WORLD TRADE  
ORGANIZATION  WT/COMTD/W/145 
1 December 2005 
 
 (05-5695) 
Committee on Trade and Development Original:   English 
  
RECLAIMING DEVELOPMENT  
IN THE WTO DOHA DEVELOPMENT ROUND 
 
Submission by Argentina, Brazil, India, I ndonesia, Namibia, Pakistan, the Philippines, 
 
South Africa and Venezuela to the Committee on Trade and Development  
 
 
 The following communication, dated 28 November 2005, is being circulated at the request of 
the above delegations.  
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1. The recent proposals of some major developed countries have attempted to sow division 
among developing countries, re-interpret the framew ork and trajectory of the negotiations and, in a 
self-serving manner, narrow, limit and - ultimately  - undermine the developmental objectives of the 
Doha Development Agenda.  It is thus timely to  reclaim the developmental objectives and trajectory 
of the negotiations. 
development should be at the heart of the DDA … 
 
2. We recall paragraph 2 of the Doha Declaration:  
"International trade can play a major role  in the promotion of economic development 
and the alleviation of poverty.  We recogni ze the need for all our peoples to benefit 
from the increased opportunities and welfa re gains that the multilateral trading 
system generates.  The majority of WTO Me mbers are developing countries.  We seek 
to place their needs and interests at the he art of the Work Programme adopted in this 
Declaration.  Recalling the Preamble to th e Marrakech Agreement, we shall continue 
to make positive efforts designed to ensure that developing countries, and especially 
the least-developed among them, secure a share in the growth of world trade 
commensurate with the needs of their ec onomic development.  In this context, 
enhanced market access, balanced rules, and well targeted, sustainably financed 
technical assistance and capacity-building programmes have important roles to play." 
 
3. Placing development at the center of the Round should be understood along several integrated 
dimensions.  Development is not just an adjunc t to the global economy but an essential stimulus for 
sustained global economic growth.  The key to sust ained global growth lies in unlocking the growth 
potential of developing countries.  To achieve this, developing countries must pursue economic 
development and industrialization in sectors where they possess comparative advantage.  The strategic 
objective for the negotiations is thus for devel oped countries to undergo structural adjustment by 
reducing a range of protective and support measures in inefficient sectors in their economies.  Such 
adjustment will boost investment in the agricultural sector of developing economies, promote industrialization, development and trade and pr ovide much needed impetus to global growth. WT/COMTD/W/145 
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 4. An early conclusion of the current round of the Doha negotiations, consistent with the 
mandate agreed in Doha, would deliver the best c ontext for this outcome.  More open and undistorted 
international trade would make a positive contri bution to global economic growth, and create an 
environment in which developing economies could dive rsify their exports by d estination and in higher 
value added production. 
agriculture is the central issue … 
 
5. A development round requires the removal of trade distortions in international trade rules that 
inhibit the export growth of developing countries.  The largest structural distortion in international 
trade occurs in agriculture through the combina tion of high tariffs, trade distorting domestic support 
and export subsidies that protect inefficient fa rmers in developed countries, principally, the 
European Union, and the US.  Taken together, th ese measures frustrate the development prospects of 
many developing countries.  Removing these anti-de velopment measures is a core objective of the 
DDA as it will lead to the expansion of developing c ountry exports and their meaningful integration 
into the global economy.  It is for this reason that agriculture is the central issue of the Doha Round.  
6. Two thirds of all poor people in developing countries live and work in the agricultural sector, 
depending on agriculture for their livelihoods. in c ontrast agriculture accounts for less than 5 per cent 
of output and employment in the EU and the US.  For some developing countries as in the case of the West African cotton producers of Mali, Benin, Chad and Burkina Faso, high subsidies for rich 
farmers in developed countries are responsible for the devastation of the livelihoods of millions of 
poor farmers.  For many other developing countr ies where agricultural production remains largely 
subsistence based the need to ensure that WTO disciplines are strengthened so as to enable these 
developing countries to meet their food and livel ihood security, and rural development needs is 
paramount.  
7. The Uruguay Round (UR) brought agricultural policies, and trade in agriculture, under 
GATT/WTO disciplines for the first time. however, the new UR Agreement on agriculture created 
minimal market opening and failed to ensure that the main subsidizes; the EU, US, and other OECD 
countries, reduced their extremely high levels of fa rm subsidies.  These farm subsidies of the main 
subsidizers did not decrease substantially even afte r the Agreement on Agriculture came into force in 
1995.  Ironically, farm support actually increased in so me developed countries.  In sharp contrast both 
developed and developing countries have been liberalizing their mark ets in the industrial sector for 
over 50 years as a result of over eight rounds of GATT negotiations. 
8. It is for these reasons that agricultural protecti on in developed countries must bear the greatest 
burden of adjustment in this Round.  
contributions to NAMA should be commensurate with level of development… 
 
