|
JOB(06)/199 “Includes 29 June corrections
from JOB(06)/199/Corr.1”
29 June 2006
Annex A back to top
DRAFT GUIDELINES FOR THE CONVERSION OF
FINAL BOUND NON-AD VALOREM DUTIES
INTO AD VALOREM EQUIVALENTS (5)
I. OBJECTIVE
1. There is general understanding amongst
Members that construction of a tiered formula for tariff reductions
requires a common measurement device for converting the various types
of non-ad valorem final bound tariffs to ad valorem equivalents
(“AVEs”).
These Guidelines are intended to establish such a common methodology
for the calculation, and subsequent submission, of AVEs for the
purposes of allocating tariffs to the various tiers to be established.
The Guidelines are based on the principles of practicality,
comparability, simplicity, transparency and verifiability.
2. All Members with final bound non-ad valorem tariffs for agricultural products (as defined in Annex 1 of
the Agreement on Agriculture) in their WTO Schedules will apply these
Guidelines for converting their non-ad valorem tariffs into AVEs.
(6)
3. There are no preconditions to the tabling
of data sets as a working basis. However, it should be noted in this
context that all tariff reductions will be made from Members' bound
rates, as agreed in paragraph 29 of the Framework Agreement. The issue
of tariff simplification remains under negotiation in accordance with
paragraph 37 of the Framework Agreement.
4. A solution to the issue of the potential
“overlap” in tariff cuts, which may be created at the margins of the
tariff bands, will need to be found.
5. While there is broad acceptance that Members are searching for the
closest approximation possible of the correct AVE (exact precision
being unattainable), it should be noted that in the consultations
strong linkages have been made between providing Members “flexibility”
and “verification” procedures.
6. At the request of Members, the
Secretariat will continue to provide advice on technical matters,
including technical assistance which may be necessary in the case of
some developing country Members for applying the methodology set out
below. II.
CONVERSION METHODOLOGY 7. The principal
method for converting the final bound non-ad valorem duties into their
ad valorem equivalents will be the unit value method based on IDB
import data. This method will be applied in accordance with the
modalities outlined in Section A below. 8. An
alternative conversion method will be applied to the extent that the
unit value method based on IDB import data is not appropriate or not
practicable as determined in Section B below.
A. UNIT VALUE METHOD BASED ON IDB IMPORT DATA
1. Formula 9. The final bound non-ad valorem MFN duties specified in Members' Schedules will be converted
into their AVEs in accordance with the following formula:
|
AVE = (SP * 100)/(UV * XR) |
|
AVE: |
Ad valoremequivalent (per cent) |
|
SP: |
Monetary Value of Duty per Unit of Imports |
|
UV: |
Import Unit Value |
|
|
where |
UV = V/(Q * CQ) |
|
|
V |
= value of imports |
|
|
Q |
= quantity of imports |
|
|
CQ |
= conversion factor for quantity units, where appropriate |
|
XR: |
Currency Exchange Rate, where appropriate |
2. Parameters for the
calculations 10. The calculations will be
based on total import flows with respect to the non-ad valorem tariff
item concerned. The result of the calculations must be closely
representative of the true level of tariff protection afforded by the
non-ad valorem tariff. 11. The calculations
of AVEs will be made in terms of a weighted average for the period
1999-2001. Any exchange rates and conversion factors that may be
required for the calculations will relate to, and be applied on, the
raw data (i.e. value and/or quantity of imports) for the individual
years of this period prior to summing up the values or volumes for the
three-year period for the purposes of calculating the weighted
averages. In other words, weighted averages for IDB import unit values
and world Comtrade import unit values will be calculated, for each
tariff line concerned, in the following manner: the import values
registered during the three-year period 1999-2001 will be first summed
up and then divided by the sum of the import quantities registered
during the same period. 12. In the case of
seasonal tariffs, a separate AVE will be calculated for each of the
seasons. 3. Data requirements and
sources 13. The final bound non-ad valorem
MFN duties will be sourced from the Consolidated Tariff Schedules
Database (CTS). 14. The import values and
import quantities will be sourced from the WTO Integrated Database (IDB)
at the most disaggregated tariff line level. The data necessary to
calculate world import unit values at the HS-six-digit level derived
from the UN Commodity Trade Statistics Database (Comtrade) can be
downloaded from the password-protected Members' Web Site. In the
following paragraphs, these world import unit values will be referred
to as “Comtrade unit values”.
B. ALTERNATIVE AVE CALCULATION 1.
Specific situations covered Missing
data 15. An alternative method for the
calculation of AVEs to that outlined in Section A above will apply in
the following situations:
the IDB import data for the tariff
line concerned are missing, or the IDB import value for the tariff
line concerned is, on weighted average of the 1999-2001 period,
lower than US$ 2,500 or the equivalent in another currency, or there are reporting or other errors in
the IDB import data.
40/20 Filter
16. An alternative method to that outlined in Section A above will
also apply in any case where the IDB-based AVE cannot be considered to
reflect the true level of tariff protection afforded by the non-ad valorem tariff. The
“40/20 filter” is designed to systematically
identify distorted IDB-based AVEs using existing, publicly available
data that all Members have access to. This filter will be applied to
all AVEs calculated on the basis of IDB import data in accordance with
Section A above as well as in the cases specified in paragraphs 22-24
below. Step 1: Identification of distorted
IDB import unit values 17. The difference
between the IDB import unit value and an estimated world import unit
value is the basis of the first step of the 40/20 filter. To run this
filter Members shall:
Calculate the difference in per cent
between (i) the weighted average 1999-2001 IDB import unit values at
the tariff line level
(7) and (ii) the weighted average 1999-2001 Comtrade unit values.
(8) If the IDB import unit value exceeds
the Comtrade unit value by more than 40%, the tariff item is subject
to Step 2. Otherwise, the IDB AVE is directly
used to allocate this item in the appropriate tier of the tariff
reduction formula to be established, and the item is not subject to
Step 2.
Step 2: Relevance test
18. An IDB import unit value that exceeds the Comtrade unit value by
more than 40% does not alone indicate whether a product should be
subject to an alternative method of AVE calculation. Calculation of
AVEs is not an exact science. In the end, the tariff will be placed
within the tiers of the tariff reduction formula. Members are only
attempting to identify those products, which are most likely to move
to a lower tariff reduction tier as a result of distorted import unit
values. Therefore, there should be no concern about an IDB import unit
value that is 100% greater than the Comtrade unit value, if the
resulting AVE is 3% using IDB data, rather than 6% using Comtrade
data. Though there is a 100% difference here, the absolute difference
between the AVEs is low enough so as not to warrant additional
attention. 19. The relevance test is designed
to only identify tariff lines in which there is a large absolute
difference between the AVE calculated using IDB and the AVE calculated
using Comtrade. To run this test Members will:
Complete the calculation of AVEs using
IDB import unit values. Calculate AVEs using Comtrade unit
values for those tariff lines identified in Step 1 as requiring the
Step 2 relevance test. Subtract the IDB AVE from the Comtrade
AVE. If the resulting difference is greater
than 20 percentage points then the tariff line is subject to an
alternative AVE calculation method as specified in paragraph 25
below. Otherwise, the IDB AVE is used to allocate this item in the
appropriate tier of the tariff reduction formula to be established.
Other
20. Sugar will be treated in accordance with the provisions of
paragraph 26 below. 2. Alternative
methods 21. In any of the cases identified
as a result of the provisions under in paragraphs 15 to 20 above, the
provisions of paragraphs 9 to 14 will be applied, subject to the
following modifications. Missing data
22. In the case of missing data as specified in paragraph 15 above,
Members may apply one of the following alternative methods in place of
the average 1999-2001 IDB import unit value, subject to identification
of the source of the data:
(i) extend the base period 1999-2001
by up to two years at either end;
(ii) use the IDB import unit value of a closely related tariff line;
(iii) use the IDB import unit value of the tariff line at issue of a
near country; or
(iv) use the Comtrade unit value.
23. Members should in principle use a
consistent method across all tariff lines. Should the choice vary in
order to obtain the most representative price, Members shall specify
for each such tariff line which method was used.
24. Except where option (iv) has been chosen, the provisions of
paragraphs 16-19 above (40/20 filter) apply.
Alternative treatment pursuant to the 40/20 filter
25. The conversion of non-ad valorem duties, captured in the 40/20
filter, into their AVEs will be calculated using the following
weightings based on unit values of Comtrade and IDB data:
(a) For HS Chapters 1 to 16, and the
products in Annex 1 of the Agreement on Agriculture in the HS
Chapters beyond Chapter 24, a 82.5/17.5 (Comtrade/IDB) weighting
will apply.
(b) For HS Chapters 17-24, a 60/40 (Comtrade/IDB) weighting will
apply.
Other
26. For all tariff lines for raw and refined sugar, [world prices] [or
other prices] will apply [ ].
C. ADDITIONAL DATA REQUIREMENTS 27.
The following provisions apply for the methods under both section A
and section B above. 28. Where technical
conversion factors are necessary, these will be sourced from the FAO
unless they are already specified in the Schedule of the Member
concerned. 29. All import unit values/prices
will be expressed on a c.i.f. basis. Where necessary, f.o.b./c.i.f.
conversion factors will be applied according to a methodology to be
established. 30. Where the conversion of the
currency used to record import values is necessary, the exchange rate
to be used will be the annual average market exchange rate published
in the International Financial Statistics (IFS) by the International
Monetary Fund (IMF)
(9). Where the exchange rates are unavailable from the
IFS Yearbook, the rate of exchange to be used will be that duly
published by the competent authorities of the importing Member
concerned and will reflect, as effectively as possible, the current
value of the currency in commercial transactions in terms of the
currency of the country of importation.
III. MULTILATERAL VERIFICATION PROCEDURE 31.
In order to ensure transparency, the preliminary AVE calculations
resulting from the conversion methodology set out in Section II above
will be subject to the multilateral verification procedure set out
below. 1. Submissions of AVE
calculations 32. Members will submit to the
Secretariat their preliminary AVE calculations, including full details
of the constituent data, data sources and methods applied, using the
annexed electronic spreadsheet format.
(10) Those tariff lines that have
been identified by the procedures under paragraphs 15 to 20 above will
be identified as such in order to allow particular scrutiny. The
Secretariat will post all submissions on the password-protected
Members' WTO Web Site for the purposes of the multilateral review.
2. Verification 33. The verification
process is to ensure that the AVE calculations have been performed in
accordance with these Guidelines [details to be developed.]
34. Final lists of AVEs are to be submitted to the Secretariat within
[ ] days following the completion of the verification process. Upon
receipt, the Secretariat will promptly post these submissions on the
password-protected Members' Web Site.
Annex B back to top
Tariff Escalation
Provisional Draft List of Primary and Processed Products
(1)
|
Bovine meat
|
|
|
Primary product |
Processed product |
|
0102.90 Live bovine animals other than pure bred breeding animals
|
0201.10 – Meat of bovine animals, fresh or chilled; Carcasses and half-carcasses
Meat of bovine animals, fresh or chilled.
0201.20 – Other cuts with bone in
0201.30 – Boneless
0202.10 – Meat of bovine animals, frozen; Carcasses and half-carcasses
Meat of bovine animals, frozen.
0202.20 – Other cuts with bone in
0202.30 – Boneless
0206.10 – Edible offal of bovine animals, fresh or chilled
Edible offal of bovine
animals, frozen.
0206.21 – Tongues
0206.22 – Livers
0206.29 – Other
0210.20 – Meat of bovine animals salted, in brine or dried or smoked; Other, including edible flours and meals of meat and meat offal
1602.50 – Prepared or preserved meat, meat offal or blood of bovine animals
|
|
Swine meat
|
|
|
Primary product |
Processed product |
|
Live Swine, other than pure-bred breeding animals
0103.91 Weighing less than 50 kg
0103.92 Weighing 50 kg or more
|
0203.11 – Meat of swine, fresh or chilled; Carcasses and half-carcasses
Meat of swine, fresh or chilled.
0203.12 – Hams, shoulders and cuts thereof, with bone in
0203.19 – Other
0203.21 – Meat of swine, frozen; Carcasses and half carcasses
Meat of swine, fresh or chilled.
0203.12 – Hams, shoulders and cuts thereof, with bone in
0203.19 – Other
Meat of swine, frozen.
0203.22 – Hams, shoulders and cuts thereof, with bone in
0203.29 – Other
0206.30 – Edible offal of swine, fresh or chilled
Edible offal of swine, frozen.
0206.41 – Livers
0206.49 – Other
Meat of swine salted, in brine, dried or smoked; Edible flours and meals of meat and meat offal
0210.11 – Hams, shoulders and cuts thereof, with bone in
0210.12 – Bellies (streaky) and cuts thereof
0210.19 – Other
Prepared or preserved meat, meat offal or blood of swine.
1602.41 – Hams and cuts thereof
1602.42 – Shoulders and cuts thereof
1602.49 – Other, including mixtures
|
|
Sheep meat
|
|
|
Primary product |
Processed product |
|
0104.10 Live sheep |
0204.10 – Carcasses and half-carcasses of lamb, fresh or chilled
0204.21 – Other meat of sheep, fresh or chilled; Carcasses and half-carcasses
0204.30 – Carcasses and half-carcasses of lamb, frozen
Other meat of sheep, fresh or chilled.
0204.22 – Other cuts with bone in
0204.23 – Boneless
Other meat of sheep, frozen.
0204.42 – Other cuts with bone in
0204.43 – Boneless
|
|
Vegetables
|
|
|
Primary product |
Processed product |
|
0701.90 – Potatoes, fresh or chilled; Other than seed |
0710.10 – Potatoes (uncooked or cooked by steaming or boiling in water), frozen
2004.10 – Potatoes prepared or preserved otherwise than by vinegar or acetic acid, frozen
|
|
0702.00 – Tomatoes, fresh or chilled |
Tomatoes prepared or preserved otherwise than by vinegar or acetic acid.
