WORLD TRADE  
ORGANIZATION  WT/COMTD/W/143/Rev.2 
27 June 2006 
 
 (06-3118) 
Committee on Trade and Development  
 
 
 
 
DEVELOPMENTAL ASPECTS OF THE DOHA ROUND OF NEGOTIATIONS 
 
Note by the Secretariat  
 
Revision  
 
 
I. INTRODUCTION ................................................................................................................... .1 
II. DEVELOPMENTAL ASPECTS OF THE DOHA DEVELOPMENT AGENDA 
NEGOTIATIONS ................................................................................................................... ..2 
A. AGRICULTURE .............................................................................................................................2  
B. NON-AGRICULTURAL MARKET ACCESS .....................................................................................7  
C. SERVICES ............................................................................................................................... ....12  
D. TRADE FACILITATION ...............................................................................................................15  
E. SPECIAL AND DIFFERENTIAL TREATMENT ................................................................................17  
F. IMPLEMENTATION -RELATED ISSUES AND CONCERNS ..............................................................20  
G. RULES ............................................................................................................................... .........23  
H. TRADE -RELATED ASPECTS OF INTELLECTUAL PROPERTY RIGHTS ..........................................27  
I. TRADE AND ENVIRONMENT ......................................................................................................28  
J. DISPUTE SETTLEMENT UNDERSTANDING .................................................................................31  
III. CONCLUDING REMARKS .................................................................................................34  
 
  
I. INTRODUCTION 
1. At the 54
th Session of the Committee on Trade and Development (CTD) on 5 October 2005, 
Members undertook a review of the developmental asp ects of the Doha Round of negotiations based 
on a background paper prepared by the Secretaria t (WT/COMTD/W/143).  It was agreed at the 
meeting that the paper would be revised based on comments made by Members so as to more fully 
reflect the interests and concerns of developing c ountries in the current Round.  The revised paper 
(WT/COMTD/W/143/Rev.1) was discussed at the 55th Session of the CTD on 28 November 2005.  It 
was agreed at the 56th Session that the Committee's next review of the developmental aspects of the 
negotiations, based on a revised Secretariat document, would take place at the 58th Session on 
6 July 2006.   
2. The present document addresses the developmen tal aspects in all the subject areas under 
negotiation in the Round.  In addition to providing a br ief summary of the status of the negotiations in WT/COMTD/W/143/Rev.2 
Page 2  
 
  each area
1, the paper attempts to highlight the broad pa rameters of the development dimension, to 
identify specific issues of interest to developing countries and to describe the potential gains which 
could accrue to developing countri es from the conclusion of the negotiations.  This revised document 
has been prepared under the Secretariat's own resp onsibility and by no means claims to provide an 
exhaustive coverage of all the de velopmental aspects raised in th e course of the negotiations.  Nor 
should the paper be seen as an attempt to prioritize issues, subjects or concerns raised by individual 
Members or groups of Members.  Finally, this pa per does not prejudice the right of any Member to 
raise other concerns or views related to paragra ph 51 of the Doha Ministerial Declaration or the 
presentation below concerning the areas currently  under negotiation in th e Doha Development 
Agenda. 
II. DEVELOPMENTAL ASPECTS OF THE DOHA DEVELOPMENT AGENDA 
NEGOTIATIONS 
A. AGRICULTURE  
1. Parameters of the Development Dimension 
3. Agriculture has the potential to play an important role in the continuing development of many 
WTO Members.  For a large number of developing and least-developed countries, agriculture makes a 
significant contribution to their economies, including its direct contribution to gross domestic production, export revenue and employment as well as to  rural development and livelihood security.  
However, many of the world's ag ricultural producers are currently di sadvantaged in the world trading 
environment because of high tariff barriers and competition from producers that receive high levels of domestic or export-related assistance.  Therefore, a reduction in trade barriers and subsidy levels, both 
domestic and export, can lead to important gains fo r developing country agricultural producers.  The 
development aspects related to agriculture can be fou nd in each of the three pi llars of the agriculture 
negotiations – market access, domes tic support and export competition. 
(a) Market access 
4. The market access pillar is arguably the most co mplex and intricate pillar of the agriculture 
negotiations, with the 1 August 2004 General Council Decision (WT/ L/579) being a delicate balance 
of offensive and defensive interests of all Members.  Despite its complex nature, the market access pillar has, arguably, the greatest potential to deliver  real economic benefits to Members.  As tariff 
barriers are reduced and tariff rate quotas expanded in both developed and developing countries, 
increased market access opportunities will allow Memb ers to expand export volumes and revenues.  
5. A significant reduction in tariffs and the expansi on of tariff quotas, particularly in developed 
country markets, is being sought by developing countries in order to assist with the achievement of 
their development and other trade-related objectives.   In addition, some Members also view the 
reduction of tariff escalation and the implementati on of the long-standing commitment to the fullest 
liberalization of trade in tropical products as being key elements of the development dimension of the 
Doha Round.  At the same time, many developing countries are concerned about the likely impact of 
tariff reductions on rural livelihood,  and consequently on their food security concerns.  Accordingly, 
they argue for a flexibility in the reduction of tari ffs, especially for "special products".  Preference 
receiving developing and least-developed countries  are also concerned that tariff reductions by 
preference-granting countries will resu lt in significant preference eros ion, especially since preferential 
                                                     
 
1 Relative to an earlier version, the present document takes into account developments in the 
negotiations from the Sixth Ministerial Conference in Hong Kong, China, in December 2005 up to the 
1 May 2006 Trade Negotiations Committee (TNC) meeting.  WT/COMTD/W/143/Rev.2 
 Page 3 
 
 
  access arrangements play a vital role in terms of  their ability to export and earn foreign exchange, 
thereby contributing to the deve lopment of their economies.   
(b) Domestic support 
6. Achieving reductions in the high levels of domes tic support is a key issue to most developing 
countries, since such policies distort the agricultu ral trading environment and contribute to lower 
world prices, including the decline of commod ity prices.  This has a negative impact on 
non-subsidising producers, particularly those in de veloping countries, many of which are keen to see 
large reductions in trade-distorting support in developed countries.   
7. Reform of domestic support is linked to the market access pillar.  Some developing and 
least-developed countries argue that it would indeed be  counter to development aims to expect them 
to further reduce their tariffs while countries contin ue to maintain significant levels of spending on 
Amber and Blue Box subsidies.  Further market openings would simply mean increased competition 
for their domestic producers against highly subsidised products.   
(c) Export competition 
8. Export subsidies, of all kinds, are generally c onsidered to be the most egregious form of 
trade-distorting policy.  The use of export subsidi es ensures that there are more agricultural goods on 
world markets, resulting in lower world prices than would otherwise be the case.  For non-subsidising 
countries this means artificially high levels of co mpetition in both the domestic market and abroad 
and reduced export revenue.  In some cases, exports may be completely displaced in third markets by 
'cheaper' subsidised products.  Thus the removal of this form of artificial competition and price 
suppression would help to improve the ability of  Members that do not use such programmes, 
particularly developing and least-developed Members,  to compete in a fair and market-orientated 
agricultural trading system.  
9. Most developing countries argue for the elimin ation of all forms of export subsidies, 
including in the form of export credits, non-genuine food aid or trade-distorting practices of exporting state trading enterprises.  The parallel elimination of all forms of export subsidies may, however, 
increase the cost of imported food products for some net-food importing countries.   
2. Status of the Negotiations 
10. The agriculture negotiations are governed by paragraph 13 of the Doha Declaration which 
states that the negotiations are "aimed at:  substan tial improvements in market access;  reductions of, 
with a view to phasing out, all forms of expor t subsidies;  and substantial reductions in 
trade-distorting domestic support".  Ministers also ag reed that "special and differential treatment for 
developing countries shall be an integral part of  all elements of the negotiations and shall be 
embodied in the Schedules of concessions and co mmitments and as appropriate in the rules and 
disciplines to be negotiated, so as to be operationa lly effective and to enable developing countries to 
effectively take account of their development needs,  including food security and rural development".   
11. Paragraph 13 of the Doha Declaration has been given further precision by Members in 
Annex A of the General Council Decision of 1 Augu st 2004.  For example, in the area of market 
access, the Decision states that tariff reductions will be made through a tiered formula that takes into 
account Member's different tariff structures and that  progressivity in tariff reductions will be achieved 
through deeper cuts in higher ta riffs with flexibilities for sensitive pr oducts.  Similarly, it states that 
developing country Members "must be able to pursu e agricultural policies that are supportive of their 
development goals, poverty reduction strategies, food security a nd livelihood concerns".  Although 
not fully developed, special and differential treatment  (S&D) provisions are also set out in Annex A.  WT/COMTD/W/143/Rev.2 
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  Such provisions include, inter alia , lower reduction commitments, longer implementation periods, 
designating an appropriate number of  products as Special Products, and the use of a Special Safeguard 
Mechanism.   
12. The 1 August 2004 Decision also states that preference erosion will be addressed in the 
negotiations, as well as that the full implementati on of the long-standing commitment to achieve the 
fullest liberalization of trade in tropical, agri cultural products and for products of particular 
importance to the diversification of production fr om the growing of illicit narcotic crops will be 
effectively addressed.  Clearly, an intricate, delicat e and challenging balance needs to be found in the 
negotiations so that all developing countries are able  to pursue agricultural policies that are supportive 
of their development goals, poverty reduction stra tegies, food security and livelihood concerns.    
13. Prior to July 2005, Members had been involved in a series of consultations to develop a "first 
approximation of draft modalities".  The objective of the first approximation was to give further precision to the 1 August 2004 Decision so that Members could later agree on full modalities.  
Members had focused their work on a number of "g ateway" issues where clarity was required before 
other issues, including development-related issues, could be further developed.  The inability of 
Members to achieve a sufficient degree of converge nce on the "gateway" issues, coupled with a very 
limited period of time before the Sixth Ministerial Conference, led Members to agree on a change of 
focus in their discussions.  Memb ers committed themselves to a "bo ttom-up" negotiating approach.  
Rather than discuss specific issues in isolation, the "bottom-up" approach looks at the issues in a more 
comprehensive and complete manner and includes a discussion of the numbe rs (i.e. levels of 
ambition) for the reductions in support and prot ection.  A number of new proposals in various 
formats, from both developed and de veloping countries, have been s ubmitted to the negotiations since 
September 2005.  These proposals outline the modaliti es and level of ambition different Members, 
and groups of Members, are seeking to achieve.  Not only will the final modalities package define the 
level of ambition from the negotiations, it will also determine the commitments that Members will be 
willing to undertake, which in turn will define  the development potential of the agriculture 
negotiations. 
14. At the Sixth Ministerial Conference, Minister s reaffirmed their commitment to the mandate 
on agriculture.  They agreed, inter alia , to a three-band system for reductions in domestic support, 
with higher linear cuts in higher bands, and to ensu re the parallel elimination of all forms of export 
subsidies and disciplines on all export measures with equivalent effect by the end of 2013.  On market 
access, four bands were adopted for structuring tari ff cuts, with relevant th resholds, including those 
applicable for developing countries, to be agreed.   
3. Specific Issues of Interest to Developing Countries 
15. Issues of interest to developing countries suffuse all the three pillars of the negotiations.  Even 
though the emphasis that different groups of develo ping countries and the le ast-developed countries 
attach to the different issues varies,  these remain central to their ov erall ambitions for the Round.  The 
specific issues of interests to developing countries include, inter alia : 
(a) Market access 
• Increased market access in developed c ountries, by pushing for tariff reductions, 
especially on products of export inte rest to developing countries;  
• Expanding their trading opportunities in other developing countries (South-South trade);  
• Fullest liberalization of trade in tropical agricultural products and for products of 
particular importance to the diversifica tion of production from the growing of illicit 
narcotic crops;   WT/COMTD/W/143/Rev.2 
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  • Less than full reciprocity in the negotiations , including by having to undertake lesser 
tariff reductions and/or tariff quota expansi on commitments relative to those to be 
undertaken by developed countries;  
• Addressing problems relating to preference erosion; 
• Addressing the issues of tariff escalation and the issue of tariff simplification; 
• Expanding and improving the administration of tariff rate quotas; 
• Lifetime of the existing special agricultural safeguard (SSG); 
• Appropriate special and differential treatme nt for developing countries, including the 
flexibility to  designate a number of products  as 'Special Products' (SP) based on criteria 
of food security, livelihood security and rural development needs, and the establishment 
of a Special Safeguard Mechanism (SSM).   
(b) Domestic support  
• Substantial reductions in trade-distor ting support in developed countries; 
• Blue Box criteria/ceiling; 
• Review and clarification of the Green Box crite ria to ensure that such measures have no, 
or at most minimal trade-distorting effects on production;  
• Capping of product-specific aggregate measur ements of support, in accordance with a 
methodology to be agreed;   
• Flexibility to pursue agricultural policies that  are supportive of their development goals, 
poverty reduction strategies, food secu rity and livelihood concerns; 
• Flexibility in, or exemption from, any reducti on in de minimis support (building upon the 
decision that developing countries that a llocate almost all de minimis support for 
subsistence and resource-poor farmers will be exempt from reduction commitments); 
• Appropriate special and differential treatment,  including the right to use some level of 
agriculture support either now or in the futu re; flexibility to provide certain types of 
investment subsidies and to target subsidi es to low-income or resource-poor farmers. 
(c) Export competition 
• Elimination of all forms of export subsidies; 
• Developing appropriate rules in respect of  short-term export credits, export credit 
insurance or guarantee programmes (export credits, etc. with repayment terms of more than 180 days are to be eliminated), exporting state trading enterprises, with special consideration for the monopoly status for certa in STEs in developing countries, and on 
food aid, whilst ensuring that these disci plines have appropriate provisions for 
differential treatment of least-developed and net food-importing developing countries; 
• Appropriate special and differential treatmen t, including longer time frames to eliminate 
all forms of their export subsidies (to tho se developing countries that have reduction 
commitments in this area), extension of th e provisions contained in Article 9.4 which 
provides an exemption from reduction commitments for certain types of export 
marketing and transport costs. 
16. In addition to the issues of interest to developing countries highlighted above, special and 
differential treatment will have to include lower re duction rates and longer implementation periods for 
developing countries.  Furthermore, the 1 August 2004 Decision states that least-developed countries WT/COMTD/W/143/Rev.2 
Page 6  
 
