WORLD TRADE  
ORGANIZATION  TN/CTD/22 
17 July 2008 
 
 (08-3449) 
Committee on Trade and Development 
Special Session  
 
 
SPECIAL SESSION OF THE COMMITTEE ON 
TRADE AND DEVELOPMENT 
 
Report by the Chairman, Ambassador Thawatchai Sophastienphong (Thailand),  
to the Trade Negotiations Committee   
 
 
I. INTRODUCTION  
At the Hong Kong Ministerial Conference, Ministers mandated the Special Session of the 
Committee on Trade and Development (Special Session) to: 
• expeditiously complete the review of all the outstanding Agreement-specific proposals and 
report to the General Council, with clear recommendations for a decision;   
• resume work on all other outstanding issu es, including on the cross-cutting issues, the 
Monitoring Mechanism and the incorporation of special and differential treatment (S&D) into 
the architecture of WTO rules and report on a regular basis to the General Council;  and  
• continue to coordinate its efforts with tho se bodies to which the 38 Category II proposals had 
been referred, which in turn had been instruct ed to complete consideration of these proposals 
and report with clear recommendations for a decision to the General Council.  
II. STATE OF PLAY 
Since the Hong Kong Ministerial Conference, th e Special Session has focused on all elements 
of its work programme in line with the mandate c ontained in the Hong Kong Ministerial Declaration. 
Agreement-specific Proposals  
It may be recalled that at the Cancún Ministerial Conference, Members had reached an 
in-principle agreement on 28 Agreement-specific proposals.1  These proposals, which are yet to be 
adopted are contained in Annex I to this repor t.  Subsequently, at the Hong Kong Ministerial 
Conference five decisions were adopted in favour  of the LDCs.  As a result, there remained 
16 Agreement-specific proposals for consideration in the Special Session.   
Members have since focused ma inly on seven of these proposals.2  These include one 
proposal on Article 10.2 of the Agreement on San itary and Phytosanitary Measures (SPS Agreement), 
two proposals on Article 10.3 of the SPS Agreem ent and three proposals on Article 3.5 of the 
Agreement on Import Licensing.  At the request of  the proponents, work on the proposal relating to 
Article XVIII of the GATT has been put on hold wh ile they consider revising the language on the 
                                                      
1  Annex F of WT/MIN(05)/DEC. 
2 The remaining nine Agreement-specific proposals have been set aside for the time being and will only 
be taken up after Members put forward new ideas or alternate language.    
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  proposal.  Text-based discussions on the other six proposals have resulted in some progress being 
made and although we are not quite there, Member s have definitely moved closer to reaching an 
agreement.    
On the proposal relating to Article 10.2 of th e SPS Agreement, some Members still remain 
concerned with the notion of agreeing to mandatory  time-frames for developing countries to comply 
with their SPS obligations.  This is an issue which has to be resolved.  On the two proposals relating 
to Article 10.3 of the SPS Agreement, Members ha ve been able to narrow their differences.  New 
ideas and language put forward have enabled me to  put together a revised text on these proposals.  
However, while there are still some concerns on the im plications of certain words in the text,  I do 
believe that we are not too far from convergence.  The proposals relating to Article 3.5 of the 
Agreement on Import Licensing Procedures have en joyed a greater degree of convergence with only 
one outstanding issue remaining in brackets.  Howeve r, some clarifications have been sought on the 
intent of the proposal and further discussions will be required before the text can be agreed to.  The 
language presently on the table and being considered  by Members on these six proposals, is contained 
in Annex II to this report.   
On the Category II Agreement-specific propo sals, the Special Session has continued to 
coordinate its efforts with the bodies to which these proposals have been referred.  The Chairs of the 
different bodies to which the Category II proposals ha ve been referred have continued to provide 
regular updates to the Special Session on progress made in  their respective areas.  It has been brought 
to my attention that issues raised in a number of the proposals form an integral part of the ongoing 
negotiations.  On others, progress has been somewhat elusive and this is an area where we need to 
further focus our efforts. 
Duty-free Quota-free Market Access Decision
 
