WORLD TRADE
ORGANIZATIONTN/MA/12
1 September 2003
(03-4573)
Negotiating Group on Market Access
NEGOTIATING GROUP ON MARKET ACCESS
Report by the Chairman, Ambassador Girard, to the Trade Negotiations Committee
I. INTRO DUCTION ................................................................................................................. ...1
II. BACKGROUND .................................................................................................................. .....1
III. STATUS OF WORK ............................................................................................................. ...3
A. T ARIFFS ............................................................................................................................... ........3
B. N ON-TARIFF BARRIERS (NTB S) .................................................................................................4
C. A PPROPRIATE STUDIES AND CAPACITY BUILDING .....................................................................5
IV. KEY ISSUES WITH RE SPECT TO MO DALITIES............................................................5
A. F ORMULA ............................................................................................................................... .....5
B. S ECTORIAL TARIFF ELIMINATION ...............................................................................................5
C. N EWLY ACCEDED MEMBERS ......................................................................................................6
ANNEX 1  Draft Elements of Modalities for Negotiations on Non-Agricultural Products ....................7
ANNEX 2  List of Proposal Docu ments in the Negotiating Group.......................................................13
ANNEX 3  Secretariat Documents Prepared for the Group ..................................................................17
_______________
I. INTRODUCTION
1.1 This report is prepared in order to aid Ministers in their further work on Non-Agricultural
Market Access in the preparations leading up to the 5th Ministerial Conference in Cancun.   The report
is a factual summary of the work undertaken by the Group since its establishment and includes
information of its meetings up to and including 13-14 August 2003.  The report is submitted by the
Chairman on his own responsibility and is without prejudice to the positions of the participants.
II. BACKGROUND
2.1 The Negotiating Group on Market Access was established by the TNC at its meeting of 1
February 2002 in order to carry out the work related to the negotiations on market access for
non agricultural products.  Paragraph 16 of the Doha Ministerial Declaration on "Market Access forNon-Agricultural Products", provides:
"16.We agree to negotiations which shall aim, by modalities to be agreed, to reduce or as
appropriate eliminate tariffs, including the reduction or elimination of tariff peaks, high tariffs,
and tariff escalation, as well as non-tariff barriers, in particular on products of export interestTN/MA/12
Page 2
to developing countries.  Product coverage shall be comprehensive and without a priori
exclusions.  The negotiations shall take fully into account the special needs and interests of
developing and least-developed country participants, including through less than full
reciprocity in reduction commitments, in accordance with the relevant provisions of
Article XXVIII bis of GATT 1994 and the provisions cited in paragraph 50 below. To this
end, the modalities to be agreed will include appropriate studies and capacity-building
measures to assist least-developed countries to participate effectively in the negotiations."
2.2 The Negotiating Group first met in formal session on 11 April 2002 to commence its work
which focused mostly on organizational aspects.  However, prior to its first formal meeting and
continuing until July 2002, in-depth discussions took place among the participants in informal
sessions over the "Programme of Meetings" of the Negotiating Group.  After many informal sessionsand discussions at higher levels, the Group's "Programme of Meetings" (TN/MA/3) was adopted on
19 July 2002.  Thus, as the issue had remained unresolved for several months, the Group did not
commence with its substantial work until August 2002.
2.3 As a result of agreement on its programme of meetings, the Group held four formal meetings
during August to December 2002
1 in order to proceed with its work.  In particular, discussions
focused on tariffs and non-tariff barriers, review of the proposals, appropriate studies and capacity
building measures, and consideration of possible modalities.  The "Programme of Meetings" set a
target date for submitting proposals by 1 November 2002, but that proposals submitted until
31 December 2002 would be fully taken into account in a consolidated overview of proposals.Furthermore, the "Programme of Meetings" also emphasized the importance of special and
differential treatment for developing and least developed countries and that  it should be an integral
part of all elements of the negotiations under the Work Programme.
2.4 During 2003, the Group has held five formal sessions
2 thus far. The Group began the year by
focussing on the Secretariat's "Overview of Proposals Submitted"3, as first prepared on
5 February 2003 in TN/MA/6.  Subsequently, for the April meetings, the "Overview of Proposals
Submitted—Tariffs" (TN/MA/6/Rev.1) was updated, and a new paper on "Overview of Proposals
Submitted—Non-Tariff Barriers" (TN/MA/9) was also prepared.  In preparation for the target date of
31 May 2003 for reaching agreement on modalities, the Chairman issued his paper on "Draft
Elements of Modalities for Negotiations on Non- Agricultural Products" (TN/MA/W/35).   However,
the Group did not reach agreement on modalities by 31 May 2003.  In the meantime, proposal papers4
continue to be submitted by participants and work has proceeded in earnest in order to try to reach
agreement on modalities.  In preparation for the August 2003 meeting, the Chairman submitted a
paper to the Group on "Possible Options" (JOB(03) /155) to the various provisions of the "Draft
Elements".  After the meeting on 13-14 August, the Chairman revised the "Draft Elements"
(TN/MA/W/35/Rev.1; see Annex I) to take into consideration those options that he believed hadbroad support.
