WORLD TRADE  
ORGANIZATION  TN/TF/W/137 
21 July 2006 
 
 (06-3515) 
Negotiating Group on Trade Facilitation Original:   English 
  
 
COMMUNICATION FROM ARMENIA, CHILE, CHINA, DOMINICAN REPUBLIC, 
ECUADOR, THE EUROPEAN COMMUNITIES, GEORGIA, GUATEMALA, HONDURAS, 
JAPAN, KYRGYZ REPUBLIC, MEXICO, MOLDOVA, NICARAGUA, PAKISTAN, 
PARAGUAY, SRI LANKA, SWITZERLAND AND URUGUAY 
 
 
 The following communication, dated 19 July 200 6, from the Delegations of Armenia, Chile, 
China, Dominican Republic, Ecuador, the European  Communities, Georgia, Guatemala, Honduras, 
Japan, Kyrgyz Republic, Mexico, Moldova, Nicara gua, Pakistan, Paraguay, Sri Lanka, Switzerland 
and Uruguay, is being circulated in advance of the Negotiating Group meeting of 24-26 July. 
 
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IMPLEMENTATION MECHANISM OF TRADE FACILITATION COMMITMENTS 
INCLUDING KEY ELEMENTS FOR TECHNICAL ASSISTANCE  
 
 
I. INTRODUCTION 
1. This communication attempts to materialise th e modalities set in Annex D of the Decision of 
the General Council of July 2004 and follows up with  a textual proposal based on the non-paper dated 
6 June 2006 "Phases of a Proposed Implementation Mech anism".  It takes its inspiration namely from 
the communications TN/TF/W/81 submitted by a gro up of Latin American delegations, TN/TF/W/82 
submitted by a group of Asian delegations, as we ll as TN/TF/W/95 submitted by the African Group. 
2. This contribution is intended to deepen the discussions on special and differential treatment, 
technical assistance and capacity building in the cont ext of the negotiations on trade facilitation.  It is 
a living document that will evolve as negotiations pr oceed and does not reflect any final views of the 
co-sponsors on this matter. In partic ular, co-sponsors are of the view th at legal aspects of this proposal 
need to be further elaborated in the course of th e negotiations.  They reserve the right to revise, 
supplement and/or withdraw any of the ideas set out herein. 
3. This communication presents a text that details the structure proposed in the non-paper 
mentioned above.  The proposed trade facilitation im plementation mechanism is divided into nine 
phases.  The first three phases in Part A – all phases between the end of the Doha Round and the entry 
into force of the trade facilitati on agreement– will be dealt with through transitional provisions which 
may be part of, for example, a Ministerial or Gene ral Council Decision.  As fo r Part B, the mechanism 
starts with the entry into force of the agreem ent, going through seven successive phases to end with 
the full implementation of the obligations of the trade facilitation agreement.  These provisions shall 
be contained in a separate part of the agreement dealing with implementation.  As for Part C, 
containing key elements dealing with  technical assistance and capacity building it shall also be 
handled in a special chapter therein.  TN/TF/W/137 
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  4. Other chapters of the agreement will also ha ve to deal with institutional, e.g., the 
establishment and the functions of the Committee on Tr ade Facilitation, and enforcement matters. So 
far, this communication refers implicitly to enfo rcement issues and limits itself to mentioning the 
Committee on Trade Facilitation. 
II. TEXTUAL PROPOSAL 
A. T
RANSITIONAL PROVISIONS  
0. Signing of the single undertaking (including the Trade Facilitation Agreement) 
1. Provisions will be applicable after the signing of the single undertaking including the trade 
facilitation agreement.  A Working Group is establish ed for the duration of the transitional period to 
handle matters related to the implementation of the results of the trade facilitation negotiations1. 
1. Capacity self-assessment 
2. For the purpose of ascertaining their capacity to  meet the agreed obligations, each developing2 
and least-developed Member shall complete a capacity self-assessment in relation to the provisions in 
the trade facilitation agreement.  On request, donor s, including relevant international organizations3, 
shall assist Members in this exercise on mutually agreed terms and conditions4.  
2. Notification procedure 
3. On the basis of its capacity self-assessment, each developing and least-developed Member 
shall notify all other Members, through the WTO S ecretariat for which obligations it needs  (i) 
technical assistance and capacity building, and  (ii)  additional time which shall not exceed [N] years, 
to implement and be made available on Memb ers’ site of the WTO Internet portal. 
4. Members shall not notify other Members of (i ) measures they are ready to implement from 
the date of entry into force of the agreement, ( ii) measures regarding provisions they have already 
implemented, and (iii) provisions in the trade f acilitation agreement which are designed to apply from 
its entry into force.5 
5. For the sake of transparency and predictab ility, Members shall engage in a multilateral 
dialogue on the notifications […] months before the entry into force of the Agreement at the latest.  
Notifications shall be made one month before th e multilateral dialogue takes place.  The Secretariat 
shall support Members in organizing this multilateral dialogue providing  the necessary documentation 
they may request in order to facilitate the dialogue  and to ensuring that it is completed before the 
entry into force of the trade facilitation agreement. 
6. Members may modify their Notification until the entry into force of the Trade Facilitation 
Agreement.  Positive consideration shou ld be given to comments by Members. 
                                                      
