PDF to HTML - Convert PDF files to HTML files

Europaudvalget 2003-04
EUU Alm.del Bilag 1110
Offentligt

PDF udgave (265 KB)

Medlemmerne af Folketingets Europaudvalg

og deres stedfortrædere

Bilag

Journalnummer

Kontor

400.C.2-0

EUK

19. juli 2004

Til underretning for Folketingets Europaudvalg vedlægges udkast til beslutning på mødet i

WTO's Generelle Råd ultimo juli 2004 om et arbejdsprogram for Doha-Runden, tillige med

følgeskrivelse fra formanden for WTO's Generelle Råd og WTO's generaldirektør,

WTO-dok. nr. JOB(04)/96 af 16. juli 2004.

PDF to HTML - Convert PDF files to HTML files

JOB(04)/96

16 July 2004

In line with the procedure set out at the Informal Heads of Delegation meetings on 8 June

and 1 July 2004, the attached draft text is being presented by the Chairman of the General Council

and the Director-General for Members' consideration, with the following observations.

This draft text draws on and incorporates much excellent work done by the Chairs of the

negotiating bodies and other WTO bodies. However, it does not pretend to represent agreement

except in those instances (Annex C on Services and the TNC's recommendations concerning the

DSU negotiations) where this is indicated. Members are well aware that considerable differences of

view persist in a number of important areas.

The Chairman of the NAMA negotiating group, for example, has explained clearly in his

letter of 9 July (circulated to all Members) the serious divergences in positions which led him to

conclude that the only practicable option was to forward the so-called Derbez Annex B to us, not as

an agreed text but as a platform for the further negotiation which will obviously be necessary. He

has highlighted in his letter the aspects of this text which he judges would require further work.

The attached text is a first draft, whose purpose is to provide a basis for further negotiation

among Members. It will no doubt evolve before it is considered by the General Council for

adoption at its meeting commencing on 27 July, and this evolution will be the focus of the intensive

consultations we shall be carrying out over the very limited time remaining before the Council

meets.

It is also useful to remind ourselves what purpose this text is intended to serve. As has been

repeated many times in meetings over the past few months, our task is not to prepare a Ministerial

Declaration as we were doing for Cancún. Instead, we are aiming to take the action necessary at this

stage, at the level of the General Council, in order to ensure the continued progress of the

negotiations and the work programme as a whole.

Like the outline presented on 8 June, the present draft focuses particularly on a number of

areas which emerged in the discussions after Cancún as important concerns for Members and as key

elements in further progress. As has been stressed repeatedly, this focus in no way lessens the

importance of other aspects of the negotiations or the work programme as a whole. This text starts

and ends by reaffirming the commitment of the membership to the Doha mandates in their entirety.

We urge Members to approach this draft text in a constructive spirit and with respect for the

positions of others. We still have some way to go before reaching consensus on the text overall, but

with hard work and good will this should be possible. We will continue to work with you all to

facilitate agreement in the short time ahead of us.

_______________

PDF to HTML - Convert PDF files to HTML files

Doha Work Programme

Draft General Council Decision of [...] July 2004

The General Council reaffirms the Ministerial Declarations and Decisions adopted at Doha

and the full commitment of all Members to give effect to them. The Council emphasizes Members'

resolve to complete the Doha Work Programme fully and to conclude successfully the negotiations

launched at Doha. Taking into account the Ministerial Statement adopted at Cancún on 14

September 2003, and the statements by the Council Chairman and the Director-General at the

Council meeting of 15-16 December 2003, the Council takes note of the report by the Chairman of

the Trade Negotiations Committee (TNC) and agrees to take action as follows:

a. Agriculture: the General Council adopts the framework set out in Annex A to this

document.

b. Cotton: the General Council reaffirms the importance of the Sectoral Initiative on Cotton

and takes note of the parameters set out in Annex A within which the trade-related aspects of

this issue will be pursued in the agriculture negotiations. The General Council also attaches

importance to the development aspects of the Cotton Initiative and wishes to stress the

complementarity between the trade and development aspects. The Council takes note of the

recent Workshop on Cotton in Cotonou on 23-24 March 2004 organized by the WTO

Secretariat, and other bilateral and multilateral efforts to make progress on the development

assistance aspects and instructs the Secretariat to continue to work with the development

community and to provide the Council with periodic reports on relevant developments.

c. Non-agricultural

Market Access: the

General Council adopts the framework set out in

Annex B to this document.

d. Development: development concerns form an integral part of the Doha Ministerial

Declaration. The General Council rededicates and recommits Members to fulfilling the

development dimension of the Doha Development Agenda, which places the needs and

interests of developing and least-developed countries at the heart of the Doha Work

Programme. The Council reiterates the important role that enhanced market access, balanced

rules, and well targeted, sustainably financed technical assistance and capacity building

programmes can play in the economic development of these countries.