2.5 As part of its work on capacity building, but also in terms of technical assistance in a broader
sense, there have been a number of studies and capacity building measures to improve participation in
the negotiations.  In this respect, the Group held a Market Access Seminar on 29-31 May 2002, whichcovered modalities for negotiations on tariffs and non-tariff barriers, special and differential
treatment, the art of negotiating, and the use of databases for negotiations.  Additionally, the WTO
Secretariat has prepared a number of background papers, simulations, and other materials relevant to
these negotiations (see Annex 3).  A number of technical assistance measures have also been carried
out as part of the WTO Annual Technical Assistance/Capacity Building Plans for 2002 and 2003.
                                                     
1 On 2 August 2002, 12-13 September 2002, 4-5 November 2002, and 2-3 December 2002.
2 On 19-21 February, 14-16 April, 26-28 May, 9-11 July, and 13-14 August 2003.
3 Containing proposals on tariffs only.
4 The full list of proposals by participants is contained in Annex 2.TN/MA/12
Page 3
2.6 With respect to environmental goods, it was noted that the Committee on Trade and
Environment in Special Session had indicated broad support that with respect to its mandate on
environmental goods, that these negotiations should take place in the Negotiating Group on Market
Access.5  There was still the outstanding issue on how to clarify the concept of environmental goods,
and some participants to the Committee on Trade and Environment in Special Session preferred that
this be undertaken in that body during the course of their work.  Nevertheless, the Negotiating Group
on Market Access has, to a certain extent, taken up this matter and expressed different views on the
definition of environmental goods, as well as how this issue should be treated during the course of
these negotiations.
III. STATUS OF WORK
3.1 Since the Chairman's first paper on "Draft Elements" was issued, the last three meetings have
focused on participants' feedback, reactions, and sugge stions to improve the "Draft Elements".  There
has been good discussions and positive contributions in order to make progress on reaching consensus
on modalities for both tariffs and non-tariff barriers.  In this respect, there have even been new
proposals made at the August meeting.  It appeared from the general feedback from the Group, thatthe "Draft Elements" contained all the elements needed for reaching agreement on modalities, but
there still needed to be further work or refinement on many of the issues.  For this reason, the
proposed "Possible Options" were discussed at the last session and the resulting text
(TN/MA/W/35/Rev.1) will be used as a basis for the discussions in this section.  This section will
address the three substantive elements contained in th e "Draft Elements" text, that is a) tariffs, b) non-
tariff measures, and c) appropriate studies and capacity building.
A. T
ARIFFS
3.2 Based on the proposals and the discussions in the Group, it was the preference of most
participants to pursue a formula as the main element of tariff modalities.   The "Draft Elements"proposes a harmonizing formula that would apply on a line-by-line basis for all participants except for
least-developed Members.  There have been differing views on the type of formula to be used and
how it would address the issues set out in the mandate—most notably the issues of tariff peaks, high
tariffs, and tariff escalation, and "less than full reciprocity in reduction commitments".  Generally
speaking, there has been  broad support for a formula of the type as proposed in the text, however
various elements of the formula have received criticism by participants.  In particular, the " T
a" or
tariff average, although well received by a number of participants, was criticized by a number of otherparticipants who argued that it did not represent the level of development of the Member, nor did it try
to achieve balance among Members.  The treatment of 'unbound' items in the formula also was the
subject of much debate and would need further discussions.  Other technical elements to be used in
the formula, such as nomenclature and the use of bound rates, when they were in existence, were
generally well accepted.  In addition, the "Draft Elements" also propose special treatment for anumber of countries who currently have less than 35 percent of tariff lines bound.  Instead of applying
the formula, they would be expected to bind 100 percent of tariff lines at an average level that does
not exceed the overall average bound tariffs for all developing countries after full implementation of
current concessions.
3.3 The second key element of the "Draft Elements" is the sectorial approach, whereby tariff
elimination is proposed for seven sectors of particular export interest to developing countries.  The
sectorial approach would eliminate tariffs on the pr oducts determined to be covered in the sector by
the participants, and would be achieved in one st age for developed countries and those who so choose,
and three stages for other participants.  The length of the stages would also be left for the participantsto determine during the negotiations.  The reaction to  such a liberalization approach has been mixed.
                                                     
5 TN/TE/1.TN/MA/12
Page 4
On the one hand, some participants consider it imperative to have further mandatory tariff
liberalization beyond the formula, while on the other hand other participants do not see it in their
interest to eliminate tariffs on these sectors.  Various participants indicated that preferred to
concentrate on a formula, then address sectors at a later point in time.
3.4 In addition to the flexibility provided in the formula and sectorial approaches for developing
country participants, additional provisions for developing and least-developed participants were
sought by the Group.  As for least-developed participants, the "Draft Elements" provides that they
would not be required to reduce or eliminate tariffs, but as part of their contribution to the
negotiations, they would, however, be expected to substantially increase their level of binding
commitments.  For developing country participants, the text currently provides flexibility by allowing
them to keep tariff lines unbound or not apply the formula for up to 5 percent of tariff lines providedthat no more than 1 percent (1 percent of tariff lin es providing they do not exceed 1 percent of the
Member's imports, calculated for the reference period) could be taken in one HS Chapter.