  (LDCs) will not have to undertake reduction commitm ents and that they will have full access to all 
special and differential treatment provisions.  It also states that developed Members shall, and 
developing country Members in a position to do so  should, provide duty-free and quota-free market 
access for products originating from least-developed countries.
2 
17. Given the importance of cotton for a number of  developing countries, especially LDCs, cotton 
has now its own specificity in the agriculture nego tiations.  Cotton was brought to the forefront of the 
agriculture negotiations by four LDCs, Benin, Bu rkina Faso, Chad and Mali which, in May 2003, 
tabled a Sectoral Intititative on Cotton (TN/AG/GEN/4).  Members have agreed to address cotton ambitiously, expeditiously and specifically within the agriculture negotiations.  A Sub-Committee on 
Cotton has been established and is tasked with ad dressing "all trade-distorting policies affecting the 
sector" in all three pillars of the agriculture nego tiations.  The work progra mme of the Sub-Committee 
is also to take account of the need for "coheren ce between the trade and development aspects of the 
cotton issue".  The main interest of the proponents of the Sectoral Initiative is to seek the elimination 
of all export subsidies and subsidies which distor t international cotton markets and to obtain bound 
duty-free and quota-free access for cotton for LDC cotton producers and net exporters.  In this regard, 
it was agreed at the Hong Kong Ministerial Conferen ce that all forms of export subsidies for cotton 
would be eliminated by developed countries in  2006, and that developed countries would give 
duty-free and quota-free access for cotton exports from LDCs from the commencement of the implementation period. Members also agreed that  trade distorting domestic subsidies for cotton 
production would be reduced more am bitiously than under whatever general formula is agreed in the 
negotiations and that it should be implemented over a shorter period of time than generally applicable.  
18. A number of recently acceded Members (RAMs), are concerned about the possible negative 
impact on their agricultural sectors of further significant market access commitments.  These 
Members argue that due to the significant comm itments they undertook during their accession process 
their levels of border protection are already at very low levels, especially compared to the tariff levels 
of other, more advanced countries.   
19. Because of the perceived shortcomings of the mechanisms put into place at the end of 
Uruguay Round to monitor the implementation of Members' commitments, some developing countries have put forward a proposal for improved monitoring and surveillance mechanisms.  They 
support greater transparency in the implementation of new obligations through improved monitoring 
mechanisms as well as ensuring full compliance of new provisions through better surveillance.   
20. A number of developing countries have voiced concern about the continuing decline of 
commodity prices.  Key aspects of their proposal tabled in June 2005 include:  the removal of tariff 
escalation;  the elimination of tariff duties fo r commodity products under GSP schemes;  the 
temporary protection of preferential margins where MFN reductions may affect these preference margins;  enhanced duty- and quota-free access for products from least-developed countries into 
developed and other developing country  markets;  the elimination of non-tariff barriers;  more rapid 
reductions on trade-distorting domestic support and elimination of export subsidies and the 
establishment of a transitional compensation mech anism with a view to compensating exporting 
countries for the subsidy-related losses in their expo rt earnings, during the period which subsidies are 
being reduced or eliminated.  Ministers at Hong Kong agreed that the particular trade-related concerns 
of developing and least-developed countries relate d to commodities would be addressed in the course 
of the agriculture negotiations, as well as in th e negotiations on non-agricultural market access 
(NAMA). 
                                                     
 
2 Reference is made to the Decision on Measures in Favour of LDCs in Annex F of the Hong Kong 
Declaration on duty-free and quota-free market access for LDCs, which is treated in the section on "Special and 
Differential Treatment".  WT/COMTD/W/143/Rev.2 
 Page 7 
 
 
  4. Possible Gains for Developing Countries 
21. A successful conclusion of the negotiations would lead to considerable gains for developing 
countries.  Further reform of the world agricultu re trading system, would lead Members closer 
towards the long-term objective they  agreed to during the Uruguay Round and which is encapsulated 
in the Doha Declaration, the 1 August 2004 Deci sion and the Hong Kong Declaration, namely to 
establish a fair and market-oriented agricultural trading system.  
22. Substantial reductions of tariffs, along with a reduction of tariff peaks and tariff escalation, 
would result in increased market access opportunities.   Exports to developed countries would increase 
and South-South trade would be stimulated.  Th is would not only allow developing countries to 
export products where they have a comparative advant age, but would also allow for the diversification 
of production, including value-adde d processing, and export orientation.   Enhanced tariff quotas with 
an improved tariff quota administration regime would also result in further market access opportunities. 
23. Substantial reductions in trade-distorting domestic  support and the elimination of all forms of 
export subsidies would make world prices more re alistic and would allow exporters, especially in 
developing countries, to trade in an environment free from artificial competition and artificially low 
prices.  This would undoubtedly improve developi ng and least-developed coun tries' share in world 
trade in products in which they have a comparative advantage.   
24. At the same time, appropriate special and diffe rential treatment, including the flexibility to 
designate a number of products as 'special' and the establishment of a Specia l Safeguard Mechanism, 
would go a long way in alleviating concerns that many developing countries have about the possible 
effect of tariff reductions on their rural developmen t, rural livelihood and food security.  Similarly, 
flexibility in the right to provide some agriculture  support, as well as the flexibility to provide certain 
types of investment subsidies, and to target these subsidies to low-income or resource-poor farmers, 
would help developing countries in their effort to increase the productivity, and consequently the earning capacity, of their agriculture sector.  Cl early, increased trade and thereby increased export 
revenue and foreign exchange earnings are all impo rtant aspects in the realization of development 
objectives, especially objectives related to rural devel opment and the alleviation of rural poverty.  At 
the same time, improved market access conditions on a more certain footing can help to increase infrastructure and investment, including foreign direct investment, and therefore increase and improve production and processing standards, employ ment and standards of living.   
B. N
ON-AGRICULTURAL MARKET ACCESS  
1. Parameters of the Development Dimension 
25. The NAMA negotiations offer the promise of improved and more secure market access 
conditions through new tariff reducti ons and bindings in both deve loped and developing country 
markets.  Major aspects of these new opportunities are listed below. 
• Improved access into deve loped country markets :  The reduction or elimination of tariff 
peaks, high tariffs, tariff escalation on pro ducts originating in developing countries 
would open up new valuable market acc ess opportunities in developed countries.   
• Improved opportunities in South-South trade :  Developing countries also have a 
substantial interest in improving market access to each other.     
• Improved market access for LDCs :  LDCs consider improved market access in the form 
of preferential duty-free/quota-free access impor tant for their development goals.  At the 
Hong Kong Ministerial Conference it was agreed that developed Members shall, and WT/COMTD/W/143/Rev.2 
Page 8  
 
  those developing country Members in a positio n to do so should, provide duty-free and 
quota-free market access for products originating from least-developed countries.
 3   
26. Developing country Members in the NAMA ne gotiations have often called for flexibilities 
that would allow them to make lower tariff cuts or  exempt a number of tariff lines from new bindings 
or reduction commitments.  This would be in line wi th the principle of less than full reciprocity for 
developing countries in negotiations.  Some of th e main considerations underlying these arguments 
are listed below.   
• Preserving "policy space" :  Many developing country Me mbers have argued for a degree 
of flexibility in order to pursue their devel opmental goals, including industrialization and 
the diversification of their economies.  While recognizing merit in these arguments, at least with respect to a few products or sector s, others have noted that many developing 
countries have a large binding overhang (d ifference between the bound duties and the 
applied duties) and tariff reduc tions will probably not cut into applied duties as a result of 
this Round.  The idea has also been mooted th at since some developing countries lack the 
institutional capacity to use trade remedies (i.e . safeguards, anti-dumping, etc.) they need 
to preserve high bound duties as a substitute instrument.  
• Protecting infant industries
:  Some developing countries have argued that they need to 
retain tariffs to nurture infant industries because they lack public funds to provide 
subsidies or other types of incentives for this  purpose.  Members have discussed the risks 
of excessive protection over extended periods in terms of a potentially negative impact 
on development.  Some have noted that almost all countries have protected nascent industries at some stage of their development. 
• Maintaining unbound duties
:  Some Members have made a case for keeping tariff lines 
unbound, particularly in sensitive sectors.  Others have questioned why a binding, as 
opposed to the level of a binding, should be considered detrimental to any industry, and have noted that all agricultural tariffs normally considered more sensitive are bound and 
that several developing countries and LDCs  already have full binding coverage.   
• Non-reciprocal preference erosion
:  Many developing and l east-developed countries have 
argued that they depend on non-reciprocal preferences for a significant share of their 
exports.  They consider that further MFN lib eralization should take this into account and 
should not lead to further marginalization.  Other developing countries which benefit less 
from preferences emphasize the importance they  attach to further MFN liberalization 
precisely in the markets of the preference gi ving countries and note that non-reciprocal 
preferences are autonomously granted outsi de the WTO system.  These Members are 
ready to consider safety-net solutions for pr eference receiving countries, but outside the 
WTO framework.  They do not want MFN liberalization to be compromised for 
preserving preference margins as this solution would, amount to special and differential treatment (S&D) for developed countries. 
• Preventing the loss of tariff revenue
:  Dependence on tariffs for government revenue has 
been cited by some developing countries as a reason for preserving tariffs at current levels.  While arguing that it is desirable for a country to diversify its tax base over time, 
others have noted that since bound and not app lied duties are being negotiated, the risk of 
revenue loss may be lower for many developing countries.   
                                                     
 
3 Reference is made to the Decision on Measures in Favour of LDCs in Annex F of the Hong Kong 
Declaration on duty-free and quota-free market access for LDCs, which is treated in the section on "Special and 
Differential Treatment".  WT/COMTD/W/143/Rev.2 
 Page 9 
 
 
  2. Status of the Negotiations 
27. Paragraph 16 of the Doha Ministerial Declarati on provides that the negotiations shall aim, by 
modalities to be agreed, to reduce or as appropria te eliminate tariffs, including the reduction or 
elimination of tariff peaks, high ta riffs, and tariff escalation, as well as non-tariff barriers, in particular 
on products of export interest to developing countri es.  It also provides that the negotiations would 
take fully into account the special needs and inte rests of developing and LDC participants, including 
through less than full reciprocity in reduction commitments, in accordance with the relevant 
provisions of Article XXVIII bis of GATT 1994 and the provisions cited in paragraph 50.  The 
modalities to be agreed are also to include a ppropriate studies and capacity-building measures to 
assist LDCs to participate effectively in the negotiations. 
28. With regard to modalities for tariff reduction,  it was agreed at the Hong Kong Ministerial 
Conference to adopt a Swiss formula with coefficients  that satisfy the mandate in paragraph 16 of the 
Doha Declaration.  Ministers also reaffirmed the importance of special and differential treatment and 
less than full reciprocity in reduction commitmen ts, including paragraph 8 of the NAMA Framework 
in the 1 August 2004 Decision of the General Council, as integral parts of the modalities.  The 
Negotiating Group on Market Access (NGMA) was instru cted to finalize its structure and details as 
soon as possible.   
29. Flexibilities have been the subject of substan tive discussions.  Some Members have indicated 
that flexibilities are a stand alone component and have expressed concerns about possible conditions 
being attached to their use.  Other Members se e a link between the formula and the flexibilities.  
LDCs are expected to increase their bindings substan tially, leaving it largely to them to decide on the 
level and coverage of the bindings.  Discussions have also begun on the question of duty-free and 
quota-free market access for LDCs.   
30. Unbound tariffs have also been an issue of con cern to a number of developing countries.  The 
question of how these should be treated has been  discussed thoroughly on the basis of several 
proposals.  At Hong Kong, Ministers agreed to a dopt a non-linear mark-up approach to establish base 
rates for commencing tariff reductions.  In respect of LDCs, the August 2004 Decision already 
recognises that LDCs shall not be required to appl y the formula nor to participate in the sectoral 
approach, but as a contribution to the Round they are expected to substantially increase their level of 
binding commitments. 
31. The sectorial tariff component of the negotiations  is being pursued actively in an informal 
Member-driven process.  In furtherance of paragraph 7 of the NAMA Framework, Ministers at 
Hong Kong instructed the Negotiating Group to review proposals with a view to identifying those 
which could garner sufficient participation to be real ized.  They agreed that participation should be on 
a non-mandatory basis.  Some Members consider  the sectorial tariff co mponent an essential 
component of the NAMA negotiations in order to achieve commercially meaningful market access.  
Four of the ten ongoing sectoral initiatives have b een initiated by developing country Members.  
However, other developing country  Members have indicated that su ch initiatives are to the detriment 
of small developing Members, as they would erode preferential margins.   
32. Intense discussions have taken place on the erosion of non-reciprocal preferences.  A number 
of studies which show that the effects of preferen ce erosion is circumscribed to a limited number of 
countries and to a limited number of  products have also been discussed.  While some Members see 
the preservation of such preferences at the hear t of their development needs, others see MFN 
liberalization central to their own development n eeds.  Ministers at Hong Kong instructed the NGMA 
to intensify work on the assessment of the scope of the problem with a view to finding possible 
solutions.  On tariff revenue dependency, it would a ppear that more information is necessary from the 
Members concerned in order to move the discussions forward. WT/COMTD/W/143/Rev.2 
Page 10  
 