2002.10 – Tomatoes, whole or in pieces
2002.90 – Other
2009.50 – Tomato juice, unfermented and not containing added sugar or other sweetening matter
2103.20 – Tomato ketchup and other tomato sauces
|
|
Fruits
|
|
|
Primary product |
Processed product |
|
0805.10 – Oranges, fresh or dried |
Orange juice, unfermented and not containing added spirit, whether or not containing added sugar or sweetening matter.
2009.11 – Orangejuice, frozen
2009.12 – Orangejuice, not frozen, of a Brix value not exceeding 20
2009.19 – Other
|
|
0805.40 – Grapefruit, fresh or dried |
Grapefruit juice, unfermented and not containing added spirit, whether or not containing added sugar or sweetening matter.
2009.21 – Of a Brix value not exceeding 20
2009.29 – Other
|
|
0806.10 – Grapes, fresh |
0806.20 – Grapes, dried |
|
0808.10 – Apples, fresh |
0813.30 – Apples, dried
Apple juice, unfermented and not containing added spirit, whether or not containing added sugar or sweetening matter.
2009.71 – Of a Brix value not exceeding 20
2009.79 – Other
|
|
Coffee
|
|
|
Primary Product |
Processed Product |
|
0901.11 – Coffee, not roasted: Not decaffeinated |
0901.21 – Coffee, roasted: Not decaffeinated
2101.11 – Extracts, essences and concentrates
|
|
0901.12 – Coffee, not roasted: Decaffeinated |
0901.22 – Coffee, roasted: Decaffeinated
2101.11- Extracts, essences and concentrates
|
|
Cereals
|
|
|
Primary Product |
Processed Product |
|
1001.10 – Durum Wheat
1001.90 – Wheat: Other
|
11.01 – Wheat or meslin flour
11.03.11 – Groats and meal, of wheat
11.03.20 – Pellets
(2)
1108.11 – Wheat starch
11.09 – Wheat gluten, whether or not dried
|
|
10.03 – Barley |
11.03.19 Groats and meal, of
other cereals
(1)
11.03.20 Pellets
(1)
1104.19 – Rolled or flaked grains, of other cereals
(1)
1104.29 – Other worked grains, of other cereals
(1)
Malt, whether or not roasted
1107.10 – Not roasted
1107.20 – Malt, Roasted
|
|
10.04 – Oats |
11.03.19 Groats and meal, of other cereals
(1)
11.03.20 Pellets
(1)
Cereal Grains Otherwise Worked (for example, hulled, rolled, flaked, pearled, sliced or kibbled), except rice of heading
10.06; germ of cereals, whole, rolled, flaked or ground
1104.12 – Rolled or flaked grains: Of oats
1104.22 – Other worked grains: Of oats
|
|
Oilseeds
|
|
|
Primary Product |
Processed Product |
|
12.01 – Soya Beans, whether or not broken |
Flours and meals of oil seeds or oleaginous fruits, other than those of mustard:
1208.10 – Of soya bean
Soya bean oil and its fractions, whether or not refined, but not chemically modified.
1507.10 – Crude oil, whether or not degummed
1507.90 – Other
|
|
1202.10 – Ground-nuts, not roasted or otherwise cooked, whether or not shelled or broken: In shell |
Ground-nuts, not roasted or otherwise cooked, whether or not shelled or broken:
1202.20 – Shelled, whether or not broken
Flours and Meals of Oilseeds or oleaginous fruits, other than those of mustard,
12.08.90 – Other than of soybeans
(1)
Ground-nut oil and its fractions, whether or not refined, but not chemically modified.
1508.10 – Crude oil
1508.90 – Other
Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included.
2008.11 – Ground nuts
|
|
Rape or colza seeds, whether or not broken
1205.10 – Low erucic acid rape or colza seed
1205.90 – Other
|
Flours and Meals of Oilseeds or oleaginous fruits, other than those of mustard,
12.08.90 – Other than of soybeans
(1)
Rape, colza or mustard oil and fractions thereof, whether or not refined, but not chemically modified.
- Low erucic acid rape or colza oil and its fractions:
1514.11 – Crude oil
1514.19 – Other
- Other:
1514.91 – Crude oil
1514.99 – Other
|
|
12.06 – Sunflower seeds, whether or not broken
|
Flours and Meals of Oilseeds or oleaginous fruits, other than those of mustard,
12.08.90 – Other than of soybeans
(1)
Sunflower-seed, safflower or cotton-seed oil and fractions thereof, whether or not refined, but not chemically modified.
Sunflower-seed or safflower oil and fractions thereof:
1512.11 – Crude oil
1512.19 – Other
|
|
1207.60 – Safflower seeds |
Flours and Meals of Oilseeds or oleaginous fruits, other than those of mustard,
12.08.90 – Other than of soybeans
(1)
Sunflower-seed, safflower or cotton-seed oil and fractions thereof, whether or not refined, but not chemically modified. Sunflower-seed or safflower oil and fractions thereof:
1512.11 – Crude oil
1512.19 – Other
|
|
Other oil seeds and oleaginous fruits, whether or not broken
1207.10 – Palm nuts and kernels
|
Flours and Meals of Oilseeds or oleaginous fruits, other than those of mustard,
12.08.90 – Other than of soybeans
(1)
Palm oil and its refractions, whether or not refined, but not chemically modified
1511.10 – Crude oil
1511.90 – Other
|
|
Other oil seeds and oleaginous fruits, whether or not broken
1207.20 – Cotton seeds
|
Flours and Meals of Oilseeds or oleaginous fruits, other than those of mustard,
12.08.90 – Other than of soybeans
(1)
Sunflower-seed, safflower or cotton-seed oil and fractions thereof, whether or not refined, but not chemically modified.
Cotton-seed oil and its fractions:
1512.21 – Crude oil, whether or not gossypol has been removed
1512.29 – Other
|
|
Sugar
|
|
|
Primary product |
Processed product
(3) |
|
1701.11 – Raw cane sugar, not containing added flavouring or colouring matter
1701.12 – Raw beet sugar, not
containing added flavouring or colouring matter
|
1701.91 – Cane or beet sugar containing added flavouring or colouring matter
1701.99 – Cane or beet sugar, other than containing added flavouring or colouring matter
1704 – Sugar confectionery (including white chocolate) not containing cocoa
|
|
Cocoa
|
|
|
Primary product |
Processed product |
|
1801.00 – Cocoa beans, whole or broken, raw or roasted |
1803.10 – Cocoa paste, not defatted
1803.20 – Cocoa paste, wholly or partly defatted
1805.00 – Cocoa powder, not containing added sugar or other sweetening matter
1804.00 – Cocoa butter, fat and oil
Chocolate and other food preparations containing cocoa.
1806.10 – Cocoa powder, containing added sugar or other sweetening matter
1806.20 – Other preparations in blocks, slabs or bars more than 2 kg or liquid, paste, powder, granular or other bulk form in containers or immediate packings of a content exceeding 2 kg
1806.32 – Other, in blocks, slabs or bars, not filled
1806.90 – Other
|
Annex C back to top
Provisional draft
Tariff Quota Administration (1)
1. Tariff quota commitments shall be
administered in a manner which is transparent and predictable, and
ensures that the market access opportunities represented by such
commitments are made fully and effectively available.
2. [In order to promote this] Members
shall administer tariff quotas in conformity with WTO provisions,
including through the following requirements:
(a) A tariff quota commitment shall not be
administered in a manner which [hinders] [precludes] in any way the
importation of any product or tariff line within the tariff quota.
(b) Members shall provide timely initial
allocations of import licences and mechanisms for re-allocation or
tradability of tariff quota allotments to ensure that the annual
tariff quota quantity is imported within the quota year.
(c) [Members shall not impose seasonal or other
time limits on imports under tariff quotas, including those created
through delays arising from licensing and associated procedures, which
result in under-fill of the quota.]
(d) Members shall not impose [additional]
[unfavourable commercial] terms [or requirements] which act to
restrict [the importation of] products [eligible for importation under
a tariff quota, such as] [within the tariff quota commitment,
including] product specification requirements, domestic purchasing
requirements, non-viable quota allotments [restrictions on quota
allocation to] [denial of access to quota allocations for] retail
distributors and other end-users, restrictions on sales to final
consumers, or export or re-export requirements.
(e) [Members shall not credit [allocations or]
preferential [imports][tariff quota quantities under] [post-Uruguay
Round] bilateral and regional trade agreements against their scheduled
WTO tariff quota commitments.] [Members [shall] [may] credit
preferential imports, including existing preferential tariff quotas,
against scheduled WTO tariff quota commitments.]
(f) Members shall publish [all relevant
information] sufficiently in advance [of the opening date for the
tariff quota all relevant information] in relation to their
administration of tariff quota commitments, including information
regarding administrative requirements and procedures [,] [Through the
year, information shall be made readily available on] the contact
details of importers to whom tariff quota allocations have been
attributed and current tariff quota fill rates. [For Members that do
not publish publicly available import statistics on tariff quota
imports, detailed import statistics for tariff quotas, by tariff line,
shall be reported to the Committee on Agriculture on an annual basis.]
(g) [No charges, deposits or other financial
requirements shall be imposed, directly or indirectly, on or in
connection with the administration of tariff quota commitments or with
importation of tariff quota products other than as permitted under the
GATT 1994.]
(h) [Members shall not impose unfavourable
commercial terms or requirements which act to restrict products
eligible for importation under a TRQ such as:
(i) domestic purchasing requirements;
(ii) non-viable quota allotments; and
(iii) export or re-export requirements
which restrict imports.]
(i) [Members shall establish a mechanism of
redistribution of unused licences in order to ensure that the system
is operating according to its intentions. Reallocated quota shares
must be valid until the end of the quota period in question.]
3. [Underfill Mechanism:
(a) [If the tariff quota fill rate in any year
falls below [85%] (2) the under-filled portion of the tariff quota shall be added to the
tariff quota quantity for the following year.
(b) If fill rates are, in each year over a
[two-year] period, less than [85] per cent (excluding any additional
amount added to the tariff quota under 3(a)), the out-of-quota duty
shall be reduced to the in-quota rate [until such time that annual
imports equal or exceed the volume specified in the Member’s
schedule]. Thereafter, the Member shall adopt one of the following
options for administering the tariff quota: applied tariffs or
licences on demand.]
(a) [If fill rates are, in each year over a [two
year] period, less than [80] per cent, the out-of-quota duty shall be
reduced to the in-quota rate until such time that imports equal or
exceed the volume specified in the Member’s Schedule. Until imports
equal or exceed the volume specified in the Member’s Schedule, the
tariff quota shall be operated on an applied tariff basis at the
in-quota rate.
(b) If the fill rate drops below [80] per cent
in any subsequent [year], the out of quota duty shall again be reduced
to the in quota rate until imports equal or exceed the volume
specified in the Member’s Schedule.]
(a) [If the tariff quota fill rate for any two
consecutive years falls below [75] per cent (3)
each year, the tariff quota must be administered on a first-come,
first-served basis the following year.]]
4. Special and differential treatment
(a) [Developed country Members shall accord
special and differential treatment to products from developing country
Members in connection with the allocation of expanded access under
existing or new tariff quotas resulting from the negotiations under
the Doha Development Agenda. For the purposes of Article XIII of GATT
1994, where a tariff quota has been allocated in full or in part among
developing country suppliers the individual country allocations shall
be as specified in the Schedule of the Member concerned; and any
re-allocation of shortfalls shall be made among the developing country
suppliers concerned. Developed country Members shall, on request,
provide to the maximum extent possible advisory and marketing
assistance in order to facilitate imports from developing countries
under tariff quotas.]
Annex D back to top
Illustrative list of indicators for
designation of Special Products
(i) The product has been identified as a
staple food or as part of the basic food basket of the developing
country Member concerned through laws and regulations, including
administrative guidelines.
(ii)(a) A significant proportion of the
domestic consumption of the product in its natural unprocessed or
processed form is met through domestic production in the developing
country Member concerned; or
(b) Total domestic production of each
food class (in terms of carbohydrates, fats and proteins or any other
food class) accounts for a significant proportion of the total
normative requirement of that food class in accordance with the
dietary preferences in the developing country Member concerned; or
(c) The product contributes to a
significant proportion of the total calorific intake per capita per
day.
(iii)(a) A significant proportion of the
total food expenditure, or of the total income, at the household level
in the developing country Member concerned is spent on the product; or
(b) A significant proportion of the
total agricultural income at the household level in the developing
country Member concerned is derived from the production of the
product.
(iv) Domestic consumption of the product
in the developing country Member is significant in relation to total
world exports of that product.
(v) A significant proportion of total
world exports of the product is accounted for by the largest exporting
country.
(vi)(a) A significant proportion of the
total domestic production of the product is produced on farms or
operational land holdings of twenty (20) hectares or of average farm
size of the developing country Member concerned or less in size; or
(b) A significant proportion of the
farms or operational land holdings producing the product are of twenty
(20) hectares or the average farm size of the developing country
Member concerned or less in size.
(vii) A significant proportion of the
producers engaged in the production of the product are low income,
resource poor or are subsistence farmer or disadvantaged producers.
(viii)(a) A relatively high absolute
number of people are dependent on the product; or
(b) A significant proportion of the
total agricultural population or rural labour force is employed in the
production of the product.
(ix) A significant proportion of the
gross arable land is under cultivation of the product.
(x) A significant proportion of the
domestic production of the product, including a product produced from
livestock is produced in drought-prone or hilly or mountainous
regions.
(xi) A significant proportion of the
domestic production of the product is produced by vulnerable
populations such as tribal communities, ethnic groups, women, aged
people, or disadvantaged producers.
(xii) The productivity per worker or per
hectare of the product in the developing country Member is relatively
low as compared to either the average productivity in the world or the
highest productivity level achieved in any country.
