. /.WORLD TRADE
ORGANIZATIONTN/MA/W/11/Add.2
1 April 2003
(03-1835)
Negotiating Group on Market Access Original:  English
MARKET ACCESS FOR NON-AGRICULTURAL PRODUCTS
Communication from the European Communities
Addendum
The following communication, dated 31 March 2003, has been received from the European
Communities.
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1. In this submission to the negotiating group, the European Community wishes to specify
further the elements on which its compression mechanism is based.
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2. In the addendum to its second submission (TN/MA/W/11/Add.1), the European Community
proposed the following formula for line-by-line cuts to Members’ tariffs:
duty. initial   whereand interval, new in the limits same as 1 and 1 and interval, basein  limits upper  and lower  as 0 and 0with ) () (*) ( )(
0 01 1
0 1
=−−−+ =
xUBLBUBLBL UL U
L L
B BB BBx B xf
3. Following are the values that the EC proposes to use in the formula for three different
intervals of duties:
Compression Formula
Base Final
Interval 1 lower 0.00 0.00
upper 2.00 0.00
Interval 2 lower 2.00 1.60
upper 15.00 7.50
Interval 3 lower 15.00 7.50
upper 50.00 15.00
Interval 4 lower 50.00 15.00
upper ∞ 15.00
4. By applying these values to the formula, Members will achieve the ambitious objectives set
by Ministers in the Mandate agreed in Doha. Not only are high tariffs reduced and peaks eliminated,TN/MA/W/11/Add.2
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but also tariff escalation will be considerably reduced through the compression of tariff duties for
headings corresponding to products at different stages of processing.
5. As mentioned in our second submission we propose to adopt bolder approaches for products
of interest to developing and least developed countries. In particular, we propose that all Membersagree to deeper cuts for textiles, clothing, and footwear, with a view to bringing these tariffs within a
narrow common range as close to zero as possible. We reiterate that, in order for the benefits of the
initiative not to be frustrated, all non-tariff barriers as well as export restrictions on raw materials for
the products included in the initiative must equally be removed.
6. The European Community considers that this  single, common tier of basic commitments will
in itself respond to many of the development ob jectives of the Doha Mandate. The mechanism will
require that developing countries contribute on the basis of their current levels of bound tariffs.  This
means that in most cases their participation will not only be less than reciprocal – because of the
higher rates prevailing in developing countries’ sc hedules of tariff commitments – but will also offer
those which have a large gap between bound and applied duties the flexibility needed to protect
industries for which they have particular sensitivities.
7. In order to take further into account the interests, needs and different levels of development of
developing and least developed countries (inclu ding development, infant industry and revenue
concerns), the European Community reiterates its willingness to consider adding the following non-
reciprocal or asymmetric elements in the global package: unilateral tariff and quota elimination for allproducts from least developed countries, elimination of lower duties and a gradual phasing-in of
commitments for developing and least developed countries. Furthermore, we recognise that it may be
difficult for some developing countries to pursue so me of their development objectives if their tariffs
were to be “harmonised” with those of the developed countries. We are therefore ready to examine
requests for the appropriate modulations of the application of the compression formula in such cases.
8. We consider that all developed members must grant tariff and quota-free access to products
originating in least developed countries, and that the most advanced developing countries should also
join in this initiative.
9. We reiterate our desire for a substantial increase in the scope of bindings. All WTO Members
other than least developed countries should achieve a situation where they have full bindings.Although considerations concerning effective market access obtained through these bindings will be
of the utmost importance to us, we are willing to consider flexibility in terms of the difference
between bound and applied duties for those sectors that developing Members identify as particularly
sensitive.
10. The European Community proposes that for least developed countries, on the other hand, the
contribution to the round be mainly assessed on the basis of  bindings at rates that reflect the effective
need of protection that these countries have for some of their sectors.
11. Finally, we restate our desire to negotiate cuts that are deeper than the ones attained through
the formula we are proposing for those goods that are identified by the negotiating group as
environmental goods .
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