WORLD TRADE
WT/COMTD/W/135
5 October 2004
ORGANIZATION
(04-4166)
Committee on Trade and Development
SPECIAL AND DIFFERENTIAL TREATMENT
FOR LEAST-DEVELOPED COUNTRIES
Note by the Secretariat1
I.
INTRODUCTION
1.
Special and differential treatment (S&D) provisions can generally be classed in five main
groups: provisions aimed at increasing trade opportunities through market access; provisions
requiring WTO Members to safeguard the interest of developing countries; provisions allowing
flexibility to developing countries in rules and disciplines governing trade measures; provisions
allowing longer transitional periods to developing countries; and provisions for technical assistance.
An overview of the implementation of S&D provisions of the WTO agreements and decisions is
contained in document WT/COMTD/W/77/Rev.1 and its addenda.
2.
This document summarises the S&D provisions relating to Least-Developed Countries
(LDCs) and contains an Annex which provides specific document references to legal decisions in
favour of LDCs. The provisions are categorised into three – those contained in the WTO legal texts,
relevant Ministerial decisions and declarations and decisions of the General Council and other bodies.
The document also includes a section on technical assistance for LDCS and the Integrated
Framework.
II.
PROVISIONS CONTAINED IN THE WTO LEGAL TEXTS
3.
WTO Agreements generally recognise the particular trade, development and financial needs
of developing country Members, including the least-developed among them. A number of the WTO
Agreements have specific provisions for taking into account the interests of LDCs, in addition to
those of developing countries. The table below provides an indicative list of the S&D provisions for
LDCs contained in the various WTO Agreements. As shown in the table, many of the agreements
provide LDCs flexibility in the implementation of certain rules and commitments including longer
implementation periods. For example, the Agreement on Agriculture exempts LDCs from reduction
commitments on domestic support, export subsidies and market access. The Agreement on Subsidies
and Countervailing Measures exempts the least-developed Members and other poor developing
countries from the prohibition on export subsidies. In many cases in which a transitional period has
been allowed to developing country Members (e.g. TRIPS, TRIMS, SPS), the least-developed
Members have been given a longer time-frame.2
1
This note has been prepared under the Secretariat's own responsibility and without prejudice to the
positions of Members and to their rights and obligations under the WTO.
2
The transitional periods began from the date the Agreements came into force. In some instances, the
transitional periods may have expired.
WT/COMTD/W/135
Page 2
WTO Agreement
S&D provisions for LDCs
Understanding on the Balance-of-Payments Simplified consultation procedures may be used.
Provisions of the General Agreement on Tariffs
and Trade 1994
Agreement on Agriculture
LDCs are exempt from undertaking reduction
commitments.
Application of Sanitary and Phytosanitary LDCs had the possibility of delaying for up to
Measures
five years, the implementation of the provisions
of the Agreement with respect to their sanitary
and phytosanitary measures affecting imports.
Agreement on Textiles and Clothing
LDCs are accorded significantly more favourable
treatment than other groups in the application of
the transitional safeguard.
Agreement on Technical Barriers to Trade
Particular account to be taken of LDCs in the
provision of technical assistance and in the
preparation of technical regulations.
Trade-related Investment Measures (TRIMS)
LDCs had a seven-year transitional period to
eliminate TRIMS that are inconsistent with the
Agreement.
Agreement on Import Licensing
In allocating non-automatic licences, special
consideration to be given to importers who
import products from LDCs.
Agreement on Subsides and Countervailing LDCs are exempted from prohibition on export
Measures
subsidies. Prohibition on subsidies that are
contingent upon export performance is not
applicable to LDCs for eight years.
General Agreement on Trade in Services (GATS) Special priority given to LDCs in implementing
Article IV of GATS (Increasing Participation of
Developing Countries) and particular account to
be taken of the difficulties encountered by LDCs
in accepting negotiated commitments, owing to
their particular needs. Special consideration is
given to LDCs with regard to encouraging
foreign suppliers to assist in technology transfers,
training and other activities for developing
telecommunications.
Agreement on Trade-related Aspects of Delay for up to 10 years in implementing most of
Intellectual Property Rights (TRIPS)
TRIPS obligations. Possibility of extension
following duly motivated request. Members to
provide incentives for encouraging the transfer of
technology to LDCs.