  The LDCs have been pursuing issues related to the implementation of the duty-free quota-free 
(DFQF) market access decision in the Committee on Agriculture and the Negotiating Group on 
Non-Agricultural Market Access (NAMA).  Conse quently, both the draft modalities on Agriculture 
and NAMA include a section which seeks to ensure effective implementation of the Decision.  Additionally, the LDCs have been addressing the i ssue of rules of origin bilaterally.  I have 
periodically provided the LDCs with an oppor tunity to express their views and share the 
developments on issues related to the implementa tion of the Decision with other Members in the 
Special Session.  In addition, the Regular Sessi on of the Committee on Trade and Development has 
been carrying out a review of the steps that have b een taken to implement the DFQF Decision.  In this 
regard, a number of Members have provided information on the steps they are taking or have already taken to provide DFQF market access to goods originating from the LDCs.
3 
 Monitoring Mechanism 
 
Members have been considering the possible elements of a Monitoring Mechanism.  
Discussions have been based on a non-paper, a copy of which is contained in A nnex III to this report.  
On the whole, the deliberations have been constr uctive and we have moved forward on a number of 
issues.  In February, some Members tabled language  which added certain elements to the text being 
considered.  Their submission proposes the inclusio n of a preamble and suggests that the Mechanism 
monitor the implementation and effectiveness of the proposals agreed to in principle at Cancún, as 
well as the proposals adopted in favour of the LDCs  at the Hong Kong Ministerial Conference.  In 
addition, the submission calls for the Mechanis m to keep the work on the Agreement-specific 
proposals in the Special Session and other WTO bodies under review.  Members are yet to engage in a 
substantive discussion on this submission.   
                                                      
3 WT/COMTD/M/57-59, 61-65, 67-69.  TN/CTD/22 
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  III. ROAD MAP 
 The coming months will be very important.  The Special Session will need to continue to 
work on all elements of its work programme in line with the mandate contained in the Hong Kong 
Ministerial Declaration and to make recommendati ons for a decision to the General Council, as 
mandated, as soon as possible.  
 
 It is my view that on the Agreement specific proposals currently under consideration in the 
Special Session, Members will need to bridge thei r remaining differences and come up with specific 
recommendations for a decision.  This will entail completing work on the proposals which Members 
have been considering over the past months.  It is my intention to continue work on these proposals 
after the summer break on the basis of the language c ontained in Annex II.  As for the other proposals, 
including that relating to Article XVIII of the GA TT, I will take them up onl y after revised language 
has been tabled by the proponents.  
 
It is important that progress is made on the Ca tegory II proposals, especially those which have 
not been addressed as part of the ongoing negotiations.   I will continue to coordinate my efforts with 
those of the Chairs of the bodies addressing these pr oposals, in order to help expedite progress on 
these proposals.  It is important that the different bodies come up with recommendations to the General Council for a decision at the earliest.  I w ill continue working with the Chairs especially in 
relation to those proposals which may not get addr essed as part of the ongoing negotiations in the 
different areas. 
 The Special Session will also continue with its work on the Monitoring Mechanism with the 
objective of reaching an agreement on the Mechanism's functions, structure and terms of reference.  I 
intend to work on the basis of the non-paper cont ained in Annex III, as well submissions made by 
Members, with a view to further fine tuning the elements of the Monitoring Mechanism.   
 
 
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  ANNEX I 
 
 
GATT 1994 - Article XVIII:C 
 "The Ministerial Conference instructs the Council on Trade in Goods to develop and adopt procedures 
for recourse to Article XVIII:C. The concerns rais ed by developing countries, especially the least-
developed countries, including those related to th e suspension of concessions or other obligations 
under Article XVIII:C, shall be addressed." 
 
GATT 1994 - Article XXXVI  
"The Ministerial Conference agrees that the Committee on Trade and Development shall annually 
review the implementation of Article XXXVI of  GATT 1994, and report to th e General Council with 
concrete recommendations, as agreed, no later than  the last General Council of each year." 
 
