Follow-up to Ministerial declarations and
decisions taken in Favour of least developed countries
Note by the secretariat[1]
Contents
1 INTRODUCTION.. 1
2 High-Level Meeting on
Integrated Initiatives for Least Developed Countries' trade development. 2
3 United Nations
conferences for the Least Developed Countries. 2
4 Major Declarations and
decisions relating to negotiations. 3
5 Major declarations and
decisions relating to regular work. 7
1.1. The WTO Work Programme for the LDCs (hereafter the "Work
Programme"), initially adopted in 2002, and subsequently revised in 2013 (WT/COMTD/LDC/11/Rev.1),
identifies the follow-up to WTO Ministerial Decisions/Declarations as one of
the issues to be taken up in the Sub-Committee on Least Developed Countries (hereafter
the "Sub-Committee"). In particular, the Sub-Committee has been asked
to establish an agenda item entitled: "Follow-up to Ministerial
Decisions/Declarations" where Members would be invited to report on
measures taken in fulfilment of these Decisions and Declarations. In this
respect, the Work Programme specifically refers to measures taken at the 1997 High-Level
Meeting on Integrated Initiatives for Least Developed Countries' Trade
Development, the two UN Conferences on the LDCs, i.e. the Brussels Conference in
2001 and the Istanbul Conference in 2011, as well as WTO Ministerial
Declarations and Decisions.
1.2. At the Seventy-Sixth Session of the Sub-Committee held on 12 October
2015, Members asked the Secretariat to prepare a factual note pursuant to this
item of the Work Programme. This Note responds to that request. It mainly
tracks the major declarations and decisions taken in favour of the LDCs as well
as related follow-up actions at the WTO. The Note does not purport to be
exhaustive; nor does it attempt to make an assessment of the progress made in
the implementation of commitments undertaken by WTO Members in favour of the
LDCs.
1.3. This Note is structured around four sections. Following the Introduction,
Section 2 touches on the High-Level Meeting held in 1997 and related follow-up
activities. Section 3 highlights the developments in relation to the
trade-related elements of the two Programmes of Action for the LDCs adopted at
the UN Conferences in Brussels (2001) and Istanbul (2011) – as far as they
relate to the work and mandate of the WTO. Furthermore, it mentions relevant LDC
issues included in the UN 2030 Agenda for Sustainable Development.
1.4. Sections 4 and 5 provide a chronological account - by theme - of
major WTO declarations and decisions, taken in the context of the Doha negotiations
and the ongoing regular WTO work, respectively. They also refer to follow-up
work and actions taken by Members as well as relevant WTO bodies.
2.1. At the WTO Singapore Ministerial Conference in 1996, Members agreed
to organize a meeting along with other international agencies to foster an
integrated approach for assisting LDCs in enhancing their trading
opportunities. Accordingly, the High-Level Meeting on Integrated Initiatives
for Least Developed Countries' Trade Development was organized jointly by the
WTO and other international organizations on 27-28 October 1997. One of the key
outcomes of this meeting was the launching of the Integrated Framework (IF) as
a collaborative programme to address the specific needs of LDCs. Since then,
the IF has evolved into a flagship capacity-building, multi‑donor programme
supporting LDCs to use trade as a vehicle for economic growth and poverty
reduction.
2.2. The IF transformed into the Enhanced Integrated Framework (EIF) in
2009 – with additional financial resources, stronger national and global
governance structures and greater coordination among all EIF partners. Following
the first phase, Phase Two of the EIF began on 1 January 2016 and will last for
seven years until 2022. The progress in this programme over the past 18 years
is illustrative of the efforts made by the WTO, as well as other stakeholders
in the EIF, to help LDCs mainstream trade into their national development
strategies as well as to build trade capacity through leveraging donor support.
Though the EIF has its own governing bodies, the Executive Secretariat of the
EIF regularly updates the Sub-Committee on all aspects of developments of the
EIF.
