RESTRICTEDWORLD TRADE
ORGANIZATIONTN/CTD/W/3/Rev.2
17 July 2002
(02-3692)
Committee on Trade and Development
Special SessionOriginal:  English
SPECIAL AND DIFFERENTIAL TREATMENT PROVISIONS
Joint Communication from the African Group in the WTO
Revision
The following communication has been received from the African Group on 7 June 2002.
_______________
I. INTRODUCTION
The Mandate
1. The Doha Ministerial Declaration1 put appropriate emphasis on operationalising and
strengthening special and differential treatment provisions.  In paragraph 44 of the Declaration,
Ministers noted the proposal in document WT/GC/W/442 by a group of developing countries for aFramework Agreement on Special and Differential Treatment.  Paragraph 44 of the Doha Ministerial
Declaration states:
44. We reaffirm that provisions for special and differential treatment are an
integral part of the WTO Agreements.  We note the concerns expressed regarding
their operation in addressing specific constraints faced by developing countries,
particularly least-developed countries.  In that connection, we also note that some
Members have proposed a Framework Agreement on Special and DifferentialTreatment (WT/GC/W/442).  We therefore agree that all special and differential
treatment provisions shall be reviewed w ith a view to strengthening them and making
them more precise, effective and operational.  In this connection, we endorse the
work programme on special and differential treatment set out in the Decision on
Implementation-Related Issues and Concerns.
2. This mandate is further elaborated in the Decision on Implementation Issues and Related
Concerns
2 in paragraph 12 on cross cutting issues, which states:
12.1  The Committee on Trade and Development is instructed:
(i) To identify those special and differential trea tment provisions that are already mandatory in
nature and those that are non-binding in character,  to consider the legal and practical implications
for developed and developing Members of converting special and differential treatment measures into
                                                     
1 WT/MIN(01)/DEC/1
2 WT/MIN(01)17TN/CTD/W/3/Rev.2
Page 2
mandatory provisions, to identify those that Members consider should be made mandatory, and to
report to the General Council with clear recommendations for a decision by July 2002;
(ii) To examine additional ways in which special and differential treatment provisions can be
made more effective, to consider ways, including improved information flows, in which developing
countries, in particular the least-developed countries, may be assisted to make best use of special anddifferential treatment provisions, and to report to the General Council with clear recommendations
for a decision by July 2002;
 and
(iii) To consider, in the context of the work programme adopted at the Fourth Session of the
Ministerial Conference, how special and differential treatment may  be incorporated into the
architecture of WTO rules.
The work of the Committee on Trade and Development in this regard shall take fully into
consideration previous work undertaken as noted in  WT/COMTD/W/77/Rev.1.  It  will also be without
prejudice to work in respect of implementation of WTO Agreements in the General Council and in
other councils and committees.
3. The case for special and differential treatment in the WTO has long been recognised and a
series of provisions in the agreements attest to this.  Credit must be given to Members and the WTOas an institution in giving due priority to spec ial and differential treatment and taking appropriate
measures within their respective scope.  But on the whole the operationalisation, implementation or
compliance with these provisions has been less than fully satisfactory and this is the reason the
Ministers mandated further work in the Committee on Trade and Development.  The Note prepared
by the Secretariat in document WT/COMTD/W/77/Rev.1 is a comprehensive exploration of thespecial and differential treatment provisions in the WTO Agreement and how Members and the WTO
as an institution have implemented them.  Having considered the Note, the conclusion agreed by the
Ministers is that further work should be done to operationalise and strengthen the provisions.
Meaning and Forms of Special and Differential Treatment
4. Special and Differential Treatment is a core principle of the WTO framework, and is to be
distinguished from that generally available under the WTO Agreements to other Members.  It is
accorded exclusively to developing and least developed countries.
5. Provisions in the WTO Agreements show the variety of forms that special and differential
treatment takes.  Some of these forms include:
(a) Specific regimes or provisions for the right of developing country governments to
assist their domestic industries, such as Article XVIII of GATT 1994.
(b) Fast track and flexible regimes or procedures in enforcement of the rights of or
against developing countries and in requirements on developing countries, such as the
Decisions referred to in the DSU for procedures where developing and least
developed countries are involved in the disputes, or the special procedures under the
Subsidies and Anti-dumping Agreements.
(c) Waiver for collective efforts among developing countries to accord preferential
treatment to one another; usually done in the context of broad programmes for
economic cooperation and economic development.TN/CTD/W/3/Rev.2
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(d) Provision for special measures by developed countries to provide preferential market
access for products from developing countries.  Part IV of GATT 1994 and the
Enabling Clause place emphasis on access to developed country markets for products
of export interest to developing countries under provisions that could be made more
binding.
(e) Inclusion in the objectives and principles of the agreements in terms of targets to be
achieved. Article IV of GATS envisages that developing countries need to have an
equitable share in services trade and developed countries should assist them to take
up available opportunities.  Generally, the principles of the WTO as stated in the
preamble to the WTO Agreement include the recognition of the need for positive
efforts to ensure that developing and least-developed countries secure a share in the
growth of international trade commens urate with their development needs.
(f) Inclusion in the agreements of provisions requiring developing and least-developed
countries to undertake only such commitments or obligations as are consistent with
their development needs and within their means, such as Part IV of GATT 1994 and
the Decision on Measures in Fav our of Least-Developed Countries.
(g) Provisions for technical assistance to developing and least-developed countries.
(h) Provisions for transition periods for developing and least-developed countries.
(i) Binding obligations to address important needs.  Article 66.2 of the TRIPS
Agreement provides for technology transfer to least-developed countries in
mandatory terms or under binding provisions.
6. Of these various forms of special and differential treatment, some have tended to be more
effective or meaningful than others but the entire scheme of the provisions and the present approach
need fundamental improvement.
(a) Provisions on special regimes according developing and least-developed country
governments certain rights notwithstanding the general provisions of agreements (that
is, (a) to (c) above), have been meaningful to the extent that some governments havebeen able to resort to them. But it has been common for governments to be prevailed
upon to give up rights available or policy flexibility under the WTO Agreements.  In
this regard, coherence in global economic policy making and implementation would
be necessary to ensure the use of the flexibility allowed developing and least-
developed countries.
(b) Inclusion in the objectives and principles of the WTO agreements as well as appeals
to developed countries to accord special and differential treatment to developing andleast-developed countries ((d) to (g) above) has served to demonstrate the need for
operationalising the provisions, for they have remained largely unimplemented. In
this regard, the provisions on objectives and principles could be made more directive
in nature, and supported by clear and precise obligations and rights to operationalise
them.
(c) Transition periods ((h) above) for developing and least developed countries have on
the whole been inadequate.  It is likely th at this inadequacy has resulted from the
subjective or rather arbitrary manner the length of the transition periods has been
determined and the lack of proper programmes designed to phase in transition
periods.  In this regard, transition periods should be determined in an objectivemanner that relates to the actual process of adjustment and development to socialTN/CTD/W/3/Rev.2
Page 4
economic levels that ensure equitable and beneficial participation in the relevant
agreements; and the right to obtain extensions of transition periods could be made
straightforward and unconditional for developing and least developed countries that
would need such extensions.
(d) Provision for mandatory obligations ((i) above) has been useful in demonstrating that
special and differential treatment can take the form of binding obligations that can be
operationalised in accordance with established practice in the WTO that however can
be improved upon for instance through better reporting and monitoring procedures.
In this regard, cross-cutting reporting and enforcement procedures are important if
they come with the necessary authority to require compliance with recommendations.
Action to Take
7. The various categories of special and differential treatment suggest various ways to improve
the provisions on the basis both of the experience with the provisions and of the need for better ways
to achieve the objectives of the WTO as an institution boldly aiming to improve living conditions of
people particularly in developing and least-developed countries.  Special regimes on rights of
developing and least-developed country governments ne ed to be fully recognised and respected by all
Members in their policies within the framework of the WTO and other organisations.  To this end,
there is need to clarify and highlight the various provisions giving developing and least-developed
country governments certain rights relating to sp ecial and differential treatment within the WTO
framework.  The non-binding provisions need to be made binding in order to provide some means and
improve prospects for securing their implementation.  The mandatory obligations need to behighlighted so that they can be implemented i mmediately and unconditionally.  The approach to
technical assistance and transition periods should be re-considered to ensure that the objectives are
satisfactorily achieved.  Transition periods should primarily function as adjustment periods along
well-defined and adequately funded schedules or phases.  In addition to making the special and
differential treatment provisions binding, it is important that they are effectively operationalised.  Thisrequires an exercise to be undertaken and a decision taken on the details and means of making the
provisions stronger, more precise, more effective and more operational through a process of refining
the language of the provisions, detailing out some elements of operationalising the provisions, and
setting-up appropriate institutions and mechanisms for monitoring and enforcement.