3.5 As for special considerations for newly acceded Members, there has been support in the group
to give them a certain level of flexibility due to the extensive market-access commitments undertakenby them.  However, the approach proposed in the "Draft Elements" (e.g., a different coefficient " B", a
longer implementation period, a "grace period") does not seem to be acceptable to all participants.
Some participants have requested that all three options remain possibilities, while others prefer that
only longer implementation periods be given.
3.6 The draft text provides for the possibility of supplementary modalities—zero-for-zero, sector
elimination, sectorial harmonization, request & offer, as well as the possibility to consider elimination
of low duties.  Discussions thus far have indicated that these possibilities should remain open, and
thus the modalities should provide for the option of using these approaches, if necessary.
3.7 The issue of addressing "erosion of preferences" and "high tariff revenue dependency" in the
modalities continue to be highly debated matters in the Group.
B. N
ON-TARIFF BARRIERS (NTB S)
3.8 Discussions on non-tariff barriers have lagged those on tariffs for some time.  In this respect,
the Section C. on Non-Tariff Barriers in the "D raft Elements" has led to a process of addressing
modalities for NTBs.  The text essentially proposes a three step process of identification, examination,
and categorization in order to address NTBs.  The process of identification has been underway in the
Group for some time, with 25 submissions from participants circulated in documents TN/MA/W/25 +
Add.1 + Add.2.  However, at the July meeting of the Negotiating Group, it was generally felt that
more work was needed here and new or improved submissions should be submitted by 31 October
2003.
3.9 Many of the substantive issues in dealing with NTBs relate to the fact there is overlap of
many of the NTBs with other WTO Agreements, Bodies, or Ministerial mandate.  In the view of some
participants, there is also a problem of negotiating mandate, as the Doha Declaration does not contain
a specific negotiating mandate for some existing WTO Agreements (e.g., TBT, etc...).   Thus, as afirst step towards a pragmatic and workable approach, the draft proposes four ways to categorize
NTBs, and the way to treat the NTBs would be determined accordingly.
3.10 The first category are those NTBs that would be addressed in the NGMA and the appropriate
modalities would need to be determined.  For the time being, all types of modalities remainpossible—request/offer, vertical, or horizontal approaches.  Secondly, there are NTBs relating to
existing negotiating bodies, e.g. Rules.  It is proposed that for these NTBs, e.g. NTBs relating to anti-
dumping, would be referred to the Negotiating Group on Rules.  In a similar vein, NTBs relating to
other parts of the Doha Declaration but currently without a specific negotiating mandate (e.g. TradeTN/MA/12
Page 5
Facilitation, etc...), would be referred to an appropriate body to be addressed, depending also on a
decision by explicit consensus in Cancún.  Finally, there are NTBs that currently do not have a
specific negotiating mandate but relate to existing WTO Agreements.  In these cases, if the group
decides there is a need to send them to another WTO body, they would be reported to the TNC in
order to be forwarded to the appropriate WTO body for action and reply.
3.11 The discussions in the group thus far have led to a general positive appreciation for the
approach outlined in Section C, however, some dele gations have raised some concerns with the issue
of referral for a number of reasons.  Some small delegations have voiced concerns because they would
not be able to follow the work in a number of other WTO Bodies.  There were some suggestions made
to have a clearer process of referral, so that participants could understand how it would work with
respect to each subject.  However, it was emphasized that this negotiating group maintains overallresponsibility for addressing non-tariff barriers. Thus, if there was a need to make referrals, the
NGMA would continue to oversee the process, and would request to have information and progress
on the matter reported.
C. A
PPROPRIATE STUDIES AND CAPACITY BUILDING
3.12 As mandated in paragraph 16 of the Doha Declaration, the modalities would provide for
appropriate studies and capacity building measures to assist least-developed countries to participate
effectively in the negotiations.  Section D of the document sets out provisions for these studies and
capacity building initiatives.  It is noted that a number of such initiatives, in a broader sense, have
already been undertaken, and that this work would cont inue.  It would be up to participants to initiate
proposals, but also the Secretariat would continue to initiate such activities when it undertakes work
relating to this negotiating group.
IV. KEY ISSUES WITH RESPECT TO MODALITIES
4.1 This section sets out key outstanding issues that Ministers may wish to focus on.
A. FORMULA
4.2 The proposed formula consists of a single, non-linear, harmonizing formula applied on a line-
by-line basis.  The data used for its calculation would be the bound rates where they were in
existence, and for other tariff lines, twice the applied rates would be used.  The final rates, after
application of the formula, would be bound in ad valorem  terms.
4.3 Key issues to be addressed include the adequacy of the formula in terms of improving market
access and the best way of taking into account the different structures and levels of tariffs of the
participants, as well as the scope of binding commitments already undertaken.
