presentation provided for in  paragraphs 7(b) and 7( c) shall be primarily 
based on the information provided by the notifying Member; if necessary, the WTO Secretariat may also use data available from other sources, in full consultation with the Notifying Member and taking 
into account the views of the Notifying Members in furtherance of factual accuracy.  In preparing the 
factual presentation, the Secretariat shall use as a basis the elements contained in Annex 3.  
Additionally, the Secretariat may also include in the factual presentation, as appropriate, the following 
elements:  background information, scope and c overage (products and countries), exceptions, S&D 
provisions, specific rules concerning the applica tion of the scheme (graduation, eligibility for 
additional preferences), rules of origin, provisions  affecting trade in goods (IP, labour, environment, 
TBT, SPS, trade remedies, if applicable), speci fic customs-related procedures, composition of 
merchandise imports from beneficiary member, fulfil ment of TRQs, relationship with other PTAs by 
the same Notifying Member and imports under the PTA in the last three years, if applicable.  In 
preparing the factual presentation, the WTO Secret ariat shall refrain from any value judgement on any 
matters. 
10. The WTO Secretariat's factual presentation shall not be used as a basis for dispute settlement 
procedures or to create new rights and obligations for Members.   
11. As a rule, a single formal meeting of the Committee on Trade and Development – Dedicated 
Session will be devoted to consider each PTA notifie d; any additional exchange  of information should 
take place in written form. 
12. The WTO Secretariat's factual presentation, as well as any additional information submitted 
by the notifying Member, shall be circulated in a ll WTO official languages not less than 13 weeks in 
advance of the meeting devoted to the considera tion of the PTA.  Members' written questions or 
comments on the PTA under consideration shall be  transmitted to the notifying Member through the 
WTO Secretariat at least eight weeks before th e corresponding meeting; the notifying Member shall 
normally respond to those questions and comment s within five weeks after receipt; the WTO 
Secretariat shall circulate these questions or comments,  together with replies, to all Members at least 
three days before the corresponding meeting. WT/COMTD/71 
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  13. All written material submitted, as well as the minutes of the CTD meeting devoted to the 
consideration of a notified PTA will be promptly ci rculated in all WTO official languages and made 
available on the WTO website. 
14. Any Member may, at any time, bring to the attention of the CTD any suggestion for 
improvement on the general operation of these pro cedures, including the elaboration, format or 
content of factual presentations by the Secretariat. 
D.  Subsequent Notification and Reporting 
15. Changes affecting the implementation of a PTA during a calendar year shall be notified on an 
annual basis, no later than 30 June of the next imme diate calendar year.  Elements to be notified in 
electronically exploitable format include: 
(a) Legal changes made, including modifications of any related explanatory texts, as well 
as the corresponding schedules, annexes and protocols, in one of the WTO official languages, as applicable. 
(b) Changes in the implementation of the PTA, including, but not limited to, a list of 
graduated beneficiaries and the period of graduation, and of specific product/country 
waivers, if appropriate.
3   
(c) Changes in the preferential tariffs per be neficiary partner applied under the PTA, at 
the tariff-line level. 
16. The notifying Member shall notify data on imports  from each of the beneficiary partners on 
an annual basis at the tariff-line level, in valu e for total imports, imports entered under MFN and 
imports entered under PTA benefits4 no later than 31 October for data of the previous year.  
17. The notifying Member shall not be expected  to make available the annual information 
required in paragraph 15 and 16 if it has already been submitted to the Integrated Data Base, or have 
otherwise been provided to the Secretaria t in an appropriate electronic format.5  References to relevant 
publicly accessible internet websites where this inform ation can be found in electronically exploitable 
format6 and in one of the WTO official languages shall suffice. 
18. To the extent a developing country Member has technical constraints fulfilling the 
notification requirements of paragraph 16, the Me mber will not be expected to do so until 
                                                      
