WORLD TRADE  
ORGANIZATION  WT/GC/W/605 
3 July 2009 
 (09-3277) 
General Council 
28-29 July 2009 Original:   English 
 
 
 
STRENGTHENING THE WTO 
 
Communication from India  
 
 
 The following communication, dated 2 July 2009,  is being circulated at the request of the 
Delegation of India.  
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  The Seventh Session of the WTO Ministerial Conference will be held from 30 November to 2 December 2009.  The Conference is taking place four  years after the last Ministerial Conference 
in 2005, where the emphasis will be on transparen cy and open discussion.  The Conference provides 
an opportunity to look at some systemic issu es in the WTO with a view to strengthening the 
multilateral trading system.  At the General Counc il meeting on 26 May 2009 India had stated its 
intention to submit a few proposals that it consider s important from the perspective of improving the 
functioning and efficiency of the WTO as a rules-base d system.  In that context, India is submitting a 
set of five proposals which are intended to enha nce the usefulness of the WTO and to make the 
system more relevant, vibrant and user friendly fo r both the member states and the larger trading 
community. 
  The proposals made in this submission are not cast in stone.  These are made to initiate 
discussion at the General Council.  The delegation of India wishes to build on these proposals taking 
into account the views and suggestions from Members.  
A. T
RADE INFORMATION SYSTEM BASED ON MEMBER NOTIFICATIONS  
1. Proposal : Ministers direct the setting up of a proj ect to enhance the Integrated Database to 
include in an appropriate format non-tariff data, based on the current notification obligations under 
WTO Agreements.  The project should be d esigned to be efficient and effective by inter alia  limiting 
additional resource requirements;  optimising the desi gn and structure of present notification systems;  
enhancing co-operation with rela ted multilateral agencies; and providing technical assistance to 
developing countries, in particular the LDCs. 
2. Background :  In the realm of trade information, th ere is a significant gap in the information 
available on non-tariff measures (NTMs).  Closing this gap is of particular im portance to governments 
as well as for trade operators.  The WTO took a step  in the right direction when it implemented the 
Integrated Data Base (IDB) covering tariff (applied and bound) and trade data (partner-wise) which 
are electronically available at the national tariff lin e level.  This has proved to be of immense 
assistance in formulating not just negotiating positions but also for various rese arch activities.  It is 
time that NTMs are integrated with the ID B in a common format and for similar use. WT/GC/W/605 
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  3. Regarding NTMs, the WTO is uniquely placed as the biggest repository of certified trade 
information about its members’ regimes through its system of notifications under various WTO 
agreements.  However, at present this informati on has at best archival value because of the way 
information is submitted and stored. It is incomplete, not comparable amongst members or even timely.  This pool of information has to be worked upon for it to become an asset .  What is needed is 
better integration and coherence in database form an d more effective public visibility of the existing 
information.  In our view such an exercise need not be resource intensive. Improvements in the 
notification formats; content; and integration with ex isting database will assist in the project without 
any immediate additional resource requirement . Long- term resource implications  can be contained by 
coordinating the activities with related multilateral agencies like the UNCTAD and ITC.  
4. For the trade operatives, the proposal is to cr eate a comprehensive information system that 
provides at the national tariff line level the tariff and non-tariff measures imposed by any member.  This kind of a system will grant member regimes a le vel of transparency that is not presently available 
from any source would be an invaluable improvement to the present situation. 
5. It is recognized that there are many issues and problems inherent in this proposal, it is 
therefore considered prudent that that project be developed in phases to enable it to address the arising 
demands based on experience gained and utility.  
B. R
EVITALISE WTO  COMMITTEES  
1. Proposal : Direction from Ministers to include in  the agenda of formal WTO Committee 
meetings inter alia  – monitoring of recent developments in members on the trade disciplines covered 
by the committee, based on a compilation by Secretariat of developments between formal meetings 
and verified by the member concerned;  regular  discussions on general developments in the areas 
covered by the committee, including in the presence of outside experts;  and through adoption of 
appropriate procedures, discussion on and resolution of  low threshold specific trade concerns in small 
group settings. 
2. Background : Given the widely perceived declinin g utility of the committee work, it is 
imperative that measures to revitalise them be a dopted. Following are some suggestions on how the 
committees can be reinvigorated. 
Monitoring Developments 
 
