Special And Differential Treatment Text Not Yet Ripe For Ministerial Draft

On 8 October, a report entitled "Special and Differential Treatment Provisions in the WTO Agreements" (WT/GC/52, not yet de-restricted) was circulated to WTO Members. The report was submitted by Committee on Trade and Development (CTD) Chair Ambassador Irumba of Uganda to the General Council (GC) on 3 October 2001.

The bulk of the report is an assessment of how Special and Differential Treatment (S&D) is being dealt with by the CTD: What are the Members' concerns? What are the efforts currently underway? Where and how can improvements be made -- conceptually and practically?

Of greatest interest is Annex I of the report, which outlines the proposal being suggested for adoption by the GC. If passed, it could be incorporated into the draft Ministerial Declaration (as well as referenced in the Implementation package).

However, as indicated by the substantial bracketing of crucial aspects of the text -- brackets indicate wording that is not yet agreed upon -- sources point out that consensus was not reachable within the mandated time allowance to submit the report to the GC. Thus while the report has been released, trade officials say there remains a fair amount of work before it is in a satisfactory state to be integrated into the draft texts. Sources see this as significant in light of the fact that many trade analysts are looking to this report to be the "make it or break it" for the current impasse on implementation concerns (see related article, this issue, on implementation).

The Annex begins by stating, "Members agree to review the effectiveness of all [S&D] provisions in favour of developing countries with a view to ensuring that individual S&D provisions can be strengthened and made more precise, effective and operational."

The recommendations

The proposed recommendations are listed under three points, and are preceded by the sentence, "The General Council [proposes that the Fourth Ministerial Conference] instruct[s] the CTD:" (brackets are quoted directly from the report). This qualification is key, sources say, as it would have a major impact on the timetable of moving ahead with the recommendations.

The first point relates to investigating current S&D provisions and to consider "the legal and practical implications for developed and developing country Members of converting S&D measures into mandatory provisions." The bracketed aspect of this point (i.e. undecided) involves the stipulation for a timeframe: either "by July 2002 with clear recommendations for a decision" or "with clear recommendations with a view to enabling the General Council to take a decision by July 2002."

The second point looks to making S&D provisions more effective through improved information flows and capacity building. The bracketing here relates to providing this support "according to individual needs" or "in relation to economies of different size and at different stages of development" or "[as] required by developing countries, especially LDCs."

The third and final instruction is to consider how S&D may be incorporated into the architecture of WTO rules. Bracketed within this sentence is "in the context of new negotiations". There is also recognition here of the proposal made by some members of the Like Minded Group with respect to a Framework Agreement on Special and Differential Treatment (see BRIDGES Weekly, 25 September 2001).

"Special and Differential Treatment Provisions in the WTO Agreements" WTO WT/GC/52, 03 October 2001; ICTSD Internal Files.