Understanding on Rules and Procedures Particular consideration should be given to the
Governing the Settlement of Disputes (DSU)
special situation of LDCs in all stages of a
dispute involving an LDC. Members to exercise
due restraint in raising matters involving an LDC.
LDCs may request use of the good offices of the
Director-General or the Chairman of the DSB.
Trade Policy Review Mechanism (TPRM)
Greater flexibility given to LDCs concerning the
frequency of their reviews. Particular attention
given to LDCs in the provision of technical
assistance by the Secretariat.
WT/COMTD/W/135
Page 3
III.
MINISTERIAL DECISIONS AND DECLARATIONS
4.
In addition to the LDC specific S&D provisions contained in the legal texts, there are a
number of Ministerial decisions and declarations in favour of LDCs. Below is a list of the various
Ministerial decisions and declarations.
(a)
Decision on Measures in Favour of Least-Developed Countries (1993);
(b)
Decision on Measures Concerning the Possible Negative Effects of the Reform
Programme on Least-Developed and Net Food-Importing Developing Countries
(1993);
(c)
Decision on the Acceptance of and Accession to the Agreement Establishing the
World Trade Organization (1993);
(d)
Decision on Trade and Environment (1993);
(e)
Singapore Ministerial Declaration (1996);
(f)
Comprehensive and Integrated WTO Plan of Action for the Least-Developed
Countries (1996);
(g)
Geneva Ministerial Declaration (1998);
(h)
Doha Ministerial Declaration (2001);
(i)
Declaration on the TRIPS Agreement and Public Health (2001); and
(j)
Decision on Implementation-Related Issues and Concerns (2001).
5.
The Decision on Measures in favour of LDCs was adopted in the context of the
Uruguay Round to address the special concerns of LDCs. It states that LDCs will only be required to
undertake commitments and concessions to the extent consistent with their individual development,
financial and trade needs or their administrative and institutional capabilities. The Decision includes
provisions that require the expeditious implementation of S&D provisions of LDCs; the need to
accord special consideration to the export interests of LDCs; and the need for substantially increased
technical assistance.
6.
In all the WTO Ministerial Declarations, there is special reference to the needs of LDCs. At
the first WTO Ministerial Conference in Singapore in 1996, Ministers adopted the WTO Action Plan
for least-developed countries. The Plan aims to improve the trade opportunities of the least-developed
countries and their integration in the multilateral trading system. In pursuance of the Action Plan, a
High Level Meeting on Integrated Initiatives for Least-Developed Countries' Trade Development was
held in October 1997, organized by the WTO in close collaboration with the IMF, ITC, UNCTAD,
UNDP and the World Bank. The High Level Meeting endorsed the Integrated Framework for traderelated technical assistance to least-developed countries. The Integrated Framework seeks to increase
the benefits which least-developed countries derive from technical assistance to help them to enhance
their trading opportunities.
7.
At the Doha Ministerial Conference in November 2001, Ministers recognised the particular
vulnerability of the LDCs and committed themselves to "addressing the marginalisation of the
least-developed countries in international trade and to improving their effective participation in the
WT/COMTD/W/135
Page 4
multilateral trading system". Paragraphs 42 and 43 of the Ministerial Declaration specifically address
the concerns of LDCs (see Annex). In total, 21 paragraphs specifically mention LDCs.3 The
Declaration on the TRIPS Agreement and Public Health, adopted at the Doha Ministerial Conference,
instructed the Council for TRIPS to extend LDCs' transition period under the TRIPS Agreement in
respect of pharmaceutical products until 1 January 2016.
8.
The Decision on Implementation-Related Issues and Concerns has a number of provisions for
LDCs including provisions relating to: the Agreement on the Application of Sanitary and
Phytosanitary Measures; Agreement on Technical Barriers to Trade; Agreement on Trade-Related
Investment Measures; Agreement on the Implementation of Article VII of GATT 1994; Agreement
on Subsidies and Countervailing Measures; and the TRIPS Agreement.
IV.
DECISIONS OF THE GENERAL COUNCIL AND OTHER BODIES
9.
In 1979, the GATT Council adopted the Decision of the Contracting Parties on Differential
and More Favourable Treatment, Reciprocity and Fuller Participation of Developing Countries ("The
Enabling Clause"). The Decision allowed contracting parties to accord differential and more
favourable treatment to developing countries without according such treatment to other contracting
parties. The Decision also recognised the special treatment of LDCs among the developing countries.