B. SECTORIAL TARIFF ELIMINATION
4.4 In the "Draft Elements", a mandatory sectorial elimination approach is proposed with a view
to add further liberalization in favour of products of interest to developing countries and to improve
market access that would not be sufficient through using the formula alone.  Possible sectors are
mentioned in a generic way and different modalities of implementation are further proposed for
developed Members and other Members who would choose to follow them, on the one hand, anddeveloping Members on the other hand.
4.5 A key issue to be addressed is whether this approach could be agreed as a complement to the
formula, and if so, what would be the possible list of generic sectors.TN/MA/12
Page 6
C. NEWLY ACCEDED MEMBERS
4.6 The "Draft Elements" provide specific treatmen t for newly acceded Members in the form of a
special flexibility.  Although there appears to be a basic agreement that the special situation of these
Members shall properly be taken into account, the way to do so (higher coefficient in the  formula,
longer implementation period, "grace period") has been controversial.
4.7 The key issue is how the flexibility could be as sured in order to address the special situation
of newly acceded Members.TN/MA/12
Page 7
ANNEX 1
TN/MA/W/35/Rev.1
DRAFT ELEMENTS OF MODALITIES FOR NEGOTIATIONS
ON NON-AGRICULTURAL PRODUCTS
Revision
A. I NTRODUCTION
1.  In adopting on 19 July 2002 the Programme of Meetings of the Negotiations on Market
Access for Non-Agricultural products (hereafter Work Programme), the participants in the
Negotiating Group on Market Access (NGMA) stated that they will "aim at a common understanding
on a possible outline of modalities by the end of March 2003 with a view to reaching an agreement on
those modalities by 31 May 2003."  With a view to  facilitate such agreement, the Chair submits
herewith a draft of "Elements of Modalities for Negotiations on Non-Agricultural Products," under hisown responsibility.
2. This revised draft is based on the work carried out during the series of formal and informal
session of the NGMA starting on 2 August 2002 and conducted in accordance with the Mandate
provided by Ministers at Doha, and the Work programme thereunder adopted by the NGMA on19 July 2002.
      Paragraph 16 of the Doha Ministerial Declaration provides (WT/MIN(01)/DEC/1):
"16. We agree to negotiations which shall aim, by modalities to be agreed, to reduce
or as appropriate eliminate tariffs, including the reduction or elimination of tariff peaks,
high tariffs, and tariff escalation, as well as non-tariff barriers, in particular on products
of export interest to developing countries.  Product coverage shall be comprehensive and
without a priori  exclusions.  The negotiations shall take fully into account the special
needs and interests of developing and least-developed country participants, includingthrough less than full reciprocity in redu ction commitments, in accordance with the
relevant provisions of Article XXVIII bis of GATT 1994 and the provisions cited in
paragraph 50 below. To this end, the modalities to be agreed will include appropriate
studies and capacity-building measures to assist least-developed countries to participate
effectively in the negotiations."
      Furthermore, paragraph 4 of the Work Programme states (TN/MA/3):
"4. In accordance with paragraph 16 and other relevant provisions of the Doha
Ministerial Declaration, special and differential treatment for developing and least-developed countries shall be an integral part of all elements of the negotiations under this
Work Programme."
3.  This draft does not claim to represent elements agreed in whole or in any part and is without
prejudice to the position of participants.  As it will become evident immediately in this draft, some
parts are not fully elaborated, and some of the other points raised are not included.  Thus, it is not in
anyway comprehensive. Rather it should be seen as a set of basic elements for possible modalities,which will need to be adjusted, completed, refined, or further expanded upon.
4. It is hoped that these Draft Elements will further stimulate the constructive discussions which
have taken place between participants so as to enable them to build up a consensus on modalities forTN/MA/12
Page 8
negotiations on tariffs and non-tariff barriers.  It is furthermore expected that in conducting these
discussions the participants will keep closely in mind the importance of preserving the integrity of the
WTO multilateral trading system as embodied in the WTO Agreements, building upon the market
openings realized thus far as a major element in promoting trade and development, and incorporating
special and differential treatment as an integral part of the negotiations.
Therefore the following elements are proposed:
B. T ARIFFS
5. The proposed elements for modalities on tari ff negotiations are outlined in the following four
sub-sections, all of which are an integral part of the modalities for all participants.
1. Formula
6. The application of the formula will be based on the following elements:
• base rate: tariff reduction or elimination on all non-agricultural products1 from the bound rates
after full implementation of current concessions2.  However, for unbound items, the basis for
commencing the tariff reductions shall be two times the MFN applied rate3;
• the base year for MFN applied tariff rates shall be 2001;
• non-ad valorem  duties shall be converted to ad valorem  equivalents according to the
procedures in Annex I;
• HS nomenclature:  negotiations to commen ce on the basis of Harmonized System (HS) 1996,
and negotiations to be finalized in HS2002 nomenclature;4 and
• for import data, the years 1999-2001, hereinafter "reference period", shall be used in order to
mitigate yearly fluctuations.
