WORLD TRADE
WT/COMTD/SE/W/20
9 February 2006
ORGANIZATION
(06-0562)
Committee on Trade and Development
Dedicated Session
Original: English
WORK PROGRAMME ON SMALL ECONOMIES:
AN ASSESSMENT OF THE PROGRESS TO DATE
Antigua and Barbuda, Barbados, Bolivia, Cuba, Dominica, Dominican Republic,
El Salvador, Fiji, Grenada, Guatemala, Honduras, Jamaica, Mauritius, Mongolia,
Nicaragua, Papua New Guinea, Paraguay, Solomon Islands, St. Kitts and Nevis,
St. Lucia, St. Vincent and the Grenadines and Trinidad and Tobago
The following communication, dated 3 February 2006, is being circulated at the request of the
above delegations.
_______________
MANDATES
The November 2001 Declaration of the 4th Ministerial Conference in Doha, Qatar, provides
the mandate for negotiations on a range of subjects and other work, including the mandate to establish
a work programme relating to the trade of small economies:
Paragraph 35:
"We agree to a work programme, under the auspices of the General Council, to examine
issues relating to the trade of small economies. The objective of this work is to frame
responses to the trade-related issues identified for the fuller integration of small, vulnerable
economies into the multilateral trading system, and not to create a sub-category of WTO
Members.
The General Council shall review the work programme and make
recommendations for action to the Fifth Session of the Ministerial Conference."
The General Council Decision of 1 August 2004 reaffirmed the mandate given at Doha by
stating that:
"The trade-related issues identified for the fuller integration of small, vulnerable economies
into the multilateral trading system, should also be addressed, without creating a
sub-category of Members, as part of a work programme, as mandated in paragraph 35 of the
Doha Ministerial Declaration."1
The December 2005 Declaration of the 6th Ministerial Conference in Hong Kong, China,
establishes:
Paragraph 41:
"We reaffirm our commitment to the Work Programme on Small Economies and urge
Members to adopt specific measures that would facilitate the fuller integration of small,
1
Paragraph 1(d) in the 1 August 2004 General Council Decision in document WT/L/579
WT/COMTD/SE/W/20
Page 2
vulnerable economies into the multilateral trading system, without creating a sub-category of
WTO Members. We take note of the report of the Committee on Trade and Development in
Dedicated Session on the Work Programme on Small Economies to the General Council and
agree to the recommendations on future work. We instruct the Committee on Trade and
Development, under the overall responsibility of the General Council, to continue the work in
the Dedicated Session and to monitor progress of the small economies’ proposals in the
negotiating and other bodies, with the aim of providing responses to the trade-related issues
of small economies as soon as possible but no later than 31 December 2006. We instruct the
General Council to report on progress and action taken, together with any further
recommendations as appropriate, to our next Session.
In addition to paragraph 41, the Declaration of the 6th Ministerial Conference also states the
following:

NAMA Negotiations - Paragraph 21 of the Declaration
We note the concerns raised by small, vulnerable economies, and instruct the Negotiating
Group to establish ways to provide flexibilities for these Members without creating a
sub-category of WTO Members.

Services Negotiations – Annex C, Paragraph 8
Due consideration shall be given to proposals on trade-related concerns of small economies.
PROPONENTS
The proponents of the Small and Vulnerable Economies Work Programme are:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Antigua and Barbuda
Barbados
Bolivia
Cuba
Dominica
Dominican Republic
El Salvador
Fiji
Grenada
Guatemala
Honduras
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
Jamaica
Mauritius
Mongolia
Nicaragua
Papua New Guinea
Paraguay
Solomon Islands
St. Kitts and Nevis
St. Lucia
St. Vincent and the Grenadines
Trinidad and Tobago
RECENT PROGRESS ON SMALL AND VULNERABLE ECONOMIES WORK PROGRAMME
Members agreed to explore a characteristics - based approach whereby characteristics
capable of identifying small, vulnerable economies have been discussed. Members have also
discussed some problems which could reasonably result from the combination of characteristics.