Pursuant to the Enabling Clause, Members continue to notify their Generalised System of Preferences
(GSP) Schemes in favour of LDCs. A total of 28 WTO Members have, on an autonomous basis,
announced measures to improve market access opportunities for LDCs, and there are ongoing
discussions for additional measures to progressively improve access. The Sub-Committee on LDCs
continues to undertake annual monitoring of market access improvements for LDCs.4
10.
In 1999, the General Council adopted the Decision on Waiver for Preferential Tariff
Treatment of Least-Developed Countries which allows developing country Members to offer
preferential tariff treatment for products from LDCs.
11.
Since the launch of the Doha Development Agenda, concrete steps have been taken to
advance the negotiating agenda and the priorities of LDCs. Post Doha, there have been a number of
decisions and measures taken in favour of LDCs. These include the following:
(a)
adoption of the WTO Work Programme for LDCs5 by the General Council on
13 February 2002, as mandated in paragraph 42 of the Doha Ministerial Declaration;
(b)
decision adopted by the Council for Trade-Related Aspects of Intellectual Property
Rights on 27 June 2002, on the "Extension of the Transition Period under Article 66.1
of the TRIPS Agreement for LDC Members for Certain Obligations with Respect to
Pharmaceutical Products";6
(c)
adoption of the waiver by the General Council on 8 July 2002,7 in respect of the
obligations of LDC Members under Article 70.9 of the TRIPS Agreement until
1 January 2016;
(d)
Decision on the "Accession of LDCs" adopted by the General Council on
10 December 2002;8
3
Paragraphs 2-3, 9, 15-16, 21-22, 24-28, 32-33, 36, 38-39, 42-43, 44 and 50
WT/COMTD/LDC/W/31 and Corr.1
5
WT/COMTD/LDC/11
6
IP/C/25
7
WT/L/478
4
WT/COMTD/W/135
Page 5
(e)
Decision on the "Implementation of Article 66.2 of the TRIPS Agreement" adopted
by the Council for TRIPS on 19 February 2003;9
(f)
Decision on the Implementation of Paragraph 6 of the Doha Declaration on the
TRIPS Agreement and Public Health; adopted by the General Council on
30 August 2003;10
(g)
Modalities for the Treatment of Autonomous Liberalization adopted by the Special
Session of the Council for Trade in Services on 6 March 2003;11
(h)
Guidelines and Procedures for the Negotiations on Trade in Services adopted by the
Special Session of the Council for Trade in Services on 28 March 2001;12 and
(i)
Modalities for the Special Treatment for LDC Members in the Negotiations on Trade
in Services adopted by the Special Session of the Council for Trade in Services on
3 September 2003.13
12.
Pursuant to the mandate contained in paragraph 42 of the Doha Ministerial Declaration, the
WTO Work Programme for the LDCs was adopted by the Sub-Committee on Least-Developed
Countries and reported to the General Council in February 2002. The WTO Work Programme for the
LDCs is the main platform through which the issues of interest to LDCs are being considered by the
Members. Key issues in the Work Programme are: (i) Market Access for LDCs; (ii) Trade-Related
Technical Assistance and Capacity Building Initiatives for LDCs; (iii) Providing, as appropriate,
support to agencies assisting with the diversification of LDCs' production and export base;
(iv) Mainstreaming into the WTO's work, the trade-related elements of the LDC-III Programme of
Action, as relevant to the WTO's mandate; (v) Participation of LDCs in the Multilateral Trading
System; (vi) Accession of LDCs to the WTO; and (vii) Follow-up to WTO Ministerial
Decisions/Declarations.
13.
There have been a number of LDC specific decisions and waivers with respect to the TRIPS
Agreement. At its meeting in June 2002, the TRIPS Council adopted a decision on the "Extension of
the Transition Period under Article 66.1 of the TRIPS Agreement for Least-Developed Country
Members for Certain Obligations with Respect to Pharmaceutical Products". This Decision gives
effect to the extension of the transition period for LDCs until 1 January 2016 with respect to
paragraph 7 of the Doha Declaration on the TRIPS Agreement and Public Health. On 8 July 2002,
the General Council approved a waiver in respect of the obligations of LDC Members under
Article 70.9 of the TRIPS Agreement until 1 January 2016. The waiver supplements the decision on
the extension of transition periods by waiving the obligations of LDC Members relating to the grant
of exclusive marketing rights under Article 70.9 for the same period. At its meeting in
February 2003, the TRIPS Council adopted a decision on "Implementation of Article 66.2 of the
TRIPS Agreement" giving effect to the instructions of the Doha Ministerial Conference in
paragraph 11.2 of the Decision on Implementation-Related Issues and Concerns to put in place a
mechanism for ensuring the monitoring and full implementation of the obligations in question.
