WORLD TRADE
ORGANIZATION
WT/COMTD/SE/W/14
10 October 2005
(05-4584)
Committee on Trade and Development
Dedicated Session
Original: English
WORK PROGRAMME ON SMALL ECONOMIES
"Small Economies Report to the Committee on Trade
and Development in Dedicated Session"
Communication from 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 following communication, dated 7 October 2005, is being circulated at the request of the
above delegations.
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1.
The Small Economies Work Programme was launched at the Doha Ministerial conference in
November 2001 with a mandate recorded in Paragraph 35 of the Declaration. Over the years progress
has been slow as the proponents sought to raise Members understanding of the nature of the
vulnerabilities of small economies. These vulnerabilities result from the combination and the
intensity of the difficulties faced by small, vulnerable economies- including geographical remoteness,
natural disasters, external economic shocks- coupled with their lack of resilience. Given these
realities Ministers at Doha therefore considered that these economies deserve special consideration in
the WTO.
2.
It was emphasized that no one characteristic and problem by itself can be assumed to be
unique to small, vulnerable economies thus emphasizing the cumulative effect of these characteristics
and problems. Members were asked to take a holistic view of the marginalization these economies
are seeking to avoid.
3.
Much time has also been usefully spent in structuring an approach which is considered
capable of avoiding the formation of a new sub-category of Members. The characteristics based
approach has therefore been discussed as Members sought to understand the trade-related problems of
small economies. The work programme is now therefore at the phase of "framing responses" to these
problems. The role of the Committee on Trade and Development (CTD) in Dedicated Session at this
stage includes the monitoring of the progress of such responses in the relevant negotiating and other
bodies.
1.
Monitoring Role of the CTD
4.
Document WT/COMTD/W/13 of May 2005 proposed the examination of more concrete
responses to the trade-related problems of small, vulnerable economies, in the CTD, with a view to
also providing more detailed inputs to the relevant negotiating and other bodies. The CTD should
monitor the progress of the small economies proposals in the negotiating and other bodies where
relevant and informing the General Council accordingly.
WT/COMTD/SE/W/14
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2.
Trade-related Responses
5.
In document WT/COMTD/SE/W/12, it was stated that "(i)t is the aim of the proponents to
trigger with this paper the engagement of all Members in working towards framing responses to the
needs and concerns of the small economies and ensuring appropriate reporting to the Sixth Ministerial
Conference …." Document WT/COMTD/SE/W/13 proposed "Considerations for Responses …" and
"Elements of Responses" providing a bridge between the characteristics/problems and responses.
3.
Agreement-Specific Proposals
6.
Initial submissions have been made in the relevant negotiating bodies as follows:

Agriculture
Overview of Small Economies' Positions on the Agriculture Negotiations (JOB(05)/161 of
27 July 2005 attached in Appendix A).

NAMA
Overview of Small Economies' Positions on the NAMA Negotiations (JOB(05)/165 of
29 July 2005 attached in Appendix B).
7.
In addition, the following small, vulnerable economies- Antigua and Barbuda, Barbados,
Dominican Republic, Fiji, Guyana, Jamaica, Papua New Guinea, the Solomon Islands, St. Lucia and
Trinidad and Tobago- tabled document TN/RL/GEN/57 (Architecture on Fisheries Subsidies
Disciplines) of 13 September 2005 in the Rules Negotiating Group.
4.
The Way Forward
8.
The continuation of the two tract approach is recommended as follows:


The CTD continues to monitor progress of small economies proposals in the negotiating and
other bodies;
Agreement-specific proposals are tabled in the relevant negotiating and other bodies.
9.
The Ministerial Conference declaration shall include specific language that reflects the work
carried out and the progress made in the context of the CTD as well as in the negotiating and other
bodies and shall instruct the negotiating and other bodies to continue to address the concerns of small,
vulnerable economies towards the ultimate goal of framing responses to the problems identified.
10.
In order to fulfil the requirements of the mandate as well as the monitoring and reporting
requirements of the General Council, the following should be noted:
1. As mandated in document WT/L/447 (e) the CTD is expected to report to the General Council
so that the General Council can make appropriate recommendations for action to the
Ministerial Conference.
2. WT/L/447 (i) states that "In accordance with the outcome of the programme of work in the
CTD, the General Council shall, as appropriate, direct relevant subsidiary bodies to frame
responses to the trade-related issues identified by the CTD with a view to making
recommendations for action to the .…. Ministerial Conference as mandated".
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3. It is recognized that Paragraph 35 requires that "the General Council shall review the work
programme and make recommendations for action …. to the Ministerial Conference." In
such a review, it is probable that the General Council may instruct a subsidiary body to take
appropriate action in order to advance the work programme consistent with the Doha
mandate.
