G/AG/29  
 
31 October 2019  
(19-7331) Page: 1/4 
Committee on Agriculture    
 
 
REVIEW OF THE OPERAT ION OF THE BALI DECI SION ON TRQ ADMINIST RATION  
REPORT TO THE GENERA L COUNCIL  
1.1.  At the Ninth Session of the Ministerial Conference, Ministers adopted the Decision on 
"Understanding of Tariff Rate Quota Administration Provisions of Agricultural Products, as defined in 
Article  2 of the Agreement on Agriculture" (WT/MIN(13)/39)  ("Bali TRQ Decision "). Ministers 
instructed the Committee to review and monitor the implementation of Members ' obligations 
established under th e Bali TRQ Decisi on with the objective that the review will promote a continuing 
process of improvement in the utilization of tariff rate quotas, commencing no later than 2017, 
taking into account experience gained up to that time.1 The Review discussions commenced at the 
October 2017 meeting of the Committee.2 At the February 2018 meeting, the Committee agreed to 
the process and timelines to conduct the Review in document G/AG/W/171.3 As per the agreed 
procedure, the review has been conducted through open -ended informal me etings of the Committee 
scheduled back -to-back with the regular meetings of the Committee.4 
1.2.  Members discussed the Review in four informal meetings of the Committee in 2018 on 
20 February, 11  June, 25 September and 26 November. A thematic session on tariff quota 
administration and underfill was held during the November informal meeting involving the 
participation of industry representatives. The review discussions also benefitted from a number of 
written contributions by Members. Similarly, in response to re quests from Members and as per the 
agreed process and timelines to conduct the review, the Secretariat prepared a background paper5 
on tariff quota administration and fill rates to facilitate the Review. Annex 1  includes a list of all 
written documents con sidered thus far in the review.  
1.3.  Members have identified the following themes in the review discussions: 1) Effective 
implementation and follow -up of the substantive obligations arising out of the Bali TRQ  Decision; 
2) TRQ transparency requireme nts; 3) Und erfill Mechanism. Some elements6 raised under each of 
the three themes, including during the thematic discussions in November , are indicated below.  
EFFECTIVE IMPLEMENTATION AND FOLLOW -UP  
i. Reallocation of unused -licenses within a TRQ;  
ii. Reallocation process es, including  regarding country -specific allocations7; 
iii. Sharing of experiences and best practices on improving TRQ fill, including reallocation 
of TRQs under RTAs.  
                                                
1 Paragraph 13 of WT/MIN(13)/39 . No experience with regard to recourse to the Underfill Mechanism 
has yet been reported.  
2 Section 2.2.1 of G/AG/R/86 refers.  
3 Section 2.5.1 of G/AG/R/87 refers.  
4 At the June 2019 meeting, the Committee agreed to extend the timeline to the October 2019 meeting 
of the Committee to finalize the report of the Review.  
5 G/AG/W/183.  
6 There is no agreement among Members on these elements or their treatment in the recommendations. 
7 Paragraph 9 of the Bali Ministerial Decision on TRQ  refers to the reallocation process. Additionally, 
footnote s 3 and 5 of Annex A of the Bali Decision  refer to the rights of Members holding a country -specific 
allocation specifically in the context of the underfill mechanism . G/AG/29  
 
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  TRQ TRANSPARENCY REQUIREMENTS   
i. Timely and complete TRQ notifications;  
ii. Prompt reporting of chan ges in TRQ administration;  
iii. Consistent reporting of fill -rates by all Members with TRQ commitments;  
iv. Harmonized notifications practices (e.g. for TRQs not opened or scheduled TRQs with 
no tariff advantage);  
v. Reporting of reasons of underfill;  
vi. Sharing of natio nal experiences and best practices of TRQ administration;  
vii. Special and differential treatment (Burdensomeness of notification requirements);  
viii. Linkage with notification requirements in the area of import licensing procedures;  
ix. Technical assistance by the Secre tariat towards improved notification compliance 
of Members.  
UNDERFILL MECHANISM  
i. Differing obligations of Members (paragraph 4 of Annex A);  
ii. Special and differential treatment;  
iii. Potential less -than-universal applicability in future;  
iv. Linkage between Annex B and paragraph 4 of Annex A;  
v. Exploration of the causes of underfill;  
vi. Targeted examination of TRQ underfill in some specific sectors;  
vii. Practical applicability of the Underfill Mechanism (exploration of reasons including 
potential complexity, as to why it has not yet been invoked, sharing of experiences, 
simplification of procedural requirements);  
viii. Maintenance of list of underfilled TRQs by the Secretariat.  
1.4.  On the issue of future operation of paragraph 4 of the Underfill Mechanism and the associated 
S&D provisio n, Members' positions were divergent . Some developing Members maintained that 
S&D provisions in the Bali TRQ Decision should not be diluted; some other Members argued that the 
S&D treatment for developing countries should not lead to a carve out and that the beneficiary 
developing countries should rather assume commitments with regard t o the management of 
TRQs taking into account their development status .  
1.5.  Several  Members considered the scope of this review to be limited to seeking improvement in 
TRQ administration to distinguish it from the market access negotiations.  Some others  referr ed to 
the possibility of taking  up the TRQ -related issues in the market access negotiations.  
Pursuant to paragraphs 13 -15 of the Bali TRQ Decision (WT/MIN(13)/39), the Committee at its 
meeting on 31 October 2019  agrees to the following recommendations as i ncluded in  Annex 2  to 
this report  for consideration by the General Council .  
 G/AG/29  
 