In the Doha negotiations, all developing countries shall benefit from the general provisions of

special and differential (S&D) treatment. In addition, the contribution of developing countries

to market access reduction commitments in the non-agricultural market access and agriculture

negotiations should take account of their levels of development in particular sectors, as well as

their food security, rural development and livelihood concerns and recognize their prior

unilateral liberalisation, in terms of criteria to be agreed in the ongoing negotiations. The

specific concerns of preference dependent, commodity dependent countries and net

food-importing developing countries shall be appropriately addressed, in the context of

multilateral liberalization commitments undertaken in the Doha Round. In addition, the

concerns of small, vulnerable developing economies shall be taken into account, without

creating a sub-category of Members.

PDF to HTML - Convert PDF files to HTML files

The Council reaffirms that recalls Ministers' decision in Doha an review all S&D the WTO

Agreements. The Council provisions for S&D treatment are to integral part of treatment

provisions with a view to strengthening them and making them more precise, effective and

operational. The Council recognizes the progress that has been made so far. The Council

instructs the Committee on Trade and Development in Special Session to expeditiously

complete the review of all the outstanding Agreement-specific proposals and report to the

General Council, with clear recommendations for a decision, by [...]. The Council further

instructs the Committee, within the parameters of the Doha mandate, to address all other

outstanding work, including on the cross-cutting issues, the monitoring mechanism and the

incorporation of S&D treatment into the architecture of WTO rules, as referred to in

TN/CTD/7 and report, as appropriate, to the General Council.

The Council also instructs all WTO bodies to which proposals in Category II have been referred

to expeditiously complete the consideration of these proposals and report to the General

Council, with clear recommendations for a decision, as soon as possible and no later than [...].

In doing so these bodies will ensure that, as far as possible, their meetings do not overlap so as

to enable full and effective participation of developing countries in these discussions.

The Council recognizes the progress that has been made since the Doha Ministerial Conference

in expanding Trade-Related Technical Assistance (TRTA) to developing countries. In

furthering this effort the Council affirms that developing countries, and in particular

least-developed countries, should be provided with enhanced TRTA and capacity building, to

increase their effective participation in the negotiations, to facilitate their implementation of

WTO rules, and to enable them to adjust and diversify their economies. In this context the

Council welcomes and further encourages the improved coordination with other agencies,

including under the Integrated Framework for TRTA for the LDCs (IF) and the Joint

Integrated Technical Assistance Programme (JITAP).

Concerning implementation-related issues, the Council reaffirms the mandates Ministers gave in

paragraph 12 of the Doha Ministerial Declaration and the Doha Decision on

Implementation-Related Issues and Concerns, and renews Members' determination to find

appropriate solutions to outstanding issues. The Council instructs the TNC, negotiating bodies

and other WTO bodies concerned to redouble their efforts to find appropriate solutions as a

priority, and requests the Director-General to continue the consultations he has undertaken on

certain issues, including issues related to the extension of the protection of geographical

indications provided for in Article 23 of the TRIPS Agreement to products other than wines

and spirits. The Council shall review progress and take any appropriate action no later than [...].

e. Other

negotiating bodies: the

General Council takes note of the reports to the TNC by

the Special Sessions of the Council for Trade in Services, the TRIPS Council, the Dispute

Settlement Body and the Committee on Trade and Environment and by the Negotiating Group

on Rules.

The Council reaffirms Members' commitment to progress in all of these areas of the

negotiations in line with the Doha mandates.

The Council adopts the recommendations agreed by the Special Session of the Council for

Trade in Services, set out in Annex C to this document, on the basis of which further progress

in the services negotiations will be pursued.

The Council also adopts the TNC's recommendation that work in the Special Session of the

Dispute Settlement Body should continue on the basis set out by the Chairman of that body in

his report to the TNC.

f. Trade

Facilitation: taking

note of the work done on trade facilitation by the Council for

PDF to HTML - Convert PDF files to HTML files

Tradecarried outunder the mandate in paragraph 27CouncilDoha Ministerial Declaration and the

work in Goods under the auspices of the General of the both prior to the Fifth Ministerial

Conference and after its conclusion, the General Council decides to commence negotiations on

the basis of the modalities set out in Annex D to this document.

