WORLD TRADE  
ORGANIZATION  WT/COMTD/SE/W/20 
9 February 2006 
 (06-0562) 
Committee on Trade and Development 
Dedicated Session Original:   English 
 
 
 
WORK PROGRAMME ON SMALL ECONOMIES:   
AN ASSESSMENT OF THE PROGRESS TO DATE 
 
Antigua and Barbuda, Barbados, Bolivia , Cuba, Dominica, Dominican Republic,  
El Salvador, Fiji, Grenada, Guatemala,  Honduras, Jamaica, Mauritius, Mongolia,  
Nicaragua, Papua New Guinea, Paraguay, Solomon Islands, St. Kitts and Nevis,  
St. Lucia, St. Vincent and the Grenadines and Trinidad and Tobago  
 
 
 The following communication, dated 3 February 20 06, is being circulated at the request of the 
above delegations.  
_______________ 
  
M
ANDATES  
 
 The November 2001 Declaration of the 4th Ministerial Conference in Doha, Qatar , provides 
the mandate for negotiations on a range of subjects and other work, including the mandate to establish 
a work programme relating to the trade of small economies: 
 
Paragraph 35: 
"We agree to a work programme, under the auspi ces of the General Council, to examine 
issues relating to the trade of small economies.   The objective of this work is to frame 
responses to the trade-related issues identified for the fuller integration of small, vulnerable 
economies into the multilateral trading system, and not to create a sub-category of WTO 
Members.  The General Council sha ll review the work programme and make 
recommendations for action to the Fifth Session of the Ministerial Conference." 
 
 The General Council Decision of 1 August 2004  reaffirmed the mandate given at Doha by 
stating that:  
 
"The trade-related issues identified for the full er integration of small, vulnerable economies 
into the multilateral trading system, should also be addressed, without creating a sub-category of Members, as part of a work programme, as mandated in paragraph 35 of the 
Doha Ministerial Declaration."
1 
 
 The December 2005 Declaration of the 6th Ministerial Conference in Hong Kong, China , 
establishes:  
Paragraph 41: 
"We reaffirm our commitment to the Wo rk Programme on Small Economies and urge 
Members to adopt specific measures that would facilitate the fuller integration of small, 
                                                     
 
1 Paragraph 1(d) in the 1 August 2004 General Council Decision in document WT/L/579 WT/COMTD/SE/W/20 
Page 2 
 
 
  vulnerable economies into the mu ltilateral trading system, without creating a sub-category of 
WTO Members.  We take note of the report of the Committee on Trade and Development in 
Dedicated Session on the Work Programme on Small Economies to the General Council and 
agree to the recommendations on future work.  We instruct the Committee on Trade and 
Development, under the overall responsibility of the General Council, to continue the work in 
the Dedicated Session and to monitor progress of the small economies’ proposals in the 
negotiating and other bodies, with the aim of pr oviding responses to the trade-related issues 
of small economies as soon as possible but no later than 31 December 2006.  We instruct the 
General Council to report on progress and ac tion taken, together with any further 
recommendations as appropriate, to our next Session.  
 
 In addition to paragraph 41, the Declaration of the 6th Ministerial Conference also states the 
following:  
 NAMA Negotiations - Paragraph 21 of the Declaration 
 
We note the concerns raised by small, vuln erable economies, and instruct the Negotiating 
Group to establish ways to provide flexi bilities for these Members without creating a 
sub-category of WTO Members. 
  
 Services Negotiations – Annex C, Paragraph 8 
 
Due consideration shall be given to proposals  on trade-related concerns of small economies. 
 