GATT 1994 - Article XXXVII 
 
"The Ministerial Conference agrees that any Memb er may initiate discussions in the Committee on 
Trade and Development on the basis of Article XXXVII and decides that a Member shall, upon request, provide a detailed explanati on to matters raised in regard to  the provisions under paragraph 1, 
with a view to reaching a solution that is satisfactory to all Members concerned." 
 
GATT 1994 - Article XXXVIII 
 
“The Ministerial Conference instructs the Direct or-General to pursue and conclude cooperation 
arrangements as may be necessary to further the objectives set forth in Article XXXVI of the GATT 
1994.  The Ministerial Conference further instru cts the Committee on Trade and Development to 
receive studies and reports from relevant interna tional agencies and organizations that may assist 
Members in analyzing the development plans a nd policies of individual developing and least-
developed country Members, export potential and mark et prospects over the short and medium terms, 
measures that could be taken in the WTO frame work and by other international agencies and 
organizations as well as the assistance required by  developing and least-dev eloped country Members 
to help achieve their respective development goals.”  
Understanding on the Interpretation of Article XVII of the GATT 1994  
 
"While acknowledging that the provisions of Article XVII of the GATT 1994  apply to all Members, 
Members recognize that state trading enterprises may ha ve a significant role to play in promoting and 
protecting public policy objectives in developing  and least-developed country Members."     
 
Understanding on Balance-of-Payments Provisions of the GATT 1994 –Paragraph 8  
 "The Ministerial Conference mandates the Committee on Balance-of-Payments Restrictions to 
examine ways and means of simplifying the admini strative requirements within the full consultation 
procedures."  
Enabling Clause  
 
"The Ministerial Conference confirms that the terms and conditions of the Enabling Clause shall 
apply when action is taken by Members under the provisions of this Clause."  TN/CTD/22 
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Agreement on Agriculture – Article 15.2 
 
"The Ministerial Conference confirms that least -developed country Members remain exempt from 
reduction commitments, as provided in Article 15.2, unless decided otherwise by consensus."  
 
PSI Agreement - Article 3.3  
 
"(a) The Ministerial Conference agrees that t echnical assistance for purposes of the Agreement on 
Preshipment Inspection shall address the concer ns of developing and least-developed country 
Members relating among others to:  
 
(i) training customs and revenue officials to promote and achieve the objectives of the Agreement on Preshipment Inspection through th e activities defined in Article 1.3 of the 
Agreement, in order to ensure the proper inspection of consignments to be exported  to the user 
Member, and the prevention of false declaration, wrong classification and any fraud;  
 (ii) regulation of preshipment entities. 
 (b) The Ministerial Conference further agrees th at customs authorities of Members shall, in 
accordance with paragraph 8.3 of  the Decision on Implementation-Related Issues and Concerns, 
closely cooperate in the context of the Agreem ent on Customs Valuation, and of the Decision 
Regarding Cases where Customs Administrations Have  Reasons to Doubt the Truth or Accuracy of 
the Declared Value."  
Agreement on Rules of Origin 
 "In regard to preferential rules of origin un der the Common Declaration in Annex II to the 
Agreement, the Ministerial Conference agrees th at in their arrangements for mutual reduction or 
elimination of tariff or non-tariff barriers, de veloping and least-developed country Members shall 
have the right to adopt preferential rules of orig in designed to achieve trade policy objectives relating 
to their rapid economic development, partic ularly through generating regional trade.  
 
Furthermore, the Ministerial Conference instructs th e Director-General to take  action to facilitate the 
increased participation of developing and least-developed country Members in the activities of the Technical Committee on Rules of Origin of the Worl d Customs Organization as well as to coordinate 
with this  organization in identifying technical a nd financial assistance needs of developing and least-
developed country Members, and report to the Committee on Rules of Origin and the Council for 
Trade in Goods periodically, and the General Council as appropriate."  
Agreement on Import Licensing Procedures – Article 1.2    
 
"It is understood that the requirement to take in to account the "development purposes and financial 
and trade needs of developing country Members" in Article 1.2 of the Agreement means that the 
burden of the administrative procedures used to implement import licensing regimes shall be further 
reduced in order to facilitate trade of devel oping country Members and minimize possible adverse 
effects to their trade, including by making im port licensing procedures as expeditious as possible." 
 GATS – Article IV 
 