8. In this exercise, it is well to bear in mind that these special and differential treatment
provisions were already negotiated in the adoption of existing agreements.  They were included as
part of the settlements negotiated and arrived at, with the clear understanding that the balance theyaimed to achieve was necessary and constituted benefits for developing and least-developed countries
within the meaning of the WTO Agreement.  This entitled developing and least-developed countries
to legitimate expectations that these obligations relating to special and differential treatment would be
faithfully implemented and complied with.  Impeding the attainment of these benefits relating to
special and differential treatment is an issue for the WTO as an institution to resolve and to do so
efficaciously.
9. Two ways in which special and differential treatment provisions could be made mandatory or
confirmed to be mandatory are:
(a) Through amendment to the language used in special and differential treatment
provisions of the Agreement in question;  and/or
(b) Through authoritative interpretation of special and differential treatment provisions of
the WTO Agreements, under Article IX:2 of the WTO Agreement and the Doha
mandate on special and differential treatment.TN/CTD/W/3/Rev.2
Page 5
10. There is need for amendment of the special and differential treatment provisions of WTO
Agreements to convert non-mandatory provisions into mandatory ones.  In essence, amendment of the
relevant provisions would involve replacing the term s "should" or "may" with the term "shall", while
leaving the rest of the provisions mostly unchanged.  However, in some cases, amendments to
strengthen the provisions could require re-writing the language of the provisions or deletions of somephrases therein.
11. Authoritative interpretation of the special and differential treatment provisions of WTO
Agreements would convert non-mandatory provisions into mandatory ones, especially where their
meaning despite the wording indicates that they are of a directive or binding nature, through adopting
interpretations to be applied to specific provisions.  The interpretations would define the meaning to
be put to specific provisions and would become part  and parcel of the provisions.  Since the General
Council has the authority to adopt authoritative interpretations of the provisions of a WTO agreement,a draft decision(s) to adopt such interpretations could be adopted by the Committee on Trade and
Development, and forwarded to the General Council (through the CTG) in order to formalise the
change.
12. Article IX:2 of the WTO Agreement requires that adoption of authoritative interpretations
should not be used in a manner that undermines the provisions on amendment of the WTOAgreement.  In this regard, it is important to point out that the Ministerial Declaration and the
Decision contain the mandate to re-write or rephrase the provisions for purposes of making them
stronger, more precise, more effective and operational.
II. CROSS CUTTING ISSUES
13. The operationalisation of special and differential treatment provisions requires:
(a) Clear legal rights to enforce the provisions as binding obligations;
(b) Provisions setting out the details and mechanisms for implementing and complying
with the binding provisions;
(c) Appropriate institutions to determine issues concerning implementation and
compliance with the obligations, and to make authoritative recommendations thatMembers are to comply with;  it being unde rstood that these institutions include the
Committee on Trade and Development and its subsidiary bodies as well as the
Dispute Settlement Body and the General Council;
(d) Capacity to, successfully initiate and pursue actions in the institutions, obtain
recommendations, and enforce compliance with the recommendations;
(e) Monitoring mechanisms to follow up implementation and compliance with relevant
provisions, regularly produce reports on developments, and undertake sensitisationactivities to promote implementation and compliance with the obligations;  and
(f) Regular evaluation in the Committee on Trade and Development, the General
Council, and the Ministerial Conference, with a view to ensuring the attainment of the
objectives and compliance with the principles of special and differential treatment.
14. Accordingly, Members should adopt a decision(s) in accordance with the mandate under
paragraph 44 of the Declaration and paragraph 12.1 of the Decision on Implementation Issues and
Related Concerns adopted by Members at the Fourth Session of the Ministerial Conference, as
proposed in this document.TN/CTD/W/3/Rev.2
Page 6
Principles
15. Special and differential treatment as long recognised in GATT and the WTO, is a right for
developing and least developed country Members.  Developed country Members and the WTO as an
institution, by itself or in collaboration with other organisations, are to accord special and differentialtreatment to developing and least developed country Members in view of their development needs and
resource constraints.
16. The development needs of developing and least-developed country Members require special
domestic policies, measures and laws as well as direct assistance for enhanced access to global and
regional markets, domestic implementation of obligations, administrative and continuous compliance
with obligations, and enforcement of  their rights under the agreements.  Resource constraints in the
form of human, financial, and institutional shortfalls require technical, financial and various types ofassistance to supplement domestic resources and establish or strengthen domestic institutions.
17. The operation of special and differential treatment provisions needs to be improved upon
against the background of current provisions, enhancing their strengths and redressing their
weaknesses.  The mandatory provisions should be implemented immediately and unconditionally.
The best endeavour provisions should be understood to be binding and enforceable, and likewise anyspecial and differential treatment provisions should  be included in future agreements with the full
knowledge that they will be clearly enforceable.  The decisions(s) adopted in this regard and all
provisions for special and differential treatment wi ll be among the covered agreements so that the
Dispute Settlement Body can enforce them under the Dispute Settlement Understanding.
Objectives
18. Special and differential treatment is an integral part of the WTO Agreement, including the
Multilateral Trade Agreements.  Accordingly, it is provided for and shall be faithfully operationalised
in order to improve living conditions in the developing and least-developed country Members and to
effectively secure their equitable and beneficial participation in the multilateral trading system, fullygaining from development opportunities opened up.  Special consideration shall always be given to
the level of development of the Members.
19. Special and differential treatment shall aim, to address and resolve the imbalances between
developed country Members and developing and least developed country Members, to ensure equity
in the totality of obligations and rights, to support developing and least developed country Members
to undertake adjustments that are necessary for them  to meaningfully benefit from the agreements, to
effectively ensure the success of export and production diversification programmes of developing andleast developed country Members, and to secure for them market access in the multilateral trading
system that will facilitate their rapid economic development;
20. Assistance to developing and least developed country Members shall be coherent with their
broad development needs.  In this regard, it shall be part of and fit within the comprehensive solutions
and programmes adopted by those Members; and it shall not be piecemeal, isolated nor inconsistent
with their long term programmes and needs.  Assi stance shall provide short and long-term solutions to
the problems faced by developing and least developed Members to implement and comply with their
obligations and exercise their rights.
Capacity building
21. In addition to solving the problems of implementation and compliance, developing countries'
capacity to negotiate should also be improved.  Capacity refers to capacity to implement and comply
with the agreement, capacity to negotiate on any is sues arising from but particularly those relating to
the operation and improvement of the agreement, capacity for domestic industries to compete in theTN/CTD/W/3/Rev.2
Page 7
multilateral trading system, and capacity for domestic inst itutions to protect the public interest in areas
directly related to the agreement.
22. Binding commitments to be operationalised under clearly scheduled programmes and
activities necessary for any social economic, institutional, legal and other adjustments in favour of
developing and least-developed country Members to ensure they have all the requisite capacity shallbe a condition precedent for the adoption of any agreements relating to the World Trade Organisation.
Transition periods
23. Transition periods shall be designed to provide developing and least-developed country
Members with a period of time that is adequate,
(a) To carry out institutional changes and adjustments that may be necessary for them to
address their supply side and other resource constraints;
(b) To attain a level of socio-economic development commensurate with obligations
under and that enables them to beneficially and equitably participate in the
agreements; and
(c) To attain socio-economic growth and development rates that will sustainably ensure
continuous improvement in living conditions.
24. Accordingly,
(a) Transition periods shall not be arbitrarily set or inadequate.  They shall be based on
objective criteria, and a preponderance of studies acceptable to all Members that
show undoubted projections and conclusions, that demonstrate under a clear schedule
of progress the attainment of the required capacity and of socio-economicdevelopment levels for purposes of the agreements;  and
(b) Developing and least-developed country Members shall always have a right to extend
transition periods provided that they shall notify the World Trade Organisation and
when requested commence consultations in the relevant councils and committees.