  33. A number of additional issues have been discu ssed in the NGMA, including the subject of 
RAMs.  Some recently acceded low income economies in transition have indicated that given their 
significant contribution at the time of their WTO ac cession and their low levels of development, they 
should not be required to make any tariff cuts.  The NGMA has also been working on the subject of 
product coverage.  In this connection, the Chairman  has put forward a proposal on product coverage 
contained in JOB(06)/126/Rev.1.  On Ad valorem  Equivalents (AVEs), Members agreed to use the 
guidelines contained in JOB(05)/166/Rev.1 for the conversion of non ad valorem  duties to AVEs.  
The Hong Kong Declaration took note of progress made in this regard.  A multilateral review of the 
AVE submissions is also taking place in the Group. 
34. Addressing non-tariff barriers (NTBs) is important  for many developing countries and LDCs.
4  
It has now become clearer that the majority of  notified NTBs will be taken up by the Members 
concerned either in regular WTO committees or in other negotiating groups.  The majority of NTBs notified pertain to technical barriers to trade (TBT ), trade facilitation, customs valuation and sanitary 
and phytosanitary (SPS) measures.  There are also ongoing vertical NTB discussions, mostly spearheaded by developed country Members and it is  expected that some NTBs will be addressed 
bilaterally.  This is a very complex area of work  and many developing coun tries and LDCs have had 
difficulties in identifying all NTBs affecting th eir exports.  The NGMA has spent a considerable 
amount of time identifying, categorizing and examining the notified NTBs and, in some instances, discussed the NTBs proposed for negotiation in the NGMA.  Ministers at Hong Kong noted that the NGMA had made progress in this regard.  They not ed that Members were developing bilateral, 
vertical and horizontal approaches to the NTB nego tiations, and that some of the NTBs were being 
addressed in other fora including other Negotiating Groups.  They recognized the need for specific 
negotiating proposals and encouraged participants to  make such submissions as quickly as possible. 
35. The Chairman of the NGMA provided a progress report on the status of the NAMA 
negotiations at the TNC meeting of 1 May 2006, which is contained in document TN/MA/18/Rev.1. 
3. Specific Issues of Interest to Developing Countries 
36. Summarizing from the preceding section, the specifi c issues of interest to developing country 
Members are listed below.  It is noted, however, that not all developing countries share the same 
views on several of the issues listed below.   
• Bring down tariff peaks, high tariffs and tari ff escalation in developed country markets 
(improve access in developed country markets); 
• Bring down tariff peaks, high tariffs and ta riff escalation in other developing country 
markets (improve South-South trade); 
• Duty-free and quota-free access for LDCs while ensuring that LDCs are only required to 
increase their level of bindings and not to apply the formula or to participate at sectorials; 
• Reduce or eliminate non-tariff barriers; 
• Preserve "policy space"; 
• Provide adequate protection for infant industries;  
• Preserve unbound duties; 
• Address non-reciprocal preference erosion; 
                                                     
 
4 See the LDC Group's proposal on rules of origin (TN/CTD/W/30 – TN/MA/W/74 – TN/AG/GEN/20)  
and the Secretariat note on non-tariff measures on products of export interest to LDCs 
(WT/COMTD/LDC/W/39 – to be issued).   WT/COMTD/W/143/Rev.2 
 Page 11 
 
 
  • Prevent tariff revenue losses. 
 
4. Possible Gains for Developing Countries 
37. In recognition of benefits that accrue from appropriately designed trade liberalization 
measures, many developing count ry Members have been reduci ng tariffs autonomously over the 
years.  Trade in the manufacturing sector covers 85 to 90 per cent of world merchandise trade.  
Moreover, the share of developing countries in world exports of manufactured goods rose from 16.6 per cent in 1990 to 28.1 per cent in 2004 (the figure for manufactured goods excludes fish and fish products and petroleum). 
38. Overall, the gains from NAMA liberalization have  been estimated by several institutions to 
range from US$54.2 billion to US$ 276.8 billion.
5  Most of those estimates are long term, in the sense 
that they assess the impact following full adjustment.  Evidence regarding short-term effects is scarce.  
These estimates need to be considered in light of the following:  first, the estimates are based on 
scenarios which may diverge substantially from any final agreement reached.  Second, the models 
typically do not take proper account of factors such as growth effects, preferences, or supply-side constraints.  For example, in order to feel th e full benefits of results in the NAMA negotiations, 
alleviation of supply-side constraints is a necessary condition.  Moreover, it is  important to note that 
the estimates of gains from opening up to trade do not incorporate any consideration of adjustment 
costs associated with in creased trade competition. 
39. The gains that could accrue to individual devel oping countries would also differ depending on 
each country's comparative advantage as well as on the extent to which it will liberalize itself.  
However, in general terms, both No rth/South and South/South trade are expected to expand as a result 
of the NAMA negotiations, with the corresponding effect on economic efficiency and growth.  
Additionally, removing or reducing tariff escalati on will give developing countries the opportunity to 
diversify their export base and to produce and e xport products with a highe r domestic value-added 
component. 
40. Another outcome of the NAMA negotiations is expected to be an improvement in binding 
levels which, along with a possible reduction in binding overhang, could enhance the predictability 
and transparency of the trading environment.  This could be further reinforced by the requirement that 
bindings should only take the form of ad valorem  duties. 
41. Problems in the area of non-tariff barriers are also  expected to be addressed in the context of 
the NAMA negotiations and in other negotiating gr oups.  Since the results of the different NTB 
negotiations will be applied on an MFN basis, th e benefits will accrue to the entire Membership, 
irrespective of whether or not a particular Member engaged in the discussions.  This alone could lead 
to a considerable alleviation of the NTBs face d by developing countries and will facilitate their 
exports to developed country markets as well as to the markets of their developing trading partners.  
42. Granting duty-free and quota-free market acce ss to LDCs, whether by developed country 
Members or other developing Members, would offer this group of countries additional market access, 
and along with this, the opportunity to integrate furthe r into the trading system and to diversify their 
export base. 
                                                     
 
5 Piermartini, R. and Teh R.  (2005). "Demystifying Modelling Methods for Trade Policy", WTO 
Discussion Paper No. 10. WT/COMTD/W/143/Rev.2 
Page 12  
 
  C. S
ERVICES  
1. Parameters of the Development Dimension 
43. Services production is the dominant economic activity  in virtually all countries of the world, 
regardless of their level of development.  The services sector represented 68 per cent of world gross 
domestic product (GDP) in 2002.6  Despite many country-specific factors such as natural resource 
endowments, the share of services tends to be positively related to the level of income or 
development.  This is because individuals tend to spend more on services at higher levels of income, 
and the services content of production increases with growing sophistication in industrial production.  
For example, in 2002, services were estimated to account for 44 per cent of GDP in LDCs, 57 per cent in middle income economies, and 71 per cent in high income economies.
7 
44. Many traditional services, including distribu tion, construction, or social services are 
particularly labour-intensive.  Services thus tend to be an even more important source of employment 
– and employment creation – than the above figures suggest.  By the same token, given the sector's 
dominant role in total employment, productivity ga ins are essential for overall economic expansion 
and welfare.  Removing barriers to access and competition among services and service suppliers can 
lead to lower prices, better quality and a wider choice  for consumers.  Given their infrastructural role, 
services such as telecommunications, financial ser vices (including banking and insurance), business 
services, construction and transport are crucial in  shaping overall economic performance.  Logistics 
(packaging, storage, transport, inventories, admi nistration and management) are also an important 
component of total production costs.  The impact of  costly or inadequate services infrastructure is 
comparable to a tax on production and exports.  Moreover, access to global production and trade 
networks requires efficient and timely delivery of pr oducts.  In sum, there is a common interest across 
countries at all levels of development in ensuring that their services infrastructure underpins, rather 
than inhibits, internal economic integration and acc ess to external markets.  The quality, availability 
and price of core producer services are key determin ants of competitiveness, and ultimately of growth 
and development.  
2. Status of the Negotiations 
45. The services negotiations are taking place on two broad fronts:  market access and 
rule-making (Emergency Safeguard Measures, Gove rnment Procurement, Subsidies and Domestic 
Regulation).  The market access segment consists of negotiations on new or improved commitments 
for inclusion in Members' schedules of specific commitments under GATS, and the re-negotiation of 
current MFN exemptions as mandated by the Annex on Article II Exemptions.  Appropriate flexibility 
is to be provided to individua l developing countries, which ma y open fewer sectors and liberalize 
fewer types of transactions in line w ith their development situation.   
46. The GATS does not recommend or prescribe temp lates for undertaking commitments.  Each 
Member is free to structure its commitments in line with its national policy objectives and constraints.  
However, in accordance with GATS Article XIX, Members have adopted specific instruments to 
guide the negotiations.  Among these are the 'Gui delines and Procedures for the Negotiations on 
Trade in Services', which, inter alia , recall that the negotiations aim to achieve progressively higher 
levels of liberalization and increase the participat ion of developing countries in services trade;  
reaffirm that the process of liberalization sha ll take place with due respect for national policy 
objectives, the level of development and the size of economies of individual Members;  require 
Members to give special attention to sectors and m odes of supply of export interest to developing 
countries;  and recognize the right of Members to re gulate and to introduce new regulations.  Special 
                                                      
6 World Bank (2004), World Development Indicators .  
7 Ibid.  WT/COMTD/W/143/Rev.2 
 Page 13 
 
 
  provision has also been made for LDC participation in the negotiations, affirming the need for greater 
flexibility in terms of the depth and coverage of LDC commitments, calling for particular attention on 
the part of other Members in opening up sectors of interest to LDCs, and emphasizing the importance of assisting LDCs to participate more effectively in international trade in services. 
47. The Negotiating Guidelines, which govern the negotiations on market access, establish the 
request-and-offer approach as the main negotiating method.  However, the request-and-offer process 
has only produced limited results so far:  by th e end of May 2006, only 70 Members (counting the EC 
as one) had submitted offers, incl uding 30 revised offers.   
48. The rule-making negotiations which already started in 1995, are based on the mandates 
contained in Article VI:4 (Domestic Regulati on), Article X (Emergency Safeguard Measures), 
Article XIII (Government Procurement), and Artic le XV (Subsidies).  Pursuant to the Doha 
Declaration, they were integrated into the broade r agenda of the new round of negotiations.  With the 
possible exception of the negotiations on Domestic Regulation, the rules negotiations have made little 
headway to date.  While discussions are ongoing on th e basis of several propo sals, major divergences 
between Members remain to be solved. 
49. At Hong Kong, Ministers urged all Members to  participate actively in the negotiations 
towards achieving a progressively higher level of liber alization of trade in services, with appropriate 
flexibility for individual developing countries as provided for in Article XIX of the GATS.  LDCs are not expected to undertake new commitments.  Mini sters expressed their determination to intensify the 
negotiations in accordance with agr eed principles and the objectives, approaches and timelines set out 
in Annex C of the Ministerial Declaration with a view to expanding the sectoral and modal coverage 
of commitments and increasing their quality.  They called upon Members to intensify their approaches 
to conclude the negotiations on rule-making under GATS Articles X, XIII, and XV, and to develop 
disciplines on Domestic Regulation pursuant to the ma ndate under Article VI:4 before the end of the 
round.  In terms of approaches, Ministers agreed, inter alia,  that in addition to bilateral negotiations, 
the request-offer procedure should also be pursued on a plurilateral basis.  They also agreed to give 
due consideration to proposals on the trade-related concerns of small economi es, to develop methods 
for the full and effective implementation of the LD C Modalities, and to provide targeted technical 
assistance with a view to enabling developing and l east-developed countries to participate effectively 
in the negotiations.  In terms of timelines, A nnex C calls for any outstanding initial offer to be 
submitted as soon as possible, a second round of revi sed offers by 31 July 2006 and the final draft 
schedules of commitments by 31 October 2006. 
50. In reporting to the TNC meeting of 1 May 2006 (TN/S/27), the Chairman of the Special 
Session of the Council for Trade in Services expre ssed satisfaction that the negotiations had been 
proceeding in a positive manner since Hong Kong.  Th e plurilateral request-offer negotiations agreed 
to at Hong Kong had been proceeding very smoothly,  with two rounds of talks having been held so 
far.  Substantive discussions had been held on th e proposals with regard to regulatory disciplines 
under Article VI:4 of the GATS.  Discussion conti nued on Emergency Safegua rd Measures, Subsidies 
and Government Procurement with not much cha nge discernable in long-held positions on various 
issues.  
51. Discussions are also ongoing on the implementation of the LDC modalities, on the basis of a 
communication submitted by Zambia on behalf of  the LDC Group – "A mechanism to operationalize 
Article IV:3 of the GATS" (TN/S/W/59).  
3. Specific Issues of Interest to Developing Countries 
52. A broad range of developi ng countries have expressed their negotiating objectives and 
expectations in written submissions since the start of the services negotiations. Stated interests among WT/COMTD/W/143/Rev.2 
Page 14  
 
