WORLD TRADE  
ORGANIZATION   
WT/COMTD/W/182 
4 November 2011 
 (11-5624) 
Committee on Trade and Development Original:   English 
  
 
CONSOLIDATING AND MAINSTREAMING DEVELOPMENT  
IN THE WORLD TRAD E ORGANIZATION  
 
Communication from the African and Arab Groups  
 
 
 The following communication, dated 31 October 2011, is being circulated at the request of the delegation of Kenya on behalf of the African and Arab Groups
. 
  
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 1. A key challenge for global economic governance is  to reconcile trade and development needs 
under conditions of globalization.  For the last 16 years and since the establishment of the World 
Trade Organization (WTO), attempts continue to be made to reconcile this notion within the WTO.  
However, the rules affecting developing and least-d eveloped countries participation in the multilateral 
trading system has evolved, as has the thinking about the nature of trade policies supportive for development. 
I. REASSERTING DEVELOPMENT PRINCIPLES AND CONSIDERATIONS IN A 
CHANGING GLOBAL ECONOMIC LANDSCAPE 
2. The global financial, economic, food, debt crises and commodity price volatilities pose 
unyielding challenges to the multilateral tradi ng system and foremost on its developing and 
least-developed constituencies.  Protectionist pressures, global structural and macroeconomic imbalances are on the rise.  Te ndencies of diminishing socio-po litical support for further trade 
liberalization have been registered.  World trade pa tterns are shifting altering commodity and services 
terms of trade both in magnitude and product compos ition.  The realization of  the Doha Development 
Agenda and the Millennium Development Goals, partic ularly Goal 8, and other internationally agreed 
sustainable development objectives pose additional ch allenges to the multilateral trading system.  To 
ward off the potential effects of the aforemen tioned challenges requires concerted efforts to 
consolidate and mainstream developm ent considerations and factor them  into the different layers and 
structures of the WTO.  Speci al and Differential (S&D) treat ment is no longer a matter of 
convenience, but rather of necessity.  There is a ne ed to keep under constant review the justifiable 
exceptions and flexibilities granted to developing and least-developed Members to ensure their 
effectiveness.  
II. REVITALIZING THE ROLE OF THE COMMITTEE ON TRADE AND 
DEVELOPMENT 
3. The Committee on Trade and Development (CTD) wa s granted in 1996 a unique stature in the 
WTO.  Ministers established the CTD "to serve as the focal point for the consideration and coordination of work on all development issues in the multilateral trading system".  However, it 
appears that not all issues and decisions taken by the various WTO bodies, of particular interest to WT/COMTD/W/182 
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  developing and least-developed countries, have been  regularly reported to the CTD, nor has the CTD 
been consulted on a range of development related issues that have been taken up by these bodies.  
There is a need to improve intra-reporting proce dures and operationalize the CT D's terms of reference 
to periodically review development related work und ertaken in other WTO bodies.  It appears that the 
current reporting structure within the WTO falls  short of appropriately reflecting the CTD's 
overarching development purview and mandate. 
4. The CTD was also established "t o consider any questions which may arise with regard to 
either the application or use of special provisi ons in Multilateral Trade Agreements and related 
Ministerial Decisions in favour of developing c ountry Members and report directly to the General 
Council for appropriate action".  However, at leas t on one occasion, the CTD was unable to report its 
annual activities to the General Council as was refl ected by the non-adoption of its 2010 annual 
report.  This came in direct contravention to th e General Council's Decision of 1995 on the procedures 
to be followed for the annual reporting on WTO activities. 
III. MONITORING AND SURVEILLANCE 
5. The CTD's terms of reference, among othe rs, mandate it "to review periodically, in 
consultation as appropriate with th e relevant bodies of the WTO, the application of special provisions 
in the Multilateral Trade Agreements and related Ministerial Decisions in favour of developing 
country Members, and in particular least-devel oped country Members, and report to the General 