Special and differential treatment obligations
25. (a) Provisions for special and differential treatment shall always be implemented and
complied with immediately and unconditionally.
(b) This Decision shall be included in the cove red agreements within the meaning of the
Dispute Settlement Understanding.
(c) Without prejudice to the rights of Members to enforce special and differential
treatment in accordance with the Dispute Settlement Understanding, any Memberwho considers that any provision for special and differential treatment is unlikely to
be or is not being implemented or complied with, may notify a monitoring body of
the Committee on Trade and Development, which shall make recommendations to
Members.
(d) Notwithstanding any provision in the Agreements of the World Trade Organization,
special and differential treatment shall be included in agreements with the clear
understanding and on the basis that they shall be fully binding on Members and
enforceable by developing and least developed country Members.TN/CTD/W/3/Rev.2
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(e) In any Agreements that have objectives and principles of a special and differential
treatment nature, the substantive provisions shall detail out in binding obligations the
operationalisation of those objectives and principles.
(f) Special and differential treatment commitments shall be inscribed in schedules of
commitments or concessions of Members.  A Member considering that anycommitment it makes of a special and differential treatment nature should not be
inscribed in its schedule of commitments or concessions shall first obtain the consent
of other Members in the General Council in order for that Member to be excluded
from the requirement under this paragraph to inscribe special and differential
treatment commitments in Members’ schedules of commitments or concessions.
Monitoring of Implementation and Compliance
26. (a) Special and Differential Treatment Monitoring Body shall be established under the
Committee on Trade and Development, to monitor the implementation of and
compliance with special and differential treatment provisions in accordance with this
Decision and all relevant Agreements of the WTO, facilitate consultations and co-
operation among Members, and advise the Committee on Trade and Development.
(b) The Committee on Trade and Development shall keep special and differential
treatment provisions under review and shall make recommendations on their
implementation.
27. The Annexes shall be an integral part of this Decision, and the Committee on Trade and
Development may recommend to the General Council modifications as necessary.
Training Programmes
28. The planning and provision of technical and financial assistance including the formulation of
training programmes such as seminars and workshops, shall be in accordance with and meet the
criteria set out in Annexes I and II respectively to this Agreement.
Mandatory Provisions
29. The provisions set out in Annex III to this Decision are mandatory obligations, which shall be
implemented immediately and unconditionally.  Developed country Members shall notify the laws,measures and policies they adopt in this regard, and report semi-annually on how they are
implementing them to the Committee on Trade and Development.  Where the obligations fall upon
developed country Members individually or collectiv ely, the Dispute Settlement Understanding shall
govern the enforcement procedures.
Currently Non-Mandatory Provisions
30. (a) The provisions set out in the Annex IV to this Decision shall be binding and
enforceable obligations in favour of developing and least developed country
Members that, accordingly, may request the Special and Differential Treatment
Monitoring Body of the Committee on Trade and Development to makerecommendations to secure compliance, including through action for enforcement in
accordance with the Dispute Settlement Understanding.  Where the obligations fall
upon developed country Members individually or collectively, the Dispute Settlement
Understanding shall govern the enforcement procedures.TN/CTD/W/3/Rev.2
Page 9
(b) Developed country Members shall adopt laws, measures and policies to implement
the provisions in Annex IV, and shall notify them and report semi-annually to the
Committee on Trade and Development on how they are implementing them.
Coherence in International Organisations
31. (a) The provisions on increasing trade opportunities and safeguarding the interests of
developing and least developed country Members, in Annexes III and IV to this
Decision, shall be implemented and operationalised individually and collectively by
the Members and by the WTO through the Secretariat and co-operating institutions
particularly UNCTAD, on the basis of objective criteria that shall be designed to
clearly assist the evaluation of progress a nd the extent of attainment of the goals of
increasing trade opportunities and safeguarding the interests of developing and least
developed country Members.
(b) The WTO shall, in collaboration with other intergovernmental organisations, aim
within its mandate to facilitate the achievement of the international developmentgoals agreed in the Millennium Declaration.
32. Necessary resources shall be set aside specifically for implementing this Decision.
33. The provisions in Annexes III and IV to this Decision set out certain rights of developing and
least developed country Members in terms of flexibility of commitments, action and use of policy
instruments.  Members shall respect these rights in their laws, measures and policies pursued underbilateral and regional arrangements as well as within the WTO and other organisations, to promote
coherence in global policymaking and implementation.
III. AGREEMENT-BY-AGREEMENT
General Agreement on Tariffs and Trade 1994
Article XVIII
Proposal
34. It is understood that the provisions of this Article aim to promote the rapid development of
domestic industries and the needed adjustments where domestic industries experience difficulties in
developing and least developed country Members.  Therefore, this Article shall be implemented,interpreted and applied by Members and in all the WTO processes in a manner that fully supports the
attainment of these goals.  In particular, devel oping and least-developed country Members shall not be
subjected to cumbersome requirements or conditions, or to any requirements and conditions that
would undermine the attainment of these goals.  In determining whether any requirements or
conditions are cumbersome, the views of the developing and least-developed country Membersconcerned shall be fully accommodated and shall not be prejudiced or rejected except with the
consensus of all Members.
35. It is further understood that Members will consider at the 5
th Session of the Ministerial
Conference the elaboration of a multilateral framework on the provisions of Article XVIII and Part IVof GATT 1994.TN/CTD/W/3/Rev.2
Page 10
Article XVIII:A
Proposal
36. It is understood that where developing or l east-developed country Members wish to modify or
withdraw concessions under Article XVIII:7, they shall not be required to offer or make
compensatory adjustments that are inconsistent with their development needs or would unreasonably
strain their resources.  In particular, they shall not  be required under paragraph 7(a) to make or offer
unreasonable compensatory adjustments, and compensatory adjustment shall be adequate within the
meaning of paragraph 7(b) where the developing and least-developed country Members modifying or
withdrawing the concession offer to adopt measures  that allow a period of 3 months for exporters
based in the Members affected to undertake necessary adjustments.
Article XVIII:B
Proposal
37. It is understood that short term financial fl ows shall not be included in determining the
external reserves or surpluses of Members and financial instability shall be duly taken into account as
a problem to be addressed over a reasonable period of time when measures under Article XVIII: B
shall be maintained.  The reasonable period of time shall not be less than 3 years, taking into account
differences in industry types.
Article XXXVI
Proposal
38. The phrase "shall be a matter of conscious and purposeful effort" in paragraph 9 used in
relation to paragraphs 2 to 7 of Article XXXVI, and read together with paragraph 8 of
Article XXXVI, shall be understood to mean that the provisions of paragraphs 2 to 7 are binding
commitments on the part of developed country Members in favour of developing and least-developed
country Members to,
(a) ensure a rapid and sustained expansion of export earnings of the developing and least-
developed country Members;
(b) ensure that developing and least developed country Members secure a share in the
growth in international trade commensurate with the needs of their economic
development;
(c) provide the maximum market access to products of export interest to developing and
least-developed country Members and take measures to stabilise and improve
conditions in world markets for these products particularly measures to attain stable,
equitable and remunerative prices;
(d) assist in the diversification of the economies of developing and least-developed
country Members; and
(f) ensure coherence in global economic policymaking and implementation in a manner
that ensures that gains and opportunities in the multilateral trading system are
supported and not undermined by programmes implemented by international lending
agencies and vice versa;TN/CTD/W/3/Rev.2
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(g) It is further understood that this Decision shall be without prejudice to the acquis
under any preferential regime governing the exports of developing and least-
developed country Members by developed country Members.
39. Accordingly, implementation of the provisions of Article XXXVI shall be subject to reviews
twice in every 12 months, in the Committee on Trade and Development.  In the reviews, objective
criteria shall be used to determine whether the im plementation is meaningfully attaining the objectives
set out in the provisions, in light of specific targets set by the Committee on Trade and Development.
Article XXXVII
Proposal
40. Paragraphs 1 and 3 of Article XXXVII provide for binding obligations and it is understood
that the commitments set out shall be fully implemented and where it is felt that this would not be
possible, leave shall be sought in the General Council by the concerned developed country Members
on the basis of consultations on specific grounds advanced.
Article XXXVIII
Proposal
41. (a) It is understood, under Article XXXVIII of GATT 1994, that the WTO shall arrange
with the United Nations and its agencies, and with all international and regional
organisations that have observer status in WTO bodies, to annually provide studies
and reports pertaining to elements indi cated in Article XXXVIII  to the Committee on
Trade and Development, which shall deliberate on them and report withrecommendations to the General Council.