3 [For example, changes in number of beneficiaries; new applications for preferential treatment; 
degraduation of countries, sectors and/or products;  chan ges due to seasonal circumstances; enactment of special 
safeguards;  fulfilment of tariff rate quotas;  changes raising from circumstances related to the extension of other preferential treatment, if applicable.]  This footnote is for purposes of negotiations only and it shall be removed 
from the text after negotiations come to an end.  
4 If the Notifying Member has already submitted the corresponding data to the UNCTAD, the provision 
of a copy of such data to the WTO would be acceptable, provided that it fu lfils the notification requirements set 
forth in paragraph 16. 
5 Data submissions can be furnished in PC database  formats, spreadsheet formats, or text-delimited 
formats; the use of word-processing formats should be avoided, if possible.  With the consent of the Notifying 
Member, trade and tariff data submitted in the context of the annual submissions can subsequently be included 
in the WTO Integrated Data Base (IDB) if it satisfies  IDB data formats.  In this respect, see document 
G/MA/IDB/W/6 for the Guidelines for Supplying PC IDB Submissions and document G/MA/238 and its 
addenda regarding the dissemination of IDB data.   
6 "Electronically exploitable format" means that entir e data sets of a Member's annual data can be 
downloaded without undue restrictions (i.e. no limitations on the number of tariff lines or records that could be 
downloaded) and in formats that lend themselves to proces sing into data base format by the WTO Secretariat.   WT/COMTD/71 
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  31 July 2013.  The Member may submit an outline of  the steps to be taken to fulfil these notification 
requirements to the CTD by 31 July 2012. 
19. The communications submitted under paragraph 15  will be promptly made available on the 
WTO website.  Data to be notified under paragr aph 16 will be promptly made available on the 
Integrated Data Base in line with the dissemination policy adopted for the IDB.7  Data to be notified 
will not prejudge the legal status  of the PTA under consideration. 
E.  Other Provisions 
20. The Committee on Trade and Development is inst ructed to implement this Transparency 
Mechanism.  For purposes of performing the func tions established under this Mechanism, the CTD 
shall convene in dedicated session. 
21. For each PTA in force when  these transparency procedures are adopted, the WTO Secretariat 
shall prepare a factual abstract8, in full consultation with the notifying Member. 
22. Upon request, the WTO Secretariat shall and any Member may provide technical support to 
developing country Members, and especially least-d eveloped countries, in the implementation of this 
Mechanism, in particular – but not limited to – with  respect to the preparation of PTA-related data and 
other information to be submitted to the WTO Secretariat, as well as regarding access to the 
information provided by the notifying Member.    
23. Any Member may, at any time, bring to the a ttention of the CTD information on any PTA that 
it considers ought to have been submitted to Me mbers in the framework of these procedures. 
24. The WTO Secretariat shall maintain an updated electronic database on individual PTAs.  This 
database shall include relevant tariff and trade-re lated information, and give access to all written 
material related to notified PTAs available at the WT O.  The database should be structured so as to be 
easily accessible to the public.  Access to the data  referenced under para graph 17 shall follow the 
dissemination policy adopted for the IDB.9 
25. With respect to PTAs already notified under the relevant WTO transparency provisions and in 
force, they will be subject to the procedures under sections D to E above. 
F.  Reappraisal of the Mechanism 
26. This Mechanism will apply on a provisional basis until Members approve its permanent 
application.  Members will review the Mechanis m after three years, and if necessary modify, the 
Mechanism in light of the experience gained from its provisional operation.  
                                                      
