Special and Differential Treatment Regional Trade Policy Course, June 2006 Raúl Torres Development Division, WTO

Special and Differential Special and Differential

TreatmentTreatment

Regional Trade Policy Course, Regional Trade Policy Course, June 2006June 2006

Raúl TorresRaúl TorresDevelopment Division, WTODevelopment Division, WTO

Focus of this Focus of this PresentationPresentation

Historical Evolution of ‘Differential and Historical Evolution of ‘Differential and

More Favourable Treatment’More Favourable Treatment’

Doha work programme on S&D Doha work programme on S&D

TreatmentTreatment

Current StatusCurrent Status

Introduction Introduction

GATT established in 1947 ( 23 CPs)GATT established in 1947 ( 23 CPs)

No formal recognition of any difference between the No formal recognition of any difference between the CP’s.CP’s.

Fundamental principle of GATT was that all rights and Fundamental principle of GATT was that all rights and obligations should be applied uniformly.obligations should be applied uniformly.

Even though 11 out of the original 23 CP’s would today Even though 11 out of the original 23 CP’s would today be classified as developing countries, they participated be classified as developing countries, they participated as equal partnersas equal partners

GATT Review Session, GATT Review Session, 1954-551954-55

First occasion First occasion whenwhen provisions were adopted to provisions were adopted to address the needs of developing countriesaddress the needs of developing countries,, as a group as a group within GATT. within GATT.

Permitted dc’s to derogate from their scheduled tariff Permitted dc’s to derogate from their scheduled tariff commitmentscommitments, and included, and included

Article XVIII(B), to allow countries at an Article XVIII(B), to allow countries at an ‘‘early stage ofearly stage of

developmentdevelopment’’ to use QR’s for BoP purposes. to use QR’s for BoP purposes.

Article XVIII(C), to allow countries that could only Article XVIII(C), to allow countries that could only

support ‘support ‘low levels of living standardslow levels of living standards’’ to impose to impose

trade restrictions to support infant industriestrade restrictions to support infant industries

Introduction of Part IV - Introduction of Part IV - 19641964

Basic objective : dBasic objective : dc’sc’s should not be expected to take on should not be expected to take on

obligations inconsistent with their levels of development obligations inconsistent with their levels of development

((Non-ReciprocityNon-Reciprocity))

In 1964 the GATT adopted a specific legal framework In 1964 the GATT adopted a specific legal framework to to

address address the concerns of developing countries.the concerns of developing countries.

Three new Articles, XXXVI to XXXVIII were introduced in Part Three new Articles, XXXVI to XXXVIII were introduced in Part

IV of GATT dealing specifically with Trade and Development. IV of GATT dealing specifically with Trade and Development.

What did Part IV provide?What did Part IV provide?

The measures introduced includedThe measures introduced included

provision ofprovision of more favourable market access conditions to more favourable market access conditions to products of export interest to dc’sproducts of export interest to dc’s

introduction of the concept of non-reciprocityintroduction of the concept of non-reciprocity; ;

elimination of restrictions which differentiate unreasonably elimination of restrictions which differentiate unreasonably between primary and processed productsbetween primary and processed products

establishment of the CTD to review the application of Part establishment of the CTD to review the application of Part IV and to IV and to consider any changes to these provisions to consider any changes to these provisions to strengthen the objectives of trade strengthen the objectives of trade & development.& development.

The Tokyo Round–1973-The Tokyo Round–1973-7979

The main focus continued to be tariff reductions The main focus continued to be tariff reductions

However, many products of export interest to dc’s However, many products of export interest to dc’s

were either exempted from reduction cuts or were were either exempted from reduction cuts or were

subject to lower reductions subject to lower reductions

First time an attempt to address NTBs.First time an attempt to address NTBs.

Still limited participation of dc’sStill limited participation of dc’s; ; developed countries developed countries

often negotiated exceptions amongst themselves.often negotiated exceptions amongst themselves.