7. All non-agricultural tariffs shall be reduced on a line-by-line basis using the formula5 applied
to the base rates outlined in paragraph 6:
00
1ttBttBt
aa
+ ×× ×=
where,
t1 is the final rate, to be bound in ad valorem  terms
                                                     
1 All products not covered by the WTO Agreement on Agriculture.
2 Credit may be given for autonomous liberalization provided that the items were bound on an MFN
basis in the WTO since the conclusion of Uruguay Ro und.  Thus, in the following cases, credit will accrue by
using the base rate that was in place before the autonomous liberalization took place, and the formula reductionwould be applied to this higher basis.  In the case of items that were not previously bound, two times the MFNapplied rate or the new bound rate, which ever is higher, for the year the liberalization took place would be thebasis.  It is noted that in the cases of the Ministerial Declaration on the Expansion of Trade in InformationTechnology Products, further initiatives in the Pharmaceutical zero-for-zero sector, and certain other individual
initiatives, the bound rate was reduced to zero and thro ugh the application of the formula, credits would not be
relevant.  Thus, for the remaining items, credit could be given for the tariff lines noted in the following WTOdocuments which have been given legal effect through certifications:  European Communities (WT/Let/178),Hungary (WT/Let/441), India (WT/Let/374), Korea (WT/Let/302), Pakistan (WT/Let/424), Sri Lanka(WT/Let/398), and the United States (WT/Let/182).
3 When the MFN applied rate in the base year is less than 2.5 percent, 5 percent shall be used as the
basis.
4 If Members so desire, they may commence with HS2002 nomenclature if the corresponding
concordance tables are provided.
5 All numbers used in the formula will be rounded to one decimal point.TN/MA/12
Page 9
t0  is the base rate
ta is the average of the base rates6
B is a coefficient with a unique value to be determined by the participants
8. As an exception, participants with a binding coverage of non-agricultural tariff lines of less
than 35 percent would be exempt from making tariff reductions through the formula.   Instead, they
would be expected to bind 100 percent of non-agricultural tariff lines at an average level that does not
exceed the overall average of bound tariffs for all developing countries after full implementation of
current concessions (27.5 percent).7
2. Sectorial Tariff Elimination
9. In addition to the application of the formula, a sector elimination approach is proposed with
appropriate flexibilities for developing countries, in order to eliminate and bind all tariffs on products
of particular export interest to developing and least-developed country participants.  Therefore, the
following sectors are proposed: Electronics & Electrical goods; Fish & Fish products; Footwear;
Leather goods; Motor Vehicle parts & components; Stones, Gems, & Precious Metals; and Textiles &Clothing.  Members will need to determine the product coverage applicable to these sectors.
10. The sectorial tariff elimination shall be achieved through three phases of equal length.  The
basis for elimination will be from the bound rates after full implementation of current concessions, or
for unbound items, the MFN applied rates in 2001.  The tariff reductions will occur in equal annualstages, as follows:
• developed participants and other participants who so decide, shall eliminate tariffs at the end of
the first phase;
• other participants shall achieve tariff reduction and elimination as follows: 1) tariff reduction to a
proposed level of not more than 10 percent
8 at the end of the first phase; 2) maintain this level
during the second phase; and 3) achieve elimination of tariffs at the end of the third phase.
3. Additional Provisions for Developing and Least-Developed Participants
11.  Taking into account the relevant provisions of the mandate, and the special and differential
treatment and "less than full reciprocity" already provided in the elements above, developing and
least-developed participants shall have additional provisions as follows:
a) for developing country participants, longer implementation periods for tariff reductions would
be applicable.  In addition, they would be given flexibility by a) being able to keep tariff lines
unbound or b) not applying formula cuts, to up to 5 percent of tariff lines provided that no
more than 1 percent (1 percent of tariff lines providing they do not exceed 1 percent of  the
Member's imports, calculated for the reference period) could be taken in one HS Chapter. 9
                                                     
6 The calculation of tariff averages should not be biased by the disaggregation of Members tariff
schedules.  To reduce the bias introduced by the different number of tariff lines in Members' schedules, the HS
standard nomenclature, an international standard up to the level of HS 6-digt subheadings, shall serve as basis
for the calculation of simple tariff averages.  The tariff average, shall be calculated in two steps:
i) A simple arithmetic average of tariff line ad valorem  duties or AVEs is used to calculate the
tariff average for each non-agricultural HS 6-digit subheadingii) This HS 6-digit average is then used as ba sis to calculate the simple tariff average for each
Member.
7 Final figure to be verified by the Secretariat.
8 If the rate (bound or in the case of unbound items, the MFN applied rate in 2001) is less than 10
percent, this lower rate shall remain in place.
9 These flexibilities do not apply to those products included in the sectorial tariff elimination approach.TN/MA/12
Page 10
b) least-developed country participants shall not be required to undertake reduction
commitments, as noted in paragraphs 7, 9, 10, 14, and 15.  As part of their contribution to this
round of negotiations, they are however expected to substantially increase their level of
binding commitments.
12. Furthermore, as a contribution to the integration of the LDCs into the multilateral trading
system and support for the diversification of their production and export base, it is proposed that
developed participants and other participants who so decide, grant on an autonomous basis duty-free
and quota-free market access for non-agricultural products originating from LDCs by the year […].
