2005/7/22 4901512 G10 Common Position On Sensitive Products The

2005/7/22 #490151.2 g10 common position on sensitive products the treatment of sensitive products is an integral part of the market ac

2005/7/22 #490151.2
G10 common position on Sensitive Products
The treatment of sensitive products is an integral part of the market
access pillar and must be negotiated and decided upon in tandem with
the reduction formula for other products. Indeed, the issue of
sensitive products is closely related to that of the tariff reduction
formula. The level of ambition in the tiered formula and the need for
flexibilities in sensitive products are closely linked. The paper sets
out the G10 common position on sensitive products. It is without
prejudice to further revision of G10’s positions in light of the
development of the negotiations on the tariff reduction formula and
other aspects of the market access issues:
1.
Number of Sensitive Products
*
Given that sensitivities and NTCs vary across Members, the
number of sensitive prod­ucts cannot be arbitrarily set, but
must reflect the situation of each Member. Within this
num­ber, a Member shall be given full discretion to select its
own sensitive products.
*
In negotiating the number, the tariff structure is the key
element to be considered. It is shaped by “existing
commitments” such as the number of TRQs, the number of tariff
lines bound at zero, the number of the tariff lines subject to
minimum cuts in the Uruguay-Round and the number of ceiling
binding in each Member’s schedule, and these should be duly
taken into account. In order to reflect the situation of each
Member, both developed and developing Members must be allowed
to designate an appropriate number of sensitive products. The
number will be affected by the negotiation on tariff reduction
formula.
2.
Treatment of Sensitive Products
a) Basic concept of sensitive products
*
Sensitive products shall be taken out of the tariff reduction
formula for other products and put into a separate box,
regardless of their tariff levels.
*
The magnitude of market access improvement for sensitive
products should be substan­tial while, by definition, less
than that for other products. Market access improvement for
these products will be achieved through combinations of tariff
reductions and tariff quota commitments such as tariff quota
expansion, improvement of tariff quota administra­tion and
reduction of in-quota tariff rates, etc.
b) Standard combination
*
Sensitive products will be, in principle, subject to a
standard combination of tariff cut and TRQ commitments for
each product.
*
Deviation from the standard combination should be designed
based on a sliding scale mechanism, under which the degree of
the commitment for one element will slide in accor­dance with
the degree of the commitment for the other. In other words, if
a commit­ment smaller than the standard is applied for tariff
reduction element, a larger com­mitment than standard is
applied for tariff quota element, and vice versa.
c) Tariff reductions and TRQ commitments
*
The magnitude of tariff reductions and TRQ commitments in the
standard combination should be discussed at the later stage,
in parallel with the discussion on the figures in the tariff
reduction formula.
*
The treatment of these issues, including a base for TRQ
expansion, will reflect various elements affecting
sensitivities, including present and future supply and
de­mand, consumption patterns, and NTCs.
d) Special and differential treatment
*
In accordance with Paragraph 39 of the agreed Framework,
special and differential treatment for developing country
Members, including the selection number and treat­ment of
sensitive products, is an integral part of the negotiation.
*
In dealing with the selection of sensitive products, the issue
of longstanding prefer­ences should be duly taken into
account.
______________________
Drafting language
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Treatment:
*
Sensitive products shall be taken out of the tariff reduction
formula for other products. The magnitude of market access
improvement for sensitive products will be less than that for
other products.
*
Market access improvement for these products will be achieved
through a standard combination, to be negotiated, of tariff cut
and TRQ commitments for each product. Deviations from the standard
combination will be possible along a sliding scale system, to be
negotiated.
Selection:
*
Each Member may designate an appropriate percentage number [n], to
be negotiated, of tariff lines to be treated as sensitive. This
number will vary according to its tariff structure including
existing commitments for these products.