The Enabling Clause - 1979The Enabling Clause - 1979

Enabling Clause introduced during the Tokyo RoundEnabling Clause introduced during the Tokyo Round

Preferential treatment by developed countries for Preferential treatment by developed countries for goods originating from dc’s in the goods originating from dc’s in the

flexibility in the formation of RTA’s between dc’s;flexibility in the formation of RTA’s between dc’s;

Preferential treatment for dc’s in other GATT rules Preferential treatment for dc’s in other GATT rules dealing with non-tariff barriers; dealing with non-tariff barriers;

special treatment to least developed countries in the special treatment to least developed countries in the context of specific measures for developing countriescontext of specific measures for developing countries

S&D Treatment in the UR S&D Treatment in the UR

CertainCertain basic underlying conceptual premises related to S&D basic underlying conceptual premises related to S&D treatment emerged during the URtreatment emerged during the UR, namely that, namely that

dc’s were intrinsically disadvantaged in their participation dc’s were intrinsically disadvantaged in their participation

in international tradein international trade; ;

trade policies that maximised sustainable development in trade policies that maximised sustainable development in

dc’s were not the same as those in developed economies;dc’s were not the same as those in developed economies;

any multilateral agreement needed to take account of any multilateral agreement needed to take account of

these weaknesses & differences when specifying rights these weaknesses & differences when specifying rights

and obligationsand obligations

S&D Treatment in the URS&D Treatment in the UR

These underlying conceptual premises These underlying conceptual premises resulted in S&D provisions in 6 groupsresulted in S&D provisions in 6 groups

a)a) provisions aimed at increasing trade opportunities provisions aimed at increasing trade opportunities

b)b) provisions which call upon WTO Members to provisions which call upon WTO Members to safeguard the interest of dc’s safeguard the interest of dc’s

c)c) provisions offering flexibility of commitments provisions offering flexibility of commitments

d)d) transitional time periods transitional time periods

e)e) provisions related to technical assistance provisions related to technical assistance

f)f) provisions in favour of least developed countries provisions in favour of least developed countries

Special & Differential Special & Differential TreatmentTreatment

Provisions aimed at increasing trade Provisions aimed at increasing trade opportunitiesopportunities

--These provisions basically encourage the developed countries These provisions basically encourage the developed countries to adopt positive measures which would result in increased trade to adopt positive measures which would result in increased trade opportunities for developing countriesopportunities for developing countries

--Article XXXVII of GATT 1994, provided that “.......the developed....Article XXXVII of GATT 1994, provided that “.......the developed....[Member] shall to the fullest extent possible..... accord high priority [Member] shall to the fullest extent possible..... accord high priority to the reduction and elimination of barriers to products, currently to the reduction and elimination of barriers to products, currently or potentially of particular export interest to... [developing or potentially of particular export interest to... [developing countries]countries]

Legally enforceable .... Legally enforceable .... ??


Measures safeguarding the interests of developing Measures safeguarding the interests of developing countriescountries. These require developed countries Members to take into . These require developed countries Members to take into account the special situation of dc’s before imposing any account the special situation of dc’s before imposing any measure which might affect their trade interestsmeasure which might affect their trade interests. . Article 10:1 of the SPS Agreement states thatArticle 10:1 of the SPS Agreement states that “In the “In the preparation and application of SPS measures, Members shall preparation and application of SPS measures, Members shall take account of special needs of developing country take account of special needs of developing country Members, and in particular of the least-developed country Members, and in particular of the least-developed country Members”.Members”.

Is the provision legally enforceable Is the provision legally enforceable ?? There is an obligation There is an obligation to to only consideronly consider the effects of intended SPS measure but it the effects of intended SPS measure but it falls short of obliging them to change the measure even if it falls short of obliging them to change the measure even if it impacts negatively on the export interests of dc’s.impacts negatively on the export interests of dc’s.