(b) The studies and reports, and the recommendations to the General Council shall
provide guidelines on, development indicators and goals, desirable rates of growth in
actual market access levels for products of export interest to developing and least-
developed country Members, targets to be achieved over the short and medium terms,
measures to be taken in the WTO framework and by other international organisationsas well as the assistance required by developing and least-developed country
Members to ensure the achievement of goals and targets, and deal with any relevant
matters.
Understanding On Article II:1(b)
Proposal
42. "Other duties or charges" shall not be construed or applied in a manner that prejudices the
right of developing and least-developed country Members to levy duties or charges to meet theirrequirements relating to government revenue and administrative expenses.
Understanding On Article XVII
Proposal
43. Members agree that state trading enterprises may have a significant role to play in protecting
public policy in developing and least-developed country Members.TN/CTD/W/3/Rev.2
Page 12
Understanding On Balance of Pa yments Provisions of GATT 1994
44. Articles 8 and 12 of the Understanding on Balance-of-Payments are special and differential
treatment provisions and their effect in part is that, in the case of developing and least-developed
country Members, full consultation procedures (BISD 18S/48-53) shall only be used when it is notappropriate to use the simplified consultation procedures (BISD 20S/47-49).  It shall be upon
Members preferring full consultation procedures to show why they are appropriate and the Committee
shall only use full consultation procedures with the consent of all Members.
Understanding On Article XXIV of GATT 1994
Proposal
45. It is understood that this Understanding shall not prejudice the right of developing and least-
developed country Members to enter arrangements for mutual reduction or elimination of tariffs and
non-tariff barriers to their trade, in accordance with the Decision of 28 November 1979 (Enabling
Clause) (BISD 26S/203).
Understanding On Waiver of Obligations under GATT 1994
Proposal
46. It is understood that waiver of obligations in accordance with Article IX of the WTO
Agreement shall be for the benefit of, Members seeking the waiver, or those that the waiver is sought
for.  Other Members shall not prejudice the benefits under waivers sought in favour of developing or
least-developed country Members.
Understanding on the Interpretation of Article XXVIII of GATT 1994
Paragraph 1
Proposal
47. In the context of the provisions of paragraph 1 of the Understanding on Article XXVIII of
GATT 1994, urgent consideration shall be given to a re -balancing of the relative rights of small and
medium-sized exporting Members.
Agreement on Agriculture
Article 6.2
48. It is understood that the permitted subsidies under Article 6.2 shall, be without limitation as to
amount, and include any programmes in developing and least-developed country Members for ,
inter alia,  promoting food security and rural development, and assisting resource poor or low-income
farmers.
Article 14
Proposal
49. It is understood that measures covered by the Agreement on the Application of Sanitary and
Phytosanitary Measures shall not be used as disguised restrictions against the trade of developing and
least-developed country Members.  Members shall biannually report to the Committee on AgricultureTN/CTD/W/3/Rev.2
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any measures taken under the Agreement on the Application of Sanitary and Phytosanitary Measures
that affect any products from developing and least-developed country Members.
Article 15.1
Proposal
50. It is understood that where developed country Members are to take measures of a special and
differential treatment nature, they shall embody in their schedules of commitments or concessions
specific special and differential treatment commitments in favour of developing and least-developed
country Members, which shall be binding commitments.  It is further understood that this Decision
shall be without prejudice to the acquis under any preferential regime governing the exports ofdeveloping and least-developed country Members by developed country Members
Article 15.2
Proposal
51. It is understood that:
(a) transition periods under the Agreement shall be extended for developing and country
Members that face adjustment difficulties; and
(b) developing and least-developed country Members shall have the right to modify their
commitments if this is found necessary to protect the public interest in ensuring food
security and alleviating rural poverty.
Decision on Measures Concerning the Possible  Negative Effects of the Reform Programme on
Least-Developed and Net Food-Importing Developing Countries
Proposal
52. It is understood, in the context of the Decision on Measures Concerning the Possible Negative
Effects of the Reform Programme on Least-Devel oped and Net Food-Importing Developing Countries
and of the Ministerial Decision on Implementation Issues and Related Concerns, that developed
country Members shall embody in their schedules of commitments undertakings on, contributions to a
revolving fund for normal levels of food imports, providing food aid in fully grant form, and
maintaining food aid levels consistently with recommendations and rules under the Food Aid
Convention.
Agreement on Sanitary and Phytosanitary Measures
Article 9.2
Proposal
53. (a) The phrase "substantial investments" in Article 9.2 shall be construed relative to
resources of concerned government departments in developing and least-developed
country Members and to their development needs.  Any changes that would requireadditional resources to existing levels of current expenditure or their restructuring, or
additional training or staffing, shall be construed to amount to "substantial
investments".TN/CTD/W/3/Rev.2
Page 14
(b) Where the importing Member does not actually provide such technical assistance,
that Member shall withdraw the measures immediately and unconditionally; or the
importing Member shall compensate the exporting developing country Members for
loss resulting directly or indirectly from the measures.
(c) It is understood that technical assistance shall be fully funded technical assistance and
shall not entail financial obligations on the part of the exporting developing and least-
developed country Members.
(d) It is agreed that the WTO shall reco mmend that impact assessments shall be
conducted to determine the likely effect on the trade of developing and least-
developed country Members for any proposed standards before adoption, and if theimpact would be adverse, the standards would not become applicable until it is
established that developing and least-developed country Members that would be
affected have acquired the capacity to beneficially comply with them.
Articles 10.1 and 10.4
Proposal
54. (a) The requirement to "take account of the special needs of developing country
Members, and in particular least developed country Members" in Article 10.1 shall beunderstood to mean that Members shall either withdraw measures that adversely
affect any developing and least-developed country Members or which they find
difficult to comply with, or shall provide the technical and financial resources
necessary for the developing and least-developed country Members to comply with
the measures.
(b) The requirement shall be further understood to mean that Members shall always
initiate consultations in the Committee whenever they propose or intend to take any
measures that are likely to affect imports from developing and least-developed
country Members.  In the consultations, Members shall establish whether or not the
proposed or intended measures, if justified under the Agreement, would adversely
affect any developing and least-developed country Members.
(c) Members shall establish a facility within the Global Trust Fund for ensuring that:
(i) developing and least-developed country Members have the financial
and technical capacity to meet the requirements under the Agreement;
(ii) delegations from developing and least-developed country Members
attend and effectively participate in meetings of the Committee and relevant
international standard setting organisations;
(iii) developing and least-developed country Members effectively utilise the
flexibility under the Agreement; and
(iv) measures adopted under the Agreement do not contravene the rights of
developing and least developed country Members.
(d) It is understood that technology transfer and any technical and financial assistance
under the Agreement to developing and least-developed country Members shall be
cost free.TN/CTD/W/3/Rev.2
Page 15
Article 10.3
Proposal
55. The phrase "the Committee is enabled to grant such countries" shall be understood to mean
that the Committee shall grant such countries, and the phrase "specified, time-limited exceptions"
shall be understood to refer to periods of not less than 3 years notwithstanding any provision in any
WTO Agreements and in any case such periods such be adequate for developing and least-developed
country Members to undertake any adjustments necessary for them to comply with the provisions of
the Agreement.  The phrase "taking into account their financial, trade and development needs" shall
mean that the periods shall objectively relate to th e time and resources necessary for developing and
least-developed country Members to undertake necessa ry adjustments to comply with the provisions
of the Agreement.
Agreement on Textiles and Clothing
Articles 2.18 and 6.6
Proposal
56. (a) In the context of paragraph 4 of the Ministerial Decision on Implementation Issues
and Related Concerns adopted on 14 November 2001, (and in part asrecommendations to the CTG) it is understood that "advancement by one stage"
means the cumulation of the current and the succeeding stages, and "equivalent
changes" refers to changes that are not less favourable than the cumulation.  In
determining equivalent changes, proposals made by developing and least-developed
country Members shall be accepted unless there are compelling reasons, which shallbe recorded and examined by the Textiles Monitoring Board.