7 Document G/MA/238. 
8 See template on Annex 3. 
9 Document G/MA/238. WT/COMTD/71 
Page 6  
 
  ANNEX 1 
 
Initial Notification of PTAs by Notifying Members
 
  
1. The notifying Member shall notify to the WTO th e information requested in this Annex.  The 
notifying Member shall not be expected to make av ailable the information re quired in this Annex if 
the corresponding data have already been submitted to  the Integrated Data Base, or have otherwise 
been provided to the Secretariat in an appropriate electronic format.
1   
2. The Member notifying a PTA shall submit th e following data, at the tariff-line level:2 
(a) A full listing of preferential duties under the PTA per beneficiary partner. 
(b) A full tariff listing of the notifying Member's MFN duty rates applied on the year of 
the PTA's implementation and on the year preceding it. 
(c) Other data, where applicable (e.g., tariff-ra te quotas, seasonal restrictions, special 
safeguards and, if available,  ad valorem  equivalents for non- ad valorem  duties). 
(d) Product-specific preferential rules of origin as defined in the PTA. 
(e) Import data for the most recent three years preceding the notification from each of the 
beneficiary partners, in value for tota l imports, imports entered under MFN and 
imports entered under PTA benefits.3 
3. The notifying Member shall also supply other ge neral information as it deems appropriate for 
further clarification of the PTA, or indicate any in ternet links where it can be found, as exemplified 
below: 4 
(a) As applicable details of criteria for gra duation and for de-graduation, and on their 
application (any provisions mandati ng an early/previous notification of 
products/countries to be graduated; tim etable for the procedures related to 
graduation). 
                                                      
1 Data submissions can be furnished in PC database  formats, spreadsheet formats, or text-delimited 
formats; the use of word-processing formats should be avoided, if possible.  Trade and tariff data submitted in the context of a PTA notification can subsequently be in cluded in the WTO Integrated Data Base (IDB) if it 
satisfies IDB data formats.  In this respect, see document G/MA/IDB/W/6 for the Guidelines for Supplying PC 
IDB Submissions and document G/MA/238 and its addenda regarding the dissemination of IDB data.  If the Notifying Member has already submitted the corresponding data to the UNCTAD, the provision of a copy of 
such data to the WTO would be acceptable, provided that it fulfils the notification requirements set forth in this 
annex.  
2 References to "tariff-line level" shall be understood to mean the detailed breakdown of the national 
customs nomenclature (HS codes with, for example, 8, 10 or more digits).  It is crucial that all data elements 
supplied use the same national customs nomenclature or ar e associated with correspo nding conversion tables. 
3 Members recognise that for the first notification to be made after entry into force of this Mechanism 
the data pertaining to 2(e) will be submitted by no tifying Member only if it is already available.  
4 Including, but not limited to, (a) criteria and restri ctions for eligibility, modification of beneficiaries 
list;  (b) tariff treatment, different preferential treatment , exceptions to the preferential treatment;  (c) list of 
beneficiaries, number of beneficiaries, history of countries excluded from the preferential treatment;  
(d) handbooks from UNCTAD (for example http://www.unctad.org/en/docs/itcdtsbmisc42rev3_en.pdf and http://www.unctad.org/en/docs/itcdtsbmisc25rev2_e n.pdf);  and (e) from Members governments 
(http://www.ustr.gov/assets/Trade_Development/Preferenc e_Programs/GSP/asset_upload_ file406_10685.pdf  ).   WT/COMTD/71 
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  (b) Indicators of product coverage and exceptions of the arrangement. 
(c) Coverage of countries eligible. 
(d) Technical guidebooks for the utilization of the PTA by potential beneficiaries. 
(e) Any other available explanatory notes and quick  reference material to PTA's features 
and implementation regulations. WT/COMTD/71 
Page 8  
 
  ANNEX 2 
 
Guide to PTAs
 
  
A - BASIC INFORMATION: 
1) Notifying member: (Name of the Notifying Member)  
2) Date PTA entered into force: (Insert date and link to relevant source)  
3) Date of last renewal of the PTA: (Insert date and link to relevant source)  
4) Date of notification to the WTO and symbol of WTO documents: (Insert date and link to relevant source and insert th e symbol of the document and correlated link)  
 
5) Date of expiration of PTA: (Insert date and link to relevant source) 
 
6) Number of Beneficiaries: (Insert current number of Beneficiaries and link to relevant source)  
7) Number of Eligible Products (tariff lines): (Insert current number of eligible products  (tariff lines) and link to relevant source) 
 
8) Enactment of PTA, Related Legisla tion and Publication of PTA modifications : 
(Insert the name/number of the laws within  the notifying Member and correlated link) 
 
9) Authority(ies)  granting the beneficial treatment : 
(Insert which authority is entitled to grant the beneficial treatment and link to relevant source) 
 