Relationship between Trade and Investment, Interaction between Trade and

Competition Policy and Transparency in Government Procurement:

the Council agrees

that these issues, mentioned in the Doha Ministerial Declaration in paragraphs 20-22, 23-25 and

26 respectively, will not form part of the Work Programme set out in that Declaration and

therefore no work towards negotiations on any of these issues will take place within the WTO

during the Doha Round.

g. Other

elements of the Work Programme: the

General Council reaffirms the high priority

Ministers at Doha gave to those elements of the Work Programme which do not involve

negotiations. Noting that a number of these issues are of particular interest to

developing-country Members, the Council emphasizes its commitment to fulfil the mandates

given by Ministers in all these areas. To this end, the General Council and other relevant bodies

shall report in line with their Doha mandates to the Sixth Session of the Ministerial Conference.

The moratoria covered by paragraph 11.1 of the Doha Ministerial Decision on

Implementation-related Issues and Concerns and paragraph 34 of the Doha Ministerial

Declaration are extended up to the Sixth Ministerial Conference.

PDF to HTML - Convert PDF files to HTML files

The General Council calls on all Members to redouble their efforts towards the conclusion

of a balanced overall outcome of the Doha Development Agenda in fulfilment of the commitments

Ministers took at Doha.

_______________

Annex A

Framework for Establishing Modalities in Agriculture

The starting point for the current phase of the agriculture negotiations has been

the mandate set out in Paragraph 13 of the Doha Ministerial Declaration. This in turn

built on the long-term objective of the Agreement on Agriculture to establish a fair and

market-oriented trading system through a programme of fundamental reform. The

elements below offer the additional precision required at this stage of the negotiations

and thus the basis for the negotiations of full modalities in the next phase. The level of

ambition set by the Doha mandate will continue to be the essential point of reference.

The final balance will be found only at the conclusion of these subsequent

negotiations and within the Single Undertaking. To achieve this balance, the modalities

to be developed will need to incorporate operationally effective and meaningful

provisions for special and differential treatment for developing countries. Agriculture is

of critical importance to the economic development of developing countries and they

must be able to pursue agricultural policies that are supportive of their development

goals, poverty reduction strategies, food security and livelihood concerns. Non-trade

PDF to HTML - Convert PDF files to HTML files

concerns, as referred to in Paragraph 13 of the Doha Declaration, will be taken into

account.

The reforms in all three pillars form an interconnected whole and must be

approached in a balanced and equitable manner. These reforms will result in substantial

and effective cuts in protection and trade-distorting support, though reductions will be

from commitment levels. Members with higher levels of protection and trade distorting

support will make greater cuts.

Cotton continues to be a vital issue for a number of Members. It will be

addressed ambitiously and expeditiously as an integral part of the agriculture

negotiations. The provisions of this Framework provide a basis for this approach:

In the domestic support pillar there is provision for substantial and effective

reductions in Members’ product-specific support, which will be capped in the

first instance.

In the market access pillar, there is provision for substantial improvement in

market access for each tariff line.

In the export competition pillar, there is provision for the elimination of export

subsidies and elimination of trade distorting elements of other export

competition instruments.

Coherence between trade and development aspects of the cotton issue will be

pursued as set out in paragraph 1.b of the text to which this Framework is annexed.

JOB(04)/96

Page 7

DOMESTIC SUPPORT

The Doha Ministerial Declaration calls for ‘substantial reductions in trade

distorting domestic support’. With a view to achieving these substantial reductions, the

negotiations in this pillar will ensure the following:

Special and differential treatment remains an integral component of domestic

support. Modalities to be developed will include longer implementation periods

and lower reduction coefficients for all types of trade-distorting support and

continued access to the provisions under Article 6.2.

There will be a strong element of harmonisation in the reductions made by

developed countries. Specifically, higher levels of allowed support, in either

absolute or relative terms, will be subject to deeper cuts.

Each such Member will make a substantial and effective reduction in the

overall level of its trade distorting support.