9. Turning to the negotiations on non-agricultura l market access (NAMA) , we recognize that 
this Round should increase liberalization and foster  positive adjustments in all countries, developed 
and developing, providing genuine market access for all.   In addition, whilst recognizing the efforts of 
many developing countries in making autonomous liberalization commitments, this Round provides 
an opportunity to increase the level of bindings for all WTO Members thus creating a more inclusive and certain trading system.   
10. However, due recognition must be given to th e enormous imbalances in the global trading 
system reflected in the inequitable distribution of the gains from globalization and the continued 
protection in developed countries against products from developing countries.    WT/COMTD/W/145 
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 11. Developed countries have largely become highl y competitive in the industrial sector and will 
need to make relatively insignifican t adjustments in this Round.  However, many developed countries 
still maintain high tariffs, tariff peaks and tariff escalation on products of interest to developing 
countries.  In addition a range of non-tariff barri ers, including strenuous technical regulations and 
excessive anti-dumping measures, are frequently utilized by developed countries to disrupt 
developing country exports and potential to  export their products to these markets.  
12. The bulk of developing countries on the other hand, whilst having increased their share of 
world trade in manufactures in the past two decades,  continue to reform and industrialize their 
economies, with their industrial sectors still occupying a significant part of their labour intensive employment and output.  Whilst many developing countries have continued to undertake unilateral 
liberalization beyond their WTO Uruguay Round co mmitments and reform their industrial sectors, a 
significant part of their production and employ ment remain in sensitive sectors, and further 
liberalization of these sensitive sectors would have to  be preceded by carefully managed adjustment 
policies. 
13. Thus, the modalities for liberalization in NAMA must accomplish two things simultaneously:  
(i) ensure that the remaining high tariffs, tariff peaks and tariff escalation in developed countries are 
eliminated in this Round and;  (ii) ensure  sufficient flexibility to acco mmodate the sensitive sectors 
and adjustment needs of developing countries, to  create the conditions for further liberalization. 
14. Developing countries cannot be expected to pay for the much needed reforms in the 
agriculture sectors of developed countries (referred to  above), by overly ambitious requests of them in 
industrial tariffs that do not take into account the realities of their levels of  economic development and 
their adjustment needs.  Developing countries ar e prepared to make a contribution to the NAMA 
negotiations in this Round, provided that their con cessions will be commensurate with their levels of 
development in a full expression of the principle of special differential treatment.  In addition, the 
principle of less than full reciprocity, agreed to in the Doha Mandate needs to be adhered to.  
paragraph 8 flexibilities are an essential element… 
 
15. It is for these reasons that we argued that th e paragraph 8 flexibilities that all WTO Members 
negotiated and agreed to in the WTO July 2004 Fr amework Agreement is an essential element of the 
flexibilities required by developing countries to mana ge their adjustment processes.  We therefore 
oppose attempts being made to reinterpret this agreement by establishing further conditionalities on 
the use of paragraph 8 and thus change the balanc e of the agreement that was reached by all WTO 
Members in the July 2004 Framework Agreement.  We view the numbers currently contained within 
the brackets in paragraph 8 as constituting the minimum percentages required by developing 
countries.  We retain the right to adjust these nu mbers upwards to enable some of our economies to 
manage the adjustment of sensitive sectors and prev ent the social disruptio n caused by job losses and 
closure of enterprises that would result from further liberalization. 
16. In addition, we emphasize that paragraph 8 is a 'stand-alone' provision in the agreed NAMA 
framework and its position as such must be recognized  if negotiations are to move ahead.  Any move 
to link it, or use it as a trade-off with the tari ff reduction formula will create unnecessary difficulties in 
the negotiations.  The two issues are sep arate and should be treated as such.  
solutions need to be found for preference erosion… 
 17. Not all developing countries stand to gain fro m the DDA in the short to medium term.  A 
significant number of developing countries includi ng, small, weak and vulnerable countries and 
Least-Developed Countries (LDCs) will face significan t transitional costs, especially those countries 
that are preference dependant and will suffer signi ficant preference erosion.  The particular WT/COMTD/W/145 
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 development challenges of small, weak and vulnera ble countries need to be addressed in the Doha 
Round without creating a new category of deve loping countries and sowing division amongst 
developing countries.  In addition, creative and prog ressive solutions will need to be found to address 
the problem of preference erosion for preference depe ndant countries, without fu rther delaying market 
access for products from developing countries.  The EU proposal to delay liberalization in areas of its 
own sensitivity with the excuse of helping preferen ce dependant countries is a self-serving argument.  
an ambitious "aid for trade" package should be launched…   
 
18. WTO Members should launch an ambitious "aid for trade" package in Hong Kong to address 
the trade related capacity building needs of devel oping countries.  Such a package should include a 
commitment to strengthen the financial base for enha nced trade related capacity building that enables 
the most vulnerable WTO Members to meet international standards, to meet new WTO obligations (trade facilitation, for example), and to promote th eir efforts at diversification and enhancing their 
export competitiveness.  In addition, WTO Members s hould agree to create a grant aid fund to assist 
developing countries to manage the impact of preference erosion that would arise from the Doha 
Round. 
duty-free, quota-free market access for LDCs… 
 