Article 15 of the Anti-Dumping AgreementArticle 15 of the Anti-Dumping Agreement““It is recognized that It is recognized that special regardspecial regard must be given by must be given by developed country Members to the developed country Members to the special situationspecial situation of of developing country Members when considering the developing country Members when considering the application of anti-dumping duties. Possibilities of application of anti-dumping duties. Possibilities of constructive remediesconstructive remedies provided for by the Agreement provided for by the Agreement shall be exploredshall be explored before applying anti-dumping duties before applying anti-dumping duties where thy would affect the essential interests of where thy would affect the essential interests of developing country Members”.developing country Members”.

Legal enforceabilityLegal enforceability......?? BothBoth ‘ ‘mustmust’ ’ andand ‘shall’‘shall’ are are mandatory verbs....does that help?mandatory verbs....does that help?


Provisions permitting the assumption of lesser Provisions permitting the assumption of lesser obligations by developing countriesobligations by developing countriesExample: Agreement on AgricultureExample: Agreement on Agriculture

Developing countries were asked to assume lesser obligations Developing countries were asked to assume lesser obligations than their developed partnersthan their developed partners

. . Developed MemberDeveloped Member to reduce their tariffs by to reduce their tariffs by 36 per cent over a 36 per cent over a six yearsix year period, while period, while developing countriesdeveloping countries by 24 per cent over a by 24 per cent over a ten year period.ten year period.

. Minimum tariff reduction on each tariff line:. Minimum tariff reduction on each tariff line:

Developed country Members – 15 %Developed country Members – 15 %

Developing country Members – 10%Developing country Members – 10%


Provisions relating to transitional periodsProvisions relating to transitional periodsWith the exception of Anti-dumping Agreement and Pre-shipment With the exception of Anti-dumping Agreement and Pre-shipment Inspection Agreement, almost all the agreements contain longer Inspection Agreement, almost all the agreements contain longer transitional periods for dc’s.transitional periods for dc’s.

DEVELOPED DEVELOPINGDEVELOPED DEVELOPINGAgriculture: 6 years Agriculture: 6 years 10 years 10 yearsTRIPS: TRIPS: 5 years 5 yearsTRIMS:TRIMS: 5 years 5 yearsCustoms Valuation: 5 yearsCustoms Valuation: 5 years

Are the provisions relating to transitional periods legally enforceable?Are the provisions relating to transitional periods legally enforceable?


Provisions relating to technical assistanceProvisions relating to technical assistanceFor example, Art. 9 of the SPS Agreement:For example, Art. 9 of the SPS Agreement:““Members Members agree to facilitateagree to facilitate the provision of technical the provision of technical assistance to other Members, especially developing assistance to other Members, especially developing country Members, either country Members, either bilaterallybilaterally or through the or through the appropriate international organizationsappropriate international organizations””““Where substantial investments are required in order Where substantial investments are required in order for an exporting developing country Member to fulfil the for an exporting developing country Member to fulfil the sanitary or phytosanitary requirements of an importing sanitary or phytosanitary requirements of an importing Member, the latter shall Member, the latter shall consider providing such consider providing such technical assistance”technical assistance”

Concerns withConcerns with S&DS&D

AAfter a few years dc’s felt that in many cases most of the fter a few years dc’s felt that in many cases most of the S&D provisions were: S&D provisions were:

non-bindingnon-binding

‘ ‘best endeavour clauses’best endeavour clauses’

apparently mandatory, yet de-facto non-bindingapparently mandatory, yet de-facto non-binding

only a few provisions were mandatory and binding only a few provisions were mandatory and binding provisionsprovisions

Further elaborations of these Further elaborations of these concernsconcerns

I. Provisions employing purely discretionary I. Provisions employing purely discretionary languagelanguage

““contracting parties contracting parties may accordmay accord differential and differential and more favourable treatment to developing more favourable treatment to developing countries” (Enabling Clause) countries” (Enabling Clause)

II. Best Endeavour Clauses II. Best Endeavour Clauses

““Members Members agree to facilitateagree to facilitate the provisions of the provisions of technical assistance to other Members, especially technical assistance to other Members, especially developing country Members” (Article 9 of SPS)developing country Members” (Article 9 of SPS)