  developing countries show considerable variation.  Over 40 per cent of the 150 proposals that have 
been tabled since November 2000 involve one de veloping country or more (this number excludes 
most proposals on so-called horizontal issues, but covers basically all proposals on sectors and modes of supply).  In total, more than 30 developing count ry Members have voiced interest in at least one 
sector or mode of supply under ne gotiation.  Relevant sectors include professional services, computer 
and related services, telecommunication services, a udiovisual services, construction and related 
engineering services, distribution services, energy services, environmental services, financial services; tourism services and transport services (including logistics).  In other words, the sectors addressed by individual developing countries extend across a ll major services covered by the Agreement.   
53. Movements of natural persons (u nder Mode 4) and, more recently, the cross-border supply of 
services (under Modes 1 and 2), have also attracted  attention.  Proposals on Mode 4, which plays a 
focal role for many developing countries, have incl uded a call for the harmonization of categories of 
service suppliers used in scheduling commitments, more commitments on lower-skilled workers, the 
reduction of barriers involving such matters as natio nality, residency and work permit requirements, 
tax treatment, wage parity requirements, and the dur ation of stay.  The emergence of "off-shoring" 
activities in recent years has turned  the spotlight on cross-border trade.  A number of developing 
countries have recently called for ambitious comm itments under both Modes 1 and 2 across a wide 
range of sectors, including business services, research and development services, computer services, management consulting services, call-centre services, and transfer of financial information and data.   
54. Developing-country Members are actively taki ng part in the plurilateral request-offer 
mechanism agreed at Hong Kong.  Apart from being r ecipients of many requests, some of them have 
also co-sponsored plurilateral requests for market acce ss in areas of specific interest, such as the 
movement of natural persons, cro ss border supply of services, computer related services, construction 
and related engineering services, and the removal of  MFN exemptions.  At the meeting of the Special 
Session of the Council for Trade in Services held in May 2006, the delegation of  Zambia on behalf of 
the LDC Group submitted a communication presenting their collective request in Mode 4 
(JOB(06)/155).  The LDC Group requests Members to make commitments in four categories of 
natural persons, with each category applying to a number  of specified sectors of export interest to this 
group.  
4. Possible Gains for Developing Countries 
55. Several studies have estimated, with a wide vari ety of research techniques, the income effects 
attributable to a reduction in services protection.  In  general, these gains have been found to dwarf the 
benefits expected to flow from further trade liberali zation in goods.  This is due to several factors.  
First, barriers in many services markets are highe r than existing barriers in goods trade, barring 
particular exceptions such as in the case of agricultu re.  Second, these barriers normally consist of less 
transparent and efficient measures – quotas and ot her non-revenue generating interventions – than 
tariffs in merchandise trade.  Third, as explained ab ove, the costs of services protection, in particular 
of infrastructure-related services, are spread across,  and impose deadweight losses on, a wide array of 
downstream user industries.   
56. Developing countries stand to gain considerably from liberalization of trade in services, both 
on the part of their trading partners and in terms of their own policy regimes.  Bearing in mind the 
nature of potential economy-wide gains from low-co st, high quality services, benefits to countries 
from their own liberalization can be considerable.  While there are obvious long-term gains associated 
with services liberalization, there are also adjustment costs involve d which may need to be addressed 
with assistance and capacity-building programmes.  Moves towards a more competitive environment 
take time and may impose significant burdens in te rms of redundancies, professional or even regional 
relocation, training requirements, etc. on affected co mpanies and their staff.  Obviously much depends 
on domestic regulatory or institutional reforms to underpin the viability and credibility of the new  WT/COMTD/W/143/Rev.2 
 Page 15 
 
 
  environment.  For example, the absence of clear  and predictable market conditions may prompt 
potential investors to demand risk premiums that are not politically or socially acceptable.  If 
increased entry into financial sectors is not a ccompanied by adequate prudential supervision, 
instability may ensue.  And the absence of well-d esigned universal service requirements may result in 
new, unsustainable burdens bei ng imposed on vulnerable groups or regions.  The pace, content and 
sequencing of liberalization programmes are thus key to avoiding unnecessary frictions and ensuring 
the efficiency and viability of the new regimes.   
57. Even though governments can – and indeed do – initiate reforms of services sectors 
unilaterally, multilateral commitments under the GA TS can be an important catalyst for such 
liberalization and reform efforts.  On the one ha nd, services negotiations can help to improve export 
access in areas of developing country interest, such as the movement of natural persons, cross-border 
supply of services, or in specific sectors.  The GATS can also be used to secu re access to markets that 
are already open, and where developing countries ar e acquiring a comparative advantage, such as the 
cross-border trade of electronically delivered servi ces.  On the other hand, specific commitments can 
spur and promote investment in the unilaterally liberalized sectors, by making access to the market 
predictable, secure, and discrimination-free.  More over, specific commitments can be shaped to take 
into account eventual adjustment processes and to allow for the development of necessary regulatory 
frameworks. 
D. TRADE FACILITATION  
1. Parameters of the Development Dimension 
58. Development aspects have always been at th e heart of WTO work on facilitating trade, 
reflecting the wide-spread recognition of 'facilitation'  as a fundamental element of a country's trade 
and growth policy.  Having brought down tariff barriers significantly, Members have decided to 
address the remaining obstacles to trade.  Negotiations on Trade Facilitation are widely seen as a necessary complement to broader liberalization effo rts.  The development dimension further surfaces 
in the negotiations' aim of enhancing technical assistance for facilitation measures and harnessing 
private sector support. 
59. The development aspects are reflected in the negotiating mandate, addressing them in three 
inter-connected ways.  First, by seeking to expe dite the movement, release and clearance of goods, 
including goods in transit, with the related a dditional goal of enhancing technical assistance and 
capacity-building support in this field.  Further wo rk on both aspects has to take full account of S&D 
treatment for the developing membership with exte nt and the timing of entering into commitments 
being related to their implementa tion capacities.  Members recognize that the S&D principle should 
extend beyond the granting of traditional trans ition periods.  Developi ng and least-developed 
Members would not be obliged to undertake inv estments in infrastructure projects beyond their 
means.  Far-reaching flexibility is further granted to LDCs, which will only be  required to undertake 
commitments to the extent consistent with their i ndividual development, financial and trade needs or 
their administrative and institutional capabilities.  De velopment-related aspects are also reflected in 
the mandate's call for the identification of trade fac ilitation needs and priorities as an integral part of 
the negotiations.  Each of those aspects has been reflected in various contributions by the Membership, advancing their understanding and outlining possible ways ahead.    
2. Status of the Negotiations 
60. Based on the modalities set out in Annex D of the General Council Decision of 
1 August 2004, and in line with the Work Plan adopted by the Negotiating Group on Trade 
Facilitation, negotiations have proceeded on the basi s of Members' contributions, both in written and 
verbal form.  More than 90 submissions, many by de veloping countries, have been tabled on all issues WT/COMTD/W/143/Rev.2 
Page 16  
 
  under negotiation, underlining their commitment to  advancing the facilitation of trade.  Written 
contributions have also been made by least-dev eloped countries, often teaming up with developed 
Members. 
61. Having completed a series of discussions on all elements of the mandate and the proposals 
submitted thereon, the Negotiating Group worked on capturing the progress made so far and setting 
out recommendations for the road ahead.  A num ber of concrete recommendations have been 
proposed and were adopted by Ministers in Hong Kong (see the report of the Negotiating Group in Annex E of the Hong Kong Ministerial Declarati on).  Benefiting from adva nces in understanding and 
building on elements of common ground, Annex E of  the Hong Kong Declaration reflects a generally 
expressed sense of satisfaction with the incl usive and transparent manner of conducting the 
negotiations, and their progress made on substance.  At the same time, there is clear recognition of 
there still being substantial work ahead, especially with respect to S&D aspects, needs and priorities 
identification, concerns about cost implicati ons and technical assistance and capacity-building 
support. 
62. Ministers at Hong Kong took note of the re port of the Negotiating Group and the comments 
made by delegations on it as reflected in document TN/TF/M/11.  They endorsed the 
recommendations contained in paragraphs 3, 4, 5, 6 and 7 of the report.  These highlight, inter alia,  
the need for continued information sharing on national experiences, an intensification of the 
negotiations based on Members' proposals and the m ove into a focussed drafting mode early enough 
after the Conference to allow for a timely conclu sion of text-based negotiations on all aspects of the 
mandate and the reaffirmation, reinforcement and operationalization of the technical assistance and 
capacity building (TA&CB) commitments in An nex D of the 1 August 2004 General Council 
Decision.  A recommendation is also issued that Memb ers, in particular developed ones, continue to 
intensify their support in a comprehensive manner a nd on a long-term and sustainable basis, backed 
by secure funding.  In addition, the Negotiating Gr oup recommended that it deepens and intensifies its 
negotiations on special and differential treatment with  a view to arriving at S&D provisions that are 
precise, effective and operational and that allow fo r necessary flexibility in implementing the results 
of the negotiations.  Reaffirming the linkages among the elements of Annex D, the Negotiating Group 
also recommends that further negotiations on S& D build on input presented by Members in the 
context of measures related to GATT Articles V, VIII  and X and in their proposals of a cross-cutting 
nature on S&D.  
63. Work on the various areas identified in the Hong Kong Declaration has progressed in the 
period after the Conference, leading to a number of refined and consolidated proposals (for details, 
see document TN/TF/W/43/Rev.7).  At the TNC meeting of 1 May 2006, the Chairman of the Negotiating Group reported that progress had been made in  more clearly defining the matters at stake.  
Through substantive proposals from developing countr ies, valuable advances had in particular been 
achieved at the crucial technical assistance and S&D front.  
3. Specific Issues of Interest to Developing Countries 
64. Issues identified by developing countries as areas of particular interest cover a wide field, 
including TA&CB.  A lot of attention has also b een given to the needs and priorities of developing 
countries, cost implications and questions of S&D.   Reference was further made to linkages between 
Annex D's elements and the need for a balanced r esult.  At the same time, there was also focus on 
measures to improve and clarify the relevant regul atory framework with a view to expediting and 
enhancing developing country trade.  For landl ocked countries (as well as non-landlocked Members 
of the developing world), transit matters are of particular interest in that regard.  
65. In the TA&CB area, calls have been made for support both during the negotiations and after 
their conclusion, with a number of concrete measures proposed for each phase.  Such support is  WT/COMTD/W/143/Rev.2 
 Page 17 
 
 
  recognized as vital for developing and least-develope d countries to fully participate in and benefit 
from the negotiating process.  Assistance was request ed to be precise, effective and operational, 
reflecting the trade facilitation needs and priorities of the developing world.  Reference was also made 
to enhancing cooperation and coor dination amongst the various aid providers to increase efficiency 
and avoid duplication of work.  The identification of trade facilitation needs and priorities is another 
issue close to the heart of developing Members, wi th requests being made for their advancement and 
support.  Work is also requested to continue and intensify on the process of addressing concerns on 
the cost implications side.   
66. Special and differential treatment is another key pillar of the negotiations and an essential 
requirement for their success.  Like in the case of TA&CB, calls have been made for S&D provisions 
to be precise, effective and operational.  Request s were further made to allow for the necessary 
flexibility in implementing the negotiations' results.   
67. Issues raised by developing countries with r espect to improving and clarifying the existing 
regulatory framework cover all rele vant GATT Articles.  Proposals range from enhanced transparency 
and non-discrimination initiatives over various me asures regarding import/export-related fees and 
formalities to matters addressing goods in transit.  The landlocked countries have been especially 
active in pursuing some of these issues.  Common  underlying objectives of  those suggestions are 
increased trading opportunities that take account of th e particular needs of the developing world.   
4. Possible Gains for Developing Countries  
68. Lowering trade-related transaction costs can resu lt in a significant improvement in a country's 
ability to compete effectively in the global econo my.  There has been wide recognition of this 
expressed in the Negotiating Group on Trade Facilita tion by developing countries and LDCs, and of 
the importance of trade facilitation for the attainment  of their development objectives.  They have 
drawn particular attention to the benefits they  foresee in terms of increasing the competitiveness of 
their small and medium-scale enterprises.  This a pplies in particular to the case of landlocked 
developing countries and LDCs, for which steps to fac ilitate transit traffic along with facilitating their 
own cross-border trade can produce a marked reduc tion in their import costs and an improvement in 
their export competitiveness on world markets.  Na tional experience papers presented by delegations 
in the Negotiating Group, as well as numerous st udies that have been conducted by relevant 
international organizations that are collaborating with  WTO Members in this area, point to a range of 
benefits that can be realized by taking measures to facilitate trade, including improving revenue 
collection, improving border controls and security, lowering administrative costs, encouraging more 
trade and foreign investment, and enhancing the competitiveness of domestic business in its home 
market as well as on export markets.  Developing countries also stand to benefit greatly from the aspired increase in transparency and pr edictably of the trading environment. 
E. S
PECIAL AND DIFFERENTIAL TREATMENT  
1. Parameters of the Development Dimension 
69. Special and differential treatment is an integr al part of the WTO Agreements and reflects a 
recognition of the diverse nature of WTO's vast membership, asymmetry in their economic strengths 
and the need to ensure that economic gains from the trading system are well distributed among all 
Members.  These provisions are also designed to  facilitate the integration of developing and 
least-developed countries into the world economy, a nd to provide countries at different levels of 
development support and flexibility in the implementa tion of their obligations so as to help them 
achieve economic growth.  While acknowledging that the multilateral trading system has attempted to 
address some of their concerns through appropriate  S&D provisions, most developing countries still 
feel that more needs to be done to enhance the effectiveness and operationalization of these WT/COMTD/W/143/Rev.2 
Page 18  
 