Furthermore, it should be noted that the Decision on the Implementation of Paragraph 6 of the Doha
Declaration on the TRIPS Agreement and Public Health contains certain provisions specific to LDCs.
8
WT/L/508
IP/C/28
10
WT/L/540
11
TN/S/6
12
S/L/93
13
TN/S/13
9
WT/COMTD/W/135
Page 6
14.
A number of LDC decisions have also been adopted in the context of the Special Session of
the Council for Trade in Services. The General Agreement on Trade in Services (GATS) addresses
the concerns of developing and least-developed countries by providing appropriate flexibility on an
individual basis. Such flexibility is reflected in numerous provisions of the Agreement as well as in
its basic structure which allows each Member to undertake liberalization commitments in a manner
consistent with its development needs. Furthermore, both the Guidelines and Procedures for the
Negotiations on Trade in Services as well as the Modalities for the Treatment of Autonomous
Liberalization mention the need to grant LDCs special priority and consideration. In September 2003,
the Special Session also adopted the Modalities for the Special Treatment of LDCs in the Negotiations
on Trade in Services which calls for Members to take into account the serious difficulty of LDCs and
the need to exercise restraint in seeking commitments from them.
15.
The recently adopted General Council Decision of 1 August 2004 contains a number of S&D
provisions for developing countries (including LDCs). In addition, there are a number of LDC
specific provisions. On Agriculture, LDCs are not required to undertake reduction commitments. On
Non-Agricultural Market Access, LDCs will not be required to apply the formula nor participate in
the sectoral approach. Members are also encouraged to provide duty-free and quota-free market
access for LDC agricultural and non agricultural products. On Trade Facilitation, LDCs will only be
required to undertake commitments to the extent consistent with their individual development,
financial and trade needs or their administrative and institutional capabilities.
V.
TECHNICAL ASSISTANCE FOR LDCS
16.
To assist LDCs to meaningfully draw on the benefits of the rules-based trading system and to
participate effectively in the ongoing negotiations, the WTO Secretariat continues to give priority
attention to capacity building for LDCs. This is both in terms of numbers of activities to be offered
(LDCs can have up to three national activities compared to two for others) as well as in terms of the
closer consultative process they are to benefit from, for example for ascertaining their needs. The
WTO Secretariat also organizes short-term introduction courses specifically for trade officials from
LDC capitals which are held twice a year in Geneva. For the specialized courses on dispute
settlement, which are held three times a year in Geneva, a certain number of fellowships are open to
LDC officials only. In 2003, LDCs were associated with nearly half of all technical assistance
activities undertaken by the Secretariat. Moreover, nearly one quarter (102) of all activities reported
took place in 31 different LDCs, including 71 national activities, and 20 regional seminars.
17.
In addition to the technical assistance provided by the WTO, LDCs also benefit from the
Integrated Framework (IF). The IF is a partnership initiative among the LDCs, multilateral
agencies14 and bilateral donors aimed at assisting the LDCs to increase their participation in the
multilateral trading system and global economy. It seeks to integrate trade priorities into LDCs'
national development plans and poverty reduction strategies and to assist in the coordinated delivery
of trade related technical assistance. Currently, more than 30 out of the 50 LDCs are beneficiaries.
18.
LDCs also benefit from the WTO's partnership arrangements with multilateral institutions
aimed at addressing the trade and development challenges of developing countries. These include,
inter alia, the Joint Integrated Technical Assistance Programme (JITAP, ten out of the
16 beneficiaries are LDCs); WTO-UNIDO Programme; Standards and Trade Development Facility
(STDF); and the WTO - WIPO Joint Initiative on Technical Co-operation for LDCs.15
14
15
ITC, IMF, UNCTAD, UNDP, World Bank, and the WTO.
For more details see WTO TA Plan for 2005; and WT/COMTD/LDC/W/33.
