WORLD TRADE
ORGANIZATIONTN/CTD/W/1
14 May 2002
(02-2629)
Committee on Trade and Development
Special SessionOriginal:  English
SPECIAL AND DIFFERENTIAL TREATMENT PROVISIONS
Joint Communication from Cuba, Dominican Republic, Honduras,
India, Indonesia, Kenya, Pakistan, Sri Lanka, Tanzania and Zimbabwe
The following communication has been received from the above delegation on 7 May 2002.
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Through this submission, the delegations of Cuba, Dominican Republic, Honduras, India,
Indonesia, Kenya, Pakistan, Sri Lanka, Tanzania and Zimbabwe submit an additional proposal formaking special and differential treatment (S&D) provisions in the Subsidies and Countervailing
Measures (SCM) Agreement, more precise, effective and operational and thus strengthening it.  This
contribution may be seen as aimed at facilitating the deliberations in the Committee on Trade and
Development Special Session.  Co-sponsors of this submission reserve the right to modify or amend
this proposal in future.
THE AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES
Article 27.1
Full text of the provision
Members recognize that subsidies may play an important role in economic development
programmes of developing country Members.
Issue
This provision lays down the basis for special and differential treatment for developing
countries.  However, the value of this recognition has been considerably diluted by using the word
"may".  There is a need for unambiguous recognition of the role played by subsidies in developmental
policies.
Proposal
It is proposed to delete the word "may" from the text.  The provision, if amended, would read
as follows:
"Members recognize that subsidies play an important role in economic development programmes of
developing country Members".
The above change would give full effect to this S&D provision.
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