WORLD TRADE
ORGANIZATIONTN/MA/W/1
24 June 2002
(02-3462)
Negotiating Group on Market Access Original:  English
MARKET ACCESS FOR NON-AGRICULTURAL PRODUCTS
Communication from the European Communities
The following communication, dated 20 June 2002, has been received from the Permanent
Delegation of the European Communities
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The European Communities welcome the establishment of the negotiating group on
non-agricultural market access and, in this first submission to the group, wish to set out some initial
views on the scope of the negotiations and the possible approach to them. The submission is divided
into two parts, dealing respectively with the objectives and the  modalities of the negotiations.
I. OBJECTIVES
1. Like other Members, the EC welcomes the comprehensive nature of the mandate agreed at
Doha for non-agricultural market access negotiations. We note that non-agricultural tariffs and
non-tariff barriers continue to have a major effect on international trade flows. Negotiations to reduce
or eliminate these barriers will bring major economic benefits to all Members of the WTO and to their
consumers, particularly if accompanied by stronger WTO rules providing a predictable and
transparent international trading environment.
2. With regard to the objectives of the negotiations, the European Communities wish to draw
attention to some of the key features of the mandate.
3. The Ministerial Declaration stresses that the product coverage for the negotiations should be
comprehensive and without a priori  exclusions. This mandate is more ambitious than the negotiating
mandates for previous rounds, and requires a correspondingly ambitious approach to the negotiations.
It is also more specific in that Members have agreed to reduce or as appropriate eliminate tariff peaks,
high tariffs and tariff escalation, as well as non-tariff barriers. A comprehensive approach aimed at the
removal of all these barriers is the only way of ensuring that the interests of all WTO Members are
addressed.
4. The mandate explicitly states that the reduction or elimination of tariff and non-tariff barriers
shall be aimed in particular at products of export interest to developing countries. Moreover in this
respect, not only improved access to developed countries’ markets, but also access to other
developing countries’ markets is becoming increa singly important to developing-country exporters.
Therefore one of the objectives of the negotiations must be the achievement of effective market access
between developing countries.
5. Not only the interests, but also the needs of developing and least developed countries must be
taken into account in negotiations through less than full reciprocity in reduction commitments, in
accordance with Article XXVIII bis of GATT 1994 and the provisions of paragraph 50 of theTN/MA/W/1
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Declaration, which include inter alia  the Decision of 28 November 1979 on Differential and More
Favourable Treatment reciprocity and Fuller Participation of Developing Countries.
6. The European Communities consider negotiations on reduction or, as appropriate, elimination
of tariff and non-tariff barriers to environmental goods as an important part of market accessnegotiations. With a view to the Members’ discussion on the product coverage and scope of this
section of the mandate, the Communities are currently studying appropriate approaches to capture on
the basis of objective and recognisable criteria environmental goods whose improved market access
will be positive not only for trade, but also for en vironmental objectives world-wide. Furthermore, the
Communities are open to suggestions for paying particular attention to goods whose sustainable
materials or production characteristics mean that increased trade in such products would also be
environmentally supportive. We believe that such complex issue must be discussed sufficiently earlyin the process.
7. Negotiations to remove non-tariff barriers to trade in non-agricultural goods are a key element
of the market access negotiation with a bearing on the overall balance. Many non-tariff barriers have
already been reduced or regulated under current WTO rules in areas such as customs valuation,pre-shipment inspection, import quotas and prohibitions, import licensing procedures, or state trading
enterprises. Disciplines on non-tariff barriers are also laid down in several GATT provisions such as
GATT Articles II, III, V, VIII, X or XII.
8. There remain, however, several other non-tariff barriers which considerably hamper trade and
have a serious impact on the activity of trade operators. Only by creating disciplines that will remove
such barriers can the full benefits of market access be obtained, rather than frustrated. Various WTO
bodies are currently tackling non-tariff barriers in specific fields. Without prejudice to the
contributions that the Communities and other Members can make in these fora, within the market
access negotiations we intend to submit proposals concerning the definition and coverage of non-tariffbarriers and suggesting approaches to their elimination. Negotiations should also address exports
restrictions, including export duties.
9. In view of the ambitious mandate, the Eu ropean Communities are ready to commit to an
ambitious programme of tariff and non-tariff reduction and elimination, if this is matched by truly
meaningful commitments by others. The approach finally agreed should ensure that no sector or
product is excluded.  In addition, where possible, negotiations could aim at complete tariff eliminationfor groups of products or sectors taking account of the different levels of development and including
the particular needs of the least developed countries. Against a background where, bilaterally or
regionally, many Members have already committed themselves to very ambitious liberalisation plans,
ambitious action at the multilateral level acquires gr eater significance at the same time as it becomes
more feasible.