4. Specifically, between October and November 2005 the negotiating and other bodies in which
small economies needs and concerns have been raised should be encouraged to give
meaningful consideration to appropriate responses. The Chairs of those bodies should ensure
that adequate recognition of responses are made in the draft declaration so that enhanced
special and differential treatment concessions are extended to small economies where
appropriate.
5. After December 2005, the small economies proponents are expected to continue refining and
enhancing their body of proposals in the negotiating bodies and in the CTD as appropriate. In
all cases, the CTD will be kept informed.
6. The final outcome of the Round should see the delivery of effective, meaningful and
operational responses to the trade-related problems of small economies.
11.
Document WT/COMTD/SE/W/13 essentially presented the small, vulnerable economies
"first approximation" as it sought to indicate the areas in which responses will be sought. This paper,
WT/COMTD/SE/W/14, reports on progress since document WT/COMTD/SE/W/13 and suggests how
the proponents envisage the work programme could proceed – towards the Sixth Ministerial
Conference and thereafter.
12.
The gravity of the difficulties faced by small, vulnerable economies, as well as the clear
mandate provided in the Doha Ministerial Declaration and reaffirmed in the 2004 July Package, make
it necessary for the WTO to agree on concrete responses to the specific problems identified by small,
vulnerable economies in the CTD and in negotiating and other bodies.
WT/COMTD/SE/W/14
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APPENDIX A
JOB(05)/161
Committee on Agriculture
Special Session
27 July 2005
OVERVIEW OF SMALL ECONOMIES’ POSITIONS ON THE AGRICULTURE
NEGOTIATIONS
Communication from 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
1.
It has been agreed in the Dedicated Session of the Committee on Trade and Development that
the small economies would articulate their concerns in the relevant negotiating groups. This process
of elaboration of issues of interest to small economies in fora other than the Dedicated Session of the
Committee on Trade and Development is also in accordance with the Framework and Procedures of
the Work Programme on Small Economies (WT/L/447).
2.
In fulfilling the request of our trading partners to take relevant issues to the negotiating
groups, small economy delegations wish to bring to the attention of the Special Session of the
Committee on Agriculture some of the issues and concerns that we have raised in other bodies in the
WTO, which are relevant to the Agriculture negotiations, and which will influence our perspective of
the Special Session’s work towards formulating detailed modalities for presentation to Ministers in
Hong Kong.
3.
In the Uruguay Round small, vulnerable economies undertook significant commitments, some
of which have resulted in severe difficulties. Small economies remain committed to the liberalization
process. However, liberalization must be at a pace and with levels of reductions which our economies
can sustain.
4.
Taking into account documents WT/COMTD/SE/W/12 and WT/COMTD/SE/W/13 Rev. 1,
the small, vulnerable economies would like to highlight the following fundamental considerations:
a) The agricultural sector in small, vulnerable economies plays a key role in the attainment of
their socio-economic development goals, in particular with respect to food security, rural
development, exports and employment. The volatility of international prices for products
exported by small, vulnerable economies constitutes an important factor of high vulnerability
for some small, vulnerable economies. In this context, it is important for small economies that
these issues be addressed satisfactorily in the agriculture negotiations;
b) Small, vulnerable economies have an insignificant level of participation in the multilateral
trading system and a minimal share of total world trade. Furthermore, these economies are
constrained by low levels of competitiveness. Issues related to market access for small
economies’ products should be addressed satisfactorily so that these economies can
participate meaningfully in the multilateral trading system in accordance with their level of
development;
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c) Small, vulnerable economies have critical concerns in the market access pillar of the
agriculture negotiations, including special and differential treatment and flexibilities and
economic development broadly. For most small economies, tariffs are the only tool at their
disposal to protect their agricultural sectors. It is therefore crucial that the tariff reduction
formula be flexible enough to accommodate the concerns of small vulnerable economies;
d) Bearing in mind the key contribution that agriculture makes to the food security and rural
development of small, vulnerable economies, these countries consider that the provisions of
Special Products (SP) and the Special Safeguard Mechanism (SSM) are important for the
development of their agricultural sectors. Accordingly, SP shall be exempted from tariff
reductions and from any commitments on TRQs. SP shall also have access to the SSM;.
e) The issue of maintenance of current de minimis support levels for developing countries is of
major importance to small, vulnerable economies, especially since they do not have access to
the aggregate measure of support (AMS). We wish to emphasize that there is no justification
for the reduction of de minimis support by developing countries;
f) The concerns of small, vulnerable economies shall be taken into account in all the provisions
of special and differential treatment which are provided in the Doha mandate.
7.
This document is without prejudice to the rights of the small economies to make future
submissions to the Special Session on any of the issues contained in this document and/or on any
other issues not included here.