(b) The phrase "differential and more favourable treatment" in Article 6.6(b) shall mean
that no safeguard measures shall be taken against exports of Members that constitute
a small volume or a small percentage of total textile and clothing imports.  In this
regard "small" shall be understood to refer to imports from any developing and least-
developed country Member that are less than 10 per cent of the total textile andclothing imports of a Member.  It is understood in this regard that there shall be no
cumulation of imports from developing or least-developed country Members in
determining volumes of imports for purposes of measures against imports under the
Agreement.
(c) The phrase "special consideration" in Article 6.6(c) shall be understood to mean that
no restrictions shall be imposed on such exports of such developing and least-
developed country Members.
(d) It is understood that in accordance with paragraph 42 of the Declaration of the Fourth
Session of the Ministerial Conference, textile and clothing exports of least-developed
country Members shall be accorded duty free, quota free treatment by developed
country Members.  It is further understood that this Decision shall be without
prejudice to the acquis under any preferential regime governing the exports of
developing and least-developed country Members by developed country Members.TN/CTD/W/3/Rev.2
Page 16
Agreement on Technical Barriers to Trade
Articles 11 and 12
Proposal
57. (a) It is understood that Article 11 contains binding obligations.  In this regard, and
recognising the importance of standardisation in promoting exports of developing and
least-developed country Members, a fund shall be established into which
contributions shall be made by Members to assist developing and least-developed
country Members in implementing the Agreement. Members that propose to
introduce new standards that are required to be notified under the Agreement, shallprior to adoption of the standard, deposit amounts into the fund in accordance with
assessments by the Committee based on resource implications for developing and
least-developed country Members in complying with such standards.
(b) It is understood that reference to the special needs and difficulties of developing and
least-developed country Members in Article 12 means that developed country
Members shall provide full technical and financial assistance to developing and least-
developed country Members that are to comply with standards in accordance with the
Agreement.
(c) It is understood that technical assistance shall be fully funded technical assistance and
shall not entail financial obligations on the part of the exporting developing and least-
developed country Members.
(d) It is agreed that the WTO shall reco mmend that impact assessments shall be
conducted to determine the likely effect on the trade of developing and least-
developed country Members for any proposed standards before adoption, and if the
impact would be adverse, the standards shall not become applicable until it is
established that developing and least-developed country Members that would be
affected have acquired the capacity to beneficially comply with them.
(e) In paragraph 8 of Article 12 the phrase "the Committee … is enabled to grant" shall
be understood to mean that the Committee shall grant, and the phrase "specified,
time-limited exceptions" shall be understood to refer to periods of not less than 3
years and in any case such periods such be adequate for developing and least-
developed country Members to undertake any adjustments necessary for them to
comply with the provisions of the Agreement.
(f) Members shall establish a facility within the Global Trust Fund for ensuring that
(i) developing and least-developed country Members have the financial and technical
capacity to meet the requirements under the Agreement; (ii) delegations from
developing and least-developed country Members attend and effectively participate inmeetings of the Committee and relevant international standard setting organisations;
(iii) developing and least-developed country Members effectively utilise the
flexibility under the Agreement; and (iv) measures adopted under the Agreement do
not contravene the rights of developing and least-developed country Members.
(g) It is understood that technology transfer and any technical and financial assistance
under the Agreement to developing and least-developed country Members shall be
cost free.TN/CTD/W/3/Rev.2
Page 17
Agreement on Trade Related Investment Measures
Article 3
Proposal
58. The provision in Article 3 of the TRIMs Agreement that all the exceptions in GATT 1994
shall apply, as appropriate, to the TRIMs Agreement, means that, co-operation arrangements, laws,
measures and policies adopted on the basis of the provisions of GATT 1994 that operate as
exceptions, apply to the provisions of the TRIMs Agreement. Such exceptions include:
(a) co-operation arrangements among developing country Members under which certain
preferential treatment is accorded to parties to the arrangements;
(b) quantitative restrictions taken in accordance with among others Articles XII, XVIII
and XIX of GATT 1994; and
(c) measures taken to improve living standards in developing country Members under
Article XVIII including programmes on incentives relating to domestic content
requirements.
Article 4
Proposal
59. (a) In accordance with paragraph 1.1 of the Ministerial Decision on Implementation-
Related Issues and Concerns adopted at the 4th Session of the Ministerial Conference
on 14 November 2001, which" “reaffirms that Article XVIII of the GATT 1994 is a
special and differential treatment provision for developing countries and that recourse
to it should be less onerous than to Article XII of the GATT 1994", Members shall
interpret and apply Article 4 of the TRIMS Agreement in a manner that fully supports
measures taken by developing and least-developed country Members to safeguard the
external financial position, the balance of payments, and sufficiency of reserves.
(b) The phrase "free to deviate temporarily from the provisions of Article 2" that appears
in Article 4 of the TRIMs Agreement shall, in view of the structural bottlenecks of
developing and least-developed country Members, be understood to refer to a period
of not less than 6 years.
Article 5.3
Proposal
60. On the basis of the development, financial and trade needs of least-developed and other low
income developing country Members, it is understood that the Council for Trade in Goods shall grant
requests for extension of or for fresh transition periods from least-developed country Members, and
from developing country Members that are eligible under the Agreement on Subsidies and
Countervailing Measures to maintain subsidy programm es that may wholly or in part be covered by or
have a relation to the TRIMs Agreement.TN/CTD/W/3/Rev.2
Page 18
Agreement on Dumping
Article 15
Proposal
61. For purposes of Article 15 of the Agreement:
(a) Special regard", "special situation", and "essential interests of developing country
Members", read together, shall be understood to require that developed country
Members shall specifically take into account the development needs of developing
and least-developed country Members particularly for sustainably maintaining orincreasing market access for products of export interest to them.
In this regard:
(i) the causal link between the fact of dumping and of injury on the one
hand, to imports from developing and least-developed country Members on
the other, shall be determined on a case by case basis taking into account the
WTO goals of improving living standards in developing and least-developed
country Members through growth in the trade of these countries, in a manner
that demonstrates that the achievement of these goals in developing and least-developed country Members has duly been taken into account; and
(ii) coherence shall be ensured between the Anti-dumping, and the
Subsidies and Countervailing Measures Agreements on the basis of the
importance of sustainably maintaining or increasing market access forproducts of export interest to developing and least-developed country
Members; and of maintaining their export competitiveness.
(b) "Constructive remedies provided for by this Agreement" shall within the context of
Article 15 be understood to include:
(i) consultations for mutually agreed solutions within the meaning of
paragraph (a) above other than anti-dumping duties, price undertakings, or
any action prohibited by the Agreement on Safeguards;
(ii) internal reforms in developed country Members regarding market
conditions, and employment and inve stment conditions to improve
competitiveness on the basis of fair competition rather than taking anti-
dumping measures against imports; and
(iii) exploring solutions against anti-competitive practices if determined
to have taken place, on the basis of taking into account and protecting theinterests of domestic consumers, rather than taking any anti-dumping
measures.TN/CTD/W/3/Rev.2
Page 19
Agreement on Customs Valuation
Article 20.1-2
Proposal
62. It is understood that delays of application of the Agreement provided for under Article 20
read together with Annex III and the Decision on Texts Relating to Minimum Values and Imports by
Sole Agents Sole Distributors and Sole Concessionaires, shall be renewable whenever that is
necessary to protect the development, financial and trade needs of developing and least-developed
country Members as requested by the Members seeking such extensions.
Article 20.3
Proposal
63. It is understood that the technical assistance programmes provided for under paragraph 3 of
Article 20 constitute binding obligations undertaken by developed country Members, which shall be
implemented for as long as least-developed country Members remain classified as such.
Agreement on Preshipment Inspection
Article 3.3
Proposal
64. Technical assistance for purposes of the Agreement shall address the concerns of developing
and least-developed country Members or user Members relating among others to:
(i) training customs and revenue officials to ensure that the objectives of preshipment
inspection are achieved; particularly those relating to prevention of false declaration,
wrong classification, and any fraud;
(ii) ensuring that it is duly inspected consignments that are shipped to user Members; and
(iii) regulation of preshipment entities.
65. In this regard, and in the context of the Ag reement on Customs Valuation and of the Decision
Regarding Cases Where Customs Administrations Have Reasons To Doubt The Truth Or Accuracy
Of The Declared Value, it is agreed that customs authorities of Members shall closely co-operate with
a view to fully assisting user Members achieve the objectives of the Agreement on Preshipment
Inspection.
