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ANNEX
Table 1

Examples of S & D Treatment for LDCs 

Instruments 

S & D Treatment 

Ministerial Decision on Measures in Favour of LDCs LDCs are required to take commitments consistent with their individual development 
Agreement on Agriculture Total exemption from reduction commitments in tariffs, domestic support and export subsides for an indefinite period
Agreement on Trade-Related Investment Measures  Delay in the application of the Agreement by seven years
Agreement on Trade-Related Aspects of Intellectual Property Rights  Delay in the application of the obligations by ten years 
Agreement on Subsidies and Countervailing Measures Total exemption from prohibition against subsidies contingent upon export performance for an indefinite period
Agreement on Trade in Services  Process of liberalization shall take place with due respect for national policy objectives and the level of development of individual members 
Agreement on Implementation of Article VII of the GATT 1994 (Customs Valuation) Delay in the application of the Agreement by five years, and further three years for specific provisions 

  


ANNEX
Table 2

Commitments by Vanuatu, Solomon Islands, Papua New Guinea and Mongolia

Demands from Australia (Aus), New Zealand (NZ) and US  Vanuatu Solomon Islands  Papua New Guinea Mongolia
No special safeguard right in trade in agriculture (Aus, NZ) Yes Yes Yes Yes
No support measures except within "de minimis" level (Aus, NZ) 49% 80% 43% 20%
Binding all tariff lines (US) Yes No Yes No
Reducing simple average rate to 25% (US) No No Yes No
Liberalizing basic telecommunications (US)  No No No Yes
Liberalizing value-added telecommunications (US) No No No Yes
Liberalizing wholesale and retail trade (US) No No No No
Joining Agreement on Government Procurement (US) No No No No
Joining Agreement on Trade in Civil Aircraft (US) No No No No
Zero-for-Zero Tariff Reduction Initiatives (US) Yes No No No
Information Technology Agreement (US)  Yes No No No

  


ANNEX
Table 3

Tariff Concessions on Industrial Products

Country Share of Bound Tariff Lines Simple Averages of Bound Tariffs
Vanuatu  100% 49%
Indonesia 93% 39%
Thailand  68% 28%
India 62% 59%
Malaysia 62% 17%
Philippines 59% 26%
Tunisia 46% 34%
Turkey 36% 43%
Senegal 32% 14%
Hong Kong 24% 0%
Sri Lanka 8% 28%

  


ANNEX
Table 4

Service Sub-Sectors Included in Liberalization Commitments of Vanuatu, 
Solomon Islands, Papua New Guinea and Mongolia

Vanuata Papua New Guinea Solomon Islands Mongolia
Professional services Professional services Professional services Professional services
Basic and vaule-added telecom services Basic and vaule-added telecom services Hotels and restaurants Value-added telecom services
Environmental Service Other business services Insurance Courier services
Wholesale trade Computer and related services Banking Wholesale trade
Retail trade Courier services General construction work for buildings Retail trade
Insurance General construction work for civil engineering General construction work for Civil engineering Insurance
Banking General construction work for civil engineering Hotels and restaurants
Hotels and restaurants Banking Travel agencies
Primary education Hotels and restaurants Tourist guide service
Secondary education Maritime transport services Other business services
Higher education
Adult education Postal services
Other education Installation and assembly work
Sewage service Building completion  and finishing work
Refuse disposal services
Sanitation and similar servies
General construction work for buildings

 


ANNEX
Table 5

Services included in the WTO Service Sectoral Classification List (MTN.GNS/W/120) 


SECTORS AND SUB-SECTORS

1. BUSINESS SERVICES

  1. Professional services

    1. legal services\

    2. accounting, auditing and bookkeeping services

    3. taxation services

    4. architectural services

    5. engineering services

    6. integrated engineering services

    7. urban planning and landscape architectural services

    8. medical and dental services

    9. veterinary services

    10. services provided by midwives, nurses, physiotherapists, paramedical personnel