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APPENDIX B
JOB(05)/165
29 July 2005
Negotiating Group on Market Access
OVERVIEW OF SMALL ECONOMIES’ POSITIONS ON THE NAMA NEGOTIATIONS
Communication1 from 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
Members will be familiar with the mandate on small, vulnerable economies contained in
Paragraph 35 of the Doha Ministerial Declaration. The objective of the work programme on small
economies is to frame responses to the trade-related issues identified for the fuller integration of
small, vulnerable economies into the multilateral trading system. Members will also be aware that the
2004 July Package reaffirms the entire membership’s commitment to fulfil the paragraph 35 mandate
and to address the small economies’ trade-related issues. In this context, it is also relevant to recall
that the July Package also calls for special attention to be given, in the course of the NAMA
negotiations, to the specific trade and development related needs and concerns of developing
countries.
It has been agreed in the Dedicated Session of the Committee on Trade and Development that
the small economies would articulate their concerns in the relevant negotiating groups. This process
of elaboration of issues of interest to small economies in fora other than the Committee on Trade and
Development is also in accordance with the Framework and Procedures of the Work Programme on
Small Economies (WT/L/447).
In fulfilling the request of our trading partners to take relevant issues to the negotiating
groups, small economy delegations wish to bring to the attention of the NAMA Negotiating Group
some of the issues and concerns that we have raised in other bodies in the WTO, which are relevant to
the NAMA negotiations, and which will influence our perspective of the Negotiating Group’s work
towards formulating detailed modalities for presentation to Ministers in Hong Kong.
Small economies have issues of substantial interest in the NAMA negotiations, including
special flexibilities and economic development broadly. These issues should be addressed
satisfactorily so that small, vulnerable economies can participate meaningfully in the multilateral
trading system in accordance with their level of development, market share, vulnerabilities and
economic size and structure.
Small economies remain committed to the liberalisation process. However, liberalisation must
be at a pace and with levels of reductions which our economies can sustain.
1
This was the statement made by Barbados on behalf of the Small Economies at the wrap up session of
the NAMA week 4-8 July 2005.
WT/COMTD/SE/W/14
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For small developing economies, tariffs are a primary means of ensuring the viability of
vulnerable domestic industries, achieving sustainable levels of development and maintaining
revenues. Therefore, it is the view of small economy delegations that the tariff reduction approach
used in these development-oriented negotiations must be suited to developing countries’ trade profiles
and their ability to offer and sustain concessions.
Furthermore, less than full reciprocity and special and differential treatment must be the
foundations on which the NAMA negotiating modalities are established. In accordance with the
paragraph 16 DMD mandate, it is necessary for both less-than-full-reciprocity and S&D to be both
integral and cross-cutting elements of the negotiations. The high importance of flexibility for
countries which have an insignificant share of world trade, a small production and export base and
little or no comparative or competitive advantage in these negotiations cannot be overstated.
Small economies regard paragraph 8 as the foundation on which additional measures to
provide flexibilities will be built. In our view, the S&D flexibilities in the final modalities should be
augmented from the current paragraph 8. To make S&D conditional is contrary to the spirit of both
paragraph 16 and the DDA.
Developing countries, particularly the most vulnerable among them, will require an
appropriate timeframe for the implementation of agreed tariff reductions. Such implementation
periods are to be commensurate with their levels of development, size of economy, fiscal and other
strategic development needs.
We recall that paragraph 15 of Annex B recognizes that appropriate studies and capacity
building measures shall be an integral part of the NAMA modalities. These issues have not been
adequately discussed in the NG. In order to ensure the effective participation of small, vulnerable
economies in the negotiations, it would be necessary to conduct studies on the impact of further
liberalisation on their economies and provide appropriate trade-related technical assistance. Useful
studies could include the conduct of periodic assessments of the impact of tariff reductions on the
economies of developing countries.
The results that small economies would wish to see as an outcome of the NAMA negotiations to
address their situation include :
1. A minimum level of tariff reduction by small economies, which in no way impacts on
their current applied rates.
2. No tariff reduction commitments by small economies on products which have strategic
value for their economic development.
3. Longer implementation periods for small economies.
4. Tangible recognition for those small economies which have a substantial percentage of
tariff binding coverage.
5. The elimination of NTBs on products of export interest to small economies.
6. Targeted technical assistance, including in the area of supply side constraints, in order to
facilitate the use by small economies of market access concessions.
Small economies which are in the process of accession shall not be required to agree to more
onerous NAMA obligations than those already accepted by small economy members of WTO. In
addition, treatment similar to that now being sought by small economies in the NAMA negotiations
must also be accorded to acceding small economies.
The co-sponsors of this document urge the NAMA NG to specifically address the traderelated problems of small, vulnerable economies in an expeditious and timely manner.
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This document is without prejudice to the rights of the small economies to make future
submissions to the Negotiating Group on any of the issues contained in this document and/or on any
other issues not included here.
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