4. Newly Acceded Members
13. In addition to the provisions already set out in paragraph 11 above, and in order to take into
account the extensive market access commitments undertaken as part of their accession which are still
being implemented in many cases, participants could consider providing newly acceded Members the
following mechanisms:
• a higher coefficient in the formula
• a longer implementation period
• a "grace period" which would commence after implementation of current commitments
5. Supplementary Modalities
14. It is proposed that participants supplement additional tariff reduction and elimination made
through the formula and sectorial modalities above with zero-for-zero sector elimination, sectorialharmonization, and request & offer.
15. In addition, it is proposed that participants consider the elimination of low duties.
C.N ON-TARIFF BARRIERS
16.  The following elements are proposed for the modalities on NTBs:a) It is understood that the NGMA maintains overall responsibility for addressing non-tariff
barriers (NTBs) as part of the Doha Declaration;
b) The negotiating group will proceed with the identification and examination of the various
types of NTBs;
10
c) After completing the identification, participants will aim to categorise the NTBs as well as
clarify and seek additional information where necessary, and then proceed in the following
manner:
• Selected NTBs, to be agreed upon by the participants, would be dealt with by the NGMA
on the basis of modalities, which could include request/offer, horizontal, or vertical
approaches;
• NTBs that have a specific negotiating mandate in the Doha Declaration in other areas
should continue to be addressed in that body but information on the progress or outcome
of those negotiations should be reported to this group for transparency;
                                                     
10 In this respect, it is recalled that work has already been initiated with the notification of non-tariff
barriers by participants.TN/MA/12
Page 11
• Work on NTBs which relate to other areas of the Doha Declaration which currently do
not have a specific negotiating mandate would progress in other fora but information onthe progress should be reported to this group for transparency; and
• NTBs that currently do not have a specific negotiating mandate would, after further
clarification and if the group decides there is a need to send them to another WTO body,be reported to the TNC in order to be forwarded to the appropriate WTO body for action
and reporting back.
d) It is recognized that as the work progresses on NTBs, and without prejudice to the particular
type of NTB and the modalities to be agreed upon, participants will need to take fully into
account the principle of special and differential treatment for developing and least-developed
participants.
D.A PPROPRIATE STUDIES AND CAPACITY BUILDING
17. Paragraph 16 of the Doha Declaration and its reference to paragraph 50 provide, as part of themodalities, for appropriate studies and capacity building measures to assist least-developed countries
to participate effectively in the negotiations. In this regard, but also in a broader sense, it is proposed
that:
• Participants identify issues related to studies and other capacity building measures to further
improve participation in the negotiations. In addition, the Secretariat will continue to initiate these
matters when it undertakes work relevant to this negotiating group, including in cooperation with
other international organizations. 
11
• Participants initiate proposals to provide adequate delivery of technical assistance and capacity
building measures related to the negotiations on non-agricultural market access, keeping in mindthe measures already incorporated in the WT O Annual Technical Assistance/Capacity Building
Plans for both 2002 and 2003.
                                                     
11 It is noted that to date, a number of relevant st udies have been prepared or referenced, as follows:
Selective Bibliography of Research on Market Acce ss (TN/MA/S/1 + Add.1), Formula Approaches to Tariff
Negotiations (TN/MA/S/3 + Rev.1 + Rev.1/Add.1 + Rev.2), WTO Members' Tariff Profiles (TN/MA/S/4 +
Rev.1 + Rev.1/Corr.1), Formula Approaches to Tariff Negotiations – Secretariat Simulations using Members'
Tariff Concessions  (JOB (03)/67), Incidence of Non- Ad valorem  Tariffs in Members' Tariff Schedules and
Possible Approaches to the Estimation of Ad valorem  Equivalents (TN/MA/S/10), and Market Access Issues
Related to Products of Export Interest Originat ing from Least Developed Countries (TN/MA/S/7).TN/MA/12
Page 12
ANNEX I
Calculation of ad valorem  equivalents
1. Where Members have non- ad valorem  tariffs in their base rates, ad valorem  equivalents (AVEs)
for these rates will be calculated by the Secretariat using the following methodology:
• If import values and quantities are available in the IDB unit values shall be calculated at the tariff
line level.
• If import values and quantities are not available in the IDB at the tariff line level unit values of the
relevant HS 6 digit subheading of the Member's IDB data shall be used.
• If import values and quantities are not available in the IDB for a specific Member at the HS 6
digit level, world unit values, based on data available in the IDB and complemented by
information in the UN COMTRADE database, shall be used.
• Non ad valorem  tariffs for which AVEs cannot be calculated by the Secretariat because of the
technical nature of the duties concerned shall be assumed to have an AVE equivalent to the tariff
average (t a) as used in the formula in paragraph 7 of this document.