    11. other 

  2. Computer and related services

    1. consultancy services related to the installation of computer hardware

    2. software implementation services

    3. data processing services

    4. other

  3. Research and development services

    1. R&D services on natural sciences

    2. R&D services on social sciences and humanities

    3. interdisciplinary R&D services

  4. Real estate services

    1. involving own or leased property 

    2. on a fee or contract basis 

  5. Rental/leasing services without operators

    1. relating to ships

    2. relating to aircraft

    3. relating to other transport equipment

    4. relating to other machinery and equipment 

    5. e.other

  6. Other business services

    1. advertising services

    2. market research and public opinion polling services

    3. management consulting services

    4. services related to management consulting

    5. technical testing and analysis services

    6. services incidental to agriculture, hunting and forestry

    7. services incidental to fishing

    8. services incidental to mining 

    9. services incidental to manufacturing

    10. services incidental to energy distribution

    11. placement and supply services of personnel

    12. investigation and security

    13. related scientific and technical consulting services

    14. maintenance and repair of equipment

    15. building-cleaning services

    16. photographic services

    17. packaging services 

    18. printing, publishing

    19. convention services

    20. other

2. COMMUNICATION SERVICES

  1. Postal services

  2. Courier services

  3. Telecommunication services

    1. voice telephone services

    2. packet-switched data transmission services

    3. circuit-switched data transmission services

    4. telex services

    5. telegraph services

    6. facsimile services

    7. private lease circuit services

    8. electronic mail

    9. voice mail

    10. on-line information and data base retrieval

    11. electronic data interchange

    12. enhanced/value-added facsimile services

    13. code and protocol conversion

    14. on-line information and/or data processing

    15. other

  4. Audiovisual services

    1. motion picture and video tape production and distribution services 

    2. motion picture projection service

    3. radio and television services

    4. radio and television transmission services

    5. sound reording

    6. other

  5. Other

3. CONSTRUCTION AND RELATED ENGINEERING SERVICES 

  1. General construction work for buildings

  2. General construction work for civil engineering

  3. Installation and assembly work

  4. Building completion and finishing work

  5. Other 

4. DISTRIBUTION SERVICES

  1. Commission agents' services 

  2. Wholesale trade services

  3. Retailing services

  4. Franchising

  5. Other

5. EDUCATIONAL SERVICES

  1. Primary education services

  2. Secondary education services

  3. Higher education services

  4. Adult education

  5. Other education services

6. ENVIRONMENTAL SERVICES\

  1. Sewage services

  2. Refuse disposal services

  3. Sanitation and similar services

  4. Other

7. FINANCIAL SERVICES

  1. A. All insurance and insurance-related services

    1. life, accident and health insurance services

    2. non-life insurance services 

    3. reinsurance and retrocession

    4. services auxiliary to insurance

  2. B. Banking and other financial services (excluding insurance)

    1. acceptance of deposits and other repayable funds from the public

    2. lending of all types

    3. financial leasing

    4. all payment and money transmission services

    5. guarantees and commitments

    6. trading for own account or for account of customers

    7. participation in issues of all kinds of securities

    8. money broking

    9. asset management

    10. settlement and clearing services

    11. advisory and other auxiliary financial services

    12. provision and transfer of financial information, financial data processing and related software services 

  3. C. Other

8. HEALTH RELATED AND SOCIAL SERVICES

  1. Hospital services

  2. Other human health services

  3. Social services 

  4. Other

9. TOURISM AND TRAVEL RELATED SERVICES

  1. Hotels and restaurants (including catering)

  2. Travel agencies and tour-operators services

  3. Tourist guide services

  4. Other

10. RECREATIONAL, CULTURAL AND SPORTING SERVICES

  1. Entertainment services (including theatre, live bands and circus services)

  2. News agency services

  3. Libraries, archives, museums and other cultural services

  4. Sporting and other recreational services

  5. Other 

11. TRANSPORT SERVICES

  1. Maritime transport services

    1. passenger transportation

    2. freight transportation

    3. rental 

    4. maintenance and repair 

    5. pushing and towing services

    6. supporting services 

  2. Internal waterways transport

    1. to f. same as above 

  3. Air transport services

    1. to f. same as above 

  4. Space transport

  5. Rail transport services

    1. to f. same as C 

  6. Road transport services

    1. a. to d. same as above

    2. supporting services

  7. Pipeline transport

    1. transportation of fuels

    2. transportation of other goods 

  8. Services auxiliary to all modes of transport

    1. cargo-handling services

    2. storage and warehouse services

    3. freight transport agency services

    4. other

  9. Other transport services

12. OTHER SERVICES NOT INCLUDED ELSEWHERE 
  


ANNEX
Table 6

LDCs' proposal

  • The least-developed countries status should be automatically granted at the first Working Party meeting and should be specifically referred to in the report of the Working Party;

