WORLD TRADE
ORGANIZATIONTN/MA/W/6/Add.1
7 January 2003
(03-0025)
Negotiating Group on Market Access Original:  English
MARKET ACCESS FOR NON-AGRICULTURAL PRODUCTS
Contribution Paper from Korea
Addendum
The following communication, dated 27 December 2002, has been received from the
Permanent Mission of Korea.
_______________
I. INTRODUCTION
1. As a result of reductions in tariffs and non-tariff barriers since the end of the Uruguay Round
of negotiations, market access for non-agricultural products has substantially improved.  However,
WTO Members still face various barriers to trade in non-agricultural products, including tariff peaks,
high tariffs and tariff escalation.
2. The Doha Development Agenda provides Members with the opportunity to deal with the
remaining trade barriers for non-agricultural products.  Indeed, the Doha Ministerial Declaration sets
out an ambitious goal for negotiations on non-agricultural products.  Paragraph 16 of the Doha
Ministerial Declaration calls upon Members to reduce or as appropriate eliminate tariff peaks, high
tariffs and tariff escalation taking fully into account the special needs and interests of developing and
least-developed country participants.
3. Korea is of the view that Members must make conscientious efforts to meet the ambitious
mandate of the Doha Ministerial Declaration.  Korea has already presented its views on the major
elements of negotiations on non-agricultural products through its first submission (TN/MA/W/6).
This submission elaborates on Korea’s first submission, focusing on the modalities for negotiations.
II. PRINCIPLES
4. Korea believes that negotiations on modalities should be based on the following principles:
(a) The outcome should ensure balance of benefits between developed and developing country
Members.
(b) The modalities should ensure transparency so that Members can evaluate the effect of their
application.
(c) The modalities should ensure substantial improvement in market access that goes beyond
what was achieved during the Uruguay Round of negotiations.
(d) The modalities should aim at achieving convergence of different tariff structures of Members
by effectively addressing tariff peaks, high tariffs and tariff escalation.TN/MA/W/6/Add.1
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(e) The modalities should take into account the current tariff structures of Members which reflect
their respective levels of development.
III. MODALITIES FOR TARIFF REDUCTION
5. Korea proposes that each Member reduce its trade weighted average tariff rate by 40  percent.
Members will achieve this goal in accordance with the following tariff reduction formulae:
(a) The bound tariff rate for each non-agricultural product shall be reduced at least by 20 percent
with no exceptions.
(b) For those products whose current bound tariff rates are above either two times each Member’s
current simple national average tariff rate or 25 percent, the tariff rates shall be reduced by more than
20 percent.
- The tariff rates above two times the national average, after minimum reduction of 20 percent,
shall be further subtracted by 70 percent of the difference between them and two times the
simple national average.  For example, if the national average tariff rate is 3 percent and the
tariff rate for product A is 15 percent, the final tariff rate for product A shall be less than 5.7percent.
T
1=(T 0*0.8)-0.7*(T 0-2*T a)
T1: maximum tariff rate after reduction
T0: tariff rate before reduction (above 2 times the national average)
Ta: national average tariff rate
- The tariff rates above 25 percent, after minimum reduction of 20 percent, shall be further
subtracted by 70 percent of the difference between them and 25 percent.  For example, if thetariff rate for product B is 50 percent, the final tariff rate for product B shall be less than 22.5
percent.
T
1= (T 0*0.8)-0.7*(T 0-25)
T1: maximum tariff rate after reduction
T0: tariff rate before reduction (above 25 percent)
- If a tariff rate is above two times the simple national average and at the same time above 25
percent, the final tariff rate shall be whichever is lower after the reduction as described above.
(c)  If the result of tariff reduction in accordance with the formulae as described above is under the
targeted 40 percent reduction of the trade weighted average tariff rate, Members shall make additional
tariff reduction at its own discretion to achieve the targeted 40 percent reduction.  However, if the
result of tariff reduction in accordance with the formulae as described above goes beyond the targeted
40 percent reduction, Members shall apply the result.
For the results of applying these formulae, please refer to the table and graph attached.
Base Rates and Base Year
6. The base rates for tariff reduction shall be the final bound rates agreed at the UR negotiations.
The base rates for unbound tariff lines shall be the applied rates for the year 2001.  In view of theTN/MA/W/6/Add.1
Page 3
limited time available until the deadline of 1 January 2005 for concluding the negotiations and the
progress of the conversion work to HS 2002, HS 96 shall be employed.
