Non Agricultural Market Access (NAMA) 1
Doha Mandate Article 16. We agree to negotiations which shall aim, by modalities, to be agreed, 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. 2
Doha Mandate contd. The negotiations 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..to this end, the modalities to be agreed will include appropriate studies and capacity building measures to assist least developed countries to participate effectively in the negotiations. 3
Doha Mandate: Special & Differential Treatment Article 50. The negotiations and the other aspects of the Work Programme shall take fully into account the principle of special and differential treatment for developing and leastdeveloped countries embodied in: Part IV of the GATT 1994; 4
Doha Mandate: Trade & Environment Article 31. With a view to enhancing the mutual supportiveness of trade and environment, we agree to negotiations, without prejudging their outcome, on: (iii) the reduction or, as appropriate, elimination of tariff and non-tariff barriers to environmental goods and services. 5
NAMA: Unfinished Business Import Tariffs Reduction or elimination of Tariff Tariff peaks, High Tariffs and Escalation Improving binding ratios Implementation period Non Tariff Barriers Export Restrictions 6
Less than full reciprocity First five GATT rounds developing countries participated as equal partners. Kennedy Round: principle of non-reciprocity Tokyo Round: Non-reciprocity broadened to special & differential treatment. Uruguay Round high trade concessions by developing countries. 7
Structure Negotiations on market access in Negotiating Group on Market Access Negotiation on trade and environment in Special Sessions of the Committee on Trade and Environment (CTESS) 8
Mandated Deadline 31 March 2003, common understanding on possible outline for negotiating modalities 31 May 2003, reach agreements on modalities 1 January 2005, negotiations are to conclude as part of single undertaking agreed in Doha 9
Concerns of developing countries Loss of major government revenue Potential weakening of their competitiveness vis-à-vis other developing countries Disproportionately benefit developed countries (due to current production structure) 10
Chairman s Draft Across-the-board liberalisation formula Sectoral Approach Special & Differential Treatment Reduction in Non Tariff Barriers August, 2003 11
Tariff reduction formula Swiss formula for tariff reduction Z=AX / A+X Gerard formula for tariff reduction Z=BYX / BY+X where, Z=Final duty, X=Base rate, A=14/16 B=Coefficient, Y=Average base rate 12
Girard formula Formula requires greater reductions on tariffs higher than country s overall average rate &lower reduction on tariffs below average rate. Non linear formula based on Swiss proposal Credit for autonomous liberalisation 13
Concession under NAMA Participants with binding coverage less than 35% would be exempted applying the formula, but would be required to bind 100% of non agricultural tariff lines at an average level that did not exceed the overall average of bound tariffs countries. 14
Sectoral approach Three phase sectoral elimination modality to eliminate & bind all tariffs on products of particular export interest to developing countries Electronic & electric goods, fish & fish products, footwear, leather goods, motor vehicle parts & components, stones, gems& precious metals, textile & clothing 15
Phases of sectoral liberalisation Phase I. Developed countries eliminate tariffs in these sectors. Other members not more than 10%. Phase II. Developing countries maintained Phase III. Tariff elimination by developing countries. 16
Special & Differential Treatment Longer periods for tariff reductions Duty & quota free access for nonagricultural goods Developing countries allowed to keep only 5% tariff lines unbound provided they do not exceed 5% of total import value. 17
July Draft Elements for work on modalities by group Non-linear formula applied: line-by-line basis comprehensive coverage tariff reduction from bound rates base year for MFN 2001 credit for autonomous liberalisation non ad valorem duties converted 18
July Draft & Developing countries Applying less than formula cuts up to 10% of tariff lines Tariff lines unbound, or not applying formula cuts up to 5% LDC not required to apply formula Duty-free, quota-free market access for nonagricultural products from LDC 19
New members We recognize that newly acceded Members shall have recourse to special provisions for tariff reductions in order to take into account their extensive market access commitments undertaken as part of their accession and that staged tariff reductions are still being implemented in many cases. 20
Current negotiations & developing countries G-20 negotiation on market access only after developed countries concession on agriculture, i.e. Subsidy. Discussion on actual tariff reduction formulae at Ministerial level. India, Brazil, China working on modified Girard formula. 21
Thank you 22