WT/COMTD/W/135
Page 7
ANNEX
LDC Specific Special and Differential Treatment Provisions in
the Existing WTO Agreements and Legal Instruments
LEGAL TEXTS
UNDERSTANDING ON THE BALANCE-OF-PAYMENTS PROVISIONS OF THE GENERAL
AGREEMENT ON TARIFFS AND TRADE 1994
8.
Consultations may be held under the simplified procedures approved on 19 December 1972
(BISD 20S/47-49, referred to in this Understanding as "simplified consultation procedures") in the
case of least-developed country Members or in the case of developing country Members which are
pursuing liberalization efforts in conformity with the schedule presented to the Committee in previous
consultations. Simplified consultation procedures may also be used when the Trade Policy Review of
a developing country Member is scheduled for the same calendar year as the date fixed for the
consultations. In such cases the decision as to whether full consultation procedures should be used
will be made on the basis of the factors enumerated in paragraph 8 of the 1979 Declaration. Except in
the case of least-developed country Members, no more than two successive consultations may be held
under simplified consultation procedures.
12.
The Secretariat shall, with a view to facilitating the consultations in the Committee, prepare a
factual background paper dealing with the different aspects of the plan for consultations. In the case
of developing country Members, the Secretariat document shall include relevant background and
analytical material on the incidence of the external trading environment on the Balance-of-Payments
situation and prospects of the consulting Member. The technical assistance services of the Secretariat
shall, at the request of a developing country Member, assist in preparing the documentation for the
consultations.
WT/COMTD/W/135
Page 8
AGREEMENT ON AGRICULTURE
Article 15 – Special and Differential Treatment
2.
Developing 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.
Article 16 - Least-Developed and Net Food-Importing Developing Countries
1.
Developed country Members shall take such action 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.
2.
The Committee on Agriculture shall monitor, as appropriate, the follow-up to this Decision.
WT/COMTD/W/135
Page 9
AGREEMENT ON THE APPLICATION OF SANITARY AND PHYTOSANITARY MEASURES
Article 10 - Special and Differential Treatment
1.
In the preparation and application of sanitary or phytosanitary measures, Members shall take
account of the special needs of developing country Members, and in particular of the least-developed
country Members.
Article 14 - Final Provisions
The least-developed country Members may delay application of the provisions of this
Agreement for a period of five years following the date of entry into force of the WTO Agreement
with respect to their sanitary or phytosanitary measures affecting importation or imported products.
Other developing country Members may delay application of the provisions of this Agreement, other
than paragraph 8 of Article 5 and Article 7, for two years following the date of entry into force of the
WTO Agreement with respect to their existing sanitary or phytosanitary measures affecting
importation or imported products, where such application is prevented by a lack of technical
expertise, technical infrastructure or resources.
WT/COMTD/W/135
Page 10
AGREEMENT ON TEXTILES AND CLOTHING
Preamble
Members,
Recalling further that it was agreed that special treatment should be accorded to the leastdeveloped country Members;
The footnote to Article 1
2. Members agree to use the provisions 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 trading opportunities for new entrants in the field of
textiles and clothing trade.1
1
To the extent possible, exports from a least-developed country Member may also benefit from this provision.
Article 6
6.
In the application of the transitional safeguard, particular account shall be taken of the interests
of exporting embers as set out below:
(a)
least-developed country Members shall be accorded treatment significantly more
favourable than that provided to the other groups of Members referred to in this
paragraph, preferably in all its elements, but at least in overall terms;
WT/COMTD/W/135
Page 11
AGREEMENT ON TECHNICAL BARRIERS TO TRADE
Article 11 – Technical Assistance to Other Members
11.8 In providing advice and technical assistance to other Members in terms of paragraphs 1 to 7,
Members shall give priority to the needs of the least-developed country Members.
Article 12 – Special and Differential Treatment of Developing Country Members
12.7 Members shall, in accordance with the provisions of Article 11, provide technical assistance to
developing country Members to ensure that the preparation and application of technical regulations,
standards and conformity assessment 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 the stage of development of the
requesting Members and in particular of the least-developed country Members.
12.8 It is recognized that developing country Members may face special problems, including
institutional and infrastructural problems, in the field of preparation and application of technical
regulations, standards and conformity assessment procedures. It is further recognized that the special
development and trade needs of developing country Members, as well as their stage of technological
development, may hinder their ability to discharge fully their obligations under this Agreement.