It was established that none of these characteristics and problems by itself can be
assumed to be unique to small, vulnerable economies. However, the proponents have argued
that it is the combination and intensity of several characteristics and problems that give rise to
vulnerability in small economies. Small, vulnerable economies also suffer from a lack of
resilience and exhibit difficulty in adjusting when faced with these problems.
WT/COMTD/SE/W/20
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Indicative List of Specific Characteristics and Problems:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
Physical isolation, geographical dispersal and distance from the main markets. Many
are Small Island or landlocked developing countries.
Insignificant participation in the multilateral trading system and a minimal share of
total world trade.
Small, fragmented and highly imperfect markets.
In general, very open economies.
Domestic markets with imperfect and highly polarized structures: either a multitude
of small and micro enterprises, or cartels/monopolies.
Minimal or no export diversification: concentration of exports on very few products
(especially commodities, traditional products and low value added goods).
Low supply of export services.
Dependent upon very few export markets.
Inadequate Infrastructure.
High degree of vulnerability.
Low competitiveness.
Low levels of productivity and insufficient supply.
Economic rigidity with high adjustment costs.
Unable to sustain diversified productions.
Considerable difficulties to attract foreign investment.
Lack of adequate market access opportunities to place their few export products.
High transport and transit costs.
During the CTD- Dedicated Session held in October 2005, Members agreed to the
continuation of the "two-track" approach in which the progress of Agreement-specific proposals
tabled in the relevant negotiating and other bodies be monitored by the CTD. This decision was
endorsed by the Ministerial Conference in Hong Kong, China, as is stated in the paragraph 41 of
the Ministerial Declaration.
PROPOSALS TABLED IN THE RELEVANT NEGOTIATING AND OTHER BODIES
Initial submissions have been made in the relevant negotiating bodies as follows:
AGRICULTURE - TN/AG/GEN/11 (11 November 2005)
Proponents: Barbados, Bolivia, Cuba, Dominican Republic, El Salvador, Fiji,
Guatemala, Honduras, Mauritius, Mongolia, Nicaragua, Papua New Guinea, Paraguay
and Trinidad and Tobago.
Small, Vulnerable Economies, with the exception of LDCs, whose average share of
world merchandise exports over the period 1995-2004 does not exceed 0.10 per cent, will make
a contribution to the reform process in agriculture according to the following provisions:



Small, Vulnerable Economies will undertake linear cuts not exceeding 15 per cent, with
a minimum of 10 per cent per tariff line, from the bound rate. No further commitments
will be expected from the Small, Vulnerable Economies on the basis of modalities that
may be agreed with respect to other elements under the market access pillar.
No tariff capping shall apply to the Small, Vulnerable Economies.
Modalities shall provide for substantial improvement in market access for products of
export interest to Small, Vulnerable Economies.
WT/COMTD/SE/W/20
Page 4




Small, Vulnerable Economies will designate SPs based on their food security,
livelihood security and rural development needs.
Special Products (SPs) of Small, Vulnerable Economies will be exempted from tariff
reductions and tariff rate quota commitments.
All agricultural tariff lines will be eligible for the Special Safeguard Mechanism (SSM).
SPs of Small, Vulnerable Economies will have automatic access to the SSM.
The Small, Vulnerable Economies insist that the SSM shall contemplate price and
volume-based triggers. Remedy measures should be effective and flexible to respond to
the needs of the Small, Vulnerable Economies.
NAMA - TN/MA/W/66 (11 November 2005)
Proponents: Antigua and Barbuda, Barbados, Bolivia, Dominica, Dominican Republic,
El Salvador, Fiji, Grenada, Guatemala, Honduras, Mongolia, Nicaragua, Papua New
Guinea, Paraguay, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines and
Trinidad and Tobago.