1 [Remark: The functions of this body will be developed at a later stage]. 
2 In the context of these provisions, the following co untries shall enjoy the same rights and obligations 
as developing countries: Armenia, Georgia, Kyrgyz Republic and the Republic of Moldova. 
3 Relevant international organisations as referred to in Annex D of the July framework, including the 
IMF, OECD, UNCTAD, WCO and the World Bank. 
4 [Explanation: This phase of the text is also d ealt with in C–(A) Transitional Provisions under Key 
Elements of Technical Assist ance and Capacity Building]. 
5 [Explanation: The idea expressed here is that Members would negotiate a selection of obligations 
comparatively easier to implement, namely such obligations that already exist through GATT Articles V, VIII 
and X].  TN/TF/W/137 
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  7. Members shall finalize their Notification before the entry into force of the trade facilitation 
agreement, which shall be published on the Me mbers' site of the WTO Internet portal. 
B. PROVISIONS OF THE TRADE FACILITATION AGREEMENT  
3. Entry into force of the Trade Facilitation Agreement 
8. Developing6 and least-developed Members will enjoy special and differential treatment in 
accordance with the following provisions and other re levant provisions set forth in other articles of 
this agreement. 
9. The obligations set forth in this agreement appl y from the date of its entry into force, except 
for those contained in the Notification, which sh all apply for each Member as from the end of the 
implementation period set out therein and from th e Notifications of the capacity acquisition in 
accordance with paragraphs 20 to 22 hereafter.  
10. The Notifications are hereby made an integral part of this agreement. 
4. Formulation of the capacity building plans 
11. For obligations requiring technical assistan ce and capacity building as contained in the 
Notification, each developing, least-developed Me mber shall detail its requests and enter into 
discussion with donors, including relevant internat ional organizations.  On this basis, capacity 
building plans shall be prepared by the parties involved.  On request, donors, including relevant 
international organizations, shall assist Members in this exercise on mutually agreed terms and 
conditions.7 
5. Notifications of capacity building plans 
12. The capacity building plans shall contain:  (a)  the obligations for which the need for technical 
assistance and capacity building has been signalled in the Notification;  (b) intermediary steps as 
necessary;  (c)  the implementation periods;  (d) the donors;  and (e) the implementation agency if 
appropriate.  These as well as other relevant data  shall be notified to the Committee on Trade 
Facilitation and made available on the Members’ site of the WTO  Internet portal. 
13. Members shall, on request, be provided with the opportunity to engage in consultations with 
the notifying Member. 
14. The Notifications shall be up-dated with the information contained in the capacity building 
plans no later than […]. 
6. Implementation of trade facilitation commitments 
15. Members shall take actions at the earliest possible moment to achieve compliance according 
to the implementation periods specified in the Notifications. 
16. Progress in implementing notified obligations sh all be reviewed by Members on a periodic 
basis. 
                                                      