2.3. At the High-Level Meeting in 1997, in addition to endorsing the
establishment of the IF, a large number of WTO Members reported on preferential
market access initiatives that they either provided or were contemplating to
provide to imports from LDCs. These reports by Members, which can be consulted
in document WT/LDC/HL/M/1, were in response to the Comprehensive and Integrated
WTO Plan of Action for the Least Developed Countries adopted at the Singapore
Ministerial Conference (WT/MIN(96)/14). The Plan of Action, inter alia, suggested that developed and developing country Members,
on an autonomous basis, would explore possibilities of granting preferential
duty-free access for LDC exports. It may be noted that the spirit and the
momentum on providing preferential market access to LDCs, generated during the 1996
Singapore Ministerial Conference and the 1997 High-Level Meeting, were firmly
embedded in the WTO agenda leading to enhanced market access opportunities for
LDC products (see Section 4).
3.1. Since 1981, the UN has been convening Conferences on LDCs, once a
decade, to garner international support for LDCs to overcome the challenges
faced by them in being able to beneficially integrate into the world economy.
Since the adoption of the Work Programme, two such Conferences have been held.
The Third UN Conference on Least Developed Countries (LDC‑III), held in
Brussels in 2001, adopted the Brussels Programme of Action (BPoA) for the LDCs
for the decade 2001-2010. The Fourth UN Conference on Least Developed Countries
(LDC-IV), held in Istanbul in 2011, adopted the Istanbul Programme of Action (IPoA)
for the LDCs for the decade 2011-2020. These Programmes of Action articulate
policies and measures to be taken by LDCs, as well as their development
partners, for the sustainable development of the LDCs. Apart from UN members, a
broad range of institutions and organizations are expected to contribute to
achieving the goals and objectives set out through these programmes of actions.
3.2. The WTO shares the common goal of beneficially integrating the LDCs
into the multilateral trading system (MTS). In both the BPoA and IPoA, trade
has been identified as one of the priority areas of action for accelerating
economic growth and development in LDCs. Most of the trade‑related elements of these
two Programmes of Action have been an integral part of the Work Programme for
the LDCs. Many issues of the trade agenda that the LDCs follow in the WTO such
as enhanced market access for goods and services, flexibility in the
implementation of WTO Agreements, streamlining of the accession process of LDCs
as well as the development of human and institutional capacity have also been
identified as priorities in both the BPoA and the IPoA. The WTO provided two
substantive reports on the state of implementation on commitments made in the
BPoA by the international community, in particular, those falling within the work
and mandate of the WTO (WT/COMTD/LDC/13 and WT/COMTD/LDC/17).
3.3. The IPoA is the most recent reference for international support in
favour of LDCs. The IPoA identified trade as one of eight priority areas for
action for ensuring LDCs' sustainable economic development. It contains a
number of elements that are priorities in the WTO such as making progress
towards providing duty-free and quota-free (DFQF) market access for LDC
products, including preferential rules of origin, facilitating and accelerating
LDC accessions, implementing effective trade-related technical assistance,
including through the strengthening of capacity in goods and services trade, and
addressing non-tariff measures. There has been incremental progress in all
these areas for the benefit of LDCs and they remain under continuous focus in
the work of the WTO. The WTO continues to report on measures taken in favour of
LDCs supporting the implementation of IPoA.
3.4. In September 2015, the international community adopted the UN 2030
Agenda for Sustainable Development, which recognizes trade as an engine for
inclusive economic growth and poverty reduction, and its contribution to the
promotion of sustainable development. As a means of implementation, trade plays
a key role in achieving the Sustainable Development Goals (SDGs), with Goal 17
specifically calling for a universal, rules-based, open, non-discriminatory and
equitable MTS under the WTO. Regarding LDCs, the SDGs call for increasing Aid
for Trade for LDCs, doubling the LDCs' share of global exports by 2020, implementing
DFQF market access for all LDCs and ensuring transparent and simple
preferential rules of origin. Once again, these issues are being pursued
actively in the WTO.