As their contribution to the NAMA negotiating process, small economies propose that
developing countries, not covered in paragraph 6 and paragraph 9 of Annex B, and whose
average share in total world merchandise exports does not exceed 0.10 per cent over the period
1995-2004, will be expected to:
(a)
Make tariff reductions not exceeding 15 per cent, but with minimum cuts of
10 per cent on individual lines and with no more than half the cuts at the lowest
level of this range. This contribution will ensure a significant reduction of
small economies' tariff averages as well as a reduction in individual tariff lines.
(b)
On the treatment of unbound tariffs, small economies whose binding coverage
is more then 90 per cent commit themselves to the objective of full tariff
binding as an outcome of the NAMA negotiations. However, newly bound
tariff lines will not be subject to reductions through the formula during these
negotiations. Small economies are open to discuss a possible target rate at
which these tariffs should be bound or a maximum rate at which to bind these
lines.
Small, vulnerable economies firmly believe that only tariff reductions compatible with
their capacity to sustain trade reforms, as spelt out in this paper, are likely to efficiently
discharge the Doha mandate. In this context, small economies will continue to have access to
flexibilities such as those outlined in paragraph 8 of Annex B.
RULES
FISHERIES
(13 September 2005)
SUBSIDIES
DISCIPLINES
-
TN/RL/GEN/57/Rev.2
Proponents: Antigua and Barbuda, Barbados, Dominican Republic, Fiji, Grenada,
Guyana, Jamaica, Papua New Guinea, St. Kitts and Nevis, St. Lucia, Solomon Islands
and Trinidad and Tobago.
Small vulnerable coastal states seek appropriate special and differential treatment in any
disciplines on fisheries subsidies. In this regard the following should not be subject to subsidies
disciplines:
WT/COMTD/SE/W/20
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(i)
Any development assistance to developing coastal states;
(ii)
Assistance to artisanal or small-scale fisheries. This requires a
consensus on the definition of artisanal or small-scale. Some existing
definitions of artisanal are based on vessel size in metres, capacity in
gross registered tonnage (GRT), or area of operation in terms of
proximity to the shoreline. We invite discussions on prevailing
definitions used by Member States and possible approaches for arriving
at a definition for use in the WTO; to facilitate the discussions, the
sponsors of this paper will share information with Members on
definitions currently being used in their respective jurisdictions;
(iii)
Access fees in fisheries access agreements;
(iv)
Fiscal Incentives - to facilitate the development of capabilities of small
vulnerable coastal states.
It is proposed that the special and differential treatment provisions of the ASCM for
Least-Developed Countries be maintained in future disciplines.
TECHNICAL BARRIERS TO TRADE - WT/COMTD/SE/W/15 (18 October 2005)
Proponents: Antigua and Barbuda, Barbados, Cuba, Dominica, Fiji, Grenada,
Jamaica, Mauritius, Papua New Guinea, Solomon Islands, St. Kitts and Nevis,
St. Vincent and the Grenadines.
Recognising the contribution that international standards and conformity assessment
systems can have in improving efficiency of production and facilitating the conduct of
international trade, the General Council is to recommend to the Ministerial Conference that
there shall be explicit recognition of Members' rights to designate a regional body to provide
such technical support as is necessary to assist them in fulfilling their obligations under the TBT
Agreement. Members and the WTO, within its competence, shall provide the technical and
financial assistance required to enable these small, vulnerable economies to fulfil their
objectives under this Agreement.
SANITARY
AND
(18 October 2005)
PHYTOSANITARY
MEASURES
-
WT/COMTD/SE/W/16
Proponents: Antigua and Barbuda, Barbados, Cuba, Dominica, Fiji, Grenada,
Jamaica, Mauritius, Papua New Guinea, Solomon Islands, St. Kitts and Nevis,
St. Vincent and the Grenadines.