  • The forthcoming new round of the multilateral trade negotiations should not divert attention from the need for a streamlined and accelerated accession process;

  • The peculiar situation of LDCs calls for the establishment of a fast-track approach for accession, of no more than one year from the date of the submission of the Trade Memoranda, with a maximum of two Working Party meetings, which ever is earlier for the completion of the accession process of the LDCs;

  • In the process of accession, LDCs should not be called upon to assume obligations or commitments that go beyond what is applicable to WTO LDC Members.

  • Special and Differential treatment provisions should be automatically granted to acceding LDCs for the same transitional period as stipulated in the respective agreement for LDCs, counting from the date of accession;

  • No commitments and obligations should be sought from acceding LDCs on issues which are not covered by the MTAs or going beyond them both in the context of WTO accession and bilateral trade negotiations between an acceding LDC and a WTO Member;

  • No commitments and obligations should be sought from an acceding LDC as a condition for its accession, on membership in the Plurilateral Trade Agreements and acceptance of optional sectoral market access initiatives or other optional legal instruments of the GATT 1994;

  • Market access negotiations for acceding LDCs should be simplified by agreeing on specific minimal targets for them in industrial tariffs, agricultural tariffs and services sectors. These should broadly correspond to the actual commitments by WTO LDC Members;

  • The least-developed countries seeking accession to WTO require technical assistance to strengthen their negotiating capacity and to enhance their efforts to implement domestic legislative and economic policies compatible with WTO Agreements. They also need support to enable them to have periodical consultations and exchange experiences on the accession process. A "Special Window" should be established in the Trust Fund for LDCs, administered by UNCTAD, for this purpose. LDCs' development partners, both bilateral and multilateral are invited to make generous contribution to the Trust Fund for the above purpose.


ANNEX
Table 7

EU's Proposals on LDCs' WTO Accession

Industrial tariffs
LDCs could bind at a level something like 30% across the board over a maximum five-year period (i.e. to 01.01.2004), with the possibility remaining to agree a limited number of higher tariffs on "exceptional" products.

Agricultural sector
LDCs could aim at 40% across the board. LDCs should not be asked to undertake reduction commitments as regards domestic support and export subsidies. Their commitments in these areas should be inscribed directly in their schedules. Any problems of specific products of LDCs should be addressed in a flexible manner.

Services
LDCs could be asked to make commitments in at least three services sectors. As far as horizontal commitments are concerned, the EC does attach great importance to good commitments in Mode 3 (commercial presence), in particular on foreign capital participation and employment requirements and in Mode 4 (movement of personnel).

Alignment to WTO rules
WTO Members could agree on the automatic applicability of transition periods agreed in the Uruguay Round for LDCs towards full compliance with WTO Agreements. Candidate countries would, however, be expected to provide a work programme for the completion of legislative alignment. 


ANNEX
Table 8

Guideline for Accession of LDCs 

Market Access

  • WTO Members shall exercise restraint in seeking concessions and commitments on 

  • trade in goods and services from acceding LDCs, taking into account the levels of

  • concessions and commitments undertaken by existing WTO LDCs' Members;

  • acceding LDCs shall offer access through reasonable concessions and commitments on trade in goods and services commensurate with their individual development, financial and trade needs, in line with Article XXXVI.8 of GATT 1994, Article 15 of the Agreement on Agriculture, and Articles IV and XIX of the General Agreement on Trade in Services.