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  ANNEX 1  
List of documents  
G/AG/W/169  
10 October 2017  Monitoring and review of Members' obligations established under the Bali Decision on 
TRQ administration.  
 
Note by the Secretariat  
G/AG/W/171  
9 February 2018  Proposed process for the Review of the Operation of the Bali Decision on TRQ 
Administration.  
 
Note by the Secretariat  
G/AG/W/175  
18 May 2018  
 
and 
G/AG/W/175/Add.1  
7 May 2019  
 European Union submission to Committee on Agriculture on the Process for the 
Review of the Operation of the Bali Decision on Tariff Rate Quota Administration1. 
 
 
Communications from the European Union  
G/AG/W/179  
6 June 2018 Review of the Operation of the Bali Ministerial Decision on "Understanding on Tariff 
Rate Quota Administration provisions of Agricultural Products… "2. 
 
Submission from the Cairns Group  
G/AG/W/183  
31 July 2018  Tariff quota administration methods and fill rates 2007 -2016.  
 
Background Paper by the Secretariat  
G/AG/W/186  
19 September 2018  Review of Bali Decision on TRQ administration.  
 
Submission from Australia  
G/AG/W/197  
24 May 2019  The Underfill Mechanism of the Bali TRQ Administration Decision  
Submission on behalf of the Cairns Group  
                                                
1 Document G/AG/W/171 of 9 February 2018.  
2 WT/MIN  (13)/39 AND WT/L/914 dated 11 December 2013 . G/AG/29  
 
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  ANNEX  2 
1. The timeframe specified in Paragraph 14 and footnote 2 of the Bali TRQ Decision for a decision 
on Paragraph  4 of Annex A shall  be extended to the end of 2021.  All references to 
"12th Ministerial Conference " and "31 December 2019 " in paragraphs  13-14 and footnote 2 of 
the Bali TRQ Decision shall be understood to read "13th Ministerial Conference " and 
"31 December 2021 " respectively.  In all other respects, the terms of the Bali TRQ Decision 
remain unchanged.  For greater certainty, Members listed in Annex B of the Bali TRQ Decision 
retain the right to discontinue application of paragraph 4 of Annex A  on or  after 
31 December  2021 if neither a Ministerial Conference nor  the General Council has decided to 
extend paragraph  4 of Annex A by that date.  
2. Recognizing the importance of enhanced transparency of TRQ administration and fill rates as 
well as a timely submission of notifications by Members , and acknowled ging that the on-line 
agriculture notification system should lead to improved harmonization,  the Committee agrees 
on the following:  
a) The Secretariat will prepare a list of the existing TRQ notification practices of Members 
including in cases where a scheduled TRQ was not  opened .  
b) The Committee will initiate discussions on harmonization of Members' TRQ notification 
practices, including for the TRQ fill rates.  
c) The Committee encourages  Members to include an explanation in their Table MA:2 
notifications in cases where schedu led TRQs are not opened.  
d) The Secretariat will regularly update the information on TRQ administration and fill rates as 
included in G/AG/W/1831 as well the updated information on which Members have notified 
fill rates and on questions raised in the Committe e concerning fill rates.  
3. The Committee agrees to undertake regular reviews of the operation of the Bali TRQ Decision 
every three  years  after the conclusion of this review . These regular reviews will include, 
inter alia, an examination of the utilization of the Underfill Mechanism based on submissions 
by Members.  
 
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1 The Secretariat background note may specifically include a list of TRQs  where no Table MA:2 notification 
has been submitted or where the fill rate is below 65 %.