(xiii) A relatively low proportion of the
product is processed in the developing country Member as compared to
the world average.
(xiv) The product contributes to
improving the living standards of the rural population directly and
through its linkages to non-farm rural economic activities, including
handicrafts and cottage industries or any other form of rural value
addition.
(xv) A significant proportion of the
total value of agricultural production or agricultural GDP or
agricultural income is contributed to by the product.
(xvi) A significant proportion of the
customs tariff revenue is derived from the product in a developing
country Member.
(xvii) (a) A significant proportion of
the agricultural income or agricultural production is derived from the
production of the livestock product(s), or
(b) A significant proportion of the
agricultural population or rural labour is employed in the production
of the livestock product(s).
(xviii) The product in respect of which
product-specific AMS has been notified by any other Member and which
has been exported by that notifying Member during any year of the
implementation period of the Uruguay Round.
Annex E back to top
Draft
Special Safeguard Mechanism for Developing Country Members
1. Notwithstanding the provisions of
paragraph 1(b) of Article II of GATT 1994 or of Article 4 of this
Agreement, any developing country Member may take recourse to the
imposition of an additional duty in accordance with the provisions of
paragraphs 4 and 5 below in connection with the importation of any
agricultural product [which is designated in its Schedule with the
symbol “SSM”] if:
(a) the quantity of imports of that product
entering the customs territory of that developing country Member
[during any year] exceeds a trigger level equal to [130 per cent of]
the average yearly quantity of imports [on a most-favoured-nation
basis] for the [36 month] period preceding the year of importation for
which data are available [or 130 per cent of the average yearly import
quantity on a most-favoured-nation basis for the base period of [ ] to
[ ], whichever is the greater] (hereinafter referred to as the
“average import volume”)[.] [and domestic prices are declining.] [and
unit import value of trade on a most-favoured-nation basis are
declining relative to the base period.]
[Where there are no, or minimal, levels of imports
in the base period or the most recent three-year period for which data
are available, [ ] per cent of domestic consumption of the product
shall be used as a proxy for “average import volume”. Where historical
trade patterns have been disrupted due to historical circumstances, an
alternative representative base period shall be used];
or, but not concurrently:
(b) the c.i.f. import price, expressed in terms
of the developing country Member’s domestic currency, at which a
shipment(1)
of
imports of that product enters the customs territory of that
developing country Member during any year (hereinafter referred to as
the “import price”), falls below a trigger price equal to [70 per cent
of] the average [monthly price(2)]
[annual price] for that product [on a most-favoured-nation basis] [for
the most recent three-year period preceding the year of importation
for which data are available] [for the previous 36 month period] [or
70 per cent of the average price of imports of that product on a
most-favoured-nation basis for the base period of [ ] to [ ],
whichever is the greater] (hereinafter referred to as the “average
[import] [monthly] price”)[.] [and imports are increasing.]
[Provided that, where the developing country
Member’s domestic currency has at the time of importation depreciated
by at least 10 per cent over the preceding 12 months against the
international currency or currencies against which it is normally
valued the import price shall be computed using the average exchange
rate of the domestic currency against such international currency or
currencies for the three-year period referred to above.]
2. Imports under any [bound] tariff quota
shall be counted for the purpose of determining the volume of imports
required for invoking the provisions of subparagraph 1(a) and
paragraph 4, but imports within such [bound] tariff quota shall not be
affected by any additional duty imposed under either subparagraph 1(a)
and paragraph 4 or subparagraph 1(b) and paragraph 5 below.
3. Any shipments of the product in
question which have been contracted and were en route after completion
of custom clearance procedures in the exporting country before the
additional duty is imposed either under subparagraph 1(a) and
paragraph 4 or under subparagraph 1(b) and paragraph 5 shall be
exempted from any such additional duty, provided that:
(a) the volume of such shipments may be counted
in the volume of imports of the product in question during the
following year for the purposes of triggering the provisions of
subparagraph 1(a) in that year; or
(b) the price of any such shipment may be used
during the following year in determining the average [import]
[monthly] price trigger for the purposes of triggering the provisions
of subparagraphs 1(b) in that year.
4. (a) Any additional duty imposed
under subparagraph 1(a) shall be maintained [for no more than 12
months after it has been imposed] [only until the end of the year in
which it has been imposed]. [If, import quantities are such that an
additional duty under subparagraph 1(a) is applicable in two
consecutive years the additional duty in the second year shall be two
thirds that applicable in the first year. If, import quantities are
such that an additional duty under subparagraph 1(a) is applicable in
three consecutive years the additional duty in the third year shall be
one third that applicable in the first year. No additional duty under
subparagraph 1(a) may be imposed until [ ] years have passed after the
third consecutive year of application of additional duties.
[(b) An additional duty imposed under
subparagraph 1(a) may only be levied at levels that do not exceed [20
per cent of the current bound duty.] [those specified in the following
schedule:
(i) where the level of imports during a
year does not exceed 105 per cent of the average import volume, no
additional duty may be imposed;
(ii) where the level of imports during a
year exceeds 105 per cent but does not exceed 110 per cent of the
average import volume, the maximum additional duty that may be imposed
shall not exceed 50 per cent of the bound tariff or 40 percentage
points, whichever is higher;
(iii) where the level of imports during a
year exceeds 110 per cent but does not exceed 130 per cent of the
average import volume, the maximum additional duty that may be imposed
shall not exceed 75 per cent of the bound tariffs or 50 percentage
points, whichever is higher; and
(iv) where the level of imports during a
year exceeds 130 per cent of the average import volume, the maximum
additional duty that may be imposed shall not exceed 100 per cent of
the bound tariff or 60 percentage points, whichever is higher.]]
[(b) An additional duty under
subparagraph 1(a) may be invoked if imports over the previous six
months are [ ] per cent greater than imports over the same six months
period in the preceding twelve months.
Any additional duty under subparagraph 1(a) and
1(b) above shall not exceed [ ] per cent of the difference between the
Final Bound Rate of duty of the Uruguay Round and the current Bound
Rate in the developing country Member’s Schedule. Least-developed
country Members may apply an additional duty of [ ].]
5. [(a) Any additional duty imposed
under subparagraph 1(b) may be assessed either on a
shipment-by-shipment basis or on an ad valorem basis for a
duration of no more than 12 months as defined in subparagraph 5(b)
below.
(b) In the event that the additional duty is
assessed on that product:
(i) on a shipment-by-shipment basis, the
additional duty shall not exceed the difference between the import
price of each shipment and the trigger price;
(ii) on an ad valorem basis, the
additional duty shall not exceed the difference between the import
price of the shipment and the trigger price referred to in
subparagraph 1(b) above, expressed as a percentage of that import
price;
provided that if at least two subsequent
shipments are at import prices that are 5 per cent or more lower than
the trigger price referred to in subparagraph 1(b), the developing
country Member may shift to the imposition of additional duty on a
shipment-by-shipment basis as set out in subparagraph 5(b)(i) above.]
[(a) An additional duty under
subparagraph 1(a) may be invoked if the average domestic prices over
the previous [ ] months are [ ] per cent lower than the average
domestic prices over the same six month period in the preceding twelve
months.
(b) Any additional duty under
subparagraph 1(a) and 1(b) above shall not exceed [ ] per cent of the
difference between the Final Bound Rate of duty of the Uruguay Round
and the current Bound Rate in the developing country Member’s
Schedule. Least-developed country Members may apply an additional duty
of [ ].]
[(a) Any additional duty under
subparagraph 1(b) shall apply on a shipment-by-shipment basis
according to the following schedule:
(i) no additional duty may be applied
if the import price is less than 20 per cent below the trigger price
defined in subparagraph 1(b);
(ii) an additional duty of up to 15
per cent of the difference between the import price and the trigger
price may be applied if the import price is more than 20 per cent but
less than, or equal to, 30 per cent below the trigger price;
(iii) an additional duty of up to 20
per cent of the difference between the import price and the trigger
price may be applied if the import price is more than 30 per cent but
less than, or equal to, 40 per cent below the trigger price;
(iv) an additional duty of up to 25
per cent of the difference between the import price and the trigger
price may be applied if the import price is more than 40 per cent but
less than, or equal to, 50 per cent below the trigger price;
(v) an additional duty of up to 30
per cent of the difference between the import price and the trigger
price may be applied if the import price is more than 50 per cent
below the trigger price.
6. [The trigger levels under
paragraphs 1(a) may be decreased by [20] per cent and under
paragraph 1(b) may be reduced by [20] per cent and the additional duty
under subparagraphs 1(a) and 1(b) may be increased by [20] per cent
for products the export of which was subsidized by a developed country
Member.]
7. [Any additional duty under
subparagraphs 1(a) or 1(b) shall not exceed [ ] per cent of the
difference between the bound duty applicable in [2007] and the current
bound duty.]
8. For perishable and seasonal products,
the conditions set out above shall be applied in such a manner as to
take account of the specific characteristics of such products. In
particular, shorter time periods under subparagraph 1(a) and
paragraph 4 may be used in reference to the corresponding period in
the three-year period referred to in subparagraph 1(a) and different
trigger prices for different periods may be used under
subparagraph 1(b).
9. The operation of the special safeguard
shall be carried out in a transparent manner. Any developing country
Member taking action under subparagraph 1(a) above shall give notice
in writing, indicating the tariff lines affected by the measure and
including relevant data to the extent available, to the Committee on
Agriculture as far in advance as may be practicable and in any event
within 30 days of the implementation of such action. A developing
country Member taking action under paragraph 4 shall afford any
interested Members the opportunity to consult with it in respect of
the conditions of application of such action. Any developing country
Member taking action under subparagraph 1(b) above shall give notice
in writing, indicating the tariff lines affected by the measure and
including relevant data to the extent available, to the Committee on
Agriculture within 30 days of the implementation of the first such
action or, for perishable and seasonal products, the first action in
any period. Developing country Members undertake, as far as
practicable, not to take recourse to the provisions of
subparagraph 1(b) where the volume of imports of the products
concerned are declining. In either case a developing country Member
taking such action shall afford any interested Members the opportunity
to consult with it in respect of the conditions of application of such
action.
10. Where measures are taken in
conformity with paragraphs 1 through 7 above, Members undertake not to
have recourse, in respect of such measures, to the provisions of
paragraphs 1(a) and 3 of Article XIX of GATT 1994 or paragraph 2 of
Article 8 of the Agreement on Safeguards.
[11. No developing country Member shall take
recourse to measures under Article 5 in respect of any product on
which it has imposed additional duties pursuant to the provisions of
this Article.]
[12. This Article shall expire [ ].]