"Pursuant to Article IV.3 of the GATS, in all services negotiations, whether broad-based rounds of 
negotiations or separate negotiations on specific se ctors, modalities shall be developed in order to 
allow the priorities of least-developed country Member s to be presented and duly taken into account." 
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  GATS - Article IV.3 
 
"The Ministerial Conference agrees that the inform ation to be provided by Members shall indicate 
how the requirement that special priority be given to least-developed country Members in the 
implementation of paragraphs  1 and 2 of Article IV is being met,  and that contact points, in this 
context, shall provide information of particular interest to services suppliers from least-developed 
country Members." 
 
GATS – Article XXV 
 "The Ministerial Conference instructs the WTO Secr etariat to pursue with a view to concluding 
arrangements with relevant international institutions  that have the technical assistance capacity to 
assist developing and least-developed country Members in addressing their supply-side and 
infrastructural constraints and their development n eeds in the services sector.  This shall be without 
prejudice to the prerogative of the Council for Trade in Services to decide upon technical assistance to 
developing countries which shall be provided at th e multilateral level by the Secretariat, in accordance 
with Article XXV.2." 
 
GATS, Annex on Telecommunications – Paragraph 6 
 
"The Ministerial Conference instructs the Council fo r Trade in Services to put in place arrangements 
for prompt notification of any measures taken with regard to the implementa tion of subparagraphs (a) 
to (d) of paragraph 6 of the Annex on Telecommunications."  
 
TRIPS Agreement – Article 66.2  
"Members, having regard to Article 66.2 of the Ag reement on Trade-Related Aspects of Intellectual 
Property Rights, and having regard to the deci sion of the TRIPS Council of 19 February 2003, 
contained in document IP/C/28, rea ffirm that this decision be expeditiously implemented in a way that 
ensures the monitoring and full implementa tion of the obligations in Article 66.2." 
 
TRIPS Agreement – Article 67 
 
"The Ministerial Conference agrees that techni cal and financial coopera tion, in accordance with 
Article 67, shall be provided on request and on  mutually agreed terms and conditions, with due 
consideration given to comprehensive programm es comprising such components as improving the 
relevant legal framework in line with the ge neral obligations of the Agreement, enhancing 
enforcement mechanisms, increasing training of pers onnel at the various levels, assisting in the 
preparation of laws and procedures in an effort to encourage and monitor technology transfer, making 
use of the rights and policy flexibility in the Agreement, and strengthening or establishing coordination between intellectual property right s, investment and competition authorities. 
 The Ministerial Conference instructs the Council fo r Trade-Related Aspects of Intellectual Property 
Rights to annually review the state of implem entation of the Agreement between the World 
Intellectual Property Organization and the Wo rld Trade Organization, taking into account 
opportunities for technical assistance as provided for in the Agreement." 
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  TRIPS Agreement – Article 70.9 
 
"For purposes of the requirement to grant exclusiv e marketing rights during transition periods, it is 
understood that there is a clear distinction betw een “patent rights” on the one hand and “exclusive 
marketing rights” on the other.  Patent rights are set out in Article 28 of the TRIPS Agreement.  
Exclusive marketing rights are not the same as pate nt rights.  Members have the right to define 
exclusive marketing rights, so long as the definitio n accords with the meaning of the term in the 
TRIPS Agreement as interpreted under the rules of pub lic international law.  There is no requirement 
to grant exclusive marketing righ ts unless marketing approval is granted in that WTO Member for 
which exclusive marketing rights is sought."  Understanding on Rules and Procedures Govern ing the Settlement of Disputes – Article 8.10  
 
"Pursuant to Article 8.10 of the DSU, the Minister ial Conference agrees that in disputes between a 
developing country Member and a developed-country Member, at l east one panellist shall be from a 
developing country Member, unless the developing count ry Member party to the dispute waives this 
right."  
Decision on Measures in Favour of Least-Developed Countries – Paragraph 2 (v) 
 
