RESTRICTEDWORLD TRADE
ORGANIZATIONWT/COMTD/W/77
25 October 2000
(00-4433)
Committee on Trade and Development
IMPLEMENTATION OF SPECIAL AND DIFFERENTIAL TREATMENT
PROVISIONS IN WTO AGREEMENTS AND DECISIONS
Note by Secretariat
IMPLEMENTATION OF SPECIAL AND DIFFERENTIAL TREATMEN T ...............................1
PROVISIONS IN WTO AGR EEMENTS AND DE CISIONS...........................................................1
I. INTRO DUCTION ................................................................................................................. ...3
II. OVERVIEW.................................................................................................................... ..........3
A. SPECIAL AND DIFFERENTIAL TREATMENT :  A TYPOLOGY ____________________________   3
B. DATA RELATING TO THE IMPLEMENTATION OF SPECIAL AND DIFFERENTIAL
TREATMENT PROVISIONS _____________________________________________________ 4
C. T ABLE 1:  S PECIAL AND DIFFERENTIAL TREATMENT PROVISIONS BY TYPE AND
AGREEMENT _______________________________________________________________ 7
III. SPECIAL AND DIFFERENTIAL TREATMENT: INFORMATION BY
AGREEM ENT. ..................................................................................................................... ....9
A. G ENERAL AGREEMENT ON TARIFFS AND TRADE 1994_______________________________ 9
B. A GREEMENT ON AGRICULTURE :_______________________________________________ 23
C. D ECISION ON MEASURES CONCERNING THE POSSIBLE NEGATIVE EFFECTS OF THE
REFORM PROGRAMME ON LEAST -DEVELOPED AND NET FOOD-IMPORTING
DEVELOPING COUNTRIES : ___________________________________________________ 28
D. S ANITARY AND PHYTO -SANITARY MEASURES . ___________________________________ 31
E. A GREEMENT ON TEXTILES AND CLOTHING ______________________________________ 36
F. T HE AGREEMENT ON TECHNICAL BARRIERS TO TRADE ____________________________ 39
G. T RADE -RELATED INVESTMENT MEASURES ______________________________________ 45
H. A GREEMENT ON IMPLEMENTATION OF ARTICLE VI (A NTI-DUMPING ) OF THE GATT
1994 ____________________________________________________________________ 47
I. A GREEMENT ON IMPLEMENTATION OF ARTICLE VII OF THE GATT 1994, AND THE
DECISION ON TEXTS RELATING TO MINIMUM VALUES AND IMPORTS BY SOLE AGENTS ,
SOLE DISTRIBUTORS AND SOLE CONCESSIONAIRES .________________________________ 49
J. D ECISION ON TEXTS RELATING TO MINIMUM VALUES AND IMPORTS BY SOLE AGENTS ,
SOLE DISTRIBUTORS AND SOLE CONCESSIONAIRES .________________________________ 52
K. A GREEMENT ON IMPORT LICENSING PROCEDURES . ________________________________ 53WT/COMTD/W/77
Page 2
L. A GREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES ______________________ 54
M. A GREEMENT ON SAFEGUARDS .________________________________________________ 60
N. G ENERAL AGREEMENT ON TRADE IN SERVICES ___________________________________ 61
O. T HE AGREEMENT ON TRADE -RELATED ASPECTS OF INTELLECTUAL PROPERTY
RIGHTS __________________________________________________________________ 66
P. U NDERSTANDING ON RULES AND PROCEDURES GOVERNING THE SETTLEMENT OF
DISPUTES .________________________________________________________________ 70
Q. L EAST -DEVELOPED COUNTRIES _______________________________________________ 75WT/COMTD/W/77
Page 3
I. INTRODUCTION
1. This Note has been prepared at the request of the Committee on Trade and
Development (CTD) pursuant to the decision by the CTD at its 29th Session on 28 July 2000.  The
objective of this paper is to provide an overview of the implementation of special and differential
treatment provisions of the WTO agreements and decisions.  It builds on, and updates, information
contained in WT/COMTD/W/35 and WT/COMTD/W/66.  Where available, information relating tothe measurement of the  implementation of specific provisions is provided, along with comments and
statements made by Members regarding the implementation of specific provisions in the various
WTO bodies overseeing the implementation and administration of the different WTO agreements.
The structure of the paper is as follows:  Section II consists of a general overview of special and
differential treatment across the whole range of WTO agreements.  The typology used to classify
special and differential treatment provisions is introduced, and a breakdown of special and differential
treatment provisions by type and agreement is provided.  Information is given regarding whether dataexist to measure the implementation of the various special and differential treatment provisions.
Section III consists of a series of tables, which for each WTO agreement, states the special and
differential treatment provisions specific to each of them, and records information concerning their
implementation (including, where available, numerical data on the extent of implementation) along
with the statements made by Members.
II. OVERVIEW
A. 
SPECIAL AND DIFFERENTIAL TREATMENT :  A TYPOLOGY
2. The universe of special and differential treatment consists of 145 provisions spread across the
different Multilateral Agreements on Trade in Goods; the General Agreement on Trade in Services;
The Agreement on Trade-Related Aspects of Intellectual Property; the Understanding on Rules andProcedures Governing the Settlement of Disput es; and various Ministerial Decisions.  Of the
145 provisions, 107 were adopted at the conclusion of the Uruguay Round, and 22 apply to
least-developed country Members only.
3. For the purposes of this paper, the various special and differential treatments provisions have
been classified according to the following six- fold typology which has been developed by the
Secretariat:
(i) provisions aimed at increasing the trade opportunities of developing country
Members;
(ii) provisions under which WTO Members should safeguard the interests of developing
country Members;
(iii) flexibility of commitments, of action, and use of policy instruments;
(iv) transitional time periods;
(v) technical assistance;
(vi) provisions relating to least-developed country Members.
4. It will be recalled that this typology was us ed in document WT/COMTD/W/66 to collate and
present information communicated by Members in response to a questionnaire sent out by the
Secretariat in December 1998.WT/COMTD/W/77
Page 4
5. Table [1] provides a numerical breakdown of special and differential treatment provisions by
type and by agreement.  The column on the far left marked "Total by Agreement" gives the total
number of special and differential provision by agreement across the different types of category, while
the row marked "total by type" gives the total number of special and differential treatment provisions
by each of the six types across the different agreements. Provisions under which WTO Members
should safeguard the interest of developing country Members (49 in total) are the most numerous inthe WTO agreements, followed by flexibility provisions (30 total).  Provisions aimed at expanding the
trade opportunities of developing country Members are the least common, with twelve such
provisions across the range of WTO agreements.
6. The tables in Section III present detailed information on an agreement by agreement basis on
the implementation of special and differential treatment provisions, based on information
communicated by Members.
1  The information available provides the opportunity to ascertain to what
extent the implementation of special and differential treatment provisions can be measured.  Theprecise nature of the data on the basis of which such measurements can be made depends on the type
of special and differential treatment provision considered.  For instance, in the case of provisions
relating to transitional time periods, the relevant data are based on  notifications to the secretariat by
Members which invoke recourse to such transition time periods.  In the case of provisions relating to
technical assistance, data used are communications by Members on the delivery of technicalassistance activities pursuant to the relevant provisions of the different WTO agreements.  The
available data show that some measurement of implementation can be provided for nearly 80 per cent
of all special and differential treatment provisions of the WTO agreements.  In the remaining cases,
no objective information was available to provide any degree of measurement of the implementation
of special and differential treatment provision.
B. 
DATA RELATING TO THE IMPLEMENTATION OF SPECIAL AND DIFFERENTIAL TREATMENT
PROVISIONS
7. The following points need to be borne in mind when considering data on the implementation
of special and differential treatment provisions.  Fi rst, the data may be inco mplete: this implies that
even though it is possible to determine whether the implementation of a particular provision ismeasurable, the full extent of its actual implementation may not be adequately captured by the data
currently available.  Secondly, the fact that it is not currently possible to measure the implementation
of some provisions does not necessarily mean that the implementation of such provisions is inherently
unmeasurable.  And finally, the issue of measurement is quite separate from any qualitative discussion
on the implementation of special and differential treatment.  The data provided do not prejudgewhatever conclusion Members may wish to reach on matters such as the effectiveness of the
implementation of special and differential treatment, or the concerns Members may have with regard
to the operation of special and differential treatment provisions.  Such aspects of the discussion are
captured in Section III, which, in addition to data, documents views expressed by Members on the
implementation of special and differential treatment provisions.
8. Provisions aimed at increasing the trade opportunities of developing country Members:  As
shown in table 1, there are twelve such provisions in total across the following four agreements and
one decision:  GATT 1994 (Articles XXXVI-XXXVIII); Agriculture; Textiles and Clothing; the
GATS; and the Enabling Clause.  These provisions all consist of actions to be taken by Members in
order to increase the trade opportunities available to developing countries.  In eleven of the twelve
cases, data are available to measure implementation.
                                                     
1 Notifications; Formal Communications; Reports by Panels, the Appellate Body, and arbitrators;
Reports of the Trade Policy Review Body; and Reports of Formal Meetings.WT/COMTD/W/77
Page 5
9. Provisions under which WTO Members should sa feguard the interests of developing country
Members:  As shown in table 1, there are 49 such provisions across the following 13 WTO
agreements and two decisions: Part IV of GATT 1994; Application of SPS Measures; Textiles and
Clothing; Technical Barriers to Trade; Implementation of Article VI of GATT 1994; Implementation
of Article VII of GATT 1994; Import Licensing Procedures; Subsidies and Countervailing Measures;
Safeguards; GATS; TRIPS; the Understanding on Rules and Procedures Governing the Settlement ofDisputes; the Decision on Measures Concerning the Possible Negative Effects of the Reform
Programme on Least-Developed and Net Food-Importin g Developing Countries and the Decision on
texts relating to Decision on Texts Relating to Minimum Values and Imports by Sole Agents, Sole
Distributors and Sole Concessionaires.
10. These provisions concern either actions to be taken by Members, or actions to be avoided by
Members, so as to safeguard the interests of developing country Members.  Data are available to
measure the implementation of 33 of the 49 provisions.  Each of the agreement cited above contains atleast one special and differential treatment provision in this category, for which data exist to measure
implementation, and in no case is the proportion of provisions for which data exist to measure
implementation lower than 50 per cent.
11. Flexibility of commitments, of action, and use of policy instruments:  As shown in table 1,
there are 30 such provisions across the following nine different WTO agreements:  GATT 1994
(Article XVIII and Article XXXVI); the Agreement on Agriculture; Technical Barriers to Trade;
Trade-Related Investment Measures; Subsidies and Countervailing Measures; GATS; Understanding
on Rules and Procedures Governing the Settlement of Disputes; GATT 1994 Article XVIII; and the
Enabling Clause.
12. These provisions relate to: actions developing countries may undertake through exemptions
from disciplines otherwise applying to the member ship in general; exemptions from commitments
otherwise applying to Members in general; or a reduced level of commitments developing countries
may choose to undertake when compared to Members in general.  Data are available to measure the
implementation of such measures in 27 out of 30 cases. The extent to which developing country
Members currently have recourse to flexibility provisions in varies across the range of agreements:for example, while two developing country Members currently have recourse to the provisions of
Article XVIII:B, data on commitments under the GATS show that developing country Members have
made extensive use of the flexibility provisions available to them.
13. Transitional Time Periods:  As shown in table 1, there are 18 such provisions across the
following eight agreements: Agriculture; Application of SPS Measures; Technical Barriers to Trade;
Trade-Related Investment Measures; Implementation of Article VII of GATT 1994; Import Licensing
Procedures; Subsidies and Countervailing Measures; and Safeguards.
14. These provisions relate to time bound exemptions from disciplines otherwise generally
applicable.2  It is to be noted that some transition time periods in different agreements have elapsed.
In some cases, the relevant provision, in addition to specifying a time-period, include modalities
through which an extension might be sought.  Data exist to measure the implementation of 16 out of
18 of these provisions. In the case of one provision (Article 9.2 of the Safeguards Agreement)information is not available owing to the fact that Members would have recourse to this provision
only after January 2003.  The extent to which developing country Members have made recourse to
transitional time periods varies across the range of agreements:  for instance, 56 developing country
members have had recourse to transition time periods under Article 20.1 of the Customs Valuation
                                                     
2 In the case article 10.2 of the SPS agreement, the transition time-period in question relates to longer
time-frames for compliance to be accorded to products of  interest to developing countries with SPS measures
introduced by Members.WT/COMTD/W/77
Page 6
Agreement, while nine developing country Members are currently seeking an extension of the
transition time-period under Article 5.3 of the TRIMs agreement.
15. Technical Assistance:  As shown in table 1, there are 14 such provisions across the following
six different agreements and one ministerial de cision: Application of SPS Measures; Technical
Barriers to Trade; Implementation of Article VII of GATT 1994; GATS; TRIPS; Understanding on
Rules and Procedures Governing the Settlement of Disputes; and the Decision on NFIDCs.  Data exist
to measure the implementation of 13 out of 14 of these provisions.
16. Provisions relating to least-developed country Members.  As shown in table 1, there are
22 such provisions across seven agreements and three decisions: the Agriculture; Textiles and
Clothing; Technical Barriers to Trade; Trade-Related Investment Measures; GATS; TRIPS;
Understanding on Rules and Procedures Governing the Settlement of Disputes; the Enabling Clause;
the Decision on Measures in Favour of Least-Developed Countries; and the Waiver for preferential
market access for LDCs.
17. These provisions, whose applicability is limited exclusively to the LDCs, all fall under one of
the above five types of provision: five fall into the category of provisions aimed at increasing trade
opportunities; 11 in the category of provisions under which WTO Members should safeguard the
interests of developing country Members; one relating to the flexibility of commitments, of action,
and use of policy instruments; three in the category of transition time periods, and two in the categoryof technical assistance, LDCs.  Data exist to measure the implementation of 17 of these 22 provisions.
All the other provisions which apply to developing countries in general, as well as provisions of the
Decision on NFIDCs and paragraph 27.2 (a) of the agreement on Subsidies and Countervailing
Measures, apply to LDCs.WT/COMTD/W/77
Page 7C. TABLE 1:  S PECIAL AND DIFFERENTIAL TREATMENT PROVISIONS BY TYPE AND AGREEMENT
Agreement(i)
Provisions aimed
at increasing the
trade
opportunities of
developing
country
Members(ii)
Provisions that
require WTO
Members to
safeguard the
interests of
developing country
Members(iii)
Flexibility of
commitments, of
action, and use of
policy instruments(iv)
Transitional time
periods(v)
Technical
assistance(v)
Provisions relating to
measures to assist
least-developed
country MembersTotal by
Agreement
Agriculture andDecision on NFIDCs1
491
131 4
5
Application of SPS
Measures22 1 5
Textiles and Clothing 1 3 26
Technical Barriers to Trade 6 1 1 7 1 16
Trade-Related Investment
Measures12 1 4
Implementation of
Article VI of GATT 19941 1
Implementation of
Article VII of GATT 1994
and Decision on Texts
Relating to MinimumValues and Imports by SoleAgents, Sole Distributors
and Sole Concessionaires1
224 1 8
2
Preshipment inspection 0
Rules of Origin 0
Import Licensing
Procedures31 4
Subsidies and
Countervailing Measures28 6 1 6
Safeguards 1 1 2
GATS 1 1 2 2 1 7
TRIPS 2 1 3 6WT/COMTD/W/77
Page 8
Agreement(i)
Provisions aimed
at increasing the
trade
opportunities of
developing
country
Members(ii)
Provisions that
require WTO
Members to
safeguard the
interests of
developing country
Members(iii)
Flexibility of
commitments, of
action, and use of
policy instruments(iv)
Transitional time
periods(v)
Technical
assistance(v)
Provisions relating to
measures to assist
least-developed
country MembersTotal by
Agreement
Understanding on Rules
and Procedures Governing
the Settlement of Disputes.71 1 2 1 1
GATT 1994 Article XVIII 3 3
GATT 1994 Article
XXXVI43 1 8
GATT 1994
Article XXXVII26 8
GATT 1994
Article XXXVIII25 7
Enabling Clause 1 2 1 4
Decision on Measures in
Favour of Least-Developed
Countries77
Waiver preferential tariff
treatment  of LDCs.11
Total 12 49 30 18 14 22 145WT/COMTD/W/77
Page 9
III. SPECIAL AND DIFFERENTIAL TREATMENT: INFORMATION BY AGREEMENT
A. GENERAL AGREEMENT ON TARIFFS AND TRADE 1994
General Comments with Respect to the General Agreement on Tariffs and Trade 1994
WTO tariff concessions undertaken by developing country Members under Article II of
GATT 1994 have generally been implemented over a longer or extended timeframe compared to
developed countries.  To date, the Secretariat has no information about any WTO Member who has
had difficulty in implementing tariff cuts according to their schedules of concessions and there are no
statements to that effect in the relevant WTO Committees.  Furthermore, Members that have difficulty
in implementing WTO tariff concessions can renegotiate these concessions under Article XXVIII
procedures which are available to all WTO Members and commonly utilized for various reasons.
However, in the TPRM, at least one developing country Member has stated that technical assistance
would be needed to renegotiate tariff concessions made prior to the Uruguay Round.(WT/TPR/S/27 3, page 9)
Article XVIII
Provision Comment
Flexibility of commitments, of action, and use of policy instruments
Section A
7.  (a)  If a contracting party coming within thescope of paragraph 4 ( a) of this Article
considers it desirable, in order to promote theestablishment of a particular industry with aview to raising the general standard of living ofits people, to modify or withdraw a concessionincluded in the appropriate Schedule annexedto this Agreement, it shall notify theCONTRACTING PARTIES to this effect andenter into negotiations with any contractingparty with which such concession was initiallynegotiated, and with any other contractingparty determined by the CONTRACTINGPARTIES to have a substantial interest therein.If agreement is reached between suchcontracting parties concerned, they shall befree to modify or withdraw concessions underthe appropriate Schedules to this Agreement inorder to give effect to such agreement,including any compensatory adjustmentsinvolved.The provision has not been invoked by
developing country Members since the WTOAgreement came into force.
(b)  If agreement is not reached within 60 daysafter the notification provided for insubparagraph ( a) above, the contracting party
which proposes to modify or withdraw theconcession may refer the matter to theCONTRACTING PARTIES which shallpromptly examine it. If they find that theWT/COMTD/W/77
Page 10
Provision Comment
contracting party which proposes to modify or
withdraw the concession has made every effortto reach an agreement and that thecompensatory adjustment offered by it isadequate, that contracting party shall be free tomodify or withdraw the concession if, at thesame time, it gives effect to the compensatoryadjustment.  If the CONTRACTING PARTIESdo not find that the compensation offered by acontracting party proposing to modify orwithdraw the concession is adequate, but findthat it has made every reasonable effort tooffer adequate compensation, that contractingparty shall be free to proceed with suchmodification or withdrawal.  If such action istaken, any other contracting party referred toin subparagraph ( a) above shall be free to
modify or withdraw substantially equivalentconcessions initially negotiated with thecontracting party which has taken the action.
Section B8.  The contracting parties recognize thatcontracting parties coming within the scope ofparagraph 4 ( a) of this Article tend, when they
are in rapid process of development, toexperience balance of payments difficultiesarising mainly from efforts to expand theirinternal markets as well as from the instabilityin their terms of trade.
9.  In order to safeguard its external financial
position and to ensure a level of reservesadequate for the implementation of itsprogramme of economic development, acontracting party coming within the scope ofparagraph 4 ( a) of this Article may, subject to
the provisions of paragraphs 10 to 12, controlthe general level of its imports by restrictingthe quantity or value of merchandise permittedto be imported; Provided that the import
restrictions instituted, maintained or intensifiedshall not exceed those necessary: (a)  toforestall the threat of, or to stop, a seriousdecline in its monetary reserves, or(b)  in the case of a contracting party withinadequate monetary reserves, to achieve areasonable rate of increase in its reserves.
Due regard shall be paid in either case to anySince the WTO came into effect, five
developing country Members have ceasedrecourse to Article XVIII:B.  Two Membersstill had recourse to the provisions in 2000.See also section on the Understanding onBalance-of-Payments Provisions ofGATT 1994.WT/COMTD/W/77
Page 11
Provision Comment
special factors which may be affecting the
reserves of the contracting party or its need forreserves, including, where special externalcredits or other resources are available to it,the need to provide for the appropriate use of
such credits or resources.
10.  In applying these restrictions, the
contracting party may determine theirincidence on imports of different products orclasses of products in such a way as to givepriority to the importation of those productswhich are more essential in the light of itspolicy of economic development; Provided that
the restrictions are so applied as to avoidunnecessary damage to the commercial oreconomic interests of any other contracting
party and not to prevent unreasonably the
importation of any description of goods inminimum commercial quantities the exclusionof which would impair regular channels oftrade; and Provided further that the restrictions
are not so applied as to prevent the importationof commercial samples or to preventcompliance with patent, trade mark, copyright
or similar procedures.
11.  In carrying out its domestic policies, the
contracting party concerned shall pay dueregard to the need for restoring equilibrium inits balance of payments on a sound and lastingbasis and to the desirability of assuring aneconomic employment of productive resources.It shall progressively relax any restrictionsapplied under this Section as conditionsimprove, maintaining them only to the extentnecessary under the terms of paragraph 9 ofthis Article and shall eliminate them whenconditions no longer justify such maintenance;Provided that no contracting party shall berequired to withdraw or modify restrictions onthe ground that a change in its developmentpolicy would render unnecessary therestrictions which it is applying under thisSection.
Section C13.  If a contracting party coming within thescope of paragraph 4 ( a) of this Article finds
that governmental assistance is required toSince the WTO Agreement entered into force,
one developing country Member cited this
provision during a dispute.WT/COMTD/W/77
Page 12
Provision Comment
promote the establishment of a particular
industry with a view to raising the generalstandard of living of its people, but that nomeasure consistent with the other provisions ofthis Agreement is practicable to achieve thatobjective, it may have recourse to theprovisions and procedures set out in this
Section.
Understanding on Balance-of-Payments Provisions
General Comments with Respect to the Understanding on Balance-of-payments Provisions
The Committee on Balance-of-payments Restri ctions agreed to a request from a
least-developed country Member for the postponement of full consultations, due before May 1999, to
the year 2000, because of problems caused by flood devastation. Simplified consultations took place
in May 1999 and full consultations will be held in 2000.
In the context of a dispute, a developing country member argued that Article XVIII was the
principle expression of special and differential treatment in GATT 1994. In its findings, the Panelruled that  the measures at issue  applied by the developing country Member  violated – inter alia-
Articles XI:1 and XVIII:11 of GATT 1994 and were not justified by Article XVIII:B. 
3
Whereas 13 developing country Members were making use of Article XVIII in 1990, two
developing country members – including one least-developed country Member – were doing so in
2000.
In the TPRM, the view has been expressed th at, in implementation, hardly any distinction
seemed now to be drawn between Article XII and Article XVIII:B of GATT 1994. (WT/TPR/M/33,
paragraph 9)
Article XXXVI
Provision Comment
Provisions aimed at increasing the trade opportunities of developing country Members
2.  There is need for a rapid and sustained
expansion of the earnings of the less-developedcontracting parties.The current US Dollar value of developing
country merchandise export earnings increasedby a factor of nearly 69 between 1948, at thetime of the inception of the GATT, and theestablishment of the WTO in 1995.(WT/COMTD/W/65 – this document containsmore detailed data on long and short termtrends in trade of developing countryMembers).
3.  There is need for positive efforts designedto ensure that less-developed contractingparties secure a share in the growth ininternational trade commensurate with theThe average trade weighted tariff on industrial
imports from developing Members fell by34 per cent following the conclusion of theUruguay Round.
                                                     