Members, therefore, shall take this fact fully into account. Accordingly, with a view to ensuring that
developing country Members are able to comply with this Agreement, the Committee on Technical
Barriers to Trade provided for in Article 13 (referred to in this Agreement as the "Committee") is
enabled to grant, upon request, specified, time-limited exceptions in whole or in part from obligations
under this Agreement. When considering such requests the Committee shall take into account the
special problems, in the field of preparation and application of technical regulations, standards and
conformity assessment procedures, and the special development and trade needs of the developing
country Member, as well as its stage of technological development, which may hinder its ability to
discharge fully its obligations under this Agreement. The Committee shall, in particular, take into
account the special problems of the least-developed country Members.
WT/COMTD/W/135
Page 12
AGREEMENT ON TRADE-RELATED INVESTMENT MEASURES
Preamble
Members,
Taking into account the particular trade, development and financial needs of developing country
Members, particularly those of the least-developed country Members;
Article 5 – Notification and Transitional Arrangements
2. Each Member shall eliminate all TRIMs which are notified under paragraph 1 within two years
of the 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 country Member.
3. On request, the Council for Trade in Goods may extend the transition period for the elimination
of TRIMs notified under paragraph 1 for a developing country Member, including a least-developed
country Member, which demonstrates particular difficulties in implementing the provisions of this
Agreement. 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.
WT/COMTD/W/135
Page 13
AGREEMENT ON IMPORT LICENSING PROCEDURES
Article 3 - Non-Automatic Import Licensing
5 (j)
in allocating licences, the Member should consider the import performance of the applicant.
In this regard, consideration should be given as to whether licences issued to applicants in the
past have been fully utilized during a recent representative period. In cases where licences
have not been fully utilized, the Member shall examine the reasons for this and take these
reasons into consideration when allocating new licences. Consideration shall also be given to
ensuring a reasonable distribution of licences to new importers, taking into account the
desirability of issuing licences for products in economic quantities. In this regard, special
consideration should be given to those importers importing products originating in developing
country Members and, in particular, the least-developed country Members;
WT/COMTD/W/135
Page 14
AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES
Part VIII: Developing Country Members
Article 27 - Special and Differential Treatment of Developing Country Members
27.2
The prohibition of paragraph 1(a) of Article 3 shall not apply to:
(a)
developing country Members referred to in Annex VII.
(b)
other developing country Members for a period of eight years from the date of entry into force
of the WTO Agreement, subject to compliance with the provisions in paragraph 4.
27.3 The prohibition of paragraph 1(b) of Article 3 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.
Annex VII - Developing Country Members Referred to in Paragraph 2(a) of Article 27
The developing country Members not subject to the provisions of paragraph 1(a) of Article 3
under the terms of paragraph 2(a) of Article 27 are:
(a)
Least-developed countries designated as such by the United Nations which are
Members of the WTO.
WT/COMTD/W/135
Page 15
ANNEX 1B: GENERAL AGREEMENT ON TRADE IN SERVICES (GATS)
Preamble
Members,
Taking particular account of the serious difficulty of the least-developed countries in view of their
special economic situation and their development, trade and financial needs;
WT/COMTD/W/135
Page 16
Article IV - Increasing Participation of Developing Countries
3. Special priority shall be given to the least-developed country Members in the implementation of
paragraphs 1 and 2. Particular account shall be taken of the serious difficulty of the least-developed
countries in accepting negotiated specific commitments in view of their special economic situation
and their development, trade and financial needs.
(Article IV:1 and 2:
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 information networks;
and
(c)
the liberalization of market access in sectors and modes of supply of export interest to
them.
2.
Developed country Members, and to the extent possible other Members, shall establish contact
points 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)
commercial and technical aspects of the supply of services;
(b)
registration, recognition and obtaining of professional qualifications; and
(c)
the availability of services technology.)
Article XIX – Negotiation of Specific Commitments
3.
For each round, negotiating guidelines and procedures shall be established. For the 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 of this 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 previous negotiations,
as well as for the special treatment for least-developed country Members under the provisions of
paragraph 3 of Article IV.
Annex on Telecommunications
6.
Technical Co-operation
(d)
Members shall give special consideration to opportunities for the least-developed
countries to encourage foreign suppliers of telecommunications services to assist in the transfer of
technology, training and other activities that support the development of their telecommunications
infrastructure and expansion of their telecommunications services trade.