Annex F back to top
Draft [Indicative List of ]
Tropical Agricultural Products and
Products of Particular Importance to the Diversification of Production
from the Growing of Illicit Narcotic Crops (1)
|
HS4 |
HS4 DESCRIPTION |
|
0602 |
Other live plants (including their
roots), cuttings and slips; mushroom spawn. |
|
0603 |
Cut flowers and flower buds of a kind
suitable for bouquets or for ornamental purposes, fresh,
dried, dyed, bleached, impregnated or otherwise
prepared. |
|
0604 |
Foliage, branches and other parts of plants,
without flowers or flower buds, and grasses, mosses and lichens, being
goods of a kind suitable for bouquets or for ornamental purposes, fresh,
dried, dyed, bleached, impregnated or otherwise prepared. |
|
0701 |
Potatoes, fresh or chilled. |
|
0702 |
Tomatoes, fresh or chilled. |
|
0709 |
Other vegetables, fresh or chilled. |
|
0711 |
Vegetables provisionally preserved (for
example, by sulphur dioxide gas, in brine, in sulphur water or in other
preservative solutions), but unsuitable in that state for immediate
consumption. |
|
0713 |
Dried leguminous vegetables, shelled, whether
or not skinned or split. |
|
0714 |
Manioc, arrowroot, salep,
Jerusalem artichokes, sweet potatoes and similar roots and
tubers with high starch or inulin content, fresh, chilled,
frozen or dried, whether or not sliced or in the form of
pellets; sago pith. |
|
0801 |
Coconuts, Brazil nuts and cashew
nuts, fresh or dried, whether or not shelled or peeled. |
|
0802 |
Other nuts, fresh or dried, whether or not
shelled or peeled. |
|
0803 |
Bananas, including plantains,
fresh or dried. |
|
0804 |
Dates, figs, pineapples,
avocados, guavas, mangoes and mangosteens, fresh
or dried. |
|
0805 |
Citrus fruit, fresh or dried. |
|
0807 |
Melons (including watermelons)
and papaws (papayas), fresh. |
|
0810 |
Other fruit, fresh. |
|
0811 |
Fruit and nuts, uncooked or cooked by steaming
or boiling in water, frozen, whether or not containing added sugar or
other sweetening matter. |
|
0812 |
Fruit and nuts, provisionally preserved (for
example, by sulphur dioxide gas, in brine, in sulphur water or in other
preservative solutions), but unsuitable in that state for immediate
consumption. |
|
0813 |
Fruit, dried, other than that of headings
Numbers 08.01 to 08.06; mixtures of nuts or dried fruits of this
Chapter. |
|
0814 |
Peel of citrus fruit or melons (including
watermelons), fresh, frozen, dried or provisionally preserved in brine,
in sulphur water or in other preservative solutions. |
|
0901 |
Coffee, whether or not roasted or
decaffeinated; coffee husks and skins; coffee substitutes
containing coffee in any proportion. |
|
0902 |
Tea, whether or not flavoured. |
|
0904 |
Pepper of the genus Piper; dried or
crushed or ground fruits of the genus Capsicum or of the genus Pimenta. |
|
0905 |
Vanilla. |
|
0906 |
Cinnamon and cinnamon-tree flowers. |
|
0907 |
Cloves (whole fruit, cloves
and stems). |
|
0908 |
Nutmeg, mace and cardamoms. |
|
0909 |
Seeds of anise, badian,
fennel, coriander, cumin or caraway; juniper
berries. |
|
0910 |
Ginger, saffron, turmeric
(curcuma), thyme, bay leaves, curry and other
spices. |
|
1106 |
Flour, meal and powder of the dried
leguminous vegetables of heading no. 07.13, of sago or of roots
or tubers of heading no. 07.14 or of the products of Chapter 8. |
|
1108 |
Starches; inulin. |
|
1202 |
Ground-nuts, not roasted or
otherwise cooked, whether or not shelled or broken. |
|
1203 |
Copra. |
|
1207 |
Other oil seeds and oleaginous fruits,
whether or not broken. |
|
1208 |
Flours and meals of oil seeds or oleaginous
fruits, other than those of mustard. |
|
1211 |
Plants and parts of plants (including
seeds and fruits), of a kind used primarily in perfumery,
in pharmacy or for insecticidal, fungicidal or similar purposes,
fresh or dried, whether or not cut, crushed or powdered. |
|
1212 |
Locust beans, seaweeds and other algae, sugar
beet and sugar cane, fresh, chilled, frozen or dried, whether or not
ground; fruit stones and kernels and other vegetable products (including
unroasted chicory roots of the variety Cichorium intybus sativum) of a
kind used primarily for human consumption, not elsewhere specified or
included. |
|
1301 |
Lac; natural gums, resins,
gum-resins and oleoresins (for example, balsams). |
|
1302 |
Vegetable saps and extracts; pectic
substances, pectinates and pectates; agar-agar and other
mucilages and thickeners, whether or not modified, derived
from vegetable products. |
|
1401 |
Vegetable materials of a kind used
primarily for plaiting (for example, bamboos,
rattans, reeds, rushes, osier, raffia,
cleaned, bleached or dyed cereal straw, and lime bark). |
|
1402 |
Vegetable materials of a kind used
primarily as stuffing or as padding (for example, kapok,
vegetable hair and eel-grass), whether or not put up as a
layer with or without supporting material. |
|
1403 |
Vegetable materials of a kind used
primarily in brooms or in brushes (for example, broomcorn,
piassava, couch-grass and istle), whether or not in
hanks or bundles. |
|
1404 |
Vegetable products not elsewhere specified
or included. |
|
1502 |
Fats of bovine animals, sheep or goats, other
than those of heading no. 15.03. |
|
1504 |
Fats and oils and their fractions, of fish or
marine mammals, whether or not refined, but not chemically modified. |
|
1505 |
Wool grease and fatty substances derived
therefrom (including lanolin). |
|
1507 |
Soya-bean oil and its fractions, whether or
not refined, but not chemically modified. |
|
1508 |
Ground-nut oil and its fractions,
whether or not refined, but not chemically modified. |
|
1511 |
Palm oil and its fractions, whether
or not refined, but not chemically modified. |
|
1512 |
Sunflower-seed, safflower or cotton-seed oil
and fractions thereof, whether or not refined, but not chemically
modified. |
|
1513 |
Coconut (copra), palm kernel
or babassu oil and fractions thereof, whether or not refined,
but not chemically modified. |
|
1515 |
Other fixed vegetable fats and oils (including
jojoba oil) and their fractions, whether or not refined,
but not chemically modified. |
|
1516 |
Animal or vegetable fats and oils and their
fractions, partly or wholly hydrogenated, inter-esterified,
re-esterified or elaidinised, whether or not refined,
but not further prepared. |
|
1517 |
Margarine; edible mixtures or preparations of
animal or vegetable fats or oils or of fractions of different fats or
oils of this Chapter, other than edible fats or oils or their fractions
of heading no. 15.16. |
|
1518 |
Animal or vegetable fats and oils and their
fractions, boiled, oxidised, dehydrated,
sulphurised, blown, polymerised by heat in vacuum or in
inert gas or otherwise chemically modified, excluding those of
heading no. 15.16; inedible mixtures or preparations of animal or
vegetable fats or oils or of fractions of different fats or oils of this
Chapter, not elsewhere specified or included. |
|
1520 |
Glycerol, crude; glycerol
waters and glycerol lyes. |
|
1521 |
Vegetable waxes (other than
triglycerides), beeswax, other insect waxes and spermaceti,
whether or not refined or coloured. |
|
1522 |
Degras; residues resulting from the treatment
of fatty substances or animal or vegetable waxes. |
|
1701 |
Cane or beet sugar and chemically pure
sucrose, in solid form. |
|
1703 |
Molasses resulting from the extraction or
refining of sugar. |
|
1801 |
Cocoa beans, whole or broken,
raw or roasted. |
|
1802 |
Cocoa shells, husks, skins
and other cocoa waste. |
|
1803 |
Cocoa paste, whether or not defatted. |
|
1804 |
Cocoa butter, fat and oil. |
|
1805 |
Cocoa powder, not containing added
sugar or other sweetening matter. |
|
1806 |
Chocolate and other food preparations
containing cocoa. |
|
1903 |
Tapioca and substitutes therefore prepared
from starch, in the form of flakes, grains, pearls,
siftings or in similar forms. |
|
2001 |
Vegetables, fruit, nuts and other edible parts
of plants, prepared or preserved by vinegar or acetic acid. |
|
2004 |
Other vegetables prepared or preserved
otherwise than by vinegar or acetic acid, frozen, other than products of
heading no. 20.06. |
|
2005 |
Other vegetables prepared or preserved
otherwise than by vinegar or acetic acid, not frozen, other than
products of heading no. 20.06. |
|
2006 |
Vegetables, fruit, nuts,
fruit-peel and other parts of plants, preserved by sugar (drained,
glacés or crystallised). |
|
2007 |
Jams, fruit jellies,
marmalades, fruit or nut purée and fruit or nut pastes,
being cooked preparations, whether or not containing added sugar
or other sweetening matter. |
|
2008 |
Fruit, nuts and other edible parts
of plants, otherwise prepared or preserved, whether or not
containing added sugar or other sweetening matter or spirit, not
elsewhere specified or included. |
|
2009 |
Fruit juices (including grape must) and
vegetable juices, unfermented and not containing added spirit, whether
or not containing added sugar or other sweetening matter. |
|
2101 |
Extracts, essences and concentrates,
of coffee, tea or maté and preparations with a basis of these
products or with a basis of coffee, tea or maté; roasted
chicory and other roasted coffee substitutes, and extracts,
essences and concentrates thereof. |
|
2103 |
Sauces and preparations therefore; mixed
condiments and mixed seasonings; mustard flour and meal and prepared
mustard. |
|
2208 |
Undenatured ethyl alcohol of an alcoholic
strength by volume of less than 80 % vol.; spirits, liqueurs and other
spirituous beverages. |
|
2305 |
Oil-cake and other solid residues,
whether or not ground or in the form of pellets, resulting from
the extraction of ground-nut oil. |
|
2306 |
Oil-cake and other solid residues,
whether or not ground or in the form of pellets, resulting from
the extraction of vegetable fats or oils, other than those of
heading no. 23.04 or 23.05. |
|
2401 |
Unmanufactured tobacco; tobacco
refuse. |
|
2402 |
Cigars, cheroots, cigarillos
and cigarettes, of tobacco or of tobacco substitutes. |
|
2403 |
Other manufactured tobacco and manufactured
tobacco substitutes; “homogenised” or “reconstituted” tobacco; tobacco
extracts and essences. |
|
3203 |
Colouring matter of vegetable or animal origin
(including dyeing extracts but excluding animal black), whether or not
chemically defined; preparations as specified in Note 3 to this Chapter
based on colouring matter of vegetable or animal origin. |
|
3301 |
Essential oils (terpeneless or not),
including concretes and absolutes; resinoids; extracted
oleoresins; concentrates of essential oils in fats, in
fixed oils, in waxes or the like, obtained by enfleurage
or maceration; terpenic by-products of the deterpenation of
essential oils; aqueous distillates and aqueous solutions of
essential oils. |
|
5001 |
Silk-worm cocoons suitable for reeling |
|
5202 |
Cotton, not carded or combed |
Annex G back to top
[Draft
List of Products Relating to Long-standing Preferences and Preference
Erosion (1)]
|
Importing Member |
HS4 |
HS4 DESCRIPTION |
|
|
|
Meat of Bovine Animals |
|
EC |
0201 |
Meat of bovine animals, fresh or chilled |
|
EC |
0202 |
Meat of bovine animals, frozen |
|
|
|
Bananas |
|
EC |
0803 |
Bananas, including plantains, fresh or
dried. |
|
|
|
Sugar |
|
EC and United States |
1701 |
Cane or beet sugar and chemically pure
sucrose, in solid form. |
|
EC and United States |
1703 |
Molasses resulting from the extraction
or refining of sugar |
|
|
|
Other Fruits and Vegetables |
|
EC |
Ex 0804 |
Pineapples |
|
EC |
Ex 0806 |
Fresh grapes |
|
EC |
Ex 2005 |
Unshelled beans “Vigna spp, Phaseolus
spp.”, prepared or preserved otherwise than by vinegar or acetic
acid (excl. frozen) |
|
EC |
Ex 2005 |
Vegetables and mixtures of vegetables,
prepared or preserved otherwise than by vinegar, non-frozen (excl.
preserved by sugar.. |
|
EC |
Ex 2008 |
Pineapples, prepared or preserved,
whether or not containing added sugar or other sweetening matter
or spirit.. |
|
EC |
Ex 2008 |
Citrus fruit, prepared or preserved,
whether or not containing added sugar or other sweetening matter
or spirit nes |
|
United States |
Ex 2009 |
Frozen orange juice, unfermented,
whether or not containing added sugar or other sweetening matter
(excl. containing spirit) |
|
EC |
Ex 2009 |
Grapefruit juice, unfermented, Brix
value > 20 at 20°C, whether or not containing added sugar or other
sweetening matter.. |
|
|
|
Beverages and Spirits |
|
EC |
Ex 2207 |
Undenatured ethyl alcohol, of actual
alcoholic strength greater or equal to 80% |
|
EC |
Ex 2208 |
Rum and raffia |
[Provisional Indicative List of
Products Relating to Long-Standing Preferences (2)]
|
HS4
|
HS4 Description
|
|
0201 |
Meat of bovine animals, fresh or chilled |
|
0202 |
Meat of bovine animals, frozen |
|
0207 |
Meat and edible offal, of the poultry of
heading no. 0105, fresh, chilled or frozen |
|
0602 |
Other live plants (including their
roots), cuttings and slips; mushroom spawn |
|
0603 |
Cut flowers and flower buds of a kind
suitable for bouquets or for ornamental purposes, fresh, dried,
dyed, bleached, impregnated or otherwise prepared |
|
0703 |
Onions, shallots, garlic, leeks and
other alliaceous vegetables, fresh or chilled |
|
0708 |
Leguminous vegetables, shelled or
unshelled, fresh or chilled |
|
0709 |
Other vegetables, fresh or chilled |
|
0710 |
Vegetables (uncooked or cooked by
steaming or boiling in water), frozen |
|
0714 |
Manioc, arrowroot, salep, Jerusalem
artichokes, sweet potatoes and similar roots and tubers with high
starch or inulin content, fresh, chilled, frozen or dried, whether
or not sliced or in the form of pellets; sago pith |
|
0802 |
Other nuts, fresh or dried, whether or
not shelled or peeled |
|
0803 |
Bananas, including plantains, fresh or
dried |
|
0804 |
Dates, figs, pineapples, avocados,
guavas, mangoes and mangosteens, fresh or dried |
|
0806 |
Grapes, fresh or dried |
|
0807 |
Melons (including watermelons) and
papaws (papayas), fresh |
|
0808 |
Apples, pears and quinces, fresh |
|
0810 |
Other fruit, fresh |
|
0813 |
Fruit, dried, other than that of
headings 0801 to 0806; mixtures of nuts or dried fruits of this
chapter |
|
0905 |
Vanilla |
|
1001 |
Wheat and meslin |
|
1002 |
Rye |
|
1006 |
Rice |
|
1102 |
Cereal flours other than of wheat or
meslin |
|
1103 |
Cereal groats, meal and pellets |
|
1508 |
Ground-nut oil and its fractions,
whether or not refined, but not chemically modified |
|
1511 |
Palm oil and its fractions, whether or
not refined, but not chemically modified |
|
1513 |
Coconut (copra), palm kernel or babassu
oil and fractions thereof, whether or not refined, but not
chemically modified |
|
1701 |
Cane or beet sugar and chemically pure
sucrose, in solid form |
|
1703 |
Molasses resulting from the extraction
or refining of sugar |
|
1804 |
Cocoa butter, fat and oil |
|
1904 |
Prepared foods obtained by the swelling
or roasting of cereals or cereal products (for example, corn
flakes); cereals (other than maize (corn)) in grain form or in the
form of flakes or other worked grains (except flour, groats and
meal), pre-cooked or ot |
|
2002 |
Tomatoes prepared or preserved otherwise
than by vinegar or acetic acid |
|
2005 |
Other vegetables prepared or preserved
otherwise than by vinegar or acetic acid, not frozen, other than
products of heading no. 2006 |
|
2008 |
Fruit, nuts and other edible parts of
plants, otherwise prepared or preserved, whether or not containing
added sugar or other sweetening matter or spirit, not elsewhere
specified or included |
|
2009 |
Fruit juices (including grape must) and
vegetable juices, unfermented and not containing added spirit,
whether or not containing added sugar or other sweetening matter |
|
2101 |
Extracts, essences and concentrates, of
coffee, tea or maté and preparations with a basis of these
products or with a basis of coffee, tea or maté; roasted chicory
and other roasted coffee substitutes, and extracts, essences and
concentrates thereof |
|
2103 |
Sauces and preparations therefor; mixed
condiments and mixed seasonings; mustard flour and meal and
prepared mustard |
|
2204 |
Wine of fresh grapes, including
fortified wines; grape must other than that of heading no. 2009 |
|
2207 |
Undenatured ethyl alcohol of an
alcoholic strength by volume of 80 % vol or higher; ethyl alcohol
and other spirits, denatured, of any strength |
|
2208 |
Undenatured ethyl alcohol of an
alcoholic strength by volume of less than 80 % vol; spirits,
liqueurs and other spirituous beverages |
|
2309 |
Preparations of a kind used in animal
feeding |
|
2401 |
Unmanufactured tobacco; tobacco refuse |
|
2402 |
Cigars, cheroots, cigarillos and
cigarettes, of tobacco or of tobacco substitutes |
Annex
H* back to top
AGREEMENT ON AGRICULTURE: Annex 2
Running list of proposed changes to
paragraphs 2 through 13
Government Service Programmes
General services (paragraph 2)
(i) Add the following subparagraph (h),
including a footnote, to the existing paragraph 2:
(h) agrarian,
land and institutional
reform[, and any other
programmes related to
food and livelihood security
and rural development,
in developing country
Members,] including services
related to such [reform and
other] programmes.(1)
Text of footnote 1: Such
reform and other programmes
include, inter alia,
settlement programmes, issuance
of property titles,
employment assurance [provision of
infrastructure] nutritional security,
poverty alleviation, soil
conservation and resource
management, and drought
management and flood control.