2. However, if the Member concerned so desires, they may calculate AVEs themselves if it is done
so in a transparent manner and uses the representative reference period.  Full details of the method
and data used for these calculations shall be included in the tables of supporting material for the draft
offers and shall be subject to multilateral review.  Members may ask the Secretariat for technicalassistance in their calculation of AVEs.TN/MA/12
Page 13ANNEX 2
List of proposal documents in the negotiating group
Participant(s) Symbol Title Date
Albania, Croatia, Georgia and
MoldovaTN/MA/W/29 Market Access for non-agricultural products 19 March 2003
Argentina, Bolivia, Brazil,
Chile, Colombia, Costa Rica,
Ecuador, El Salvador,
Guatemala, Mexico, Panama,
Paraguay, Peru, Uruguay and
VenezuelaTN/MA/W/45 Market Access for non-agricultural products 1 September 2003
Bangladesh on behalf of the
least developed countriesTN/MA/W/22 Market Access for non-agricultural products 8 January 2003
Barbados, Jamaica and Trinidad
and TobagoTN/MA/W/30 Market Access for non-agricultural products 25 March 2003
Bolivia TN/MA/W/28 Negotiating group on market access for non-agricultural
products28 February 2003
Canada, European
Communities, United StatesTN/MA/W/44 Market Access for non-agricultural products 1 September 2003
Canada TN/MA/W/9 Market Access for non-agricultural products 15 October 2002
Canada TN/MA/W/9/Add.1 Market Access for non-ag ricultural products – NTBs 4 March 2003
Chile TN/MA/W/17 Market Access for non-agricultural products 2 December 2002
Chile TN/MA/W/17/Add.1 Market Access for non-agricultural products 18 March 2003
China TN/MA/W/20 Market Access for non-agricultural products 24 December 2002
Colombia TN/MA/W/36 NGMA replies by Colombia to the questions in
JOB(03)/2716 May 2003
European Communities TN/MA/W/1 Market Access for non-agricultural products 24 June 2002
European Communities TN/MA/W/11 Market Access for non-agricultural products 31 October 2002
European Communities TN/MA/W/11/Add.1 Market Access for non-agricultural products 13 December 2002
European Communities TN/MA/W/11/Add.2 Market Access for non-agricultural products 1 April 2003
European Communities TN/MA/W/11/Add.3 Market Access for non-agricultural products 1 April 2003TN/MA/12
Page 14
Participant(s) Symbol Title Date
Egypt, India, Indonesia, Kenya,
Malaysia, Mauritius,
Nigeria, Tanzania, Uganda and
ZimbabweTN/MA/W/31 Market Access for non-agricultural products 25 March 2003
Fiji TN/MA/W/38 Market Access for non-agricultural products 16 June 2003
Ghana, Kenya, Nigeria,
Tanzania, Uganda, Zambia and
ZimbabweTN/MA/W/27 Market Access for non-agricultural products 18 February 2003
Ghana, Kenya, Madagascar,
Mauritius, Nigeria, Rwanda,
Tanzania, Tunisia, Uganda,
Zambia, and ZimbabweTN/MA/W/40 Market Access for non-agricultural products – Joint
statement on Draft Elements of Modalities for
Negotiations on Market Access for Non-Agricultural
Products11 August 2003
Hong Kong, China TN/MA/W/12 Market Access for non-agricultural products 12 November 2002
India TN/MA/W/10 Market Access for non-agricultural products 22 October 2002
India TN/MA/W/10/Add.1 Market Access for non-agricultural products 8 January 2003
India TN/MA/W/10/Add.2 Market Access for non-agricultural products –
Elaboration of India's proposal18 March 2003
India TN/MA/W/10/Add.3 Market Access for non-agricultural products 10 April 2003
Japan TN/MA/W/5 Market Access for non-agricultural products 5 August 2002
Japan TN/MA/W/15 Market Access for non-agricultural products 20 November 2002
Japan TN/MA/W/15/Add.1 Market Access for non-agricultural products 6 January 2003
Japan TN/MA/W/15/Add.2 Market Access for non-agricultural products 4 March 2003
Japan TN/MA/W/15/Add.3 Market Access for non-agricultural products 26 March 2003
Korea TN/MA/W/6 Market Access for non-agricultural products 5 August 2002
Korea TN/MA/W/6/Add.1 Market Access for non-agricultural products 7 January 2003
Korea TN/MA/W/6/Add.2 Market Access for non-agricultural products 16 June 2003
Korea TN/MA/W/6/Add.3 Market Access for non-agricultural products 15 July 2003
Latvia TN/MA/W/32 Answers to the questions provided by the Chairman of
Negotiating Group on Market Access (JOB(03)/27)30 April 2003
Malaysia TN/MA/W/43 Negotiating Group on Market Access:  Malaysia's
Proposal on Chairman's Tariff Reduction Formula1 September 2003
Mauritius TN/MA/W/21 Market Access for non-agricultural products 7 January 2003TN/MA/12
Page 15Participant(s) Symbol Title Date
Mauritius TN/MA/W/21/Add.1 Market Access for non-agricultural products 15 July 2003