II. MODALITIES
10. The modalities adopted must correspond to the objectives set in the mandate, as well as the
complexities brought about by the variations in the tariff structures and in the non-tariff measures of
144 WTO Members. In past rounds of negotiations, m odalities proposed – or used – have included:
request-offer approaches, under which individual participants negotiate concessions on an
item-by-item basis; formulae whereby Members agree to reduce tariffs across the board either in a
linear or in a non-linear fashion; formulae taking into account gross national product, level of exports
and other criteria, in order for Members to undertake commitments in keeping with the degree of
development in specific sectors; and approaches whereby either all or a number Members applydeeper cuts to specific products.TN/MA/W/1
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11. The choice of modality for the negotiations should take into account the high level of
ambition of the mandate, lessons learned from previous market access negotiations, the need to take
special account of the interests and needs of developing countries, and the current size of the WTO
Membership. Taking account of all these elements, the modality to be chosen has to bring about the
greatest possible reductions across the board for all Members. In other words it has to remove tariffpeaks, reduce and compress high tariffs in an economically meaningful way, seriously tackle
problems brought about by tariff escalation, and avoid approaches that can result in the continued
sheltering from liberalisation of particular sectors of interest to many participants. A formula
approach may, therefore, be the best way of achieving these aims. In parallel and depending on the
level of ambition of such comprehensive approach, there could be scope for deeper than average cuts
for some groups of products, e.g. environmental goods.
12. Taking account of the principle of less than full reciprocity, and the particular needs and
problems faced by least developed countries, the chosen modality could be calibrated to different
Members’ levels of economic development taking into account  actual tariff structures.
13. In establishing the modalities, a significant increase in the number of bindings, the reduction
of the gap between bound and applied duties and the reduction or elimination of tariff dispersion
would, inter alia , be of high interest to many WTO Members and in keeping with the objectives set
by the mandate. As regards the number of tariff items bound, Part 1 of the Schedules of accession of
the Members who have recently joined WTO, should guide negotiators who must strive for all tariff
items to be bound.
14. The European Communities are open to suggestions concerning the identification of the year
of reference. We consider, however, that for results to be significant Members should choose a year
which is closest to the start of the negotiations, i.e. 2001.
15. On a more practical level, the wealth of data contained in the Consolidated Tariff Schedule
(CTS) must be made accessible. Likewise, in order to enable Members to judge whether reductions
offered are meaningful, it is crucial that the Integrated Data Base (IDB) contains updated data on
applied tariffs and on Members’ trade. Negotiators should have at their disposal statistics on the value
and volume of their trade in the three years from 1999 to 2001 in addition to data on all types of
bound and applied rates.
16. As regards non-tariff measures, the modalities should permit the identification and listing of
non-tariff measures, and assessment – whenever possible – of their trade-restrictive impact, in order
for Members to agree either on a reduction of scope or a definitive phase-out , taking into account
Members’ rights to legitimate measures taken in accordance with provisions contained in WTO
Agreements. Modalities could include data collected through  notifications of non-tariff barriersexperienced by Members. Commitments on export taxes and restrictions by the Members who have
recently joined WTO also provide useful guidance for negotiations on this specific issue.
17. Each Member’s overall contribution in the negotiations shall be evaluated on the basis of the
effective market access granted through tariff reductions and the elimination of non-tariff barriers.
18. The mandate, furthermore, requires that the modalities include appropriate studies and
capacity building measures to assist developing and least developed countries to participate in the
negotiations. The Communities agree that support of this nature will be important to help some
smaller Members of the WTO identify better their interests in the negotiations. To this end theEuropean Communities have supported the increase in the WTO’s technical assistance budget
devoted to such studies and to other measures. The EC will also launch programmes aimed at
assisting developing countries in using the tools available for tariff analysis in order for these
countries to be able to establish their interests and priorities in this area of the negotiations. InTN/MA/W/1
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addition, Members might need to evaluate the future role of the ITC in the light of the instruments it
could put at the disposal of Members for the analysis of tariffs and trade-flows.
19. In terms of timing, even though the mandate does not specify a deadline, and despite the
complexity of the task lying ahead, modalities should be decided by the forthcoming 5th Ministerial
Conference at the latest.
III. CONCLUSIONS AND WAY FORWARD
20. To conclude, the European Communities wish to  reiterate the importance they attach to an
ambitious, comprehensive market access negotiation delivering benefits to all Members and
promoting sustainable development. Negotiations on market access for non-agricultural products must
be placed within the wider framework of negotiations foreseen by the Ministerial Declaration andwhich are aimed at achieving a more transparent and predictable multilateral system of rules.
21. With regard to the way forward, The European Communities intend to submit proposals
concerning all aspects of the negotiation according to the timetable that the Chairman of the
negotiating group will, we hope, establish at the first meeting. Some definitional issues will have to bedecided at an early stage of the negotiations, including the question of base rates, the scope of
non-tariff barriers and the identification of environmental goods. In addition the work programme
should include information on planned technical assistance actions and seminars, which are
indispensable for a full participation of all Me mbers. In this respect the Communities are fully
committed to supporting the WTO Secretariat’s efforts in assisting Members, and especially the leastdeveloped countries, throughout the negotiations.
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