Council for appropriate action".  However, it appear s that the CTD did not fully exploit and capitalize 
on its mandate to consider a wide range of issues .  Examples of which could be revealed from the 
inability of the CTD to report on the "utilization of special and differential treatment (SDT) 
provisions" since 2002;  the lack of continuity in following up on the implementation of Decisions in 
favour of LDCs and other Decisions relating to measures concerning the negative effects of the 
reform programme on least developed and Net Food  Importing Developing Members (NFIDC's);  as 
well as Decision related to Waivers, TRIPS and Accession of LDCs, etc. 
6. In 2003, the General Council agreed to estab lish an S&D Monitoring Mechanism on the basis 
of the African Group proposal, pending the elabor ation of the functions, structure and terms of 
reference of the Mechanism, while taking into account  the proposals made by the African Group.  The 
establishment of this Mechanism was never mean t to replace the need and importance for the 
completion of the mandate to review all S&D pr ovisions as stipulated by the Doha Development 
Agenda, but rather to monitor the effectiveness of  the S&D provisions that have been reviewed 
strengthened and made more pr ecise and operational including, the pending Agreement Specific 
Proposals (ASP's) agreed upon, ad-referendum, prior to the Cancún 2003 Ministerial Conference.  
IV. ADMINISTERING AND STRENGTH ENING THE 1979 DECISION ON 
DIFFERENTIAL AND MORE FAVOURABLE TREATMENT RECIPROCITY AND FULLER PARTICIPATION OF DEVELOPING COUNTRIES (THE ENABLING CLAUSE) 
7. One significant issue for developing and least-d eveloped Members alike has been to preserve 
their rights as prescribed by the Enabling Clause and maintain its scope of application, as well as its 
standing within the WTO as lex-specialis.  Consensus continues to elude Members over how to 
address specific and systemic issues and procedural  aspects raised in connection to Regional Trade 
Agreements (RTAs) notified on the basis of the Enab ling Clause.  It should be recalled that according 
to the CTD's rules of procedure these are the ve ry issues that should be reported to the General 
Council for appropriate action.  Moreover, it is of importance to recall that any preferential 
arrangements that entail the reduction and/or elim ination of non-tariff barriers among developing and 
least-developed Members are authorized as prescribed by the 1979 Decision on Differential and more Favourable Treatment for Developing Countries.   WT/COMTD/W/182 
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  8. Since 2007, developing and least-developed Members have raised, in the CTD, several legal 
and procedural specific and systemic issues with resp ect to RTA's that have been notified to the CTD 
and the CRTA on the basis of both the Enablin g Clause and Article XXIV of GATT 1994.  These 
systemic issues continue to pose considerable implication on the multilateral trading system and 
should be resolved to avoid any further infringeme nt on the mandate and term s of reference of the 
CTD, and prevent the disruption of its future work.  
V. PRESERVING THE CTD’S ROLE IN IMPLEMENTING THE TRANSPARENCY 
MECHANISM FOR RTA'S  
9. The CTD has traditionally served as the forum for notification and consideration of RTA's 
between developing countries notified to the WT O on the basis of the Enabling Clause.  On 
14 December 2006, the General Council adopted a d ecision on the establishment of a Transparency 
Mechanism for RTAs.  This decision clearly specified  that the CTD would be the body entrusted with 
the implementation of the Mechanism as it applies to RTA's notified on the basis of the Enabling 
Clause.  However, it appears that the CTD was unable to maintain the proper application and 
implementation of the procedures established by th e Transparency Mechanism.   In several cases, 
RTAs between developing and least -developed countries have been challenged on a prima facie basis 
and upon their notification for having invoked the Enab ling Clause.  This procedure came despite the 
inherent proviso in the Mechanism itself which warr ants that RTAs shall be considered by Members 
upon their notification without prejudging the substan ce of the RTA notification and in a manner that 
does not affect Members' rights and obligations und er the WTO agreements under which it has been 
notified in anyway. 
 
