WORLD TRADE
ORGANIZATIONTN/CTD/W/25/Rev.1
7 February 2003
(03-0811)
Committee on Trade and Development
Special Session
DRAFT
REPORT TO THE GENERAL COUNCIL
Revision
I. INTRODUCTION
1. Paragraph 44 of the Doha Ministerial Declaration reaffirmed that "provisions for special and
differential treatment are an integral part of the WTO Agreements" and directed that "all special and
differential treatment provisions shall be reviewed with a view to strengthening them and making
them more precise, effective and operational."  Ministers also endorsed the Work Programme on
special and differential treatment set out in the Decision on Implementation-Related Issues and
Concerns, and as per paragraph 12.1 of the Decision directed the  Committee on Trade and
Development:
(i) "to identify those special and differential treatment provisions that are already
mandatory in nature and those that are non-bi nding in character, to consider the legal
and practical implications for developed and developing Members of converting
special and differential treatment measures into mandatory provisions, to identifythose that Members consider should be made mandatory, and to report to the General
Council with clear recommendations  for a decision by July 2002;
(ii) to examine additional ways in which special and differential treatment provisions can
be made more effective, to consider ways, including improved information flows, in
which developing countries, in particular the least-developed countries, may be
assisted to make best use of special and differential treatment provisions, and to report
to the General Council with clear recommendations for a decision by July 2002;  and
(iii) to consider, in the context of the Work Programme adopted at the Fourth Session of
the Ministerial Conference, how special and differential treatment may be
incorporated into the architecture of WTO rules."
2. In pursuance of this mandate the Trade Negotiations Committee (TNC) in its meeting held on
28 January - 1 February 2002, agreed that "…the review of all special and differential treatmentprovisions with a view to strengthening them and making them more precise, effective and
operational provided for in paragraph 44 of the Ministerial Declaration shall be carried out by the
Committee on Trade and Development (CTD) in Special Sessions."
3. The report of the Special Session detailing the work that had been carried out in this period up
to July 2002, including recommendations for "the way forward" was considered and approved by theGeneral Council on 31 July 2002.  The General Council while accepting that "a large number of
issues, including some that are complex, have been raised, both in the written submissions and the
ensuing discussions", and that "a significant amount of work remains to be done before Members can
agree on clear recommendations in a number of areas", instructed the Special Session of the CTD to
"proceed expeditiously to fulfil its mandate, as contained in paragraph 44 of the Doha MinisterialDeclaration and paragraph 12 of the Decision on Implementation-Related Issues and Concerns, so asTN/CTD/W/25/Rev.1
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to be able to report to the General Council with clear recommendations for decision by
31 December 2002".  The General Council gave further instructions regarding inter alia  the
consideration of the Agreement-specific proposals, the analysis and examination of cross-cutting
issues, the establishment of the Monitoring Mechanism, consideration of proposals on institutional
arrangements and on technical and financial assistance and training, and consideration of how specialand differential treatment may be incorporated into the architecture of WTO rules.  In December 2002
this deadline was extended and the Special Session was directed to report to the General Council by
the date of the General Council's first meeting of 2003, that is 10-11 February 2003.
4. The Special Session of the CTD met nine times during this period - 7 & 18 October, 17
October, 21 & 23 October, 6 November, 12 No vember, 20 November, 21 & 25 November, 3 & 20
December 2002, and [6 February 2003].  Fifteen submissions were received from Members.  These
addressed a range of issues such as the Enabling Clause, the Monitoring Mechanism, the 'WayForward', and provided responses to questions raised during the consideration of proposals.  These
submissions are listed in Annex I.  Five of the meetings were scheduled as close as possible to the
meetings of other WTO bodies, in order to utilise the expertise in those bodies.  These meetings were
dedicated to discussions on the Agreement-specific pr oposals in the relevant areas.  Annex II contains
a list of Agreements on which proposals relating to specific provisions were discussed at each of thesemeetings.  At the two meetings held on 7 & 18 October and 21 & 25 November 2002 there were
discussions on (i) the remaining Agreement-specific proposals in thematic clusters based primarily on
the categories identified in document WT/COMTD/W77/Rev.1;  and (ii) systemic and cross-cutting
issues.  Discussions on the incorporation of special and differential treatment into the architecture of
WTO rules, and consultations on the Monitoring Mechanism for special and differential treatmentwere also held during the period.