6 In the context of the following provisions the following countries shall enjoy the same rights and 
obligations as developing countries: Armenia, Georgia, Kyrgyz Republic and the Republic of Moldova. 
7 [Explanation: This phase of the text is also dea lt with in C–(B) Provisions of the trade facilitation 
agreement under Key Elements of Techni cal Assistance and Capacity Building]. TN/TF/W/137 
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  17. Any request for modification of a Member's Notification  needs to be brought to the 
Committee on Trade Facilitation for decision as s oon as an implementation problem has been 
identified. 
7. Verification of capacity acquisition 
18. At the end of each implementation period rela ted to the provision of capacity building and 
technical assistance contained in the Notification, the implementing developing and least-developed 
Member and, if so agreed, the other parties involved
8, shall assess whether capacity building and 
technical assistance has been effectively provide d according to the mutually agreed terms and 
conditions and whether capacity has been acquired. 
19. Should this Member come to the conclusion that  capacity has not entirely been acquired, this 
Member and the donor Members involved shall so report and make recommendations to the 
Committee, which will review the matter and decide on a case-by-case basis. 
8. Notification of the acquisition of capacity 
20. Members who successfully acquired the capacity to assume a certain provision shall notify 
this, at the latest 6 months after the capacity acquisition to the Committee on Trade Facilitation. The 
obligation shall apply after this notification. 
21. The Notifications shall be up-date d with the notified information. 
22. In case a Member fails to notify within this tim e period, the provision becomes applicable 6 
months after the end of the implemen tation period of that obligation. 
9. Full implementation 
23. Members shall ensure full implementation of th e obligations contained in the Agreement. 
C. KEY ELEMENTS OF TECHNICAL ASSISTANCE AND CAPACITY BUILDING  
C–(A) T RANSITIONAL PROVISIONS  
1. Technical assistance and capacity building in the transitional provisions 
24. Members shall carry out a clear and precise dia gnosis of the situation in each developing and 
least-developed Member through capacity self-assessm ent with, upon request, donor support to assist 
this assessment on mutually agr eed terms and conditions.  The di agnosis could be done through 
existing tools developed for this purpose by relevant  international organizations such as the World 
Bank and the World Customs Organisation. While ca rrying out the diagnosis relevant work done in 
the context of the Integrated Framework for LDCs  and other international or regional development 
programmes shall be taken into account. 
25. Developing and least-developed Members that lack capacity to carry out a capacity self-
assessment shall so inform the WTO Secretariat wh ich shall circulate this information to Members 
and relevant international organizations  in the field of trade facilitation. 
                                                      
8 The parties involved means: th e recipient Member, donor Members providing technical assistance 
and capacity building in that Member as well as the implementing agency.  TN/TF/W/137 
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  C–(B) P ROVISIONS OF THE TRADE FACILITATION AGREEMENT  
1. General principles 
26. Members shall endeavour to apply the following principles and elements for providing 
technical assistance and capacity building with re gard to the implementation of this agreement: 
(i) Handle technical assistance and capacity build ing in a manner that is consistent with 
the relevant principles of good practices of  the Paris Declaration on Aid Effectiveness 
(2005) including issues of ownership, harm onization, alignment, results and mutual 
accountability. Account should also be taken of the principles of good practices set out in the OECD/DAC guidelines on Harmonizing Donor Practices for effective Aid Delivery (2003 and 2006) in areas such as donor cooperation, diagnosis, sector-wide 
or program based approaches a nd reporting and monitoring.  
 
(ii) Take account of the overall developmen tal framework of recipient countries and 
regions. 
 (iii) Design and strengthen targeted techni cal assistance and capacity building with 
mutually supportive components to build tr ade facilitation capacity also taking into 
account ongoing reform programmes. Particul ar attention should be paid to ongoing 
trade facilitation reform activities of th e private sector when designing support 
programmes. 
 (iv) Coordinate with and between Members and relevant interna tional organizations 
coordinated with the Integr ated Framework for LDC’s . Avoid inconsistencies in 
reform activities through close coordination of technical assistance and capacity building interventions. In particular, stre ngthen coordination at national level and 
build capacities to plan, manage, implement and monitor technical assistance and capacity building. 
 