3 WT/DS90/RWT/COMTD/W/77
Page 13
Provision Comment
needs of their economic development.A response to the provisions of paragraphs 3, 4
and 5 may be found in the maintenance ofpreferential tariff and other market accessarrangements maintained under Members' GSPschemes, the GSTP, and other non-reciprocalpreferential arrangements. (some of whichhave been notified in the WT/COMTD/N/--series).  See also the reference to improvedpreferential market access measures forleast-developed countries under Section 7.1above (Decision on Measures in Favour ofLeast-Developed Countries).
4.  Given the continued dependence of manyless-developed contracting parties on theexportation of a limited range of primaryproducts, there is need to provide in the largestpossible measure more favourable andacceptable conditions of access to worldmarkets for these products, and whereverappropriate to devise measures designed tostabilize and improve conditions of worldmarkets in these products, including inparticular measures designed to attain stable,equitable and remunerative prices, thuspermitting an expansion of world trade anddemand and a dynamic and steady growth ofthe real export earnings of these countries so asto provide them with expanding resources fortheir economic development.See also under section on the agreement on
agriculture.
The value of exports of agricultural products
from developing countries increased from USDollars 114 billion in 1990 to US Dollars 167
Billion in 1998 (G/AG/NG/W/6 refers).
5.  The rapid expansion of the economies of
the less-developed contracting parties will befacilitated by a diversification of the structureof their economies and the avoidance of anexcessive dependence on the export of primary
products.  There is, therefore, need for
increased access in the largest possible measureto markets under favourable conditions forprocessed and manufactured products currentlyor potentially of particular export interest to
less-developed contracting parties.See above.
The share of manufactures in developing
country exports rose from 52.1 percent in 1990
I to 64.8 per cent in 1997.WT/COMTD/W/77
Page 14
Provision Comment
Provisions under which WTO Members should safeguard the interests of developing
country Members
6.  Because of the chronic deficiency in the
export proceeds and other foreign exchangeearnings of less-developed contracting parties,there are important inter-relationships betweentrade and financial assistance to development.There is, therefore, need for close andcontinuing collaboration between theCONTRACTING PARTIES and theinternational lending agencies so that they cancontribute most effectively to alleviating theburdens these less-developed contractingparties assume in the interest of their economicdevelopment.Ministers adopted the Declaration on the
Contribution of the World Trade Organisationto Achieving Greater Coherence in GlobalEconomic Policy-making, which recognise,inter alia  that difficulties the origins of which
lie outside the trade field cannot be addressedthrough measures taken in the trade field
alone.
In November 1996 the General Council
approved WTO agreements with the IMF andthe World Bank.  The agreements aimed tostrengthen inter-agency relations.
The High-Level Meeting for Least-Developed
Countries' Trade Development inOctober 1997 endorsed the participation of sixinter-governmental agencies including the IMFand World Bank in the Integrated Frameworkfor Trade-Related Technical Cooperation forleast-developed countries.  In July 2000, thesix core agencies agreed to make every effortto support the integration of trade, trade-related technical assistance, and capacity-building into the national developmentstrategies and plans of LDCs.  This would beensured principally through such instrument asPoverty Reduction Strategy Papers (PRSPs)and would influence other developmentframeworks such as the United NationsDevelopment Assistance Framework(UNDAF). In doing so, these efforts willensure dynamic interaction and dialogue amongLDCs, donors and agencies, fully respectingcountry ownership. (WT/LDC/SWG/IF/2)
7.  There is need for appropriate collaborationbetween the CONTRACTING PARTIES,other intergovernmental bodies and the organsand agencies of the United Nations system,whose activities relate to the trade andeconomic development of less-developed
countries.A global arrangement for cooperation between
WTO and the United Nations was concludedon 29 September 1995 by an exchange ofletters between the Director-General and the
UN Secretary General (WT/GC/W/10).
See aboveWT/COMTD/W/77
Page 15
Provision Comment
9.  The adoption of measures to give effect to
these principles and objectives shall be a matterof conscious and purposeful effort on the partof the contracting parties both individually andjointly.See above
Flexibility of commitments, of action, and use of policy instruments
8.  The developed contracting parties do not
expect reciprocity for commitments made bythem in trade negotiations to reduce or removetariffs and other barriers to the trade of less-developed contracting parties.See above under paragraphs 3, 4 and 5.  In
addition, this provision was taken into accountduring the negotiations in the Uruguay Round.This is reflected both in the extent of bindingson industrial products and the average level oftariffs of the developing country Members.
Article XXXVII
Provisions aimed at increasing the trade opportunities of developing country Members
1.  The developed contracting parties shall tothe fullest extent possible - that is, except whencompelling reasons, which may include legalreasons, make it impossible give effect to thefollowing provisions:
(a) Accord high priority to the reduction and
elimination of barriers to products currently orpotentially of particular export interest to less-developed contracting parties, includingcustoms duties and other restrictions whichdifferentiate unreasonably between suchproducts in their primary and in their
processed forms;A similar provision has been taken into account
in the reduction of tariffs on tropical productsduring the Uruguay Round.  See underSection 2.1 above (Agreement on Agriculture).
4.  Less-developed contracting parties agree totake appropriate action in implementation ofthe provisions of Part IV for the benefit of thetrade of other less-developed contractingparties, in so far as such action is consistentwith their individual present and futuredevelopment, financial and trade needs takinginto account past trade developments as well asthe trade interests of less-developed contracting
parties as a whole.Announcements of new preferential market
access measures in favour of least-developedcountries were made by a number ofdeveloping countries at the High-LevelMeeting on Integrated Initiatives for Least-Developed Countries' Trade Development inOctober 1997 and at t a meeting of the WTO's
General Council in May 2000.
One notification has been submitted under the
waiver for the preferential treatment of last
developed countries  (WT/COMTDW/12).
Market access conditions in 23 major markets,
including 16 developing countries or transitioneconomies, for the exports of least developedcountries is recorded in documentsWT/COMTD/LDC/W/16 and
WT/COMTD/LDC/W/17.WT/COMTD/W/77
Page 16
Provision Comment
Provisions under which WTO Members should safeguard the interests of developing
country Members
(b)  refrain from introducing, or increasing the
incidence of, customs duties or non-tariffimport barriers on products currently orpotentially of particular export interest to less-developed contracting parties;  and
(c)  (i) refrain from imposing new fiscal
measures, and (ii) in any adjustments of fiscalpolicy accord high priority to the reduction andelimination of fiscal measures, which wouldhamper, or which hamper, significantly thegrowth of consumption of primary products, inraw or processed form, wholly or mainlyproduced in the territories of less-developedcontracting parties, and which are appliedspecifically to those products.Prior to the establishment of the WTO, the
implementation of this  provision has arisen inthe context of measures taken by someMembers  (for example see L/3573 and
WT/COMTD/W/239).
2.   (a) Whenever it is considered that effect is
not being given to any of the provisions ofsubparagraph ( a), (b) or (c) of paragraph 1, the
matter shall be reported to theCONTRACTING PARTIES either by thecontracting party not so giving effect to therelevant provisions or by any other interestedcontracting party. (b) (i) The CONTRACTINGPARTIES shall, if requested so to do by anyinterested contracting party, and withoutprejudice to any bilateral consultations thatmay be undertaken, consult with thecontracting party concerned and all interestedcontracting parties with respect to the matterwith a view to reaching solutions satisfactoryto all contracting parties concerned in order tofurther the objectives set forth inArticle XXXVI.  In the course of theseconsultations, the reasons given in cases whereeffect was not being given to the provisions ofsubparagraph ( a), (b) or ( c) of paragraph 1
shall be examined. (ii) As the implementationof the provisions of subparagraph ( a), (b) or
(c) of paragraph 1 by individual contracting
parties may in some cases be more readilyachieved where action is taken jointly withother developed contracting parties, suchconsultation might, where appropriate, bedirected towards this end.No request for consultations has been made
either by a Member giving effect to theprovisions of sub-paragraphs a, b and c ofparagraph 1 or by any other interestedMember.WT/COMTD/W/77
Page 17
Provision Comment
(iii) The consultations by the CONTRACTING
PARTIES might also, in appropriate cases, bedirected towards agreement on joint actiondesigned to further the objectives of thisAgreement as envisaged in paragraph 1 of
Article XXV.
3.  The developed contracting parties shall:
(a)  Make every effort, in cases where agovernment directly or indirectly determinesthe resale price of products wholly or mainlyproduced in the territories of less-developedcontracting parties, to maintain trade marginsat equitable levels.
(b)  Give active consideration to the adoption
of other measures designed to provide greaterscope for the development of imports fromless-developed contracting parties andcollaborate in appropriate international actionto this end.
(c)  Have special regard to the trade interestsof less-developed contracting parties whenconsidering the application of other measurespermitted under this Agreement to meetparticular problems and explore all possibilitiesof constructive remedies before applying suchmeasures where they would affect essentialinterests of those contracting parties.This provision has been incorporated into the
Anti-dumping Agreement.
5.  In the implementation of the commitmentsset forth in paragraph 1 to 4 each contractingparty shall afford to any other interestedcontracting party or contracting parties full andprompt opportunity for consultations under thenormal procedures of this Agreement withrespect to any matter or difficulty which mayarise.WT/COMTD/W/77
Page 18
Article XXXVIII
Provision Comment
Provisions aimed at increasing the trade opportunities of developing country Members
(c)  Collaborate in analysing the development
plans and policies of individual less-developedcontracting parties and in examining trade andaid relationships with a view to devisingconcrete measures to promote the developmentof export potential and to facilitate access toexport markets for the products of theindustries thus developed and, in thisconnection, seek appropriate collaboration withgovernments and international organizations,and in particular with organizations havingcompetence in relation to financial assistancefor economic development, in systematicstudies of trade and aid relationships inindividual less-developed contracting partiesaimed at obtaining a clear analysis of exportpotential, market prospects and any furtheraction that may be required;The High-Level Meeting on Integrated
Initiatives for Least-Developed Countries'Trade Development was in part a response tothis provision.
The Heads of the six core Agencies of the
Integrated Framework for Trade-Related
Technical Assistance to Least-DevelopedCountries to agreed: (i) to make every effort to
support the integration of trade, trade-related
technical assistance, and capacity-building into
the national development strategies and plans of
LDCs.  This would be ensured principallythrough such instrument as Poverty Reduction
Strategy Papers (PRSPs) and would influence
other development frameworks such as the
United Nations Development Assistance
Framework (UNDAF). In doing so, these effortswill ensure dynamic interaction and dialogue
among LDCs, donors and agencies, fully
respecting country ownership.  (ii) That this
mainstreaming effort will be led and
coordinated by the World Bank, according to
the principles of the Comprehensive
Development Framework, with participationand inputs from the other core agencies and
other stakeholders. Building on initial Needs
Assessments and subsequent work, this will
involve formulating country-specific integration
strategies as part of the mainstreaming process.These activities will feed into the World Bank
Consultative Groups (CGs) and UNDP Round
Table Meetings (RTs) where countries will
present their medium-term policy frameworks
and financing needs, including for trade-relatedassistance, for support by the donor community.
(WT/LDC/SWG/IF/2)
(e)  Collaborate in seeking feasible methods to
expand trade for the purpose of economicdevelopment, through internationalharmonization and adjustment of nationalpolicies and regulations, through technical andcommercial standards affecting production,transportation and marketing, and throughexport promotion by the establishment offacilities for the increased flow of tradeThe work of the WTO/UNCTAD International
Trade Centre is oriented towards meeting the
objectives of this provision.
The WTO Reference Centre Programme has
contributed to the enhancing the flow oftrade-related information to governments andbusiness communities of  77 developing
countries ( figure accurate at time of writing).WT/COMTD/W/77
Page 19
Provision Comment
information and the development of market
research;
Provisions under which WTO Members should safeguard the interests of developing
country Members
1.  The contracting parties shall collaborate
jointly, with the framework of this Agreementand elsewhere, as appropriate, to further theobjectives set forth in Article XXXVI.
2.  In particular, the CONTRACTING
PARTIES shall:(a) where appropriate, take action, includingaction through international arrangements, toprovide improved and acceptable conditions ofaccess to world markets for primary productsof particular interest to less-developedcontracting parties and to devise measuresdesigned to stabilize and improve conditions ofworld markets in these products includingmeasures designed to attain stable, equitableand remunerative prices for exports of such
products;The Committee on Trade and Development
provides a forum for Members to collaboratejointly in this regard.
This matter has generally been considered in
UNCTAD from the inception.
(b) seek appropriate collaboration in matters of
trade and development policy with the UnitedNations and its organs and agencies, includingany institutions that may be created on thebasis of recommendations by the UnitedNations Conference on Trade andDevelopment;See comment in relation to
(Article XXXVI:7).
(d)  keep under continuous review thedevelopment of world trade with specialreference to the rate of growth of the trade ofless-developed contracting parties and makesuch recommendations to contracting parties asmay, in the circumstances, be deemedappropriate;The Committee on Trade and Development
conducts regular reviews of the participation ofdeveloping countries in world trade.  (seeWT/COMTD/W/65)
(f)  establish such institutional arrangements asmay be necessary to further the objectives setforth in Article XXXVI and to give effect tothe provision of this Part.The WTO Committee on Trade and
Development, was established in 1995. (seeWT/L/46 for terms of reference).WT/COMTD/W/77
Page 20
1979 Decision of the Contracting Parties on Differential and More Favourable Treatment,
Reciprocity and Fuller Participation of Deve loping Countries:  "The Enabling Clause"
Provision Comment
1. Notwithstanding the provisions of
Article I of the General Agreement, contracting
parties may accord differential and more
favourable treatment to developing countries,4
without according such treatment to other
contracting parties.
2. The provisions of paragraph 1 apply tothe following:
5
Provisions aimed at increasing trade opportunities
(a) Preferential tariff treatment accorded bydeveloped contracting parties to products
originating in developing countries in accordance
with the Generalized System of Preferences.
6Implementation of this provision has beenthrough GSP schemes as notified to the COMTD.
Flexibility of commitments, of action, and use of policy instruments
(b) Differential and more favourable treatmentwith respect to the provisions of the General
Agreement concerning non-tariff measuresgoverned by the provisions of instruments
multilaterally negotiated under the auspices of the
GATT.
(c)  Regional or global arrangements entered into
amongst less-developed contracting parties for themutual reduction or elimination of tariffs and, inaccordance with criteria or conditions which maybe prescribed by the CONTRACTING
PARTIES, for the mutual reduction or
elimination of non-tariff measures, on productsimported from one anotherTo date, 17 regional arrangements have been
notified under the Enabling Clause
Provisions relating to least-developed country Members
(d)  Special treatment of the least developedamong the developing countries in the context of
any general or specific measures in favour of
developing countries.A number of GSP schemes provide for enhanced
market access for least developed countries.
Documents WT/COMTD/LDC/W/16 and
WT/COMTD/W/17 provide data on marketaccess for the 29 least-developed country
members of the WTO.
                                                     