P
ROPONENTS  
 
The proponents of the Small and Vulner able Economies Work Programme are: 
 
1. Antigua and Barbuda  
2. Barbados  
3. Bolivia 
4. Cuba 
5. Dominica  
6. Dominican Republic  
7. El Salvador 
8. Fiji  
9. Grenada 
10. Guatemala  
11. Honduras 12. Jamaica 
13. Mauritius 
14. Mongolia 
15. Nicaragua  
16. Papua New Guinea  
17. Paraguay  
18. Solomon Islands 
19. St. Kitts and Nevis  
20. St. Lucia 
21. St. Vincent and the Grenadines  
22. Trinidad and Tobago 
  
R
ECENT PROGRESS ON SMALL AND VULNERABLE ECONOMIES WORK PROGRAMME  
 
 Members agreed to explore a characteris tics - based approach whereby characteristics 
capable of identifying small, vulnerable economies have been discussed. Members have also discussed some problems which could reasonably result from the combination of characteristics.   
 It was established that none of these characteristics and problems by itself can be 
assumed to be unique to small, vulnerable econo mies.  However, the proponents have argued 
that it is the combination and intensity of several  characteristics and problems that give rise to 
vulnerability in small economies .  Small, vulnerable economies also suffer from a lack of 
resilience and exhibit difficulty in adju sting when faced with these problems.  WT/COMTD/SE/W/20 
 Page 3 
 
 
   
Indicative List of Specific Characteristics and Problems: 
 
1. Physical isolation, geographical dispersa l and distance from the main markets.  Many 
are Small Island or landlocked developing countries.  
2. Insignificant participation in the multilateral trading system and a minimal share of 
total world trade. 
3. Small, fragmented and highly imperfect markets.   
4. In general, very open economies.   
5. Domestic markets with imperfect and highly polarized structures:  either a multitude 
of small and micro enterprises, or cartels/monopolies.  
6. Minimal or no export diversification:  con centration of exports on very few products 
(especially commodities, traditional products and low value added goods).   
7. Low supply of export services.   
8. Dependent upon very few export markets.  
9. Inadequate Infrastructure. 
10. High degree of vulnerability.   
11. Low competitiveness.  
12. Low levels of productivity and insufficient supply.   
13. Economic rigidity with high adjustment costs.   
14. Unable to sustain diversified productions.   
15. Considerable difficulties to attract foreign investment.  
16. Lack of adequate market access opportun ities to place their few export products. 
17. High transport and transit costs. 
  During the CTD- Dedicated Session held in October 2005, Members agreed to the 
continuation of the "two-track" approach in which the progress of Agreement-specific proposals 
tabled in the relevant negotiating and other bodi es be monitored by the CTD.  This decision was 
endorsed by the Ministerial Conference in Hong K ong, China, as is stated in the paragraph 41 of 
the Ministerial Declaration.   P
ROPOSALS TABLED IN THE RELEVANT NEGOTIATING AND OTHER BODIES  
 
 Initial submissions have been made in the relevant negotiating bodies as follows: 
 AGRICULTURE - TN/AG/GEN/11 (11 November 2005)
 
 
Proponents :  Barbados, Bolivia, Cuba, Domini can Republic, El Salvador, Fiji, 
Guatemala, Honduras, Maur itius, Mongolia, Nicaragua, Papua New Guinea, Paraguay 
and Trinidad and Tobago. 
 
 Small, Vulnerable Economies, with the exception of LDCs, whose average share of 
world merchandise exports over the period 1995-20 04 does not exceed 0.10 per cent, will make 
a contribution to the reform process in agricu lture according to the following provisions:  
 
 Small, Vulnerable Economies will undertake lin ear cuts not exceeding 15 per cent, with 
a minimum of 10 per cent per tariff line, fro m the bound rate.  No further commitments 
will be expected from the Small, Vulnerable  Economies on the basis of modalities that 
may be agreed with respect to other elements under the market access pillar. 
 No tariff capping shall apply to th e Small, Vulnerable Economies. 
 Modalities shall provide for substantial impr ovement in market access for products of 
export interest to Small, Vulnerable Economies. WT/COMTD/SE/W/20 
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   Small, Vulnerable Economies will designate SPs based on their food security, 
livelihood security and rural development needs. 
 Special Products (SPs) of Small, Vulnerab le Economies will be exempted from tariff 
reductions and tariff rate quota commitments. 
 All agricultural tariff lines will be eligible for the Special Safegua rd Mechanism (SSM). 
SPs of Small, Vulnerable Economies wi ll have automatic access to the SSM. 
 The Small, Vulnerable Economies insist th at the SSM shall contemplate price and 
volume-based triggers.  Remedy measures shoul d be effective and flexible to respond to 
the needs of the Small, Vulnerable Economies.   
 