4.1. The Work Programme for the LDCs was adopted shortly after the Doha
Round of negotiations had been launched, which, inter alia,
committed to address the marginalization of LDCs in international trade and to build
effectively on the commitments made by the international community, including
at the Brussels Conference in 2001. Despite the Doha Round not having been
concluded, a number of key decisions have been taken in favour of LDCs over the
span of the past 15 years. This section provides a brief chronological account
- by theme - of the major declarations and decisions taken in favour of LDCs in
the context of negotiations.
4.2. The pursuit of DFQF market access for LDC products has been a shared
goal of the WTO and UN membership. In the 2001 Doha Ministerial Declaration,
Ministers committed themselves to the objective of providing DFQF market access
to LDC products, as well as to consider taking additional measures for the
progressive improvement in market access for LDCs. A concrete decision on DFQF was
adopted at the Hong Kong Ministerial Conference in 2005, which sets out
substantive provisions as well as a notification procedure for the
implementation of the schemes adopted in this regard (Annex F, WT/MIN(05)/DEC).
At the Bali Ministerial Conference in 2013, Members adopted a decision that provided
further impetus to provide DFQF market access for LDC products (WT/L/919).
4.3. Pursuant to these decisions, significant progress has been made in
providing DFQF market access to LDC products. Both developed and developing
country Members have either introduced or enhanced their DFQF schemes for LDCs
and, in most cases, have also notified these initiatives to the WTO.
4.4. Since the Hong Kong DFQF Decision, the review of steps taken by
Members to provide DFQF market access has been a standing item on the agenda of
the Committee on Trade and Development (CTD). An annual review also takes place
during the last calendar meeting of the CTD every year. The Bali DFQF Decision asks
Members to continue with this review and mandates the Secretariat to aid this
review with a report
on Members' DFQF market access for LDCs at the tariff line level based on their
notifications. So far, two such Secretariat reports have been prepared, which
show that continuous efforts are being made to advance DFQF market access for
LDC products (WT/COMTD/W/206 and WT/COMTD/W/214).
4.5. Progress in preferential market
access for LDCs, including DFQF market access, is also registered in a periodic
Secretariat Note, which is prepared to facilitate the Sub-Committee's annual
review of market access for products originating from
LDCs. The 2015 version of this Note is contained in document WT/COMTD/LDC/W/60.
4.6. It may also be noted that in 2009, the General Council extended a
waiver (first adopted in 1999) allowing developing country Members to provide
preferential tariff treatment to products of LDCs until 30 June 2019 (WT/L/759).
This waiver provides the legal basis for the developing country Members to
offer preferential market access to the LDCs. The DFQF market access schemes
undertaken by developing country Members are notified as per the transparency
mechanism for Preferential Trade Arrangements (PTAs).
4.7. Alongside DFQF market access, during the last decade, concrete
progress has been made with regard to preferential rules of origin associated
with non-reciprocal schemes of Members. As part of the DFQF Decision contained
in Annex F of the 2005 Hong Kong Ministerial Declaration, Members agreed to ensure
that preferential rules of origin applicable to imports from LDCs are
transparent and simple, and contribute to facilitating market access. This was
followed up in the WTO, which subsequently led to the adoption of the first
ever multilateral guidelines on preferential rules of origin at the Bali
Ministerial Conference in 2013 (WT/L/917), with a view to helping LDCs better utilize the
preferences accorded to them. The decision also has
provisions for enhanced transparency, and asks the Committee on Rules of Origin
(CRO) to annually review developments in preferential rules of origin.
4.8. WTO Members have taken another step forward in helping LDCs comply
with preferential rules of origin, by adopting another set of guidelines on preferential
rules of origin at the Nairobi Ministerial Conference, which builds on the Bali
Decision (WT/L/917/Add.1). It has more detailed suggestions for Members as they
consider improvement of preferential rules of origin applicable to imports from
LDCs.
4.9. The Bali and Nairobi Decisions are being followed-up in the CRO. As
per these decisions, regular exchanges are taking place in this Committee.