II. AGREEMENT-SPECIFIC PROPOSALS
5. The General Council had instructed the Special Session of the CTD to continue, within the
parameters of the mandate contained in paragraph 44 of the Doha Ministerial Declaration and
paragraph 12 of the Decision on Implementation-Related Issues and Concerns, the analysis andexamination of the various Agreement-specific propo sals and issues that had been raised in the
written submissions and the discussions, and to do so:  (a) on the basis of a possible ordering of these
proposals for consideration in appropriate clusters; and (b) utilising, as appropriate, the expertise
available in other WTO bodies and negotiating groups, and facilitating this through requesting and
receiving reports from these bodies, and where feasible, through the holding of back-to-back meetings
of the Special Session with the meetings of these bodies and groups.
6. In compliance with this instruction, the Agreem ent-specific proposals were considered in two
ways.  Firstly, proposals relating to certain Agreements were considered in meetings held as close as
possible to the meetings of the respective WTO bodies.  This was done in order to utilise the expertise
in those bodies and these meetings were dedicated to discussions on the Agreement-specific proposals
made in those areas.  The remaining Agreement-specific proposals were considered in thematic
clusters which were based primarily on the categories identified in WT/COMTD/W/77/Rev.1, namely(1) "Provisions aimed at increasing the trade opportunities of developing country Members",
(2) "Provisions under which WTO Members should safeguard the interests of developing country
Members", (3) "Flexibility of commitments, of action, and use of policy instruments",
(4) "Transitional time periods", (5) "Technical assistance", (6) "Provisions relating to LDC Members,
other than those already included in clusters 1-5" and (7) "Proposals on provisions not included in theprevious 6 clusters, as per the classification in document WT/COMTD/W/77/Rev.1".  In addition, as
instructed by the General Council, reports were requested from the other WTO bodies and negotiating
groups on work that they might have done in regard to special and differential treatment.  The
responses received from the various WTO bodies have been circulated to Members.TN/CTD/W/25/Rev.1
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7. While the level of engagement increased significantly, and meetings benefited from the back-
to-back format and the involvement of capital-based participants, differences amongst Members,
continued to be apparent, including between the responses provided to many proposals and the views
expressed by proponents as to the possible outcome they expected from the consideration of their
proposals.  There also continued to be notable differences of views on the fora in which some of the
proposals should be considered, and differences as to what a "clear recommendation for decision"
necessarily entailed in regard to the proposals.
8. During the discussions some Members note d that some proposals were already under
consideration within other WTO bodies and could be best addressed in those bodies, including in the
context of the ongoing negotiations in some of these areas.  In regard to a number of other proposals,
the view was expressed that these were of a nature that would affect the existing balance of rights and
obligations.  Many responses included requests for more information, and for clarification, especiallyin regard to the specific difficulties faced in uti lizing existing S&D provisions to which changes were
being sought.  Other Members maintained that the Special Session was the appropriate forum  to
consider all proposals, and that the mandate given by Ministers, in their view, envisaged the
possibility of making changes to provisions,  so as to make them more precise, effective and
operational and/or mandatory.  The non-mandatory and imprecise character of many S&D provisionswas also cited frequently as being a source of difficulty in utilizing these provisions.
9. However, on some proposals, the responses given indicated the possibility of agreeing on
ways and measures to meet the concerns identified. Based on these responses the Chairman, on his
own responsibility, identified a number of proposals on which it seemed that it may be possible to
make recommendations for an immediate decision.  The consultations in December 2002, and later inJanuary-February 2003, focussed on these proposals in an effort to find convergence on the language
for possible recommendations. At the same time other proposals identified by the proponents were
also subjected to detailed consideration by the Membership during this period.  These intensive
consultations have resulted in recommendations for decision in respect of some of these Agreement-
specific proposals.  These propo sed decisions are at Annex III.