MERCOSUR TN/MA/W/23 Market Access for non- agricultural products 15 January 2003
Mexico TN/MA/W/13 Market Access for non-agricultural products 12 November 2002
Morocco TN/MA/W/34 Market Access for non-agricultural products 9 May 2003
New Zealand TN/MA/W/4 Scope of the negotiation on NTBs 31 July 2002
New Zealand TN/MA/W/4/Add.1 Scope of the negotiation on NTBs - Modalities 4 March 2003
Norway TN/MA/W/7 Market Access for non-agricultural products 4 September 2002
Oman TN/MA/W/14 Market Access for non-agricultural products 19 November 2002
Papua New Guinea TN/MA/W/39 Market Access for non-agricultural products 2 July 2003
Qatar TN/MA/W/24 Negotiations on environmental goods:  efficient, lower-
carbon and pollutant-emitting fuels and technologies –Paragraph (iii)28 January 2003
Qatar TN/MA/W/33 Harmonized System (HS) Classification Codes Of Gas-
Related Goods - Paragraph 31 (iii)25 April 2003
Separate Customs Territory of
Taiwan, Penghu, Kinmen and
MatsuTN/MA/W/19 Market Access for non-agricultural products 20 December 2002
Separate Customs Territory of
Taiwan, Penghu, Kinmen and
MatsuTN/MA/W/19/Add.1 Market Access for non-agricultural products 16 May 2003
Separate Customs Territory of
Taiwan, Penghu, Kinmen and
MatsuTN/MA/W/19/Add.2 Market Access for non-agricultural products 7 July 2003
Separate Customs Territory of
Taiwan, Penghu, Kinmen and
MatsuTN/MA/W/19/Add.3 Market Access for non-agricultural products 8 July 2003
Secretariat compilation of
participant notificationsTN/MA/W/25 Non-tariff barrier notifications 28 March 2003
Secretariat compilation of
participant notificationsTN/MA/W/25/Add.1 Non-tariff barrier notifications 13 May 2003
Secretariat compilation of
participant notificationsTN/MA/W/25/Add.2 Non-tariff barrier notifications 27 June 2003TN/MA/12
Page 16
Participant(s) Symbol Title Date
Singapore TN/MA/W/8 Market Access for non- agricultural products 10 September 2002
South Africa TN/MA/W/42+Corr.1 Market Access for non-agricultural products 13 August 2003
Switzerland TN/MA/W/16 Market Access for non-agricultural products 28 November 2002
Thailand TN/MA/W/26 Market Access for non-agricultural products 17 February 2003
Turkey TN/MA/W/41 Market Access for non-agricultural products 12 August 2003
United Arab Emirates TN/MA/W/37 Market Ac cess for non-agricultural products 20 May 2003
United States TN/MA/W/2 Tariff and Trade Data Needs Assessment 3 July 2002
United States TN/MA/W/3 Negotiations on Environmental Goods 3 July 2002
United States TN/MA/W/18 Market Access for non-agricultural products 5 December 2002
United States TN/MA/W/18/Add.1 Market Access for non-agricultural products - Proposal
on modalities for addressing Non-Tariff Barriers (NTBs)25 March 2003
United States TN/MA/W/18/Add.2 Market Access for non-agricultural products - Revenue
Implications of Trade Liberalisation11 April 2003
United States TN/MA/W/18/Add.3 Market Access for non-agricultural products 16 June 2003
United States TN/MA/W/18/Add.4 Liberalizing Environmental Goods in the WTO:
Approaching the Definition Issue-  Paragraph 31 (iii)19 June 2003
United States TN/MA/W/18/Add.5 Market Access for non-agricultural products 7 July 2003TN/MA/12
Page 17ANNEX 3
Secretariat documents prepared for the group
Symbol Title Date
JOB(03)/67 Note by the Secretariat 4 April 2003
JOB(03)/128 Note by the Secretariat 3 July 2003
TN/MA/S/1 Selective bibliography of research on market access 5 April 2003
TN/MA/S/1/Add.1 Annotated Selective bibliography  of research on market access 3 September 2002
TN/MA/S/2 Data availability and software tools for tariff negotiations 3 September 2002
TN/MA/S/3 Formula approaches to tariff negotiations 9 September 2002
TN/MA/S/3/Rev.1 Formula approaches to tariff negotiations 4 November 2002
TN/MA/S/3/Rev.1/Add.1 Formula approaches to tariff negotiations 17 February 2003
TN/MA/S/3/Rev.2 Formula approaches to tariff negotiations 11 April 2003
TN/MA/S/4 WTO Members' tariff profiles 11 September 2002
TN/MA/S/4/Rev.1 + Corr.1 WTO Member s' tariff profiles 15 November 2002
TN/MA/S/5 Table of contents of the inventory
of non-tariff measures11 September 2002
TN/MA/S/6 List of  environmental goods 7 October 2002
TN/MA/S/7 Market access issues related to products of export interest originating from least
developed countries30 October 2002
TN/MA/S/8 Trade in environmental goods 2 December 2002
TN/MA/S/9 Current data availability in the integrated data base 17 February 2003
TN/MA/S/10 Incidence of non- ad valorem  tariffs in Members' tariff schedules and possible
approaches to the estimation of ad valorem  equivalents20 May 2003
__________