3. The recent exercise in the TPRB of the WTO of monitoring developments in the trade 
regimes of various members has proved to be a useful tool for all members, particularly the 
developing countries that have an i nherent disadvantage in gathering su ch information.  This practice 
could be formalized and be made a regular agenda item for all formal meetings of all trade related 
WTO Committees. 
4. Along with member notified measures, the Se cretariat may make factual presentation on 
developments in various members on the disciplin es covered by a committee.  The Secretariat may 
base its factual report on information gathered fro m publicly available and reliable sources and after 
the gathered information being verified by the member concerned. 
Discussions on Trade Disciplines 
 
5. Another way to improve the relevance of the WTO Committees may be to include on the 
agenda, on a mandated basis, a discussion on the cu rrent practices and developments in the trade 
disciplines covered by a particular Committee.  It may be considered to invite outside experts to 
present their views on such developments.  Such a topical discussion will keep members abreast of the  WT/GC/W/605 
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  latest developments. Improve th e knowledge and performance of delegates and while it is not 
suggested or foreseen that the exercise will be reco mmendatory in nature, such discussions could help 
identify possible improvements to th e WTO agreements/disciplines.  
Forum to Address Specific Trade Concerns 
 6. One other measure would be to enable the Co mmittees to discuss and offer possible solutions 
to the specific trade concerns of members.  As  a forum to discuss and r esolve the specific trade 
concerns, it is important that members have acce ss to at least a limited committee process right 
through the year and not just the periodical form al committee meetings.  Working procedures that 
balance the need for confidentiality, to meaningfully  discuss and resolve a specific trade concern, with 
that of transparency, i.e. information to the memb ership as a whole about the issue and its resolution, 
has to be devised and adopted.  To be quick, e fficient and economic, working procedures should allow 
formation of appropriate sub-groups  of interested members to form and deal with the matter at hand. 
7. Needless to say, such a procedure will bri ng into the WTO low threshold concerns of 
developing countries with the promise of at least ga ining a better understanding of the matter and at 
best a resolution of the problem.
1 
Frequency of Meetings 
 
8. Finally, keeping the above in view members may like to review the frequency of the WTO 
meetings.  The frequency of the me etings refers to both, the formal meetings as well as informal 
meetings.  These could be increased to allow discharge of its work efficiently.   
C. WTO' S ENGAGEMENT WITH RTA S 
1. Proposal :  Directions from Ministers to monitor th e developing trends in RTAs and develop 
non-binding best practice guidelines for reference wh ile negotiating new RTAs.  To ensure robust and 
regular monitoring the two transpar ency mechanism should be implemented on a permanent basis; the 
Secretariat to produce an Annual Review of RTAs  based on the factual reports; and members to 
discuss trends and formulate non-binding best practices in the CRTA. 
2. Background :  The fact that RTAs are proliferating and most of global trade is conducted on 
preferential terms is well documented.  The work in WTO on RTAs which earlier focused entirely on 
evaluating the RTAs for their compatibility with GATT/ WTO provisions was for long log-jammed.  
Members could neither definitively establish standard s for the examination or evaluation, and even 
where they had clear yardsticks such as for "reas onable length of time", they could not agree whether 
indeed the RTAs under examination met the standards or not. 
3. Given this situation the membership responded with the implementation of the RTA 
Transparency Mechanism, which was earlier agr eed to by members as an early and provisional 
outcome of the Doha Round.  Certainly, one can say today that the RTA Transparency Mechanism is 
a success. It has contributed immensely to our unders tanding of the contents of RTAs.  The success of 
the existing mechanism is reflected by the desire of the membership to design a similar mechanism 
for the unilateral preferential schemes as well.  Even  this mechanism, which is not Doha mandated, is 
close to finalisation.  Thereby, all agreements offe ring preferences of any kind to participants will be 
covered by the transparency regime in WTO. 
                                                      