Elaborations of these concernsElaborations of these concerns

III. III. De facto non-binding provisionsDe facto non-binding provisions

Members Members shall shall take accounttake account of the special and of the special and needs of developing country members in preparation needs of developing country members in preparation and application of new SPS measures (Article 10.1 and application of new SPS measures (Article 10.1 SPS agreement) SPS agreement)

It is recognised that It is recognised that special regardspecial regard must must be given be given by developed country Members to the by developed country Members to the special special situationsituation of developing country Members when of developing country Members when considering the application of anti-dumping measures considering the application of anti-dumping measures under this Agreement. (Article 15 of the AD under this Agreement. (Article 15 of the AD Agreement)Agreement)

Doha Ministerial DeclarationDoha Ministerial Declaration

Ministers at Doha, recognizing that problems existed Ministers at Doha, recognizing that problems existed with respect to S&D treatment set out a work with respect to S&D treatment set out a work programme in para 44 of the Declaration, whichprogramme in para 44 of the Declaration, which

reaffirmed that S&D is an integral part of the WTOreaffirmed that S&D is an integral part of the WTO

noted that there are concerns about the implementation of noted that there are concerns about the implementation of S&D provisionsS&D provisions

directed that all S&D provisions should be directed that all S&D provisions should be reviewed to reviewed to strengthen them and to make them strengthen them and to make them moremore precise, effective precise, effective and operational,and operational, and and

linked this work to the Decision on Implementation related linked this work to the Decision on Implementation related issues and concernsissues and concerns

Doha Ministerial DeclarationDoha Ministerial Declaration

The decision on The decision on ‘Implementation related Issues and ‘Implementation related Issues and concerns’concerns’ mandates the CTD mandates the CTD

to identify the S&D provisions which should be made to identify the S&D provisions which should be made mandatory and the implications of doing so mandatory and the implications of doing so

to examine additional ways to make S&D more effectiveto examine additional ways to make S&D more effective

to report to the GC with recommendations by July 2002to report to the GC with recommendations by July 2002

to consider how S&D could be incorporated into the to consider how S&D could be incorporated into the architecture of WTO rules. architecture of WTO rules.

S&D Work ProgrammeS&D Work Programme

A very large number (finally 88) Agreement specific A very large number (finally 88) Agreement specific proposals were submitted by dc’s, primarily by the proposals were submitted by dc’s, primarily by the African Group and the LDC’s.African Group and the LDC’s.

Developed countries also made submissions and Developed countries also made submissions and raised a number of systemic issues including those raised a number of systemic issues including those related to principles and objectives of S&D, definition, related to principles and objectives of S&D, definition, utilisation, graduation, universal vs. differentiated utilisation, graduation, universal vs. differentiated treatment.treatment.

In its report to the General Council, initially in July’02, In its report to the General Council, initially in July’02, and then in December’02, the CTD (SS) could only and then in December’02, the CTD (SS) could only agree on 4 proposals. CTD sought guidance from GC.agree on 4 proposals. CTD sought guidance from GC.


Actual negotiations and drafting of possible language Actual negotiations and drafting of possible language for recommendation to the GC only started in Dec’02for recommendation to the GC only started in Dec’02

Members could agree in principle to 4 proposals in Members could agree in principle to 4 proposals in December’02 and a further 8 by February’03 December’02 and a further 8 by February’03

However, most developing countries felt that the However, most developing countries felt that the agreed language did not make the provisions more agreed language did not make the provisions more precise, effective and operational.precise, effective and operational.

Lack of progress was mainly due to the differences in Lack of progress was mainly due to the differences in the interpretation of the mandatethe interpretation of the mandate


The CTD recommended that the GC provide a The CTD recommended that the GC provide a clarification on how to give effect to the Doha clarification on how to give effect to the Doha mandate.mandate.

There was no consensus in the GC to provide There was no consensus in the GC to provide this clarificationthis clarification

The GC only took note of the report and asked The GC only took note of the report and asked its Chairman to undertake consultations on how its Chairman to undertake consultations on how to take forward the mandated review of all S&D to take forward the mandated review of all S&D provisions.provisions.