(ii) Add the following subparagraph (h)
to the existing paragraph 2:
(h) services
relating to agrarian, land
and institutional reform,
food and livelihood
security and rural
development, including issuance
of property titles,
employment assurance, nutritional
security, poverty alleviation,
soil conservation and
resource management, and
drought management and flood
control.
(iii) Add the following subparagraph (h)
to the existing paragraph 2:
(h) Policies and
services related to
farmer settlement, land
reform and the redress
of historical land
ownership structures in
developing country Members.
These services may include
the provision of
infrastructure, land rehabilitation,
soil conservation and
food security programmes to
promote rural development
and poverty alleviation
Public stockholding for food security
purposes(5)
(paragraph 3)
(i) Modify the existing footnote 5 as
follows:
For the purposes of paragraph 3 of this Annex,
governmental stockholding programmes for food security purposes in
developing countries whose operation is transparent and conducted in
accordance with officially published objective criteria or guidelines
shall be considered to be in conformity with the provisions of this
paragraph, including programmes under which stocks of foodstuffs for
food security purposes are acquired and released at administered
prices, provided that the difference between the acquisition price and
the external reference price is accounted for in the AMS.
(ii) Add text at the end of the existing
footnote 5:
… However, acquisition
of stocks of
foodstuffs by developing
country Members with the
objective of supporting
low-income or resource-poor
producers shall not be
required to be
accounted for in the
AMS.
Domestic food aid(6)
(paragraph 4)
(i) Modify the existing footnote 5&6 as
follows:
5&6
For the purposes of paragraphs 3 and 4 of this Annex, the
acquisition of foodstuffs
at subsidized prices when
procured generally from
low-income or resource-poor
producers in developing
country Members with the
objective of fighting
hunger and rural poverty,
as well as the provision of
foodstuffs at subsidized prices with the objective of meeting food
requirements of urban and rural poor in developing countries on a
regular basis at reasonable prices shall be considered to be in
conformity with the provisions of this paragraph.
Direct payments to producers
(paragraph 5)
(i) Add text at the end of the first
sentence and modify the second sentence of the existing paragraph 5 as
follows:
(a) Support provided through direct
payments (or revenue foregone, including payments in kind) to
producers for which exemption from reduction commitments is claimed
shall meet the basic criteria set out in paragraph 1 above, plus
specific criteria applying to individual types of direct payment as
set out in paragraphs 6 through 13 below. Direct
payments shall not be
linked to production
levels, including input
levels therein. When Members
make such payments,
they shall notify the
base period and all
other relevant criteria,
as well the laws,
regulations, and administrative
decisions of such
programmes made under this
provision. Further notifications
under paragraph 5(a) shall
include regular and periodic
information on how the
programmes under this
provision achieve the stated
objectives.
(b) Where exemption from reduction is
claimed for any existing or new type of direct payment other than
those specified in paragraphs 6 through 13, it shall conform to
criteria (b) through (e) in paragraph 6, in addition to the general
criteria set out in paragraph 1.
(ii) Modify the existing paragraph 5 as
follows.
Support provided through direct payments (or
revenue foregone, including payments in kind) to producers for which
exemption from reduction commitments is claimed shall meet the basic
criteria set out in paragraph 1 above, plus specific criteria applying
to individual types of direct payment as set out in paragraphs 6
through 13 below. Where exemption from reduction is claimed for any
existing or new type of direct payment other than those specified in
paragraphs 6 through 13, it shall conform to criteria (b) through (e)
in paragraph 6, in addition to the general criteria set out in
paragraph 1.
(iii) Add text at the end of the existing
paragraph 5:
… On-going payments
shall be based on
activities in a
defined, fixed and
unchanging historical base
period.
(iv) Add subparagraph (c) and modify the
existing paragraph 5 as follows:
(a) Support provided through direct
payments (or revenue foregone, including payments in kind) to
producers for which exemption from reduction commitments is claimed
shall meet the basic criteria set out in paragraph 1 above, plus
specific criteria applying to individual types of direct payment as
set out in paragraphs 6 through 13 below.
(b) Where exemption from reduction is
claimed for any existing or new type of direct payment other than
those specified in paragraphs 6 through 13, it shall conform to
criteria (b) through (e) in paragraph 6, in addition to the general
criteria set out in paragraph 1.
(c) Transparency and Reporting (to be
developed)
Decoupled income support
(paragraph 6)
(i) Modify the existing subparagraphs (a)
and (e) and add a subparagraph (f) as follows:
(a) Eligibility for such payments
shall be determined by clearly‑defined criteria such as of
low levels of income,
status
as a producer or landowner, factor use or production landholding
and production level in a
notified, defined and fixed and unchanging
base period. Developing country
Members who have not
previously made use of
this type of payment,
and thus have not
notified, shall not be
precluded from establishing
an appropriate base
period(7),
which shall be fixed
and unchanging and
shall be notified.
(e) Land, labour,
or any other factor
of production shall
not be required to
be in “agricultural use”
and no production shall be required in order to receive
payments.
(f) Such payments
shall not be made
in conjunction with
AMS support and support
under Article 6.5, if
the sum of such
support, as appropriate(8),
exceeds x per cent
of the annual value
of production of a
given product.
Text of footnote 7: Developing
country Members may not
have the capacity to
fully assess the
impact of innovation in
their agricultural policies.
Accordingly, the base
period of a time-limited
experimental or pilot
programme may not be
taken as the fixed
and unchanging base
period for the purposes
of this paragraph.
Note 8: This is without prejudice to the
final outcome of the negotiations of the amendment of Article 6.5.
(ii) Modify the existing subparagraph (a)
as follows:
(a) Eligibility for such payments
shall be determined by clearly‑defined criteria such as income, status
as a producer or landowner, factor use or production level in a
defined and fixed and unchanging
historical base period.
Government financial participation in
income insurance and income safety-net programmes (paragraph 7)
(i) Modify subparagraphs (a) and (b) as
follows:
(a) Eligibility for such payments
shall be determined by an income loss, taking into account only income
derived from agriculture, which exceeds 30 per cent of average gross
income or the equivalent in net income terms (excluding any payments
from the same or similar schemes) in the preceding three-year period
or a three-year average based on the preceding five-year period,
excluding the highest and the lowest entry, or in
the case of a
developing country Member,
in accordance with
specific criteria which
shall be defined in
national legislation(9). Any producer
meeting this condition shall be eligible to receive the payments.
Text of footnote 9: Includes
administrative orders and
regulations made by the
designated competent authorities.
(b) The amount of such payments shall
compensate only up to
for
less than 70 per cent of the producer’s income loss in the year the
producer becomes eligible to receive this assistance. In
the case of a
developing country Member,
compensation shall only
be up to a
certain proportion of the
producer’s income which
shall be defined in
national legislation(10).
Text of footnote 10: Includes
administrative orders and
regulations made by the
designated competent authorities.
(ii) Add two footnotes to the existing
subparagraphs (a) and (b):
(a) Eligibility for such payments
shall be determined by an income loss(1),
taking into account only income derived from agriculture, which
exceeds 30 per cent of average gross income or the equivalent in net
income terms (excluding any payments from the same or similar schemes)
in the preceding three-year period or a three-year average based on
the preceding five-year period, excluding the highest and the lowest
entry. Any producer meeting this condition shall be eligible to
receive the payments.
Text of the footnote 1: Developing
country Members may
determine the income loss
on an aggregate basis
of the agriculture
sector as a whole
(i.e. not
on an individual
basis) at either a
national or regional
level.
(b) The amount of such payments shall
compensate for less than 70 per cent of the producer’s income loss(2)
in the year the producer becomes eligible to receive this assistance.
Text of footnote 2: If
developing country Members
have based the eligibility
criteria in 7(a) above
on an aggregate basis
of the agriculture
sector as a whole,
the total amount of
payments shall compensate
for less than 70
per cent of the
aggregate income loss
of the agriculture sector
as a whole.
(iii) Modify the existing
subparagraphs (a) and (b) as follows:
(a) Eligibility for such payments
shall be determined by an income loss of the
farm enterprise as a
whole, taking into account only income derived from
agriculture, which exceeds 30 per cent of the
reference income, which is
average gross income or the equivalent in net income terms (excluding
any payments from the same or similar schemes) in the preceding three
five-year period or a three-year average based on the preceding
five-year period, excluding the highest and the lowest entry. Any
producer meeting this condition shall be eligible to receive the
payments from the government.
(b) The amount of such payments
by governments shall compensate for less than
70 per cent of the producer’s income loss in the year the producer
becomes eligible to receive this assistance raise
the producer’s reference
income to no more
than 70 per cent
of the producer’s
reference income.
(iv) Modify the existing
subparagraphs (a), (b) and (c) as follows:
(a) Eligibility for such payments
shall be determined by an income loss, taking into account only income
derived from agriculture, which exceeds 30 per cent of the
reference income, which
is average gross income or the equivalent in net income
terms (excluding any payments from the same or similar schemes) in the
preceding three five-year period or a three-year average based on the
preceding five-year period, excluding the highest and the lowest
entry. Any producer meeting this condition shall be eligible to
receive the payments from the
government.
(b) The amount of such payments
by governments shall in
the year the producer
is eligible to receive
this assistance, raise
the producer’s income to
no more than 70
per cent of the
producer’s reference income.
compensate for less than 70 per cent of the producer’s income loss in
the year the producer becomes eligible to receive this assistance.
(c) The amount of any such payments
shall relate solely to income derived from
agriculture of the
farm enterprises’ as a
whole; it shall not relate to the type or volume of
production (including livestock units) undertaken by the producer; or
to the prices, domestic or international, applying to such production;
or to the factors of production employed.
(v) Modify the existing subparagraphs (a)
and (b) as follows:
(a) Eligibility for such payments
shall be determined by an income loss, taking into account only income
derived from agriculture, which exceeds 30 per cent of the
reference income, which
is average gross income or the equivalent in net income
terms (excluding any payments from the same or similar schemes) in the
preceding three minimum five-year period or a three-year
average based on the preceding five-year period, excluding the highest
and the lowest entry. Any producer meeting this condition shall be
eligible to receive the payments directly or
indirectly from the
government.
(b) The amount of such payments,
directly or indirectly
from the government, shall,
shall compensate for less than 70 per cent of the producer’s income
loss in the year the producer becomes eligible to receive this
assistance contribute only up
to 70 per cent
of the producer’s
reference income.
Payments (made either directly or by
way of government financial participation in crop insurance schemes)
for relief from natural disasters (paragraph 8)
(i) Modify subparagraphs (a) and (b) as
follows:
(a) Eligibility for such payments
shall arise only following a formal recognition by government
authorities that a natural disaster or like disaster (including
disease outbreaks, pest infestations, nuclear accidents, and war on
territory of the Member concerned) has occurred or is occurring; and
shall be determined by a production loss which exceeds 30 percent of
the average of production in the preceding three-year period or a
three-year average based on the preceding five-year period, excluding
the highest and the lowest entry, or in
the case of a
developing country Member,
in accordance with
specific criteria which
shall be defined in
national legislation(11).
Text of footnote 11: Includes
administrative orders and
regulations made by the
designated competent authorities.
(b) Payments made following a
disaster shall be applied only in respect of losses of income,
crop, livestock (including payments in connection with the
veterinary treatment of animals), land or other production factors due
to the natural disaster or other
disaster in question.
(ii) Add a footnote to the existing
subparagraph (a):
(a) Eligibility for such payments
shall arise only following a formal recognition by government
authorities that a natural disaster or like disaster (including
disease outbreaks, pest infestations, nuclear accidents, and war on
territory of the Member concerned) has occurred or is occurring; and
shall be determined by a production loss(3)
which exceeds 30 percent of the average of production in the preceding
three-year period or a three-year average based on the preceding
five-year period, excluding the highest and the lowest entry.
Text of footnote 3: Developing
country Members may
determine the production
loss of the affected
sector(s) or region(s)
on an aggregate basis.
(iii) Modify subparagraph (a) as follows:
(a) Eligibility for such payments
shall arise only following a formal recognition by government
authorities that a natural disaster or like disaster (including
disease outbreaks, pest infestations, nuclear accidents, and war on
territory of the Member concerned) has occurred or is occurring; and
shall be determined by a production loss which exceeds 30 percent of
the average of production in the preceding three-year period or a
three-year average based on the preceding five-year period, excluding
the highest and the lowest entry. In the
case of developing
country Members, payments
for relief from natural
disasters may be
provided to producers when
the estimated production
loss is less than
30 per cent of
the average of
production in the preceding
three-year period or a
three-year average based
on the preceding
five-year period.
