   
  
JOB/TN/CTD/7  
JOB/TNC/120  
 
28 November 2023  
(23-8047) Page: 1/5 
Committee on Trade and Development Special Session 
Trade Negotiations Committee  Original: English  
 
G-90 DOCUMENT FOR THE SPECIAL SESSION OF THE COMMITTEE ON TRADE  
AND DEVELOPMENT (CTD -SS) ON SPECIAL AND DIFFERENTIAL TREATMENT  
PROPOSALS ON THE TRADE -RELATED INVESTMENT MEASURES  
SUBMISSION BY  SOUTH AFRICA  ON BEHALF OF THE ORGANISATION OF AFRICAN,CARIBBEAN 
AND PACIFIC STATES (OACPS), THE AFRICAN GROUP AND THE LDC GROUP  
The following communication, dated  22 November 2023 , is being circulated at the request of the 
Delegation of South Africa on behalf of the O rganisation of African, Caribbean and Pacific States 
(OACPS), the African Group and the LDC Group.  
 
_______________  
 
1  INTRODUCTION  
1. The G -90 submits the proposals herein in pursuance of the work directed under 
Paragraph 2 of the 12th Ministerial Conference ( MC12) of the world Trade Organization 
(WTO) Outcome Document (WT/MIN(22)/24 – WT/L/1135) . This contribution seeks to 
advance work on the review of special and differential treatment (SDT) with a view to strengthening 
them and making them more precise, effe ctive, and operational in line with paragraph 44 of the 
Doha Ministerial Declaration.  
2. The submission of the textual proposals in relation to the Agreement on Trade -Related 
Investment Measures (TRIMS Agreement) builds on the G -90 submission presented to the  Special 
Session of the Committee on Trade and Development (CTD -SS) contained in document 
JOB/TN/CTD/2 - JOB/TNC/106 as part of the ten Agreement -Specific Proposals (ASPs) that the G -90 
is tabling for negotiations towards outcomes by latest MC13, in line w ith and consistent with the 
roadmap that was proposed and presented by G -90 to the CTD -SS and subsequently agreed by the 
committee at its meeting on 20 March 2023.  
2  THE RATIONAL E BEHIND THE G -90 AGREEMENT SPECIFIC PROPOSALS  
3. The G90 recalls the following key  principles towards realisation of  SDT provisions that are 
precise, effective and operational, in line with the negotiating mandate:  
• SDT for developing and least developed countries is an integral part of the multilateral 
trading system architecture and a treaty embedded right.  
• The mandate under paragraph 44 of the Doha Declaration  and reaffirmed at MC12  is to 
review SD T provisions under the covered Agreements with a view to strengthening them 
and making them more precise, effective and operational.  
4. The G -90 is not seeking blanket exemptions from commitments, but instead seeks to ensure 
effective implementation of existing S&D provisions. The proposals aim to operationalize the 
collective commitments of the WTO Membership in several WTO agreements to facilitate the effective 
integration of developing and least developed countries (LDCs) into the multilateral trading system.  
5. SDT is not confined to transitional periods and capacity building and technical assistance, but 
should be intrinsically embedded in the trade rules to allow policy flexibility to developing countries 
and LDCs to achieve their development objectives , and under conditions of certainty . JOB/TN/CTD/7 • JOB/TNC/120  
 