Negotiations under the GC Chair Negotiations under the GC Chair

The Chairman of the General Council put forward The Chairman of the General Council put forward an approach based on two fundamental premises:an approach based on two fundamental premises:

all proposals would be addressed without prejudice all proposals would be addressed without prejudice to the outcome, and thatto the outcome, and that

an informal categorization of the proposals was an informal categorization of the proposals was necessary to make the work more efficient.necessary to make the work more efficient.

Members also agreed to referrals and to consider Members also agreed to referrals and to consider possible changes in the existing language possible changes in the existing language

Accordingly, all the 88 Agreement-specific Accordingly, all the 88 Agreement-specific proposals were divided into three categories. proposals were divided into three categories.

Negotiations under the GC Chair Negotiations under the GC Chair

Category I included the 38 proposals on which Category I included the 38 proposals on which there was greater possibility of agreement. there was greater possibility of agreement.

Category II had 38 proposals made in areas Category II had 38 proposals made in areas currently under negotiation– for referral.currently under negotiation– for referral.

Category III included 12 proposals on which there Category III included 12 proposals on which there appeared to be a wide divergence of views.appeared to be a wide divergence of views.

After protracted negotiations Members agreed to After protracted negotiations Members agreed to make 24 recommendations w.r.t. 25 proposals. A make 24 recommendations w.r.t. 25 proposals. A further 3 were added on at Cancun (Annex C)further 3 were added on at Cancun (Annex C)

Cancun-Hong Kong PhaseCancun-Hong Kong Phase

Members faced with three basic questionsMembers faced with three basic questions

what Members wished to do with the 28 proposals what Members wished to do with the 28 proposals on which they had already agreed to in principle;on which they had already agreed to in principle;

how they felt the current discussions on S&D how they felt the current discussions on S&D could be made more productive;could be made more productive;

what suggestions they had on the way forward to what suggestions they had on the way forward to fulfil the Doha mandatefulfil the Doha mandate

Cancun-Hong Kong Cancun-Hong Kong Phase....July DecisionPhase....July Decision

Review all the outstanding Agreement-specific Review all the outstanding Agreement-specific proposals and report to the GC with clear proposals and report to the GC with clear recommendations for a decision, by July 2005; and recommendations for a decision, by July 2005; and

address all other outstanding work, including the address all other outstanding work, including the cross-cutting issues & the monitoring mechanism, cross-cutting issues & the monitoring mechanism, and report, as appropriate, to the GCand report, as appropriate, to the GC

Work on Category II proposals to be expeditiously Work on Category II proposals to be expeditiously completed. Those WTO bodies were required to completed. Those WTO bodies were required to report to the General Council, with clear report to the General Council, with clear recommendations for a decision no later than July recommendations for a decision no later than July 2005. 2005.

Instructed the Special Session to:

Cancun-Hong Kong PhaseCancun-Hong Kong Phase

Flexibility in WTO rules should enable the development Flexibility in WTO rules should enable the development of developing countries; of developing countries;

These flexibilities should be made available to those These flexibilities should be made available to those Members in need of them to address particular Members in need of them to address particular development challenges, whilst ensuring that there is no development challenges, whilst ensuring that there is no a priori exclusion of any developing country from such a a priori exclusion of any developing country from such a situational flexibility; situational flexibility;

In an attempt to move forward and break the existing impasse theChairman put forward a conceptual approach built along the following elements:

Chairman’s Approach (2)Chairman’s Approach (2)

There should be a multilateral monitoring of the use There should be a multilateral monitoring of the use of these flexibilities; of these flexibilities;

Enhanced capacity-building programmes would need Enhanced capacity-building programmes would need to be developed to assist countries to implement to be developed to assist countries to implement WTO rules and address supply‑side constraints; WTO rules and address supply‑side constraints;

The flexibilities in the rules would need to be The flexibilities in the rules would need to be consistent with a multilateral rules based system. consistent with a multilateral rules based system.

