Special and differential treatment in the area of trade facilitation

Special and differential treatment in the area of trade facilitation

Published Jan 2006

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How special and differential treatment for trade facilitation may be shaped by the cost implications of future agreements

The objective of this study is to offer reflections on how special and differential treatment (SDT) for trade facilitation may be shaped by the cost implications of measures included in future WTO trade agreements. It is argued that different countries face different situations and capacities, highlighting the relative complexity of implementation of the different measures.

Given the high benefit potential of trade facilitation measures, the paper argues that SDT provisions should aim to incorporate countries gradually to a common system of rights and obligations, reflecting their specific capacities, limitations or needs in given areas covered by the agreement. A proper assessment of each country’s individual needs and priorities would allow a more clearly articulated relationship between the extent of commitments, the lengths of transitional periods for assuming commitments, and the provision of technical assistance to help meet those commitments in cases where the necessary capacity is not available.

The paper argues that the need to safeguard coherence of agreed trade facilitation measures and to ensure that links and sequencing between measures are properly taken into account, may call for trade facilitation commitments by all members. The implementation however should correspond to countries capacities that are available or generated with the support of technical assistance.Considering the relative complexity of implementation, the analysis points to four broad categories of measures:

  • measures that can or should be implemented immediately by all countries
  • measures that would have financial or other resource implications and which may call for technical assistance in order to be introduced
  • measures that, although not necessarily costly, would need time, because of the complexity of their implementation
  • measures that would require resources to be introduced and the implementation of which would also have to be spread over time.

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