Non Ad Valorem  Tariffs
7. Non ad valorem  tariffs shall be reduced on the basis of their ad valorem  equivalents and in
accordance with the modalities as described above.
8. After the reduction of non  ad valorem  tariffs on the basis of their ad valorem equivalents,
Members shall have discretion to convert non- ad valorem  tariffs into ad valorem  tariffs or maintain
non ad valorem  tariffs.
Least Developed Countries
9. Least developed country Members should be exempted from the tariff reduction obligation.
But they are required to substantially increase their tariff binding ratios.
Implementation Period
10. The implementation period for tariff reduction shall be five years.  However, for developing
country Members, the implementation period shall be seven years. During the implementation period,
Members shall make equal annual cuts.
IV. NON-TARIFF BARRIERS
11. Negotiations on NTBs should not derail or delay the entire negotiating process on market
access.  Therefore, Members should agree early in the process on the scope of negotiations, with a
particular focus on how to deal with issues involving existing WTO rules and agreements.  A
balanced consideration of both the open nature of the Doha mandate on NTBs and the limitedtime-frame for the conclusion of negotiations is crucial to the success of negotiations in this area.
12. In this connection, Members should take into consideration the following key elements in
defining the scope of negotiations on NTBs:
(a) Non-duplication of work with other negotiating bodies;
(b) Existence of a critical mass calling for addressing the particular NTBs;
(c) Achievability of negotiating objectives within the agreed time-frame for DDA negotiations;
and
(d) Respect for each Member’s authority in pursuing national policy objectives.
V. ENVIRONMENTAL GOODS
13. Korea believes that limiting the scope of product coverage to a manageable level is desirable
in view of the need to ensure broader participat ion of developing country Members in the reduction
commitments in this sector.
14. Korea proposes that Members establish a WTO list of environmental goods, taking advantage
of the works already undertaken by the APEC and th e OECD.  Environmental goods to be included in
the list should be determined in terms of their end-use, but not in terms of their production and
process methods.TN/MA/W/6/Add.1
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Average=3 Average=10 Average=15 Average=30
Tariff Rate
Before
ReductionMaximum
Tariff Rate
After
ReductionMinimum
Reduction
RateMaximum
Tariff Rate
After
ReductionMinimum
Reduction
RateMaximum
Tariff Rate
After
ReductionMinimum
Reduction
RateMaximum
Tariff Rate
After
ReductionMinimum
Reduction
Rate
1 0.8 20.0% 0.8 20.0% 0.8 20.0% 0.8 20.0%
2 1.6 20.0% 1.6 20.0% 1.6 20.0% 1.6 20.0%
3 2.4 20.0% 2.4 20.0% 2.4 20.0% 2.4 20.0%
4 3.2 20.0% 3.2 20.0% 3.2 20.0% 3.2 20.0%
5 4 20.0% 4 20.0% 4 20.0% 4 20.0%
6 4.8 20.0% 4.8 20.0% 4.8 20.0% 4.8 20.0%
7 4.9 30.0% 5.6 20.0% 5.6 20.0% 5.6 20.0%
8 5 37.5% 6.4 20.0% 6.4 20.0% 6.4 20.0%
9 5.1 43.3% 7.2 20.0% 7.2 20.0% 7.2 20.0%