Annual reviews have also been undertaken. A report of the 2015 annual review to
the General Council is contained in document G/RO/77.
4.10. The most recent Nairobi Decision on preferential rules of origin asks
each developed preference-granting Member, as well as each developing preference-granting
Member in line with the flexibility provided in the Decision, to inform the CRO by 31 December 2016 of the measures being
taken to implement the provisions of the Decision. It also envisages to develop
a template for the notification of preferential rules of origin, to enhance
transparency and promote a better understanding of the rules of origin
applicable to imports from LDCs. Developments in the CRO will continue to be
reported to the General Council.
4.11. Alongside developments to help LDCs improve their merchandise trade,
the last decade has also witnessed important steps forward in the MTS to
improve the participation of LDCs in services trade. In order to ensure
flexibility for the LDCs in the Doha Round negotiations, and for achieving
effective market access of LDCs' services and service suppliers, modalities for
the special treatment for the LDCs were adopted in 2003 (TN/S/13). The modalities,
inter alia, asked Members to develop
appropriate mechanisms with a view to achieving the full implementation of
Article IV:3 of the General Agreement on Trade in Services (GATS) and
facilitating effective access of LDCs' services and service suppliers to
foreign markets.
4.12. In the 2005 Hong Kong Ministerial Declaration, Members, inter alia, agreed to the full and effective implementation
of these modalities, including by developing appropriate mechanisms for
according special priority to LDCs as well as assisting LDCs with targeted
technical assistance (Annex C: Services, WT/MIN(05)/DEC). The Ministerial
Declaration also acknowledged that the LDCs are not expected to undertake new
commitments in the services negotiations.
4.13. Pursuant to the 2003 modalities and the Hong Kong Ministerial
Declaration, Members adopted a decision on the preferential treatment of
services and services suppliers of LDCs at the 2011 Geneva Ministerial Conference
(WT/L/847). The decision, often referred to as the LDC Services Waiver, allows
Members to provide preferential treatment to services and service suppliers
from LDCs. For the first
time, this decision has allowed Members to deviate from their most-favoured nation
(MFN) obligation under the General Agreement on Trade and Services (GATS). The
2011 Decision provided for a 15 year waiver period until December 2026.
4.14. At the 2013 Bali Ministerial Conference, Members adopted a decision concerning
the operationalization of the LDC Services Waiver (WT/L/918). Pursuant to this
decision, a high-level meeting of the Council for Trade in Services (CTS) took
place on 5 February 2015 where a large number of Members indicated specific
sectors and modes in which they would notify preferences to the benefit of LDC
services and service suppliers. Members also agreed that they would endeavour
to notify preferences by 31 July 2015. A report of the high-level meeting can
be consulted in document S/C/M/121.
4.15. It is noteworthy to mention that the high-level meeting created
further momentum to boost LDCs' services trade, and several notifications were
submitted by Members during 2015. By the end of February 2016, 23 Members have
notified preferences for LDCs to the CTS (JOB/GC/90). Actions by Members
pursuant to the LDC Services Waiver are followed-up in the CTS, where the
operationalization of the LDC Services Waiver is a standing item on the agenda
of the CTS.
4.16. At the Nairobi Ministerial Conference in
2015, a Ministerial Decision was adopted for the implementation of preferential
treatment in favour of services and service suppliers of LDCs. The decision,
among others, urges Members which have not yet notified preferences to the CTS
to promptly do so and sets up a review to monitor the operation of the notified
preferences (WT/L/982). With a
view to increasing LDC participation in services trade, the decision also
encourages Members to undertake specific technical assistance and capacity
building to help LDC services suppliers utilize preferences granted. Moreover,
the decision extended the life span of the LDC Services Waiver for an
additional four years until 31 December 2030.
4.17. The issue of cotton received prominence in the course of the Doha
Round negotiations in view of its vital importance to developing countries and
particularly the least developed among them. Cotton assumed a special place through
the 2004 July package, where the General Council agreed that the issue of
cotton would be addressed ambitiously, expeditiously and specifically within
the agriculture negotiations (paragraph 4, Annex A, WT/L/579). A Sub‑Committee
on Cotton was established in November 2004 to deal with all trade-distorting
policies affecting the sector.