III. CROSS-CUTTING ISSUES
10. A number of systemic and institutional cross-cutting issues were raised both in submissions
from Members, as well as in the discussion on those submissions, in the period up to July 2002.
These included issues relating to the principles and objectives of special and differential treatment; a
single or multi-tiered structure of rights and obligations; coherence;  bench marking;  technical
assistance and capacity building;  transition periods;  trade preferences including the Enabling Clause;
utilisation; and universal or differentiated treatment, including graduation.  In considering the reportof the Special Session of the CTD in July 2002, the General Council instructed the Special Session to
continue the analysis and examination of the various cross-cutting issues and proposals that were
raised, within the parameters of the mandate contained in paragraph 44 of the Doha Ministerial
Declaration and paragraph 12 of the Decision on Implementation-Related Issues and Concerns.
11. The cross-cutting issues were considered in two meetings held on 7 & 18 October 2002, and
on 21 & 25 November 2002.  Discussions took place on the principles and objectives of special and
differential treatment, coherence, bench-marks, technical assistance and capacity building, transition
periods, utilisation, trade preferences and related issues, including the Enabling Clause, differentiated
treatment and graduation.  While the discussions have shown convergent views in some areas,
especially on the proposals relating to coherence and benchmarking, there are evidently majordifferences of opinion on most cross-cutting issues.  Some Members felt that these were important
and, in some cases , fundamental issues, which should be examined in greater depth.  These Members
felt that an improved understanding on these issues would facilitate consensus on the Agreement-
specific proposals. Other Members felt that the principles and objectives of S&D treatment were
already reflected in Part IV of GATT 1994 and also  questioned whether these issues were within theTN/CTD/W/25/Rev.1
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mandate of the Doha Ministerial Declaration and of the Decision on Implementation-Related Issues
and Concerns.
12. There were further discussions on the Enabling Clause as a result of additional submissions
on this issue.  Many Members emphasized the importance of the non-discriminatory application of the
Enabling Clause to all developing countries.  Some Members referred to the need to ensure thatspecial and differential treatment, including through waivers, should not prejudice the interests of
other developing countries although the special situation was recognised.  Some Members were of the
view that there should be flexibility in the application of special and differential treatment, including
through preferential treatment.  They considered that, in some cases , differentiation amongst
developing country Members would be necessary if special and differential treatment was to be made
effective and targeted.  Others felt that any such flexibility should not prejudice the rights of other
developing country Members.  The question of the definition of developing countries was also raisedin this context, with some Members saying that such a definition was necessary to make special and
differential treatment more precise, effective and operational and to confer legal predictability and
certainty regarding the beneficiaries.  A large number of Members however disagreed, saying that any
attempt to differentiate amongst, or define a deve loping country went beyond what the Ministers had
mandated at Doha.
IV. THE MONITORING MECHANISM
13. In July 2002, the General Council agreed to establish a Monitoring Mechanism for special and
differential treatment.  It instructed the Special Session of the CTD to elaborate for the Council's
approval, the functions, structure and terms of reference of such a Mechanism.  A number of new
submissions were introduced, and possible elements relating to the establishment of the MonitoringMechanism discussed.  There was convergence of views on some matters, such as the structure and
possible role of the Mechanism and the sources of information for it to conduct its work.  However,
some important areas of difference, including on the institutional structure of the Mechanism and the
timing for its coming into force, remain.  The general view is that it should be an open-ended body.
Some Members believe that the monitoring of special and differential treatment should be carried outby the Regular CTD, or by the CTD in dedicated sessions, while other Members are of the view that a
Sub-Committee of the CTD should be established for this purpose.  There are also significant
differences of opinion on the timing for coming into force of the Mechanism.  Some Members
consider that the Mechanism should come into force immediately, or in the very near term.  Other
Members have expressed the view that the first task is to strengthen special and differential provisions
in accordance with the mandate and that this should be done before defining the modalities of
operation of the Mechanism and deciding when it should come into force.