1  In this regard reference may be made to the proposal on "Procedures for the Facilitation  of Solutions 
to Non-Tariff Barriers" (TN/MA/W/106) co-sponsored by a majority of WTO members in the DDA negotiations which seeks a similar procedure albeit for a limited purpose, i.e. resolutio n of identified non-tariff 
barriers, and in a limited area, i.e ., trade in goods in the remit of the Council for Trade in Goods.  WT/GC/W/605 
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  4. Given the accepted benefits of the RTA Transpar ency Mechanism and the expectation that the 
transparency mechanism on pref erential schemes will be as useful, Ministers could now agree to 
implement both on a permanent basis, albeit w ith in-built provisions for periodic review. 
5. At this stage, the issue for discussion is whether the two transparency mechanisms are 
enough.  Is this all that the WTO can do?  Or are there other aspects of RTAs that can be fruitfully 
examined in the WTO?  Can more be done to reduce the adverse impact of RTAs on multilateral 
trade?  Can the information provided by the Tran sparency Mechanism on RTAs currently in force, 
help members to identify what future RTAs should look like? 
6. The basic problem with examination of RTAs  in WTO has been the lack of a clear 
understanding amongst the members about the yardstic ks on trade coverage; im plementation periods;  
means to evaluate trade diversion;  etc.  In the present environment of multiplicity of such agreements 
involving all varieties of obligations, it is and will  remain a challenging task coming to any common 
understanding on them and consequently a strict ev aluation of any RTA is likely to remain a difficult 
task. 
7. Therefore, while the work on the substantive issues may continue in the NGR, it will be 
useful to, in parallel, put in place measures that will allow us to move further on implementing the 
Transparency Mechanisms and best  utilise the knowledge gathered on RTAs through them.  In this 
context it is suggested that the Secretariat be re quested to prepare an annual RTA Review.  This 
publication, based on the factual presentations prepared by the Secretariat of individual RTAs, will inter alia  review horizontally, across RTAs, the trends in content and structure of the RTAs that have 
come into effect during the year concerned. 
8. Based on the trends detected in the annual reviews members in the CRTA may examine from 
an educative perspective ways to reduce the adver se impact of RTAs on multilateral trade.  Aspects 
like, trade coverage/substantially all trade;  reas onable length of time; non-trade issues; preferential 
rules of origin; etc.  can be exam ined.  To the extent that there is  consensus, the outcome could be a 
series of non-binding "best practices/guidelines" on va rious elements/ aspects of RTAs for reference 
by members in negotiating future RTAs.  In this wa y there will not just be greater insight about RTAs, 
but WTO may be able to influence the evolution of the RTAs based on the trends over the past years.  
D. O
MNIBUS LEGAL INSTRUMENT FOR PREFERENTIAL MARKET ACCESS TO LDC S 
1. Proposal :  Direction from Ministers for establishing a "Steering Group" or a subsidiary body 
under the General Council to comprehensively ex amine all WTO-related instruments allowing 
members to grant preferential access to LDCs.  Fo llowing such examination, members to consider; 
propose and adopt a single instrument that would address all forms of preferential market access for 
LDCs. 
2. Background :  Within the GATT/WTO, members have provided special and differential 
treatment for Least-Developed Country members (L DCs) on a preferential basis under a variety of 
legal instruments and agreements.  These preferen tial schemes have evolved over time both from the 
perspective of coverage, depth of concessi ons and the members granting the concessions. 
3. The basic instruments providing legal covera ge for preferential market access for LDCs 
include the Enabling Clause2, adopted in 1979, which allows de veloped country members to grant 
deeper preferences to LDCs within the GSP scheme s they established for developing countries.  In 
                                                      