4.18. In the 2004 July package, Members also highlighted the
complementarity of the trade- and development-related aspects of cotton. As a
result, the Director-General initiated a Consultative Framework Mechanism on
Cotton (DGCFMC) in 2004 for the mobilization of resources towards the
development of cotton-dependent economies. In November 2005, the Evolving Table
on Cotton (ET) was established to monitor both the specific assistance and
infrastructure-related assistance to the cotton sector. The ET is periodically
updated and the latest version is contained in document WT/CFMC/6/Rev.19. DGCFMC
rounds are held on a biannual basis. By the end of February 2016, 24 DGCFMC rounds
have been held. A compilation of documentation references relating to the
DGCFMC and dates of past rounds can be consulted in document
WT/CFMC/W/24/Rev.19, which is revised on a periodic basis.
4.19. Two specific cotton decisions have been adopted by Members at the
last two Ministerial Conferences. In the cotton decision of the 2013 Bali
Ministerial Conference, Members committed to continued engagement in DGCFMC to
strengthen the cotton sector in LDCs and also to make progress in trade-related
negotiations on cotton (WT/L/916). With a view to enhancing transparency and
monitoring, bi-annual dedicated discussions have been taking place in the context
of the Committee on Agriculture in Special Session, to examine relevant
trade-related developments on market access, domestic support and export
subsidies for cotton, particularly for LDCs' exports. The dedicated discussions
are based on factual information and data compiled by the WTO Secretariat from
Members' notifications with, as appropriate, additional relevant information
provided by Members. In November 2015, the fourth dedicated discussion was held
(TN/AG/SCC/5).
4.20. At the Nairobi Ministerial Conference in 2015, Members adopted a
decision covering provisions with respect to the trade component as well as the
development component of cotton (WT/L/981). The decision, inter alia,
contains provisions relating to DFQF market access, to the furthering of
efforts to reform domestic cotton policies as well as commitments to engage in
the DGCFMC. The trade and development components will continue to be
followed-up in bi-annual dedicated discussions and the DGCFMC, respectively.
4.21. During the course of the Doha Round negotiations, LDCs also received
special attention in the agriculture negotiations. The framework for
establishing negotiating modalities in agriculture adopted as part of the July
Package in 2004 accorded flexibilities to LDCS in relation to the three
negotiating pillars: domestic support, export competition and market access.
For instance, it was stipulated that LDCs would not be required to undertake
reduction commitments (paragraph 45, Annex A, WT/L/579). The framework
modalities for agriculture were intended to develop detailed modalities for
agricultural negotiations under the Doha Round.
4.22. At the Nairobi Ministerial Conference in 2015, Members adopted a
decision on export competition, which includes several specific provisions in favour
of LDCs in the field of export subsidies, export finance and international food
aid (WT/L/980). In particular, paragraph 8 provides LDCs and Net Food-Importing
Developing Countries (NFIDCs) with a transition period until the end of 2030,
as compared to 2023 for other developing country Members, regarding subsidies
for marketing exports of agricultural products and for internal transport and
freight charges on export shipments under the provision of Article 9.4 of the
Agreement on Agriculture. Regarding export finance, paragraph 17 allows LDCs
and NFIDCs to benefit from export credits with longer repayment terms for the
acquisition of basic foodstuffs during the four year phase-in period of the
decision. On international food aid, paragraph 27 allows Members to monetize
international food aid for LDCs and NFIDCs under more flexible conditions than
for other Members.
4.23. Members agreed that the Committee on Agriculture shall monitor the
implementation of this decision. In particular, Members agreed that consistent
with the Bali Ministerial Decision on Export Competition (WT/L/915), Members
shall continue to provide information on export subsidies, export credit,
export credit guarantees or insurance programmes, international food aid and agricultural
exporting state trading enterprises, within the context of an annual
examination process based on the structure contained in the Annex to the
Nairobi Decision.