Chairman’s Approach (3)Chairman’s Approach (3)

Redraft the proposal being addressed or merge it with Redraft the proposal being addressed or merge it with other similar proposals other similar proposals

Address the underlying development issues raised by the Address the underlying development issues raised by the proposal in the context of some of the cross-cutting issues. proposal in the context of some of the cross-cutting issues.

The intention was to apply the elements of this approach to the proposals and re-examine them with two possible non-exclusive options in mind:

Member’s Views on Member’s Views on Chair’s ApproachChair’s Approach

ProponentsProponents: aimed more towards a review of the basic concept of S&D : aimed more towards a review of the basic concept of S&D rather than making the Agreement-specific proposals more precise, rather than making the Agreement-specific proposals more precise, effective and operational as mandated by paragraph 44 . effective and operational as mandated by paragraph 44 .

How situational flexibility could be put into practice considering the How situational flexibility could be put into practice considering the difficulty in predetermining all possible situations. Situational flexibility difficulty in predetermining all possible situations. Situational flexibility approach could lead to an implicit differentiation among developing approach could lead to an implicit differentiation among developing countries. countries.

Discussions on the approach have been exhausted and if the July deadline is Discussions on the approach have been exhausted and if the July deadline is to be met then work needs to resume on the remaining Agreement-specific to be met then work needs to resume on the remaining Agreement-specific proposals. It has been agreed that in carrying out this work the proposals proposals. It has been agreed that in carrying out this work the proposals made by the LDCs will be addressed as a matter of priority.made by the LDCs will be addressed as a matter of priority.

The developed countries were happy to go along with Chair’s The developed countries were happy to go along with Chair’s approach.approach.

LDC Proposals (Annex F)LDC Proposals (Annex F)

In the run up to HK Ministerial Members focused In the run up to HK Ministerial Members focused their work on 5 LDC Agreement-specific proposals their work on 5 LDC Agreement-specific proposals which included proposals on which included proposals on thethe Understanding in Understanding in Respect of Waivers of Obligations under the GATT Respect of Waivers of Obligations under the GATT 1994, the Enabling Clause, the Agreement on 1994, the Enabling Clause, the Agreement on Trade-Related Investment Measures and the Trade-Related Investment Measures and the Decision on Measures in Favour of Least-Decision on Measures in Favour of Least-Developed Countries.Developed Countries.

These proposals with text in brackets were These proposals with text in brackets were transmitted to Ministers at HK and finally agreement transmitted to Ministers at HK and finally agreement was reached on adoption of Annex F.was reached on adoption of Annex F.

What happened at Hong What happened at Hong KongKong

A package for LDCs emerged as the A package for LDCs emerged as the most important and concrete outcome of most important and concrete outcome of the conferencethe conference

And even from amongst the LDC And even from amongst the LDC proposals the decision on the one proposals the decision on the one relating to providing all LDCs bound duty relating to providing all LDCs bound duty free and quota free market access for all free and quota free market access for all the products was by far the most the products was by far the most important.important.

LDCs Proposal LDCs Proposal

Understanding in Respect of Waivers of Obligations under the GATT 1994 Understanding in Respect of Waivers of Obligations under the GATT 1994 (23) Proposal by the LDCs - TN/CTD/W/4/Add.1(23) Proposal by the LDCs - TN/CTD/W/4/Add.1

"The Understanding in Respect of Waivers of Obligations under the GATT "The Understanding in Respect of Waivers of Obligations under the GATT 1994 should be clarified to provide that request for waivers from least-1994 should be clarified to provide that request for waivers from least-developed countries of their obligation under the GATT 1994 and other developed countries of their obligation under the GATT 1994 and other multilateral agreements shall be considered sympathetically and waivers multilateral agreements shall be considered sympathetically and waivers granted expeditiously.“granted expeditiously.“

Chair’s Text:Chair’s Text: (i)(i) The General Council agrees that requests for waivers by least-The General Council agrees that requests for waivers by least-

developed country Members under Article IX of the WTO Agreement and the developed country Members under Article IX of the WTO Agreement and the Understanding in respect of Waivers of Obligations under the GATT 1994 Understanding in respect of Waivers of Obligations under the GATT 1994 [shall] [should] be given positive consideration and a decision taken within 60 [shall] [should] be given positive consideration and a decision taken within 60 days.days.