 
NAMA - TN/MA/W/66 (11 November 2005)
 
 
Proponents :  Antigua and Barbuda, Barbados, Bolivia, Dominica, Dominican Republic, 
El Salvador, Fiji, Grenada, Guatemala,  Honduras, Mongolia, Nicaragua, Papua New 
Guinea, Paraguay, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines and 
Trinidad and Tobago. 
 
 As their contribution to the NAMA nego tiating process, small economies propose that 
developing countries, not covered in paragra ph 6 and paragraph 9 of  Annex B, and whose 
average share in total world merchandise expor ts does not exceed 0.10 per cent over the period 
1995-2004, will be expected to: 
 
(a) Make tariff reductions not exceeding 15 per cent, but with minimum cuts of 
10 per cent on individual lines and with no more than half the cuts at the lowest 
level of this range.  This contributi on will ensure a significant reduction of 
small economies' tariff averages as well as  a reduction in individual tariff lines. 
(b) On the treatment of unbound tariffs, small economies whose binding coverage 
is more then 90 per cent commit themselves to the objective of full tariff binding as an outcome of the NAMA negotiations.  However, newly bound tariff lines will not be subject to re ductions through the formula during these 
negotiations.  Small economies are open to  discuss a possible target rate at 
which these tariffs should be bound or a maximum rate at which to bind these 
lines. 
 Small, vulnerable economies firmly believe that only tariff reductions compatible with 
their capacity to sustain trade re forms, as spelt out in this paper, are likely to efficiently 
discharge the Doha mandate.  In this context, small economies will continue to have access to 
flexibilities such as those outlined in paragraph 8 of Annex B. 
  RULES - FISHERIES SUBSIDIES DISCIPLINES - TN/RL/GEN/57/Rev.2 
(13 September 2005)  
 
Proponents :  Antigua and Barbuda, Barbados, Do minican Republic, Fiji, Grenada, 
Guyana, Jamaica, Papua New Guinea, St. Kitts  and Nevis, St. Lucia, Solomon Islands 
and Trinidad and Tobago. 
 
 Small vulnerable coastal states seek appropriate special and differential treatment in any 
disciplines on fisheries subsidies.  In this regard  the following should not be subject to subsidies 
disciplines:  WT/COMTD/SE/W/20 
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(i) Any development assistance to developing coastal states; 
(ii) Assistance to artisanal or small-scale fisheries .  This requires a 
consensus on the definition of artisanal  or small-scale.  Some existing 
definitions of artisanal are based on vessel size in metres, capacity in 
gross registered tonnage (GRT), or area of operation in terms of 
proximity to the shoreline.  We invite discussions on prevailing definitions used by Member States and possible approaches for arriving at a definition for use in the WTO;   to facilitate the discussions, the 
sponsors of this paper will share information with Members on 
definitions currently being used in their respective jurisdictions; 
(iii) Access fees in fisheries access agreements;  
(iv) Fiscal Incentives - to facilitate the development of capabilities of small 
vulnerable coastal states. 
 It is proposed that the special and differe ntial treatment provisions of the ASCM for 
Least-Developed Countries be maintained in future disciplines.  
  TECHNICAL BARRIERS TO TRADE -  WT/COMTD/SE/W/15 (18 October 2005)
 
 
 Proponents :  Antigua and Barbuda, Barbados, Cuba, Dominica, Fiji, Grenada, 
Jamaica, Mauritius, Papua New Guinea, Solomon Islands, St. Kitts and Nevis, 
St. Vincent and the Grenadines. 
 
 Recognising the contribution that interna tional standards and conformity assessment 
systems can have in improving efficiency of production and facilitating the conduct of 
international trade, the General Council is to  recommend to the Ministerial Conference that 
there shall be explicit recognition of Members' rights to designate a regional body to provide 
such technical support as is nece ssary to assist them in fulfilling their obligations under the TBT 
Agreement.  Members and the WTO, within its  competence, shall provide the technical and 
financial assistance required to enable these small, vulnerable economies to fulfil their 
objectives under this Agreement.  
 
