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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
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
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
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.
Draft General Council Decision of [...] July 2004
1. 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
(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
The Council reaffirms that provisions for S&D treatment are an
integral part of the WTO Agreements. The Council recalls Ministers'
decision in Doha to review all S&D 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
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
(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 (1). 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 Trade in Goods under the mandate
in paragraph 27 of the Doha Ministerial Declaration and the work
carried out under the auspices of the General Council 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.
2. 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.
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Framework for Establishing Modalities in
1. 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.
2. 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
concerns, as referred to in Paragraph 13 of the Doha Declaration, will
be taken into account.
3. 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.
4. 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.
5. 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.
6. 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
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 take this into
Overall Reduction: A Tiered Formula
7. 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.
8. 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 cap to be established under paragraph14 below.
Final Bound Total AMS: A Tiered Formula
9. To achieve reductions with a harmonising effect:
Final Bound Total AMS will be reduced substantially, using a tiered
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
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
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
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.
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 Green Box.
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.
18. The following will be eliminated by the end date to be
Export subsidies as scheduled.
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 (2).
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.
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
Special and Differential Treatment
21. Developing countries will benefit from longer
implementation periods for the phasing out of all forms of export
21. 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 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
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.
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
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
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.
29. Developed and developing country Member sensitivities in
agriculture are, like their tariff structures, fundamentally
different. It is also particularly difficult to develop a fair
contribution from developing countries on their sensitive products
until it becomes clearer what contribution is likely to be forthcoming
from developed countries.
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.
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.
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.
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
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 integral part of all elements of
40. Proportionality will be achieved by requiring lesser tariff
reduction commitments from developing countries in each band of the
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
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
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 (3).
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 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.
51. Issues to be addressed remain sectoral initiatives,
differential export taxes, GIs.
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Framework for Establishing Modalities in Market Access for
1. 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.
2. 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.
3. 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.
4. We further agree on the following elements regarding the
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
negotiations shall commence on the basis of the HS96 or HS2002
nomenclature, with the results of the negotiations to be finalized in
the reference period for import data shall be 1999-2001.
5. We furthermore agree that, as an exception, participants
with a binding coverage of non-agricultural tariff lines of less than
 percent would be exempt from making tariff reductions through the
formula. Instead, we expect them to bind  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.
6. 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
7. 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  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  percent of the total
value of a Member's imports; or
b) keeping, as an exception, tariff lines unbound, or not applying
formula cuts for up to  percent of tariff lines provided they do
not exceed  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.
8. 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.
9. 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 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 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
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
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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.
(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.
(d) 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.
(e) 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.
(f) Targeted technical assistance should be provided with a
view to enabling developing countries to participate effectively in
(g) 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.
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Modalities for Negotiations on Trade
1. 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.
2. 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 obliged to undertake
investments in major infrastructure projects beyond their means.
3. As an integral part of the negotiations, Members shall
discuss and consider relevant costs related to any proposed measures.
4. 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
5. 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.
6. 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.
7. 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.
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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.
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This attachment sets out draft disciplines for further consideration
with respect to export credits.
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For ease of reference, this Annex is what used to be referred to as
the “Revised First Draft of Modalities".
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