4 11The words "developing countries" as used in this text are to be understood to refer also to
developing territories.
5 It would remain open for the CONTRACTING PARTIES to consider on an ad hoc  basis under the
GATT provisions for joint action any proposals for differential and more favourable treatment not falling withinthe scope of this paragraph.
6 As described in the Decision of the CONTRACTING PARTIES of 25 June 1971, relating to the
establishment of "generalized, non-reciprocal and non-discriminatory preferences beneficial to the developing
countries."WT/COMTD/W/77
Page 21
General comments with respect to the enabling clause
The use of the Generalized System of Preferences GSP is frequently referred to in the TPRM
process without stating any difficulties.  However, specific concerns raised in TPRM discussions with
respect to (GSP) include the following:
- That items of particular export interest for developing countries are not eligible for
GSP benefits, or only partially included in the schemes, such as agricultural and
textiles and clothing items;7 (WT/TPR/M/13, page 11, WT/TPR/M/30, page 9,
WT/TPR/S/32-2, pages 7,8, WT/TPR/M/32 25)
- That some GSP schemes ignore the fact or-intensity of production in developing
countries as certain labour-intensive chem ical and textile products have been removed
from the schemes; (WT/TPR/M/3, page 20)
- That certain schemes contain binding ceiling quotas on certain products;8
(WT7TPR/S/32-2, pages.7-8)
- That not all exports of GSP-eligible goods  from developing countries to preference
giving countries actually benefit from  preferential access; (WT/TPR/S/52-2,
pages 22-23)
- That some GSP schemes in reality only benefit a few developing countries exporters of
the few products covered by the scheme and that the benefits of the scheme therefore
are highly skewed both in terms of the num ber of main beneficiaries and the range of
products; (WT/TPR/M/32, pages 24,25)
- That imports under contractual or unilate ral preferences, subject to emergency
safeguards or zero-duty quotas have ne gative effects on preference schemes;
(WT/TPR/M/3, page 15)
- That developing country exports have been progressively excluded from a number of
GSP schemes as such exports have reached the competitiveness criteria defined byGSP-granting countries.  Th e negative effects on the ma rket position of certain
developing country products have been magnified by the maintenance of benefits to
competing countries; (WT/TPR/S/21-2, page 10)
- That specialization and development indi ces can lead to discrimination between
developing countries competing for the same market.  Such indices favour producers of
raw materials and low-processed goods whil e penalizing more advanced suppliers;
(WT/TPR/M/3, pages 6,7)
- That sector and country graduat ion are contrary to princi ples of non-discrimination
and non-reciprocity that underpin the GSP and th erefore alien to the original intentions
underlying the GSP concept; (WT/ TPR/M/3, page 19, WT/TPR/M/30, pages 9,10)
                                                     
7 The following items were explicitly mentioned;  walnuts, raw coffee, meat, dairy products,
vegetables, cereals, cigars, silk, cotton, woven fabrics of cotton, footwear.
8 The following items were explicitly mentioned:  wood and articles thereof, leather articles, footwear,
electrical machinery and equipment.WT/COMTD/W/77
Page 22
- That the withdrawal, or the threat of withdr awal of preferences is used as leverage to
obtain non-trade objectives.  As recipient c ountries can not rely on the preferences,
they have become less useful. The consequent uncertainty of access is a major concern
to countries affected; (WT/TPR/M/16, page 9) and
- That linking the benefits to non-trade issues , such as environmental and social (labour)
standards as well as intellectual property rights and the fight against drugs curtail the
benefits under the scheme and introduce elements of discrimination and reciprocity into
the GSP scheme. These aspects go against the fundamental principles of the GSP.
(WT/TPR/M/3, pages 6, 7, 11, 15, 19, 20,  WT/TPR/M/16 pages 16, 25, 29,
WT/TPR/M/30, pages  6, 9, 10, 11, 15, 16, 17, 26)
1999.  Decision on waiver for preferential tariff treatment of Least Developed Countries
Provision Comment
Provisions relating to measures to assist least-developed country Members .
Subject to the terms and conditions set out
hereunder, the provisions of paragraph 1 of
Article I of the GATT 1994 shall be waived until
30 June 2009, to the extent necessary to allow
developing country Members to providepreferential tariff treatment to products of
least-developed countries, designated as such by
the United Nations, without being required to
extend the same tariff rates to like products of
any other Member.To date, 1 notification has been submitted under
this decision (WT/ COMTD/N/12/Rev.1).
The Agreement on Agriculture together with the Decision on Members Concerning the
Possible Negative Effects of the Reform Programme on Least-Developed and Net Food-Importing
Developing Countries, contain 18 special and differential treatment provisions.  The special anddifferential treatment provisions of the Agreement and the Decisons jointly cover all six types of
special and differential treatment provisions.WT/COMTD/W/77
Page 23
B. AGREEMENT ON AGRICULTURE :
1. Provisions aimed at increasing trade opportunities for developing countries:
One provision (the Preamble to the agreement).
2. Transition time periods:
One provision (Article 15.2).
3. Flexibility of commitments, of action, and use of policy instruments:
Nine provisions (Article 6.2; Article 6.4; Article 9.2(b)(iv); Article 9.4; Article 12.2;
Article 15.1; Public stockholding for food security purposes:  Annex 2, para. 3, footnote 5;
Domestic food aid:  Annex 2, para. 4, footnotes 5 & 6; Annex 5, Section B).
4 Provisions relating to measures to -developed country Members:
Two provisions (Article 16.1 and Article 16.2).
Provisions falling in categories 1 and 4 listed above cover positive actions to be taken by
members with respect to developing country Members, including least developed countries.  The righthand column provides information on their implementation. Provisions falling under categories 2 and
3 cover actions developing countries may take as a result of exemptions, time-bound or otherwise
provided for in the agreement.  With the exception of Article 12.2, available data show that
developing countries made use of all provisions available in these two categories.
No specific concerns with respect to the prac tical implementation of existing special and
differential treatment provisions  have been rais ed during the formal meetings of the Committee on
Agriculture.
However, during the process of Analysis and In formation Exchange and in the context of the
mandated agricultural negotiations various developing country Members submitted papers addressing
the specific characteristics of rural economies, the role of agriculture in their social and economic
development, and implementation issues. Several de veloping countries have highlighted the need to
enhance the S&D provisions.
Under the notification requirements adopted by the Committee on Agriculture (G/AG/2),
least-developed countries are to make notifi cations on domestic support only every two years;
developing countries are to notify annually but the Committee on Agriculture may, upon request, set
aside parts of the notification requirements.   To date, there has been no such request.
Provision Comment
Provisions aimed at increasing trade opportunities
Preamble
Having agreed that in implementing their
commitments on market access, developed
country Members would take fully into account
the particular needs and conditions of developing
country Members by providing for a greater
improvement of opportunities and terms of access
for agricultural products of particular interest tothese Members, including the fullest
liberalization of trade in tropical agriculturalSchedules of developed country Members show
greater-than-average reductions in tariffs on a
range of products of particular interest to
developing countries (e.g. average tariff reduction
of 43 per cent for tropical agricultural products)
and often their accelerated implementation.
Document G/AG/ NG/S/10 dated 10 June 2000
gives an overview of tariff information on a range
of agricultural products that were identified byWT/COMTD/W/77
Page 24
Provision Comment
products as agreed at the Mid-Term Review, and
for products of particular importance to thediversification of product ion from the growing of
illicit narcotic crops;developing countries as being of particular
interest to them.
Transition time periods
Article 15.2Developing country Members shall have the
flexibility to implement reduction commitments
over a period of up to 10 years.  Least-developed
country Members shall not be required to
undertake reduction commitments.Used by developing and least-developed
countries in the establishment of Schedules
Flexibility
Article 6.2(Domestic Support Commitments). In accordance
with the Mid-Term Review Agreement thatgovernment measures of assistance, whether
direct or indirect, to encourage agricultural and
rural development are an integral part of the
development programmes of developing
countries, investment subsidies which aregenerally available to agriculture in developing
country Members and agricultural input
subsidies generally available to low-income or
resource-poor producers in developing country
Members shall be exempt from domestic supportreduction commitments that would otherwise be
applicable to such measures, as shall domestic
support to producers in developing country
Members to encourage diversification from
growing illicit narcotic crops.  Domestic support
meeting the criteria of this paragraph shall not
be required to be included in a Member'scalculation of its Current Total AMS.Developing countries took account of the
provision in the establishment of their Schedules.Documents G/AG/NG/S/1 and Corr. 1 (dated 13
and 25 April 2000), G/AG/NG/S/2 (dated
19 April 2000) and G/AG/NG/S/12 show the
extent to which Members have actually taken
recourse to this exemption from domestic supportreduction commitments.
Data for 1995-1997 show that total notified
outlays under this provision amounted
respectively to 2.5 Billion US Dollars, 2 BillionUS Dollars, and just under 1 Billion US Dollars
for the three years in question.  (This represented
respectively, 7.1 per cent, 8.2 per cent, and
4.5 per cent of total notified domestic support
provided by the Members in question.). Twenty
Members notified zero outlays under this
provision in 1995, as compared to 25 and 23 in1996 and 1997 respectively.  For two members in
1995, outlays under this provision represented
100 percent of all notified domestic support, as
compared to three Members in 1996 and two in
1997.
Article 6.4 (b)(Domestic Support Commitments- calculation of
current total AMS) For developing country
Members, the de minimis percentage under this
paragraph shall be 10 per centDeveloping countries took account of the
provision in the establishment of their Schedules.
Actual use of this provision is reflected in
document G/AG/NG/S/2 and G/AG/NG/S/12.  In
1995 , total notified outlays falling under thisprovision amounted to just under 7 billion
US Dollars, or 20 per cent of notified domestic
support.
Article 9.2(b)(iv)(Budgetary outlays for export subsidies)
The Member's budgetary outlays for export
subsidies and the quantities benefiting from suchDeveloping countries took account of the
provision in the establishment of their Schedules.WT/COMTD/W/77
Page 25
Provision Comment
subsidies, at the conclusion of the implementation
period, are no greater than 64 per cent and79 per cent of the 1986-1990 base period levels,
respectively.  For developing country Members
these percentages shall be 76 and 86 per cent,
respectively.All 10 developing country Members which have
export subsidy reduction commitments (Brazil,Colombia, Cyprus, Indonesia, Israel, Mexico,
Romania, Turkey, Uruguay and Venezuela) have
used the flexibility to apply a lower rate of
reduction
Article 9.4During the implementation period, developing
country Members shall not be required toundertake commitments in respect of the export
subsidies listed below, provided that these are not
applied in a manner that would circumvent
reduction commitments:
subsidies to reduce the costs of marketing exports
of agricultural products, including handling,
upgrading and other processing costs, and the
costs of international transport and freight;  and
providing internal transport charges on export
shipments terms more favourable than those for
domestic shipment.Developing countries took account of the
provision in the establishment of their Schedules.Several notifications show recourse to these two
types of subsidies (G/AG/N/-- series).
Article 12.2
(Diversification of export prohibitions andrestrictions)
The provisions of [Article 12.1]  shall not apply
to any developing country Member, unless the
measure is taken by a developing country
Member which is a net-food exporter of thespecific foodstuff concerned.No developing country has notified the
introduction of such a measure.
Article 15.1In keeping with the recognition that differential
and more favourable treatment for developing
country Members is an integral part of the
negotiation, special and differential treatment in
respect of commitments shall be provided as setout in the relevant provisions of this Agreement
and embodied in the Schedules of concessions
and commitments.The Schedules of developing countries and least-
developed countries reflect the flexibility on
ceiling bindings, longer implementation period
and lower reduction commitments in tariffs,
domestic support and export subsidies.
Annex 2, para. 3, footnote 5(Public stockholding for food security purposes)
For the purposes of paragraph 3 of Annex 2,
governmental stockholding programmes for foodsecurity purposes in developing countries whose
operation is transparent and conducted in
accordance with officially published objective
criteria or guidelines shall be considered to be in
conformity with the provisions of this paragraph,including programmes under which stocks of
foodstuffs for food security purposes are acquired
and released at administered prices, provided
that the difference between the acquisition priceDeveloping countries took account of the
provision in the establishment of the Schedules.Document G/AG/NG/S/2 shows that this
particular category of government assistance has
been implemented by several developing
countries.WT/COMTD/W/77
Page 26
Provision Comment
and the external reference price is accounted for
in the AMS.
Annex 2, para. 4, footnotes 5 & 6(Domestic food aid)For the purposes of paragraphs 3 and 4 of
Annex 2, the provision of foodstuffs at subsidized
prices with the objective of meeting food
requirement of urban and rural poor in
developing countries on a regular basis atreasonable prices shall be considered to be in
conformity with the provisions of this paragraph.Developing countries took account of this
provision in the establishment of the Schedules.
Document G/AG/NG/S/2 shows how this
particular category of government assistance has
been implemented by several developingcountries.
Annex 5, Section B
The provisions of Article 4.2 shall also not apply
with effect from the entry into force of the WTO
Agreement to a primary agricultural product that
is the predominant staple in the traditional diet ofa developing country Member and in respect of
which the following conditions, in addition to
those specified in paragraph 1(a) through 1(d),
as they apply to the products concerned, are
complied with: (a)  minimum access
opportunities in respect of the products
concerned, as specified in Section I-B of Part I ofthe Schedule of the developing country Member
concerned, correspond to 1 per cent of base
period domestic consumption of the products
concerned from the beginning of the first year of
the implementation period and are increased inequal annual instalments to 2 per cent of
corresponding domestic consumption in the base
period at the beginning of the fifth year of the
implementation period.  From the beginning of
the sixth year of the implementation period,minimum access opportunities in respect of the
products concerned correspond to 2 per cent of
corresponding domestic consumption in the base
period and are increased in equal annual
instalments to 4 per cent of correspondingdomestic consumption in the base period until the
beginning of the 10th year.  Thereafter, the level
of minimum access opportunities resulting from
this formula in the 10th year shall be maintained
in the Schedule of the developing countryMember concerned; (b) appropriate market
access opportunities have been provided for in
other products under this Agreement. In the event
that special treatment under paragraph 7 is not
to be continued beyond the 10th year following
the beginning of the implementation period, the
products concerned shall be subject to ordinarycustoms duties, established on the basis of a tariffThe Schedules of Korea and the Philippines
reflect recourse to this provision.WT/COMTD/W/77
Page 27
Provision Comment
equivalent to be calculated in accordance with
the guidelines prescribed in the attachmenthereto, which shall be bound in the Schedule of
the Member concerned.  In other respects, the
provisions of paragraph 6 shall apply as
modified by the relevant special and differential
treatment accorded to developing countryMembers under this Agreement.
Provisions relating to least-developed country Members
Article 16.1Developed country Members shall take suchaction as is provided for within the framework of
the Decision on Measures Concerning the
Possible Negative Effects of the Reform
Programme on Least-Developed and Net Food-
Importing Developing Countries.Information on actions undertaken within the
framework of the decision is to be found in the
following section
Article 16.2
The Committee on Agriculture shall monitor, asappropriate, the follow-up to this Decision.The Decision has been on the agenda of virtually
every meeting of the Committee.  Please see the
following section on the Decision for further
information.WT/COMTD/W/77
Page 28
C. DECISION ON MEASURES CONCERNING THE POSSIBLE NEGATIVE EFFECTS OF THE REFORM
PROGRAMME ON LEAST -DEVELOPED AND NET FOOD-IMPORTING DEVELOPING COUNTRIES :9
1. Provisions under which WTO Members should safeguard the interests of developing country
Members:
Four provisions:  (the Decision on Measures Concerning the Possible Negative Effects of the
Reform Programme on Least-Developed and Net Food-Importing Developing Countries,
paragraphs 3(i) and paragraph 3 (ii); 4 and 5.
2 Technical assistance:
One provision (the Decision on Measures Concer ning the Possible Negative Effects of the
Reform Programme on Least-Developed and Net Food-Importing Developing Countries,
paragraph 3(iii).
All the provisions of the Decision cover positive actions to be taken by members with respect
to developing country Members, including least developed countries. The right hand column provides
information on their implementation.
General comments
The follow-up of the Decision has represented an important part of the work of the
Committee on Agriculture. The Decision has been on the agenda of virtually each meeting.  At an
early stage, the Committee agreed on various practical arrangements:  (i) an annual review of theimplementation of the Decision; (ii) notification requirements, notably for developed country
Members, for actions taken under the Decision;  (iii) the establishment of a WTO list of net-food
importers, which comprises currently all least-developed countries as defined by the United Nations
and 19 developing country Members.  In addition to the annual reviews of the Decision in the
Committee on Agriculture, the Committee made specific recommendations to the SingaporeMinisterial Conference (SMC) which were adopted.  The relevant provisions of the Decision as well
as the recommendations and their follow-up are set out below.
In the course of the work of the Committee on Agriculture related to the implementation of
the Decision, several Members intervened, with developing countries raising the following issues andconcerns:  the critical importance of food security; recognition of the crucial role played by
international trade in achieving national food security objectives; recognition of the successful
conclusion of the new Food Aid Convention (FAC); the desirability for more Members to join the
FAC as this would be a concrete way to assist LDCs and NFIDCs to honour the commitments made
by Ministers at Marrakesh and Singapore; concern over declining levels of cereal and non-cereal food
aid; the reduction of trade-distorting protection a nd support would help many developing countries to
improve their export performance and thus their ability  to finance their food security needs;  the lack
of progress with negotiations on export credit s in the framework of the OECD.  Some net
food-importing developing countries expressed concern that  their expectations have not been met in
areas like concessional finance,  since access to existing facilities remains subject to certain conditions
or continues to be linked to balance-of-payment difficulties.
                                                     