Agreement on Rules on Origin
Proposal
66. (a) Regarding preferential rules of origin under the Common Declaration in Annex II to
the Agreement, it is understood that in their arrangements for mutual reduction or
elimination of tariff or non-tariff barriers, developing and least-developed country
Members may adopt rules of origin designed to achieve trade policy objectives
relating to their rapid economic development, particularly through generating
regional trade.TN/CTD/W/3/Rev.2
Page 20
(b) Participation of developing and least-developed country Members in the World
Customs Organisation and the Technical Committee on Rules of Origin shall receive
the same consideration and support from the WTO as participation in standard setting
organisations.
Agreement on Import Licensing Procedures
Article 1.2
Proposal
67. It is understood that the requirement to take into account the "development purposes and trade
needs of developing country Members" in Article 1.2 of the Agreement means that import licensing
regimes shall be designed in a manner that prevents adverse effects to the trade of developing country
Members.  In this regard, the regimes shall specif ically be expeditious in relation to the trade of
developing country Members.
Article 3.5
Proposal
68. (a) The last sentence of subparagraph (a)(iv) of Article 3.5 stating that "developing
country Members would not be expected to take additional administrative or financial
burdens on this account" shall be construed to mean that developing country
Members shall not be required to take any measures additional to existing measures.
(b) The word "should" in subparagraph (j) of Article 3.5 shall be replaced with "shall"
wherever it appears, and the provision shall be construed to require that priority in
licence allocation shall be accorded to importers from developing and least-developed
country Members.
Agreement on Subsidies and Countervailing Measures
Article 27.1
Proposal
69. It is therefore understood that developing country Members shall have a right to use subsidies
as may be necessary for their economic development.  Extensions shall be granted under Article 27.4
of the Agreement bearing in mind the important role subsidies play in the economic development of
developing country Members.
Article 27.4
Proposal
70. (a) "Inconsistent with its development needs" refers to where otherwise prohibited or
actionable subsidies would clearly not benefit any domestic industry.
(b) It is understood that developing country Members shall not be prevented from
seeking extensions on grounds of not strictly following the time frames in Article
27.4 and the Decision on Procedures for Extensions Under Article 27.4 for Certain
Developing Country Members (G/SCM/39).TN/CTD/W/3/Rev.2
Page 21
Article 27.8
Proposal
71. It is understood that in consultations and in any proceedings, there shall be no presumption of
serious prejudice whatsoever including on the basis of any percentage or amount of subsidisation
where developing country Members grant subsidies; and that any serious prejudice shall be
demonstrated exclusively by positive evidence.
Article 27.9
Proposal
72. It is understood that nullification and impairment in cases of actionable subsidies that
developing country Members grant or maintain, shall be construed to mean only the displacement or
impediment of imports of a like product into the market of the developing country Member or injury
to a domestic industry in the market of the importing Member.
Article 27.13
Proposal
73. It is understood that Article 27.13 covers any privatisation programmes undertaken within the
period from 1 January 1995 and that developing country Members may grant or maintain the subsidy
programmes under Article 27.13 to ensure good adjustment of their economies.  It is further
understood that "limited period" refers to a period of not less than 8 years.
Article 27.15
Proposal
74. "Interested developing country Member" shall be construed to refer to any developing country
Member regardless of any subsidy programmes maintained, on the basis that developing country
Members have an abiding interest in the use and operation of subsidies due to their importance in therapid economic development of developing country Members.
Agreement on Safeguards
Article 9.1-2
Proposal
75. It is understood that paragraphs 1 and 2 of Article 9 of the Agreement are respectively:
(i) a binding prohibition against taking safeguard measures against products from
developing country Members that do not exceed 3 per cent of imports of a Member;
and
ii) a binding right for developing country Members to extend safeguard measures for an
additional two years and to take fresh safeguard measures against products previously
the subject of safeguard measures.TN/CTD/W/3/Rev.2
Page 22
Decision on Measures in Favour of Least Developed Countries
Paragraph 1
Proposal
76. It is understood that least-developed country Members, notwithstanding any provision of any
WTO Agreement, shall not be required to implement or comply with obligations or commitments that
are prejudicial to their individual development, fina ncial or trade needs, or their administrative and
institutional capacity.
Paragraph 2
Proposal
77. (a) It is understood that notwithstanding any provision of any WTO Agreement, least-
developed country Members shall always be entitled to extensions for their transitionperiods as they may require.
(b) It is understood that technical assistance to least-developed country Members shall
aim among other things to remove any supply side constraints to benefits under all
WTO Agreements, such as benefits of market access opportunities and development
of domestic productivity.
Decision on Differential and More Favourable Trea tment, Reciprocity and Fuller Participation
of Developing Countries, of 28 November 1979
Proposal
78. (a) In formulating schemes under paragraphs (a) and (b) of clause 1 of the Enabling
Clause, developed country Members shall consult under the auspices of the
Committee on Trade and Development with developing and least-developed country
Members with a view to ensuring that products of export interest to developing and
least-developed country Members are accorded meaningful market access that willachieve the objectives set out in Article XXXVI of GATT 1994.
(b) In this regard, developed country Members shall show to the Committee on Trade
and Development how they have included in the programmes specific products of
particular export interest to developing and least-developed country Members andtaken measures to ensure meaningful market access.
(c) Meaningful market access shall be construed in accordance with targets set or
adopted from time to time in the Committee on Trade and Development.
(d) The Enabling Clause provides developing and least-developed country Members with
the right to enter regional or global arrangements for the mutual reduction or
elimination of tariffs or non-tariff barriers.  It is understood that the arrangements can
be for reduction or elimination of tariffs or non-tariff barriers, and that with regard to
reduction or elimination of tariffs no WTO body or Members can prescribe anycriteria relating to the arrangements.  Me mbers shall respect any such arrangements
as an exercise of rights that developing and least-developed country Members have
under the WTO Agreement.TN/CTD/W/3/Rev.2
Page 23
(e) It is understood that this Decision shall be without prejudice to the acquis under any
preferential regime governing the exports of developing and least-developed country
Members by developed country Members
General Agreement on Trade in Services
Article IV
Proposal
79. (a) The Committee on Trade and Development shall set periodic benchmarks on
financial and technical cooperation and other mutual arrangements under whichdeveloped country Members shall accord to developing country Members treatment
and concessions designed to ensure:
(i) the strengthening of the capacity, efficiency and competitiveness of
domestic services of developing country Members and designed to effecttechnology transfer to developing country Members;
(ii) access by domestic services of developing country Members to
distribution channels and information networks for developed country
markets; and
(iii) liberalisation of market access in sectors and modes of supply of
export interest to developing country Members.
(b) It is agreed that developed country Members shall reserve quotas for supply of
services by developing country suppliers in sectors that developing country suppliers
have interests, and that developed country Members shall not adopt horizontal
limitations with respect to movement of natural persons and shall over a period of 2
years phase out the limitations they maintain at the adoption of this decision.
(c) It is agreed that developed country Members shall twice every 12 months:
(i) report to the Council for Trade in Services on how they are
implementing and complying with targets set by the Committee on Trade and
Development for the operationalisation of Article IV;
(ii) the Council for Trade in Services and the Committee on Trade and
Development shall make recommendations to developed country Members to
ensure the implementation of Article IV.
(d) It is agreed that the commitments or concessions under the General Agreement on
Trade in Services, shall reflect a proportion of, at least 40 for developing countryMembers, and not more than 60 for developed country Members in short-term actual
gains, provided that special attention sha ll be demonstrably accorded to the interests
of developing and least-developed country Members.
Article V: 3
Proposal
80. The references to "flexibility" and "more favourable treatment" with respect to agreements for
liberalisation of trade in services among developing country Members, shall be understood to meanTN/CTD/W/3/Rev.2
Page 24
that the agreements shall not be required to comply  with the rules set out in Article V provided that
the agreements are entered into within the framework of or form part of wider economic liberalisation
or regional integration programmes.
Article XXV
Proposal
81. It is agreed that technical co-operation for developing and least-developed country Members
requires the WTO to conclude arrangements with relevant international and regional institutions or
organisations to provide frameworks for addressing the supply side and infrastructural constraints of
developing and least-developed country Members, and their development needs, in services sectors.