WTO Rules

  • Special and Differential Treatment, as set out in the Multilateral Trade Agreements, Ministerial Decisions, and other relevant WTO legal instruments, shall be applicable to all acceding LDCs, from the date of entry into force of their respective Protocols of Accession;

  • transitional periods/transitional arrangements foreseen under specific WTO Agreements, to enable acceding LDCs to effectively implement commitments and obligations, shall be granted in accession negotiations taking into account individual development, financial and trade needs;

  • transitional periods/arrangements shall be accompanied by Action Plans for compliance with WTO rules. The implementation of the Action Plans shall be supported by Technical Assistance and Capacity Building measures for the acceding LDCs'. Upon the request of an acceding LDC, WTO Members may coordinate efforts to guide that LDC through the implementation process;

  • commitments to accede to any of the Plurilateral Trade Agreements or to participate in other optional sectoral market access initiatives shall not be a precondition for accession to the Multilateral Trade Agreements of the WTO. As provided in paragraph 5 of Article IX and paragraph 3 of Article XII of the WTO Agreement, decisions on the Plurilateral Trade Agreements shall be adopted by the Members of, and governed by the provisions in, those Agreements. WTO Members may seek to ascertain acceding LDCs interests in the Plurilateral Trade Agreements.

Process

  • The good offices of the Director-General shall be available to assist acceding LDCs and Chairpersons of the LDCs' Accession Working Parties in implementing this decision;

  • efforts shall continue to be made, in line with information technology means and developments, including in LDCs themselves, to expedite documentation exchange and streamline accession procedures for LDCs to make them more effective and efficient, and less onerous. The Secretariat will assist in this regard. Such efforts will, inter-alia, be based upon the WTO Reference Centres that are already operational in acceding LDCs;

  • WTO Members may adopt additional measures in their bilateral negotiations to streamline and facilitate the process, e.g., by holding bilateral negotiations in the acceding LDC if so requested;

  • upon request, WTO Members may through coordinated, concentrated and targeted technical assistance from an early stage facilitate the accession of an acceding LDC.

Trade-Related Technical Assistance and Capacity Building

  • Targeted and coordinated technical assistance and capacity building, by WTO and other relevant multilateral, regional and bilateral development partners, including inter alia under the Integrated Framework (IF), shall be provided, on a priority basis, to assist acceding LDCs. Assistance shall be accorded with the objective of effectively integrating the acceding LDC into the multilateral trading system;

  • effective and broad-based technical cooperation and capacity building measures shall be provided, on a priority basis, to cover all stages of the accession process, i.e. from the preparation of documentation to the setting up of the legislative infrastructure and enforcement mechanisms, considering the high costs involved and in order to enable the acceding LDC to benefit from and comply with WTO rights and obligations.
      


ANNEX
Table 9

Major Decisions Agreed by Industrialized Countries

Singapore WTO Ministerial Conference, December 1996

Problems of LDCs in being integrated themselves into the international trading system was recognized. Though the issue of LDCs' WTO accession was not raised, the WTO members adopted the Ministerial Declaration (WT/MIN(96)/DEC) which addressed LDCs' problems, as well as the action plan "COMPREHENSIVE AND INTEGRATED WTO PLAN OF ACTION FOR THE LEAST-DEVELOPED COUNTRIES" WT/MIN(96)/14). 

Geneva WTO Ministerial Conference, May 1998

The Ministerial Declaration (WT/MIN(98)/DEC/1) reiterated the pledges made for LDCs' cause. 

Seattle WTO Ministerial Conference, November/December 1999

No Ministerial Declaration was adopted. 

Third United Nations Conference on the LDCs (LDC-III), Brussels, Belgium, May 2001
The United Nations Conference on the LDCs adopted "Declaration" (A/CONF.191/L. 20), which addressed the issue of LDCs' WTO accession as "We believe that increased trade is essential for the growth and development of LDCs. A transparent, non-discriminatory and rules-based multilateral trading system is essential for LDCs to reap the potential benefits of globalisation. The accession of LDCs to the WTO should be encouraged and facilitated. We commit ourselves to seizing the opportunity of the fourth WTO Ministerial meeting in Doha in November 2001, to advance the development dimension of trade, in particular for the development of LDCs.


Doha WTO Ministerial Conference, November 2001
The Ministerial Declaration addressed the issue of LDCs' WTO accession as "We agree to work to facilitate and accelerate negotiations with acceding LDCs. We instruct the Secretariat to reflect the priority we attach to LDCs' accessions in the annual plans for technical assistance. We reaffirm the commitments we undertook at LDC-III, and agree that the WTO should take into account, in designing its work programme for LDCs, the trade-related elements of the Brussels Declaration and Programme of Action, consistent with the WTO's mandate, adopted at LDC-III. 


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