. /.WORLD TRADE
ORGANIZATIONTN/MA/W/38
16 June 2003
(03-3148)
Negotiating Group on Market Access Original:  English
MARKET ACCESS FOR NON-AGRICULTURAL PRODUCTS
Communication from Fiji
The following communication, dated  26 May 2003, has been received from the Fiji Mission
to the World Trade Organisation.
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Introduction
1. In response to the document "Draft Elements of Modalities for Negotiations on Non-
Agricultural Products" (TN/MA/W/35), prepared by the Chair of the Negotiating Group under his
own responsibility, and on the basis of the documents presented by various members, this
communication is intended to outline Fiji's position in this process.
2. Although Fiji is one of the Non-resident Members and as a small economy that has very
limited means and resources to engage in effective discussions, Fiji nonetheless attaches great
importance to the Doha Round negotiations on market access for non-agricultural products.
3. As Members strive to build up a consensus on modalities for negotiations on tariffs and non-
tariff barriers on non-agricultural products, Fiji considers it essential that the outcomes of thenegotiations are balanced and equitable.
4. In accordance with the mandate embodied in Paragraph 16 of the Doha Ministerial
Declaration, Members shall conduct the negotiations aiming at "...the reduction or elimination of tariff
peaks, high tariffs, and tariff escalations, as well as non-tariff barriers, in particular on products ofexport interest to developing countries...".   In addition, negotiations shall "fully take into account the
special needs and interests of developing and least-developed country participants, including through
less than full reciprocity in reduction commitments...".
5. Fiji fully supports the mandate provided by the Ministers at Doha and strongly believes that
the results of the negotiations must be consistent with the development aspirations of the Doha
Development Agenda.  Fiji considers the central objectives of the negotiations should be to promote
greater development of international trade that do not necessarily result in any negative impacts on
small and vulnerable economies and effectively strengthen the gradual integration of developing and
least-developed countries in the multilateral trading system.
Modalities of Tariff Reduction
6. Fiji is of the view that a simple and user-friendly formula with different reduction coefficients
for developed and developing Members, using the bound tariffs committed in the Uruguay Round as
the base rate, is the most appropriate core modality.  This approach is consistent with the Doha
mandate on less than full reciprocity in reduction commitments by developing countries.TN/MA/W/38
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7. The formula approach could be complemented with other supplementary approaches to
ensure the development objective that "...the reduction or elimination of tariff peaks, high tariffs, and
tariff escalations, as well as non-tariff barriers, in particular on products of export interest to
developing countries..." is achieved.  However, these supplementary approaches to be adopted must
uphold the concept of Special and Differentiated treatment for developing countries.  The modalitiestherefore must not require unreasonable tariff reductions from developing countries, particularly small
vulnerable economies.  From the perspective of vulnerable countries, a zero-to-zero approach is
inequitable and developing countries should only accept this approach on a voluntary basis.
8. Developing countries should be able to retain their lowest tariffs because they contribute
substantially towards customs revenue and have a negligible impact on market access.
9. It is unequivocal that developing countries, particularly small vulnerable economies are
allowed to protect their infant and emerging industries, which have a potential for growth.  In view of
this, modalities must provide the flexibility to leave unbound those tariff lines, which are highly
strategic and sensitive to developing countries.
Implementation Period
10. Fiji proposes that once the reduction modalities are agreed, the timeframe for implementation
should be effected in equal annual instalments over five years for developed countries and ten years
for developing countries, as of 1 January 2005.  In the context of Special and Differential treatment,small vulnerable economies should be given additional flexibility to include the option of back
loading up to 5% of tariff lines at the end of the implementation period.
Review of final bound tariffs
11. In the case of certain bound sensitive products that are essential to achieving economic
development and poverty alleviation objectives, small vulnerable economies should have the right to
revise upwards the level of final bound tariffs without being called upon to provide compensation for
the upward revision.  This measure should only be used in accordance with a set of agreed criteria and
procedural conditions.
12. Eligible Members using this measure would have to add the relevant footnotes in the
schedules of commitments.
Preferences
13. As development is the key objective of the Doha Development Agenda, with the
understanding that further trade liberalisation should not result in developing countries becoming
worse off, the finding of effective solutions to mitigate against the negative impact of loss of market
access due to erosion of preferential margins should be an integral part of this negotiating process.
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