 WT/COMTD/W/182 
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  PROPOSED DECISION FOR THE EIGHTH WTO MINISTERIALCONFERENCE 
 
CONSOLIDATING AND MAINSTREAMING DEVELOPEMT  
IN THE WORLD TRADE ORGANIZATION 
 
 
Ministers , 
 
Determined  to pursue the fundamental development objec tives and principles as set out in the 
Marrakesh Agreement establishing the World Trade Or ganization;  Part IV of the General Agreement 
on Tariffs and Trade 1994;  the Decision on Differ ential and More Favourabl e Treatment Reciprocity 
and Fuller Participation of Devel oping Countries ("Enabling Clause" );  the Decision on Measures in 
Favour of Least-Developed Countri es;  the Decision on Measures Concerning the Possible Negative 
Effects of the Reform Programme on Least-Develo ped and Net Food Importing Developing Countries;  
the Doha Ministerial Declaration;  as well as the Decision on Im plementation Related Issues and 
Concerns; 
Mindful  of the importance of increasing the participat ion of developing countries in the multilateral 
trading system, and their share in in ternational trade and of the need to ensure that the system 
responds fully to the needs and inte rests of the broad developing and least developed constituency of 
the WTO; 
Recognizing  that the globalization of the world economy has led to ever-growing interactions between 
the economic policies pursued by i ndividual countries, including intera ctions between the structural, 
macroeconomic, trade financial and development as pects of economic policym aking;  underscoring the 
importance of efforts to improve global economic policymaking in a manner that complements the 
effective implementation of the development objec tives and principles of the multilateral trading 
system; 
Decide;  
Maintain the centrality of the Comm ittee on Trade and Development (CTD) and strengthen its role as the 
focal point for the consideration an d coordination of all development rel ated activities in the WTO;  and 
direct the CTD to submit a report, including recommend ations to improve its operation and effectiveness 
within the WTO, by the next Sessi on of the Ministerial Conference;  
Instruct the CTD to report, within its mandate,  on any development related activities and issues 
raised in other WTO bodies.  The CTD shall regularly monitor these activities as well as the 
implementation of special and differential treatmen t provisions;  and provide the necessary guidance 
and recommendations to the General Co uncil for appropriate action;  
Welcome the General Council's Decision of July 2002  to establish a monitori ng mechanism for special 
and differential treatment within th e parameters of paragraph 44 of the Doha Ministerial Declaration;  
and instruct to finalize its structu re, scope, functions, terms of reference , and proceed with its application 
and incorporation in the architecture of the CTD; 
Confirm that any questions arising from the applic ation or use of special and differential treatment 
provisions in the WTO Agreements, Ministeri al and General Council Decisions, including 
developmental concerns related to the specific and syst emic issues raised with respect to Regional 
Trade Agreements (RTA's) notified on the basis of  the Enabling Clause should be reported by the 
CTD to the General Council for appropriate action; 
Note that Members have established a transparenc y mechanism for RTA's on a provisional basis; and 
emphasize the need for the proper application of the mechanism and its tran sparency procedures,  WT/COMTD/W/182 
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  without prejudging the substance of the notified RT A or Members rights under the provisions which it 
had been notified in any way;  and reaffirm that the review of an RTA notified on the basis of the 
Enabling Clause must be carried out in accor dance with the terms of reference and procedures 
established by the CTD and the Transparency Mechan ism for RTA's;  and confirm that the terms and 
conditions of the Enabling Clause shall apply when ac tion is taken by Members under the provisions of 
this Clause; 
Direct the CTD to submit a report on cross cutting elements, trends and practices in RTAs among 
developing and least developed Members;  and how non reciprocal trade preferences could further 
contribute to the economic development of the WTO's d eveloping country Members and in particular 
least developed country Members. 
Agree to adopt the [...] S&D Agreement Specific Pr oposals based on Annex C of the draft Cancún 
Ministerial Declaration, annexed to this Decision.  
 
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