V. TECHNICAL & FINANCIAL ASSISTANCE AND TRAINING
14. The General Council had instructed the Special Session to submit the proposals on criteria for
technical and financial assistance and training, to the CTD in Regular Session, for inclusion of any
agreed elements in future Technical Assistance Plans.  This was to be done without prejudice to
further discussion in this regard in the Special Sessions of the CTD.
15. The Special Session of the CTD has held additional discussions on technical assistance and
capacity building.  The proposal on the criteria for technical and financial assistance and training from
the African Group was submitted to the CTD in Regular Session, and was taken account of in the
consideration and finalisation of the elements of the Technical Assistance Plan for 2003.  This
proposal and suggested elements are also to be considered in future Technical Assistance Plans.TN/CTD/W/25/Rev.1
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VI. INCORPORATION OF SPECIAL AND DIFFERENTIAL TREATMENT INTO THE
ARCHITECTURE OF WTO RULES
16. Finally, the General Council instructed the Special Session of the CTD to consider how
special and differential treatment may be incor porated into the architecture of WTO rules, in
accordance with Paragraph 12.1(iii) of the Ministerial Decision on Implementation-Related Issues andConcerns.  Only a preliminary discussion has been held on this matter.  Elements of a possible
Framework Agreement on special and differential treatment were introduced.  There was also a
reference to the GATS-type modalities as a possi ble approach towards incorporating special and
differential treatment into the architecture of WTO rules.  It should be noted that some of the elements
put forward and the discussions held, with respect to some of the cross-cutting issues, also appear to
have a bearing on this work.  This aspect of the mandate requires further discussion.
VII. THE WAY FORWARD
17. Although the Special Session has considered many of the Agreement-specific proposals, both
in open-ended informal meetings and smaller plurilateral consultations, positions could not be bridged
on most of them.
18. An important area of difference has been the interpretation of some aspects of the Doha
mandate.  While Members recognized the importance that Ministers attached to the S&D workprogramme, and accepted the need to review all S& D provisions "with a view to strengthening them
and making them more precise, effective and operational", there were significant differences on how
this could be achieved.  Some Members considered that one way to make S&D provisions more
precise, effective and operational, was to make them mandatory by changing the existing language of
some of the 'best endeavour' provisions, and that doing so was part of the mandate.  Others did not
wish to consider amending the text of the Agreements or otherwise altering what they considered to
be the existing balance of rights and obligations.  Some delegations held the view that such proposals
might be best referred to negotiating bodies, while others did not consider that this was a course
consistent with the Doha mandate.  They expres sed the view that proposals could in any event be
raised directly in negotiating groups and other bodies.
19. Many Members expressed concern that they would be unable to maintain the rigorous pace of
work that had been taking place in the Special Session, since they would need to focus on an
increasing number of other critical issues during the run-up to the Cancún Ministerial Conference.
20. Accordingly, the Special Session recommends that:
(i) the General Council approve the recommendations on the Agreement-specific
proposals containe d in Annex III.
(ii) in regard to the remaining Agreement-specific proposals, the General Council agrees
to
Option I
direct the Special Session to continue work on the proposals and to report to the
General Council with clear recommendations for a decision by [31 July 2003].
Option II
instruct the Special Session to suspend discussions on the proposals.  In doing so, the
General Council recognises that Members, if they so wish, may pursue any of these
Agreement-specific proposals in the negotiating groups or other WTO bodies.TN/CTD/W/25/Rev.1
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Option III
instruct the Special Session to refer proposals that relate to issues in the on-going
negotiations or the Doha Work Programme to the respective negotiating groups and
other WTO bodies.  The General Council also directs that the work on Agreement-
specific proposals that have not been referred be [suspended] [continued in theSpecial Session].
(iii) the General Council instruct the Special Session of the CTD to continue its work on
how special and differential treatment may be incorporated into the architecture of
WTO rules, in accordance with Paragraph 12.1(iii) of the Ministerial Decision on
Implementation-Related Issues and Concerns.  Cross-cutting issues may also be
discussed during the course of this work.
