Special and Differential Treatment

Research Paper 92, March 2019

Notification and Transparency Issues in the WTO and the US’ November 2018 Communication

By Aileen Kwa and Peter Lunenborg

Various WTO Members submitted a Communication to the WTO in November 2018 which, if accepted, would affect the implementation of Members’ transparency and notification obligations at the WTO. It would strengthen the already burdensome notification obligations and introduce new punitive administrative measures should obligations not be complied with. This paper provides information about WTO Members’ current notification obligations and their level of compliance; looks at the history of discussions on notifications, particularly in the Working Group on Notification Obligations and Procedures which took place in  1995 – 1996; and provides an analysis of the Communication. The analysis focuses on the extent to which the elements are consistent with or go beyond the current WTO disciplines. It concludes that non-compliance with notification obligations is real. However, rather than expanding obligations and introducing punitive measures, constructive and effective solutions should be based on nuancing of obligations in the context of a Special and Differential Treatment approach and through the use of incentives. It also acknowledges that countries with a chronic lack of capacities will continue to struggle with the WTO’s complex notification obligations and requirements until they attain higher levels of development and, thus, improved institutional capacities.

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Policy Brief 58, March 2019

Why the US Proposals on Development will Affect all Developing Countries and Undermine WTO

By Aileen Kwa and Peter Lunenborg

US submitted two highly problematic proposals to the WTO in January and February 2019, undermining the place of Special and Differential Treatment (S&D) for developing countries at the WTO. In the first paper (WT/GC/757), US criticises the practice of self-declared development status by developing countries arguing that the North-South construct no longer makes sense due to “great development strides”. The second paper (WT/GC/764) – a proposed Decision for the General Council – provides a way to operationalise what was in the first paper. It gave criteria that would exclude 34 Members or 53.6 percent of global population from S&D treatment in “current and future WTO negotiations”. This fundamentally changes S&D from an unconditional right for all developing countries to a concession that may or may not be provided. Even for those developing countries that are not part of the 34 excluded Members, the US notes that in sector-specific negotiations, other Members could also be “ineligible for special and differential treatment.” This paper critiques the US approach on Special and Differential Treatment and concludes that these papers by the US cannot be the basis for any further discussions. All developing countries must be able to decide the pace of their adjustment to trade rules.

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SC Working Lunch, February 2019

Title:               US proposal on Special and Differential Treatment (WT/GC/W/764)

Date:               Tuesday, 19th February, 2019, 13:00 – 15:00 

Venue:            South Centre, Geneva

Organizers:   The South Centre 

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SC Working Lunch, February 2019

Title:               Working Lunch Meeting on US’ proposal on ‘AN UNDIFFERENTIATED WTO’

Date:               Monday, 11th February, 2019, 13:00 – 15:00 

Venue:            South Centre, Geneva

Organizers:   The South Centre

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Analysis of the US Proposal (WT/GC/W/764), 25 February 2019

WHY THE US PROPOSAL (WT/GC/W/764) WILL AFFECT ALL DEVELOPING COUNTRIES AND UNDERMINE THE MULTILATERAL SYSTEM

US’ recent submissions to the WTO attempt to fundamentally change the concept of Special and Differential Treatment (S&D) at the WTO from an unconditional right for all developing countries to conditioned concessions available to only a few. This will affect developing countries and undermine the multilateral trading system!

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Analytical Note, January 2017

The WTO’s Agriculture Domestic Supports Negotiations

The historical problems in agriculture continue today. Developed countries with the financial capacity continue to subsidise their farmers and export these agricultural products. This has also been enabled by the Uruguay Round through large AMS entitlements for mostly developed countries ($19 billion for US and now about $95 billion for EU27), as well as the Green Box (Annex 2 of the Agreement on Agriculture). (more…)

Analytical Note, November 2013

WTO’s MC9: Summary of Issues

10 documents were distributed to WTO Members on 26 November 2013 at the last General Council meeting before the Bali Ministerial Conference (MC9).  These documents are being transmitted to Bali. (more…)

Analytical Note, November 2013

WTO’s MC9:  Analysis of the Food Security ‘Peace Clause’ Text

The Peace Clause is time-limited (4 years) and partial in coverage (no inclusion of the WTO’s Agreement on Subsidies and Countervailing Measures- ASCM). Countries can still be taken to dispute. It also has onerous and intrusive transparency and information requirements and conditions. (more…)

Analytical Note, November 2013

WTO’s MC9: Analysis of the Text on the Monitoring Mechanism

The text on the Monitoring Mechanism (JOB/TNC/34) which has been transmitted from Geneva to the Bali Ministerial is extremely disappointing. (more…)

Report on WTO Negotiations on Trade Facilitation, November 2013

WTO Negotiations on Trade Facilitation: Development Perspectives

A possible new trade facilitation agreement has occupied the most time in the preparations for the WTO’s Ministerial Conference in Bali in December.  A new experts report is being issued by the South Centre on “WTO’s Trade Facilitation Negotiations:  Development Perspectives”.  (more…)

Bulletin Article on A WTO Treaty on Trade Facilitation, October 2013

A WTO Treaty on Trade Facilitation? Regulatory, Institutional, Legislative, and Cost Challenges for Developing Countries

The WTO members are negotiating a possible trade facilitation agreement, which could be a potential outcome in the WTO’s Bali Ministerial in December. However, the developing countries face many challenges in such a treaty and have asked for special and differential treatment as well as finance to meet the costs of new obligations. (more…)

Informal Note on Trade Facilitation Negotiations, September 2013

Brief on Trade Facilitation Negotiations

An agreement on trade facilitation is being propped as a viable outcome from the World Trade Organization (WTO) 9th Ministerial Conference, to be held in Bali at the end of 2013. WTO Members formally agreed to launch negotiations on trade facilitation in 2004 pursuant to the July 2004 Framework Package (referred to as the post-Cancun decision) . (more…)

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