WORLD TRADE
ORGANIZATIONWT/MIN(03)/W/11
8 September 2003
(03-4683)
MINISTERIAL CONFERENCE
Fifth SessionCancún, 10 - 14 September 2003Original:  English
CARICOM PROPOSALS FOR AMENDMENT TO THE ANNEX A OF THE DRAFT
CANCÚN MINISTERIAL TEXT (JOB(03)/150/REV.1)
Communication from Jamaica
The following communication, dated 5 September 2003, has been received from the
Permanent Mission of Jamaica on behalf of CARICOM.
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Page 2CARICOM Proposals for Amendment to the Annex A of the Draft Cancún Ministerial Text (JOB(03)/150/Rev.1)
Annex A
Framework for Establishing Modalities in Agriculture CARICOM Proposals
Participants reaffirm their commitment to the mandate on
agriculture as set out in paragraph 13 of the Doha Ministerial Declaration.
Participants recognize that reforms in all areas of the negotiations are inter-
related and agree to conclude the work to establish modalities for the
further commitments, including provisions for special and differential
treatment, within the timeframe specified in paragraph 4 of the CancúnMinisterial Text, on the basis of the following framework:
Domestic Support
1. The Doha Ministerial Declaration calls for “substantial reductionsin trade-distorting domestic support”.  All developed countries shallachieve reductions in trade-distorting support significantly larger than in
the Uruguay Round, that will result in Members having the higher trade-
distorting subsidies making greater efforts.
Reductions shall take place under the following parameters:
1.1. Reduce the Final Bound Total AMS in the range of […]% - […]%.
1.2 Reduce de minimis by […]%.
1.3 Article 6.5 of the Agreement on Agri culture will be modified so as
Members may have recourse to the following measures:
(i) direct payments if:
  - such payments are based on fixed areas and yields; or
  - such payments are made on 85% or less of the base level of
production; or
  - livestock payments are made on a fixed number of head. 
(ii)  support under 1.3(i) shall not exceed  5% of the total value of
agriculture production in the 2000-2002 period by […].  Subsequently,
such support shall be subject to  an annual linear reduction of […]% for afurther period of […] years.
1.4 The sum of allowed support under the AMS, support underparagraph 1.3(i) and de minimis  shall be reduced in the first period referred
to in paragraph 1.3(ii) so that it is significantly less than the sum of de
minimis , payments under Article 6.5, and the final bound AMS level, in
2000.WT/MIN(03)/W/11
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Framework for Establishing Modalities in Agriculture CARICOM Proposals
1.5 Green Box criteria remain under negotiation. The following text is proposed as a replacement for paragraph 1.5:
There shall be reform of the green box through the strengthening and refinement
of the qualifying criteria
Special and differential treatment
1.6 Having regard to their development, food security and/orlivelihood security needs, developing countries shall benefit from specialand differential treatment, including lower reductions of trade-distorting
domestic support under paragraphs 1.1, 1.3 and 1.4 above, longer
implementation periods and with respect to the provisions of Article 6.2 of
the Agreement on Agriculture and of the Green Box.
1.7 Developing countries shall be exempt from the requirement toreduce de minimis  trade-distorting domestic support.
Market Access
2. The Doha Ministerial Declaration calls for “substantial
improvements in market access.”  Negotiations should therefore provide
increased access opportunities for all and in particular for the developing
countries.  To achieve this, commitments shall be based on the followingparameters:
2.1 The formula applicable for tariff reduction by developed countriesshall be a blended formula under which each element will contribute to
substantial improvement in market access.  The formula shall be as follows:
(i) […]% of tariff lines shall be subject to a […]% average tariff cutand a minimum of […]%; for these import-sensitive tariff lines market
access increase will result from a combination of tariff cuts and TRQs.The following amendment to paragraph 2.1(i) is proposed:
Developed countries shall ensure that all products that are the subject of long-
standing preferences to developing country beneficiaries are placed in this
category. In addition, any TRQ expansion for these products shall be pro rated
according to historical shares of the ma rket. Further, no product that is the
subject of long-standing preferences shall be subject to the provisions of 2.2 below.
(ii) […]% of tariff lines shall be subject to a Swiss formula coefficient[…].
