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draft, 16 July 2004
draft, 30 July 2004
2 August 2004
Decision Adopted by the General Council on 1 August 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 follows:
Agriculture: the General Council adopts the framework set out
in Annex A to this document.
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.
Members should work on related issues of development multilaterally
with the international financial institutions, continue their
bilateral programmes, and all developed countries are urged to
participate. In this regard, the General Council instructs the
Director General to consult with the relevant international
organizations, including the Bretton Woods Institutions, the Food and
Agriculture Organization and the International Trade Centre to direct
effectively existing programmes and any additional resources towards
development of the economies where cotton has vital importance.
Non-agricultural Market Access: the General Council adopts the
framework set out in Annex B to this document.
Principles: 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.
Special and Differential Treatment: the General Council
reaffirms that provisions for special and differential (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 July
2005. 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
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 July 2005. 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
Technical Assistance: the General Council recognizes the
progress that has been made since the Doha Ministerial Conference in
expanding Trade-Related Technical Assistance (TRTA) to developing
countries and low-income countries in transition. In furthering this
effort the Council affirms that such 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
Implementation: concerning implementation-related issues, the
General 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 Trade Negotiations Committee, negotiating bodies
and other WTO bodies concerned to redouble their efforts to find
appropriate solutions as a priority. Without prejudice to the
positions of Members, the Council requests the Director-General to
continue with his consultative process on all outstanding
implementation issues under paragraph 12(b) of the Doha Ministerial
Declaration, including on 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, if need
be by appointing Chairpersons of concerned WTO bodies as his Friends
and/or by holding dedicated consultations. The Director-General shall
report to the TNC and the General Council no later than May 2005. The
Council shall review progress and take any appropriate action no later
than July 2005.
Other Development Issues: in the ongoing market access
negotiations, recognising the fundamental principles of the WTO and
relevant provisions of GATT 1994, special attention shall be given to
the specific trade and development related needs and concerns of
developing countries, including capacity constraints. These particular
concerns of developing countries, including relating to food security,
rural development, livelihood, preferences, commodities and net food
imports, as well as prior unilateral liberalisation, should be taken
into consideration, as appropriate, in the course of the Agriculture
and NAMA negotiations. The trade-related issues identified for the
fuller integration of small, vulnerable economies into the
multilateral trading system, should also be addressed, without
creating a sub-category of Members, as part of a work programme, as
mandated in paragraph 35 of the Doha Ministerial Declaration.
Least-Developed Countries: the General Council reaffirms the
commitments made at Doha concerning least-developed countries and
renews its determination to fulfil these commitments. Members will
continue to take due account of the concerns of least-developed
countries in the negotiations. The Council confirms that nothing in
this Decision shall detract in any way from the special provisions
agreed by Members in respect of these countries.
Services: the General Council takes note of the report to the
TNC by the Special Session of the Council for Trade in Services (1)
and reaffirms Members' commitment to progress in this area of the
negotiations in line with the Doha mandate. The Council adopts the
recommendations agreed by the Special Session, set out in Annex C to
this document, on the basis of which further progress in the services
negotiations will be pursued. Revised offers should be tabled by May
Other negotiating bodies:
Rules, Trade & Environment and TRIPS: the General Council takes
note of the reports to the TNC by the Negotiating Group on Rules and
by the Special Sessions of the Committee on Trade and Environment and
the TRIPS Council (2).
The Council reaffirms Members' commitment to progress in all of these
areas of the negotiations in line with the Doha mandates.
Dispute Settlement: the General Council takes note of the
report to the TNC by the Special Session of the Dispute Settlement
and reaffirms Members' commitment to progress in this area of the
negotiations in line with the Doha mandate. The Council adopts the TNC's recommendation that work in the Special Session should continue
on the basis set out by the Chairman of that body in his report to the
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 by explicit consensus 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.
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 agrees that this
Decision and its Annexes shall not be used in any dispute settlement
proceeding under the DSU and shall not be used for interpreting the
existing WTO Agreements.
3. 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. The Council agrees to continue the
negotiations launched at Doha beyond the timeframe set out in
paragraph 45 of the Doha Declaration, leading to the Sixth Session of
the Ministerial Conference. Recalling its decision of 21 October 2003
to accept the generous offer of the Government of Hong Kong, China to
host the Sixth Session, the Council further agrees that this Session
will be held in December 2005.
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Framework for Establishing Modalities in Agriculture
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 basis for the negotiations on agriculture.
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
country Members. Agriculture is of critical importance to the economic
development of developing country Members 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
4. The General Council recognizes the
importance of cotton for a certain number of countries and its vital
importance for developing countries, especially LDCs. It will be
addressed ambitiously, expeditiously, and specifically, within the
agriculture negotiations. The provisions of this framework provide a
basis for this approach, as does the sectoral initiative on cotton.