10 5.2 48.0% 8 20.0% 8 20.0% 8 20.0%
11 5.3 51.8% 8.8 20.0% 8.8 20.0% 8.8 20.0%
12 5.4 55.0% 9.6 20.0% 9.6 20.0% 9.6 20.0%
13 5.5 57.7% 10.4 20.0% 10.4 20.0% 10.4 20.0%
14 5.6 60.0% 11.2 20.0% 11.2 20.0% 11.2 20.0%
15 5.7 62.0% 12 20.0% 12 20.0% 12 20.0%
16 5.8 63.8% 12.8 20.0% 12.8 20.0% 12.8 20.0%
17 5.9 65.3% 13.6 20.0% 13.6 20.0% 13.6 20.0%
18 6 66.7% 14.4 20.0% 14.4 20.0% 14.4 20.0%
19 6.1 67.9% 15.2 20.0% 15.2 20.0% 15.2 20.0%
20 6.2 69.0% 16 20.0% 16 20.0% 16 20.0%
21 6.3 70.0% 16.1 23.3% 16.8 20.0% 16.8 20.0%
22 6.4 70.9% 16.2 26.4% 17.6 20.0% 17.6 20.0%
23 6.5 71.7% 16.3 29.1% 18.4 20.0% 18.4 20.0%
24 6.6 72.5% 16.4 31.7% 19.2 20.0% 19.2 20.0%
25 6.7 73.2% 16.5 34.0% 20 20.0% 20 20.0%
26 6.8 73.8% 16.6 36.2% 20.1 22.7% 20.1 22.7%
27 6.9 74.4% 16.7 38.1% 20.2 25.2% 20.2 25.2%
28 7 75.0% 16.8 40.0% 20.3 27.5% 20.3 27.5%
29 7.1 75.5% 16.9 41.7% 20.4 29.7% 20.4 29.7%
30 7.2 76.0% 17 43.3% 20.5 31.7% 20.5 31.7%
35 7.7 78.0% 17.5 50.0% 21 40.0% 21 40.0%
40 8.2 79.5% 18 55.0% 21.5 46.3% 21.5 46.3%
45 8.7 80.7% 18.5 58.9% 22 51.1% 22 51.1%
50 9.2 81.6% 19 62.0% 22.5 55.0% 22.5 55.0%
55 9.7 82.4% 19.5 64.5% 23 58.2% 23 58.2%
60 10.2 83.0% 20 66.7% 23.5 60.8% 23.5 60.8%
65 10.7 83.5% 20.5 68.5% 24 63.1% 24 63.1%
70 11.2 84.0% 21 70.0% 24.5 65.0% 24.5 65.0%
75 11.7 84.4% 21.5 71.3% 25 66.7% 25 66.7%
80 12.2 84.8% 22 72.5% 25.5 68.1% 25.5 68.1%
85 12.7 85.1% 22.5 73.5% 26 69.4% 26 69.4%
90 13.2 85.3% 23 74.4% 26.5 70.6% 26.5 70.6%
95 13.7 85.6% 23.5 75.3% 27 71.6% 27 71.6%
100 14.2 85.8% 24 76.0% 27.5 72.5% 27.5 72.5%TN/MA/W/6/Add.1
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Average=3 Average=10 Average=15 Average=30
Tariff Rate
Before
ReductionMaximum
Tariff Rate
After
ReductionMinimum
Reduction
RateMaximum
Tariff Rate
After
ReductionMinimum
Reduction
RateMaximum
Tariff Rate
After
ReductionMinimum
Reduction
RateMaximum
Tariff Rate
After
ReductionMinimum
Reduction
Rate
1 0.8 0.2 0.8 0.2 0.8 0.2 0.8 0.2
5 4 0.2 4 0.2 4 0.2 4 0.2
10 5.2 0.48 8 0.2 8 0.2 8 0.2
15 5.7 0.62 12 0.2 12 0.2 12 0.2
20 6.2 0.69 16 0.2 16 0.2 16 0.2
25 6.7 0.732 16.5 0.34 20 0.2 20 0.2
30 7.2 0.76 17 0.433333 20.5 0.316667 20.5 0.316667
35 7.7 0.78 17.5 0.5 21 0.4 21 0.4
40 8.2 0.795 18 0.55 21.5 0.4625 21.5 0.4625
45 8.7 0.806667 18.5 0.588889 22 0.511111 22 0.511111
50 9.2 0.816 19 0.62 22.5 0.55 22.5 0.55
55 9.7 0.823636 19.5 0.645455 23 0.581818 23 0.581818
60 10.2 0.83 20 0.666667 23.5 0.608333 23.5 0.608333
65 10.7 0.835385 20.5 0.684615 24 0.630769 24 0.630769
70 11.2 0.84 21 0.7 24.5 0.65 24.5 0.65
75 11.7 0.844 21.5 0.713333 25 0.666667 25 0.666667
80 12.2 0.8475 22 0.725 25.5 0.68125 25.5 0.68125
85 12.7 0.850588 22.5 0.735294 26 0.694118 26 0.694118
90 13.2 0.853333 23 0.744444 26.5 0.705556 26.5 0.705556
95 13.7 0.855789 23.5 0.752632 27 0.715789 27 0.715789
100 14.2 0.858 24 0.76 27.5 0.725 27.5 0.725TN/MA/W/6/Add.1
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__________Results of applying the Formulae
051015202530
1 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100
Tariff rate before reduction
Average=3 Average=10 Average=15* Average=30*