  provisions.  One of the main concerns expressed ha s been that S&D provisions are couched in best 
endeavour language and mere ly exhort Members to take certain steps, rather than making this action 
mandatory and binding.   
70. The development dimension of S&D can be best  gauged from the different submissions made 
by the proponents in the Special Session.  The African Group, one of the main proponent on S&D, 
states that "special and differential treatment shall aim, to address and resolve the imbalances between 
developed country Members and de veloping and ... to support devel oping and least-developed country 
Members to undertake adjustments that are necessary for them to meaningfully benefit from the 
agreements...and to secure for them market access in the multilateral trading system that will facilitate 
their rapid economic development" (TN/CTD/W/3/Re v.2).  The African Group has submitted that its 
experience with implementing S&D provisions has shown that such provisions are best 
operationalized when they are in the form of bindi ng obligations.  The LDCs, which have also played 
a central role in this work, believe that deve loping country Members, particularly the LDCs, 
"experience peculiar problems, which constrain thei r beneficial participation in the multilateral 
trading system" (TN/CTD/W/4).  They therefore feel that assuming the same types and levels of 
obligations as undertaken by other Members has pr evented them from addressing their development 
challenges and from participating meaningfully in th e international trading system.  The LDCs argue 
that S&D provisions should provide them flexib ility to take measures to assist their domestic 
industries, and that they should be obliged to undert ake only such commitments or obligations that are 
consistent with their trade, deve lopment and financial needs.   
2. Status of the Negotiations 
71. Of the 88 Agreement-specific proposals submitted in the Special Session mainly by the LDCs 
and the African Group, Members had by Cancún been  able to agree in principle to 28 proposals, 
which are yet to be adopted (Annex C of JOB(03) /150/Rev.2).  Thirty-eight proposals are under 
consideration in other WTO bodies.   
72. In the weeks preceding the Hong Kong Ministeria l Conference, intensive work was carried 
out on  the five remaining LDC proposals, which eventually led to the adoption of those proposals at 
Hong Kong.  The adopted texts of the five propo sals are contained in Annex F of the Hong Kong 
Declaration.  It is particularly worth noting that  it has been agreed that developed-country Members 
shall and developing-country Members declaring th emselves in a position to do so should, provide 
duty-free and quota-free market access for at least 97 per cent of products originating from LDCs.  
Members are to ensure that preferential rules of origin applicable to imports from LDCs are 
transparent and simple, and contribute  to facilitating this market access.
8   
73. The other adopted decisions in Anne x F of the Hong Kong Declaration, inter alia , provide the 
LDCs flexibility in the TRIMs Agreement, simp lification of the waiver process and improved 
coherence agreements with other international or ganizations to ensure more targeted technical 
assistance and capacity-building programmes. 
74. The Ministers at Hong Kong instructed the Special  Session to complete the review of all the 
outstanding Agreement-specific proposals and report to the General Council with clear recommendations on a decision by December 2006.  The Special Session was also instructed to 
resume work on all other outstanding issues, including on the cross-cutting issues and report on a regular basis to the General Council.  The bodies in which the Category II proposals are being 
addressed, were also directed to complete cons ideration of those proposals and report to the 
General Council with clear recommendations for a decision by December 2006.   
                                                     
 
8 Cross reference with footnotes 2 and 3 in the "A griculture" and "Non-Agricultural Market Access" 
sections respectively.  WT/COMTD/W/143/Rev.2 
 Page 19 
 
 
  75. Since Hong Kong work in the Special Session has focused on the 16 remaining 
Agreement-specific proposals.  Members have also resumed their discussions on the outstanding issues.  Though the discussions on these proposals have been constructive, and have followed a text-
based approach, there continues to be significan t divergences on a number of elements of these 
proposals.  Further work will need to be ca rried out on the proposals to narrow the existing 
divergences.   
3. Specific Issues of Interest to Developing Countries 
76. Just as development issues suffuse all areas of th e negotiations, so do issues relating to S&D.  
Consequently, any comprehensive compilation of is sues of interest to developing countries would 
need to necessarily include the pro posals on S&D tabled by developing countries in the different areas 
being negotiated.  However, in the context of the proposals tabled in the Special Session, it can be 
said that the specific issues of interest to  developing countries, include the following: 
• Flexibility in the multilateral rules, which re flect their concerns and constraints;  
• Transitional arrangements linked to the ach ievement of developmental objectives; 
• Simplifying existing procedures, including for enhanced flexibilities and extended 
transition periods, so as to provide a timely an d effective response to particular concerns; 
• Less than full reciprocity in the commitments undertaken by developing countries; 
• Enhanced and targeted technical assist ance and capacity-building programmes that 
would assist countries to implement WTO rules; 
• Measures that would provide additional and predictable market access for products of 
export interest to developing countries; 
• Operationalization of the decision to provi de duty free and quota free market access to 
the least-developed countries; 
• Making S&D provisions mandatory, in keeping with the concern expressed by many 
developing countries that most of these provi sions are not couched in binding language; 
• Improved coherence arrangements to ensure that flexibilities provided in the WTO rules 
are not diluted because of commitments mandated by other organizations. 
4. Possible Gains for Developing Countries 
77. While it is difficult to quantify the gains fro m the S&D work programme, mainly because of 
the lag between adopting and operationalizing any recommendation, it can be said that gains would 
accrue by making the S&D provisions more precise, effective and binding.  Clearly, in order to assist developing countries, especially the LDCs, the S&D provisions must respond to, and be reflective of, 
their concerns.  A number of developing country Members have said that commitments and obligations undertaken by them in the WTO have redu ced their flexibility to adopt, what in their view, 
are pro-development policies and measures.  In this  context, they have put forward a number of 
proposals which seek to enhance the existing flexib ility in the rules for them, and consequently 
provide them a certain degree of policy space.  They  have also sought simplification of cumbersome 
procedures and/or notification obligations, so that they can divert their resources to other developmental issues and areas.  Clearly, market access is an important area where gains would 
accrue, even if the bulk of the development outcom es are to be found in the different areas being 
negotiated, such as in the agriculture, NAMA and services negotiations.  However, the actual gains 
will largely depend on how effectively these reco mmendations, including the decisions taken in 
favour of the LDCs at Hong Kong, are operationalized.   WT/COMTD/W/143/Rev.2 
Page 20  
 
  78. Developing country Members also consider trans itional time periods as an important element 
of S&D treatment; one that provides them with mo re time to conform with, or fulfil particular 
obligations.  However, many, if not all, of these  transition periods have expired and developing 
countries, especially the LDCs, are seeking a positive consideration of their requests for extension of 
these transition periods.  There are several proposals on the need for technical assistance to be more 
predictable and targeted to the development n eeds of developing and least-developed countries.  
There are also a number of proposals that seek to improve coherence arrangements with other organizations in the delivery of such assistance.  An effective S&D regime, as part of the final 
outcome of the Doha Round, will certainly st rengthen the development dimension of the  
negotiations.  However, to achieve this it will be important to ensure that the S&D provisions are 
precise, effective and operational and provide meanin gful development gains to developing countries. 
F. I
MPLEMENTATION -RELATED ISSUES AND CONCERNS  
1. Parameters of the Development Dimension 
79. Concerns arising from the implementation of the Uruguay Round Agreements were raised by 
some developing countries shortly after the establishment of the WTO in 1995.  To them, the Uruguay 
Round Agreements were not balanced and did not contain provisions that would facilitate their 
integration into the multilateral trading system.  In fact, there was the view that some of the 
Agreements, particularly the Agreement on Trad e-Related Investment Measures (TRIMs) and the 
Agreement on Subsidies and Countervailing Measures restricted the policy measures that could be 
implemented by developing countries to attract fore ign direct investment and to support their nascent 
domestic industries.  Concerns were also expressed about a wide range of issues, including the back 
loading of commitments under the Agreement on Te xtiles and Clothing.  There was the additional 
concern among small and economica lly-weak developing countries that the cost of implementing the 
Uruguay Round Agreement, particularly the Agreem ent on Trade-Related Aspects of Intellectual 
Property Rights (TRIPS) and the Agreement on Cu stoms Valuation was excessive as compared to 
benefits they had derived from the implementa tion of the Uruguay Round Agreements.  Some 
developing countries also complained about the a buse of anti-dumping, safeguards and countervailing 
measures as well as standards, sanitary and phytosanitary measures 
80. In response, a number of developed countries que ried whether all the proposals were genuine 
implementation issues in the sense of focusing on di fficulties encountered by developing countries in 
their implementation of the Uruguay Round Agreements .  Rather, they believed some proposals were 
aimed at rewriting Agreements, thereby upsetting the balance which was struck during the Uruguay 
Round.  Nonetheless, they entered into a lengt hy process of consideration of the issues. 
2. Status of Work  
81. Work on implementation issues began in earn est in 2000 when WTO Members agreed to set 
up an Implementation Review Mechanism under th e auspices of the General Council.  This 
culminated in the adoption of a Decision on Impl ementation-Related Issues and Concerns at the 
Fourth Ministerial Conference in Doha.  Under this  Decision, Ministers agreed to take immediate 
action to address some 55 issues.  They also agreed  in paragraph 12 of the Doha Declaration that 
negotiations on outstanding implementation issues w ould be an integral part of the Doha Work 
Programme.  In this regard, they decided to pro ceed as follows.  Where a specific negotiating mandate 
had been provided, the relevant issues were to be addressed under that mandate.  The other 
outstanding implementation issues were to be addressed by relevant WTO bodies, which were to 
report to the Trade Negotiations Committee (TNC) by  the end of 2002 for it to take appropriate 
action.  In this latter track of work, the releva nt WTO bodies reported wide divergences in Members' 
positions on most of the issues, thus preventing the TNC from taking any action on the issues at its 
meeting in December 2002.  WT/COMTD/W/143/Rev.2 
 Page 21 
 
 
  82. Members requested the Director-General in May 2 003 to consult on the issue of the extension 
of the protection of geographical indications provi ded for in Article 23 of the TRIPS Agreement to 
products other than wines and spirits.  It was furt her agreed that the Director-General's Deputies 
would consult on the remaining 23 issues.  Despite  intensive consultations, little progress was made. 
83. The 1 August 2004 Decision of the General C ouncil instructed the TNC, negotiating bodies 
and other WTO bodies concerned to redouble their efforts to find appropriate solutions as a priority.  
The Decision also requested the Director-General to  continue with his consultative process on all 
outstanding implementation issues under paragraph 12(b) of the Doha Ministerial Declaration, 
including on issues related to the extension of th e protection of geographical indications provided for 
in Article 23 of the TRIPS Agreement to products other than wines and spirits, if need be by 
appointing Chairpersons of concerned WTO bodies  as his Friends and/or by holding dedicated 
consultations.  The Director-General was to repor t to the TNC and the General Council no later than 
May 2005 and the Council was to review progress and take any appropriate  action no later than 
July 2005.  Work then  proceeded on two track s.  The first track concerned all outstanding 
implementation issues except GI extension and the Chairpersons of concerned WTO bodies, acting as 
Friends of the Director-General, undertook consultati ons on  the issues in their respective areas.  On 
the second track (GI extension), the Director-Gener al requested his Deputy Director-General to 
conduct, on his behalf, a technical level process aimed at  clarifying the issues related to GI extension, 
building on the work already undertaken.  The Director-General, in reporting to the TNC and 
General Council in May 2005, said that the picture wa s a mixed one, with more encouraging signs in 
some areas than in others.  In some cases, ways in which Members could try to move forward had 
emerged which deserved to be further explored.  He, therefore, suggested that the work should 
continue on both tracks and that he would report again in July 2005.  In July, the Director-General reported that the overall situation had not evolved significantly, and suggested that his successor be 
requested to continue the consultative processes after the summer break.  The General Council took 
note of the report by the Director-General and agreed  to request the Director-General's successor  to 
continue with the consultative process after the summer break.   
84. At the meeting of the TNC of 13 October 2005, the Director-General informed delegations 
that, in line with the mandate given to the Dir ector-General in the August 2004 Decision which had 
been renewed by the General Council in July 2005,  he was undertaking a consultative process on all 
outstanding implementation issues under paragraph 12( b) of the Doha Declaration, including on 
issues related to the extension of the protection of  geographical indications provided for in Article 23 
of the TRIPS Agreement to products other than win es and spirits.  He indicated that this process 
would be carried out in his capacity as Director-Gen eral and was without prejudice to the positions of 
Members.  He would be assisted by a number of  Chairpersons of concerned WTO bodies acting as his 
Friends and by two of his Deputy Directors-Genera l, one taking up TRIMs issues, and the other the 
issues of GI extension and those relating to the relationship between the TRIPS Agreement and the 
Convention on Biological Diversity (CBD). 
85. At the TNC meeting in November 2005 a nd the December 2005 General Council, the 
Director-General reported that overall the situa tion had not evolved significantly since July.  
However, there had been a good level of engagement  by all delegations in the work and he believed 
that some substantive results were still possible.  Therefore, with the aim of ensuring that Members 
could fulfil the commitment they had undertaken  at Doha on this issue, the draft Hong Kong 
Ministerial Declaration proposed continuing this process.   
86. In December 2005, Ministers at Hong Kong re iterated the instruction in the August 2004 
Decision to the TNC,  negotiating bodies and othe r WTO bodies concerned to redouble their efforts to 
find appropriate solutions to outstanding implemen tation-related issues.  Ministers requested the 
Director-General, without prejudice to the positions of  Members, to intensify his consultative process 
under paragraph 12(b).  Specific mention of the issue of  the relationship between the TRIPS WT/COMTD/W/143/Rev.2 
Page 22  
 