As well as this overall commitment, each individual element of trade distorting

domestic support will be subject to reductions from allowed levels (and, in the

case of the Blue Box, reduction to a level to be agreed) in order to ensure

results that are coherent with the long-term reform objective. Any clarification

or development of rules and conditions to govern trade distorting support will

PDF to HTML - Convert PDF files to HTML files

take this into account.

Overall Reduction: A Tiered Formula

The sum of all trade distorting support, as measured by the Final Bound Total

AMS plus allowed

de minimis

and a level to be determined for Blue Box payments, will

be reduced according to a tiered formula. Under this formula, Members having higher

levels of trade distorting support will make greater overall reductions in order to

achieve a harmonising result.

The following parameters will guide the further negotiation of this tiered

formula:

This commitment will apply as a minimum overall commitment. It will not be

applied as a ceiling on reductions of overall trade distorting support, should the

separate and complementary formulae to be developed for Total AMS, de

minimis

and Blue Box payments imply, when taken together, a deeper cut in

overall trade distorting support for an individual Member.

The base for measuring the Blue Box component will be the higher of existing

Blue Box payments during a recent representative period to be agreed and the

JOB(04)/96

Page 8

cap to be established under paragraph14 below.

Final Bound Total AMS: A Tiered Formula

To achieve reductions with a harmonising effect:

Final Bound Total AMS will be reduced substantially, using a tiered approach.

Members having higher Total AMS, in either absolute or relative terms, will

make greater reductions.

To prevent circumvention of the objective of the Agreement through transfers

of unchanged domestic support between different support categories,

product-specific AMSs will be capped at their respective average levels during a

historical basis to be agreed.

Some of these product-specific caps will then be reduced.

10.

Members may make greater than formula reductions in order to achieve the

required level of cut in overall trade distorting support.

De Minimis

11.

De minimis

will be reduced by a percentage to be agreed.

12.

Members may make greater than formula reductions in order to achieve the

required level of cut in overall trade distorting support.

PDF to HTML - Convert PDF files to HTML files

Blue Box

13.

Members recognise the role of the Blue Box in promoting agricultural reform.

In this light, Article 6.5 of the Agreement will be modified so that Members may have

recourse to the following measures:

Direct payments under production-limiting programmes if:

1. such payments are based on fixed and unchanging areas and yields; or

2. such payments are made on 85% or less of a fixed and unchanging base

level of production; or

3. livestock payments are made on a fixed and unchanging number of

head.

JOB(04)/96

Page 9

Direct payments unrelated to current production if:

4. such payments are based on fixed and unchanging areas and yields; and

5. such payments are made on 85% of less of a fixed and unchanging

base level of production; and

6. no production is required in order to receive such payments.

14.

By the end of the implementation period to be agreed, Blue Box support will

not exceed an agreed percentage of the average total value of agricultural production

during a historical period. Both the percentage and the historical period will be

established in the negotiations. In cases where a Member has placed an exceptionally

large percentage of its trade distorting support in the Blue Box, some flexibility will be

provided to ensure that a Member concerned, in reducing Blue Box support towards

such an agreed cap, is not called upon to make a wholly disproportionate cut.

15.

The above criteria will be further reviewed to ensure that Blue Box payments

remain less trade distorting than AMS measures, it being understood that:

Any new criteria would need to take account of the balance of WTO rights and

obligations.

Members which have recently used the Blue Box as an essential reform tool

will need to be sure that such a review would not have the perverse effect of

undoing their reforms.

Green Box

16.

Green Box criteria will be reviewed with a view to ensuring that Green Box

measures have no, or at most minimal, trade-distorting effects or effects on

production. Such a review will need to ensure that the basic concepts, principles and

effectiveness of the Green Box remain and take due account of non-trade concerns.

The improved obligations for monitoring and surveillance of all new disciplines

foreshadowed in paragraph 50 below will be particularly important with respect to the

PDF to HTML - Convert PDF files to HTML files

Green Box.

COMPETITION

EXPORT

17.

The Doha Ministerial Declaration calls for ‘reduction of, with a view to phasing

out, all forms of export subsidies’. As an outcome of the negotiations, Members agree

to commitments ensuring the parallel elimination of all forms of export subsidies and

disciplines on all export measures with equivalent effect by a credible end date.

End Point

18.

The following will be eliminated by the end date to be agreed:

Export subsidies as scheduled.

JOB(04)/96

Page 10

The trade distorting element of export credits and export credit guarantees by

reducing the repayment period to commercial terms (180 days) and by

establishing disciplines to be agreed using as a reference Attachment 5 to

Annex 1 of the TN/AG/10.