(iii) […]% of tariff lines shall be duty-free.WT/MIN(03)/W/11
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Framework for Establishing Modalities in Agriculture CARICOM Proposals
2.2 For the tariff lines that exceed a maximum of […]% developed-country participants shall either reduce them to that maximum, or ensure
effective additional market access in these or other areas through a request-offer process that could include TRQs.
2.3 The issue of tariff escalation will be effectively addressed.
2.4 The use and duration of the special agricultural safeguard (SSG)remains under negotiation.
Special and differential treatment
2.5 Having regard to their development, food security and/or
livelihood security needs, developing countries shall benefit from special
and differential treatment, including lower tariff reductions and longerimplementation periods.
2.6 The formula applicable for tariff reductions by developingcountries shall be as follows:
(i) […]% of tariff lines shall be subject to a […]% average tariff cutand a minimum of […]%; for these import-sensitive tariff lines market
access increase will result from a combination of tariff cuts and TRQs.
Within this category, developing countries shall have additional flexibility
under conditions to be determined to designate Special Products (SP)
which would only be subject to a linear cut of a minimum of […]% and nonew commitments regarding TRQs.The following amendment to paragraph 2.6(i) is proposed:
(i) […]% of tariff lines shall be subject to a […]% average tariff cut and a
minimum of […]%; for these import-sensitive tariff lines market access increase will
result from a combination of tariff cuts and TRQs. However, where any product
constitutes less than […]% of global imports for the country concerned, there
shall be no requirement to limit the products included in this category to import-
sensitive tariff lines, or to establish or expand TRQs .  Within this category,
developing countries shall have additional flexibility under conditions to be determined
to designate Special Products (SP) which would only be subject to a linear cut of a
minimum of […]% and no new commitments regarding TRQs.
It is proposed that the following be added to paragraph 2.6:
(iv) […]% of tariff lines, which shall not be subject to tariff reduction, provided
that, for the country concerned, the import s associated with any such tariff line
comprise no more than [...]% of global imports.WT/MIN(03)/W/11
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Framework for Establishing Modalities in Agriculture CARICOM Proposals
(ii) […]% of tariff lines shall be subject to […]% average tariff cut anda minimum of […]%.
(iii) […]% of tariff lines shall be subject to […]% average tariff cut anda minimum of […]%.
or in place of (ii) and (iii) above
(ii) […]% of tariff lines shall be subject to a Swiss formula coefficient
of […].
2.7 The applicability and/or extent of the provisions of paragraph 2.2above to developing countries remain under negotiation, taking into
account their development needs.The following addition to paragraph 2.7 is proposed:
Where the imports of the product by a developing country constitute less than
[...]% of global imports of that product, paragraph 2.2. shall not apply
2.8 A special agricultural safeguard (SSM) shall be established for useby developing countries subject to conditions and for products to bedetermined.The following amendment to paragraph 2.8 is proposed:
2.8 A special agricultural safeguard (S SM) shall be established for use by
developing countries subject to conditions and for products
 to be determined.
[new proposal] The following new paragraph is proposed:
Developing countries shall have additional flexibility, under conditions to be
determined, to designate Special Products (SP) which would only be subject to a
linear cut of a minimum of […]% and no new commitments regarding TRQs,
2.9 All developed countries will seek to provide duty-free access for atleast […]% of imports from developing countries through a combination ofMFN and preferential access.
2.10 Participants undertake to take account of the importance ofpreferential access for developing countries.The following amendment to paragraph 2.10 is proposed:
2.10 Participants undertake to take account of the importance of preferential access
for developing countries , including the special preferences received by small
vulnerable developing economies, including SIDS.WT/MIN(03)/W/11
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Framework for Establishing Modalities in Agriculture CARICOM Proposals
[new proposal] The following new paragraph is proposed:
As an exception to the modality under paragraph 2.1 above, tariff reductions
affecting long-standing preferences in resp ect of products which are of vital export
importance for developing country beneficiaries of such schemes may be
implemented in equal annual instalments over a period of […] years by the
preference-granting participants concern ed, with the first instalment being
deferred to the beginning of the […] year of the implementation period that wouldotherwise be applicable.  The products concerned shall account for at least […]
per cent of the total merchandise exports of any beneficiary concerned on a three-
year average out of the most recent […]-y ear period for which data are available.