  Agreement and the CBD was added alongside that of  GI extension.  Minister s also instructed the 
Director-General to report to each regular meeting of the TNC and the General Council on the outstanding implementation issues.  The Genera l Council is to review progress and take any 
appropriate action no later than 31 July 2006. 
87. Since the Hong Kong Ministerial meeting, the Director-General has intensified his 
consultative process.  He has reported that overall,  the process has been reinvigorated with a good 
level of engagement by delegations.  In some area s – GI extension and the relationship between the 
TRIPS Agreement and the CBD – he has reported that there seems to be growing clarity on the interests of Members and better identification of  key issues for progress.  On all the other 
implementation issues, the Director-General has reported that the situation has not evolved 
significantly and, in many of these areas, the ba ll was essentially in the court of the proponents. 
3. Specific Issues of Interest to Developing Countries 
88. Although raised under a number of agreements, the outstanding implementation issues can be 
broadly classified under four main headings: 
(a) Proposals intended to give longer transiti onal periods to developing countries to 
implement their obligations; 
(b) Proposals safeguarding the market access of developing countries and ensuring that 
they derive benefits under certain Agre ements, such as the TRIPS Agreement; 
(c) Proposals intended to exempt developing c ountries from complying with obligations, 
such as those under the TRIMs Agreement;  and 
(d) Proposals requesting that developing countri es be provided with effective technical 
assistance. 
4. Possible Gains for Developing Countries 
89. Proponents of the various implementation-rela ted proposals have argued that they would 
derive economic and development benefits from them.  For example, some of the proposals are 
intended to safeguard the market access of deve loping countries by requiring developed countries to 
take account of their interests when applying contingency protection measures.  Proponents have said 
that the proposals relating to technical assistance  would strengthen their human and institutional 
capacities and enable them to par ticipate effectively in the activities of standard-setting bodies.  To 
take another example, the proponents have said that the proposal on Article XVIII of the GATT 1994 
would assist them to implement programmes wh ich would put their economies on the path of 
sustainable growth and development.  
90. With regard to the proposals under the TRIMs Ag reement, the proponents have said that these 
would enable them to attract foreign direct investme nt into certain critical sectors of their economies.  
They argue that the domestic content requirement w ould benefit local industri es in terms of enhancing 
their competitiveness and facilitating the transfer of technology.  Some other Members argue that if 
the domestic industries are efficient, most foreign investors would source inputs from them rather than 
importing them from elsewhere. 
91. While useful clarificatory work on GI exte nsion has been undertaken, positions remain 
divided on the impact of extens ion on developing countries.  Developing countries figure both among 
the proponents and opponents of extension.  Deve loping country and other proponents maintain that 
extension would provide stronger and more easily asserted protection of GIs for products other that 
wines and spirits.  As a result, extension would fo ster development of local rural communities and the 
value added contingent on a GI would help cr eate new and better opportun ities for quality products,  WT/COMTD/W/143/Rev.2 
 Page 23 
 
 
  especially for smaller, developing country Member s.  In response, developing country and other 
opponents have said that it had not been shown that the existing level of protection required for such 
GIs was inadequate.  They have also argued that extension could not in itself make GIs for quality 
products a valuable marketing tool;  nor could GI protection guarantee market access.  The opponents 
have also raised concerns, inter alia , on the impact of any extension on producers not located in the 
area designated by a GI, as well as questions related to administrative costs and burdens.  The 
Secretariat circulated in May 2005 a factual compilation of the issues raised and views expressed on issues related to GI extension since the beginnin g of the Doha Work Programme (WT/GC/W/546 - 
TN/C/W/25).  This document gives a fuller picture of the debate that has taken place on the matter. 
92. Issues relating to the relationship between the TRIPS Agreement and the CBD are being 
discussed in two contexts.  In addition to th e consultations undertaken on behalf of the 
Director-General in the context of outstanding im plementation issues, an intensive exploration of 
substantive concerns and suggesti ons is being carried out in the regular sessions of the Council for 
TRIPS, pursuant to paragraph 19 of the Doha Declaration and paragraph 44 of the Hong Kong 
Declaration.  The Secretariat circulated in Februa ry 2006 an updated summary note of issues raised 
and points made on the relationship between the TRIPS Agreement and the CBD (IP/C/W/368/Rev.1) 
which gives more details on the positions of Member s on this subject in the TRIPS Council.  With 
regard to the consultations on outstanding impl ementation issues carried out on behalf of the 
Director-General, a group of developing countri es, with wide support from other developing 
countries, have reiterated their proposal on amending the TRIPS Agreement to include a disclosure 
requirement in patent applications aimed at a voiding erroneous patents and facilitating compliance 
with national access and benefit-sharing regimes.  Developing country proponents have said that a 
satisfactory outcome on the issue of the relations hip between the TRIPS Agreement and the CBD is 
critical for the development dimension of the Doha Wo rk Programme.  Some others take the view that 
the case has not been made and that such a proposal is either necessary or appropriate in achieving the shared objectives in this ar ea, which can be most effectively realized in other ways without involving 
the patent system.  In between these two positions , support has been expressed for a more limited 
patent disclosure requirement at the international leve l, restricted to the origin or source of genetic 
material and related traditional knowledge and without substantive implications for patentability. 
G. R
ULES  
1. Anti-Dumping and Subsidies and Countervailing Measures, Including Fisheries 
Subsidies  
(a) Parameters of the de velopment dimension 
93. Developing country exports have been the s ubject of some 45 per cent of all anti-dumping 
investigations since 1995.  Developing country Members also are the main users of anti-dumping, accounting for nearly 60 per cent of all anti-du mping investigations since 1995.  A number of 
developing country Members have sponsored or  co-sponsored proposals aimed at tightening 
anti-dumping rules, i.e., reflecting exporter interest s.  On the other hand, a number of developing 
country Members (including some that have s ubmitted proposals aimed at tightening anti-dumping 
rules) have cautioned against making the rules too difficult for developing country investigating 
authorities to implement, thereby reflecting their interests as users.   
94. Disciplines on subsidies are differentiated among developing country Members based on their 
level of development and certain other factors.  Th is diversity of current treatment is reflected in 
positions on various proposals concerning whet her and how subsidy disciplines might be 
strengthened, and on proposed changes to the spec ial and differential treatment provisions of the 
Agreement on Subsidies and Countervailing Measures (SCM).  Finally, in the area of fisheries 
subsidies, certain developing country Members favour  very strict disciplines with few exceptions and WT/COMTD/W/143/Rev.2 
Page 24  
 
  limited special and differential treatment, while  others seek broad exemptions from any new 
disciplines.   
(b) Status of the negotiations 
95. The work of the Negotiating Group on Rules has pr oceeded in three stages,  the first of which 
began in 2002 and which continued up to the Cancún Ministerial in September 2003.  It consisted of 
formal meetings at which formal submissions we re made by Members, identifying issues on which 
they wished to negotiate.  The second stage began after Cancún and established a process of informal 
plenary meetings, at which more detailed and speci fic "elaborated proposals" were discussed.  The 
third stage continues the formal and informal pl enary process, but has added, since early 2005, a 
series of bilateral and plurilatera l consultations convened by the Chairman of the Negotiating Group 
to discuss "third generation" precise proposals for specific changes to the text of the existing 
Agreement.  The Negotiating Group has also cr eated a Technical Group on issues related to 
anti-dumping questionnaires and verification, with a view to reducing the cost and increasing the 
predictability of investigations. 
96. Ministers at Hong Kong directed the Negotiating Group to intensify and accelerate the 
negotiating process in all areas of the mandate, on the basis of detailed textual proposals before the 
Group or yet to be submitted, and complete the proc ess of analyzing proposals by participants on the 
Anti-Dumping (AD) and SCM Agreements as soon as possible.  The Chairman of the Negotiating 
Group was also mandated to prepare consolidated texts of the AD and SCM Agreements that would 
be the basis for the final stage of the negotiations .  In his report to the TNC at its meeting of 
1 May 2006 (TN/RL/17), the Chairman reported that hi s intention remained to complete the analysis 
of proposals by June so as to be in a position, s hould appropriate conditions ex ist, to meet the target 
date of July 2006 to submit consolidated texts to the Group.      
(c) Specific issues of interest to developing countries 
97. Most of the proposals on anti-dumping have b een submitted by a group of Members known as 
the Friends of Anti-dumping Negotiations (FANs), wh ich includes a number of developing country 
Members.  Developing and developed Members have also submitted proposals individually on 
various aspects of anti-dumping and countervailing dut y measures.  The general orientation of the 
FANs' proposals is to make the rules on using anti- dumping measures stricter, both in respect of the 
substantive provisions (how dumping margins are calculated, and how injury and causation are established), and in respect of duty application and investigative procedures.  In addition, various 
Members are pursuing some of the implementati on and S&D issues pertaining to anti-dumping which 
were referred to the Negotiating Group.  On the ot her hand, certain proposals by developing country 
Members reflect concerns that anti-dumping rules are becoming more demanding and that many developing country administrators have difficulty implementing them because of their cost and/or 
complexity.  A final cluster of anti-dumping pro posals/issues with implications for developing 
countries concern transparency and due process in anti-dumping investigations.  On the one hand, 
certain developing country Members express conc erns over a lack of access to information in 
investigations to which their exporters are subject .  On the other, some developing country Members 
express concern over the increased costs and burdens of any new procedures or mechanisms.  Proponents on these issues, however, have stressed the importance that they  attach to a high and 
consistent standard of procedural  fairness and transparency on the part of any Member making use of 
the anti-dumping instrument.   
98. A relatively small number of proposals on horizontal subsidy disciplines under the SCM 
Agreement are under active discussion at present.  Mo st of these have to do with the rules on export 
subsidies, one has to do with the meaning of "withdr awal" of a subsidy, and one has to do with serious 
prejudice.  Only one of these proposals, on export credits, is sponsored by a developing country  WT/COMTD/W/143/Rev.2 
 Page 25 
 
 
  Member.  In other fora, including the Dedi cated Sessions of the Committee on Trade and 
Development, certain proposals have been tabled to exempt on a long-term basis certain developing 
countries from the SCM Agreement prohibition on e xport subsidies.  In addition, early in the 
negotiations, developed and devel oping country Members tabled pa pers referring to S&D under the 
SCM Agreement.  Developing country proposals di ffer on the question of exemptions from horizontal 
obligations under the Agreement, with some fa vouring the prolongation of such exemptions and 
others expressing concern about their implications for international competition.  Finally, certain 
papers tabled early in the negotiations propose enhanced immunity from countervailing measures for 
developing country exporters.   
99. The main proponents of new, sector-specific di sciplines on fisheries subsidies comprise a 
group called "Friends of Fish".  This group includ es a number of developing country Members.  For 
the developing country proponents, the main concer n is the artificial competitive advantage created by 
subsidies, which affect access to fish and contribut e to the depletion of the resource.  Most Members 
(developed as well as developing) have stressed the n eed for effective S&D as part of any fisheries 
subsidies package.  Of particular concern in this regard are small-scale, artisanal fisheries and any 
subsidies thereto, as well as payments that so me developing Members receive from foreign 
governments for access to the fisheri es in their waters.  Aquaculture is another area of considerable 
interest to many developing country Members, whic h seek to ensure that any new disciplines would 
not interfere with these activities.   
(d) Possible gains to developing countries 
100. An eventual clarification and improvement of any of the rules under negotiation will increase 
the predictability of the trading system to the be nefit of all Members.  Moreover, an appropriate 
balance of rights and obligations will permit de veloping countries to pursue their development 
objectives and at the same time guard against practices that have a negative impact on their trade.  
Another area where balance is crucial concerns trade-offs between the costs and administrative 
burdens of the contingency protecti on system and its capacity to ensure fairness and transparency.   
2. Regional Trade Agreements 
(a) Parameters of the de velopment dimension 
101. Negotiations on regional trade agreements (RTAs) aim to clarify and improve WTO 
disciplines and procedures governing these agreements , including in relation to their developmental 
aspects.  RTAs can foster economic growth and de velopment.  But such an outcome is dependent 
upon various factors, including net trade-creation,  an improved regulatory environment, enhanced 
investment flows and technology transfers.  These fact ors are also important in terms of the benefits 
that RTAs can bring to non-parties, as is the readin ess of members of RTAs to translate their mutual 
preferences into non-discriminatory trade liberalizat ion.  RTAs have become a significant element in 
the trade policy of virtually all WTO Members.  A key question is whether they are a building block to non-discrimination or a permanent feature of th e trading landscape.  Concern has been expressed 
that some RTAs reflect a defensive necessity aime d at maintaining access to larger markets, locking 
out competition from other MFN suppliers and locking in  investment.  If such trends are sustained and 
not counterbalanced by a successful outcome of the Doha Round, the contribution of an ever-growing 
number of overlapping RTAs to the economic pr ogress of both parties and non-parties could be 
negative. 
(b) Status of the negotiations 
102. The negotiations on RTA rules and procedures ha ve proceeded on parallel tracks, involving 
"systemic" and "transparency" issues.  In th e last two years, the Negotiating Group has made WT/COMTD/W/143/Rev.2 
Page 26  
 
