WORLD TRADE  
ORGANIZATION   
WT/L/847 
19 December 2011 
 (11-6687) 
  
  
 
PREFERENTIAL TREATM ENT TO SERVICES AND 
SERVICE SUPPLIERS OF LEAST-DEVELOPED COUNTRIES 
 
Decision of 17 December 2011 
 
 
The Ministerial Conference, 
 Having regard to  paragraphs 1, 3 and 4 of Article  IX of the Marrakesh Agreement 
Establishing the World Trade Organization (the “W TO Agreement”), paragr aph 2 of the Annex on 
Article II Exemptions of the General Agreemen t on Trade in Services (the “GATS”); and the 
Decision-making Procedures Under Articles IX and XII of the WTO Agreement agreed by the 
General Council (WT/L/93); 
 Considering  the 1979 Decision on Differential and Mo re Favourable Treatment, Reciprocity 
and Fuller Participation of Developing Countries,  the 1994 Decision on Measures in Favour of Least-
Developed Countries, and the 1999 Decision on Preferential Tariff Treatment for Least-Developed 
Countries, and without prejudice to the rights of Members to continue to act pursuant to the provisions 
contained in those Decisions;  
Noting that the WTO Agreement recognises  the need for “positive e fforts designed to ensure 
that developing countries, especially the least deve loped among them, secure a share in the growth in 
international trade commensurate with the needs of their economic development”;  
 
Confirming  the importance of trade in services for economic growth and development; 
 Noting  that Article IV:3 of the GATS provides that  special priority shall be given to least-
developed country Members inter alia  in respect of the liberalization of market access in sectors and 
modes of supply of export interest to them; 
 
Acknowledging  the serious difficulty of the least-devel oped countries in view of their special 
economic situation and their developm ent, trade and financial needs; 
 
Determining  that this serious difficulty is an excep tional circumstance that prevents least-
developed countries from securing an adequate shar e in the growth of world trade in services;  
 Affirming  that a waiver from the obligations impos ed under paragraph 1 of Article II of the 
GATS to enable Members to provide preferential tr eatment to services and service suppliers of least-
developed countries without according the same treatm ent to like services and service suppliers of all 
other Members will constitute a positive effort toward s facilitating the increased participation of least-
developed countries in trade in services;  
Noting that, in light of the foregoing, least-developed countries are confronted with 
exceptional circumstances justifying a waiver from paragraph 1 of Article II of the GATS; 
 WT/L/847 
Page 2  
 
  Being mindful of  the 2003 Modalities for the Special Treatment for Least-Developed Country 
Members in the Negotiations on Trade in Services (TN/S/13) and Annex C of  the 2005 Hong Kong 
Ministerial Declaration; 
 Decides  as follows: 
 
1. Notwithstanding the provisions of Article  II:1 of the GATS, Members may provide 
preferential treatment to services and service suppliers of least-developed countries with respect to the 
application of measures described in Article XVI an d any other measures as may be annexed to this 
waiver, than to like services and service suppliers of other Members. Any such treatment shall be 
granted immediately and unconditionally to like ser vices and service suppliers of all least-developed 
country Members. Preferential treatment with respect  to the application of measures other than those 
described in Article XVI, is subject to approval by the Council for Trade in Services in accordance 
with its procedures and will be  annexed to this waiver. 
2. Each Member according preferential treatment  pursuant to this waiver shall submit a 
notification to the Council for Trade in Services.  The notification shall specify the preferential 
treatment made available, the sectors or sub-sect ors concerned and the period of time during which 
the Member is intending to maintain those preferen ces. A supplemental notification shall be made if 
the preferential treatment is subsequently modifi ed. The notifications shall be made before the 
preferential treatment is granted or modified. 
3. Each Member granting preferential treatment pursuant to this waiver shall, upon request, 
promptly enter into consultations with any Member with respect to any difficulty or matter that may 
arise as a result of such treatment. Where a Member considers that any benefit accruing to it under the 
GATS may be or is being impaired unduly as a resu lt of such treatment, the consultations shall 
examine the possibility of action for a satisfactory adjustment of the matter. 
4. Any preferential treatment accorded pursuant to th is Waiver shall be designed to promote the 
trade of least-developed countries in those sectors and modes of supply that are of particular export 
interest to the least-developed countries and not to raise barriers or create undue difficulties for the trade of any other Member. Such preferential treat ment shall not constitute an impediment to the 
reduction or elimination of market access barriers on a most-favoured-nation basis. 
5. For the purpose of preferential treatment grante d pursuant to paragraph 1, a service supplier 
of a least-developed country  is: 
(a) a natural person of a least-developed country;  or 
(b) a juridical person which is either: 
(i) constituted or otherwise organized under the law of a least-developed country 
and, if it is owned or controlled by natural persons of a non-least-developed 
country Member or juridical persons  constituted or otherwise organized 
under the law of a non-least-developed country Member, is engaged in 
substantive business operations in the territory of any least-developed country;  or 
(ii) in the case of the supply of a service through commercial presence, owned or 
controlled by: 
1. natural persons of least -developed countries;  or  WT/L/847 
 Page 3 
 
 
  2. juridical persons of least-developed countries identified under 
subparagraph (i). 
6. In accordance with the provisions of paragraph 4 of Article IX of the WTO Agreement, the 
General Council shall review annually whether the exceptional circumstances justifying the Waiver 
still exist and whether the terms and conditions attached to the Waiver have been met. 
7. This Waiver shall terminate upon the expiration of a period of 15 years from the date of its 
adoption. 
8. This Waiver shall apply to preferential treatme nt granted to services and service suppliers of 
least-developed countries designated as such by the United Nations. Notwithstanding the provisions 
of paragraph 7 above, this Waiver shall terminate with respect to th e preferential treatment granted to 
services and service suppliers of any particular least-developed country when graduation of that 
country from the United Nations list of l east-developed countries becomes effective. 
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