|
|
Need help on downloading? |
Use the links below to download audio files or to listen to what he said in the meeting.
The February 2008 NAMA modalities text made simple Whereas the July 2007 text was a Chair's proposal
for compromise between member's positions, in search for a balance between
competing interests, this text moves towards a “members' text”, reflecting
the actual state of play on the various issues and widening the scope for
final negotiation. The Chair notes that the “architecture” — or parameters —
for modalities is almost agreed and he considers this “real progress” since
July 2007. Formula Tariff reductions for industrial products would be
made using a “simple Swiss” formula with two coefficients, one for developed
and another for developing country members. A Swiss formula produces deeper
cuts on higher tariffs. A higher coefficient, as envisaged for developing
members, means lower reductions in tariffs.
However, the Chair notes in his text that members’
positions on the ranges of coefficients and differentials between them
differ widely. For example, while some would like a differential of 5
between the developed and developing country coefficient, others would like
25. Flexibilities for developing members applying the formula In order to allow them to protect tariffs on their most sensitive products, the draft modalities foresee that developing members applying the formula may choose between the following three options:
In his latest paper, the Chair did not provide numbers (it will be recalled that they were 10 and 5 in the first and second options, respectively) in these provisions because he wished to open the possibility for members to negotiate flexibilities tailor-made to their needs, taking into account the differences in tariff structures among developing members. In so doing, he has provided more options for a negotiation. The issue of flexibilities is now linked more explicitly to the choice of coefficients. In other words, in this version of the modalities, the Chair opens the possibility for flexibilities to be negotiated in connection with the coefficient: “if the figure applied to the flexibility goes down, the one for the coefficient can go up, and vice versa”, as he put it in his press conference. Unbound tariffs Since the base rate for the application of the formula is the bound rate, members with unbound rates can add a mark-up of 20 or 30 percentage points. This mark-up would be added to their applied rate in effect on 14 November 2001 and would form the basis for the formula cuts. Recently acceded members (RAMs) Albania, Armenia, the Kyrgyz Republic and Moldova will not be required to apply tariff reductions in this Round. The Former Yugoslav Republic of Macedonia, Saudi Arabia and Viet Nam would be excused from further market access commitments in recognition of their extensive commitments during their accession negotiations. RAMs such as China, Chinese Taipei, Oman and Croatia subject to the formula would have a grace period of two to three years on those lines on which accession commitments are still being implemented, before commencing their Doha cuts. In addition, they would have an extended implementation period on all lines of two to five years to phase in their Doha commitments. The remaining RAMs qualify as small, vulnerable economies (SVEs) and may apply the modality envisaged for such members. Modalities for other developing members (around 75) Least-developed countries (LDCs) are exempt from tariff reductions; there are special provisions for SVEs and for developing countries with low levels of binding. As a result, relatively weaker developing economies will retain higher average tariffs and greater flexibility on how they structure their tariff schedules. But they will nevertheless contribute to the market access outcome, significantly reducing “the water” (the difference between bound rates and those actually applied) and binding a high number of their tariffs. There are also proposed solutions for members with preferential access to developed country markets who would see their preferences erode because of the overall tariff reductions. As well, there are provisions for other developing members who would be impacted by such a solution. Sectors for deeper tariff reduction or elimination The Chair's text also notes that some members have been engaged in negotiations which would envisage undertaking deeper tariff reductions in some industrial sectors. Through such agreements, tariffs might be reduced to zero in some developed countries, and in some cases with smaller reductions in participating developing countries as “special and differential treatment”. These negotiations are voluntary, and would require a “critical mass” of countries joining the initiative for it to take off. There are 13 sectors currently under negotiation: Automotive and related parts; Bicycles and related parts; Chemicals; Electronics/Electrical products; Fish and Fish products; Forestry products; Gems and Jewellery products; Raw materials; Sports equipment; Healthcare, pharmaceutical and medical devices; Hand tools; Toys; Textiles, clothing and footwear. Non-tariff barriers (NTBs) NTBs, restrictive measures unrelated to customs tariffs that governments take (such as technical, sanitary and other grounds), are also part of the negotiation. Proposed legal texts have been submitted on some of these measures, and are compiled in the Chair's text. The Chair noted that a decision on whether these proposals move forward to a text-based negotiation would need to be taken at the time of final modalities.
|
> Problems viewing this page?
|
contact us : World Trade Organization, rue de Lausanne 154, CH-1211 Geneva 21, Switzerland