4.24. Likewise, LDCs received special treatment in the framework modalities
for non-agricultural market access (WT/L/579) which were adopted as part of the
July Package of 2004. The decision, inter alia, stipulates
that LDCs are neither required to apply the tariff reduction formula nor
participate in the sectorial approach, but are expected to substantially
increase their level of binding commitments (paragraph 9, Annex B, WT/L/579).
The decision also calls upon developed country participants and other
participants who so decide, to grant on an autonomous basis, DFQF market access
for non-agricultural products originating from LDCs - which has subsequently
been addressed through separate DFQF Decisions (see Section 4.1). Like the
framework modalities for agriculture, the provisions of Annex B were intended
to develop detailed modalities for NAMA negotiations under the Doha Round.
4.25. While there has been limited progress on the overall work programme
on special and differential treatment (S&D), a number of Agreement-specific
proposals have been adopted for LDCs, including at the Hong Kong Ministerial
Conference. In this regard, the five decisions that formed part of Annex F of
the Hong Kong Ministerial Declaration represented one of the major outcomes of
the S&D negotiations. These five decisions relate to three WTO legal
instruments/Agreement: (i) Understanding in Respect of Waivers of Obligations
under the GATT 1994; (ii) the Agreement on Trade Related Investment Measures;
and (iii) the Decision on Measures in Favour of LDCs. The most significant
decision among those has been the one on DFQF market access for LDCs where
further results have been achieved in subsequent Ministerial Conferences.
4.26. It may be noted that the Decision on Measures in Favour of LDCs
adopted in 1993 during the Uruguay Round has served as an important reference
point for reinforcing special treatment for LDCs with respect to market access,
flexibilities in the implementation of WTO rules and obligations as well as technical
assistance.
4.27. The Monitoring Mechanism on Special and Differential Treatment (MM)
adopted at the Bali Ministerial Conference (WT/L/920) allows Members, including
LDCs, an opportunity to bring in matters that involve any aspect of
implementation of S&D provisions. The MM marked an important step in the
MTS's responsiveness to the concerns of developing country Members. The
efficacy of the Mechanism hinges on the extent to which it is used by these
Members.
4.8 Trade Facilitation
4.28. The Trade Facilitation Agreement (TFA), adopted by Members at the
Bali Ministerial Conference in 2013, recognizes the particular needs of LDCs
and provides greater flexibility to LDCs in the implementation of the Agreement
as compared to other developing country Members (WT/L/931). This high degree of
flexibility for LDCs was also in line with the modalities for negotiations on trade
facilitation adopted by the General Council in 2004 (Annex D, WT/L/579), where
Members agreed that LDCs would only be required to undertake commitments to the
extent consistent with their individual development, financial and trade needs
or their administrative and institutional capabilities.
4.29. The TFA also recognizes the special needs of LDCs to implement their
commitments and the need for targeted assistance and support. The requirement
for support and assistance to implement the commitments resulting from
negotiations was also duly recognized in the modalities for negotiations on trade
facilitation. While a host of organizations offer assistance to developing
countries and LDCs in the area of trade facilitation, in order to support developing
and least developed country Members with the implementation of the TFA, the WTO
launched the TFA Facility (TFAF) in July 2014. The functions of the TFAF
include supporting developing and least developed country Members to identify
their technical assistance needs, providing information on technical assistance
possibilities and helping them find donors, and, in certain circumstances,
providing grants for project preparation or project implementation.
5 Major declarations and
decisions relating to regular work
5.1. Ever since the establishment of the WTO, Members have been
responsive to the specific difficulties of LDCs and have taken decisions to
help LDCs integrate into the MTS in a manner conducive to their situation. For
instance, Members have granted LDCs extensions of transition periods to
implement the TRIPS Agreement following motivated requests from the LDCs.
