|
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
-
Professional services
-
legal services\
-
accounting, auditing and bookkeeping services
-
taxation services
-
architectural services
-
engineering services
-
integrated engineering services
-
urban planning and landscape architectural services
-
medical and dental services
-
veterinary services
-
services provided by midwives, nurses, physiotherapists, paramedical personnel
-
other
-
Computer and related services
-
consultancy services related to the installation of computer hardware
-
software implementation services
-
data processing services
-
other
-
Research and development services
-
R&D services on natural sciences
-
R&D services on social sciences and humanities
-
interdisciplinary R&D services
-
Real estate services
-
involving own or leased property
-
on a fee or contract basis
-
Rental/leasing services without operators
-
relating to ships
-
relating to aircraft
-
relating to other transport equipment
-
relating to other machinery and equipment
-
e.other
-
Other business services
-
advertising services
-
market research and public opinion polling services
-
management consulting services
-
services related to management consulting
-
technical testing and analysis
services
-
services incidental to agriculture, hunting and forestry
-
services incidental to fishing
-
services incidental to mining
-
services incidental to manufacturing
-
services incidental to energy distribution
-
placement and supply services of personnel
-
investigation and security
-
related scientific and technical consulting services
-
maintenance and repair of equipment
-
building-cleaning services
-
photographic services
-
packaging services
-
printing, publishing
-
convention services
-
other
2. COMMUNICATION SERVICES
-
Postal services
-
Courier services
-
Telecommunication services
-
voice telephone services
-
packet-switched data transmission services
-
circuit-switched data transmission services
-
telex services
-
telegraph services
-
facsimile services
-
private lease circuit services
-
electronic mail
-
voice mail
-
on-line information and data base retrieval
-
electronic data interchange
-
enhanced/value-added facsimile services
-
code and protocol conversion
-
on-line information and/or data processing
-
other
-
Audiovisual services
-
motion picture and video tape production and distribution services
-
motion picture projection service
-
radio and television services
-
radio and television transmission services
-
sound reording
-
other
-
Other
3. CONSTRUCTION AND RELATED ENGINEERING SERVICES
-
General construction work for buildings
-
General construction work for civil engineering
-
Installation and assembly work
-
Building completion and finishing work
-
Other
4. DISTRIBUTION SERVICES
-
Commission agents' services
-
Wholesale trade services
-
Retailing services
-
Franchising
-
Other
5. EDUCATIONAL SERVICES
-
Primary education services
-
Secondary education services
-
Higher education services
-
Adult education
-
Other education services
6. ENVIRONMENTAL SERVICES\
-
Sewage services
-
Refuse disposal services
-
Sanitation and similar services
-
Other
7. FINANCIAL SERVICES
-
A. All insurance and insurance-related services
-
life, accident and health insurance services
-
non-life insurance services
-
reinsurance and retrocession
-
services auxiliary to insurance
-
B. Banking and other financial services (excluding insurance)
-
acceptance of deposits and other repayable funds from the public
-
lending of all types
-
financial leasing
-
all payment and money transmission services
-
guarantees and commitments
-
trading for own account or for account of customers
-
participation in issues of all kinds of securities
-
money broking
-
asset management
-
settlement and clearing services
-
advisory and other auxiliary financial services
-
provision and transfer of financial information, financial data processing and related software services
-
C. Other
8. HEALTH RELATED AND SOCIAL SERVICES
-
Hospital services
-
Other human health services
-
Social services
-
Other
9. TOURISM AND TRAVEL RELATED SERVICES
-
Hotels and restaurants (including catering)
-
Travel agencies and tour-operators services
-
Tourist guide services
-
Other
10. RECREATIONAL, CULTURAL AND SPORTING SERVICES
-
Entertainment services (including theatre, live bands and circus services)
-
News agency services
-
Libraries, archives, museums and other cultural services
-
Sporting and other recreational services
-
Other
11. TRANSPORT SERVICES
-
Maritime transport services
-
passenger transportation
-
freight transportation
-
rental
-
maintenance and repair
-
pushing and towing services
-
supporting services
-
Internal waterways transport
-
to f. same as above
-
Air transport services
-
to f. same as above
-
Space transport
-
Rail transport services
-
to f. same as C
-
Road transport services
-
a. to d. same as above
-
supporting services
-
Pipeline transport
-
transportation of fuels
-
transportation of other goods
-
Services auxiliary to all modes of transport
-
cargo-handling services
-
storage and warehouse services
-
freight
transport agency services
-
other
-
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.
|