WT/COMTD/W/135
Page 17
ANNEX 1C: THE AGREEMENT ON TRADE-RELATED ASPECTS OF INTELLECTUAL PROPERTY
RIGHTS
Preamble
Members,
Recognizing also the special needs of the least-developed country Members in respect of
maximum flexibility in the domestic implementation of laws and regulations in order to enable them
to create a sound and viable technological base;
Part VI - Transitional Arrangements
Article 66 - Least-Developed Country Members
1. In 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 technological
base, 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 paragraph 1 of
Article 65. The Council for TRIPS shall, upon duly motivated request by a least-developed country
Member, accord extensions of this period.
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 viable technological base.
WT/COMTD/W/135
Page 18
ANNEX 2: UNDERSTANDING ON RULES AND PROCEDURES GOVERNING THE SETTLEMENT OF
DISPUTES
Article 24 - Special Procedures Involving Least-Developed Country Members
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.
2. In dispute settlement cases involving a least-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 good offices, 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.
WT/COMTD/W/135
Page 19
ANNEX 3: TRADE POLICY REVIEW MECHANISM (TPRM)
C. Procedures for review
(ii) The trade policies and practices of all Members shall be subject to periodic review. The
impact of individual Members on the functioning of the multilateral trading system, defined in terms
of their share of world trade in a recent representative period, will be the determining factor in
deciding on the frequency of reviews. The first four trading entities so identified (counting the
European Communities as one) shall be subject to review every two years. The next 16 shall be
reviewed every four years. Other Members shall be reviewed every six years, except that a longer
period may be fixed for least-developed country Members. It is understood that the review of entities
having a common external policy covering more than one Member shall cover all components of
policy affecting trade including relevant policies and practices of the individual Members.
Exceptionally, in the event of changes in a Member's trade policies or practices that may have a
significant impact on its trading partners, the Member concerned may be requested by the TPRB, after
consultation, to bring forward its next review.
D. Reporting
In order to achieve the fullest possible degree of transparency, each Member shall report regularly
to the TPRB. Full reports shall describe the trade policies and practices pursued by the Member or
Members concerned, based on an agreed format to be decided upon by the TPRB. This format shall
initially be based on the Outline Format for Country Reports established by the Decision of
19 July 1989 (BISD 36S/406-409), amended as necessary to extend the coverage of reports to all
aspects of trade policies covered by the Multilateral Trade Agreements in Annex 1 and, where
applicable, the Plurilateral Trade Agreements. This format may be revised by the TPRB in the light
of experience. Between reviews, Members shall provide brief reports when there are any significant
changes in their trade policies; an annual update of statistical information will be provided according
to the agreed format. Particular account shall be taken of difficulties presented to least-developed
country Members in compiling their reports. The Secretariat shall make available technical assistance
on request to developing country Members, and in particular to the least-developed country Members.
Information contained in reports should to the greatest extent possible be coordinated with
notifications made under provisions of the Multilateral Trade Agreements and, where applicable, the
Plurilateral Trade Agreements.
WT/COMTD/W/135
Page 20
ANNEX 4: PLURILATERAL TRADE AGREEMENTS
Agreement on Government Procurement
Preamble
Parties to this Agreement (hereinafter referred to as "Parties")
Recognizing the need to take into account the development, financial and trade needs of
developing countries, in particular the least-developed countries;
Article V: Special and Differential Treatment for Developing Countries
Objectives
1.
Parties shall, in the implementation and administration of this Agreement, through the
provisions set out in this Article, duly take into account the development, financial and trade needs of
developing countries, in particular least-developed countries, in their need to:
(a)
(b)
(c)
(d)
safeguard their balance-of-payments position and ensure a level of reserves adequate
for the implementation of programmes of economic development;
promote the establishment or development of domestic industries including the
development of small-scale and cottage industries in rural or backward areas; and
economic development of other sectors of the economy;
support industrial units so long as they are wholly or substantially dependent on
government procurement; and
encourage their economic development through regional or global arrangements
among developing countries presented to the Ministerial Conference of the World
Trade Organization (hereinafter referred to as the "WTO") and not disapproved by it.
2.
Consistently with the provisions of this Agreement, each Party shall, in the preparation and
application of laws, regulations and procedures affecting government procurement, facilitate
increased imports from developing countries, bearing in mind the special problems of least-developed
countries and of those countries at low stages of economic development.