9 The WTO list of net food-importing developing countries as it currently stands:  Barbados, Botswana,
Côte d’Ivoire, Cuba, Dominican Republic, Egypt, Hond uras, Jamaica, Kenya, Mauritius, Morocco, Pakistan,
Peru, Saint Lucia, Senegal, Sri Lanka, Trinidad and Tobago, Tunisia and Venezuela (G/AG/5/Rev.3, dated 28
June 1999, refers).WT/COMTD/W/77
Page 29
Provision Comment
Provisions under which WTO Members should safeguard the interests of developing country
Members
Paragraph 3(i)To review the level of food aid establishedperiodically by the Committee on Food Aid under
the Food Aid Convention 1986 and to initiate
negotiations in the appropriate forum to establish
a level of food aid commitments sufficient to meet
the legitimate needs of developing countriesduring the reform programme.The SMC agreed that, in anticipation of the
expiry of the current Food Aid Convention
(FAC) in June 1998 and in preparation for the
renegotiation of the FAC, action be initiated in
1997 within the framework of the FAC to
develop recommendations with a view towardsestablishing a level of food aid commitments,
covering as wide a range of donors and donable
foodstuffs as possible, which is sufficient to meet
the legitimate needs of developing countries
during the reform programme. In response, sinceJanuary 1997, several meetings have taken place
within the framework of the FAC, including
meetings with net food-importing developing and
least-developed countries as well as potential new
food aid donors.  This process culminated with
the advent of the new FAC which entered into
force on 1 July 1999. Under the new Food AidConvention 1999, the minimum annual volume
and value commitments of FAC members amount
to a total of 4.895 million tonnes (wheat
equivalent) and €130 million, respectively.
Although food aid shipments of grain fell from10.4 million tonnes in 1992/93 to 5.8 million
tonnes in 1996/97, shipments exceeded, except in
1994/95, FAC members' combined minimum
annual commitments in this period.  In 1998/99,
food aid shipments by FAC donors reached anestimated 8.1 million tonnes, 2 million tonnes
more than in 1997/98 and 2.8 million tonnes
more than the aggregate annual minimum
commitment under the FAC 1995.  Document
G/AG/NG/S/ 3, dated 25 April 2000, pp. 2-8,
refer.
Paragraph 3(ii)To adopt guidelines to ensure that an increasing
proportion of basic foodstuffs is provided to
least-developed and net food-importing
developing countries in fully grant form and/or
on appropriate concessional terms in line withArticle IV of the Food Aid Convention 1986.The SMC agreed that the recommendations
referred to above should include guidelines to
ensure that an increasing proportion of food aid is
provided to least-developed and net food-
importing developing countries in fully grantform and/or on appropriate concessional terms in
line with Article IV of the current FAC, as well
as means to improve the effectiveness and
positive impact of food aid.  Document
G/AG/NG/S/4, Section 2, and Table 6 of
document G/AG/NG/S/3 show that this
recommendation is largely followed by all fooddonor Members.WT/COMTD/W/77
Page 30
Provision Comment
Paragraph 4
Ensure that any agreement relating toagricultural export credits makes appropriate
provision for differential treatment in favour of
least-developed and net food-importing
developing countries.Ministers reaffirmed the commitment at the
SMC.  In the negotiations on an understanding
regarding agricultural export credits currently
undertaken within the framework of the OECD,
consideration is given to this commitment. See
also paragraph 33, document G/AG/NG/S/3.
Paragraph 5
As a result of the Uruguay Round certaindeveloping countries may experience short-term
difficulties in financing normal levels of
commercial imports and that these countries may
be eligible to draw on the resources of
international financial institutions under existingfacilities, or such facilities as may be established,
in the context of adjustment programmes, in
order to address such financing difficulties.  In
this regard, Ministers take note of paragraph 37
of the report of the Director-General to the
CONTRACTING PARTIES to GATT 1947 on his
consultations with the Managing Director of theInternational Monetary Fund and the President
of the World Bank (MTN.GNG/NG14/W/35).At the SMC it was agreed that WTO Members, in
their individual capacity as members of relevant
international financial institutions, take
appropriate steps to encourage the institutions
concerned, through their respective governing
bodies, to further consider the scope forestablishing new facilities or enhancing existing
facilities for developing countries experiencing
Uruguay Round-related difficulties in financing
normal levels of commercial imports of basic
foodstuffs.  At the meetings of the Committee on
Agriculture, the World Bank and the IMF have
consistently reaffirmed that they are in a positionto meet relevant requests from existing facilities.
See also document G/AG/NG/S/3, pp. 10-15.
Technical assistance
Paragraph 3(iii)
To give full consideration in the context of their
aid programmes to requests for the provision of
technical and financial assistance to least-
developed and net food-importing developing
countries to improve their agriculturalproductivity and infrastructure.The SMC called on developed country WTO
Members to continue to give full consideration in
the context of their aid programmes to requests
for the provision of technical and financial
assistance in this light. Document G/AG/NG/S/4,Section 3, describes the financial and technical
assistance activities extended to least-developed
and net food importing developing countries
since 1995, as notified by food aid donor
Members.  In addition, Attachment 6 ofG/AG/NG/S/3 provides an overview of spending
on bilateral technical and financial assistance
programmes as notified by Members, including
in a number of cases funding given to multilateral
organizations and other aid programmes.WT/COMTD/W/77
Page 31
D. SANITARY AND PHYTO -SANITARY MEASURES .
Special and Differential Treatment provisions under the SPS Agreement fall under three
broad categories:
1 Provisions under which WTO Members should sa feguard the interests of developing country
Members
Two provisions (Article 10.1 and 10.4).
2 Transitional time periods:
Two provisions (Article 10.2 and 10.3).
3 Technical assistance:
One provision (Article 9).
General comments
In its report on the review of the SPS Agreement, the Committee noted that it had no
information on the extent to which the special and differential treatment provided for in Articles 10.1
and 10.2 had been accorded to developing country Members, nor information on the extent to which
developing country Members had made use of any special and differential treatment accorded to
them.10  The Committee also noted the proposals submitted by some developing country Members in
the context of the review and encouraged Memb ers to further the practical implementation of
Articles 10.1 and 10.2.  In particular, the Committee stressed that Members should, in accordance
with the provisions of Article 10.2, accord longer time-frames for compliance on products of interest
to developing country Members.
In various statements and submissions, it had been suggested that either Article 10 of the
Agreement should be made mandatory and/or that specific guidelines should be developed since this
Article had not been widely implemented.11  Another issue raised was that as developing countries
lack access to technologies developed abroad for achieving standards acceptable to importing
countries, developed country Members should take these constraints into account while formulating
their SPS measures.
As part of its regular consideration of issues of concern to developing country Members, the
SPS Committee agreed to focus its discussions in June and November 2000 on the implementation of
the special and differential provisions of the agreement.  A background paper was prepared by the
Secretariat drawing attention to the concerns that had been previously identified.12
Some Members stated that it was important for developing country members to provide
concrete examples of needs in respect of special and differential treatment, and notably how existing
provisions for special and differential treatment had failed to meet the needs and expectations ofdeveloping country Members.
13
                                                     
10 G/SPS/12 refers.
11 G/SPS/R/15, paras. 34-37, G/SPS/GEN/85 and G/SPS/GEN/128 refer.
12 G/SPS/W/105
13 G/SPS/R/19WT/COMTD/W/77
Page 32
Provision Comment
Provisions under which WTO Members should safeguard the interests of developing country
Members
Article 10.1In the preparation and application of sanitary orphytosanitary measures, Members shall take
account of the special ne eds of developing country
Members, and in particular of the least-developed
country Members.Some developing country Members expressed the
view that although Article 10.1 provided that the
special needs of developing countries shall be
taken into account in the preparation and
application of SPS measures, this had rarely been
done.  Some developing country Membersproposed that if an SPS measure created a
problem for more than one developing country,
then it should be withdrawn.  It was suggested
that if an SPS measure created problems for
several developing countries but could not bewithdrawn, the country adopting it should
reconsider it and provide the necessary technical
assistance to enable developing countries to
adapt.  The view was expressed that developing
country constraints such as lack of adequate
infrastructure, technology, finance and skilled
manpower led to difficulties in complying withtrading partners' SPS measures.   This resulted in
restricted market access, especially since
countries often found it difficult to adjust to
frequently changing SPS measures. Another
view, expressed by a developing countrymember, was  that for developing countries,
compliance with commitments under the SPS
Agreement was not necessarily hindered by lack
of financial resources, equipment or sophisticated
infrastructures, but by a lack of understanding ofthe Agreement, the absence of an operational
framework for the authorities responsible for
administering the Agreement; and by limited
participation in competent bodies and in the
WTO's SPS Committee.
14
Article 10.4Members should encourage and facilitate theactive participation of developing country
Members in the relevant international
organisations.The timing of SPS Committee meetings has taken
into account the meetings of the main standards
setting organisations.  For instance, SPS
Committee meetings have been held back-to-back
with the Codex Alimentarius Commission's
meetings, to enable food security experts tocombine both meetings in one trip.
Some developing country Members stressed that
the participation of developing countries in
international standard-setting bodies remained
inadequate, and that as a  result, international
standards were often adopted without taking into
                                                     
14 G/SPS/W/105 refersWT/COMTD/W/77
Page 33
Provision Comment
account the problems and constraints facing
developing countries. The point was made thatactive participation in standard setting required
adequate institutional infrastructure, human and
financial resources and effective follow-up
capabilities.   Some Members proposed that
WTO Members should establish a joint fund withthe purpose of assisting developing countries to
increase their participation in the work of the SPS
Committee and in the international standard-
setting bodies.  A group of developing country
Members suggested that standards should only be
recognized by the Agreement if the participation
of countries from different geographical areasand levels of development had been ensured in
their formulation, and if the specific conditions
prevailing in developing countries had been taken
into account.
15  Some developing country
Members reported to the Trade Policy ReviewBody that although developing countries
participate in the policy-making committees of
international bodies such as the Codex
Alimentarius they are grossly outnumbered in
these deliberations, at times resulting in standardsdevelopment not conducive to their
implementation. An observer from Codex,
reporting to the SPS Committee on the twenty-
third session of the Codex Alimentarius
Commission in July 1999, emphasized that 103member countries had participated, including a
large number of developing countries.
16
Transitional time periods
Article 10.2
Where the appropriate level of sanitary or
phytosanitary protection allows scope for the
phased introduction of new sanitary or
phytosanitary measures, longer time-frames for
compliance should be accorded on products ofinterest to developing country Members so as to
maintain opportunities for their exports.Several developing country Members highlighted
that there was little information regarding
whether Members were, in fact, providing longer
time frames for compliance on products of
interest to developing countries.
17  In its review
of the operation and implementation of the
Agreement, the SPS Committee noted that it had
no information on the extent to which the
provision had been applied to developing country
Members, nor how the latter had made use of it.Other developing country Members suggested
that Article 10.2 should be modified to include a
mandatory period of at least 12 months between
the date of notification and the entry into force
                                                                                                                                                                    
15 G/SPS/GEN/128, G/SPS/GEN/W/85, G/SPS/R/19 and G/SPS/W/105
16 G/SPS/W/105, G/SPS/R/19 and WT/TPR/G/33 refer.
17 G/SPS/R/15, paras. 34-37, G/SPS/GEN/128 refers.WT/COMTD/W/77
Page 34
Provision Comment
for SPS measures on products from developing
countries.18 Some Members informally supported
the view that Article 10.2 had not been complied
with, and proposed making it more binding, if
necessary.  The point was made by a developed
country Member that while importing countries
were not willing to compromise public health,governments were willing to be flexible in
finalising regulations, and implementation dates
were commonly extended.
19
Article 10.3With a view to ensuring that developing country
Members are able to comply with the provisions
of this Agreement, the Committee is enabled togrant to such countries, upon request, specified,
time-limited exception in whole or in part from
obligations under this Agreement, taking into
account their financial, trade and development
needs.To date, no request has been made under
Article 10.3.
One Member proposed extending the transitionperiod during which developing and
least-developed countries could delay the
implementation of the Agreement, as this would
allow developing country Members to gradually
bring their standards into conformity with
international standards, while also giving them
time to forge equivalence agreements withdeveloped country Members.  This could be done
in the context of Article 10.3, which provided for
time-limited exceptions.
.20
Technical assistance
Provision Comment
Article 9.2Where substantial investments are required in
order for an exporting developing country
Member to fulfil the sanitary or phytosanitary
requirements of an importing Member, the latter
shall consider providing such technical assistanceas will permit the developing country Member to
maintain and expand its market access
opportunities for the product involved.The view was expressed that special and
differential treatment provisions would be
effective only if they were complemented by
sufficient technical assistance to strengthen
developing countries' ability to deal withscientific issues, especially risk assessment, and
to improve laboratory facilities and technologies
needed to comply with SPS obligations.
21  In the
review of the operation and implementation of the
Agreement, the Committee stressed the need forincreased technical assistance and cooperation, in
particular with regard to human resource
development, national capacity building, and
transfer of technology and information,
particularly by way of concrete, "hands on"assistance. Technical assistance needs and
activities are discussed at each regular meeting of
the SPS Committee. A questionnaire was
circulated to all Members requesting information
on their technical assistance activities in the SPS
                                                                                                                                                                    
18 G/SPS/W/105 refers
19 G/SPS/R/19
20 G/SPS/GEN/85 refers.
21 G/SPS/R/19 and  G/SPS/GEN/128.WT/COMTD/W/77
Page 35
Provision Comment
area, as well as on their specific requests for
technical assistance. 22  Information on a large
number of technical assistance projects has been
received.23
                                                                                                                                                                    