Interested beneficiaries shall notify the Committee on Agriculture, Special Session
accordingly and submit the relevant statistics .  In addition, any in-quota duties for
these products shall be eliminated.  The preference-providing Members shall
undertake targeted technical assistance programmes and other measures, asappropriate, to support preference-receiving countries in efforts to diversify their
economies and exports.
Export Competition
3. The Doha Ministerial Declaration calls for “reductions of, with a
view to phasing out, all forms of export subsidies.”  To achieve this,
disciplines shall be established on export subsidies, export credits, export
state trading enterprises, and food aid programs.  Reduction commitments
shall be applied in a parallel manner according to the following parameters:
3.1 With regard to export subsidies:
- Members shall commit to eliminate over a […] year period export
subsidies for the following products of particular interest to developingcountries […];
- for the remaining products, Members shall commit to reduce, witha view to phasing out, budgetary and quantity allowances for export
subsidies.
[new proposal] The following is proposed as an additional element of paragraph 3.1:
Nevertheless, for products that are exported under preference by developing
countries, members shall commit to phasing out export subsidies on these
products over an extended time frame.WT/MIN(03)/W/11
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Framework for Establishing Modalities in Agriculture CARICOM Proposals
3.2 With regard to export credits:
- Members shall commit to eliminate, over the same period as in the
first indent of paragraph 3.1 the trade-distorting element of export credits
through disciplines that reduce the repayment terms to commercial practice
([…] months), for the same products in the second indent of paragraph 3.1in a manner that is equivalent in effect;
- for the remaining products, a reduction effort, with a view tophasing out, that is parallel to the reduction in the second indent of
paragraph 3.1 in its equivalent effect for export credits shall be undertaken.
3.3. Without prejudging the outcome of the negotiations, reductions of,with a view to phasing out, all forms of export subsidies mentioned in
paragraphs 3.1 and 3.2 will occur on a schedule that is parallel in its
equivalence of effect on export subsidies and export credits.
3.4 The provisions related to the reductions of, with a view to phasingout, all forms of export subsidies under paragraphs 3.1, 3.2 and 3.3 above
shall apply equally to all forms of expo rt subsidies related to or provided,
directly or indirectly, to, by or through export state trading enterprises.
3.5 Additional disciplines shall be agreed in order to preventcommercial displacement through food aid operations.
3.6 The question of the end date for phasing out of all forms of exportsubsidies remains under negotiation.
3.7 Strengthening of Article 12 of the Agreement on Agriculture onexport prohibitions and export restrictions will be addressed in the
negotiations.
Special and differential treatment
3.8 Developing countries shall benefit from longer implementation
periods for reductions of, with a view to phasing out, all forms of export
subsidies.
3.9 Until such time as the phasing out of all forms of export subsidiesis completed, developing countries shall continue to benefit from the
special and differential treatment provisions of Article 9.4 of the
Agreement on Agriculture.The following is proposed as an addition to paragraph 3.9:
Where the total exports of a developing country constitute less than […]% of
global exports, that country will continue to benefit from the special and
differential treatment provisions of Article 9.4 of the Agreement on Agriculture onan indefinite basis.
3.10 Participants shall ensure that the disciplines on export credits to beWT/MIN(03)/W/11
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Framework for Establishing Modalities in Agriculture CARICOM Proposals
agreed shall make appropriate provision for differential treatment in favourof least-developed and net food-importing developing countries as provided
for in paragraph 4 of the Decision on Measures Concerning the PossibleNegative Effects of the Reform Programme on Least-Developed and Net
Food-Importing Developing Countries.
Other
4. Least-developed countries shall be exempt from reduction
commitments.  The objective of duty-free and quota-free market access for
products originating from least-developed countries shall be expeditiously
pursued.
5. The particular concerns of recently acceded Members shall beeffectively addressed.
6. Subject to the provisions of the framework set out in paragraphs 1to 5 above, relevant parts of the Revised First Draft of Modalities and the
related questions specified in the report of the Chairman of the Committee
on Agriculture Special Session to the TNC (TN/AG/10 refers) will serve asreference documents for the further work on modalities, including with
respect to the following issues of interest but not agreed: product-specific
commitments in domestic support, terms of expansion/opening of TRQs,
in-quota tariff rates, single desk export privileges, export taxes, proposals
for flexibility for certain groupings, certain non-trade concerns,implementation period, sectoral initiatives, inter-pillar linkages,  peace
clause, continuation clause, GIs, and other detailed rules.
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