Special guidelines have been adopted to facilitate the accession of LDCs to the
WTO. Special priority has also been accorded to LDCs to build their human and
institutional capacity for effective negotiations and informed participation in
the MTS. This section seeks to enumerate the major decisions and declarations
taken by Members in the regular work of the WTO, in particular in certain areas
such as TRIPS and Accessions. Developments with regard to technical assistance
and capacity-building support to LDCs are also briefly mentioned.
5.2. The Doha Ministerial Declaration on the TRIPS Agreement and Public
Health, adopted in November 2001, inter alia, exempted
LDCs from providing patent protection (under Sections 5 and 7 of Part II of the
TRIPS Agreement) for pharmaceutical products until 1 January 2016
(WT/MIN(01)/DEC/2). This was given legal effect through a decision of the TRIPS
Council in 2002 (IP/C/25), and a complementary decision of the General Council,
waiving the exclusive marketing rights provisions of Article 70.9 with respect
to pharmaceutical products (WT/L/478). In November 2015, the TRIPS Council
extended this transition period for pharmaceutical products until 1 January
2033 (IP/C/73). A complementary decision of the General Council waived the
obligations to provide for the possibility of filing mailbox applications under
Article 70.8 and to grant exclusive marketing rights under Article 70.9
(WT/L/971).
5.3. The Doha Ministerial Declaration on the TRIPS Agreement and Public
Health also instructed the TRIPS Council to find a solution to the problem of
countries, including LDCs, with insufficient or no manufacturing capacities in
the pharmaceutical sector in making effective use of compulsory licensing. In
2003, a decision by the General Council established a system, which, inter alia, allows LDCs and countries with insufficient
manufacturing capacities to import medicines produced under compulsory
licensing in another country (WT/L/540). The TRIPS Council annually reviews the
functioning of this decision. In December 2005, WTO Members agreed to amend the
TRIPS Agreement to make the 2003 decision permanent (WT/L/641). The amendment
will come into force once two thirds of Members have notified their acceptance.
5.4. In 2001, the Doha Ministerial Decision on Implementation-Related
Issues and Concerns instructed the TRIPS Council to put in place a mechanism
for ensuring the monitoring and full implementation of Article 66.2 of the
TRIPS Agreement, which calls upon developed country Members to provide
incentives for technology transfer to LDCs (WT/MIN(01)/17). In February 2003,
the TRIPS Council adopted a decision on "Implementation of Article 66.2 of
the TRIPS Agreement", which requires developed country Members to submit
annual reports on actions taken or planned in pursuance of their commitments
under Article 66.2 (IP/C/28). Since the adoption of the Decision, the TRIPS
Council has been conducting regular annual reviews, based on reports from developed
country Members.
5.5. Article 66.1 of the TRIPS Agreement originally provided LDCs with an
11-year transition period, allowing them to delay the implementation of the
provisions of the TRIPS Agreement other than those containing the core
non-discrimination principles (Articles 3, 4 and 5). In 2005, the TRIPS Council
extended this general transition period until 1 July 2013 (IP/C/40). As mandated
by the decision, the TRIPS Council received submissions from LDCs on their
individual priority needs for technical and financial cooperation. In 2013, the
TRIPS Council adopted a second extension of this general transition period
until 1 July 2021 (IP/C/64).
5.6. WTO Members have also attached special attention to facilitate and
accelerate the accession of LDCs to the WTO. Accession of LDCs has been
recognized as one of the systemic issues under the Work Programme for the LDCs.
The Sub-Committee regularly monitors the accession of LDCs and also serves as a
forum where acceding LDCs and Members exchange views and share experiences. It
may be noted that the WTO Director-General annually reports on LDC accessions
to the WTO Membership. The 2015 annual report by the Director-General on WTO accessions
is contained in document WT/ACC/25.
5.7. Special measures have been taken to ease the accession of LDCs. Members
adopted a set of Guidelines on LDC Accession in December 2002 (WT/L/508). The
Guidelines seek to simplify and streamline accession procedures with a view to
concluding the negotiations as quickly as possible, and sets out provisions
with respect to: (i) market access; (ii) WTO rules; (iii) the process; and
(iv) TRTA and capacity building.