(iv) the General Council also instruct the Special Session of the CTD to continue work on
the functions, structure and terms of reference of the Monitoring Mechanism, taking
into account the proposals made by the African Group, and the discussions that have
taken place thereon in Special Sessions of the CTD.  The decision on the timing for
coming into force of the Monitoring Mechanism will be taken by the General Council
at the time of the approval of the Special  Session's recommendations on the functions,
structure and terms of reference of the Mechanism.
(v) in view of the fact that the Special Session could benefit in its continuing work from
receiving reports from other WTO bodies on their consideration of S&D issues, the
General Council instruct these bodies to provide such reports to the Special Session
of the CTD.
21. The General Council instructs the Special Session to report on all aspects of its work to the
General Council in July 2003.
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ANNEX I
SUBMISSIONS RECEIVED IN THE SPECIAL SESSION OF
THE COMMITTEE ON TRADE AND DEVELOPMENT
AUGUST 2002 – JANUARY 2003
• TN/CTD/W/13, TN/CTD/W/20 and TN/CTD/W/26 from the European Communities
• TN/CTD/W/14 from Switzerland
• TN/CTD/W/15 from Paraguay
• TN/CTD/W/16 from Hungary
• TN/CTD/W/17, TN/CTD/W/21 and TN/CTD/W/22 from Canada
• TN/CTD/W/18, TN/CTD/W/23 and TN/CTD/W/28 (to be issued)  from the African Group
• TN/CTD/W/19 and TN/CTD/W/27 (to be issued) from the United States
• TN/CTD/W/24 from EgyptTN/CTD/W/25/Rev.1
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ANNEX II
AGREEMENTS ON WHICH SPECIFIC PROPOSALS WERE DISCUSSED DURING
"BACK-TO-BACK" MEETINGS
17 OCTOBER 2002
• Agreement on Technical Barriers to Trade
21 & 23 OCTOBER 2002
• Agreement on Implementation of Article VI of the GATT 1994 (Anti-Dumping)
• Agreement on Subsidies & Countervailing Measures
• General Agreement on Trade in Services
• Agreement on Safeguards
6 NOVEMBER 2002
• Agreement on Sanitary and Phytosanitary Measures
12 NOVEMBER 2002
• Understanding on Rules and Procedures Governing the Settlement of Disputes
20 NOVEMBER 2002
• Agreement on AgricultureTN/CTD/W/25/Rev.1
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ANNEX III
AGREEMENT-SPECIFIC PROPOSALS ON WHICH RECOMMENDATIONS FOR
DECISION ARE BEING MADE
GENERAL AGREEMENT ON TRADE IN SERVICES (GATS)
Article IV:3
The General Council agrees that the information to be provided by Members shall indicate
how the requirement that special priority be given to least-developed country Members in theimplementation of paragraphs 1 and 2 of Article IV is being met, and that contact points, in this
context, shall provide information of particular interest to services suppliers from least-developed
country Members.
GENERAL AGREEMENT ON TRADE IN SERVICES (GATS)
Article XXV
The General Council  instructs the WTO Secretariat to pursue with a view to concluding
arrangements with relevant international institutions that have the technical assistance capacity to
assist developing and least-developed country Members in addressing their supply-side and
infrastructural constraints and their development need s in the services sector.  This shall be without
prejudice to the prerogative of the Council for Trade in Services to decide upon technical assistance to
developing countries which shall be provided at the multilateral level by the Secretariat, in accordance
with Article XXV.2.
AGREEMENT ON TRADE-RELATED ASPECTS OF INTELLECTUAL PROPERTY
RIGHTS (TRIPS)
Article 67
The General Council agrees that technical and financial cooperation, in accordance with
Article 67, shall be provided on request and on mutually agreed terms and conditions, with due
consideration given to comprehensive programmes comprising such components as improving the
relevant legal framework in line with the general obligations of the Agreement, enhancing
enforcement mechanisms, increasing training of personnel at the various levels, assisting in thepreparation of laws and procedures in an effort to encourage and monitor technology transfer, making
use of the rights and policy flexibility in the Agreement, and strengthening or establishing
coordination between intellectual property rights, investment and competition authorities.