Trade distorting practices with respect to export sales of STEs including, inter

alia, direct and indirect subsidies and the underwriting of losses. Effective

procedures to ensure the transparency of STEs will be established. The issue of

the future use of monopoly powers will be subject to further negotiation.

Provision of food aid that is not in conformity with operationally effective

disciplines to be agreed. The objective of such disciplines will be to ensure that

food aid is not used as a mechanism for surplus disposal and to prevent

commercial displacement.

Implementation

19.

Without prejudice to existing WTO rights and obligations, commitments and

disciplines in paragraph 18 will be implemented according to a schedule and modalities

to be agreed. Reduction commitments will be implemented by progressive annual

instalments. Their phasing will take into account the need for some coherence with

internal reform steps of Members.

20.

The negotiation of the elements in paragraph 18 and their implementation will

ensure equivalent and parallel commitments by Members.

Special and Differential Treatment

21.

Developing countries will benefit from longer implementation periods for the

phasing out of all forms of export subsidies.

22.

Until such time as the phasing out all forms of export subsidies and

implementation of all disciplines identified above are completed, developing countries

will continue to benefit from the special and differential treatment provisions of Article

9.4 of the Agreement on Agriculture.

23.

Participants will ensure that the disciplines on export credits to be agreed will

PDF to HTML - Convert PDF files to HTML files

make appropriate provision for differential treatment in favour of least-developed and

net food-importing developing countries as provided for in paragraph 4 of the

Decision on Measures Concerning the Possible Negative Effects of the Reform

Program on Least-Developed and Net Food-Importing Developing Countries.

Special Circumstances

JOB(04)/96

Page 11

24.

In exceptional circumstances, ad hoc temporary financing arrangements that do

not have the effect of undermining commitments in export competition may be agreed

by Members based on criteria and consultation procedures to be established.

MARKET ACCESS

25.

The Doha Ministerial Declaration calls for “substantial improvements in

market access”. Members also agreed that special and differential treatment for

developing Members would be an integral part of all elements in the negotiations.

The Single Approach: a Tiered Formula

26.

To ensure that a single approach for developed and developing countries can

take account of their different tariff structures, tariff reductions will be made through a

tiered formula.

27.

To ensure that such a formula will lead to substantial overall trade expansion,

the following principles will guide its further negotiation:

Tariff reductions will be made from bound rates. Achievement of substantial

and effective overall tariff reductions will be a benchmark in evaluating the final

result from negotiations.

All Members (other than LDCs) will make a contribution. Special and

differential provisions will be an integral part of all elements.

Progressivity in tariff reductions will be achieved through deeper cuts in higher

tariffs with flexibilities for sensitive products. Substantial improvements in

market access will be achieved for all products.

28.

The number of bands, the thresholds for defining the bands and the type of

tariff reduction in each band remain under negotiation. The role of a tariff cap in a

tiered formula with distinct treatment for sensitive products requires further evaluation.

Sensitive Products

29.

Developed and developing country Member sensitivities in agriculture are, like

their tariff structures, fundamentally different. It is also particularly difficult to develop

PDF to HTML - Convert PDF files to HTML files

a fair contribution from developing countries on their sensitive products until it

becomes clearer what contribution is likely to be forthcoming from developed

countries.

JOB(04)/96

Page 12

30.

The way in which developing country sensitivities can best be accommodated is

thus a matter for the post-Framework stage. The key elements for that negotiation are

set out in paragraphs 39-45.

31.

By contrast, because of the inter-linkages between the three pillars and the

particular responsibilities of developed countries in the domestic support and export

competition pillars, it is necessary at this stage to put some shape around the core

approach for dealing with sensitive products, which is necessarily driven by the tariff

structures and instruments used by developed countries.

Selection

32.

Tariff lines which currently incorporate out-of-quota tariff rates will be

considered a very close approximation of the maximum permissible number of tariff

lines for sensitive products.

Treatment

33.

The principle of ‘substantial improvement’ will apply to each tariff line.

34.

‘Substantial improvement’ will be achieved through combinations of tariff

quota commitments and tariff reductions applying to each tariff line. However,

balance in this negotiation will be found only if the final negotiated result also reflects

the sensitivity of the product concerned.

35.