22 G/SPS/W/101
23 G/SPS/GEN/143 and Add.1, and G/SPS/GEN/181WT/COMTD/W/77
Page 36
E. AGREEMENT ON TEXTILES AND CLOTHING
The Agreement on Textiles and Clothing includes 6 special and differential treatment
provisions, which can be categorised as follows:
1. Provision aimed at increasing the trade opp ortunities of developing country Members:
One provision (Article 2.18).
2. Provisions under which WTO Members should safeguard the interests of developing country
Members:
Three provisions (Article 6.6(b), 6.6(a) and Annex, paragraph 3(a)).
3. Provisions relating to least-developed country Members:
Two provisions (the Footnote to Article 1.2, and Article 6.6 (a)).
Provision Comments
Provisions aimed at increasing trade opportunities
Article 2:18
As regards those Members whose exports are
subject to restrictions on the day before the entryinto force of the WTO Agreement and whose
restrictions represent 1.2 per cent or less of the
total volume of the restrictions applied by an
importing Member as of 31 December 1991 and
notified under this Article, meaningfulimprovement in access for their exports shall be
provided, at the entry into force of the WTO
Agreement and for the duration of this
Agreement, through advancement by one stage of
the growth rates set out in Article 2:13 and 2:14,or through at least equivalent changes as may be
mutually agreed with respect to a different mix of
base levels, growth and flexibility provisions.
Such improvements shall be notified to the TMB.Members have noted that Article 2.18 should be
implemented both within the context and generalmeaning of the ATC which was liberalization of
trade and the purpose of the special provisions
regarding small suppliers, that is to provide
significant increases in access to them in terms of
advancement by one stage of the growth rateswith a view to contribute to the future
possibilities of developing their trade. The view
has been expressed that the term "advancement
by one stage" in Article 2.18 does not mean
substitution of the second stage growth factor forthe first stage growth factor, that the stages have
cumulative effect, therefore the growth factor for
Stage 2 is to be applied in addition to the Stage 1
growth factor increase. (G/L/224, paragraph 44).
Concerns have been raised that in theimplementation of Article 2.18 the methodologies
used by only one of the Members maintaining
restraints of increasing the respective growth
rates first by 16 per cent and then by 25 per cent
had fulfilled the requirements of Article 1.2, andthat two Members maintaining restraints had
applied only a 25 per cent increase. (G/L/224,
paragraph 44).WT/COMTD/W/77
Page 37
Provision Comment
Provisions under which WTO Members should safeguard the interests of developing country
Members
Article 6:6(b)Members whose total volume of textile andclothing exports is small in comparison with the
total volume of exports of other Members and
who account for only a small percentage of total
imports of that product into the importing
Member shall be accorded differential and morefavourable treatment in the fixing of the
economic terms provided in Article 6: 8, 6:13
and 6:14.  For those suppliers, due account will
be taken, pursuant to Article 1:2  and 1.3, of the
future possibilities for the development of theirtrade and the need to allow commercial
quantities of imports from them.With respect to Article 6.6(b) concern was
expressed that in the application of safeguard
measures by a Member, involving Members
considered to be small suppliers, account had not
been taken of the specific requirement in Article
6.6(b) to provide differential and more favourabletreatment.  (G/L/224, paragraph 44).
Article 6.6(c)
With respect to wool products from wool-producing developing country Members whose
economy and textiles and clothing trade are
dependent on the wool sector, whose total textile
and clothing exports consist almost exclusively of
wool products, and whose volume of textiles andclothing trade is comparatively small in the
market of importing Members, special
consideration shall be given to the export needs
of such Members when considering quota levels,
growth rates and flexibility.No safeguard action had been taken against any
wool producing exporting country whose
economies are dependent on the wool sector.
Annex, point 3, para (a)
Actions under the safeguard provisions in Article6 of [the Agreement on Textiles and Clothing]
shall not apply to:  developing country Members'
exports of handloom fabrics of the cottage
industry, or hand-made cottage industry products
made of such handloom fabrics, or traditionalfolklore handicraft textile and clothing products,
provided that such products are properly
certified under arrangements established between
the Members concerned.No safeguard action has been taken against such
products.
Provisions relating to least-developed countries
Article 1.2, footnoteTo the extent possible, exports from a
least-developed country Member may also benefit
from [Article 1.2: Members agree to use theprovisions of paragraph 18 of Article 2 and
paragraph 6 (b) of Article 6 in such a way as to
permit meaningful increases in access
possibilities for small suppliers and the
development of commercially significant tradingopportunities for new entrants in the field of
textiles and clothing trade.In the last review, one developed country
Member said its quotas with a particular least-
developed country Member had high quotagrowth rates, another developed country Member
said that it had no restraints and applied zero
tariffs.
With respect to the treatment of the
least-developed country Members, it has beenpointed out that some least-developed countries
have benefitted from the provisions of ArticleWT/COMTD/W/77
Page 38
Provision Comment
2.18 while one Member had not, and that this was
discriminatory as between least-developedcountries and inconsistent with the objectives of
the ATC.  The importance of taking into account
the special concerns of the least-developed
Members in order to ensure improved market
access for their products was stressed in thisregard. (G/L/224, paragraph 48)
Article 6.6(a)In the application of the transitional safeguard,
particular account shall be taken of the interests
of exporting embers as set out below:  least-
developed country Members shall be accorded
treatment significantly more favourable than thatprovided to the other groups of Members referred
to in this paragraph, preferably in all its
elements, but at least in overall terms.No safeguard action has been taken against any
LDC.WT/COMTD/W/77
Page 39
F. THE AGREEMENT ON TECHNICAL BARRIERS TO TRADE
The Agreement on Technical Barriers to Trade contains provisions under five of the six
categories of Special and Differential Treatment.  The 17 provisions for special and differential
treatment can be classified as follows:
1. Provisions under which WTO Members should safeguard the interests of developing country
Members:
Seven provisions (Article 10.6; Article 12.1; Article 12.2; Article 12.3; Article 12.5;
Article 12.9; and Article 12.10).
2. Flexibility of commitments, of action, and use of policy instruments:
One provision. (Article 12.4)
3. Transition Time Periods:  1 provision (Article 12.8)
4 Technical Assistance:
Seven Provisions. (Article 11.1; Article 11.2; Article 11.3; Article 11.4; Article 11.5;
Article 11.6; Article 12.7)
5 Provisions relating to measures to assist least-developed country Members:
One provision (Article 11.8).
General comments
The subject of special and differential treatment  will be an integral part of the Second
Triennial Review of the implementation and operation of the agreement conducted by the Committee.
For the second triennial review, to proposals by developing countries have been put forwardspecifically relating to developing countries'  technical assistance needs (G/TBT/W/142 and
G/TBT/W/146).  Other Members have submitted comprehensive proposals which have included
sections on technical assistance (see G/TBT/W/ 133; G/TBT/W/138; G/TBT/W/139; G/TBT/W/140;
G/TBT/W/143).  The Committee held a Workshop on Technical Assistance and Special and
Differential Treatment with a primary focus on technical assistance in July 2000, back to back withthe Committee meeting (G/TBT/SPEC/14).  The purpose of the Workshop was to provide the
opportunity for Members that require technical assistance to inform the Committee and relevant
organizations of any difficulties they encountered in the implementation and operation of the
Agreement, and of the kind of technical assistance they might need.
The Secretariat prepared a study (see G/TBT/W/103) to establish the state of knowledge
concerning the technical barriers to the market access of developing country suppliers, especiallysmall and medium sized enterprises (SMEs), as a result of standards, technical regulations and
conformity assessment procedures.
The Secretariat has circulated a compendium of the written contributions by international
standardizing bodies and international systems for conformity assessment procedures on how accountis taken of the special problems of developing countries in such bodies and systems.  (G/TBT/W/106).WT/COMTD/W/77
Page 40
Provision Comment
Provisions under which WTO Members should safeguard the interests of developing country
Members
Article 10.6
The Secretariat shall, when it receivesnotifications in accordance with the provisions ofthis Agreement, circulate copies of thenotifications to all Members and interestedinternational standardizing and conformityassessment bodies, and draw the attention ofdeveloping country Membe rs to any notifications
relating to products of particular interest to them.Under Article 10.6, the Secretariat circulates to
all Members copies of notifications coveringthose products indicated by developing countrymembers as being of particular interest to them.(G/TBT/W/124).
Article 12.1
Members shall provide differential and more
favourable treatment to developing country
Members, through the provisions of this Article,
as well as through the relevant provisions of
other Articles of this Agreement
Article 12.2Members shall give particular attention to theprovisions of this Agreement concerning
developing country Members' rights and
obligations and shall take into account the
special development, financial and trade needs of
developing country Members in theimplementation of this Agreement, both
nationally and in the operation of this
Agreement's institutional arrangementsOne session of the workshop on Technical
Assistance and Special and Differential Treatmentin the context of the TBT Agreement dealt withthe difficulties faced by developing country
Members and their needs concerning theimplementation and administration of theAgreement, focussing in particular on thefollowing elements:  (i) notification obligations;(ii) setting up of national enquiry points; (iii)implementation of the Code of Good Practice forthe Preparation, Adoption, and Application ofStandards by national standardizing bodies; (iv)preparation of technical regulations; and(v) submission of statements under Article 15.2.The results of the workshop are underconsideration of the Committee as part of itssecond triennial
Article 12.3Members shall, in the preparation andapplication of technical regulations, standardsand conformity assessment procedures, takeaccount of the special development, financial andtrade needs of developing country Members, witha view to ensuring that such technicalregulations, standards and conformity assessmentprocedures do not create unnecessary obstacles toexports from developing country Members.WT/COMTD/W/77
Page 41
Provision Comment
Article 12.5
Members shall take such reasonable measures asmay be available to them to ensure thatinternational standardizing bodies andinternational systems for conformity assessmentare organized and operated in a way whichfacilitates active and representative participationof relevant bodies in all Members, taking intoaccount the special problems of developingcountry Members.A session of the workshop on Technical
Assistance and Special and Differential
Treatment dealt with the following topics:  (i) the
possible difficulties encountered in relation to the
use of certain international standards/guides;  and
(ii) the participation in internationalstandardization activities.  Another session of the
workshop dealt with the following topics:  (i)
acceptance of conformity assessment results; (ii)
the development of operational conformity
assessment procedures;  (iii)  access to
regional/international systems for conformity
assessment;  and (iv) capacity building in relationto conformity assessment procedures.
Different developing country Members
emphasised the importance of ensuring openness,
impartiality and transparency in the developmentof international standards.  The view was also
expressed that in the process of development of
international standards, the interests of
developing country members were not always
fully taken into account.  
24
Article 12:9
During consultations, developed country
Members shall bear in mind the special
difficulties experienced by developing country
Members in formulating and implementingstandards and technical regulations and
conformity assessment procedures, and in their
desire to assist developing country Members with
their efforts in this direction, developed country
Members shall take account of the special needsof the former in regard to financing, trade and
development.A session of the workshop of Technical
Cooperation and Special and DifferentialTreatment dealt with:  (i) development of humanand institutional resource; (ii) ways by whichtechnical regulations and standards of marketscould best be met; and (iii) other capacitybuilding matters.
Article 12:10The Committee shall examine periodically thespecial and differential trea tment, as laid down in
this Agreement, granted to developing countryMembers on national and international levels.The subject of special and differential treatment
will be on the agenda of the second triennial
review of the agreement.
                                                     
24 G/TBT/M/20WT/COMTD/W/77
Page 42
Provision Comment
Flexibility of commitments, of action, and use of policy instruments
Article 12:4
Members recognize that, although international
standards, guides or recommendations may exist,in their particular technological and
socio-economic conditions, developing country
Members adopt certain technical regulations,
standards or conformity assessment procedures
aimed at preserving indigenous technology andproduction methods and processes compatible
with their development needs. Members therefore
recognize that developing country Members
should not be expected to use international
standards as a basis for their technicalregulations or standards, including test methods,
which are not appropriate to their development,
financial and trade needs.With the view to operationalize and implement
the provisions of Article 12, at the First TriennialReview the Committee agreed to consider
including the following matters in its future
programme of work, which could be taken up
during the next three years and reviewed during
the Second Triennial Review of the Agreement:The use of measures to engender capacity
building in developing country Members,
including the consideration of measures relevant
to transfer of technology to these countries, for
the purpose of preparation and adoption oftechnical regulations, standards or conformity
assessment procedures, taking into account their
special development, financial and trade needs.
The Committee noted that difficulties might be
encountered in relation to the use of certain
international standards as specified under
Article 12.4, and that trade problems could arisethrough, inter alia , the absence of international
standards, or their non-use due to possible
out-dated content. It found that there was a need
to examine these difficulties as well as the
potential trade effects arising from internationalstandards.  An examination of these issues would
also need to consider the extent to which the
special development, financial and trade needs of
developing countries Members had been taken
into account, and the kind of technical assistancethat might be needed in this respect.
25
Transitional time periods
Article 12:8   (…)
Accordingly, with a view to ensuring thatdeveloping country Members are able to complywith this Agreement, the Committee on TechnicalBarriers to Trade provided for in Article 13 isenabled to grant, upon request, specified,
time-limited exceptions in whole or in part fromobligations under this Agreement. Whenconsidering such requests the Committee shalltake into account the special problems, in thefield of preparation and application of technicalregulations, standards and conformity assessmentprocedures, and the special development andtrade needs of the developing country Member, aswell as its stage of technological development,which may hinder its ability to discharge fully itsNo request for a time-limited exemption has been
made under this Article.
                                                     
25 G/TBT/5, paragraph 18.WT/COMTD/W/77
Page 43
Provision Comment
obligations under this Agreement.  The
Committee shall, in particular, take into accountthe special problems of the least-developedcountry Members.
Technical assistance
Article 11: 1
Members shall, if requested, advise other
Members, especially the developing country
Members, on the preparation of technical
regulations.Various submission have been made in relation to
technical assistance in general ( see references in
"general comments" section above).
Article 11:3
Members shall, if requested, take suchreasonable measures as may be available to them
to arrange for the regulatory bodies within their
territories to advise other Members, especially
the developing country Members, and shall grant
them technical assistance on mutually agreedterms and conditions regarding:
(i)the establishment of regulatory bodies, or
bodies for the assessment of conformity with
technical regulations; and
(ii)the methods by which their technical
regulations can best be met.
Article 11:4
Members shall, if requested, take such
reasonable measures as may be available to them
to arrange for advice to be given to other
Members, especially the developing country
Members, and shall grant them technicalassistance on mutually agreed terms and
conditions regarding the establishment of bodies
for the assessment of conformity with standards
adopted within the territory of the requesting
Member.WT/COMTD/W/77
Page 44
Provision Comment
Article 11:5
Members shall, if requested, advise otherMembers, especially the developing country
Members, and shall grant them technical
assistance on mutually agreed terms and
conditions regarding the steps that should be
taken by their producers if they wish to haveaccess to systems for conformity assessment
operated by governmental or non-governmental
bodies within the territory of the Member
receiving the request.
Article 11:6
Members which are members or participants ofinternational or regional systems for conformity
assessment shall, if requested, advise other
Members, especially the developing country
Members, and shall grant them technical
assistance on mutually agreed terms and
conditions regarding the establishment of the
institutions and legal framework which wouldenable them to fulfil the obligations of
membership or participation in such systems.The Committee has agreed to review the role of
regional and international systems for conformity
assessment as covered by Article 9 and how these
systems could contribute to solving the problems
of multiple testing and certification/registration
for traders and industries, including in particular
small and medium size enterprises.  This exercise
will also address the extent to which internationalguides and recommendations contribute to the
establishment of these systems, and the possible
technical assistance needed for developing
countries to develop operational conformity
assessment procedures within the context ofArticles 11.6, 11.7 and 12.5.
Article 12.7Members shall, in accordance with the provisions
of Article 11 (see above), provide technical
assistance to developing country Members to
ensure that the preparation and application of
technical regulations, standards and conformityassessment procedures do not create unnecessary
obstacles to the expansion and diversification of
exports from developing country Members.  In
determining the terms and conditions of the
technical assistance, account shall be taken of thestage of development of the requesting Members
and in particular of the least-developed country
Members.)At the workshop on Technical Assistance and
Special and Differential Treatment, a number of
presentations were made on the technical and
financial assistance already being provided by
national and international conformity assessmentsystems to developing countries. 
26
Provisions relating to least-developed country Members
Article 11.8
In providing advice and technical assistance to
other Members in terms of Article 11:1 to 11:7,
Members shall give priority to the needs of the
least-developed country Members.
                                                     
26 G/TBT/SPEC/15 contains the programme workshop.WT/COMTD/W/77
Page 45
G. TRADE -RELATED INVESTMENT MEASURES
There are four special and differential treatmen t provisions in the TRIMS agreement, which
fall into three separate categories as follows:
1. Flexibility of commitments, of action, and use of policy instruments:
One provision (Article 4).
2. Transitional time periods:
Two provisions (Article 5.1 and 5.2).
3. Provisions relating to least-developed country Members:
One (Article 5.2).  It should be noted that the provision for least-developed countries is a
modified version of the transition time-period provision available to all developing countries.
All special and differential treatment provisions under the TRIMs agreement relate to actions
developing countries may take as a result of time-bound exemptions.  The information in the right
hand column shows the extent to which developing countries have had recourse to these provisions.
Provision Comment
Flexibility of commitments, of action, and use of policy instruments
Article 4 (Developing Country Members)
A developing country Member shall be free to
deviate temporarily from the provisions of
Article 2 to the extent and in such a manner as
Article XVIII of GATT 1994, the Understanding
on the Balance-of-Payments Provisions of GATT1994, and the Declaration on Trade Measures
Taken for Balance-of-Payments Purposes
adopted on 28 November 1979 (BISD 26S/205-
209) permit the Member to deviate from the
provisions of Articles III and XI of GATT 1994.In the TRIMs Committee a developing country
Member cited this provision as justifying some
measures it has taken; some other Members
questioned this justification. (G/TRIMS/M/9,
paragraphs 30-37 and G/TRIMS/M/10paragraphs 16-22).
Transitional time periods
Article 5:2
Each Member shall eliminate all TRIMs which
are notified under Article 5.1, within two years ofthe date of entry into force of the WTO
Agreement in the case of a developed country
Member, within five years in the case of a
developing country Member, and within seven
years in the case of a least-developed countryMember.Notifications under Article 5.1 have been
submitted by 26 Members.  For most Membershaving made notifications, the Article 5.2
transition period for elimination of the TRIMs
expired on 1 January 2000.
Issues that have arisen with respect to Article 5
include the question of what measures should benotified under Article 5.1, as well as the question
of whether TRIMs notified after the deadline are
still entitled to benefit from the transition period.
(WT/G/TRIMS/M/2-7)WT/COMTD/W/77
Page 46
Provision Comment
Article 5:3
On request, the Council for Trade in Goods mayextend the transition period for the elimination of
TRIMs notified under Article 5.1 for a developing
country Member, including a least-developed
country Member, which demonstrates particular
difficulties in implementing the provisions of thisAgreement.  In considering such a request, the
Council for Trade in Goods shall take into
account the individual development, financial
and trade needs of the Member in question.As of 1 October 2000, nine developing country
Members have requested extensions of the
transition period pursuant to Article 5.3.  In the
Council for Trade in Goods there has been
discussion on how these requests might be
handled. (G/C/M/41 G/C/M/42 and G/C/M/43).At its meeting of 8 May 2000, The General
Council agree to direct the Council for Trade in
Goods to give positive consideration to individual
requests presented in accordance with Article 5.3
by developing countries for extension of
transition periods for implementation of the
TRIMs Agreement. (WT/GC/M/55).
Provisions relating to least-developed country Members
Article 5.2Each Member shall eliminate all TRIMs which
are notified under Article 5.1 […]within seven
years in the case of a least-developed country
Member.One least-developed country Member notified
TRIMS under Article 1.  To date, no request for
extension has been received.WT/COMTD/W/77
Page 47
H. AGREEMENT ON IMPLEMENTATION OF ARTICLE VI (A NTI-DUMPING ) OF THE GATT 1994
The agreement on the implementation of Article VI contains one provision for the special and
differential treatment of developing country members (Article 15), which falls under the category of
provisions under which WTO Members should safeguard the interests of developing country
Members.
General comments
It was alleged that the proliferation of anti-dumping measures directed against products from
developing countries (particularly textiles and clothing) and the harassing effects of such measures
has been raised.  Some developing countries have emphasised that Members who have reasons to take
anti-dumping action should do so with care and responsibility and ensure that any action was incompliance with the Agreement, so as not to unnecessarily disrupt trade between Members
Provision Comment
Provisions under which WTO Members should safeguard the interests of developing country
Members
Article 15 (Developing Country Members)It is recognized that special regard must be given
by developed country Members to the specialsituation of developing country Members when
considering the application of anti-dumping
measures under this Agreement.  Possibilities of
constructive remedies provided for by this
Agreement shall be explored before applyinganti-dumping duties where they would affect the
essential interests of developing country
Members.Concerns have been expressed with regard to
inconsistencies in the legislation of certainMembers and the way in which such legislation
was applied.  In two separate cases, developing
country Members contended that their rights
under Article 15 had not been given full
recognition.  The developed countries whoseactions were concerned disputed these
contentions.  The need has been expressed by a
number of developing countries for the
Committee on Anti-Dumping Practices to act
with more teeth in the oversight of full andeffective implementation of the Agreement by
each Member.  In addition, more attention should
be given to the implementation of Article 15.
(G/ADP/M/9 paragraphs 109 and 121;
G/ADP/M/10; G/ADP/M/13 paragraph 83;
G/ADP/M/15, paragraphs 97-103; G/ADP/M/16,
paragraphs 66-79; G/ADP/AHG/W/68; and
G/ADP/AHG/W/78).  One developed country
delegation stated that Article 15 was not void ofcontent and that it had always adhered to it
scrupulously. (G/ADP/M/9)
One developed country Member commented
during its Trade Policy Review that there was
particular concern about the provisions relating to
S&D treatment for developing countries.  ThisMember, referring to Article 15 of the
Agreement, stated that, while the ArticleWT/COMTD/W/77
Page 48
Provision Comment
provided for constructive remedies to be explored
before applying anti-dumping duties where thesewould affect the essential interests of developing
countries, it had never been implemented because
it had not been clearly defined. (WT/TPR/M/33).WT/COMTD/W/77
Page 49
I. AGREEMENT ON IMPLEMENTATION OF ARTICLE VII OF THE GATT 1994, AND THE DECISION
ON TEXTS RELATING TO MINIMUM VALUES AND IMPORTS BY SOLE AGENTS , SOLE
DISTRIBUTORS AND SOLE CONCESSIONAIRES .
Agreement on Implementation of Article VII of the GATT 1994
The eight provisions for special and differential treatment under the Agreement fall under the
following broad headings:
1. Provisions under which WTO Members should safeguard the interests of developing country
Members:
One provision (Annex III.5).
2. Flexibility of commitments, of action, and use of policy instruments:
Two provisions (Annex III.3 and Annex III.4).
3. Transitional Time Periods:
Four provisions (Article 20.1; article 20.2; Annex III:1; and Annex III.2).
4. Technical Assistance:
One Provisions (Article 20.3)
In the course of the work of the Customs Valuation Committee, Members have made
statements and/or taken action in regard, or pursuant to, a number of the special and differentialtreatment provisions listed above.  The provisions in relation to which statements made or actions
taken have been recorded by the committee are detailed below.
Provision Comment
Provisions under which WTO Members should safeguard the interests of developing country
Members
Annex III:5
Certain developing countries may have problems
in the implementation of Article 1 of the
Agreement in so far as it relates to importationsinto their countries by sole agents, soledistributors and sole concessionaires.  If suchproblems arise in practice in developing countryMembers applying the Agreement, a study of thisquestion shall be made, at the request of suchMembers, with a view to finding appropriatesolutions.No request for a study has been made so far.
Flexibility of commitments, of action, and use of policy instruments
Annex III:3
Developing countries which consider that thereversal of the sequential order at the request ofthe importer provided for in Article 4 of theAgreement may give rise to real difficulties forEighteen developing country Members, of which
3 least-developed country members, have
invoked this paragraph.
27
                                                     