The Special Session of the Committee on Agriculture shall ensure
appropriate prioritization of the cotton issue independently from
other sectoral initiatives. A subcommittee on cotton will meet
periodically and report to the Special Session of the Committee on
Agriculture to review progress. Work shall encompass all
trade-distorting policies affecting the sector in all three pillars of
market access, domestic support, and export competition, as specified
in the Doha text and this Framework text.
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 domestic 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 Members. Specifically, higher levels of permitted
trade-distorting domestic support will be subject to deeper cuts.
Each such Member will make a substantial reduction in the overall
level of its trade-distorting support from bound levels.
As well as this overall commitment, Final Bound Total AMS and
permitted de minimis levels will be subject to substantial
reductions and, in the case of the Blue Box, will be capped as
specified in paragraph 15 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 account.
Overall Reduction: A Tiered Formula
7. The overall base level of all
trade-distorting domestic support, as measured by the Final Bound
Total AMS plus permitted de minimis level and the level agreed
in paragraph 8 below for Blue Box payments, will be reduced according
to a tiered formula. Under this formula, Members having higher levels
of trade-distorting domestic support will make greater overall
reductions in order to achieve a harmonizing result. As the first
instalment of the overall cut, in the first year and throughout the
implementation period, the sum of all trade-distorting support will
not exceed 80 per cent of the sum of Final Bound Total AMS plus
permitted de minimis plus the Blue Box at the level determined
in paragraph 15.
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 domestic 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 domestic 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 established in paragraph 15 below.
Final Bound Total AMS: A Tiered Formula
9. To achieve reductions with a harmonizing
Final Bound Total AMS will be reduced substantially, using a tiered
Members having higher Total AMS 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 according to a methodology to be agreed.
Substantial reductions in Final Bound Total AMS will result in
reductions of some product-specific support.
10. Members may make greater than formula
reductions in order to achieve the required level of cut in overall
trade-distorting domestic support.
11. Reductions in de minimis will be
negotiated taking into account the principle of special and
differential treatment. Developing countries that allocate almost all
de minimis support for subsistence and resource-poor farmers
will be exempt.
12. Members may make greater than formula
reductions in order to achieve the required level of cut in overall
trade-distorting domestic support.
13. Members recognize the role of the Blue
Box in promoting agricultural reforms. In this light, Article 6.5 will
be reviewed so that Members may have recourse to the following
Direct payments under production-limiting programmes if:
such payments are based on fixed and unchanging areas and yields;
such payments are made on 85% or less of a fixed and unchanging
base level of production; or
livestock payments are made on a fixed and unchanging number of
Direct payments that do not require production if:
such payments are based on fixed and unchanging bases and yields;
livestock payments made on a fixed and unchanging number of head;
such payments are made on 85% or less of a fixed and unchanging
base level of production.
14. The above criteria, along with additional
criteria will be negotiated. Any such criteria will ensure that Blue
Box payments are less trade-distorting than AMS measures, it being
Any new criteria would need to take account of the balance of WTO
rights and obligations.
Any new criteria to be agreed will not have the perverse effect of
undoing ongoing reforms.
15. Blue Box support will not exceed 5% of a
Member’s average total value of agricultural production during an
historical period. The historical period will be established in the
negotiations. This ceiling will apply to any actual or potential Blue
Box user from the beginning of the implementation period. 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 on a basis to be agreed to ensure that such a Member is not
called upon to make a wholly disproportionate cut.
16. Green Box criteria will be reviewed and
clarified 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 and clarification 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 48 below will be particularly important with respect to the
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
establish detailed modalities 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 agreed:
Export subsidies as scheduled.
Export credits, export credit guarantees or insurance programmes
with repayment periods beyond 180 days.
Terms and conditions relating to export credits, export credit
guarantees or insurance programmes with repayment periods of 180
days and below which are not in accordance with disciplines to be
agreed. These disciplines will cover, inter alia, payment of
interest, minimum interest rates, minimum premium requirements, and
other elements which can constitute subsidies or otherwise distort
Trade distorting practices with respect to exporting STEs including
eliminating export subsidies provided to or by them, government
financing, and the underwriting of losses. 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 prevent commercial displacement. The role of
international organizations as regards the provision of food aid by
Members, including related humanitarian and developmental issues,
will be addressed in the negotiations. The question of providing
food aid exclusively in fully grant form will also be addressed in
19. Effective transparency provisions for
paragraph 18 will be established. Such provisions, in accordance with
standard WTO practice, will be consistent with commercial
20. Commitments and disciplines in paragraph
18 will be implemented according to a schedule and modalities to be
agreed. Commitments will be implemented by annual instalments. Their
phasing will take into account the need for some coherence with
internal reform steps of Members.