Some element of MFN-based tariff quota expansion will be required for each

tariff quota line. A base for such an expansion will be established, taking account of

coherent and equitable criteria to be developed in the negotiations. A minimum cut in

the out-of-quota-tariff rate will be established.

Other Elements

36.

Other elements that will give the flexibility required to reach a final balanced

result include reduction or elimination of in-quota tariff rates and improvements in

tariff quota administration for existing tariff quotas.

37.

Tariff escalation will be addressed through a formula to be agreed.

38.

The question of the special agricultural safeguard (SSG) remains under

negotiation.

Special and differential treatment

39.

Having regard to their rural development, food security and/or livelihood

security needs, special and differential treatment for developing countries will be an

PDF to HTML - Convert PDF files to HTML files

JOB(04)/96

Page 13

integral part of all elements of the negotiation.

40.

Proportionality will be achieved by requiring lesser tariff reduction

commitments from developing countries in each band of the tiered approach.

41.

Reflecting the considerations in paragraphs 29-31, a basis for the selection and

the treatment for sensitive products in the case of developing countries will be

established in the negotiations. There is a need for coherence here concerning the

matter of Special Products, the conditions for the Special Safeguard Mechanism (SSM)

and the selection and treatment of sensitive products.

42.

Taking into account the need of developing countries to effectively address

their food security, livelihood security and rural development needs,

developing-country Members will have the flexibility to designate, under conditions to

be agreed in the negotiations, a certain number of tariff lines as Special Products (SP).

There will be no requirement to expand tariff rate quotas on SP products.

43.

A Special Safeguard Mechanism (SSM) will be established for use by developing

Members under conditions to be agreed.

44.

Full implementation of the long-standing commitment to achieve the fullest

liberalisation of trade in tropical agricultural products and for products of particular

importance to the diversification of production from the growing of illicit narcotic

crops is overdue and will be addressed effectively in the market access negotiations.

45.

The importance of long-standing preferences is fully recognised. The issue of

preference erosion will be addressed under conditions to be agreed. For the further

consideration in this regard, paragraph 16 and other relevant provisions of Annex 1 of

TN/AG/10 be used as a reference.

LEAST- DEVELOPED COUNTRIES

46.

Least-Developed Countries, which will have full access to all special and

differential treatment provisions above, are not required to undertake reduction

commitments.

47.

Work on cotton under all three pillars will reflect the vital importance of this

sector to certain LDC Members.

48.

The issue of duty-free and quota-free access for LDCs remains under

consideration.

RECENTLY ACCEDED MEMBERS

49.

The particular concerns of recently acceded Members will be addressed under

PDF to HTML - Convert PDF files to HTML files

JOB(04)/96

Page 14

conditions to be agreed.

MONITORING AND SURVEILLANCE

50.

Article 18 of the Agreement on Agriculture will be amended with a view to

enhancing monitoring so as to effectively ensure full transparency, including through

timely and complete notifications with respect to the commitments in market access,

domestic support and export competition. The particular concerns of developing

countries in this regard will be addressed.

OTHER ISSUES

51.

Issues to be addressed remain sectoral initiatives, differential export taxes, GIs.

JOB(04)/96

Page 15

PDF to HTML - Convert PDF files to HTML files

Annex B

Framework for Establishing Modalities in

Market Access for Non-Agricultural Products

We reaffirm that negotiations on market access for non-agricultural products

shall aim to reduce or as appropriate eliminate tariffs, including the reduction or

elimination of tariff peaks, high tariffs, and tariff escalation, as well as non-tariff

barriers, in particular on products of export interest to developing countries. We also

reaffirm the importance of special and differential treatment and less than full

reciprocity in reduction commitments as integral parts of the modalities.

We acknowledge the substantial work undertaken by the Negotiating Group on

Market Access and the progress towards achieving an agreement on negotiating

modalities. We take note of the constructive dialogue on the Chair's Draft Elements of

Modalities (TN/MA/W/35/Rev.1) and confirm our intention to use this document as

a reference for the future work of the Negotiating Group. We instruct the Negotiating

Group to continue its work, as mandated by paragraph 16 of the Doha Ministerial

Declaration with its corresponding references to the relevant provisions of Article

XXVIII

bis

of GATT 1994 and to the provisions cited in paragraph 50 of the Doha

Ministerial Declaration, on the basis set out below.