  considerable progress in considering various elemen ts of the transparency question.  These include 
procedural questions such as the early announcement of RTAs and the timing of formal notifications.  Discussions have also focused on building a more tr ansparent and efficient RTA review process based 
on a factual presentation by the Secretariat and a stre amlined process for subsequent notifications.  At 
the 1 May 2006 meeting of the TNC, the Chairman of the Negotiating Group reported (TN/RL/17) 
that the Group's discussions had since March focu sed on a draft provisional decision establishing a 
Transparency Mechanism for RTAs, in line with the Hong Kong mandate.  While the draft text met 
most concerns of Members, different positions re mained as to whether the transparency process for 
agreements falling under the Enabling Clause s hould take place in the Committee on Trade and 
Development or in the Committee on Regional Tr ade Agreements.  In addition, the proposed 
extension of the Transparency Mechanism to other measures notified unde r paragraph 2 of the 
Enabling Clause had given rise to divergences between Members.   
103. Discussions on systemic issues
 have not made as much progress as those on transparency 
issues.  Submissions by participants have most notably focused on the clarification of certain GATT 
Article XXIV provisions, including the "substantia lly all trade" requirement and the length of 
transition periods.  Proposals have also addresse d the question of flexibilities for developing 
countries.  The Negotiating Group was instructed at Hong Kong to intensify negotiations, based on 
text proposals as soon as possible after the Conference, so as to arrive at appropriate outcomes by end 
2006. 
(c) Specific issues of interest to developing countries 
104. One of the issues of particular interest to so me developing countries is whether the proposed 
transparency mechanism should apply to Enabli ng Clause agreements.  One developing country 
submission calls for a reaffirmation of the right of developing countries to rely on the Enabling Clause 
to regulate South-South RTAs.  Some devel oping countries have opted to use the GATT 
Article XXIV provisions for South-South agreements .  Some developing count ries have also proposed 
additional flexibility in relation to the "substantially all" and "reasonable period of time" criteria, as 
well as on certain procedural aspects of the rules re garding notification, reporting, review and dispute 
settlement in this context.      
(d) Possible gains to developing countries 
105. It is generally accepted that a developmenta l rationale exists for allowing developing 
countries to engage in progressive asymmetric libera lization with selected partners.  However, if 
transition periods are too long or too many produc ts are excluded from coverage, potential gains from 
RTAs in terms of growth and de velopment will be foregone.  At th e same time it is important to 
ensure coherence both within the regional arrange ment, as well as with the broader goals of the 
multilateral trading system.  Another area of benefit relates to transparency, which serves the interests 
of all WTO Members, in particular those lacking information resources of their own.  If Members retain the right to accord more fa vourable trade conditions to some partners that are not extended to 
all Members, then equally they retain the obliga tion to keep other Members well informed of such 
preferences.  Since practically all WTO Members ar e engaged, or are engaging, in multiple RTAs, the 
need for adequate transparency has beco me systemic in a fundamental sense.    WT/COMTD/W/143/Rev.2 
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  H. TRADE -RELATED ASPECTS OF INTELLECTUAL PROPERTY RIGHTS9 
1. Parameters of the Development Dimension 
106. The negotiations regarding the establishment of  a multilateral system of notification and 
registration of geographical indications for wines an d spirits (hereinafter "multilateral system") form 
an integral part of the wider mandate of the Doha  Development Agenda.  In keeping with the mandate 
contained in Article 23.4 of the TRIPS Agreement, paragraph 18 of the Doha Declaration states that 
"[w]ith a view to completing the work started in the Council for Trade-Related Aspects of Intellectual 
Property Rights (Council for TRIPS) on the implementa tion of Article 23.4, we agree to negotiate the 
establishment of a multilateral system of notificatio n and registration of geographical indications for 
wines and spirits by the Fifth Session of the Ministerial Conference". 
2. Status of the Negotiations 
107. The negotiations are being conducted by the Special Session of the Council for TRIPS.  
Initially foreseen as an "early harvest" of the Do ha Round, the negotiations are presently being 
pursued in accordance with the 1 August 2004 Decisi on, which reaffirmed Members' commitment to 
progress in all of areas of the negotiations in line with the Doha mandates, and the Hong Kong 
Ministerial Declaration, in which Ministers agreed to  intensify negotiations in order to complete them 
within the overall time-frame for the conclusion of the negotiations that were foreseen in the Doha 
Ministerial Declaration.   
108. Since 2002, a considerable amount of work h as been done, involving the tabling of position 
papers and proposals by delegations.  The various  points and issues raised by delegations up to 
May 2003 have been reflected in a Secretariat compilation (TN/IP/W/7/Rev.1 and Corr.1).  These 
discussions were structured around four main categori es of issues, namely:  the definition of the term 
"geographical indications" and eligib ility of geographical indications for inclusion in the system;  the 
purpose of the notification and registration system;  what was meant by a "multilateral system of notification and registration";  and the issue of pa rticipation.  Within these discussions, several points 
and issues were raised on the costs and benefits of th e system to all Members, in particular developing 
countries, and to various stakeholders, includi ng those in developing countries.  While some 
developing country Members have expressed the vi ew that the proposal made by the European 
Communities, whereby, in the absence of reservati ons, registrations of geogr aphical indications would 
create legal effects that included presumptions, made a genuine attempt at meeting the requirements of Article 23.4 of the TRIPS Agreement, there are other developing countries that have sponsored or 
supported the approach of the "Joint Proposal" gro up of Members for meeting the requirements of the 
mandate, whereby participating Members would commit themselves to consult a database of 
registered geographical indications when taking na tional decisions on the protection of geographical 
indications. 
109. There are two major stumbling blocks.  The first is the extent to which the registration of a 
geographical indication, within the multila teral system, should create legal effects  at the national 
level.  The second relates to participation, that is  to say the question of whether the legal effects under 
the system should apply to all WTO Members or to those opting to participate in the system.  In addition to these two key issues, there are other poi nts such as administrative and other burdens of a 
multilateral system, especially on developing and least-developed countr ies, and whether the 
proposals on the table would modify the balance of rights and obligations in the TRIPS Agreement and respect the principle of territoriality. 
                                                     
 
9 The work undertaken by the Co uncil for TRIPS on the relations hip between the TRIPS Agreement 
and the Convention on Biological Diversity (CBD) pursuant to paragraph 19 of the Doha Ministerial 
Declaration is treated in the section on "Implementation-Related Issues and Concerns".    WT/COMTD/W/143/Rev.2 
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  3. Specific Issues of Interest to Developing Countries 
110. Those developing countries that have been ac tive in the work of the Special Session have 
expressed diverging views about the merits of the proposals on the table for a multilateral system, including on the implications for their developm ent.  A significant number of developing countries 
have yet to take a position and are still studying the va rious proposals, including as they relate to their 
own development.  An issue on which a number of  developing countries have expressed particular 
interest is that of participation.  Some of them expressed the view that the system should be voluntary 
and not have legal effects for countries opting not to participate in it.  
111. Discussion of S&D treatment has been relatively lim ited so far.  The point has been made that 
the need for it would depend, to a significant exte nt, on the nature and complexity of the basic 
notification and registration system to be chosen – which still remains unclear.  Nonetheless, there has 
been some discussion of this issue, for example on the extent to which special and differential 
treatment in the payment of registration fees might be  envisaged for developing and LDC participants.  
It has also been suggested that  the participation of developing countries in the system could be 
facilitated through technical assistance.  A suggest ion has been made that a transition period for 
developing countries could be envisaged, so as to  give them enough time to create a sound database 
and to sort out domestic legal and practical issu es related to a better protection of geographical 
indications.  The point has also been made that al lowance would have to be made for the transition 
period of LDCs under the TRIPS Agreement. 
4. Possible Gains for Developing Countries 
112. The question of possible gains to developing c ountries has been the subject of some debate 
among the participants in the negotiations.  Some ho ld the view that a multilateral system's ability to 
alleviate the costs for all producers in seeking prot ection worldwide by allowing them to gain legal 
standing in third countries via a centralised pro cedure would help developing country producers in 
particular, who have less resources to invest in  asserting such protection internationally.  Others 
consider that the system would impose considerab le administrative burde n on developing countries, 
which would more than offset any benefits they mi ght obtain, especially as the mandate is limited to 
wines and spirits, of which most developing countries are not exporters. 
113. In paragraph 6 of the Doha Declaration on the TRIPS Agreement and Public Health, 
Ministers recognized that WTO Members with in sufficient or no manufacturing capacities in the 
pharmaceutical sector could face difficulties in maki ng effective use of compulsory licensing under 
the TRIPS Agreement.  Following their instruction to find an expeditious solution to this problem, the 
General Council on 30 August 2003 adopted the Decisi on on the "Implementation of Paragraph 6 of 
the Doha Declaration on the TRIPS Agreement and P ublic Health", which contains three waivers to 
paragraphs (f) and (h) of Article 31 of the TRIPS Ag reement with respect to pharmaceutical products.  
Pursuant to paragraph 11 of this Decision, th e Council for TRIPS prepared an amendment of the 
TRIPS Agreement replacing the waiver provisi ons.  The General Council on 6 December 2005 
adopted the Protocol amending the TRIPS Ag reement and submitted it to WTO Members for 
acceptance by 1 December 2007.  The Protocol will en ter into force upon acceptance by two thirds of 
the Members.  In the meantime, the waiver provisions  of the August 2003 Decision remain in force.    
I. T
RADE AND ENVIRONMENT  
1. Parameters of the Development Dimension 
114. The negotiations under paragraph 31 of the Doha  Declaration, which are undertaken with a 
view to enhancing the mutual supportiveness of trade and environment, and the negotiations under  WT/COMTD/W/143/Rev.2 
 Page 29 
 
 
  paragraph 28 of the Doha Decl aration on fisheries subsidies10, represent the "environmental package" 
of the current negotiations and are an integral pa rt of the wider mandate of the Doha Development 
Agenda.  The mandate contained in paragraph 31 h as three main components:  paragraph 31(i) sets 
out the scope of work as far as the relationship between existing WTO rules and specific trade obligations set out in multilateral e nvironmental agreements (MEAs) is concerned.  It states that the 
negotiations shall be limited in scope to the appli cability of such existing WTO rules as among parties 
to the MEA in question, and that they shall not prejudice the WTO rights of any Member that is not a party to the MEA in question;  paragraph 31(ii)  mandates negotiations on procedures for regular 
information exchange between MEA Secretariats and the relevant WTO committees, and the criteria 
for the granting of observer status;  while para graph 31(iii) mandates negotiations aimed at the 
reduction or, as appropriate, elimination of tariff and non-tariff barriers to environmental goods and 
services. 
2. Status of the Negotiations 
115. Since the commencement of the negotiations, the Committee on Trade and Environment in 
Special Session (CTESS) has held several formal and informal meetings, including a series of 
information exchange sessions and technical discussions under paragraph 31(iii).  A significant 
number of proposals have been submitted, in par ticular under paragraphs 31(i) and (iii) by both 
developed and developing country Members (TN/TE/INF/4/Rev.9).   
116. With respect to paragraph 31(i), the C TESS first attempted to develop a common 
understanding of the negotiating manda te.  Various terms c ontained in the mandate, such as "specific 
trade obligation" (STO) and "multilateral environm ental agreement" (MEA), were examined by 
Members.  In parallel, discussions were held on proposals relating to certain governance principles 
aimed at ensuring mutual supportiveness of WTO- MEA regimes as a potential outcome for the 
negotiations.  A process of national experience sh aring was also initiated, in which Members, 
including some developing countries, discussed th eir experience in the negotiation and domestic 
implementation of STOs in MEAs.  With respect to  paragraph 31(ii), Members have explored avenues 
for enhancing information exchange and coope ration between the WTO and MEAs.  In the 
negotiations, some delegations have  pointed to synergies between paragraphs 31(i) and (ii) of the 
mandate.  Developing countries have  participated actively in the discussions under paragraphs 31(i) 
and (ii) with a number of them tabling submissions  to clarify their positions in this area of the 
negotiations.   
117. With respect to paragraph 31(iii), discussions in the CTESS have focused mainly on 
clarifying the concept of "environmental good".  In this context, different approaches to the 
negotiations have been discussed (TN/TE/W/63).  The first approach proposes that the Committee 
establishes a list of environmental goods for liberaliz ation.  Nine lists of environmental goods have 
been tabled by Members.  Alternative approa ches have also been considered, namely the 
"environmental project approach", which proposes to  grant concessions to environmental goods and 
services required in the context of environmental projects approved by a Designated National 
Authority (DNA), for the duration of the project;  a nd the "integrated approach", which suggests that 
the CTESS identify categories of projects and envi ronmental goods that c ould benefit from tariff 
reduction or elimination for the peri od of implementation of the project in which they are used.  More 
recently, Members in the CTESS have engaged in t echnical work to further examine the products, 
systems or projects that could potentially fall with in the scope of the mandate.  As part of this 
exercise, Members have exchanged views on the pot ential environmental and developmental benefits 
of a broad range of products put forward under diff erent categories.  Proposals have also been made 
on modalities for environmental goods negotiations including, inter alia , provisions regarding special 
and differential treatment for developing countri es and the elimination of non-tariff barriers.   
                                                     