(v) Designate  focal points to coordinate the implementation of the trade facilitation 
agreement both in donor as well as in partner countries. 
 (vi) Facilitate in-country coordination stru ctures such as round tables and consultative 
groups to coordinate and monitor implementation activities. 
 
(vii) Take into account deve loping countries’ readiness to provide capacity building to 
other developing and least-developed c ountries and consider supporting such 
activities. 
 
2. Joint platform for cooperation and coordination 
27. Members, as part of the work of the WT O Committee on Trade Facilitation shall operate, 
without the creation of a new body outside the WT O, a joint platform on technical assistance and 
capacity building to facilitate the implementation of this Agreement. The platform shall not duplicate 
the activities of existing coordination mechanisms, but shall coordinate with them and use such 
instruments to help it fulfil its functions.   It shall take into account relevant work being carried out in 
the context of the Integrated Framework for LD Cs, and other instruments for development. The 
platform shall: 
(i) promote international transparency, cooperation and coordination of technical 
assistance in the field of trade facilitation, bringing together donor Members and TN/TF/W/137 
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  recipient Members, relevant internationa l organizations, regiona l groupings, as well 
as other intergovernmental organizations with a role to play;  and 
 (ii) help ensure, where necessary, coordination of assistance between donors and 
recipients so that potential gaps are filled. 
28. A role may be provided for the private sector in  such transparency and coordination efforts, 
where the private sector is already providing assistance or investment in  trade facilitation, is interested 
in doing so, or is directly affected by measures. 
3. Technical assistance and capacity building in the phase of formulating capacity building 
plans 
29. Members shall take into account the following el ements when providing, on request, technical 
assistance and capacity building on mutually agreed terms and conditions: 
(i) Capacity building plans should, as appr opriate, provide for adequate long-term 
assistance and for post-implementation support. 
 
(ii) Training, deployment of in-country adviso rs, particular attention to SMEs, could be 
reflected, as appropriate and as requested, in capacity building plans.  
 (iii) Technical assistance and capacity bu ilding could be also provided to support 
initiatives to overcome sub-regional divides and facilitate regional or sub-regional 
integration. 
 
(iv) To the extent practicable, account should also be taken of the implementation plans of 
neighbouring countries.  
 
30. A  Member that has not managed to finalize th e capacity building plan shall so inform the 
Joint Platform for Cooperation and Coordination, wh ich shall take the necessary steps to facilitate 
interaction with donors. On request and within mu tually agreed terms and conditions, relevant 
international organizations should assist devel oping and least-developed Members in formulating 
capacity building plans. 
  TN/TF/W/137 
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  Annex  
 
Phases of a proposed Implementation Mechanism  
 
 PHASE PERIOD / DEADLINE APPLICABLE 
PROVISIONS 
0 SIGNING OF THE SINGLE 
UNDERTAKING  Year X 
1 
CAPACITY SELF-ASSESSMENT 
2 NOTIFICATION PROCEDURE 
• SUBMISSION OF THE 
NOTIFICATION 
MULTILATERAL DIALOGUE ON 
THE NOTIFICATION Year X + period extending 
until the entry into force of  the Agreement of TF 
TRANSITIONAL PROVISIONS 
 
(OUTSIDE THE TF 
AGREEMENT) 
3 ENTRY INTO FORCE OF THE 
AGREEMENT Year X + Y 
4  
FORMULATION OF THE CAPACITY BUILDING PLANS  
5  
NOTIFICATION OF CAPACITY BUILDING PLANS 
 Year X + Y + Z at 
maximum 
6  
IMPLEMENTATION OF TRADE 
FACILITATION COMMITMENTS 
 Period specified in the 
notification 
7 
VERIFICATION OF CAPACITY 
ACQUISITION At the end of the 
implementation of the capacity building plan  
8 
NOTIFICATION OF THE 
ACQUISITION OF CAPACITY At the latest 6 months after 
the verification of the capacity acquisition  
 
 
PROVISIONS OF THE AGREEMENT REGARDING S&D 
9 
FULL IMPLEMENTATION 
 
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