27 G/VAL/2/Rev.10/Corr.2WT/COMTD/W/77
Page 50
Provision Comment
them may wish to make a reservation to Article 4
in the following terms:"The Government of …......... reserves the rightto provide that the relevant provision of Article 4of the Agreement shall apply only when thecustoms author ities agr ee to the request to reverse
the order of Articles 5 and 6."If developing countries make such a reservation,the Members shall consent to it under Article 21of the Agreement.
Annex III:4
Developing countries may wish to make a
reservation with respect to Article 5:2 of the
Agreement in the following terms:
"The Government of …......... reserves the right to
provide that Article 5:2 of the Agreement shall beapplied in accordance with the provisions of the
relevant note thereto whether or not the importer
so requests."
If developing countries make such a reservation,
the Members shall consent to it under Article 21of the Agreement.Eighteen developing country Members, of which
2 least developed country members, have invoked
this paragraph.
28
Transitional time periods
Article 20.1Developing country Members not party to the
Agreement on Implementation of Article VII of
the GATT (Tokyo Round), may delay application
of the provisions of this Agreement for a period
not exceeding five years from the date of entryinto force of the WTO Agreement for such
Members.  Developing country Members who
choose to delay application of this Agreement
shall notify the Director-General of the WTO
accordingly.This provision had been invoked by
56 developing countries (of which
12 least-developed countries). For 29 of these
Members the provision expired on
1 January 2000 and for another 18, the provisionduring the year up to September 2000.
Article 20:2In addition to paragraph 1, developing countryMembers not party to the Agreement on
Implementation of Article VII of the GATT
(Tokyo Round), may delay application of
paragraph 2(b)(iii) of Article 1 and Article 6 for
a period not exceeding three years followingtheir application of all other provisions of this
Agreement.  Developing country Members that
choose to delay application of the provisions
specified in this paragraph shall notify the
Director-General of the WTO accordingly.This provision has been invoked by
48 developing countries  (of which 11 are
least-developed countries).
Annex III.1
                                                     
28 G/VAL/2/Rev.10/Corr.2WT/COMTD/W/77
Page 51
Provision Comment
The five-year delay in the application of the
provision  of the Agreement by developingcountry Members provided for in paragraph 1 of
Article 20 may, in practice, be insufficient for
certain developing country members.  In such
cases a developing country Member may request
before the end of the period referred to inparagraph 1 of Article 20 an extension of such
period, it being understood that the Members will
give sympathetic consideration to such a request
in cases where the developing country Member in
question can show good cause.A total of 20 Members have requested extensions
under this provision, and one Member requesteda second extension; thirteen of which have been
granted.  The duration of extensions granted
range from 1 year to two years.
Annex III.2Developing countries which currently valuegoods on the basis of officially established
minimum values may wish to make a reservation
to enable them to retain such values on a limited
and transitional basis under such terms and
conditions as may be agreed to by the Members.
(please also refer to Decision on texts relating to
minimum values and imports by sole agents, sole
distributors and sole concessionaires.)Seventeen developing country Members have
reserved their rights to retain minimum values
under  Annex III.2.  The Committee has adopted
four Decisions containing the terms and
conditions under which four Members may
continue to use minimum values while applying
the Agreement.
Technical assistance
Article 20:3Developed country Members shall furnish, on
mutually agreed terms, technical assistance to
developing country Members that so request.  On
this basis developed country Members shall draw
up programmes of technical assistance which
may include, inter alia, training of personnel,assistance in preparing implementation
measures, access to sources of information
regarding customs valuation methodology, and
advice on the application of the provisions of this
Agreement.In April 1998, the Committee on Customs
Valuation published an inventory of all technical
assistance activities undertaken up to that time by
WTO and WCO, on the basis of information
made available to the Secretariat.  Activities
relating to 52 Members were listed. It was notedthat "It is likely that many activities have not
been included for lack of information".
(G/VAL/W/25).  The Secretariat prepared a
checklist of priority activities for technical
assistance to assist Members in identifying gapsin activities aimed at the implementation of the
Agreement ( G/VAL/W/30).  A number of
developed country Members have, in the context
of the Committee on Customs Valuation,
provided information on technical cooperationactivities provided to developing country
members.
29  One developing country Member
also drew attention to the technical cooperation
activities it had carried out. 30  One developed
country Member identified the following keyprinciples with regard to the delivery of technical
assistance: the full participation by the recipients
for demand driven assistance; the establishment
                                                     
29 G/VAL/M/12; G/VAL/W/36; G/VAL/W/37 and Add.1; G/VAL/W/48; and G/VAL/W/49.
30 G/VAL/M/14WT/COMTD/W/77
Page 52
Provision Comment
of priorities and identification of specific problem
areas; the need to improve coherence between therelevant donors .
31
J. DECISION ON TEXTS RELATING TO MINIMUM VALUES AND IMPORTS BY SOLE AGENTS , SOLE
DISTRIBUTORS AND SOLE CONCESSIONAIRES .
The decision contains two provisions for special and differential treatment, both of which fall
under the category of Provisions under WTO Members should safeguard the interests of developing
country Members.
Provision Comment
Provisions under which WTO Members should safeguard the interests of developing country
Members
Decisions on Texts Relating to Minimum Valuesand Imports by Sole Agents, Sole Distributors
and Sole Concessionaries: Minimum values:
Text 1Where a developing country makes a reservation
to retain officially established minimum values
within the terms of Annex III:2  and shows good
cause, the Committee shall give the request for
the reservation sympathetic consideration.Where a reservation is consented to, the terms
and conditions referred to in Annex III:2 shall
take full account of the development, financial
and trade needs of the developing country
concerned.Please refer to section on Annex III.2 of the
document (page 49)
Text II
A number of developing countries have a concernthat problems may exist in the valuation of
imports by sole agents, sole distributors and sole
concessionaires.  Under  Article 20:1 (mentioned
in Section 2.7 of this document), developing
country Members have a period of delay of up to
five years prior to the application of the
Agreement.  In this context, developing countryMembers availing themselves of this provision
could use the period to conduct appropriate
studies and to take such other actions as are
necessary to facilitate application.
In consideration of this, the Committee
recommends that the Customs Co-operation
Council assist developing country Members, in
                                                                                                                                                                    