21. The negotiation of the elements in
paragraph 18 and their implementation will ensure equivalent and
parallel commitments by Members.
Special and Differential Treatment
22. Developing country Members will benefit
from longer implementation periods for the phasing out of all forms of
23. Developing countries will continue to
benefit from special and differential treatment under the provisions
of Article 9.4 of the Agreement on Agriculture for a reasonable
period, to be negotiated, after the phasing out of all forms of export
subsidies and implementation of all disciplines identified above are
24. Members will ensure that the disciplines
on export credits, export credit guarantees or insurance programs 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 Programme on
Least-Developed and Net Food-Importing Developing Countries. Improved
obligations for monitoring and surveillance of all new disciplines as
foreshadowed in paragraph 48 will be critically important in this
regard. Provisions to be agreed in this respect must not undermine the
commitments undertaken by Members under the obligations in paragraph
25. STEs in developing country Members
which enjoy special privileges to preserve domestic consumer price
stability and to ensure food security will receive special
consideration for maintaining monopoly status.
26. In exceptional circumstances, which
cannot be adequately covered by food aid, commercial export credits or
preferential international financing facilities, ad hoc temporary
financing arrangements relating to exports to developing countries may
be agreed by Members. Such agreements must not have the effect of
undermining commitments undertaken by Members in paragraph 18 above,
and will be based on criteria and consultation procedures to be
27. 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
28. To ensure that a single approach for
developed and developing country Members meets all the objectives of
the Doha mandate, tariff reductions will be made through a tiered
formula that takes into account their different tariff structures.
29. To ensure that such a formula will lead
to substantial trade expansion, the following principles will guide
its further negotiation:
Tariff reductions will be made from bound rates. Substantial overall
tariff reductions will be achieved as a final result from
Each Member (other than LDCs) will make a contribution.
Operationally effective special and differential provisions for
developing country Members 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
30. 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 will be further
31. Without undermining the overall objective
of the tiered approach, Members may designate an appropriate number,
to be negotiated, of tariff lines to be treated as sensitive, taking
account of existing commitments for these products.
32. The principle of ‘substantial
improvement’ will apply to each product.
33. ‘Substantial improvement’ will be
achieved through combinations of tariff quota commitments and tariff
reductions applying to each product. However, balance in this
negotiation will be found only if the final negotiated result also
reflects the sensitivity of the product concerned.
34. Some MFN-based tariff quota expansion will be required for all such products. A base for such an expansion will be established, taking account of coherent and equitable criteria to be developed in the negotiations. In order not to undermine the objective of the tiered approach, for all such products, MFN based tariff quota expansion will be provided under specific rules to be negotiated taking into account deviations from the tariff formula.
35. Other elements that will give the
flexibility required to reach a final balanced result include
reduction or elimination of in-quota tariff rates, and operationally
effective improvements in tariff quota administration for existing
tariff quotas so as to enable Members, and particularly developing
country Members, to fully benefit from the market access opportunities
under tariff rate quotas.
36. Tariff escalation will be addressed
through a formula to be agreed.
37. The issue of tariff simplification
remains under negotiation.
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 the negotiation, including the tariff
reduction formula, the number and treatment of sensitive products,
expansion of tariff rate quotas, and implementation period.
40. Proportionality will be achieved by
requiring lesser tariff reduction commitments or tariff quota
expansion commitments from developing country Members.
41. Developing country Members will have the
flexibility to designate an appropriate number of products as Special
Products, based on criteria of food security, livelihood security and
rural development needs. These products will be eligible for more
flexible treatment. The criteria and treatment of these products will
be further specified during the negotiation phase and will recognize
the fundamental importance of Special Products to developing
42. A Special Safeguard Mechanism (SSM) will
be established for use by developing country Members.
43. 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
44. The importance of long-standing
preferences is fully recognised. The issue of preference erosion will
be addressed. For the further consideration in this regard, paragraph
16 and other relevant provisions of TN/AG/W/1/Rev.1 will be used as a
LEAST- DEVELOPED COUNTRIES
45. Least-Developed Countries, which will
have full access to all special and differential treatment provisions
above, are not required to undertake reduction commitments. Developed
Members, and developing country Members in a position to do so, should
provide duty-free and quota-free market access for products
originating from least-developed countries.
46. Work on cotton under all the pillars will
reflect the vital importance of this sector to certain LDC Members and
we will work to achieve ambitious results expeditiously.
