WORLD TRADE  
ORGANIZATION  G/AG/NG/W/12  
19 June 2000 
 (00-2459) 
Committee on Agriculture  
Special Session Original:   English 
 
 
 
WTO NEGOTIATIONS ON AGRICULTURE:  MARKET ACCESS  
 
A NEGOTIATING PROPOSAL BY CANADA  
  
Objective  
 
 In these negotiations, Canada is seeking a furt her strengthening of the international rules 
governing agricultural trade, the elimination of trad e distorting subsidies, and real and substantial 
improvements in market access for all agriculture and food products.  Improving market access is a 
key element of this fundamental reform which will benefit developed and deve loping countries alike.  
Canada proposes that the negotiations should aim to  achieve these objectives as quickly as possible.  
This will require a practical and targeted approach using a variety of techniques resulting in rules and 
commitments to address the divergent levels of acc ess currently provided for different products in 
different markets.  Options for such an approach are proposed in this paper.  
 
Uruguay Round Achievements and Lessons  
 
 The Uruguay Round Agreement on Agriculture made a significant contribution to improving the terms and conditions for agricultural market ac cess, through the conversion of non-tariff measures 
into tariffs, the acceptance of th e minimum access concept with th e establishment of tariff quotas, 
comprehensive bindings, and tariff reductions on all products.  Ho wever, it also resulted in a 
continuation of major disparities in the terms of access between Members and across products.  
Products subject to single-stage tariffs face widely different tariff levels for competing products (e.g., 
corn versus feed barley, as alternative animal feeds), and often face higher tariffs on processed 
product compared to unprocessed forms of the same product (e.g., oils versus oilseeds) through tariff 
escalation.  For products subject to two stage tariffs , tariff quotas are often smaller than the targets set 
out in the Uruguay Round modalities, in-quota tariffs are often a significant access barrier, and tariff quota administration procedures frequently act to further constrain access.  
Proposal  
 
 Canada proposes that these issues be addressed  using approaches that cover single-stage 
tariffs, two-stage tariffs and tariff quotas, and complementary initiatives.  
Single Stage Tariffs  
 
 All tariff lines where a single stage tariff exis ts should be subject to a formula reduction 
resulting in a substantial reduction in tariffs and a greater harmonization of tariff levels.  Tariff 
escalation between primary and processed forms of the same product should be eliminated.  Any 
single stage tariff for which the final bound duty would be above a certain threshold should be converted into a two stage tariff, with a specified  quantity of duty free in-quota access to be provided. 
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  A formula approach to reduce single stage ta riffs could be supplemented by additional 
provisions to ensure that the final outcome provides real market access improvements that would open markets significantly and allow trade to flow.  Op tions for such additional provisions include (1) 
establishing a maximum tariff binding for each single stage tariff line at the end of the implementation period; (2) establishing a minimum total reductio n for each tariff line from the original Uruguay 
Round base tariff, the total reduction being the sum of Uruguay Round cuts plus those undertaken in 
these negotiations.  
Two Stage Tariffs and Tariff Quotas  
  The approach for two stage tariffs and tariff quotas should address all of the related elements 
through binding rules:  tariffs; the volume of access  provided within tariff quota commitments; the 
assignment of expanded access to individual tariff quotas; and improved disciplines to ensure that 
tariff quotas provide usable access.   
 One option to be considered should be that, in order to maintain the right to have tariff quotas, 
Members would be required to:   -  eliminate tariffs within quota;   -  expand the size of all tariff quotas to ensure that at least a common minimum end 
point is achieved, expressed as a percentage of current consumption in a recent period 
on a product basis (e.g., pork, not meat);  
 -  provide access for products on the same basis (e.g., pork, not separately for carcasses 
and various pork cuts); and 
 -  make commitments on over quota tariffs which take into account the extent of 
liberalization provided through the tariff quota. 
 
Tariff Quota Administration  
 
 Improved rules must ensure tariff quotas are admi nistered in ways that do not impede the full 
utilization of the market access opportunities.  Admini strative practices such as limitations on the size 
of licence allocations, limitations on the period of im port license validity, or allocations to specific 
supplying countries, must be carefully examined to ensure that existing and expanded market access 
opportunities can be fully realized.   
Complementary initiatives  
  In addition to the above approaches greater liber alization, including the complete elimination 
of tariffs, may be possible in some sectors.  Sectoral initiatives can encompass not only the 
elimination of tariffs, other impor t measures, and export subsidies, but also provisions covering other 
measures such as export taxes and trade dist orting domestic support, among others.   
  Canada strongly supports sectoral liberalization (i.e., zero for zero)  for oilseeds and oilseed 
products and for barley and malt.  Existing sectoral  initiatives could also be broadened in terms of 
either the participation of Me mbers, or product coverage.  
  Canada proposes that new opportunities for sectoral liberalization with as broad a product coverage and as broad a coverage of me asures as possible should be pursued.   
 
 Expanded market access should be accompanied by improved security of access to supplies.  
Canada proposes that improved disciplines on quantita tive export restrictions and export taxes on 
agricultural products be an integral part of a substantial market access result.   
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 Next Steps  
 
 While the updated Secretariat backgroun d papers on tariff quotas and tariff quota 
administration will provide some of the informa tion necessary to support market access negotiations, 
other information will be needed.  In particular, Canada suggests that information on annual domestic 
consumption of products for a recent period should be compiled by the Secretariat on the basis of data 
to be submitted by Members.  
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