Recognising the special difficulties encountered by the co-sponsors of this proposal in
complying with SPS measures, and as a consequence in access to markets, and also in the
formulation and application of SPS in their own territories, the General Council is to
recommend to the Ministerial Conference that there shall be explicit recognition that WTO
Members may designate a regional body to provide technical support as is necessary and to
carry out the functions necessary to assist them in implementing the provisions of the SPS
Agreement. Members and the WTO, within its competence, shall provide the technical and
financial assistance required to enable these small, vulnerable economies to fulfil their
objectives under this Agreement.
WT/COMTD/SE/W/20
Page 6
ACCESSION TO THE WTO - WT/COMTD/SE/W/17 (18 October 2005)
Proponents: Antigua and Barbuda, Barbados, Cuba, Dominica, Fiji, Grenada,
Jamaica, Mauritius, Papua New Guinea, Solomon Islands, St. Kitts and Nevis,
St. Vincent and the Grenadines.
It should be agreed that, in both the negotiations on rules in accession Working Parties
and in the negotiations on market access commitments, acceding small, vulnerable economies
will only be required to undertake commitments commensurate with their level of development.
In determining the terms of reference for accession Working Parties, appropriate consideration
should be given to the specific characteristics and vulnerabilities of acceding small, vulnerable
economies.
It should also be agreed that if a party to the negotiations on the accession of any
applicant country considers that the terms of reference of the relevant Working Party are not
being observed, it may request the establishment of a panel. This panel would be appointed by
the Director-General from a roster of independent experts, to examine the case and report with
recommendations to the General Council/Ministerial Conference.
INTELLECTUAL PROPERTY RIGHTS - WT/COMTD/SE/W/18 (18 October 2005)
Proponents: Antigua and Barbuda, Barbados, Cuba, Dominica, Fiji, Grenada,
Jamaica, Mauritius, Papua New Guinea, Solomon Islands, St. Kitts and Nevis,
St. Vincent and the Grenadines.
Recognising the underlying public policy objectives of national systems for the
protection of intellectual property, including developmental and technological objectives, and
also the need to enable these small, vulnerable economies to create a sound and viable
technological base, the General Council is to recommend to the Ministerial Conference that
there shall be explicit recognition of Members' rights to designate a regional body to provide
such technical support as is necessary to assist them in fulfilling their obligations under the
TRIPS Agreement. Members and the WTO, within its competence, shall provide the technical
and financial assistance required to enable these small, vulnerable economies to fulfil their
objectives under this Agreement.
SERVICES – INFORMATION NOTE (November 2005)
Proponents: Antigua and Barbuda, Barbados, Bolivia, Cuba, Dominica, Dominican
Republic, El Salvador, Fiji, Grenada, Guatemala, Honduras, Jamaica, Mauritius,
Mongolia, Nicaragua, Papua New Guinea, Paraguay, Solomon Islands, St. Kitts and
Nevis, St. Vincent and the Grenadines and Trinidad and Tobago.
The two-track process involving the CTD and negotiating groups has therefore emerged
as the process whereby the objective of framing responses to the trade related issues identified
for the fuller integration of small, vulnerable economies into the multilateral trading system is
being pursued.
Small Economies have already and will continue to demonstrate their engagement to the
services negotiations including through the tabling of initial and revised offers.
Taking the above into consideration, issues of concern to small, vulnerable economies
should be addressed satisfactorily in the services negotiations in order for these economies to
WT/COMTD/SE/W/20
Page 7
participate meaningfully in the multilateral trading system in accordance with their level of
development, market share, vulnerabilities and economic size and structure, without creating a
subcategory of WTO Members.
The Hong Kong Ministerial text recognises that "(N)egotiations shall have regard to the
size of economies of individual Members, both overall and in individual sectors and in this
respect, "Due regard shall be given to proposals on trade related concerns of small economies".