(iv) Add to the existing subparagraph (a)
and modify the existing subparagraph (b) as follows:
(a) Eligibility for such payments
shall arise:
(i) In the
case of direct payments
related to disasters only
following a formal recognition by government authorities that a
natural or like disaster (including disease outbreaks, pest
infestations, nuclear accidents, and war on the territory of the
Member concerned) has occurred or is occurring; and shall be
determined by a production loss which exceeds 30 per cent of the
average of production in the preceding three five-year period or a
three-year average based on the preceding five‑year period, excluding
the highest and the lowest entry.
(ii) In the
case of government
financial participation in
crop or production insurance
schemes, eligibility for
such payments shall be
determined by a
production loss which
exceeds 30 per cent
of the average of
production in a period
demonstrated to be
actuarially appropriate.
(iii) In the
case of the
destruction of animals or
crops to control or
prevent pests, diseases,
disease-carrying organisms or
disease-causing organisms named
in national legislation
or international standards,
the production loss may
be less than the
30 per cent of
the average of
production referred to above.
(b) Payments made following a
disaster shall be applied only in respect of losses of income,
crops, livestock (including payments in connection with the
veterinary treatment of animals), land or other production factors due
to the natural disaster in question.
(v) Add to the existing subparagraph (a)
and modify the existing subparagraphs (b) and (d) as follows:
(a) Eligibility
for such payments shall
arise:
(i) In the
case of direct payments
related to disasters Eligibility for such payments shall arise
only following a formal
recognition by government authorities that a natural or like disaster
(including disease outbreaks, pest infestations, nuclear accidents,
and war on the territory of the Member concerned) has occurred or is
occurring; and shall be determined by a production loss which exceeds
30 per cent of the average of production in the preceding three
five-year period or a three-year average based on the preceding
five-year period, excluding the highest and the lowest entry.
(ii) In the
case of government
financial participation in
crop insurance schemes,
eligibility for such
payments shall be determined
by a production loss
which exceeds 30 per
cent of the average
of production in an
actuarially appropriate period.
(iii) In the
case of the
destruction of animals or
crops to control or
prevent diseases named
in legislation or
international standards, the
production loss may be
less than the 30
per cent of the
average of production
referred to above.
(b) Payments made
following a
disaster under paragraph 8 shall be
applied only in respect of losses of income, livestock (including
payments in connection with the veterinary treatment of animals), land
or other production factors or destruction
of animals or crops
due to the natural disaster in question.
(d) Payments made
during a disaster
under paragraph 8 shall not exceed the
level required to prevent or alleviate further loss as defined in
criterion (b) above.
(vi) Add to the existing subparagraph (a)
and modify the existing subparagraphs (b) and (d) as follows:
(a) Eligibility for such payments
shall arise:
(i) In the
case of direct payments,
eligibility shall arise, only following a formal
recognition by government authorities that a natural or like disaster
(including disease outbreaks, pest infestations, nuclear accidents,
and war on the territory of the Member concerned) has occurred or is
occurring; and shall be determined by a production loss which exceeds
30 per cent of the average of production in the preceding
minimum five-year three-year period or a
three-year average based on the preceding five-year period, excluding
the highest and the lowest entry.
(ii) In the
case of government
financial participation in
production insurance schemes,
eligibility shall be
determined by a production
loss which exceeds 30
per cent of the
average of production
in a period that
is actuarially appropriate.
(iii) Where payments
under this paragraph
are made in respect
of the destruction of
animals or crops to
control or prevent a
disease identified by
an appropriate authority,
may arise when the
production loss is
less than the 30
per cent of the
average of production
referred to in
paragraph 8(a)(i) or 8(a)(ii), as applicable.
(b) Payments made under
this paragraph following a disaster shall
be applied only in respect of losses of income, livestock (including
payments in connection with the veterinary treatment of animals), land
or other production factors due to the natural disaster or
destruction of animals
or crops in question.
(d) Payments made under
this paragraph during a disaster
shall not
exceed the level required to prevent or alleviate further loss as
defined in criterion (b) above.
Structural adjustment assistance provided
through investment aids (paragraph 11)
(i) Modify the existing subparagraph (b)
as follows:
(b) The amount of such payments in
any given year shall not be related to, or based on, the type or
volume of production (including livestock units) undertaken by the
producer in any year after a fixed
and unchanging base period, other than as
provided for under criterion (e) below. Developing
country Members who have
not previously [made use of this type
of payment, and thus have not notified] [notified the
usage of this type of payment], shall not
be precluded from
establishing an appropriate
base period [12,
which shall be fixed and unchanging and shall be notified].
Text of footnote 12: Developing
country Members may not
have the capacity to
fully assess the
impact of innovation in
their agricultural policies.
Accordingly, the base
period of a time-limited
experimental or pilot
programme may not be
taken as the fixed
and unchanging base
period for the purposes
of this paragraph.
(ii) Add at the end of subparagraph (a)
and modify the existing subparagraph (b) as follows:
(a) … Such
structural disadvantages must
be clearly defined.
(b) The amount of such payments in
any given year shall not be related to, or based on, the type or
volume of production [the use of factors of production,]
or inputs into the
production (including livestock units) undertaken by the
producer in any year after a fixed
and unchanging historical the base
period, other than as provided for under criterion (e) below.
The base period shall
be notified.
Payments under environmental programmes
(paragraph 12)
(i) Add the following subparagraph (c) to
the existing paragraph 12:
(c) The
conditions spelt out in
paragraphs 12 (a) and (b) above shall not
apply to payments made
by developing country
Members.
(ii) Modify the existing subparagraph (b)
as follows:
(b) The amount of payment shall be
limited to the extra costs or loss of income involved
in complying with the
government programme and
not be related to
or based on the
volume of production.
Payments under regional assistance
programmes (paragraph 13)
(i) Add text at the end of
subparagraph (a) and modify the existing subparagraph (b) as follows:
(a) … Developing
country Members shall be
exempted from the
condition that disadvantaged
regions must constitute a
clearly designated contiguous
geographical area with
a definable economic and
administrative identity.
(b) The amount of such payments in
any given year shall not be related to, or based on, the type or
volume of production (including livestock units) undertaken by the
producer in any year after the fixed and
unchanging historical base period,
which shall be notified,
other than to reduce that production. Developing
country Members who have
not previously made
use of this type
of payment, and thus
have not notified,
shall not be precluded
from establishing an
appropriate base period(13),
which shall be fixed
and unchanging and
shall be notified.
Text of footnote 13: Developing
country Members may not
have the capacity to
fully assess the
impact of innovation in
their agricultural policies.
Accordingly, the base
period of a time-limited
experimental or pilot
programme may not be
taken as the fixed
and unchanging base
period for the purposes
of this paragraph.
(ii) Add text at the end of
subparagraph (a) and modify the existing subparagraphs (b) and (f) as
follows:
(a) … Developing
country Members will be
exempt from the
condition that the
disadvantaged region be a
clearly designated contiguous
geographical area with
a definable economic and
administrative identity.
(b) The amount of such payments in
any given year shall not be related to, or based on, the type or
volume of production (including livestock units) undertaken by the
producer in any year after the fixed and
unchanging historical base period,
which shall be notified,
other than to reduce that production. Developing
country Members should not
be precluded from
utilizing this kind of
payment in the future
in the event that
no base period was
notified. An appropriate
base period which shall
fixed and unchanging
and shall be established
and notified.
(f) The payments shall be limited to
the extra costs or loss of income involved in undertaking agricultural
production (including livestock production) in the prescribed
area.
(iii) Add text at the end of the existing
subparagraph (a) as follows:
(a) … Developing
country Members shall be
exempted from the
condition that disadvantaged
regions must constitute a
clearly designated contiguous
geographical area with
a definable economic and
administrative identity.
(iv) Modify the existing subparagraph (b)
as follows:
(b) The amount of such payments in
any given year shall not be related to, or based on, the type or
volume of production (including livestock units) undertaken by the
producer in any year after the fixed and
unchanging historical base period,
which shall be notified,
other than to reduce that production.
Annex I back to top
Possible New Article 10.2 of the
Agreement on Agriculture
Export Credits, Export
Credit Guarantees or Insurance Programmes
1. General Provisions
1. Subject to the provisions of this
Article, Members shall not, directly or indirectly, provide support or
enable support to be provided for, or in connection with, the
financing of exports of agricultural products, including the credit
and other risks associated therewith [, otherwise than on market
related terms and conditions]. Each Member accordingly undertakes not
to provide export financing support otherwise than in conformity with
this Article [and with the commitments as specified in Members
schedules].
2. Forms and Providers of Export Financing
Support Subject to Discipline
2. For the purpose of this Article, the
term “export financing support” includes any of the following forms of
support for, or in connection with, the financing of exports of
agricultural products:
(a) direct financing support, comprising direct
credits/financing, refinancing, and interest rate support;
(b) risk cover, comprising export credit
insurance or reinsurance and export credit guarantees;
(c) government-to-government credit agreements
covering the imports of agricultural products exclusively from the
creditor country under which some or all of the risk is undertaken by
the government of the exporting country; and
(d) any other form of governmental export credit
support, direct or indirect, including deferred invoicing and foreign
exchange risk hedging.
3. The provisions of this Article shall
apply to export financing support provided by or on behalf of the
following entities, hereinafter referred to as “export financing
entities,” whether such entities are established at the national or at
the sub-national level:
(a) government departments, agencies, or
statutory bodies;
(b) any financial institution or entity engaged
in export financing in which there is governmental participation by
way of equity, provision of loans or underwriting of losses; [and]
(c) [agricultural export state trading
enterprises; and]
(d) any bank or other private financial, credit
insurance or guarantee institution which acts on behalf of or at the
direction of governments or their agencies.
3. Terms and Conditions
4. Export financing support shall be
provided in conformity with terms and conditions set out below. Such
conforming export financing support [shall be deemed to comply with
paragraph 1 above.] [shall not be deemed not to be an export subsidy
for the purposes of this Agreement or of any of the WTO Agreements nor
shall such support be deemed a non-commercial transaction for the
purposes of Article 10.1 of the Agreement on Agriculture.]
[Furthermore, support in the form of export credit insurance,
reinsurance or guarantees shall not be provided in respect of export
financing contracts whose terms and conditions are not otherwise in
conformity with the provisions of this paragraph.]
(a) Maximum repayment term: The maximum
repayment term of a supported export credit, the period beginning at
the starting point of credit(3)
and ending on the contractual date of the final payment, shall be no
more than 180 days(4)
[without exception.][except for:
(i) breeding stock; for which the maximum
repayment period shall be [36] months;
(ii) agricultural vegetable reproduction
material, for which the maximum repayment period shall be [12] months;
(iii) all agricultural products exported
to least-developed and net food-importing developing countries (as set
out in paragraph 7.12), for which the maximum repayment period shall
be [36] months; and
(iv) all agricultural products to
developing country Members under exceptional circumstances (as set out
in paragraph 7.13), in which case the maximum repayment period shall
be [36] months.]
(b) Payment of interest: Interest shall
be payable. “Interest” excludes premiums and other charges for
insuring or guaranteeing supplier or financial credits, banking fees
or commissions relating to the export credit, and withholding taxes
imposed by the importing country.
(c) Minimum interest rate: The applicable
Libor (London Interbank Offered Rate) for the currency in which the
credit is denominated (not inclusive of and separate from risk-premium
reflective of, as the case may be, the buyer/commercial,
country/political and sovereign credit risks covered) plus [a fixed
margin of [ ] basis points] [an appropriate margin sufficient] to
cover the cost of extending such financing (e.g. administrative or
transaction costs) shall be applicable in respect of [direct financing
support] [export financing support] and in respect of invoiced amounts
benefiting from deferred payment under an export contract.
(d) Premiums in respect of coverage of risks
of non-repayment under direct financing support, export credit
guarantees or export credit insurance/reinsurance: Premiums[(5)]
shall be charged, shall [be market-based] [or] [be risk-based] [not
undercut private market pricing], [and shall be adequate to cover
operating costs[(6)]
and losses[(7)]over
a period of [ ]] [and shall ensure that the programme or part of the
programme which is subject to the provisions of these disciplines is
self-financing as defined in paragraph 3.4(g)]. Premiums shall be
expressed in percentages of the outstanding principal value of the
credit and shall be payable in full [at the date of issuance of cover]
[or] [no later than the end if the month following the month in which
the exports are made]. Premium rebates shall not be accorded.
(e) Risk sharing: Cover provided in the
form of [export credit insurance, reinsurance or export credit
guarantees] [export financing support] shall not exceed [ ] per cent
of the value of a transaction.
(f) Foreign exchange risk: Export
credits, export credit insurance, export credit guarantees, and
related financial support shall be provided in freely traded
currencies. Foreign exchange exposure deriving from credit that is
repayable in the currency of the importer shall be fully hedged, such
that the market risk and credit risk of the transaction to the
supplier/lender/guarantor is not increased. The cost of the hedge
shall be incorporated into and be in addition to the premium rate
determined in accordance with this paragraph.
(g) Self-Financing: Export financing
support programmes or parts thereof which are subject to the
provisions of this Article shall be self-financing. Self-financing
shall be considered as the ability of such programmes, or parts
thereof, to operate in a manner by which the premiums charged cover
all operating costs and losses over a period of [1-15] years. [For
this purpose, the providers of export financing support shall keep
separate accounting of the programmes covered by this Article
according to appropriate accounting standards [set out in Annex … to
be developed].]
(h) [Loss preventative measures: [In the
event of an impending or actual default, the export credit financing
entity may employ loss preventative measures to minimize losses.