2 "Differential and more favourable treatment reciprocity and fuller participation of developing 
countries", Decision of 28 November 1979 (L/4903).  WT/GC/W/605 
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  1999, the General Council adopted the LDC Decision3 which established a 10-year waiver for 
developing countries to grant preferential market access to LDCs.  This 1999 waiver was recently 
extended until 30 June 2019.4 
4. A momentum for granting greater preferential market access to LDCs was generated when the 
DFQF Decision was adopted at the Hong Kong Mini sterial Conference in December 2005.  This 
decision has effectively extended both the product c overage and the depth of concessions.  This 
Decision applies to both developed countries and "developing-country members declaring themselves 
in a position to do so". 
5. In addition to the existing instruments coveri ng preferential market access in goods, a legal 
instrument which would grant preferential access to LDC service providers under GATS is being 
considered in the Special Session of  the Council for Trade in Services. 5 
6. The multiple and sometimes overlapping instrument s have different types of legal coverage 
and a variety of procedural requirements.  This, combined with differential levels of market access 
commitments made in favour of LDCs, has created an environment of uncertainty both for the LDC 
preference receivers and the members granting or  establishing such preferential market access 
schemes.  For example, just on the procedural front, the developed country GSP schemes under the 
Enabling Clause are notified in the CTD while devel oping countries will have to notify their schemes 
through the Council for Trade in Goods under the cover of the Decision contained in WT/L/759.  The implementation of the DFQF Decision is being notif ied to the CTD.  The situation regarding the 
future services instrument is not yet clear. 
7. For the purposes of certainty, predictability a nd transparency on all aspects of preferential 
market access for LDCs, an Omnibus Legal Instrument is necessary.  
E. R
EAFFIRM PRIMACY OF INTERNATIONAL STANDARDS AND STANDARD SETTING FOR WTO  
OBLIGATIONS  
1. Proposal : Statement from Ministers in the Conference outcome document, reaffirming the 
provisions relating to the need to adopt internati onal standards in respect of sanitary, phytosanitary 
and technical barriers to trade, stressing the need for members to primarily base domestic regulations 
on such international standards for all trade in goods. Encourage increased participation in 
international standard setting activities. 
2. Background : Lack of common product standards a nd framing of technical regulations on 
national rather than international standards is increasingly a major hindrance to a smooth flow of 
trade. Arguably alignment of standards amongst th e membership and reduction of costs related to 
adherence, i.e. conformity assessment procedures, will bring about the most significant benefit to 
world trade. 
                                                      
3 "Preferential Tariff Treatment for Least-developed Countries", Decision on Waiver, adopted on 
15 June 1999 (WT/L/304).  
4 "Preferential Tariff Treatment for Least-Developed Countries", Decision on Extension of Waiver, 
adopted on 27 May 2009 (WT/L/759). 
5 Paragraph 9 in the Report of the Chairman of the Special Session of the Council for Trade in 
Services, contained in TN/S/34, states that  ... "to fulfil the requirements set out in paragraph 9(a) of Annex C of 
the Hong Kong Minist erial Declaration regarding the developmen t of appropriate mech anisms for according 
special priority including to sectors and modes of supply of  interest to LDCs", "members are of the view that a 
waiver, available to all members, from the obligations of Article II, paragraph 1 of the GATS in respect of 
preferential treatment benef iting all LDC members offers the most satisfactory outcome of this negotiation." WT/GC/W/605 
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  3. This matter is being discussed in many different fora in the WTO like the SPS and TBT 
Committees, as also partly in negotiating bodies under the DDA.  A reaffirmation by Ministers will be an important signal to the membership that the in creasing divergence from international standards and 
conformity assessment/testing practices is a matter of concern and it is time to roll back the 
complications brought about by the divergent national regulatory regimes. 
 In submitting this paper, it is recognized that the ideas included above do not represent a 
comprehensive list of possible improvements to  the WTO's functioning. Other members have 
suggested other measures or similar measures, but to be implemented in differe nt ways. In the period 
leading up to the Ministerial Conference in N ovember/December 2009 it is expected that members 
would come to a consensus on the list of measures as  also the format in which the direction from the 
Ministers would be sought. 
 
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