Development+Pillar

In 1996 when trade facilitation was proposed for inclusion in the WTO agenda, many developing countries were skeptical of the development benefits of new WTO rules in this area. It was clear that for many of the developing countries compliance with these rules would necessitate investments in equipment, infrastructure and training, as well as lengthy reform processes. Most developing countries do not have the resources to undertake the necessary reforms and may require additional time and resources to build implementation capacity. There was concern that the adaptation and implementation costs would outweigh the economic benefits of multilateral trade facilitation rules, and that developing country members would therefore not implement the rules. To address these concerns, members agreed to discuss the implementation challenges and needs of developing countries as a stand-alone aspect of the negotiations. These discussions are now referred to as the development pillar of the negotiations on trade facilitation at the WTO. =Framing the Development Issue= Annex D, the modalities text for the negotiations that members agreed to in late July 2004, frames the discussion of implementation challenges and development needs. In Annex D, WTO members recognized the implementation concerns of least developed countries (LCDs). It stipulates that LDCs do not need to undertake investments in infrastructure and that they should only take up commitments //"to the extent consistent with their individual development, financial and trade needs or their administrative and institutional capabilities."// It furthermore, reiterates the principle of special and differential treatment (S&DT) for developing countries with regard to application of the agreement. More important for many developing country delegations, is the fact that it contains an engagement to provide support and assistance for developing countries to help them build the implementation capacity necessary for compliance with the commitments. =Proposals and Discussions Made in the Negotiations= Discussions on the development pillar take place at the same time as discussion of the proposals for the technical pillar. Under the development pillar, members discuss how best to design the S&DT and TACB provisions of a future agreement. Specifically, members discuss an institutional monitoring mechanism, special and differential treatment for developing and, in particular, least developed countries, and the conditions and obligations to provide technical assistance and capacity building in support of implementation of the new obligations in the field of trade facilitation.

Read the next topic: Impact and outlook to end the chapter with a discussion of what has been the impact of the negotiations