 SANITARY AND PHYTOSANITARY MEASURES - WT/COMTD/SE/W/16 
(18 October 2005)  
 
Proponents :  Antigua and Barbuda, Barbados, C uba, Dominica, Fiji, Grenada, 
Jamaica, Mauritius, Papua New Guinea, Solomon Islands, St. Kitts and Nevis, 
St. Vincent and the Grenadines. 
 
 Recognising the special difficulties encountered  by the co-sponsors of this proposal in 
complying with SPS measures, and as a conseque nce in access to market s, and also in the 
formulation and application of SPS in their own territories, the General Council is to 
recommend to the Ministerial Conference that there shall be explicit recognition that WTO Members may designate a regional body to prov ide technical support as is necessary and to 
carry out the functions necessary to assist them in implementing the provisions of the SPS Agreement.  Members and the WTO, within its  competence, shall provide the technical and 
financial assistance required to enable these small, vulnerable economies to fulfil their 
objectives under this Agreement. WT/COMTD/SE/W/20 
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  ACCESSION TO THE WTO - WT/COMTD/SE/W/17 (18 October 2005)
 
 
Proponents :  Antigua and Barbuda, Barbados, Cuba, Dominica, Fiji, Grenada, 
Jamaica, Mauritius, Papua New Guinea, Solomon Islands, St. Kitts and Nevis, 
St. Vincent and the Grenadines. 
 
 It should be agreed that, in both the nego tiations on rules in accession Working Parties 
and in the negotiations on market access commitments, acceding small, vulnerable economies will only be required to undertake commitments co mmensurate with their level of development.  
In determining the terms of reference for accessi on Working Parties, appropriate consideration 
should be given to the specific characteristics and vulnerabilities of acceding small, vulnerable 
economies.    It should also be agreed that if a party to the negotiations on the accession of any applicant country considers that the terms of re ference of the relevant Working Party are not 
being observed, it may request the establishment of  a panel.  This panel would be appointed by 
the Director-General from a roster of independent experts, to examine the case and report with recommendations to the General Council/Ministerial Conference.   INTELLECTUAL PROPERTY RIGHTS - WT /COMTD/SE/W/18 (18 October 2005)
 
 
Proponents :  Antigua and Barbuda, Barbados, Cuba, Dominica, Fiji, Grenada, 
Jamaica, Mauritius, Papua New Guinea, Solomon Islands, St. Kitts and Nevis, 
St. Vincent and the Grenadines. 
  Recognising the underlying public policy objectives of national systems for the 
protection of intellectual property, including developmental and technological objectives, and 
also the need to enable these small, vulne rable economies to create a sound and viable 
technological base, the General Council is to recommend to the Ministerial Conference that 
there shall be explicit recognition of Members' rights to designate a regional body to provide 
such technical support as is necessary to assist them in fulfilling their obligations under the 
TRIPS Agreement.  Members and the WTO, within  its competence, shall provide the technical 
and financial assistance required to enable th ese small, vulnerable economies to fulfil their 
objectives under this Agreement.   
SERVICES – INFORMATION NOTE (November 2005)
 
 
Proponents :  Antigua and Barbuda, Barbados, Bolivia, Cuba, Dominica, Dominican 
Republic, El Salvador, Fiji, Grenada, G uatemala, Honduras, Jamaica, Mauritius, 
Mongolia, Nicaragua, Papua New Guinea, Pa raguay, Solomon Isl ands, St. Kitts and 
Nevis, St. Vincent and the Grenadines and Trinidad and Tobago. 
 
 The two-track process involving the CTD and negotiating groups has therefore emerged 
as the process whereby the objective of framing r esponses to the trade related issues identified 
for the fuller integration of small, vulnerable economies into the multilateral trading system is 
being pursued. 
 
 Small Economies have already and will conti nue to demonstrate their engagement to the 
services negotiations including through the tabling of initial and revised offers. 
  Taking the above into consideration, issu es of concern to small, vulnerable economies 
should be addressed satisfactorily in the services negotiations in order for these economies to  WT/COMTD/SE/W/20 
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  participate meaningfully in the multilateral trad ing system in accordance with their level of 
development, market share, vulnerabilities and ec onomic size and structure, without creating a 
subcategory of WTO Members.   The Hong Kong Ministerial text recognises that "(N)egotiations shall have regard to the 
size of economies of individual Members, both overall and in individual sectors and in this 
respect, "Due regard shall be given to proposal s on trade related concerns of small economies". 
  