Immediate debt recovery efforts are preferred. Where immediate debt
recoveries are not practicable, other loss preventative measures may
include a multilateral pari passu, rescheduling of debt or a
bilateral restructuring of debt. Other than as may be agreed in
multilateral pari passu, rescheduled debt, debts with respect
to which less than [ ] per cent of principal has been recovered in [ ]
years shall be considered as unrecoverable to the extent of such
unrecovered amount. Such unrecovered amounts and any debt forgiveness
provided to the obligor shall be considered a loss to the export
credit financing entity.] [Other than may be agreed multilaterally,
pari passu rescheduling debt arrangements, debts shall not be
rescheduled or otherwise restructured in a manner that results in
circumvention of the terms and conditions of this paragraph.]]
(i) [Financing calculations: For the
purpose of determining whether a loan guarantee by a government in
connection with an agricultural export confers a benefit, any
comparison of the amount that the firm receiving the government
guaranteed loan and the amount that the firm would pay on a comparable
commercial loan absent the government guarantee or insured loans must
be made on a direct one-to-one comparison basis. The terms and
conditions must be for the same or equal for each of: tenor; form of
repayment obligation; credit rating of obligor; risk rating of
country; and the time period within which the loan is offered. In
addition, the difference between the two amounts shall be adjusted for
any difference in fees.]
4. Non-conforming Financing Support
5. Export financing support, which does
not conform with the provisions of paragraph 3.4 of this Article or
which is provided in circumstances as may otherwise be allowable under
Article 9 of this Agreement, hereinafter referred to as
“non-conforming export financing,” constitute export subsidies for the
purposes of this Agreement and are therefore, [subject to specific
export financing elimination commitments contained in Members’
Schedules] [to be prohibited by [ ]] [to be eliminated within the
binding levels of Members’ export subsidies elimination Schedules].
5. Implementation
6. [The following additional and specific
disciplines shall be phased in from the first day of the
implementation period of the Doha Round: [ ].]
7. [Over the implementation period the
scope of permitted export financing instruments shall be reduced to
only pure risk cover comprising export credit insurance or reinsurance
and export credit guarantees according to the following timetable [
].]
6. Other Issues
8. Members who operate export financing
programmes in accordance with the provisions of this Article [,
excluding least-developed country Members,] shall comply with the
following transparency requirements:
(a) [on the day of the entry into force of these
provisions, Members concerned shall submit a notification concerning
that Member’s export financing programmes, export financing bodies and
other related matters in the years [ ] to [ ] in accordance with the
format specified in Annex [to be developed] hereto;
(b) After the entry into force of this Agreement
the notification under paragraph 6.8(a) shall be updated at the
beginning of each subsequent year;
(c) At not less than [ ] monthly intervals
Members shall submit a notification to the Committee on Agriculture in
which details are provided of export financing commitments entered
into in accordance with the format specified in Annex [to be
developed] hereto. For each export financing programme, the
notification shall include accounting information referred to under
the self-financing provisions indicating whether the programme was
self-financing during the previous year;
(d) A Member whose export financing programmes
are not in conformity with the disciplines and the self-financing
principle shall provide the Committee on Agriculture information on
any corrective action taken or envisaged to bring the programme back
into conformity.]
(a) [no later than three months after the entry
into force of this Article each Member shall notify the Committee on
Agriculture of any export financing support entity that exceeds the
maximum repayment term of 180 days and is not covered by the
exceptions in paragraph 3.4(a). Failure to notify shall result in
prohibition of use of such programmes;
(b) Each Member operating a non-conforming
export financing support entity shall annually notify the Committee on
Agriculture, at the beginning of each subsequent year, all relevant
data;
(c) Each Member shall annually notify the
Committee on Agriculture, at the beginning of each subsequent year, of
the following information for each entity providing export financing
support. If funds are provided in a foreign currency other than the
Member’s national currency, then the repayment and interest shall be
converted to the Member’s national currency using prevailing market
exchange rates at the time funds are received. The notifications shall
include the following data:
(i) the value of all direct financing
support comprising direct credits, refinancing and interest rate
support granted, including any government-to-government transactions
the value of all risk cover extended in the form of export credit
insurances, reinsurance and export credit guarantees, including any
government-to-government transactions; and the value of all other
support, including, but not limited to, deferred invoicing and foreign
exchange risk hedging;
(ii) the total amount of funds from all
sources including national accounts used to pay claims and the total
amount of reimbursements of funds to such sources including national
accounts in respect of such claims;
(iii) the total amount of revenue earned
from premiums charged and interest earned; and
(iv) the total amount of operating costs,
losses, and the amount of debt forgiven and written off.
(d) If a Member’s annual notification for any
export financing support entity, for three consecutive years, reflects
that the total amount of revenue earned from premiums charged and
interest earned on premium revenue is less than the total of operating
costs and losses, then the Member shall provide a narrative statement
to explain the progress towards self-sustaining activity in the next
year’s report including specific actions to increase premiums, reduce
risk exposure, reduce operating costs and/or recover losses.]
7. Special and Differential Treatment
9. [Developing countries providers of
export credits shall be eligible to benefit from the following
elements:
(a) [Non-conforming export financing
support, as defined in paragraph 4.5, shall be [subject to specific
export financing elimination commitments contained in developing
country Members’ Schedules] [be prohibited by [ ] for developing
countries] [be eliminated within the binding levels of developing
country Members’ export subsidies elimination Schedules];]
(b) [The specific disciplines set out in
Paragraph 5.6][The following additional and specific disciplines]
shall be phased in from [ ]: ;]
(c) [The provisions of paragraph 5.7, shall
be implemented according to the following timetable [ ];]
(d) [The maximum repayment period under
paragraph 3.4(a) shall be no more than [ ] days;]
(e) [The minimum interest rate as provided
for under paragraph 3.4(c) may be adjusted to take into account
withholding taxes on international borrowings and additional
borrowings for capital required to conform to Basel II norms. Such
elements shall not be considered export subsidies for the purpose of
this Article;]
(f) [The premiums charged in accordance with
paragraph 3.4(d) may be market-based and premium rebates may be
provided for under the following circumstances [ ];]
(g) [With respect to the risk sharing
provisions contain in paragraph 3.4(e), 100 per cent of the value of
the transaction may be covered in the form of [export credit
insurance, reinsurance or export credit guarantees] [export financing
support];]
(h) [As an exception to the provisions of
paragraph 3.4(f), developing country Members may hedge in non-freely
traded currencies;]
(i) [The self-financing period contained in
paragraph 3.4(g) for developing countries shall be [at least] [ ]
years;]
(j) [For the purpose of paragraph 3.4(h),
when warranted by genuine financial difficulties the rescheduling of
debt should be on the same terms and conditions as those for
commercial tenders in order to prevent or curtail planned defaults.]]
10. [Developing country Members shall
benefit from a grace period of three years after the entry into force
of this Agreement before being required to comply with the provisions
under paragraph 6.8.]
11. [Export financing entities in
developing country Members which have the objective of preserving
domestic price stability or ensuring food security shall be exempt
from the provisions of paragraph 6.8 of this Article.]
12. Least-developed countries and net
food-importing developing countries as listed in
G/AG/5/REV.8 shall be accorded differential and more favourable
treatment comprising: [ ].
13. In exceptional circumstances which
can not be adequately covered otherwise by international food aid,
commercial export credits or preferential international financing
facilities, Members may provide,
[in respect of exports to developing
and least-developed country Members, where it has been confirmed by [
] that commercial export credits are not available, and where the
absence of export credits would preclude trade, ad hoc temporary
government financing arrangements to underwrite agricultural export
credits that shall comply with the terms and conditions in
Paragraph 4, notwithstanding that they [may charge risk-based
premiums, rather than market-based premiums] [and need not be
self-financing]. Members shall provide ex ante notifications [to be
developed] for such government financing.]
[more favourable terms for export
financing support in respect of exports to developing country Members
experiencing emergency situations may be provided in accordance with
this paragraph. Notwithstanding the terms and conditions of
paragraph 3.4, export financing support provided pursuant to this
paragraph shall be deemed conforming export financing support. An
emergency is defined as a sudden, significant and unusual
deterioration in a developing country Member’s economy and in its
ability to finance current imports of basic foodstuffs, and which may
have far reaching consequences such as social deprivation or unrest.
In the event of such an emergency the importing developing country
Member concerned may request exporting Members to provide more
favourable export financing terms than are otherwise permissible under
this Article. The importing developing country Member concerned shall
notify the Committee on Agriculture in writing of the circumstances
which are considered to justify more favourable terms than are
permitted under the relevant provisions of this Article, together with
details of the products concerned, so as to provide an opportunity for
other interested exporting Members to consider responding to the
request. Where commitments are made to provide more favourable credit
terms and conditions in response to such a request, details of the
committed terms and conditions shall be notified by the exporting
Member or Members concerned to the Committee on Agriculture. The
maximum repayment term permitted under this exception shall not exceed
[36] months.]
14. [Members shall ensure that, in the
event that exceptional circumstances provided for under the preceding
paragraph arise, actions will be taken strictly consistent with the
terms and conditions of that paragraph so as not to undermine or
circumvent their export subsidy commitments and obligations under this
Agreement.]
Annex J back to top
Possible new Article 10 bis of
the Agreement on Agriculture
Agricultural Exporting State Trading
Enterprises
1. Members shall ensure that agricultural
exporting state trading enterprises are operated in conformity with
the provisions specified below and, subject to these provisions, in
accordance with Article XVII, the Understanding on the Interpretation
of Article XVII and other relevant provisions of GATT 1994, the
Agreement on Agriculture and other WTO agreements.
1. Entities
2. For the purpose of this Article, an
agricultural exporting state trading enterprise shall be considered to
be :
Any governmental or non-governmental enterprise,
including a marketing board, which has been granted [or which enjoys
de facto as a result of its governmental or quasi-governmental
status] exclusive or special rights [or] privileges [or advantages
with respect to exports of agricultural products], including statutory
or constitutional powers, in the exercise of which the enterprise
influences through their export sales the level or direction of
agricultural exports.
2. Disciplines
3. In order to ensure the elimination of
trade-distorting practices with respect to agricultural exporting
state trading enterprises as described above, Members shall:
(a) eliminate by [the end of 2013] for developed
country Members, and by [ ] for developing country Members [, in
parallel with the elimination of export subsidies]:
(i) those export subsidies, defined by
Article 1(e) of the Agreement on Agriculture, which are currently
provided to or by an agricultural exporting state trading enterprise,
consistent with Members export subsidy commitments and the provisions
of Article 9.4 of the Agreement on Agriculture;
(ii) government financing of exporting
state trading enterprises [including, inter alia], preferential
access to capital or other special privileges with respect to
government financing or re-financing facilities, borrowing, lending or
government guarantees for commercial borrowing or lending, at below
market rates; and
(iii) government underwriting of losses,
either directly or indirectly [including] losses or reimbursement of
the costs or write-downs or write-offs of debts owed [to, or] by
export state trading enterprises on their export sales.
(b) [Ensure that the use of monopoly powers by
such enterprises is not exercised in a manner which, either de jure
or de facto [effectively] circumvents, or threatens to
circumvent, the provisions set out in paragraphs 1 and 2.3(a) above [,
it being understood also that where the use of such powers would, to
all practical intents and purposes, amount to a difference in form
rather than substance from introduction or maintenance of an export
subsidy per se, such use is prohibited.] [[Prohibit] [Phase-out] by [
] [the end of 2013] the use of monopoly powers for such enterprises,
after which Members shall not restrict the right of any interested
entity to export, or to purchase for export, agricultural products.]
3. Special and Differential Treatment
4. [Notwithstanding paragraph 2.3 (b)
above (8):
(a) agricultural state trading enterprises in
developing country and least-developed country Members which enjoy
special privileges to preserve domestic consumer price stability and
to ensure food security will be permitted to maintain or use monopoly
powers for agricultural exporting [until [ ]] to the extent that they
would not be otherwise inconsistent with other provisions of this
Agreement and other WTO Agreements; [and]
(b) [where a developing or least-developed
country Member has an agricultural exporting state trading enterprise
with export monopoly powers, that enterprise may continue also to
maintain or use those powers [until [ ]] even if the purpose for which
that enterprise has such privileges could not be deemed to be
characterised by the objective: “to preserve domestic consumer price
stability and to ensure food security”. Such an entitlement, however,
would be permissible only for such an enterprise whose share of world
exports of the agricultural product or products concerned is less than
[ ] per cent, such that the entity’s share of world exports of the
product or products concerned does not exceed that level in [ ]
consecutive years, and to the extent that the exercise of those
monopoly powers is not otherwise inconsistent with other provisions of
this Agreement and other WTO Agreements.]]
4. Monitoring and Surveillance
5. Any Member that maintains an
agricultural exporting state trading enterprise shall notify [to the
Committee on Agriculture] [on an annual basis] relevant information
regarding the enterprise’s operations. This will, consistent with
standard WTO practice and normal commercial confidentiality
considerations, require timely and transparent provision of
information on any and all exclusive or special rights [or] privileges
[or advantages] granted to such enterprises within the meaning of
paragraph 1 above sufficient to ensure effective transparency. This
will include [acquisition costs and export sales on a
transaction-by-transaction basis. Members shall notify any benefits,
not otherwise notified under other WTO disciplines, that accrue to a
state trading export enterprise from any special financial privileges.
At the request of any Member, a Member maintaining a state trading
export enterprise shall provide any specific information requested
concerning all operations relating to the enterprise’s export sales of
agricultural products.] [the product exported, the volume of the
product exported, the export price and the export destination.]
Annex K back to top
Possible New Article 10.4 of the
Agreement on Agriculture
International Food Aid
1. Members reaffirm their commitment to
maintain an adequate level of international food aid (hereinafter
referred to as food aid (9)),
to take account of the interests of food aid recipients and to ensure
that the disciplines contained hereafter do not unintentionally impede
the delivery of food aid provided to deal with emergency situations.