5.8. At the Geneva Ministerial Conference in 2011, Members instructed the
Sub-Committee to further strengthen, streamline and operationalize the 2002
guidelines (WT/L/846). To this effect, work was carried out in the
Sub-Committee resulting in a set of new guidelines (WT/L/508/Add.1), which
introduced specific flexibilities for acceding LDCs, including by establishing
benchmarks on market access negotiations on goods and services, and by
including provisions relating to transparency in accession, S&D and
transition periods, and technical assistance. The implementation of the LDC
accession guidelines has been periodically reviewed in the Sub‑Committee.
5.9. Since the establishment of the WTO, nine LDCs have successfully
completed the accession process under Article XII of the WTO Agreement,
including Nepal (2004), Cambodia (2004), Vanuatu (2012), Lao PDR (2013) and
Yemen (2014). Cabo Verde (2008) and Samoa (2012) concluded their accession
negotiations as LDCs and graduated from LDC status in 2007 and 2014,
respectively. Afghanistan and Liberia are expected to become WTO Members during
the course of 2016 following their respective domestic ratification processes.
5.10. There are currently six LDCs in the process of acceding to the WTO: Bhutan,
Comoros, Equatorial Guinea, Ethiopia, Sao Tome and Principe, and Sudan. In
addition, Somalia and Timor‑Leste have expressed their interest in application
for WTO membership in April and December 2015, respectively; their
applications will be circulated to Members once documentary requirements are
met.
5.11. In light of specific challenges faced by LDCs, WTO Ministerial
Conferences have repeatedly underlined the importance of technical assistance and
capacity building to support and facilitate their integration into the MTS. At
the first WTO Ministerial Conference in Singapore in 1996, Ministers agreed on
a Plan of Action for LDCs which envisaged closer cooperation between WTO and
other institutions to help LDCs improve their trade capacity. The Doha Ministerial
Declaration reaffirmed the need for targeted technical assistance and capacity-building
programmes for LDCs. In the Hong Kong Ministerial Declaration, Members
reaffirmed their commitment to enhance effective trade-related technical
assistance and capacity building to LDCs on a priority basis. Similar reiteration
was made in the Nairobi Ministerial Declaration so as to help LDCs implement
WTO Agreements as well as benefit from opportunities resulting from the MTS.
All such emphasis by Members has been duly reflected in WTO's Technical
Assistance and Training Plans. LDCs are accorded special priority in the
delivery of WTO's TRTA activities. Every year, on average, LDCs are associated
with more than 40% of TRTA provided by the WTO. Special activities have been
designed for the LDCs. The latest TA Plan can be consulted in document
WT/COMTD/W/211.
5.12. At the Hong Kong Ministerial Conference in 2005, Members also
launched the Aid-for-Trade Initiative with the aim of helping developing
countries, particularly LDCs, to build trade-related infrastructure and
supply-side capacity so that they can implement and benefit from WTO Agreements
and more broadly expand their trade. The Nairobi Ministerial Declaration
recognized the continuous need for this Initiative and asked Members to accord
priority to LDCs' needs. Apart from regular Aid-for-Trade sessions in the WTO, biennial
Global Reviews of Aid for Trade have been organized, which provide a platform
for the trade and development communities to dialogue on Aid for Trade, to
monitor its progress and to evaluate its impact on the ground. The LDCs have
been a primary focus of these discussions. An overview of recent Aid-for-Trade
flows to LDCs can be found in the OECD/WTO publication "Aid for Trade at a
Glance 2015". The WTO has also been collaborating with other institutions
and initiatives to help LDCs build trade capacity. While the EIF is considered
as an Aid-for-Trade partnership in action for the LDCs, facilities such as the Standards
and Trade Development Facility (STDF) and the TFAF also attach special priority
to the LDCs.
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[1] This document has been prepared under the Secretariat's own
responsibility and is without prejudice to the positions of Members or to their
rights and obligations under the WTO.