Agreement on Trade Related Aspects of Intellectual Property Rights
Articles 65, 66.1, 70.8, 70.9
Proposal
82. (a) It is understood that developing country Members shall be entitled to extensions
beyond the additional 5 year period under Article 65.4 relating to other areas of
technology required to be protected under the TRIPS Agreement.
(b) For purposes of the requirement to grant exclusive marketing rights during transition
periods, it is understood that there is a clear distinction between "patent rights" on the
one hand and "exclusive marketing rights" on the other.  The two shall not confer the
same rights. Patent rights as set out in Article 28 of the TRIPS Agreement are thefollowing: "to prevent third parties not having the owner’s consent from the acts of
making, using, offering for sale, selling, or importing for these purposes the
(patented) product" as well as the products obtained directly by the patented process.
These rights conferred by a patent, are not the same rights as may be conferred by the
grant of exclusive marketing rights.  Members have the right and the freedom to
define what constitutes exclusive marketing rights, and may do so in light of any
interpretations that the General Council or the TRIPS Council may adopt.  It isunderstood also that there is no requirement to grant exclusive marketing rights until
and only if marketing approval is granted.
Articles 7, 8, 66.2
Proposal
83. (a) It is agreed that in implementing Article 66.2:
(i) developed country Members shall give incentives to enterprises and
institutions in their territories through their laws or other administrative
instruments;
(ii) the incentives shall be of a magnitude and nature that will effectively
operate as motivation to transfer technology to least-developed countryMembers taking into account the actual conditions in the least-developed
country Members and the difficulties expressed by the enterprises and
institutions; andTN/CTD/W/3/Rev.2
Page 25
(b) The incentives shall take any appropriate forms provided that the forms shall
effectively operate as incentives to motivate the enterprises and institutions to transfer
technology to least-developed country Members.
(c) Developed country Members shall report on their implementation of Articles 7, 8,
and 66.2 of the Agreement, according to a reporting schedule to be regularly drawn
up by the TRIPS Council.  The reports shall be evaluated in the TRIPS Council to
establish whether or not the implementation is achieving the objectives of building
sound technological bases in developing and least-developed country Members
(d) "Technology" for purposes of the Agreement shall include equipment, knowledge and
skills including their tacit forms and trade secrets, practical and theoretical training,and insights into the history and global context of innovations and processes relating
to particular technologies.
(e) Accordingly, it is understood that co-operation arrangements between enterprises and
institutions of developed country Members on the one hand and research and otherlearning institutions in developing and least developed country Members on the other,
shall be essential components of implementing the Agreement.  The reporting shall
indicate implementation in terms also of arrangements with the research and learning
institutions.
Dispute Settlement Understanding
Article 4.10
Proposal
84. It is understood that:
(i) in consultations, requests by developing and least-developed country Members to be
involved shall always be accepted; and
(ii) in the proceedings developed country Members shall present evidence of, and in the
written decisions the panels and the Appellate Body shall indicate, how special
attention has been given to particular problems and interests of developing country
Members during the stage of consultations.
Article 8.10
Proposal
85. It is agreed that in disputes between a de veloping country Member and a developed country
Member, at least one panellist shall be from a developing country Member.
Article 12.10
Proposal
86. It is agreed that:
(i) consultations within the period set for consultations and consultations that may be
extended under the Dispute Settlement Understanding, may only be declared as
concluded with the consent of all part ies involved in the consultations; andTN/CTD/W/3/Rev.2
Page 26
(ii) "sufficient time for the developing country Member to prepare and present its
argumentation" shall be understood to be a period of not less than 6 months or the
longer period requested by the developing country Member.
Article 12.11
Proposal
87. It is understood that Article 12.11 of the Dispute Settlement Understanding requires the panel,
in reaching a decision, to fully take into account the special and differential treatment provisions that
appear in any covered Agreements that are raised or that are relevant in the dispute.
Article 21.2, 21.7, and 21.8
Proposal
88. Paying "particular attention" to the "interests of developing country Members" in paragraph 2,
and consideration of "what further action the DSB might take" in paragraph 7, shall be understood to
require that recommendations made by the Disput e Settlement Body and their implementation and
surveillance shall address:
(i) any economic or trade loss suffered by the developing country Member, by requiring
that the developed country Member pay monetary compensation or make some other form of
compensation to the developing country Member; and
(ii) any difficulties that a developing country Member may face in seeking to enforce
compliance with the recommendations of the Dispute Settlement Body, through authorising
collective suspension by the rest of the WTO Membership of obligations to the Member
against which recommendations were made.  It is understood that under such authorisation
any Member may suspend any obligations to the Member against which suspension is
authorised.
Article 24.1
Proposal
89. The requirement to "exercise due restraint in raising matters under these procedures involving
a least developed country Member" shall be understood to mean that panels shall before proceedingwith the case first determine whether the Member bringing the case has given particular consideration
to the special situation of the least-developed country Member.  In this regard, the panel shall take
into account all relevant factors including, the value of any alleged nullification or impairment, the
possible harm to the economy and resources of the least-developed country Member that could result
from the case, and the capacity in the circumstances of the least-developed country Member toeffectively deal with the case.
Article 27.2
Proposal
90. (a) It is understood that notwithstanding the establishment of the Advisory Centre on
WTO Law, the Secretariat shall provide qualified legal experts to developing country
Members to assist them in disputes.TN/CTD/W/3/Rev.2
Page 27
(b) The requirement for "continued impartiality of the Secretariat" in paragraph 2 shall be
understood to mean that the qualified legal expert made available to assist a
developing country Member in a case shall assist the country for the duration of the
case and not continue to be counsel for the country after the case.
Final Remark
91. This proposal is without prejudice to, individual country positions, and to additional proposals
that the Africa Group may submit.TN/CTD/W/3/Rev.2
Page 28
ANNEX I
Criteria for Technical and Financial Assistance
1. Technical and financial assistance shall be country driven.  In this regard, training courses
shall be sustainable.  Sustainability shall require, inter alia,
(a) follow up training,
(b) readily useable local infrastructure for keeping current on relevant developments in
the field,  and
(c) the targeting of different knowledge levels of trainees in a manner that increasingly
equips developing and least developed c ountry Members with progressively higher
levels of skills in all relevant fields.
2. The long-term and integral components of capacity building shall include the establishment of
reference and research libraries, the introduction of relevant courses in institutions of learning atuniversity level, and the planned and predictable availability of opportunities for training in other
jurisdictions so as to have domestic skills conversant with regimes of other Members;
3. Training shall be relevant to identified prioriti es and effective in directly helping the redress
of bottlenecks faced by Members.  In this regard it shall be directed towards addressing,
(a) implementing obligations,
(b) effectively participating in negotiations on a consistent basis,
(c) achieving the clear and unequivocal inclusion of their concerns in instruments
adopted by WTO bodies,
(d) equitably taking up and utilising opportunities availed under the multilateral trading
system and other market access arrangements;  and
(e) achieving acceptable or high levels of domestic economic growth.
4. Capacity building shall aim for the attainment in developing country Members of projected
levels of skills required in government departments, in diplomatic missions and their line ministries,
and in negotiating teams.  The developing country Member concerned shall establish the appropriate
levels.  The levels shall relate inter alia to experience and training of individuals in relevantdisciplines and the number of personnel.
5. Transparent, inclusive, fair, and fully accepted  institutional arrangements for ensuring the
proper functioning of capacity building programmes and activities shall always be in place as a
condition precedent for the commencement of transition periods.
6. There shall be,
(a) prior assessment and costing of implementation, and of compliance and adjustment
requirements of developing and least developed country Members under each orevery agreement;TN/CTD/W/3/Rev.2
Page 29
(b) the determination of ability to meet these requirements;  and
(c) the prior establishment of binding rules on the subsequent execution of modalities for
meeting these requirements bearing in mind that these requirements will have
financial, human resource, and socio-economic implications.
7. Capacity building shall assist,
(a) a proper integration in developing country Members among all relevant government
departments to address the cross-cutting and multi-disciplinary nature of WTO
obligations and rights,
(b) the establishment of a functioning link between developing country capitals and their
Geneva missions, and
(c) mechanisms for co-ordinating capacity bui lding activities in Geneva and in the
capitals that come under the auspices of participating donor facilities including the
WTO secretariat.
8. The success of capacity building shall not be reckoned or assessed on the basis of the quantity
of money pledged or spent; nor on the basis of the number of technical missions, or of seminars and
workshops.  In this regard, the success of capacity building shall be assessed taking into account allthe criteria in this Annex and the objectives of the WTO.