We recognize that a formula approach is key to reducing tariffs, and reducing

or eliminating tariff peaks, high tariffs, and tariff escalation. We agree that the

Negotiating Group should continue its work on a non-linear formula applied on a

line-by-line basis which shall take fully into account the special needs and interests of

developing and least-developed country participants, including through less than full

reciprocity in reduction commitments.

We further agree on the following elements regarding the formula:

product coverage shall be comprehensive without

a priori

exclusions;

tariff reductions or elimination shall commence from the bound rates

after full implementation of current concessions; however, for

unbound tariff lines, the basis for commencing the tariff reductions

shall be [two] times the MFN applied rate in the base year;

the base year for MFN applied tariff rates shall be 2001 (applicable rates

on 14 November);

credit shall be given for autonomous liberalization by developing

countries provided that the tariff lines were bound on an MFN basis in

the WTO since the conclusion of the Uruguay Round;

all non-ad

valorem

duties shall be converted to

ad valorem

equivalents on

the basis of a methodology to be determined and bound in

ad valorem

terms;

JOB(04)/96

Page 16

negotiations shall commence on the basis of the HS96 or HS2002

PDF to HTML - Convert PDF files to HTML files

nomenclature, with the results of the negotiations to be finalized in

HS2002 nomenclature;

the reference period for import data shall be 1999-2001.

We furthermore agree that, as an exception, participants with a binding

coverage of non-agricultural tariff lines of less than [35] percent would be exempt from

making tariff reductions through the formula. Instead, we expect them to bind [100]

percent of non-agricultural tariff lines at an average level that does not exceed the

overall average of bound tariffs for all developing countries after full implementation

of current concessions.

We recognize that a sectorial tariff component, aiming at elimination or

harmonization is another key element to achieving the objectives of paragraph 16 of

the Doha Ministerial Declaration with regard to the reduction or elimination of tariffs,

in particular on products of export interest to developing countries. We recognize that

participation by all participants will be important to that effect. We therefore instruct

the Negotiating Group to pursue its discussions on such a component, with a view to

defining product coverage, participation, and adequate provisions of flexibility for

developing-country participants.

We agree that developing-country participants shall have longer

implementation periods for tariff reductions. In addition, they shall be given the

following flexibility:

a) applying less than formula cuts to up to [10] percent of the tariff lines

provided that the cuts are no less than half the formula cuts and that these

tariff lines do not exceed [10] percent of the total value of a Member's imports;

b) keeping, as an exception, tariff lines unbound, or not applying formula cuts

for up to [5] percent of tariff lines provided they do not exceed [5] percent of

the total value of a Member's imports.

We furthermore agree that this flexibility could not be used to exclude entire HS

Chapters.

We agree that least-developed country participants shall not be required to

apply the formula nor participate in the sectorial approach, however, as part of their

contribution to this round of negotiations, they are expected to substantially increase

their level of binding commitments.

Furthermore, in recognition of the need to enhance the integration of

least-developed countries into the multilateral trading system and support the

diversification of their production and export base, we call upon developed-country

participants and other participants who so decide, to grant on an autonomous basis

JOB(04)/96

Page 17

duty-free and quota-free market access for non-agricultural products originating from

least-developed countries by the year […].

10.

We recognize that newly acceded Members shall have recourse to special

provisions for tariff reductions in order to take into account their extensive market

PDF to HTML - Convert PDF files to HTML files

access commitments undertaken as part of their accession and that staged tariff

reductions are still being implemented in many cases. We instruct the Negotiating

Group to further elaborate on such provisions.

11.

We agree that pending agreement on core modalities for tariffs, the possibilities

of supplementary modalities such as zero-for-zero sector elimination, sectorial

harmonization, and request & offer, should be kept open.

12.

In addition, we ask developed-country participants and other participants who

so decide to consider the elimination of low duties.

13.

We recognize that NTBs are an integral and equally important part of these

negotiations and instruct participants to intensify their work on NTBs. In particular,

we encourage all participants to make notifications on NTBs by 31 October 2003 and

to proceed with identification, examination, categorization, and ultimately negotiations

on NTBs. We take note that the modalities for addressing NTBs in these negotiations

could include request/offer, horizontal, or vertical approaches; and should fully take

into account the principle of special and differential treatment for developing and

least-developed country participants.

14.

We recognize that appropriate studies and capacity building measures shall be

an integral part of the modalities to be agreed. We also recognize the work that has

already been undertaken in these areas and ask participants to continue to identify such

issues to improve participation in the negotiations.

15.