Special Treatment for Least-Developed Countries
12.
Having regard to paragraph 6 of the Decision of the CONTRACTING PARTIES to
GATT 1947 of 28 November 1979 on Differential and More Favourable Treatment, Reciprocity and
Fuller Participation of Developing Countries (BISD 26S/203-205), special treatment shall be granted
to least-developed country Parties and to the suppliers in those Parties with respect to products or
services originating in those Parties, in the context of any general or specific measures in favour of
developing country Parties. A Party may also grant the benefits of this Agreement to suppliers in
least-developed countries which are not Parties, with respect to products or services originating in
those countries.
13.
Each developed country Party shall, upon request, provide assistance which it may deem
appropriate to potential tenderers in least-developed countries in submitting their tenders and selecting
the products or services which are likely to be of interest to its entities as well as to suppliers in leastdeveloped countries, and likewise assist them to comply with technical regulations and standards
relating to products or services which are the subject of the intended procurement.
WT/COMTD/W/135
Page 21
MINISTERIAL DECISIONS AND DECLARATIONS
Ministerial Decision
Reference
Decision on Measures in Favour of Least- The Legal Texts
Developed Countries
Decision on Measures Concerning the Possible The Legal Texts
Negative Effects of the Reform Programme on
Least-Developed and Net Food-Importing
Developing Countries
Decision on the Acceptance of and Accession to The Legal Texts
the Agreement Establishing the World Trade
Organization;
Decision on Trade and Environment;
The Legal Texts paragraphs (b) -(b)
Singapore Ministerial Declaration;
WT/MIN(96)/DEC paragraphs V; VI; VII; XIII;
XIV; XV and XXII.
Comprehensive and Integrated WTO Plan of WT/MIN/(96)/14
Action for the Least-Developed Countries;
Geneva Ministerial Declaration
WT/MIN(98)/DEC/1 paragraphs 5; 6 and 9(c)
Doha Ministerial Declaration
WT/MIN(01)/DEC/1 paragraphs 2; 3; 9; 15; 16;
21; 22; 24; 25; 26; 27; 28; 32(i); 33, 36; 38; 39;
42 43; 44; 50 and 51
Doha Decision on Implementation-Related Issues WT/MIN(01)/17 paragraphs 2.2; 3.5; 3.6; 4.4;
and Concerns
5.3; 5.4; 6.2; 8.2; 10.5 and 12.1(ii)
WT/COMTD/W/135
Page 22
DECISIONS OF THE GENERAL COUNCIL AND OTHER BODIES
Decision
Reference
1979 Decision of the Contracting Parties on L/4903 paragraphs 2(d); 6 and 8
Differential and More Favourable Treatment,
Reciprocity and Fuller Participation of
Developing Countries: "The Enabling Clause";
1999 Decision on Waiver for Preferential Tariff WT/L/304
Treatment of Least-Developed Countries;
WTO Work Programme for Least-Developed WT/COMTD/LDC/11
Countries
Accession of LDCs
WT/L/508
Extension of the Transition Period Under Article IP/C/25
66.1 of the TRIPS Agreement for LeastDeveloped Country Members for Certain
Obligations with respect to Pharmaceutical
Products
Least-Developed
Country
Members
– WT/L/478
Obligations Under Article 70.9 of the TRIPS
Agreement with respect to Pharmaceutical
Products
Implementation of Article 66.2 of the TRIPS IP/C/28
Agreement Decision on the Implementation of
Paragraph 6 of the Doha Declaration on the
TRIPS Agreement and Public Health
Decision on the Implementation of Paragraph 6 WT/L/540, paragraphs 1(b); 2(a)(ii); 4; 6(i); 7
of the Doha Declaration on the TRIPS Agreement and Annex
and Public Health
Modalities for the Special Treatment of Least- TN/S/13
Developed Country Members in the Negotiations
on Trade and Services
Modalities for the Treatment of Autonomous TN/S/6 paragraph 14
Liberalization
Guidelines and Procedures for the Negotiations S/L/93 paragraph 2
on Trade and Services
General Council Decision of 1 August 2004
WT/L/579 paragraphs 1(d); 24; 45; Annex B
paragraphs 4; 9; 10; 14; Annex C paragraph (c);
Annex D paragraphs 2; 3; 4; 5 and 6
__________