9. (a) With respect to negotiations, capacity building shall aim to provide practical material
and skills on how to negotiate and on issues for consideration, rather than only further
introductory courses and seminars designed for new or mid-career governmentofficials.  While the trade policy courses should continue, there shall be courses
designed for government officials with a good working knowledge of the WTO
system, aimed at assisting the internalisation of negotiating procedures and
mechanisms in relation to their issues and priorities as individual Members or regions
or groups of Members.
(b) In this regard and with respect to capacity building for decisions on negotiations to be
taken at the 5
th Session of the Ministerial Conference, capacity building shall not take
the form of persuading developing country officials on positions they should take
particularly on the Singapore issues of investment, competition, transparency in
government procurement and trade facilitation.  Rather, it should aim for the in-depth
internalisation of issues and all options relating to investment, competition,transparency in government procurement, trade facilitation and other related issues.
10. With respect to new obligations proposed in negotiations, the general guidelines shall be that
existing domestic laws shall not need to undergo major changes.  Where any major changes would be
required, new obligations will be considered only if the Members already have in place the relevantly
skilled people, the institutional framework and financial resources to undertake the required changes.TN/CTD/W/3/Rev.2
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ANNEX II
Criteria in the Formulation of Seminar and Workshop Programmes
1. Seminars shall target the different knowledge levels on WTO agreements of government
officials in and issues of concern for developing and least country Members, and specific elements of
WTO work programmes.  It is understood that new officials or officials unfamiliar with the WTO
Agreement may benefit from introductory courses and seminars.  And it is understood that officials
that have been working on WTO matters for a while and who may be the government negotiators, will
need seminars that explore issues and options for country positions at some length and with some
detail, rather than generalisations or introductions.
2. Seminars shall have a degree of continuity, through follow up seminars and continuous access
to current literature.  This continuity shall not be in the form of mere repetition of the seminars
previously given, but of building upon previous seminars into deeper discourses and research
coursework.  So, the preparation of seminars for a capacity building programme should have along-term framework, with projected results or products in terms of trained officials and levels of
training to be attained over a given framework of time.  It would be upon governments and their
officials to try to ensure that the officials benefit from this continuity.
3. Seminars shall normally be situated or localised in the territories of Members and regions, in
addition to those that are given at the WTO secretaria t.  When situated in territories of Members and
regions, they shall be directly linked into the curricula of institutions of high learning particularly at
university level. Some seminars should be given as part of the courses at these institutions of learning.
University teaching staff should be involved as trainers on seminars given to government officials and
civil society.  And the seminars should be schedul ed within or make part of the long-term capacity
building programmes within the country or region.
4. Seminars and workshops shall include the specific subject of special and differential
treatment, to assist in ensuring that the provisions are utilised to the maximum.TN/CTD/W/3/Rev.2
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ANNEX III
Mandatory Special and Differential Treatment Obligations
Provisions aimed at increasing the trade opportunities of developing country Members
• GATT 1994:  Article XXXVII:1(a) and 4; Article XXXVIII:2(c) and 2(e).
• Agreement on Textiles and Clothing:  Article 2.18.
• GATS:  Article IV:1 and IV:2
Provisions under which WTO members should safeguard the interests of developing country
Members
• GATT 1994:  Article XXXVI:9;  Article XXXVII:1(b) and (c), 2(a) and (b)(i), 3(a)-(c), and 5;
Article XXXVIII:1, 2(a), (b), (d), (f).
• The Decision on Measures Concerning the Possible Negative Effects of the Reform
Programme on Least-Developed and Net Food-Importing Developing country Members:Paragraphs 3(i)-(ii);  Paragraph 4;  and Paragraph 6.
• Application of SPS Measures:  Article 10.1;  Annex B, paragraph 2;  Annex B, paragraph 9.
• Textiles and Clothing:  Article 6.6(b), 6.6(c) and Annex, paragraph 3(a).
• Technical Barriers to Trade:  Article 10.6;  Article 12.1;  Article 12.2;  Article 12.3;
Article 12.5; Article 12.8;  Article 12.9;  Article 12.10.
• Implementation of Article VI of GATT 1994:  Article 15.
• Implementation of Article VII of GATT 1994:  Annex III.5.
• Decision on Texts Relating to Minimum Values and Imports by Sole Agents, Sole
Distributors, and Sole Concessionaires:  Text 1
• Import Licensing Procedures:  Article 1.2.
• Subsidies and Countervailing Measures:  Article 27.15.
• Agreement on Safeguards:  Article 9.1.
• Understanding on Rules and Procedures Governing the Settlement of Disputes:  Article 8.10;
Article 12.10;  Article 12.11;  Article 21.7;  Article 21.8.
• GATS:  Article XV.1 and Article XIX.3.
Technical Assistance
• The Decision on Measures Concerning the Possible Negative Effects of the Reform
Programme on Least-Developed and Net Food-Importing Developing country Members:Paragraph 3 (iii).
• Application of SPS Measures:  Article 9.1 and 9.2
• Technical Barriers to Trade:  Article 11.1;  Article 11.2;  Article 11.3;  Article 11.4;
Article 11.5;  Article 11.6;  Article 11.7;  and Article 12.7.
• Implementation of Article VII of GATT 1994:  Article 20.3.
• GATS:  Article XXV:2 and Paragraph 6(c)  of the Annex on telecommunications.
• TRIPS:  Article 67.
• Understanding on Rules and Procedures Governing the Settlement of Disputes:  Article 27.2
Least-developed country Members
PROVISIONS AIMED AT INCREASING TRADE OPPORTUNITIES :
• The 1999 Decision on waiver for preferential tariff treatment of LDCs
• TRIPS Agreement:  Article 66.2.
Decision on Measures in Favour of Least-Deve loped  country Members: paragraph 2(ii) (second
sentence) and paragraph 3.TN/CTD/W/3/Rev.2
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PROVISIONS AIMED AT SAFEGUARDING THE INTERESTS OF LEAST -DEVELOPED  COUNTRY MEMBERS :
• Agreement on Agriculture:  Article 16.1 and 16.2. (Least-developed and Net Food-Importing
Developing  country Members).
• Agreement on Textiles and Clothing:  Article 6.6(a).
• GATS:  Article IV:3 and XIX:3.
• Understanding on Rules and Procedures Governing the Settlement of Disputes:  Article 24.1
and 24.2
• Decision on Measures in Favour of Least-Devel oped  country Members:  paragraphs, 2(i), and
2(iv).
TECHNICAL ASSISTANCE :
• Technical Barriers to Trade:  Article 11.8
• Decision on Measures in Favour of Least-De veloped  country Members:  Paragraph 2(v).TN/CTD/W/3/Rev.2
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ANNEX IV
Currently Non Mandatory Special and Differential Treatment Obligations
Provisions aimed at increasing the trade opportunities of developing country Members
• GATT 1994:  Article XXXVI.2-5.
• The Enabling Clause:  para 2(a).
• Agreement on Agriculture:  Preamble.
• GATS:  Preamble.
Provisions under which WTO members should safeguard the interests of developing country
Members
• GATT 1994:  Article XXXVI:6 and 7.
• Application of SPS Measures:  Article 10.2 and Article 10.4.
• Decision on Texts Relating to Minimum Values and Imports by Sole Agents, Sole
Distributors, and Sole Concessionaires:  Text 2.
• Import Licensing Procedures:  Article 3.5 (a)(iv); Article 3.5 (j).
• Subsidies and Countervailing Measures:  Article 27.1
• Understanding on Rules and Procedures Governing the Settlement of Disputes:  Article 4.10;
Article 21.2
• GATS:  Preamble; Article XII.1
Least-developed  country Members
PROVISIONS AIMED AT INCREASING TRADE OPPORTUNITIES :
• Enabling Clause:  paragraph 2d.
• Agreement on Textiles and Clothing:  Footnote to Article 1.2
• Decision on Measures in Favour of Least-Deve loped country Members:  paragraph 2(ii) (first
sentence).
PROVISIONS AIMED AT SAFEGUARDING THE INTERESTS OF LEAST -DEVELOPED  COUNTRY MEMBERS :
• Decision on Measures in Favour of Least-Deve loped  country Members:  paragraph 2(iii).
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