"The Ministerial Conference agrees that the WT O through its participation in the Integrated 
Framework and JITAP and ot her relevant institutions will work to ensure that supply-side constraints 
of the LDCs are identified in the Diagnostic Trade In tegration Studies (DTIS) and are addressed in the 
implementation and follow-up taking into account the specific circumstance s of each beneficiary 
country.  The Ministerial Conference also inst ructs the Sub-Committee on LDCs to undertake a 
biennial review of the implementation of the DTIS  and to monitor the possible impact of assistance 
that is targeted towards the diversification of exports from LDCs, including through comparing the 
composition and concentration of LDCs' export stru ctures over time and across LDCs and through the 
establishment of other relevant indicators."  
Rules Relating to Notification Procedures 
 "Recognizing the practical difficulties faced by least -developed country Members in abiding fully by 
their notification obligations, the Ministerial Conference instructs the Sub-Committee on Least-
Developed Countries to examine possible improveme nts to the notification procedures for least-
developed country Members, taking into account the experience regarding Secretariat produced 
reports that helped fulfil some of these require ments.  In conducting its examination, the Sub-
Committee shall seek the input of relevant WTO bodies, which may be in a position to advise on 
practical means for improving the notification pr ocedures in relation to least-developed country 
Members, for example the possibility of longer timeframes, specified ex emptions and simplified 
procedures for notifications, and cross-notificati ons.  The Committee on Trade and Development shall 
forward the Sub-Committee's report to the Gene ral Council by 31 December 2003 for appropriate 
action."  Enabling Clause  
 
"The Ministerial Conference agrees that in formul ating schemes under paragra ph 2(a), (b) and (c) of 
the Enabling Clause, and in furtherance of paragrap h 3 thereof, developed-country Members will take 
into account, among other factors, the needs of deve loping and least-developed country Members and 
consult with them with a view to ensuring that  their products of export interest are accorded 
meaningful market access. The Committee on Trad e and Development will annually review the 
progress made in this regard and report to th e General Council with recommendations, if any." 
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  Review of Progress on Market Access for Least-Developed Countries 
 
"We recall paragraph 2(d) of the Decision on Differential and More Favourable Treatment, 
Reciprocity and Fuller Participation of Developi ng Countries, and Members' commitment to the 
objective of duty-free, quota-free market access for products originating from least-developed 
countries, as contained in paragraph 42 of the Doha Ministerial Declaration. The Ministerial 
Conference agrees to review the progress made in  providing access to the least-developed countries 
on the above basis."  
Decision on Measures in Favour of Least-Developed Countries – Paragraph 2 (ii) 
 "Without prejudice to the binding commitments that  may result from work under Paragraphs 13, 16 
and 42 of the Doha Ministerial Declaration, and building upon our commitment in the Doha 
Ministerial Declaration, Members shall continue to expeditiously pursue the objective of duty-free 
and quota-free market access for products origina ting from [all] least-devel oped countries in a manner 
that ensures security and predictability.  We urge Members to adopt and implement rules of origin so 
as to facilitate exports from least-developed countries."  
Decision on Measures in Favour of Least-Developed Countries – Paragraph 2  
 
"We agree that: 
 
(a) Taking into account their development needs, least-developed countries, following application, 
shall in principle be eligible for extensions of their transition periods; where relevant procedural 
provisions exist in the WTO agreements, those provisions shall apply.   
(b) Technical assistance to least-developed countri es shall aim among other things to remove their 
supply-side constraints which limit their ability to benefit from the WTO Agreements, including 
market access opportunities and development of domestic productivity.  In this context, the 
Ministerial Conference also instructs the Dire ctor-General to consult other institutions on 
programmes/assistance related to supply-side cons traints in least-developed country Members to 
determine what additional technical assistance may be made available." 
 