The General instructs the Council for Trade-Related Intellectual Property Rights to annually
review the state of implementation of the Agreement between the World Intellectual Property
Organization and the World Trade Organisation, ta king into account opportunities for technical
assistance as provided for in the Agreement.TN/CTD/W/25/Rev.1
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DIFFERENTIAL AND MORE FAVOURABLE TREATMENT, RECIPROCITY AND
FULLER PARTICIPATION OF DEVELOPING COUNTRIES (ENABLING CLAUSE):
DECISION OF 28 NOVEMBER 1979
The General Council confirms that the terms and conditions of the Enabling Clause shall
apply when action is taken by Members under the provisions of this Clause.
GENERAL AGREEMENT ON TRADE IN SERVICES (GATS)
Article IV
Pursuant to Article IV.3 of the GATS, in all services negotiations, whether broad-based
rounds of negotiations or separate negotiations on specific sectors, modalities shall be developed in
order to allow the priorities of least-developed country Members to be presented and duly taken intoaccount.
GENERAL AGREEMENT ON TRADE IN SERVICES (GATS) - ANNEX ON
TELECOMMUNICATIONS
Paragraph 6 of the Annex on Telecommunications
The General Council instructs the Council for Trad e in Services to put in place arrangements
for prompt notification of any measures taken with regard to the implementation of subparagraphs (a)
to (d) of paragraph 6 of the Annex on Telecommunications.
RULES RELATING TO NOTIFICATION PROCEDURES
Recognizing the practical difficulties faced by least-developed country Members in abiding
fully by their notification obligations, the General Council instructs the Sub-Committee on Least-
Developed Countries to examine possible improvements to the notification procedures for least-developed country Members, taking into account the experience regarding Secretariat produced
reports that helped fulfil some of these requirements.  In conducting its examination, the Sub-
Committee shall seek the input of relevant WTO bodies, which may be in a position to advise on
practical means for improving the notification procedures in relation to least-developed country
Members, for example the possibility of longer timeframes, specified exemptions and simplified
procedures for notifications, and cross-notifications.  The Committee on Trade and Development shall
forward the Sub-Committee's report to the General Council by 31 December 2003 for appropriateaction.TN/CTD/W/25/Rev.1
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UNDER-STANDING ON RULES AND PROCEDURES GOVERNING THE SETTLEMENT
OF DISPUTES (DSU)
Article 8.10
Pursuant to Article 8.10 of the DSU, the Genera l Council agrees that in disputes between a
developing country Member and a developed country Member, at least one panellist shall be from a
developing country Member, unless the developing country Member party to the dispute waives thisright.
AGREEMENT ON RULES OF ORIGIN
In regard to  preferential rules of origin under the Common Declaration in Annex II to the Agreement,
the General Council agrees that in their arrangements for mutual reduction or elimination of tariff ornon-tariff barriers, developing and least-developed country Members shall have the right to adopt
preferential rules of origin designed to achieve trade policy objectives relating to their rapid economic
development, particularly through generating regional trade.
Furthermore, the General Council instructs the Director-General to take action to facilitate the
increased participation of developing and least-developed country Members in the activities of the
Technical Committee on Rules of Origin of the Worl d Customs Organisation as well as to coordinate
with this  organization in identifying technical and financial assistance needs of developing and least-
developed country Members, and report to the Committee on Rules of Origin and the Council for
Trade in Goods periodically, and the General Council  as appropriate.
DECISION ON MEASURES IN FAVOUR OF LEAST-DEVELOPED COUNTRIES
PARAGRAPH 2(v) –
The General Council agrees that the WTO through its participation in the Integrated
Framework and JITAP [and other relevant institutions] will work to ensure that supply-side
constraints of the LDCs are identified in the Diagnostic Trade Integration Studies (DTIS) and are
addressed in the implementation and follow-up taking into account the specific circumstances of each
beneficiary country.  The General Council also instructs the Sub-Committee of the LDCs to undertake
a biennial review of the implementation of the DTIS and to monitor the possible impact of assistancethat is targeted towards the diversification of exports from LDCs, including through comparing the
composition and concentration of LDCs' export structures over time and across LDCs and though the
establishment of other relevant indicators.
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