RECENTLY ACCEDED MEMBERS
47. The particular concerns of recently
acceded Members will be effectively addressed through specific
MONITORING AND SURVEILLANCE
48. 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.
49 Issues of interest but not agreed:
sectoral initiatives, differential export taxes, GIs.
50. Disciplines on export prohibitions and
restrictions in Article 12.1 of the Agreement on Agriculture will be
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Framework for Establishing Modalities in Market Access for
1. This Framework contains the initial
elements for future work on modalities by the Negotiating Group on
Market Access. Additional negotiations are required to reach agreement
on the specifics of some of these elements. These relate to the
formula, the issues concerning the treatment of unbound tariffs in
indent two of paragraph 5, the flexibilities for developing-country
participants, the issue of participation in the sectorial tariff
component and the preferences. In order to finalize the modalities,
the Negotiating Group is instructed to address these issues
expeditiously in a manner consistent with the mandate of paragraph 16
of the Doha Ministerial Declaration and the overall balance therein.
2. 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.
3. 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.
4. 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
5. 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;
negotiations shall commence on the basis of the HS96 or HS2002
nomenclature, with the results of the negotiations to be finalized
in HS2002 nomenclature;
the reference period for import data shall be 1999-2001.
6. 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.
7. 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.
8. We agree that developing-country
participants shall have longer implementation periods for tariff
reductions. In addition, they shall be given the following
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.
9. 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.
10. 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 […].
11. 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.
12. 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.
13. In addition, we ask developed-country
participants and other participants who so decide to consider the
elimination of low duties.
14. 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
2004 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.
15. 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.
16. 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.
17. 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.
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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
(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
(f) Targeted technical assistance should be
provided with a view to enabling developing countries to participate
effectively in the negotiations.
(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
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Modalities for Negotiations on Trade
1. Negotiations shall aim to clarify and
improve relevant aspects of Articles V, VIII and X of the GATT 1994
with a view to further expediting the movement, release and clearance
of goods, including goods in transit (4).
Negotiations shall also aim at enhancing technical assistance and
support for capacity building in this area. The negotiations shall
further aim at provisions for effective cooperation between customs or
any other appropriate authorities on trade facilitation and customs
2. The results of the negotiations shall take
fully into account the principle of special and differential treatment
for developing and least-developed countries. Members recognize that
this principle should extend beyond the granting of traditional
transition periods for implementing commitments. In particular, 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 would not be obliged
to undertake investments in infrastructure projects beyond their
3. Least-developed country Members will only
be required to undertake commitments to the extent consistent with
their individual development, financial and trade needs or their
administrative and institutional capabilities.
4. As an integral part of the negotiations,
Members shall seek to identify their trade facilitation needs and
priorities, particularly those of developing and least-developed
countries, and shall also address the concerns of developing and
least-developed countries related to cost implications of proposed
5. 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. Members, in
particular developed countries, therefore commit themselves to
adequately ensure such support and assistance during the negotiations
6. Support and assistance should also be
provided to help developing and least-developed countries implement
the commitments resulting from the negotiations, in accordance with
their nature and scope. In this context, it is recognized that
negotiations could lead to certain commitments whose implementation
would require support for infrastructure development on the part of
some Members. In these limited cases, developed-country Members will
make every effort to ensure support and assistance directly related to
the nature and scope of the commitments in order to allow
implementation. It is understood, however, that in cases where
required support and assistance for such infrastructure is not
forthcoming, and where a developing or least-developed Member
continues to lack the necessary capacity, implementation will not be
required. While every effort will be made to ensure the necessary
support and assistance, it is understood that the commitments by
developed countries to provide such support are not open-ended.
7. Members agree to review the effectiveness
of the support and assistance provided and its ability to support the
implementation of the results of the negotiations.
8. In order to make technical assistance and
capacity building more effective and operational and to ensure better
coherence, Members shall invite relevant international organizations,
including the IMF, OECD, UNCTAD, WCO and the World Bank to undertake a
collaborative effort in this regard.
9. Due account shall be taken of the relevant
work of the WCO and other relevant international organizations in this
10. 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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This report is contained in document TN/S/16.
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The reports to the TNC referenced in this paragraph are contained in
the following documents: Negotiating Group on Rules — TN/RL/9; Special
Session of the Committee on Trade and Environment — TN/TE/9; Special
Session of the Council for TRIPS — TN/IP/10.
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This report is contained in document TN/DS/10.
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It is understood that this is without prejudice to the possible format
of the final result of the negotiations and would allow consideration
of various forms of outcomes.
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In connection with this paragraph, Members note that paragraph 38 of
the Doha Ministerial Declaration addresses relevant technical
assistance and capacity building concerns of Members.
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