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  6. The G -90 proposals have been crafted with a view to ensuring stability, predictability and 
transpare ncy in the implementation of existing S&D provisions, and thus strengthening a key area 
of the multilateral trading system in favour and benefit of the interests of developing countries, 
including LDCs. These proposals are the result of careful and detaile d deliberations among G -90 
members, taking into account the needs of members at different levels of development.  
3  THE CASE FOR STRENGTHENING SPECIAL AND DIFFERENTIAL TREATMENT IN THE 
TRIMS AGREEMENT  
7. Structural transformation, including industrialization an d economic diversification, remain key 
objectives for developing and least - developed countries (LDCs) and necessary to address 
development objectives, including poverty alleviation as well transition to sustainable economies. In 
this endeavour, raising ma nufacturing productivity and production and exports of higher value -
added products are crucial. Yet today, many developing countries remain commodity dependent 
(See Annex 1 ), and primary products continue to be dominant in the export composition of many 
developing counties.1 According to UNCTAD 's 'The State of Commodity Dependence ' report (2023) , 
"95 of 142 developing countries (66.9 per cent) were commodity -dependent during 2019 – 2021".2  
8. In this context, and according  to UNCTAD, the share of developing countries in global exports 
was still only 42% in 2022,3 despite the fact that over 70% of world population lives in these 
countries. The share of LDCs in global exports was around 1% in 20224. The target for Sustainab le 
Development Goal (SDG) 17.11 is to 'significantly increase the exports of developing countries, in 
particular with a view to doubling the least developed countries ' share of global exports by 2020 '.5 
When that SDG was agreed,6 LDCs' share of global ex ports was 0.9% and in 2022 it had only 
increased to 1%,7 so the goal of reaching 1.8% by 2020 has already been missed.  
9. Developing countries and LDCs face  ample challenges in the pursuit of economic 
diversification , and in enhancing economic, social and en vironmental resilience . The adverse terms 
of trade and continued dependence on commodity exports8 have made many of these countries 
vulnerable and prone to chronic current account deficits or shallow surpluses. The solutions are often 
restrained by the cu rrent trade rules, which were designed with the absence of many developing 
countries and without accounting for their longer -term development needs.  
10. Trade -related investment measures (TRIMs) assumes a renewed importance in the policy 
toolbox that developi ng countries require today in order to achieve their development goals, which 
require industrialization and structural transformation while enabling just transitions towards climate 
resilient economies and societies. UNCTAD has called for 'industrializatio n based on minimal use of 
fossil fuel machinery and an emphasis on local production to meet basic needs' and for 'coordinated 
industrial policies based on intellectual property and technology available within the global South'.9 
Thus, tools as TRIMs are especially important as governments are expected to undertake measures 
with multiple policy objectives including the enabling of industrialization while at the same time 
seeking a  switch from carbon -intensive to clean energy sources .  
11. More recently in the c ontext of the polycrisis, governments in many developed economies 
have been implementing industrial policies and measures that would qualify as investment -related 
trade measures in the name of addressing inflation or the needed transformation to respond to  the 
climate crisis and in some cases fall in tension with the WTO rules. For example, the measures 
subject to local content requirements  adopted under the Inflation Reduction Act by the United  States  
is in effect a clear statement that policy tools that h ave been restricted under WTO rules  continue 
to be needed to enable an industrialization and economic structural transformation that allows 
meeting the climate and environmental goals. Developed countries , through  unilateral interventions , 
 
1 See: UNCTAD, 'The State of Commodity Dependence ' Report (2023), available at: 
https://unctad.org/publication/state -commodity -dependence -2023 
2 UNCTAD, 'The State of Commodity Dependence ' Report (2023), available at: 
https://unctad.org/publication/state -commodity -dependence -2023 
3 https://sdgpulse.unctad.org/trade -developing -economies/   
4 https://sdgpulse.unctad.org/trade -developing -economies/   
5 https://www.un.org/sustainabledevelopment/globalpartnerships/   
6 In 2015, https://www.un.org/sustainabledevelopment/development -agenda -retired/   
7 https://sdgpulse.unctad.o rg/trade -developing -economies/   
8 i.e. where commodities on average constitute more than 60 per cent of the value of exports.  
9 Source https://unctad.org/tdr2022 . JOB/TN/CTD/7 • JOB/TNC/120  
 