10) National authorities in charge of PTA management: (Insert which authority is entitled to manage th e beneficial treatment and link to relevant source) 
 
B – REFERENCES TO INFORMATION ABOUT: 
 
I. BENEFICIARIES  
(a) List of Beneficiaries : 
(Insert the link where the complete list of beneficiaries can be found) 
 
(b) Eligibility : 
(Name the document, article/section where the eligibility criteria can be found and insert the 
specific related link) 
 
(c) Restrictions to Eligibility : 
(Name the document, article/sect ion where restrictions to eligibility can be found and insert the 
specific related link) 
  WT/COMTD/71 
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  (d) Modification to Beneficiaries List : 
(Name the document, article/section where the crit eria for modifying the beneficiaries list can be 
found and insert the specific related link) 
 
 
II. SCOPE OF PRODUCTS (IN ACCORDANCE WITH THE NOTIFYING MEMBER’S 
CLASSIFICATION OF PRODUCTS) 
(a) List of Eligible Products : 
(Insert the link where the complete list of eligible products can be found) 
 
(b) Ineligible products : 
(Insert the link where the complete list of  non-eligible products can be found) 
 
(c) Modification to Eligible Products List : 
(Name the document, article/section where provisions related to modification of eligible products 
can be found and insert the specific related link)  
 
 
III. PTA TREATMENT 
(a) Tariff Treatment : 
(Name the document, article/section where provision s related to tariff treatment can be found and 
insert the specific related link) 
 
(b) Exceptions: 
(Name the document, article/section where provisions related to tariff treatment exceptions can be 
found and insert the specific related link) 
        
(c) Different Preferential Treatment: (Name the document, article/section where provisions related to different kinds of preferential 
treatment can be found and insert the specific related link) 
 
(d) Request of Preferential Treatment : 
(Insert the link where it contains explanation ab out the procedures for requesting preferential 
treatment) 
 
 
IV. RULES OF ORIGIN (INCLUDING REQUISITES AND RESTRICTIONS) 
 
(Name the document, article/section where rules of  origin can be found, including requisites for 
considering origin and restrictions. Insert the specific related link) 
 
V. PREFERENTIAL TRADE VOLUME AFFECTED  IN THE LAST 3 (THREE) YEARS (in USD 
millions) 
 
(Insert the related link where it is possible to find relevant trade statistics and specify accessing 
website requirements if such exist) 
 
 
   WT/COMTD/71 
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  ANNEX 3 
 
Factual Abstract to PTAs Currently in Force 
 
 
 
I. NOTIFYING MEMBER 
(Name of the Notifying Member)  
 
II. DATE OF ENTRY INTO FORCE / LAST RENEWAL 
(Insert date and link to relevant source)  
III. DATE OF EXPIRATION 
(Insert date and link to relevant source)  
 
IV. RELATED WTO/GATT DOCUMENTS AND LINKS TO NATIONAL LEGISLATION 
(Insert the number of the document and correlated link) 
 
(Insert the name/number of the law(s) and correlated link) 
 
V. NUMBER  OF BENEFICIARIES 
(Insert current number and link to relevant source) 
 
- Eligibility criteria: 
(Insert explanation of criteria to eligibility and correlated link) 
 
VI. NUMBER OF COVERED PRODUCTS (IN ACCORDANCE WITH THE NOTIFYING 
MEMBER’S CLASSIFICATION OF PRODUCTS) 
(Insert current number and link to relevant source) 
 
- Exceptions: 
(Insert current number and link to relevant source) 
 
VII. PREFERENTIAL TREATMENT  
(Name the document, article/section where provisi ons related to preferential treatment can be 
found and insert the specific related link)  
VIII. RULES OF ORIGIN 
(Name the document, article/section where rules of  origin can be found, including requisites for 
considering origin and restrictions.  Insert the specific related link) 
 
IX. PREFERENTIAL TRADE DATA (in USD millions) 
 
(US) HS Chapters  Year – 1 Year – 2 Year – 3 
    
    
    Total    
 
 
_________