(ii)(ii) When considering requests for waivers by other Members exclusively When considering requests for waivers by other Members exclusively in favour of least-developed country Members, the General Council agrees in favour of least-developed country Members, the General Council agrees that a decision [shall] [should] be taken within 60 days, or in exceptional that a decision [shall] [should] be taken within 60 days, or in exceptional circumstances as expeditiously as possible thereafter [,taking into account the circumstances as expeditiously as possible thereafter [,taking into account the interests of other developing Members [so as not to affect them]]. interests of other developing Members [so as not to affect them]].

LDCs ProposalLDCs Proposal

Agreement on Trade-Related Investment Measures – Whole Agreement Agreement on Trade-Related Investment Measures – Whole Agreement :(84) Proposal by :(84) Proposal by the LDCsthe LDCs - TN/CTD/W/4 - TN/CTD/W/4

‘‘LDCs should be exempted from the disciplines of the Agreement on TRIMs’LDCs should be exempted from the disciplines of the Agreement on TRIMs’ Chair’s Text:Chair’s Text: LDCs shall be allowed to maintain on a temporary basis existing measures that LDCs shall be allowed to maintain on a temporary basis existing measures that

deviate from their obligations under the TRIMs Agreement. For this purpose, LDCs deviate from their obligations under the TRIMs Agreement. For this purpose, LDCs shall notify the CTG of such measures within one year, starting [x]. LDCs will be shall notify the CTG of such measures within one year, starting [x]. LDCs will be allowed to maintain these existing measures until the end of a new transition period, allowed to maintain these existing measures until the end of a new transition period, lasting [x] years. This transition period may be extended by the CTG under the existing lasting [x] years. This transition period may be extended by the CTG under the existing procedures set-out in the TRIMs Agreement, taking into account the individual procedures set-out in the TRIMs Agreement, taking into account the individual financial, trade, and development needs of the Member in question and [possible financial, trade, and development needs of the Member in question and [possible effects on other Members].effects on other Members].

LDCs shall also be allowed to introduce new measures that deviate from their LDCs shall also be allowed to introduce new measures that deviate from their obligations under the TRIMs Agreement. These new TRIMs shall be notified to the obligations under the TRIMs Agreement. These new TRIMs shall be notified to the CTG no later than [x] months after their adoption. The CTG shall give positive CTG no later than [x] months after their adoption. The CTG shall give positive consideration to such notifications, taking into account the individual financial, trade, consideration to such notifications, taking into account the individual financial, trade, and development needs of the Member in question and [possible effects on other and development needs of the Member in question and [possible effects on other Members], and take a decision within [x] months. The duration of these measures will Members], and take a decision within [x] months. The duration of these measures will not exceed [x] years, renewable subject to review and decision by the CTG. not exceed [x] years, renewable subject to review and decision by the CTG.

Any measures incompatible with the TRIMs Agreement and adopted under this Any measures incompatible with the TRIMs Agreement and adopted under this decision shall be phased out by year [x].decision shall be phased out by year [x].

Current StatusCurrent Status

Special Session has focused work on Special Session has focused work on remaining Agreement-specific proposals in remaining Agreement-specific proposals in Category I.Category I.

Work has also begun on cross-cutting issuesWork has also begun on cross-cutting issues First reading of Category III proposals has First reading of Category III proposals has

been undertaken in 1been undertaken in 1stst June June The Chair is intensifying coordination efforts The Chair is intensifying coordination efforts

with other bodies to whom Category II with other bodies to whom Category II proposals have been referred.proposals have been referred.

Documents

Special and Differential Treatment Regional Trade Policy Course, June 2006 Raúl Torres Development Division, WTO