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Document Approved by the FTAA Trade Negotiations Committee

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FTAA.TNC/27
November 21, 2003

Original: English

REPORT OF THE TRADE NEGOTIATIONS COMMITTEE ON THE RESULTS OF THE PROGRESS ACHIEVED IN RELATION TO THE TREATMENT OF DIFFERENCES IN THE LEVELS OF DEVELOPMENT AND SIZE OF ECONOMIES IN EACH OF THE NEGOTIATING GROUPS

Pursuant to paragraph 17 of the Quito Declaration, the Trade Negotiations Committee (TNC) is to ensure that all the Negotiating Groups, in particular those undertaking market access negotiations, translate the guidelines and directives for the treatment of the differences in the levels of development and size of economies into specific measures so that they are reflected in the results of the negotiations. Furthermore, it instructs the TNC, with the support of the Consultative Group on Smaller Economies (CGSE) and the Tripartite Committee, to report at the Miami Ministerial on the results of the progress achieved in relation to the treatment of differences in the levels of development and size of economies in each of the Negotiating Groups.

The following is the Report of the Trade Negotiations Committee on the results of the progress achieved in relation to the treatment of the differences in the levels of development and size of economies in each of the Negotiating Groups. This report is based on the draft texts of the chapters of the FTAA Agreement.

The TNC wishes to make the following observations:

  • The Guidelines or Directives for the Treatment of the Differences in the Levels of Development and Size of Economies, contained in document FTAA.TNC/18, are being considered by the Negotiating Groups differently with regard to scope and content in the draft texts, including the market access negotiations.

  • All of the texts remain bracketed.

    • Different terminology is used throughout the draft texts to refer to the beneficiaries of the treatment that will be accorded when considering the differences in the levels of development and size of economies.

  • In some cases, the treatment of the differences in the levels of development and size of economies is addressed in general recommendations, while in others, it is addressed in specific articles throughout the text.

  • Cooperation and technical assistance are proposed as a modality for the treatment of the differences in the levels of development and size of economies.

    • Some draft texts have mentioned financial assistance needs that differ in scope and content so as to fulfill their commitments.

    Paragraph 17 of the Quito Ministerial Declaration places emphasis on the negotiating groups undertaking market access negotiations to translate the guidelines on the treatment of the differences in the levels of development and size of economies into specific measures. Further, document FTAA.TNC/20.Rev. 1 establishes “Differences in the levels of development and size of economies shall be taken into account in the development of proposals, offers and throughout the negotiation process in accordance, inter alia, with the guidelines and directives established by the TNC at its Ninth Meeting held in Nicaragua in September 2001 and reflected in document FTAA.TNC/18” as one of the general principles of the methods and modalities for market access negotiations for agricultural and non-agricultural goods, services, investment and government procurement.

    Some delegations have indicated their intention to take into account differences in the levels of development and size of economies through the market access component of the negotiations. Indeed, some countries have presented differentiated initial market offers in some Negotiating Groups. The following indicates the extent to which two countries have taken into account differences in the levels of development and size of economies in the initial phase of the market access negotiations:

    Two countries have taken into account differences in the levels of development and size of economies in their market access offers by (1) putting forward differentiated offers with more rapid elimination of their import duties for relatively less-developed countries, and (2) being willing to consider offers from relatively less-developed countries that place a higher proportion of their products in the longer tariff phase-out periods.
     

     
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