19. For the Least-Developed Countries (LDCs), we support the need for a package of 
development measures to foster their integratio n into the world trading system and enhanced 
development.  In this regard, the package of five  prioritized LDC proposals is an important objective 
for Hong Kong.  In particular, we pledge to work for the provision of duty-free and quota-free market 
access for all LDCs, and we urge developed countries to make a firm commitment in this regard by 
the Hong Kong Ministerial Meeting.  Developing countri es in a position to do so are also encouraged 
to make efforts to open their market s to LDCs on a non-reciprocal basis. 
the greatest gains can be made for all in mode 4… 
 
20. Perhaps the greatest gains from the Doha Round can be made for both developed and 
developing countries from serious efforts to libera lize the temporary movement of natural persons 
(mode 4), from developing to deve loped member countries.  For example, one study reveals that an 
increase in developed countries' quotas on the inward  movement of temporary workers equivalent to 
3 per cent of their work forces would generate an estimated increase in world welfare of over 
$150 billion per annum.  To date however developed countries have been reluctant to make any 
significant commitments in the WTO on mode 4 relaxation of restrictions on temporary entry.  We urge developed countries to seize yet another opport unity to unlock the potential to increase global 
growth and the welfare of all countries. 
imbalanced rules need to be reviewed… 
 21. The Uruguay Round created a number of new tr ade rules, such as  the agreements on 
Anti-Dumping, TRIMS and TRIPS, that developing c ountries consider to be imbalanced, in favour of 
developed countries.  Developing countries have cal led for these agreements to be reviewed during 
the Doha Round.  For example, the TRIPS Agre ement has strengthened the rights of private 
ownership without providing equivale nt protection for the intellectual property rights of communities.  
Developing countries are a recognized repository of traditional knowledge that is also enhanced by 
their bio-diversity.  In the recent past attempts ha ve been made to misappropriate this knowledge for 
commercial gain, without providing a just reward to these communities.  Developing countries have therefore sought amendments in the TRIPS Agreemen t to prevent bio-piracy of biological material 
and to prevent misappropriation of traditional knowl edge.  In this regard, we call on the developed 
countries to consider proposals for new disciplines on disclosure of the source and country of origin  WT/COMTD/W/145 
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 of biological resources and traditiona l knowledge, and to secure prior informed consent and equitable 
benefit sharing. 
the EU has made insignificant offers to open its markets… 
 
22. The recent proposals of developed countries, including the EU's 28 October proposals, have 
made demands on developing countries to make commitments in the NAMA negotiations that are 
totally disproportionate.  The enormous burdens of adjustment that developing countries would have 
to bear in their industrial sectors bear no resemblanc e to the relatively insignificant adjustments that 
developed countries will need to make in this sector.  Developing countries are being called upon to 
reduce their tariffs from their applied rates with limited space to manage the adjustments in their 
sensitive labour intensive sectors.  In sharp contrast  the EU has made insignificant offers to open its 
markets in the agriculture negotia tions, with its call for additional flexibility for the bulk of its 
sensitive products, allowing it to close off the possi bility of any significant new market opening for 
agricultural products from developing countries.  
developed countries are seeking a round for free… 
 23. In addition, developed countries are not offering to make any significant cuts in their 
industrial sectors with their offer to reduce their tariffs by a co-efficient of 10 (using the Swiss 
formula).  This offer will not result in any deep  cuts in the high tariffs, tariff peaks and tariff 
escalation that developing countries called for in the Doha Mandate.  A la rge number of industrial 
products of developing countries can th us still be kept out of  developed country ma rkets.  The EU and 
other developed countries are thus seeking a round for free!  Developing countries are being called 
upon to bear the burden of any new market opening in this Round. 
24. The totally disproportionate demands the EU is making of developing countries in this 
Round, compared to its own offer to make much need ed reforms in its agricultural sector, threatens to 
create an imbalanced outcome in the Doha Round.  The outcome of these negotiations would thus be 
totally unfair and exacerbate the crises of legitimacy  of the WTO.  The EU proposals in agriculture 
and NAMA would thus result in an anti-developmen tal outcome with the hopes and aspirations of 
developing countries raised by the prospect of  a Doha Development Round becoming dimmer and 
dimmer. 
25. We urge the EU and other developed Members of  the WTO to ensure that their offers and 
demands made on other Members comply with the obj ectives set for this Round in paragraph 2 of the 
Doha Mandate (referred to above).  We for our part are committed to work for a genuine development 
outcome of the round that is fair and balanced and that will create new opportunities for all Members, 
developed and developing, to grow their economies and foster their development. 
 
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