OTHER RELEVANT DOCUMENTS

Communiqué - Ministerial Meeting
WT/MIN(05)/222 (16 December 2005)
of
Small,
Vulnerable
Economies
Proponents: Antigua and Barbuda, Barbados, Belize, Bolivia, Cuba, Dominica,
Dominican Republic, El Salvador, Fiji, Grenada, Guatemala, Guyana, Honduras,
Jamaica, Mauritius, Mongolia, Nicaragua, Paraguay, Papua New Guinea, Solomon
Islands, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Trinidad and
Tobago.
2
Relevant documents also include WT/MIN(05)/22/Add.1 to Add.3, concerning request by
Maldives, Sri Lanka and Kyrgyz Republic to be added to the list of sponsors.
Table: Share of World Merchandise Exports (1995-2004) and Average - Annex to TN/AG/GEN/11 – AGRICULTURE
Year
(Percentage)
Small Economy
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
Average
World
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Antigua and Barbuda
0.0010
0.0010
0.0010
0.0010
0.0010
0.0010
0.0010
0.0010
0.0010
0.0010
0.0010
Barbados
0.0050
0.0050
0.0050
0.0050
0.0050
0.0040
0.0040
0.0030
0.0030
0.0020
0.0041
Bolivia
0.0220
0.0220
0.0220
0.0210
0.0190
0.0200
0.0210
0.0210
0.0210
0.0240
0.0213
Cuba
0.0320
0.0380
0.0330
0.0280
0.0270
0.0270
0.0280
0.0220
0.0230
0.0250
0.0283
Dominica
0.0010
0.0010
0.0010
0.0010
0.0010
0.0010
0.0010
0.0010
0.0010
0.0000
0.0009
Dominican Republic
0.0750
0.0770
0.0850
0.0930
0.0920
0.0910
0.0880
0.0820
0.0750
0.0650
0.0823
El Salvador
0.0330
0.0340
0.0450
0.0460
0.0450
0.0470
0.0480
0.0480
0.0430
0.0370
0.0426
Fiji
0.0120
0.0140
0.0110
0.0100
0.0110
0.0090
0.0090
0.0090
0.0090
0.0080
0.0102
Grenada
0.0004
0.0004
0.0004
0.0008
0.0006
0.0012
0.0010
0.0010
0.0006
-
0.0007
Guatemala
0.0430
0.0390
0.0430
0.0480
0.0430
0.0430
0.0410
0.0350
0.0340
0.0330
0.0402
Honduras
0.0240
0.0250
0.0270
0.0290
0.0210
0.0220
0.0220
0.0210
0.0180
0.0170
0.0226
Mauritius
0.0310
0.0340
0.0290
0.0310
0.0280
0.0250
0.0270
0.0290
0.0260
0.0230
0.0283
Mongolia
0.0090
0.0080
0.0080
0.0090
0.0080
0.0090
0.0090
0.0080
0.0080
0.0100
0.0086
Nicaragua
0.0090
0.0090
0.0110
0.0110
0.0100
0.0100
0.0100
0.0090
0.0080
0.0080
0.0095
Papua New Guinea
0.0530
0.0480
0.0400
0.0330
0.0340
0.0330
0.0300
0.0260
0.0300
0.0280
0.0355
Paraguay
0.0180
0.0200
0.0200
0.0190
0.0130
0.0140
0.0160
0.0150
0.0170
0.0180
0.0170
Saint Kitts and Nevis
0.0000
0.0000
0.0010
0.0010
0.0010
0.0010
0.0010
0.0000
0.0010
0.0010
0.0007
Saint Lucia
0.0020
0.0020
0.0010
0.0010
0.0010
0.0010
0.0010
0.0010
0.0010
0.0010
0.0012
Saint Vincent and the Grenadines
Trinidad and Tobago
0.0010
0.0490
0.0010
0.0480
0.0010
0.0470
0.0010
0.0420
0.0010
0.0500
0.0010
0.0680
0.0010
0.0710
0.0010
0.0620
0.0010
0.0710
0.0000
0.0710
0.0009
0.0579
__________
WT/COMTD/SE/W/20
Page 8
Small Economies participation in Total Merchandise Exports (1995 – 2004)