 
10 See the section on "Rules". WT/COMTD/W/143/Rev.2 
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  118. At the Hong Kong Ministerial Conference, Ministers instructed Members to intensify the 
negotiations, without prejudging their outcome, on al l parts of paragraph 31 of the Doha Declaration 
to fulfil the mandate.  Members were also instru cted to complete the work expeditiously under 
paragraph 31(iii).  The Chairman of the CTESS reported at the TNC m eeting of 1 May 2006 
(TN/TE/15) on the work undertaken under paragraph 31(iii) since Hong Kong.  He noted a good level 
of engagement on the part of delegations in the discussions, but observed that a number of technical 
issues needed to be addressed.  While more attention had been given to the work under 
paragraph 31(iii) in the early part of 2006, he noted that much work still remained to be done by 
Members to fulfil the mandate in paragraphs 31(i) and 31(ii).    
3. Specific Issues of Interest to Developing Countries 
119. While positions and interests naturally vary am ong developing countries, some specific issues 
of interest to them can be discerned.  Many deve loping countries feel that  trade liberalization of 
environmental goods should offer opportunities for th em to increase exports of goods in which they 
have a competitive advantage.  On their part, proponents of lists have generally underlined the 
importance they attach to achieving a "balanced lis t" of environmental goods, i.e. a list of products 
which takes into account areas of trade interest for developing countries.   
120. Some Members have observed that the export inte rests of developing countries lie mainly in 
natural resource-based products.  Hence, the defi nition of environmental goods should cover such 
products.  Furthermore, some concerns have been expressed regarding the existing asymmetries in production capacities, trading volumes and tariff st ructures for environmental goods.  A number of 
developing countries have questioned the benefits for them of liberalizing trade in environmental 
goods, commenting that most environmental goods propo sed thus far have multiple uses or consist of 
"high-tech" or "end-of-pipe" products of interest primarily to developed countries.  Other issues of 
concern to developing countries include the need to  facilitate technology transfer to the developing 
and least-developed Members and the manner in whic h non-tariff barriers as well as the principle of 
special and differential treatment will be  taken into account in the negotiations. 
4. Possible Gains for Developing Countries 
121. There has been little substantive debate among pa rticipants in the negotiations on the specific 
gains that may accrue to developing countries from th e negotiations under paragr aphs 31(i) and (ii) on 
the relationship between MEAs and the WTO.  As re gards paragraph 31(iii), some hold the view that 
liberalization of environmental goods and services can be beneficial to trade, environment and 
development.  According to them, the negotiations  could result in increased trade due to a reduction 
or elimination of tariffs and non-ta riffs barriers.  They also feel that there would be development gains 
because liberalization would assist developing count ries in obtaining the tools needed to address key 
environmental priorities.  Others, however, question the possible environmental benefits of some of 
the goods proposed for liberalization.  These Member s feel that the development gains would be 
enhanced only if goods which have an unam biguous environmental use are liberalized.   
122. Some developing country Members have also ar gued for the retention of a certain level of 
policy space in determining which goods may he lp them meet their nationally prioritized 
environmental objectives.  In this context, they have also stressed that their national interests in these 
negotiations are mainly directed towards the bui lding-up and development of domestic production 
capacity in the provision of environmental goods and services.  This, in their view, would further 
contribute to their objective of achieving sustainable development.  WT/COMTD/W/143/Rev.2 
 Page 31 
 
 
  J. DISPUTE SETTLEMENT UNDERSTANDING  
1. Parameters of the Development Dimension  
123. The negotiations on dispute settlement aim to "agree on improvements and clarifications" of 
the Dispute Settlement Understanding (DSU).  Unde r paragraph 47 of the Doha Declaration, these 
negotiations are not to be treated as part of a si ngle undertaking.  A number of developing country 
Members highlighted in the early stages of the nego tiations the need to have  effective access to the 
dispute settlement procedures.  In this context, it w as stressed that clarifications or improvements to 
the DSU should not lead to any reduction in the access of developing country Members to dispute settlement procedures.  Although a number of developing country Memb ers have been active users of 
the dispute settlement procedures, others, in par ticular African and LDC Members, have had much 
more limited participation to date.  These Members highlighted in their proposals the significant 
constraints, including resource constraints, they f ace in having recourse to the complex and expensive 
(if outside counsel is used) procedures of the DSU. 
124. A number of proposals presented by developing c ountries have, therefore, aimed at enhancing 
the ability of developing country Members to partic ipate effectively in dispute settlement proceedings 
and to ensure that specific developing country inter ests are adequately taken in to account at all stages 
of the proceedings.  This has been reflected in a variety of forms, including proposals for additional 
flexibility to be provided to developing countr y Members in respect of timeframes, or the 
enhancement of existing provisions for S&D.  A num ber of developing country Members have also 
put forward proposals intended to reinforce the ef fectiveness of procedures at the implementation 
phase, sometimes, but not exclusively, in the form of  S&D.  Proposals have also been made to assist 
developing countries overcome financial and res ource constraints, including through enhanced 
technical assistance.   
125. The interests of developing country Members in the DSU negotiations are, however, not 
limited to S&D, or indeed to developmental aspects  only.  The improvement and clarification of the 
dispute settlement mechanism has an institutional di mension that goes beyond th e particular interests 
of developed or developing countries.  A stable, predictable and effective multilateral system to 
resolve trade disputes benefits the whole WTO membership.  Many proposals put forward by 
developing country Members therefore address system ic concerns and are not intended to secure any 
form of S&D.  Some of these proposals may reflec t concerns which are of special significance to 
developing country Members as users of the di spute settlement mechanism (for example, the 
enhancement of third party rights).  Others, however, also reflect more general systemic concerns not 
intrinsically tied to a developmental dimension.   
126. Since February 2004, the work of the Special  Session of the Dispute Settlement Body has 
been  based primarily on efforts by Members or groups of Members to develop areas of convergence, 
building on the work to date.  A number of issues recently discussed are of interest to developing 
country Members, without being development-related per se .  Indeed, a significant part of recent 
discussions has been based on informal contributions presented jointly by a group of developed and 
developing country Members.  Several delegations , including developing country proponents, have 
indicated that they were working on issues relating specifically to developing country participation.  
However, this work is still ongoing a nd has not yet led to the presentati on of revised or improved text.  
Bearing this consideration in mind, specific issu es of interest to developing country Members are 
identified below.  
2. Status of the Negotiations  
127. In the initial phases of the negotiations, a wide range of proposals was put forward, covering 
virtually every provision of the DSU, and reflecting very diverse levels of ambition.  Many of these WT/COMTD/W/143/Rev.2 
Page 32  
 
  proposals were submitted by developing countries or  groups of developing countries, including some 
Members that have not been active users of the dispute settlement system so far.   
128. Over the past two years, the work of the Special Session has been primarily based on 
Member-driven efforts to develop areas of converg ence based on work in the previous phases of the 
negotiations.  In this context, a number of revi sed contributions, mostly informal, have been put 
forward by various Members or groups of Memb ers, including developing country Members.  
Specifically, revised contributions have been discu ssed in respect of additional guidance to WTO 
adjudicative bodies, panel composition, post-retaliati on, remand, sequencing, strictly confidential 
information, third-party rights, time-savings and tran sparency (open meetings).  In this phase of the 
negotiations, no revised proposal relating specifically to S&D or developing country participation in 
dispute settlement has yet been put forward.   
129. The Hong Kong Ministerial Declaration took  note of the progress made in the DSU 
negotiations as reflected in the report by the Ch airman of the Special Session of the Dispute 
Settlement Body to the TNC and directed the Speci al Session to continue to work towards a rapid 
conclusion of the negotiations. 
130. Since then, the work of the Special Session has continued to be based on a "bottom-up" 
approach.  In February 2006, in light of the dir ection given by Ministers to work towards "a rapid 
conclusion of the negotiations", the Chairman enc ouraged those delegations that were currently 
engaged in informal work towards revised contributi ons to come forward with these rapidly, so that 
the Special Session could be fully engaged in text -based discussion by the summer, with a view to 
finalizing on that basis an agreed text as rapidly as possible (TN/DS/15).  On that basis, an improved 
draft legal text has been presented in respect of most  of the issues that had b een discussed recently.  In 
May 2006, the Chairman reported to the TNC that  some delegations also confirmed that they 
continued to work, in consultation with other Members, on issues relating to developing country 
participation, with a view to submitting revised contributions as early as possible (TN/DS/16). 
3. Specific Issues of Interest to Developing Countries 
131. A number of developing country Members have  presented proposals, spanning all phases of 
the dispute settlement procedures.  These proposals re flect a range of concerns that include, but are 
not limited to developmental consid erations.  Given the systemic dimension of the clarification and 
improvement of the DSU, virtually all issues under discussion could be said to be of relevance to 
developing countries as Members of the WTO and potentia l users of the DSU.  Only issues in respect 
of which specific attention has been given to deve loping country interests are identified below.  For 
the sake of clarity, the i ssues are identified under four broad headings corresponding to the four main 
stages of dispute settlement proceedings under the DSU.
11 
(a) Consultations 
• Provide adequate time for consultations, especia lly for developing country respondents.   
• Ensuring adequate opportunity for non-dispu ting Members to join the consultations. 
• Improving the existing S&D provision relating to the attention to be given to developing 
country Members' particular interests during consultations.  
                                                      
11 These issues are identified on the basis of all submissions put forward since the beginning of the 
negotiations and no attempt is made to assess the importance of these issues for developing countries at this 
stage of the negotiations.  WT/COMTD/W/143/Rev.2 
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  (b) Panel proceedings 
• Preserving adequate timeframes at all stages of the proceeding to allow developing 
country Members to prepare and present their arguments, especially as respondents.   
• Ensuring adequate representation of devel oping country nationals as panelists in cases 
involving developing country Members. 
• Strengthening of third-party rights.   
• Strengthening existing S&D provisions and ensuring that developmental aspects are 
adequately taken into account in the proceedings. 
• Some developing country Members have expressed strong views on issues of so-called 
"transparency", relating to the opening WTO dispute settlement procedures more widely 
to the public, raising concerns as to the poten tial implications of such opening.  Recent 
discussions have focused specifically on the proposed opening of panel meetings and 
Appellate Body hearings for the public to observe.   
(c) Appellate review 
• Strengthening of third-party rights.  
• Transparency (similar concerns as at the panel stage). 
(d) Implementation 
• Improving the effectiveness of remedies, in  particular where a developing country 
Member has prevailed against a developed country Member.   
• Enhancing the opportunities for effective co mpensation or retaliation in favour of 
developing country Members. 
• Ensuring that developing country Members are afforded sufficient time for the 
implementation of adverse rulings. 
• Enhancing the means for developing country  Members to overcome the financial and 
human resource challenges posed by participation in WTO dispute settlement 
proceedings, through enhanced technical assistance, the creation of a "fund" for 
developing country Members, or the award of litigation costs to developing country 
Members prevailing in a case. 
4. Possible Gains for Developing Countries 
132. The institution of a strengthened multilateral rules-based dispute settlement mechanism has 
been heralded as one of the major achievements of  the Uruguay Round, and the DSU is generally 
acknowledged to have served WTO Members well so far.  Indeed, more than 80 WTO Members (of 
which 65 are developing countries) have participated, either as party or as third-party, in at least one 
dispute to date.  Since the dispute settlement procedures are in essence an instrument for the 
protection of Members' substantive rights and obl igations under the WTO Agreements, it might be 
said that the immediate objective of improving and clarifying procedures under the DSU ultimately 
serves the long-term goal of enhancing the ability of WTO Members, in particular developing country 
Members, to fully benefit from the trade opport unities they have negotiated in the WTO.    
133. The main benefits of improvements and clarifica tions to the DSU could be expected to come 
in the form of institutional strengthening of the mu ltilateral trading system and enhanced capacity for 
all Members to protect their interests in the WTO.  To the extent that developing country Members, 
especially smaller economies with limited political powe r to influence the behaviour of larger trading 
partners, may generally have more difficulty in  defending their interests effectively, such WT/COMTD/W/143/Rev.2 
Page 34  
 
  enhancements would especially benefit them.  In this perspective, any improvement that would 
enhance the effectiveness of the procedures and thus  facilitate a prompt and effective resolution of 
disputes, has the potential to benefit especially developing country users.  A number of such procedural improvements are under consideration, th at may not have any particular developmental 
dimension, but that would also, if adopted, bene fit developing country Members as users of the 
system (for example, the enhancement of third-part y rights, the establishment of remand authority, the 
clarification of "sequencing" between compliance and retaliation procedures or the elaboration of 
procedures to address "post-retaliation" situations). 
134. Interests depend, in part, on the particular positi on a Member finds itself in a given dispute:  
as complainants, Members are likely to want to obtain prompt and effective relief from dispute 
settlement, while as respondents, they will require gu arantees that they will be in a position to defend 
their interests adequately and be allowed suffici ent time to implement any adverse rulings.  An 
important dimension of the DSU ne gotiations is thus that all Memb ers, developing countries included, 
have to negotiate in consideration of the fact that th ey may, in a given case, be either in the position of 
complainant or in the position of defendant.  These pressures can be exacerbated where developing 
country Members are concerned:  as a complainant, a developing country Member facing an 
inconsistent measure maintained by another Member may have more  limited capacity to withstand 
any adverse effects for a prolonged period, while, as a respondent, a developing country Member with 
significant resource constraints will be especially sens itive to the need for the procedures to afford it 
sufficient time and means to defend itself in the mo st adequate manner.  In these circumstances, an 
optimal outcome, including for developing country Memb ers, is likely to be the result of a balancing 
exercise between different interests, including in situations where legitima te developing country 
interests might exist on either side of the dispute. 
135. Proposals to address the resource constraints hi ghlighted by a number of developing country 
Members, in the form of enhanced  technical assistance or financial support, are of a slightly distinct 
nature, in that they do not directly affect procedur al steps in the dispute, but focus rather on ensuring 
that developing country Members have effective access to the pr ocedures in the first place.  
Improvements designed to address these resource constr aints could facilitate actual recourse to the 
procedures by developing country Members who might  otherwise feel unable to take advantage of 
them.  In cases where such improvements would benef it defendant developing country Members, they 
could enhance the ability of these Members to effectively defend their rights under the WTO 
agreements with respect to measures they themselves have taken.  
III. CONCLUDING REMARKS 
136. In an effort to assist Members with their discussion concerning paragraph 51 of the Doha 
Ministerial Declaration, this document identifies th e key developmental aspects raised in the various 
negotiating bodies.  While the issues raised in the pa per vary according to subject area, it is clear that 
developing countries have serious and pressing interests which they wish to see addressed in the 
Round.  These interests also change according to the subject area under discussion and reflect the very 
diverse interests of developing countries overall.  
137. Two conclusions stem from this document:  first, development issues suffuse all areas being 
negotiated, including in the market access and rule -making aspects of the negotiations.  Second, a 
large number of proposals already on the table ar e aimed at addressing the development aspects of 
each subject.  The possible gains to developing coun tries would largely depend on the extent to which 
these proposals are accepted by other Members and th e manner in which they are operationalized after 
being adopted.  It is hoped that this paper he lps Members in their discussions and negotiations 
towards a conclusion of the Doha Development Round. 
__________