1. General Provisions
2. Members shall ensure that all food aid
transactions are provided in conformity with the following provisions:
(a) they are needs-driven;
(b) they are provided in fully [or, in the event
of an exceptional situation, less than fully] grant form;
(c) they are not tied directly or indirectly to
commercial exports of agricultural products or of other goods and
services;
(d) they are not linked to the market
development objectives of donor Members; and
(e) agricultural products provided as food aid
shall not be commercially re-exported. Non-commercial re-exportation
is permissible, but only where, for logistical reasons and in order to
expedite the provision of emergency food aid for another [affected]
[country] in an emergency [humanitarian] situation, this occurs as an
integral part of a food aid transaction initiated by a relevant United
Nations agency [relevant regional or international intergovernmental
agency or organization] [or non-governmental humanitarian organization
or private charitable body].
3. The provision of food aid shall take
fully into account local market conditions of the same or substitute
products. Members shall refrain from providing in-kind food aid in
situations where this would create, or would risk to create an adverse
effect on local or regional production of the same or substitute
products. Members are encouraged to procure food aid from local or
regional sources to the extent possible, provided that the
availability and prices of basic foodstuffs in these markets are not
unduly compromised.
2. Safe Box for Emergency Food Aid
4. To ensure that there is no unintended
impediment to the provision of food aid during an emergency
[humanitarian] situation (10), food aid provided under such
circumstances shall be exempt from the provisions of paragraph[s] [ ]
, provided that there has been:
(a) a declaration of an emergency by the
[affected] [recipient] country [, or, the Secretary-General of the
United Nations]; and
(b) an assessment of need undertaken by [a
country][,] a relevant United Nations agency, including the World Food
Programme and the United Nations Consolidated Appeals Process; the
International Committee of the Red Cross and the International
Federation of Red Cross and Red Crescent Societies [, a relevant
regional or international intergovernmental agency or organization, a
non-governmental humanitarian organization or private charitable body
working in collaboration with the recipient government]; and
(c) an emergency appeal from [a country][,] a
relevant United Nations agency, including the World Food Programme and
the United Nations Consolidated Appeals Process; the International
Committee of the Red Cross and the International Federation of Red
Cross and Red Crescent Societies [, a relevant regional or
international intergovernmental agency or organization, a
non-governmental humanitarian organization or private charitable body
working in collaboration with the recipient government].
5. [A notification will be required on an
ex-post basis by donors [and the relevant international agency or
organization] in order to ensure transparency.]
6. [Recognising that there can be
exceptional circumstances such that to wait for an emergency appeal as
described in paragraph 2.4 above would result in an unacceptable delay
in the provision of food aid, food aid may be provided in response to
an urgent request from the country concerned. In such cases, the donor
Member shall notify the Committee on Agriculture no later than [ ]
after the provision of such aid. [Food aid provided under this
paragraph shall be limited to the period of the immediate aftermath of
the emergency, and thereafter shall be subject to the provisions of
paragraph 2.4.] In such circumstances, an ex-post declaration of
appeal by an organization or agency listed in paragraph 2.4 above
shall be deemed to be in conformity with that paragraph.]
7. The provision of food aid in
conformity with paragraph 2.4 [,2.5 and 2.6] may be provided for [as
long as necessary] [as long as the emergency lasts] [a period of [ ]
months, after which the continuation of such food aid under the Safe
Box shall be] subject to an assessment of continued genuine need as a
result of the initial onset of the emergency. The assessment of
continued need shall be conducted by [the triggering organization or
agency] [or] [in co-operation with] [the recipient country].
8. [“Cash-based” food aid that is
conformity with the other provisions of this Agreement will be
included in the safe box and be presumed to be in conformity with
Article 10.1 of the Agreement on Agriculture.]
3. Disciplines for Food Aid in
Non-emergency Situations
9. [In addition to the provisions of
paragraphs 1.2 and 1.3, in-kind food aid provided in situations other
than defined in paragraphs 2.4 [, 2.5 and 2.6], shall be:
(a) [based on an assessment of need [by an
identified multilateral third party organization, including
humanitarian non-governmental organizations working in partnership
with specialized United Nations agencies] [in accordance with the
following [ ]];
(b) targeted to an identified vulnerable
population group; and
(c) provided to address specific developmental
objectives or nutritional requirements.]
[phased out by the end of 2013 for developed
country Members and by end [ ] for developing country Members [in
accordance with the following timetable [ ]] [in parallel with the
elimination of export subsidies].]
10. [The monetisation of in-kind food aid
shall be phased-out by the end of 2013 for developed country Members
and by end [ ] for developing country Members [in accordance with the
following timetable [ ]] [in parallel with the elimination of export
subsidies].] [The monetisation of in-kind food aid shall be prohibited
except where is it necessary to fund activities that are directly
related to the delivery of the food aid to the recipient[,] [or for
the procurement of agricultural inputs]. Such monetisation shall be
carried out under the auspices of a relevant United Nations agency and
the recipient government.] [Food aid may be monetised to implement
food security activities, targeted to chronic and acute food insecure
populations. For this purpose, Member donors shall prepare for those
recipients in which monetisation will occur a commercial import
requirement (CIR). The CIR shall include a market analysis to show
that the monetisation of the commodity in the recipient country will
not result in a disincentive to or interference with the commercial
import trends or create a disincentive to domestic production. The CIR
shall include:
(a) rationale for monetisation;
(b) proposed mechanics of the monetisation –
commodity selection and methods of sales;
(c) utilisation of monetised proceeds; and
(d) plan for safeguarding the monetised
proceeds.]
11. [Non-emergency in-kind food aid
provided in conformity with the provisions of paragraphs 1.2, 1.3 and
3.9 shall not be considered to cause commercial displacement and
therefore not circumvent Members’ export subsidy commitments.]
12. Food aid donor Members shall be
required to notify to the Committee on Agriculture, on an annual
basis, the following data [ ].
Annex L back to top
Export Prohibitions and Restrictions
[Possible Amendment to Article 12.1
of the Agreement on Agriculture(11)]
1. [In order to
strengthen the existing disciplines on export prohibitions and
restrictions of Article XI of GATT 1994, Article 12 of the Agreement
on Agriculture shall be modified to include the following elements:
(a) [Existing prohibitions or restrictions in
Members territories shall be notified to the Committee on Agriculture
within 90 days of the coming into force of these provisions.
(b) As provided in paragraph 7 of Article 18 of
the Agreement on Agriculture, any Member may bring to the attention of
the Committee on Agriculture such measures which it considers ought to
have been notified by another Member.
(c) As of day one of the implementation period,
a term of one year shall be established for the elimination of those
export prohibitions or restrictions in foodstuffs and feeds.
(d) The above is proposed notwithstanding that,
any Member instituting export prohibitions or restrictions and the
affected importing Member may agree to set a term exceeding one year,
as long as the term agreed on is not in excess of 18 months. Notice
shall be given to the Committee on Agriculture of the agreement
reached in this respect.
(e) A Member instituting those measures shall
give notice of the causes that justify its keeping it.
(f) A biannual surveillance mechanism shall be
established in the Committee on Agriculture for the observance of
obligations described in subparagraphs (c) and (d).]
Annex M back to top
[Commodity Arrangements Understanding
on the Provisions of Articles XX(h) and XXXVIII of GATT 1994
(12)]
1. [The term “arrangements” in
Article XXXVIII of GATT 1994 is understood to cover both:
(a) Commodity agreements of which all interested
producing and consuming countries are parties; and
(b) Agreements of which only commodity-dependent
producing countries are parties.
Such producers’ agreements may be negotiated by
the producing countries themselves or adopted after negotiations
undertaken under the auspices of UNCTAD or International Commodity
Organizations. They may be negotiated on an international or regional
basis and may provide for participation of associations of producers.]
2. [The exception provided by Article XX(h)
which permits member countries or intergovernmental commodity
agreements, to apply export restrictions and other measures that may
not be consistent with the rules of GATT, provided that they are
necessary for the attainment of their objectives, shall also apply to
the agreements in which commodity-dependent producing countries only
participate.]
3. [It shall [further] be reaffirmed that
the existing rules permitting countries to impose taxes on exports for
the attainment of development and other objectives, including those
relating to the stabilization of prices of primary commodities, shall
also apply to export taxes levied in pursuance of such agreements.]
[4. Technical and financial assistance shall
be provided to commodity dependant exporting countries to assist them
in the diversification and periodic review of developments in the
world commodity markets and their impact on their economies.]
__________
Footnotes
5 This text was
first distributed as document Number 2601 on 10 May 2005. The text and
Members’ submissions of ad valorem equivalents of bound non
ad valorem tariffs can be found on the Members’ website. back to text
6 Secretariat
notes
TN/AG/S/11, S/11/Add. 1 and S/11/Add. 2 describe the incidence of
final bound non-ad valorem duties in Members’ WTO Schedules. back to text
7 It should be
noted that the majority of non-ad valorem tariffs is bound at
the HS-eight-digit level. In the event that a Member has bound its
non-ad valorem tariffs at a more disaggregated (or more
aggregated) level, the IDB import unit values will be calculated at
that more disaggregated (or more aggregated) level. back to text
8 For the
calculation of weighted averages, see paragraph 11 above. back to text
9 In the
country tables of the monthly editions of the International
Financial Statistics the annual average market exchange rate can
be found in line “rf” of the exchange rates section. back to text
10 To be
distributed separately. back to text
1 The list is
that proposed by Canada in JOB(06)/166 and is included here
provisionally only. The ultimate list would need to be agreed
specifically in accordance with the particular proposal adopted in the
main text. back to text
2 The test
for determining tariff escalation will require examination of national
schedules with detail beyond the 6 digit level. back to text
3 This does
not preclude the possible addition of additional products within
Chapter 17 and 18 that can be linked back to the primary product. back to text
1 This draft
is a composite for provisional and discussion purposes derived from
JOB(06)/168 and JOB(06)/171. back to text
2 A quota
fill rate shall be deemed to be below 85 per cent unless notified
otherwise by the relevant Member to the Committee on Agriculture. back to text
3 As notified
to the Committee on Agriculture by the relevant Member. back to text
1 A shipment
shall not be considered for purposes of this subparagraph or
paragraph 5 unless the volume of the product included in that shipment
is within the range of normal commercial shipments of that product
entering into the customs territory of that developing country Member.
back to text
2 The trigger
price used to invoke the provisions of this subparagraph shall, in
general, be based on the average monthly c.i.f. unit value of the
product concerned, or otherwise shall be based on a price that
appropriately reflects the quality of the product and its stage of
processing. The trigger price shall, following its initial use, be
publicly disclosed and available to the extent necessary to allow
other Members to assess the additional duty that may be levied. back to text
1 This list
is derived from that included in JOB(06)/129 by Bolivia, Colombia,
Costa Rica, Ecuador, Guatemala, Nicaragua, Panama and Peru. The items
in bold are also found in the Indicative List of Tropical Products
used in the Uruguay Round. back to text
1 This list
is derived from the WTO Staff Working Paper, “Non-Reciprocal
Preference Erosion Arising From MFN Liberalization in Agriculture:
What Are The Risks?” and included in the Chairman’s reference paper on
long-standing preferences and preference erosion (document Number
3842). back to text
2 This list
was submitted by the ACP Group in JOB(06)/204 of 21 June 2006. back to text
* The following symbols have been used:
1) Italicised text in bold indicates proposed
additions/revisions and strike-out indicates proposed deletions of the
relevant provisions of the Agreement on Agriculture.
2) Square-bracketed text indicates alternative
proposals. back to text
3 The
“starting point of a credit” shall be [no later than the weighted mean
date or actual date of the arrival of the goods in the recipient
country for a contract under which shipments are made in any
consecutive six-month period] [the date of the contract of sale for
the purposes of export] [the date of export]. back to text
4 [In case of
non-payment within the agreed re-payment period the exporter shall be
entitled to claim indemnification from the export credit agency only
within a fixed period of time which shall not exceed [ ] months.] back to text
5 Premiums
shall be defined as [ ] back to text
6 Operating
costs shall be defined as [ ] back to text
7 Operating
losses shall be defined as [ ]
back to text
8 This would
only apply in the event that the second option in that sub-paragraph
was agreed. Otherwise this foreshadowed provision would be
redundant. back to text
9 Unless otherwise specified, the term
food aid is used to refer to both in-kind and cash-based food aid
donations. back to text
10 [For the purpose of this Article, an
emergency [humanitarian] situation is defined as an urgent situation
in which there is clear evidence that an event or series of events has
occurred which causes human suffering or imminently threatens human
lives or livelihoods and which the government concerned has not the
means to remedy: and it is a demonstrably abnormal event or series of
events which products dislocation in the life of a community on an
exceptional scale. The event or series of events may comprise one or a
combination of the following:
(i) sudden calamities such as earthquakes,
floods, locust infestations and similar unforeseen disasters;
(ii) human-made emergencies resulting in an
influx of refugees, or the internal displacement of populations, or in
the suffering of otherwise affected populations;
(iii) food scarcity conditions owing to
slow-onset events such as drought, crop failures, pests and diseases
that result in an erosion of the capacity of communities and
vulnerable populations to meet their food needs;
(iv) severe food access or availability
conditions resulting from sudden economic shocks, market failure or
economic collapse that result in an erosion of the capacity of
communities and vulnerable populations to meet their food needs; and
(v) a complex emergency for which the
government of the affected country or the Secretary-General of the
United Nations has requested the support of the World Food
Programme.] back to text
11 Proposal
submitted by the G-20 in JOB(06)/147 of 18 May 2006 is included here
for illustrative purposes only at this point. back to text
12 This text
is based on a proposal received from the African Group (TN/AG/GEN/18
of 7 June 2006). back to text |
AGRICULTURE:
MODALITIES ON AGRICULTURE