31 G/VAL/W/71WT/COMTD/W/77
Page 53
Provision Comment
accordance with the provisions of Annex II, to
formulate and conduct studies in areas identifiedas being of potential concern, including those
relating to importations by sole agents, sole
distributors and sole concessionaires.
K. AGREEMENT ON IMPORT LICENSING PROCEDURES .
The Agreement includes four special and diff erential treatment provisions, which can be
classified as follows:
1. Provisions under which WTO Members should safeguard the interests of developing country
Members:
Three provisions (Article 1.2; Article 3.5 (a)(iv); Article 3.5(j)).
2. Transitional Time Periods:
One provision (Article 2.2, footnote 5.)
Provision Comment
Provisions under which WTO Members should safeguard the interests of developing country
Members
Article 1.2  General Provisions
Members shall ensure that the administrative
procedures used to implement import licensingregimes are in conformity with the relevantprovisions of GATT 1994 including its annexesand protocols, as interpreted by this Agreement,with a view to preventing trade distortions thatmay arise from an inappropriate operation ofthose procedures, taking into account theeconomic development purposes and financial andtrade needs of developing country Members.This matter has not been raised in the Committee
on Import Licensing.  However, this provisionhas been invoked in di spute settleme nt cases.
For example see WT/DS169/R
Article 3:5(a)(iv) Non-automatic Import Licensing
Members shall provide, upon the request of any
Member having an interest in the trade in theproduct concerned, all relevant informationconcerning  where practicable, import statistics(i.e. value and/or volume) with respect to theproducts subject to import licensing.  Developingcountry Members would not be expected to takeadditional administrative or financial burdens onthis account.WT/COMTD/W/77
Page 54
Provision Comment
Article 3.5 (j) Non Automatic Import Licensing
In allocating licences, the Member should
consider the import performance of the applicant.In this regard, consideration should be given asto whether licences issued to applicants in thepast have been fully utilized during a recentrepresentative period.  In cases where licenceshave not been fully utilized, the Member shallexamine the reasons for this and take thesereasons into consideration when allocating newlicences.   Consideration shall also be given toensuring a reasonable distribution of licences tonew importers, taking into account thedesirability of issuing licences for products in
economic quan tities.  In this regard, special
consideration should be given to those importersimporting products originating in developingcountry Members and, in particular, the least-developed country Members.This matter has not been raised in the Committee
on Import Licensing.  However, this provision
has been invoked in dispute settlement cases.
Transitional time periods
Article 2:2 footnote 5 Automatic Import Licensing
A developing country Member, other than a
developing country Member which was a Party tothe Agreement on Import Licensing Proceduresdone on 12 April 1979, which has specificdifficulties with the requirements of Article 2:2subparagraphs (a)(ii) and (a)(iii)  may, upon
notification to the Committee, delay theapplication of these subparagraphs by not morethan two years from the date of entry into force ofthe WTO Agreement for such Member.Twenty-four developing country Members had
invoked the delayed application provisions sincethe entry into force of the WTO Agreement.   The
two-year period of delay allowed under the
Agreement has expired for all these Members,
and accordingly the obligations of Article
2.2(a)(ii) and (a)(iii) apply to all current WTOMembers.  It is recalled that the invocation of the
above provisions does not exempt Members from
the obligation to notify under Articles 1.4(a),
8.2(b) and 7.3 of the Agreement.  (G/LIC/W/14)
L. AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES
The agreement on Subsidies and Countervailing Measures contains 16 special and differential
treatment provisions some of which fall into more than one of the following categories:
1. Provisions under which WTO Members should safeguard the interests of developing country
Members:
Two provisions (Articles 27.1; and 27.15).WT/COMTD/W/77
Page 55
2. Flexibility of Commitments, of action, and use of policy instruments:
Ten provisions (Articles 27.2 (a) and Annex VII; Article 27.4; 27.7; 27.8, 27.9; 27.10;
27.11, 27.12, and 27.13).  It should be noted that article 27.2(a) is applicable to a subset of
developing countries, listed in Annex VII, and not developing countries as a whole.
3. Transitional Time Periods:
Seven provisions (Article 27.2 (b); Article 27.3; Articles 27.4 and 27.14 ; Article 27.5;
Article 27.6; and Article 27.11).
Articles 27.4, 27.6 and 27.11 are listed in both the flexibility and transition time periods
category, as their hybrid nature combines characteristics of both these categories.
In addition to these provisions applicable to developing countries, or a sub-group thereof, are
four provisions (Articles 29, 1-4) which apply to members in the process of transformation from a
centrally planned into a market, free-enterprise economy.
Provision Comment
Provisions under which WTO Members should safeguard the interests of developing country
Members
Article 27.1Members recognize that subsidies may play animportant role in economic development
programmes of developing country MembersIn relation to the Asian economic crisis, some
developing country Members have requested that
Article 27.1 should take its relevant meaning, so
that Members in crisis could be allowed to
recover, before additional burden is placed on
them. (G/SCM/M/16)
Article 27:15The Committee shall, upon request by aninterested developing country Member, undertake
a review of a specific countervailing measure to
examine whether it is consistent with the
provisions of 27:10 and 27:11 as applicable to
the developing country Member in question.No such request has been received by the SCM
Committee.
Flexibility of commitments, of action, and use of policy instruments
Article 27, paragraph 2(a)
The prohibition of paragraph 1 (a) of the
Article 3 shall not apply to developing countrymembers refered to in Annex VII.
Annex VII (Developing Country Members,
referred to in paragraph 2(a) of Article 27) The
developing country Members not subject to the
provisions of Article 3:1 (a)  under the terms ofArticle 27:2 (a) are: (a) Least-developed
countries designated as such by the United
Nations which are Members of the WTO. (b)
Each of the following developing countries which
are Members of the WTO shall be subject to theprovisions which are applicable to other
developing country Members according to Article
27.2 (b) when GNP per capita has reached
$1,000 per annum;  Bolivia, Cameroon, Congo,In the Committee on Subsidies and
Countervailing Measures, there was a complaintby a developing country Member that it should
have but had not been included in Annex VII(b)
which lists developing country Members not
subject to certain provisions of the Agreement on
Subsidies and Countervailing Measures.(G/SCM/M/13, paragraphs 103-111).
Another concern raised with respect to Annex
VII(b) was that the criterion for inclusion was
based on a measure of GNP per capita and that adeveloping country could be deleted from the list
as the GNP per capita exceeded the allowed
value, but that, due to a changed exchange rate,
the country could fall back below. (G/SCM/M/15WT/COMTD/W/77
Page 56
Provision Comment
Côte d’Ivoire, Dominican Republic, Egypt,
Ghana, Guatemala, Guyana, India, Indonesia,Kenya, Morocco, Nicaragua, Nigeria, Pakistan,
Philippines, Senegal, Sri Lanka and Zimbabweparagraph 68).
The Committee on Subsidies took note that the
GNP per capita per annum of four developingcountries have exceeded the figure listed inAnnex VII(b).
Article 27.4:
please refer to following section.
Article 27.7The provisions of Article 4 shall not apply to a
developing country Member in the case of export
subsidies which are in conformity with the
provisions of Article 27:2 through 27:5.  The
relevant provisions in such a case shall be thoseof Article 7.This provision has been invoked in the dispute
settlement context. (WT/DS/46/R)
Article 27:8
There shall be no presumption in terms  of Article
6.1 that a subsidy granted by a developing
country Member results in serious prejudice, as
defined in this Agreement.  Such serious
prejudice, where applicable under the terms of
Article 27:9, shall be demonstrated by positive
evidence, in accordance with the provisions ofArticle 6:3 through 6:8.In the context of a complaint by two developed
country Members concerning subsidies provided
by one developing country Member, the Panel
held that because there was more than 5 per cent
subsidization of the product at issue (one of the
forms of subsidization referred to in Article 6.1),
a serious prejudice claim could be broughtagainst the subsidizing developing country
Member on the basis of positive evidence.  The
Panel went on to find that, on the basis of the
positive evidence, the developing country
Member's subsidies at issue had caused seriousprejudice, through significant price undercutting,
to the interests of one of the complainants.
(WT/DS54/R-WT/DS55/R-WT/DS59/R-
WT/DS64/R).
[Note: Pursuant to Article 31, Article 6.1 appliedfor a period of five years from the date of entry
into force of the WTO Agreement, and could
have been extended for a further period by
consensus of the SCM Committee.  At the end of
the five-year period, no such consensus wasreached.]WT/COMTD/W/77
Page 57
Provision Comment
Article 27:9
Regarding actionable subsidies granted ormaintained by a developing country Member
other than those referred to in Article 6:1, action
may not be authorized or taken under Article 7
unless nullification or impairment of tariff
concessions or other obligations under GATT1994 is found to exist as a result of such a
subsidy, in such a way as to displace or impede
imports of a like product of another Member into
the market of the subsidizing developing country
Member or unless injury to a domestic industry in
the market of an importing Member occurs.This provision has not been invoked so far in the
dispute settlement context.
Article 27:10Any countervailing duty investigation of a
product originating in a developing country
Member shall be terminated as soon as the
authorities concerned determine that:  (a)  the
overall level of subsidies granted upon the
product in question does not exceed 2 per cent of
its value calculated on a per unit basis; or (b)the volume of the subsidized imports represents
less than 4 per cent of the total imports of the like
product in the importing Member, unless imports
from developing country Members whose
individual shares of total imports represent lessthan 4 per cent collectively account for more than
9 per cent of the total imports of the like product
in the importing Member.
Article 27:11For those developing country Members within the
scope of Article 27:2(b) which have eliminated
export subsidies prior to the expiry of the periodof eight years from the date of entry into force of
the WTO Agreement, and for those developing
country Members referred to in Annex VII, the
number in  Article 27:10(a) shall be 3 per cent
rather than 2 per cent.  This provision shall applyfrom the date that the elimination of export
subsidies is notified to the Committee, and for so
long as export subsidies are not granted by the
notifying developing country Member.  This
provision shall expire eight years from the date ofentry into force of the WTO Agreement.
(Article 27.10 (a): Any countervailing duty
investigation of a product originating in a
developing country Member shall be terminated
as soon as the authorities concerned determine
that: the overall level of subsidies granted upon
the product in question does not exceed 2 percent of its value calculated on a per unit basis).Five of the countervailing duty legislative
notifications reviewed by the Committee include
provisions relating to such favourable treatment.Additionally, twenty-seven Members have
notified the Committee that the full text of the
Agreement on Subsidies and Countervailing
Measures has been incorporated into their
domestic legal systems.WT/COMTD/W/77
Page 58
Provision Comment
Article 27:12
The provisions of Article 27:10 and 27:11 shallgovern any determination of de minimis under
Article 15:3.
Article 27:13The provisions of Part III (Actionable Subsidies)
shall not apply to direct forgiveness of debts,
subsidies to cover social costs, in whatever form,
including relinquishment of government revenueand other transfer of liabilities when such
subsidies are granted within and directly linked
to a privatization programme of a developing
country Member, provided that both such
programme and the subsidies involved aregranted for a limited period and notified to the
Committee and that the programme results in
eventual privatization of the enterprise
concerned.The Committee received and discussed one
notification made pursuant to this provision.
(G/SCM/N/13/BRA and Corr.1)
Transitional time periods
Article 27.2 (b)
The prohibition of Article 3.1(a) shall not apply
to: other developing country Members for a
period of eight years from the date of entry intoforce of the WTO Agreement, subject to
compliance with the provisions in Article 27:4.
Article 27.3The prohibition of Article 3.1 (b) shall not apply
to developing country Members for a period of
five years, and shall not apply to least developed
country Members for a period of eight years,
from the date of entry into force of the WTO
Agreement. (Article 27:3)Four developing country Members have invoked
this provision when notifying pursuant to Article25. (G/SCM/Q2/IND/5; G/SCM/Q2/NGA/4;G/SCM/Q2/PHL/5; and G/SCM/Q2/SEN/6).
Article 27.4
Any developing country Member referred to in
Article 27:2(b) shall phase out its export
subsidies within the eight-year period, preferably
in a progressive manner.  However, a developing
country Member shall not increase the level of its
export subsidies, and shall eliminate them withina period shorter than that provided for in this
paragraph when the use of such export subsidies
is inconsistent  with its development needs.  If a
developing country Member deems it necessary
to apply such subsidies beyond the eight-yearperiod, it shall not later than one year before the
expiry of this period enter into consultation with
the Committee, which will determine whether an
extension of this period is justified, after
examining all the relevant economic, financialand development needs of the developing country
Member in question.  If the CommitteeIn the context of a dispute between a developing
country Member and a developed-country
Member, the Panel held that Article 27 does not
displace Article 3.1(a) of the SCM Agreement
unconditionally, but, rather, that the exemption
for developing countries from the application ofthe Article 3.1(a) prohibition on export subsidies
is conditional on compliance with the provisions
in Article 27.4.  This finding was not appealed.
A report by the Appellate Body held that, " it is
clear that the conditions set forth in paragraph 4[of Article 27] are  positive obligations  for
developing country Members, not affirmative
defences." It concurred with the Panel Report
which stated that "it is for the complaining
Member to demonstrate that the developingcountry Member in question is not in compliance
with at least one of the elements laid out inWT/COMTD/W/77
Page 59
Provision Comment
determines that the extension is justified, the
developing country Member concerned shall holdannual consultations with the Committee to
determine the necessity of  maintaining the
subsidies.  If no such determination is made by
the Committee, the developing country Member
shall phase out the remaining export subsidieswithin two years from the end of the last
authorized period.Article 27.4."  (WT/DS46/R and
WT/DS46/AB/R).
Article 27.14
The Committee shall, upon request by an
interested developing country Member, undertake
a review of a specific countervailing measure to
examine whether it is consistent with itsdevelopment needs.No such request has been received by the SCM
Committee.
Article 27.5A developing country Member which has reached
export competitiveness  in any given product
shall phase out its export subsidies for such
product(s) over a period of two years.  However,
for a developing country Member which is
referred to in Annex VII and which has reached
export  competitiveness in one or more products,export subsidies on such products shall be
gradually phased out over a period of eight
years.No developing country Member has notified
having reached expor t compe titiven ess.
Article 27.6
Export competitiveness in a product exists if a
developing country Member's exports of that
product have reached a share of at least3.25 per cent  in world trade of that product for
two consecutive calendar years.  Export
competitiveness shall exist either (a) on the basis
of notification by the developing country Member
having reached export competitiveness or (b) onthe basis of a computation undertaken by the
Secretariat at the request of any Member.  For
the purposes of this paragraph, a products is
defined as a section heading of the Harmonised
System Nomenclature.  The Committee is toreview the operation of this provision  (i.e
Article 27:6) five years from its date of the entry
into force.)In the context of the mandated review of the
operation of Article 27.6, it was noted by
developed country members and one developingcountry Member that the Committee on Subsidies
and Countervailing Measures had had no
experience to date with the operation of the
mechanism for determining export
competitiveness in a product, as there had beenno notification from any Member that it had
reached export competitiveness as defined, nor
had any Member requested that the Secretariat
perform a calculation to determine whether
another Member had reached exportcompetitiveness.  Three developed country
Members contended that the definition of a
product as a product section heading under the
Harmonised System was too broad.
Article 27.11(please refer to previous section)WT/COMTD/W/77
Page 60
M. AGREEMENT ON SAFEGUARDS .
The Agreement on safeguards contains two special and differential treatment provisions:
1. Provisions under which WTO Members should safeguard the interests of developing country
Members:
One provision (Article 9.1 and Footnote 2).
2. Transitional time periods:
One provision (Article 9.2).
Provision Comment
Provisions under which WTO Members should safeguard the interests of developing country
Members
Article 9.1 and footnote 2
Safeguard measures shall not be applied against
a product originating in a developing country
Member as long as its share of imports of the
product concerned in the importing Member does
not exceed 3 per cent, provided that developing
country Members with less than 3 per cent importshare  collectively account for not more than 9
per cent of total imports of the product
concerned.
and footnote 2:
A Members shall immediately notify an action
taken under Article 9.1 to the Committee on
Safeguards.The following issues have arisen with regard to
Article 9.1 of the Agreement on Safeguards:
Opposition was voiced over the manner in which
one Member had applied Article 9.1 of the
Safeguards Agreement, to exclude one
developing Member from eligibility underArticle 9.1 on the grounds that that Member was
not included in the preference-giving Member's
list of GSP beneficiaries. (G/SG/M/9 and
G/SG/M/14).
In addition, there have been requests for details
regarding two developing country Members'
application of Article 9.1's requirement to
exclude from application of a measure imports
from developing countries with small importshares. (G/SG/M/13)
In the context of the imposition of a safeguard
measure, a developing country member imposing
the measure indicted that certain developing
country members were covered by the measuresbecause their share of total imports exceeded
three per cent, consistent with Article 9.1 of the
Agreement on Safeguards. (G/SG/M/14).
Transitional time periods
Article 9.2 Developing Country Members
A developing country Member shall have the rightto extend the period of application of a safeguardmeasure for a period of up to two years beyondthe maximum period provided for in Article 7:3.Notwithstanding the provisions of Article 7:5, adeveloping  country Member shall have the rightto apply a safeguard measure again to the importof a product which has been subject to such ameasure, taken after the date of entry into force ofThere has been to date no recourse to this
provision.WT/COMTD/W/77
Page 61
Provision Comment
the WTO Agreement, after a period of time equal
to half that during which such a measure has beenpreviously applied, provided that the period ofnon-application is at least two years.
N. GENERAL AGREEMENT ON TRADE IN SERVICES
The GATS contains 8 special and differential treatment provisions.  Their classification can
be broken down as follows:
1 Provisions aimed at increasing trade opportunities:
Two provisions (Article IV:1 and Article IV:2)
2 Provisions under which WTO Members should safeguard the interests of developing country
Members:
One provision (Article XIX:3)
3 Flexibility of commitments, of action. and use of policy instruments:
Two provisions (Article V:3; and Article XIX:2).
4 Technical Assistance:
Two provisions (Article XXV:2 and Paragraph 6 of the Annex on Telecommunication).
5 Provisions relating to least developed country Members:
One Provision (Article IV:3).
Provision Comment
Provisions aimed at increasing trade opportunities
Article IV:1
The increasing participation of developing
country Members in world trade shall be
facilitated through negotiated specific
commitments, by different Members pursuant to
Parts III and  IV  of this Agreement, relating to:(a)  the strengthening of their domestic services
capacity and its efficiency and competitiveness,
inter alia through access to technology on a
commercial basis; (b)  the improvement of their
access to distribution channels and informationnetworks; and (c)  the liberalization of market
access in sectors and modes of supply of export
interest to themA developing country member stated that
developed countries should adopt commercially
meaningful commitments in areas of interest to
developing countries to make Article IV
meaningful and effective (S/C/M/38,paragraph 42).  Some developing country
Members stated that developing countries had
experienced serious difficulties in participating in
the international trade in services. (S/C/M/39
paragraphs 10,11, 17, 20, 21, 23, 24).
One developing country Member stated that it
appeared that developed countries continued to
dominate services trade and that the expected
improvement in participation of developingcountries had not taken place.  This indicated the
need for special and more favourable treatment of
developing countries and suggested that
developed countries had offered service providersWT/COMTD/W/77
Page 62
Provision Comment
of developing countries inadequate access,
whereas those of developed countries had beenable to penetrate developing countries' markets.
(S/C/M/34, paragraph 37).  Data indicate that
there were 100 horizontal limitations with respect
to mode 4, compared to 20 for Mode 2.
A developed country member expressed the view
that it was important that developing countries
identified sectors of interest to them and that
Members considered the role of market opening
in services for the growth and the integration of a
country in the global economy. (S/C/M/35
paragraph 36, and S/C/M/38, paragraph 35).
Other developing country Members pointed to
the need to make Article IV operational.  A
developed country Member stated that the
primary means of accomplishing the objectives ofArticle IV was  to ensure that consumers in
developing countries – service suppliers,
manufacturers, and farmers, as well as
individuals – had to affordable, high-quality,
innovative services that meet their needs andbudgets.  Some of these services will be provided
on a cross-border basis, but most will be provided
through commercial presence.  For this reason, it
should be in a country’s economic interest to
remove restrictions and provide guaranteedaccess for foreign service providers to enter its
market through branches, subsidiaries,
representative offices, and other forms of
commercial presence. (S/C/W/119)
Article IV:2Developed country Members, and to the extent
possible other Members, shall establish contactpoints within two years from the date of entry
into force of the WTO Agreement to facilitate the
access of developing country Members' service
suppliers to information, related to their
respective markets, concerning:(a)commercialand technical aspects of the supply of services;
(b)registration, recognition and obtaining of
professional qualifications;  and (c)the
availability of services technology.All developed country Members, and many
developing country Members have establishedcontact points.
A developed country Member expressed the view
that not all relevant Members had complied with
the notification provision in Article IV:2,
regarding contact points. (S/C/M/43, paragraph41 and S/C/W/ 148).  Two developing country
Members stated that for example, it may be
useful for Members to review the operation of the
contact points provided for in Article IV.2.
(S/C/W/120)  At meeting of the Council forTrade in Services on 26 May it had been agreed
that, based on notifications by Members, the
Secretariat would produce a listing of enquiry
points as required by Article III:4 and of contact
points as required by Article IV:2 of the GATS.WT/COMTD/W/77
Page 63
Provision Comment
It had also been agreed that such listings would
be placed on the WTO Internet site.
Provisions under which WTO Members should safeguard the interests of developing countryMembers
Article XIX:3For each round, negotiating guidelines andprocedures shall be established.  For purposes of
establishing such guidelines, the Council for
Trade in Services shall carry out an assessment
of trade in services in overall terms and on a
sectoral basis with reference to the objectives ofthis Agreement, including those set out in
paragraph 1 of Article IV.  Negotiating
guidelines shall establish modalities for the
treatment of liberalization undertaken
autonomously by Members since previousnegotiations, as well as for the special treatment
for least-developed country Members under the
provisions of paragraph 3 of Article IV.At the request of the Council, the Secretariat
prepared a background note on the assessment of
trade, to complement its work on statistics
(S/C/W/27) and the economic effects of services
liberalisation (S/C/W/26 and S/C/W/26/Add.1).
Accordingly, the Secretariat prepared a note onRecent Developments in Services Trade
(S/W/C/94), which together with other existing
documents was meant to assist the Council in its
assessment of trade in services.
The Secretariat also produced an informal note on
"Developmental Aspects of Services
Liberalization."  Several delegations also
presented written submissions.  On the basis of
these documents Members had been conducting
an assessment of trade at the Council meetings
held between December 1998 and October 1999.
Flexibility of commitments, of action,  and use of policy instruments
Article V:3Economic Integration  (a) Where developing
countries are parties to an agreement of the type
referred to in Article V:1, flexibility shall be
provided for regarding the conditions set out in
Article V:1, particularly with reference to
Article V:1(b) thereof, in accordance with the level
of development of the countries concerned, bothoverall and in individual sectors and sub-sectors.
(b) Notwithstanding Article V:6, in the case of an
agreement of the type referred to in Article V:1
involving only developing countries, more
favourable treatment may be granted to juridicalpersons owned or controlled by natural persons of
the parties to such an agreement.It was felt that there was no need to clarify what
was meant by special and differential treatment of
developing countries in Article V. (S/C/M/35
paragraph 46)
In response to a question, it was clarified that the
need for flexibility with respect to coverage of
such agreements when a developing country wasinvolved was a point certainly raised and taken
note of in the reports of the CRTA.  (S/C/M/46,
paragraph 35)WT/COMTD/W/77
Page 64
Provision Comment
Article XIX:2
Negotiation of Specific Commitments  Theprocess of liberalization shall take place with due
respect for national policy objectives and the
level of development of individual Members, both
overall and in individual sectors.  There shall be
appropriate flexibility for individual developingcountry Members for opening fewer sectors,
liberalizing fewer types of transactions,
progressively extending market access in line
with their development situation and, when
making access to their markets available to
foreign service suppliers, attaching to such
access conditions aimed at achieving theobjectives referred to in Article IV. (see section
on Article IV).In the Uruguay Round, and the follow up
negotiations on basic telecommunications and
financial services, developing country Members.
have made use of flexibility appropriate to their
level of development by in the making of
commitments. For instance, of the 99 Memberswho have made commitments on 80 sectors or
fewer of the Sectoral Classification List, 98 are
developing country Members.  (S/C/W/94).  Use
has been made of time-delayed commitments
(phase ins) in some sectors.
Technical assistance
Article XXV:2Technical Co-operation  Technical assistance to
developing countries shall be provided at the
multilateral level by the Secretariat and shall be
decided upon by the Council for Trade in
Services.On 25 June 1999, the Services Council held a
special Information Session on
Telecommunication Services.  The Information
Session examined in depth technical assistance to
developing countries on regulatory issues such asthe establishment of an independent regulator,
interconnection and competitive safeguards.
Experts from other international
intergovernmental organizations including the
International Telecommunications Union and theWorld Bank participated as well as national
regulators from capitals. On 26 May 2000, the
Council for Trade in Services adopted the text of
the cooperation agreement between the
International Telecommunication Union and theWorld Trade Organization (S/C/9/Rev.1).
Subsequently, the ITU Council also adopted the
text at its annual session held on 19-28 July.
Paragraph 6 of the agreement states that the WTO
and ITU secretariats will endeavour to cooperateon matters relating to technical assistance and
technical cooperation.  A developing country
Member  stressed the importance of technical
assistance, which should not only be a
donor/recipient process, but also a sharing ofresources and a cooperative commitment.
XXV:2. (S/C/M/39, paragraph 24).
One delegation stressed that technical assistance
was particularly needed by those Members who
were undertaking regulatory reforms.  That
delegation was already involved in providingtechnical assistance in the telecommunicationsWT/COMTD/W/77
Page 65
Provision Comment
sector. (S/C/M/31 paragraph 28)
Annex on Telecommunications:  paragraph 6(c)
In cooperation with relevant international
organizations, Members shall make available,where practicable, to developing countries
information with respec t to telecommunications
services and developments in telecommunications
and information technology to assist in
strengthening their domestic telecommunicationsservices sector.
Provisions relating to least-developed country Members
Article IV:3 Increasing Participation ofDeveloping CountriesSpecial priority shall be given to the least-
developed country Members in the
implementation of Article IV:1 and 2.  Particular
account shall be taken of the serious difficulty of
the least-developed countries in acceptingnegotiated specific commitments in view of their
special economic situation and their
development, trade and financial needs.WT/COMTD/W/77
Page 66
O. THE AGREEMENT ON TRADE -RELATED ASPECTS OF INTELLECTUAL PROPERTY RIGHTS
The TRIPs agreement contains four provisions relating to special and differential treatment,
which can be classified in the following four categories:
1. Transitional Time Periods:
Two provisions (Article 65.2 and 65.4)
2. Technical assistance:
One provision (Article 67)
3. Provisions relating to least-developed country Members:
Three provisions (part of the Preamble to the Agreement; Article 66.1; and 66.2).
Provision Comment
Transitional time periods
Article 65:2
A developing country Member is entitled to delay
for a further period of four years the date of
application, as defined in paragraph 1, of theprovisions of this Agreement other than Articles 3,
4 and 5.Extensive use has been made of the transition
periods provided for developing and
least-developed countries in Articles 65 and 66 ofthe TRIPS Agreement.  Generally,  no difficulties
with respect to the use of these provisions have
been raised in the TRIPS Council, though the
extension of transition time-periods has been
discussed elsewhere.  The transition period fordeveloping countries under Article 65.2 expired on
1 January 2000.  At its meeting of 20-21 October
1999, the Council agreed that, for the review of the
national implementing legislation of Members for
whom the general transitional period under Article65 of the Agreement would expire on 1 January
2000, procedures would be used as had been
employed in the reviews of legislation that had
taken place so far (for concise procedures, see
JOB(99)/ 6928).  The first review meeting tookplace in June 2000 ( see item D(ii) of IP/C/M/27),
and further such meetings will take place in
November 2000 and in the year 2001.
To the extent that a developing country Member isobliged by this Agreement to extend product patentprotection to areas of technology not so
protectable in its territory on the general date of
application of this Agreement for that Member, as
defined in paragraph 2, it may delay the
application of the provisions on product patents of
Section 5 of Part II to such areas of technology for
an additional period of five years. (Article 65.4)A number of issues have arisen in regard to
compliance with the re lated "mailbox" and
exclusive marketing right provisions of Article
70.8 and 70.9.  This matter has figured regularly
on the agenda of the TRIPS Council (see
IP/C/M/26 and IP/C/M/27).  Moreover, it has been
the subject of four invocations of the dispute
settlement mechanism rela ting to three separate
matters, one of which was settled with a mutuallyWT/COMTD/W/77
Page 67
Provision Comment
agreed solution (IP/D/2/ Add.1), another of which
was the subject of two Panel Reports(WT/DS50/R, WT/DS79/ R) and an Appellate
Body Report (WT/DS50/AB/R) and the last of
which is at the consul tation phase (IP/D/18).
One developing country Member stated upon the
adoption of a report of the Appellate Body
(WT/DS50/AB/R) which conc luded that it had not
fulfilled its obligations under the TRIPS
Agreement that the overall effect of the reports of
the Panel and the Appellate Body appeared to
dilute, to a certain extent, what developing
countries had considered to be the flexibilitiesavailable to them under the transitional provisions
of the TRIPS Agreement. (WT/DSB/M/40,
page 7).
Technical assistance
Article 67
In order to facilitate the implementation of this
Agreement, developed country Members shallprovide, on request and on mutually agreed terms
and conditions, technical and financial
cooperation in favour of developing and
least-developed country Members.  Such
cooperation shall include assistance in the
preparation of laws and regulations on the
protection and enforcement of intellectualproperty rights as well as on the prevention of
their abuse, and shall include support regarding
the establishment or reinforcement of domestic
offices and agencies relevant to these matters,
including the training of personnel.Considerable attention has been given by the
TRIPS Council to the provision of technicalcooperation pursuant to Article 67 of the TRIPS
Agreement.  This issue has been a regular item on
the agenda of the Council's meetings, with a view
to monitoring complian ce with the obligation
contained in Article 67, sharing information on the
technical cooperation possibilities available and
providing an opportunity to identify any needs notadequately being addressed.  Developed countries
have provided, on an annual basis, for a special
technical cooperation review meeting normally
held in September of each year, reports on their
technical and financial cooperation activities ofrelevance (most recently in documents
IP/C/W/203 and addenda).  Furthermore, they
have notified contact points in their
administrations for technical cooperation on
TRIPS. (IP/N/7, revisions and addenda). Nosignificant concerns regarding the adequate
availability of technical cooperation have been
formulated in the TRIPS Council.
Intergovernmental organizations with observer
status in the TRIPS Council have also providedwritten information on their technical cooperation
activities relating to TRIPS matters (IP/C/W/202
and addenda 1-6), as has the WTO Secretariat
(IP/C/W/201).
Provisions relating to leas t-developed country Members
Preamble
Recognizing also the special needs of the
least-developed country Members in respect ofWT/COMTD/W/77
Page 68
Provision Comment
maximum flexibility in the domestic
implementation of laws and regulations in orderto enable them to create a sound and viable
technological base
Article 66.1In view of the special needs and requirements of
least-developed country Members, their economic,
financial and administrative constraints, and their
need for flexibility to create a viable technologicalbase, such Members shall not be required to apply
the provisions of this Agreement, other than
Articles 3, 4 and 5, for a period of 10 years from
the date of application as defined under
Article 65.1.  The Council for TRIPS shall, uponduly motivated request by a least-developed
country Member, accord extensions of this period.(see previous section on transition time periods).
Article 66:2
Developed country Members shall provide
incentives to enterprises and institutions in their
territories for the purpose of promoting and
encouraging technology transfer to
least-developed country  Members in order to
enable them to create a sound and viabletechnological base.In response to an invitation by the TRIPS Council
to developed country Members to supply
information on how Article 66.2 of  the TRIPS
Agreement is being implemented, information has
been provided in writing by developed country
Members (the number includes 12 member Statesof the European Union).  The following broad
categories of incentives have been notified: (i)
Export and investment promotion for developed
countries' enterprises, including investment
protection and promotion agreements, marketprospecting, investment advice and finance and
fostering business partnerships; (ii) Export finance
for developed countries' enterprises, including
loans, export guarantees and credits and risk
capital; (iii) Tax credits and other financialincentives for developed countries' enterprises,
including those for invest ment in technology and
investment in developing countries; (iv) Loans and
other support for enterprises in developing
countries; (v) Infrastructure projects in developingcountries including those with a technology
component or the provision of resources,
equipment, training and advice; (vi) Policies of
promoting the use of pa rticular technologies,
including technologies that are beneficial to theenvironment; (vii) Provision of technical
assistance and expertise to developing countries;
(viii) Conduct of research and development; (ix)
Provision of information and contacts, including
administrative, product and technical information
and organization of business meetings; (x)
Provision of education a nd training to developing
countries' nationals; (xi) Bilateral aid; (xii)WT/COMTD/W/77
Page 69
Provision Comment
Regional intergovernmental assistance
programmes; (xiii) Contributions to multilateraltechnical cooperation funds; (xiv) General policies
regarding technical and other assistance to
developing countries and least-developed
countries. One developing country Member
said that much of the technical assistance detailedin the developed country Members' submissions
did not necessarily comply with the specific
requirements of Article 66.2. 
32 A least-developed
country Member also questioned the relation of the
incentives notified to obligations under Article
66.2, and queried how they fit into a multilateral
format, given that most were based on bilateralinitiatives, and added that the measures listed did
not target LDCs as they included all countries.
33
The question of how to put notification andmonitoring of the implementation of Article 66.2
on a more systematic basis and how to facilitatefull compliance with its provisions is also under
discussion in the context of the special session of
the GC devoted to implementation issues.
                                                     