O
THER RELEVANT DOCUMENTS  
 
 Communiqué - Ministerial Meeting of Small, Vulnerable Economies 
WT/MIN(05)/222 (16 December 2005)   
 
Proponents:  Antigua and Barbuda, Barba dos, Belize, Bolivia, Cuba, Dominica, 
Dominican Republic, El Salvador, Fiji, Gr enada, Guatemala, Guyana, Honduras, 
Jamaica, Mauritius, Mongolia, Nicaragua , Paraguay, Papua New Guinea, Solomon 
Islands, St. Kitts and Nevis, St. Lucia, St . Vincent and the Gren adines, Trinidad and 
Tobago. 
 
 
 
 
                                                      
2 Relevant documents also include WT/MIN(05)/22/Add.1 to Add.3, concerning request by 
Maldives, Sri Lanka and Kyrgyz Republic to be added to the list of sponsors.  
  WT/COMTD/SE/W/20 
Page 8 Table: Share of World Merchandise Exports (1995-2004) and Average - Annex to TN/AG/GEN/11 – AGRICULTURE 
 
Small Economies particip ation in Total Merchandi se Exports (1995 – 2004) 
Year 
(Percentage) Small Economy 
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Average 
World 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 
Antigua and Barbuda 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 
Barbados 0.0050 0.0050 0.0050 0.0050 0.0050 0.0040 0.0040 0.0030 0.0030 0.0020 0.0041 
Bolivia 0.0220 0.0220 0.0220 0.0210 0.0190 0.0200 0.0210 0.0210 0.0210 0.0240 0.0213 
Cuba 0.0320 0.0380 0.0330 0.0280 0.0270 0.0270 0.0280 0.0220 0.0230 0.0250 0.0283 
Dominica 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 0.0000 0.0009 
Dominican Republic 0.0750 0.0770 0.0850 0.0930 0.0920 0.0910 0.0880 0.0820 0.0750 0.0650 0.0823 
El Salvador 0.0330 0.0340 0.0450 0.0460 0.0450 0.0470 0.0480 0.0480 0.0430 0.0370 0.0426 
Fiji 0.0120 0.0140 0.0110 0.0100 0.0110 0.0090 0.0090 0.0090 0.0090 0.0080 0.0102 
Grenada 0.0004 0.0004 0.0004 0.0008 0.0006 0.0012 0.0010 0.0010 0.0006 - 0.0007 
Guatemala 0.0430 0.0390 0.0430 0.0480 0.0430 0.0430 0.0410 0.0350 0.0340 0.0330 0.0402 
Honduras 0.0240 0.0250 0.0270 0.0290 0.0210 0.0220 0.0220 0.0210 0.0180 0.0170 0.0226 
Mauritius 0.0310 0.0340 0.0290 0.0310 0.0280 0.0250 0.0270 0.0290 0.0260 0.0230 0.0283 
Mongolia 0.0090 0.0080 0.0080 0.0090 0.0080 0.0090 0.0090 0.0080 0.0080 0.0100 0.0086 
Nicaragua 0.0090 0.0090 0.0110 0.0110 0.0100 0.0100 0.0100 0.0090 0.0080 0.0080 0.0095 
Papua New Guinea 0.0530 0.0480 0.0400 0.0330 0.0340 0.0330 0.0300 0.0260 0.0300 0.0280 0.0355 
Paraguay 0.0180 0.0200 0.0200 0.0190 0.0130 0.0140 0.0160 0.0150 0.0170 0.0180 0.0170 
Saint Kitts and Nevis 0.0000 0.0000 0.0010 0.0010 0.0010 0.0010 0.0010 0.0000 0.0010 0.0010 0.0007 
Saint Lucia 0.0020 0.0020 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 0.0012 
Saint Vincent and the Grenadines 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 0.0010 0.0000 0.0009 
Trinidad and Tobago 0.0490 0.0480 0.0470 0.0420 0.0500 0.0680 0.0710 0.0620 0.0710 0.0710 0.0579 
 
 
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