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Article XIX:3 of the WTO’s General Agreement on Trade in Services (GATS) requires the establishment of modalities for the special treatment for LDCs in the negotiations on trade in services. These modalities were established in September 2003 (TN/S/13). Annex C of the Hong Kong Ministerial Declaration of December 2005 (WT/MIN(05)/DEC) also provided guidance in this regard and called upon Members to establish appropriate mechanisms to give effect to the modalities.

This waiver, which will last for 15 years from the date of adoption, releases developing and developed-country Members from their legal obligation to provide non-discriminatory treatment to all trading partners (GATS Article II: Most-Favoured-Nation Treatment), so as to give them legal cover when they give preferential treatment to LDCs.