32 IP/C/M/27, paragraph 48.
33 and IP/C/M/27, paragraph 49.WT/COMTD/W/77
Page 70
P. UNDERSTANDING ON RULES AND PROCEDURES GOVERNING THE SETTLEMENT OF DISPUTES .
The Understanding on Rules and Procedures Governing the Settlement of Disputes contains
11 provisions relating to special and differential treatment, which can be classified as follows:
1. Provisions under which WTO Members should safeguard the interests of developing country
Members:
Seven provisions. (Article 4.10; Article 10.8; Article 12.10; Article 12.11; Article 21.2;
Article 21.7; and Article 21.8.)
2 Flexibility of commitment, of action, or use of policy instruments:
One provision (Article 3.12).
3. Technical assistance:
One provision (Article 27.2)
4 Provisions relating to least-developed country Members.
Two provisions (Article 24.1 and Article 24.2)
General comments with respect to the dispute settlement understanding
In the review of the Dispute Settlement Understanding, developing countries have raised
doubts as to the effective access of developing countries to the dispute settlement process and the lackof clarity regarding the manner in which the special and differential treatment provisions are
implemented.  It has been suggested that certain special and differential treatment Articles of the DSU
are not articulated in specific terms and that this needed to be corrected.  Articles 4.10, 8.10, 12.11,
21.2, 21.7 and 21.8 were specifically mentioned in this respect.  Even though the words "shall" and
"should" have been used, it is claimed that there is no way to ensure that such treatment is accorded todeveloping countries in practice.  It was therefore reiterated that there seemed to be a need for
developing a monitoring mechanism to check whether such requirements are adhered to.  That may
also be ensured by strengthening the language of for example Article 4.10 and Article 21.2 by
replacing the word "should" by "shall".  Additionally, it has been suggested that specific guidelines
need to be evolved to ensure rigorous implementation of provisions in favour of developing countries.(Job No. 6645, paragraph 319)
It has been stated that, as some Members have in-house legal services with WTO
jurisprudence expertise while other Members, especially developing country Members, lack both
familiarity with WTO law and legal experts to handle a case, it would not only seem fair but also
consistent with the due process principle of the DSU that a Member should be able to include private
counsel in its delegation to advocate its views and advise on legal matters before a panel and theAppellate Body.  (Job No. 6645, paragraph 142)
The view has been expressed that rather than promoting the idea of private law firms
representing the national interests of developing country Members, the WTO should concentrate its
efforts on identifying mechanisms aimed at stre ngthening the institutional framework of those
countries, in particular by promoting the technical development of their human resources.
(Job No. 6645, paragraph 141)
In a dispute, a developing country Member complained that if the Panel did not reconsider its
position on third party requests and allowed third parties to present arguments in support of theirlegitimate trade interests as the process unfolded, third party developing country Members would not
be able to adequately protect their interests in keeping with the commitments under the WTOWT/COMTD/W/77
Page 71
Agreement which encouraged growth and developmen t "in a manner consistent with their respective
needs and concerns at different levels of economic development." (WT/DSB/M/19 page 4)
Provision Comment
Provisions under which WTO Members should safeguard the interests of developing country
Members
Article 4:10During consultations Members should give
special attention to developing country Members'particular problems and interests.One developing country Member complained that
its request for consultations with another Member(developed) had been disregarded, thus
discriminating against and impairing its interests
in deviation from the provisions of Article 4.10
of the DSU. "  (WT/DSB/M/7, page 2).
Article 8.10When a dispute is between a developing country
Member and a developed country Member thepanel shall, if the developing country Member so
requests, include at least one panellist from a
developing country Member.On a number of occasions, panelists from
developing countries have been included on therequest of developing country Members.
Article 12.10In the context of consultations involving and
measures taken by a developing country Member,
the parties may agree to extend the periodsestablished in paragraphs 7 and 8 of Article 4.
If, after the period has elapsed, the consulting
parties cannot agree that the consultations have
concluded, the Chairman of the DSB shall
decide, after consultation with the parties,
whether to extend the relevant period and, if so,
for how long.  In addition, in examining acomplaint against a developing country Member,
the panel shall allow sufficient time for the
developing country Member to prepare and
present its argumentation.  The provisions of
paragraph 1 of Article 20 and paragraph 4 ofArticle 21 are not affected by any action pursuant
to this paragraph.In a dispute, a developing country defendant
contended that the process raised a number of
questions in relation to the DSU such as (i) thereal difficulties faced by developing countries on
the insistence by a developed country that
consultations be held only in Geneva; (ii) the
meaning and significance of the consultations
stage; (iii) whether a Member could decide
unilaterally that consultations had been concluded
in particular since Article 12.10 of the DSUprovided that "In the context of consultations
involving a measure taken by a developing
country Member, the parties may agree to extend
the period established in paragraphs 7 and 8 of
Article 4." (WT/DS B/M/2,  page 4).
Article 12.11
Where one or more of the parties is a developing
country Member, the panel's report shall
explicitly indicate the fo rm in which account has
been taken of relevant provisions on differentialand more-favourable treatment for developingcountry Members that form part of the coveredagreements which have been raised by thedeveloping country Member in the course of thedispute settlement procedures.Panel reports show that this provision has been
taken into account : for example, see:
WT/DS135/R/Add.1;WT/DS161/R; WT/DS46/R;WT/DS64/R; WT/DS70/RW; WT/DS90/R; and
WT/DS/141.WT/COMTD/W/77
Page 72
Provision Comment
Article 21.2
Surveillance of Implementation ofRecommendations and Rulings: Particular
attention should be paid to matters affecting the
interests of developing country Members with
respect to measures which have been subject to
dispute settlement.
Article 21.7If the matter is one which has been raised by adeveloping country Member, the DSB shall
consider what further action it might take which
would be appropriate to the circumstances.
Article 21:8
If the case is one brought by a developing
country Member, in considering what
appropriate action might be taken, the DSB shalltake into account not only the trade coverage of
measures complained of, but also their impact on
the economy of developing country Members
concerned.This provision has been taken into account in
cases brought before the DSB ( see for example
WT/DSB27/ARB/ECU.)It has been pointed out that the Article does not
oblige the other party to the dispute to accept
such an offer.  It was therefore suggested that a
sentence could be added saying that the parties to
the dispute shall enter into such a process, in
good faith, in accordance with the provisions of
Article 5. (Job 6645, paragraph 317)
Flexibility of commitments, of action, or use of policy instruments
Article 3:12Notwithstanding Article 3:11, if a complaint
based on any of the covered agreements is
brought by a developing country Member against
a developed country Member, the complaining
party shall have the right to invoke, as an
alternative to the provisions contained in Articles
4, 5, 6 and 12 of this Understanding, thecorresponding provisions of the Decision of 5
April 1966 (BISD 14S/18), except that where the
Panel considers that the time-frame provided for
in paragraph 7 of that Decision is insufficient to
provide its report and with the agreement of thecomplaining party, that time-frame may be
extended.  To the extent that there is a difference
between the rules and procedures of Articles 4, 5,
6 and 12  and the corresponding rules and
procedures of the Decision, the latter shallprevail.To date this provision of the DSU has not been
used by any developing countryWT/COMTD/W/77
Page 73
Provision Comment
Technical assistance
Article 27.2
While the Secretariat assists Members in respectof dispute settlement at their request, there mayalso be a need to provide additional legal adviceand assistance in respect of dispute settlement to
developing country Members.  To this end, theSecretariat shall make available a qualified legalexpert from the WTO technical cooperationservices to any developing country Member whichso requests. This expert shall assist thedeveloping country Member in a manner ensuringthe continued impartiality of the Secretariat.It has been stated that there is a need to review
the application of Article 27.2 of the DSU to
make it more operational and effective inextending assistance with respect to dispute
settlement matters to developing countries.  It has
been suggested that the budget of the Secretariat
needs to be further supplemented to enable the
Secretariat to hire full time consultants and toupgrade the posts of legal officers so that
experienced personnel can be employed for this
purpose.  The legal advisors should constitute an
independent legal unit within the Secretariat in
order to ensure the neutrality required of theSecretariat itself.  It has also been stated that the
concept of "neutrality" of the WTO Secretariat
needs to be more clearly defined and perhaps
more loosely implemented as a strict
implementation of "neutrality" limits the natureand scope of legal services made available to the
developing Member countries and prevents legal
advisors of the WTO from effectively helping
developing country Members  in defending or
pleading a case.  Another suggestion was toestablish a trust fund to finance strategic alliances
with lawyers' offices or private firms to expand
the scope of consultancy and advisory services.
(Job 6645, paragraphs 327-339)
Provisions relating to least-developed country Members
Article 24:1
At all stages of the determination of the causes of
a dispute and of dispute settlement procedures
involving a least-developed country Member,particular consideration shall be given to the
special situation of least-developed country
Members.  In this regard, Members shall exercise
due restraint in raising matters under these
procedures involving a least-developed country
Member.  If nullification or impairment is found
to result from a measure taken by a least-developed country Member, complaining parties
shall exercise due restraint in asking for
compensation or seeking authorization to
suspend the application of concessions or other
obligations pursuant to these procedures.No least-developed country has been involved in
disputes as complainants or respondents, or asthird parties in panel proceedings.WT/COMTD/W/77
Page 74
Provision Comment
Article 24:2
In dispute settlement cases involving aleast-developed country Member, where a
satisfactory solution has not been found in the
course of consultations the Director-General or
the Chairman of the DSB shall, upon request by a
least-developed country Member offer their goodoffices, conciliation and mediation with a view to
assisting the parties to settle the dispute, before a
request for a panel is made. The
Director-General or the Chairman of the DSB, in
providing the above assistance, may consult any
source which either deems appropriate.No least-developed country has been involved in
disputes as complainants or respondents, or asthird parties in panel proceedings.WT/COMTD/W/77
Page 75
Q. LEAST -DEVELOPED COUNTRIES
Decision on Measures in Favour of Least-Developed Countries
Provision Comment
Paragraph 1
If not already provided for in the instruments
negotiated in the course of the Uruguay Round,
notwithstanding their acceptance of theseinstruments, the least-developed countries, andfor so long as they remain in that category,while complying with the general rules set outin the aforesaid instruments, will only berequired to undertake commitments andconcessions to the extent consistent with theirindividual development, financial and tradeneeds, or their administrative and institutionalcapab ilities.  The least- developed countries
shall be given additional time of one year from15 April 1994 to submit their schedules asrequired in Article XI of the Agreement
Establishing the World Trade Organization.The period was further extended until
December 1995.
21 least-developed countries became originalWTO Members in accordance with thisMinisterial Decision, and their schedules were
annexed to the Marrakesh Protocol.
Paragraph 2 (i)
Expeditious implementation of all special anddifferential measures taken in favour of least-developed countries including those takenwithin the context of the Uruguay Round shallbe ensured through, inter alia , regular reviews
(which currently take place in the Committee
on Trade and Development).The Committee on Trade and Development
conducted reviews at its meetings in
September 1996 and November 1997.
Paragraph 2 (ii)
To the extent possible, MFN concessions ontariff and non-tariff measures agreed in theUruguay Round on products of export interestto the least-developed countries may beimplemented autonomously, in advance andwithout staging.
Consideration shall be given to further improve
GSP and other schemes for products ofparticular export interest to least-developed
countries.On the occasion of the High-Level Meeting on
Integrated Initiatives for Least-DevelopedCountries' Trade Development held on 27-28 October 1997, Canada in the context ofsimplification of its tariff, announced that itintends to accelerate to 1998 most of itsUruguay Round tariff reductions currentlyscheduled for  implementation on 1 January1999.
On the occasion of the High-Level Meeting,
13 Members, both developed and developing,made announcements of steps they had orwould be taking to improve preferential marketaccess measures for least-developed countries.
At a meeting of the General Council in mayWT/COMTD/W/77
Page 76
Provision Comment
2000, the four largest trading partners
proposed to implement both tariff-free andquota-free treatment, consistent with domesticrequirements and international agreements,under their preferential schemes, for essentiallyall products originating in least-developed
countries.
Nine other members announced that they had
taken, or were intending to take,  measures toimprove the access of LDCs to their markets:These measures were in addition to thosewhich have already been taken by a number ofMembers since the 1997 High-Level Meetingfor LDCs or indeed earlier.
Please also refer to section on waive relating to
preferential tariff treatment of least-developed
countries by developing countries.
Paragraph 2 (iii)
The rules set out in the various agreements andinstruments and the transitional provisions inthe Uruguay Round should be applied in aflexible and supportive manner for the least-developed countries.  To this effect,sympathetic consideration shall be given tospecific and motivated concerns raised by theleast-developed countries in the appropriateCouncils and Committees.See, inter alia, articles 15.2, 16.1 and 16.2 of
the Agreement on Agriculture; Article 1.2 plusfootnote and Article 6.6(a) of the Agreementon Textiles and Clothing; and Articles 66.1and 66.2 of the TRIPs agreement.
Paragraph 2 (iv)In the application of import relief measures andother measures referred to in paragraph 3( c) of
Article XXXVII of GATT 1947 and thecorresponding provision of GATT 1994,special consideration shall be given to theexport interests of least-developed countries.
Paragraph 2 (v)Least-developed countries shall be accordedsubstantially increased technical assistance inthe development, strengthening and
diversification of their production and export
bases including those of services, as well as intrade promotion, to enable them to maximize
the benefits from liberalized access to markets.The High Level Meeting endorsed the
"Integrated Framework for Trade-relatedTechnical Assistance, including for Human and
Institutional Capacity-Building, to Support
Least-developed Countries in Their Trade andTrade-related Activities"(WT/LDC/HL/1/Rev.1).  The Frameworkseeks to increase the benefits that least-developed countries derive from the trade-related technical assistance available to themWT/COMTD/W/77
Page 77
Provision Comment
from  the six organizations involved in
designing this Framework: IMF, ITC,UNCTAD, UNDP, World Bank and WTO, aswell as from other multilateral, regional and
bilateral sources.
Paragraph 3:
To keep under review the specific needs of theleast-developed countries and to continue toseek the adoption of positive measures whichfacilitate the expansion of trading opportunities
in favour of these countries.Please refer to the relevant subsections above
on actions taken pursuant to the 1997 HLM onHigh-Level Meeting on Integrated Initiativesfor Least-developed Countries' TradeDevelopment; decisions taken with regard tothe operation of the Integrated Framework; andmarket access mesures undertaken pursuant tothe 1997 HLM or announced in the GeneralCouncil.  The section below on the 1999Decision on preferential tariff treatment forleast-developed countries also refers.
1999 Decision on waiver for preferential tariff treatment of Least Developed Countries
Provisions relating to measures to assist least-developed country Members
Provision Comment
Subject to the terms and conditions set out
hereunder, the provisions of paragraph 1 of
Article I of the GATT 1994 shall be waived until
30 June 2009, to the extent necessary to allowdeveloping country Members to provide
preferential tariff treatment to products of least
developed countries, designated as such by the
United Nations, without being required to extend
the same tariff rates to like products of any otherMember.To date, 1 notification has been submitted under
this decision (WT/COMTD/N/12rev1).
__________