Decision on Measures in Favour of Least-Developed Countries – Market Opportunities 
Enabling Clause– Paragraph 3(b)  
"Accepting that extension of differential and mo re favourable treatment to developing countries 
should not constitute an impediment  to the reduction or elimination of tariffs on an MFN basis, but 
recognizing that as WTO Members pursue improved MFN tariff liberalization some Members may have concerns about adjusting to the loss of prefer ences, we agree that this issue be considered, in 
close coordination with other releva nt international organizations, w ith a view to identifying possible 
ways, including targeted assistance programmes, by which LDCs should be assisted."  GATT 1994 – Article XVIII:B  
"In determining the need for taking measures under Ar ticle XVIII:B, full consideration shall be given 
to the impact of the volatility of short-term fina ncial flows on the level of external reserves or 
surpluses of Members."   
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  ANNEX II 
 
Agreement-specific Proposals 
 
 (24 - 25)  SPS Agreement – Article 10.3 
 The General Council agrees that with a view to ensu ring that developing country Members are able to 
comply with the provisions of the SPS Agreement, they shall be eligible for specified, time-limited 
exceptions in whole, or in part, from the obligati ons under this Agreement.  Any developing country 
with difficulties to comply with the provisions of the SPS Agreement may request such exceptions to 
the SPS Committee.  In this regard, the SPS Co mmittee shall give [positive and] expeditious 
consideration to such a request and take a decision [as appropriate] no later than at the third meeting 
at which the request is considered and in any case within 12 months,  on any request made by such 
Members under Article 10.3 of the Agreement, ta king into account their individual financial, trade 
and development needs.  Furthermore, Members sh all facilitate the provision of technical assistance 
either bilaterally or through the appropriate intern ational oganisations, if requested by a developing 
country Member in relation to its request  for a specific time-limited exception. 
 
(28-30)  Agreement on Import Licensing Procedures – Article 3.5 
 
While all Members shall endeavour to provide impor t statistics with respect to products subject to 
import licensing for the purpose of enhanced tran sparency, the General Council agrees that for 
purposes of subparagraph (a)(iv) of Article 3.5, deve loping country Members shall not be expected to 
do so in cases where this will cause them additional administrative or financial burden beyond their 
capacity.   
The General Council further agrees that: 
 (a)  Article 3.5(j) of the Agreement implies [m andatory and] non-discretionary obligations on the 
part of the Members;  and  (b)  In the allocation of licenses, special consid eration shall be accorded to existing and new 
importers of products originating in developing, and in particular  least-developed country Members. 
 
79)   Proposal by India on Article 10.2 of the SPS Agreement  
Where the appropriate level of sanitary or ph ytosanitary protection allows scope for the 
phased introduction of new sanitary or phytosanita ry measures, longer time-frames for compliance, 
not less than six months, shall be accorded, upo n request, on products of interest to developing 
country Members so as to maintain opportunities for their exports. TN/CTD/22 
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  ANNEX III 
 
The Monitoring Mechanism 
 
 Structure 
 
• A simple, practical and efficient mechanism, that complements other existing, as well as 
proposed monitoring mechanisms. 
 
• Allows for a regular high-level review of [issu es related to] special and differential treatment 
(S&D) in the WTO, aimed at improving the implementation and effectiveness of S&D 
provisions. 
 
• Allows also for a bottom-up, horizontal a nd transparent process that would enable, inter alia , 
information sharing and compliance monitoring. 
 
• Gives sufficient visibility to the im portance of S&D issues in the WTO. 
 
• To begin with, it will functi on at two broad levels:   
 
o At the first level, the monitoring process will take place in [ded icated sessions] [Sub-
Committee] of the CTD.  The review would take place on the basis of both submissions made directly to the [CTD] [Sub-Committee] by Members, as well as on 
the basis of reports received from the other WTO bodies, to which submissions can 
also be made.   
 
o At the second level, the General Council would review and take decisions, [as 
appropriate], on the basis of recommendati ons made by the [CTD] [Sub-Committee].  
 
• The structure will be reviewed in the future, th e first review taking place after three years, and 
thereafter when necessary, taking into account th e actual functioning of the Mechanism, and 
evolving circumstances. 
 
Scope 
 
• Monitor the implementation and effectiveness of  S&D provisions in the existing agreements 
in line with paragraph 44 of the Doha Ministerial Declaration. 
 
• Monitor the implementation and effectiveness of S&D provisions that will result from the 
Doha Round of negotiations. 
 
• [Provide a forum at which Members can raise any other issues related to the implementation 
and effectiveness of S&D provisions.]  
 
 
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