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  are re-utilizing  such measures despite being  in tension with WTO rules , and irrespective of the impact 
on developing countries. It is also worth recalling that such measures  have been widely deployed  by 
developed countries in their period of industrialization .10  
12. Developi ng countries have for long been calling for a revisit of WTO rules to enable developing 
countries and LDCs the policy space to utilize such policy tools that are crucial for their 
developmental and industrialization trajectories, and the ability to enhance  domestic added value 
creation and reducing dependance on export of primary products . The proposition of the G -90 will 
enable developing countries and LDCs to better pursue policies to achieve industrialization, structural 
transformation, and diversificati on of their economies, with a view towards achieving the climate 
response and raise the standard of living of their population and integrate into the multilateral 
trading system on a sustainable basis. This proposal could also support the integration of de veloping 
country MSMEs in global trade. This proposal has become all the more relevant in the context of 
lessons learned from the COVID -19 pandemic, as it could contribute to the development of industrial 
and manufacturing capabilities in developing and le ast-developed countries for better responses and 
greater resilience in the face of similar crises in future.  
13. As such the G -90 proposes a temporarily time -bound deviation from the provisions of Article  2 
of the TRIMs Agreement for developing countries, to b e able to introduce new investment measures 
related to trade in goods (see Annex 2 ). The flexibility is targeted to only those measures needed 
for a clearly specified set of objectives (e.g. accelerate industrialization, move up the value chain, 
stimulate development and transfer of technology, address the digital divide, modernize the 
domestic manufacturing capabilities of small and medium enterprises and their contribution to 
employment generation, stimulate environmental -friendly methods or products, dev elopment of 
geographically disadvantaged regions…). Importantly, the measures will be temporary, coupled with 
transparency provisions through notifications to the Council for Trade in Goods. A special flexibility 
is proposed for LDCs for as long as they re main LDCs.  
 
 
 
10 Kumar, N. and Gallagher, K., 2007. 'Relevance of Policy Space for Development: Implications for  
Multilateral Trade Negotiations'. New Delhi: Research and Information System for Developing Countries. See 
also: Kumar, N., 2005. Performance requirements as tools of development policy: Lessons from developed and 
developing countries. Putting Development First.  JOB/TN/CTD/7 • JOB/TNC/120  
 
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  ANNEX 1  
 
 
 
 
Source: UNCTAD 2023  
JOB/TN/CTD/7 • JOB/TNC/120  
 
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  ANNEX 2  
TEXTUAL SUGGESTIONS ON THE AGREEMENT ON TRADE -RELATED INVESTMENT MEASURES  
1. Notwithstanding the obligations under Articles 4 and 5 of the TRIMs Agreement and 
Articles  III and XI of GATT, Members agree that developing countries shall be free to deviate 
temporarily from the provisions of Article 2 of the TRIMs Agreement, and introduce new 
investment measures related to trade in goods, in accordance with the following prov isions:  
a. Measures notified by developing countries under this provision  may be effective for an 
initial period that does not extend beyond 15 years or up to the time these objectives 
have been met in the developing country concerned (whichever is shorter), provided the 
selected measures fulfil one of the objectives stipulated below:  
i. Accelerate industrialization and achieve socio -economic transformation;  
ii. Upgrade and modernize the domestic manufacturing capabilities of small and 
medium enterprises and their co ntribution to employment generation;  
iii. Promote domestic manufacturing capabilities in high value -added sectors or 
technology intensive sectors;  
iv. Stimulate and facilitate the transfer or indigenous development of technology;  
v. Promote domestic competition and/or  correct restrictive business practices;  
vi. Promote purchases from disadvantaged regions in order to reduce regional 
disparities within their territories and support the development of geographically 
disadvantaged regions;  
vii. Stimulate environment -friendly metho ds or products and contribute to sustainable 
development;  
viii. Increase export capacity in cases where structural current account deficits would 
cause or threaten to cause a major reduction in imports;  
ix. Close the digital divide in industrial production.  
b. After the initial period, if the objectives of the measure are not fulfilled, a developing 
country Member undertaking measures under paragraph 1 may request an extension. 
For greater certainty , the Council for Trade in Goods shall, upon request by a developing 
country Member, accord  the requested extensions.  
2. Least -developed country Members (LDCs) may introduce and maintain measures that 
deviate from their obligations under the TRIMs Agreement. Members agree that LDCs shall 
not be obliged to implement,  apply or enforce the provisions of the TRIMS Agreement as 
long as they remain LDCs.  
3. Developing countries undertaking measures under paragraph 1 shall notify these new 
investment measures related to trade in goods  to the Council for Trade in Goods no later  
than six months after their adoption.  
__________  