Bridges Weekly Trade News Digest • Volume 7 • Number 18 • 21st May 2003
WTO Market Access Paper Gives Members Food For Thought
On 16 May, Pierre-Louis Girard, Chair of the WTO’s Negotiating Group on non-Agricultural Market Access, issued a first draft ‘modalities’ paper that offers a series of formulas for reducing tariff and non-tariff barriers in industrial goods as part of the Doha round of trade negotiations launched in November 2001. The compilation document (TN/MA/W/35, available at http://docsonline.wto.org) comes ahead of a 26-28 May meeting of the Negotiating Group, which is mandated to agree on modalities — or targets for achieving the objectives of the negotiations — by the end of May.
Observers say that the lukewarm support garnered for Girard’s proposal from WTO Members, together with lack of progress in other areas of the Doha negotiations, means that the 31 May deadline is likely to be missed, as Members will require more time to respond to and adjust the draft text. This was reflected in the Chair’s paper, which stated that it "is not in any way comprehensive. Rather it should be seen as a set of basic elements for possible modalities, which will need to be adjusted, completed, refined, or further expanded upon". A wide range of proposals from both developed and developing countries have been submitted since Members agreed last July to the May deadline (see BRIDGES Weekly, 30 April 2003).
The Chair’s paper proposes, inter alia, across-the-board tariff cuts — in line with US and EC desires — and puts forward a formula that would cut tariffs on products with higher tariffs by bigger margins. This is combined with a ‘zero-for-zero’ sector tariff elimination, as well as the elimination of low duties, or so-called ‘nuisance’ tariffs.
In addition to the formula, the paper proposes a three-phase sectoral elimination approach in order to eliminate and bind all tariffs on products of particular export interest to developing and least- developed country participants. It targets liberalisation of the sectors of: Electronics & Electrical goods; Fish & Fish products; Footwear; Leather goods; Motor Vehicle parts & components; Stones, Gems, & Precious Metals; and Textiles & Clothing within three years for developed countries. The paper further advocates longer implementation periods for tariff reductions for developing countries and duty and quota-free access for non-agricultural goods from least-developed countries (LDCs). LDCs are nevertheless called upon to increase their level of binding commitments.
Regarding non-tariff barriers (NTBs), the paper recommends that the Negotiating Group continue with its work on identifying, examining and classifying NTBs.
Commenting on the paper, US Trade Representative Robert Zoellick said that, "it’s frankly not as ambitious as we would like," though he said it showed the possibility of movement. The paper makes no mention of a US proposal to eliminate all tariffs by 2015. Japanese Foreign Minister Yoriko Kawaguchi expressed dissatisfaction with the draft, saying its calls for eliminating tariffs on certain products were unacceptable. Japan has previously expressed a desire to keep forestry and fisheries products out of accelerated tariff liberalisation schemes.
BRIDGES Weekly will provide further coverage of the issue following the 26-28 May Negotiating Group.
ICTSD reporting.