The State of Play in NAMA

Transcription

1 The State of Play in NAMA 1

2 Basic framework for negotiating tariff concessions Modalities Defining the rules of the game GATT Article XXVIII bis Tariff reduction: which option? Request/Offer? Sectoral? Formula? If so, which one? New bindings: how many? at what level? Implementation period S&D / Flexibility provisions Postmodalities Members prepare and submit offers Multilateral verification Final Schedules of concessions 2

3 The formula Where, t1 = Final bound rate of duty t0 = Base rate of duty Fourth revision says: Simple Swiss formula with four coefficients a = 8 : Coefficient for developed Members Coefficient for developing countries: sliding scale with 3 options: X =, Y = 22, Z = 25 depending on flexibilities chosen (to be chosen as provided in paragraph 7) (more in a moment...) 3

4 Elements of the Formula 6. (a) Product coverage shall be comprehensive without a priori exclusions. (b) Tariff reductions or elimination shall commence from the bound rates after full implementation of current concessions; however, for unbound tariff lines, a constant, non-linear mark-up shall be applied to establish base rates for commencing tariff reductions as follow: applied rate plus 25 percentage points. (c) The base year for MFN applied tariff rates shall be 01 (applicable rates on 14 November). (d) All non-ad valorem duties shall be converted to ad valorem equivalents on the basis of the methodology outlined in document TN/MA/ and bound in ad valorem terms. (e) The reference period for import data shall be (f) The first reduction shall be implemented on 1 January of the year following the entry into force of the DDA results and each successive reduction shall be made effective on 1 January of each of the following years, except as otherwise provided. The tariff reductions for developed Members shall be implemented in 5 years (i.e. 6 equal rate reductions) and for developing Members in 10 years (i.e. 11 equal rate reductions), except as otherwise provided. 4

5 Setting the base rate Bound rates Unbound rates 01 MFN applied Mark-up (+25 pts) Base rates Formula New Bound rates 5

6 Formula flexibilities (Paragraph 7) Fourth revision says: Sliding scale : Set of 3 options for an increased number of tariff lines for flexibilities in exchange of a lower coefficient: Swiss- = 14% lines with half-cut and 16% import cap; or 6.5% lines with no-cut and 7.5% import cap Swiss-22 = 10% lines with half-cut and 10% import cap; or 5% lines with no-cut and 5% import cap Swiss-25 = no flexibilities Anti-concentration : Formula needs to be applied on a minimum of % of lines or 9% of value in each HS Chapter Specific situations: Mercosur, Oman, South Africa (SACU), Argentina?, Venezuela? 6

7 Members with low binding coverage Fourth revision says: 12 developing countries qualify A tiered approach based on existing binding coverage for non-agricultural products: Band Current binding coverage Share of lines to bind At an average of 8(a)(ii) Higher than 15% 80% 30% 8(a)(i) At or below 15% 75% 30% 7

8 Small, Vulnerable Economies (SVEs) Fourth revision says: Eligibility is less than 0.1% of world NAMA trade SVEs would not apply the formula, but rather reduce to a target average - 4 bands according to AVG of bound: Special cases: Bolivia, Fiji, Gabon Band If AVG of bound: Reduce to a new AVG of: 13(a)(i) At or above 50% 30% 13(a)(ii) % 27% 13(a)(iii) + 30% 18% 13(a)(iv) -% Min. line-by-line reduction of 5% on 95% of lines, or equivalent 8

9 Recently Acceded Members (RAMs) Fourth revision says: List of 11 Members (Low Income Economies in Transition; Very Recently Acceded Members) that shall make no tariff reductions RAMs with less than 0.1% of world NAMA trade shall have access to SVE treatment RAMs applying the formula shall have 3 years extended implementation period 9

10 Least Developed Country Issues Fourth revision says: Transparency on products that will be covered by DFQF on a date to be determined prior to the date of the Special Session of the Ministerial Conference to be held to take decisions regarding the adoption and implementation of the results of the negotiations in all areas of the DDA Developed Members shall... provide meaningfully enhanced market access for all LDCs. Monitoring mechanism in the CTD to track future steps to fully implement the Decision. Details remain to be negotiated by the NGMA Technical assistance and capacity building support should be provided through EIF and Aid for Trade. 10

11 What is the issue? Example: Cotton trousers in the US Market 16.6% 0% 5.4% MFN Suppliers (e.g. Ban., Chn., etc.) Preferential Suppliers (e.g. AGOA, CBI, etc.) 11

12 What is the issue? Example: Tuna in the EC-27 Market 24% 0% 6% Swiss-8 MFN Suppliers (e.g. Phil., Tha., etc.) Preferential Suppliers (e.g. ACP, EBA) 12

13 Non-reciprocal preferences Fourth revision says: Two principal preference-granting markets (EC and US) granted: 5 years extended implementation period (i.e. 10 years) Of which 2 years should be a grace period (i.e. no cut) 57 TLs for the EC; 29 TLs for the USA Preference granting Members urged to increase their assistance through EIF and A4T; simplify ROs Disproportionately affected Members should be granted normal implementation period, through a waiver, on a sub-set of lines: In the EC: Pakistan and Sri Lanka. In the USA: Bangladesh, Cambodia, Nepal, Pakistan and Sri Lanka 13

14 Example: Trousers in the US Market Type of red. Base rate Red. per year (%) Normal Annex Dif

15 Example: Tuna in the EC-27 Market Type of red. Base rate Red. per year (%) Normal Annex Dif

16 Non-Tariff Barriers (NTBs) Fourth revision says: Text based negotiations should continue on proposals after modalities are established. Seven of them merit particular attention Aim is to finalize discussions on proposals as early as possible for their inclusion in any final package in NAMA Members should pay attention to any systemic or cross-cutting issues, including those relating to the TBT Agreement, that may arise from these proposals Negotiations on bilateral requests should proceed in tandem. Need to multilateralize the outcomes through inter alia incorporating them where appropriate into Part III of the schedules 16

17 Sectoral negotiations Fourth revision says: Participation in sectorals remains on a non-mandatory basis, but there will be an annex with Members who have agreed to participate... in negotiating the terms of sectoral tariff initiatives, with a view to making them viable But this participation shall not prejudge a Member's decision to participate in that sectoral initiative New proposals on sectors/subsectors may be submitted S&D to be defined sector by sector Chair said (JOB(08)/133): a very big hurdle to jump clever drafting will not do the trick and forge the consensus 17

18 Other Supplementary modalities: request/offer approach Elimination of low duties: voluntary Non-agricultural environment goods: Committee on Trade and Environment in Special Session working on understanding of environmental goods. Objective: reduction or, as appropriate, elimination of tariffs and NTBs Capacity building measures: to enable Members in early stages of development and in particular LDCs to take advantage of increased market access opportunities through diversification of exports and markets, and to meet technical standards requirements and address other NTBs: EIF for LDCs and Aid for Trade 18

19 Thank you! 19