We recognize the challenges that may be faced by non-reciprocal preference

beneficiary Members and those Members that are at present highly dependent on tariff

revenue as a result of these negotiations on non-agricultural products. We instruct the

Negotiating Group to take into consideration, in the course of its work, the particular

needs that may arise for the Members concerned.

16.

We furthermore encourage the Negotiating Group to work closely with the

Committee on Trade and Environment in Special Session with a view to addressing the

issue of non-agricultural environmental goods covered in paragraph 31 (iii) of the

Doha Ministerial Declaration.

JOB(04)/96

Page 18

Annex C

Recommendations of the Special Session of the Council for Trade in Services

(a)

Members who have not yet submitted their initial offers must do so as soon as

possible.

(b)

A date for the submission of a round of revised offers should be established as

soon as feasible.

PDF to HTML - Convert PDF files to HTML files

(c)

With a view to providing effective market access to all Members and in order

to ensure a substantive outcome, Members shall strive to ensure a high quality

of offers, particularly in sectors and modes of supply of export interest to

developing countries, with special attention to be given to least-developed

countries.

Members shall aim to achieve progressively higher levels of liberalization with

no a priori exclusion of any service sector or mode of supply and shall give

special attention to sectors and modes of supply of export interest to

developing countries. Members note the interest of developing countries, as

well as other Members, in Mode 4.

Members must intensify their efforts to conclude the negotiations on

rule-making under GATS Articles VI:4, X, XIII and XV in accordance with

their respective mandates and deadlines.

Targeted technical assistance should be provided with a view to enabling

developing countries to participate effectively in the negotiations.

For the purpose of the Sixth Ministerial meeting, the Special Session of the

Council for Trade in Services shall review progress in these negotiations and

provide a full report to the Trade Negotiations Committee, including possible

recommendations.

(d)

(e)

(f)

(g)

JOB(04)/96

Page 19

Annex D

Modalities for Negotiations on Trade Facilitation

Negotiations shall aim, by clarifying and improving relevant aspects of Articles

V, VIII and X of the GATT 1994, at the establishment of an agreement to further

expedite the movement, release and clearance of goods, including goods in transit.

Negotiations shall also aim at enhancing technical assistance and support for capacity

building in this area.

In developing new disciplines, the extent and the timing of entering into

commitments shall be related to the implementation capacities of developing and

least-developed Members. It is further agreed that those Members should not be

PDF to HTML - Convert PDF files to HTML files

obliged to undertake investments in major infrastructure projects beyond their means.

As an integral part of the negotiations, Members shall discuss and consider

relevant costs related to any proposed measures.

The negotiations shall also take fully into account the principle of special and

differential treatment for developing and least-developed countries. Members

recognize that this principle may extend beyond the granting of traditional transition

periods for implementing commitments.

Recognizing the needs of developing and least-developed countries for

enhanced technical assistance and capacity building in this area, Members commit

themselves to adequately ensure such support and assistance both during the

negotiations and after their conclusion. Members further reaffirm their commitment to

intensify their current assistance activities outside the framework of WTO negotiations

on trade facilitation. It is recognized that the provision of technical assistance and

support for capacity building is vital for developing and least-developed countries to

enable them to fully participate in and benefit from the negotiations.

In order to make technical assistance and capacity building more effective and

operational and to ensure better coherence, a collaborative effort shall be undertaken

with other international organizations, including the IMF, OECD, UNCTAD, WCO

and the World Bank, in this regard. Due account shall be taken of the relevant work by

other international organizations in this area.

Paragraphs 45-51 of the Doha Ministerial Declaration shall apply to these

negotiations. At its first meeting after the July session of the General Council, the

Trade Negotiations Committee shall establish a Negotiating Group on Trade

Facilitation and appoint its Chair. The first meeting of the Negotiating Group shall

agree on a work plan and schedule of meetings.

__________

JOB(04)/96

Page 20

Contained in the following documents: Special Session of the Council for Trade in

Services - TN/S/16; Special Session of the Council for TRIPS - TN/IP/10; Special Session

of the Dispute Settlement Body - TN/DS/10; Special Session of the Committee on Trade

and Environment - TN/TE/9; Negotiating Group on Rules - TN/RL/9.

This attachment sets out draft disciplines for further consideration with respect to export

credits.

For ease of reference, this Annex is what used to be referred to as the "Revised First Draft

of Modalities".

PDF to HTML - Convert PDF files to HTML files