WORLD TRADE  
ORGANIZATION  TN/C/W/32 
31 August 2005 
 (05-3822) 
Trade Negotiations Committee 
21 and 28 July 2005 Original:   English 
 
 
 
KEY CONCERNS OF THE ACP GROUP IN AGRICULTURE 
 
 
 The following document by the delegation of Benin, on behalf of the ACP Group, under 
agenda item 4, at the TNC meeting of 28 July 2005,  is being circulated at the request of that 
delegation.  
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A. M
ARKET ACCESS  
1. General points 
 It is our firm belief that the final outcome of these negotiations should, while enabling the 
reform of agriculture continue, to make adequate provision for the co-existence and sustainability of 
the different forms of agricultural systems.  It is  only then that a balanced and equitable outcome 
would be achieved. 
 
 The ACP considers that the market access pillar given its complexity and the numerous 
interlinkages of its various elements, namely tari ff reduction formula, number of bands, thresholds for 
the bands, selection and treatment of sensitive products, special products , SSM and longstanding 
preferences, has to be addressed as a whole and s hould deliver a balanced package, which takes into 
account the interest of one and all, and in partic ular the interests and concerns of the small and 
vulnerable countries.  (In this regard, the ACP wish to point out that their vulnerability is a serious 
constraint to their competitiveness and this factor has to be reckoned with.  Indeed, one should never 
lose sight that we are in a development round.)  
 Accordingly although for practical reasons, we are in the negotiations addressing these issues 
in a compartmentalized manner, the ACP expects th at we should at the end of the day deliver a 
balanced package, which takes into account the interest of one and all, and in particular the interests 
and concerns of the small and vulnerable countries.  In this regard, the ACP wish to point out that 
their vulnerability is a serious constraint to their competitiveness and this factor has to be reckoned 
with.  Indeed, one should never lose sight that we are in a development round. 
  More specifically on market access, the ACP drawing essentially on its previous statements would like to point out to the following:  2. Tariff reduction formula 
 While we recognize that the tariff reduction form ula is the pivotal element of the MA pillar, 
we nevertheless wish to underscore that S&D is an integral part of th e market access pillar and 
accordingly should be negotiated in tand em with the tariff reduction formula. 
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  The ACP countries are proponents of the UR formula as this is the only formula that would 
ensure that the primary objectives of the group are met, i.e. to: 
(i) ensure that the appropriate level of flex ibility in the domestic market is retained to 
enable domestic production to thrive in the ACP countries;  and 
 
(ii) mitigate the erosion of preferential marg ins, which will inevitably result from tariff 
reduction; 
  Moreover, all tariff reductions s hould be made from the bound tariffs. 
 
 The above measures are vital for the very surviv al of the Agriculture sector of ACP countries. 
  Accordingly, for the ACP, the use of the Sw iss formula or any other harmonizing formula 
within the bands of the tiered formula is not accepta ble.  Instead, a linear formula, within each band, 
to provide the necessary flexibilit y, is our preferred option. 
 
 Furthermore the ACP would wish to underscore that any discussion on the tariff reduction formula should not prejudice the negotiations on pa ragraphs 41 and 44 of the Framework Agreement. 
 
3. Single approach 
 For the ACP the terms single approach of para graph 28 of FA has to be viewed from an S&D 
and greater flexibility perspectives when applied to  developing countries.  Indeed for us the DCs 
should have an appropriate number of tiers to better suit their tariff structure; thresholds different from 
those applicable to developed countries, lower reduction rates; and longe r implementation period. 
 
4. Inclusion of tariff lines in tiers 
 The mechanical approach of allocating equa l number of tariff line in each tier is not 
acceptable to the ACP.  Indeed the mode of allocation to the tiers would have to be worked out so as 
to cater for the tariff structure of the Developing countries. 
  In deciding thresholds, the tariff structure of  developing countries shoul d be duly taken into 
account.  In this regard it should be noted that many  ACP have ceiling bindings and are likely to find 
most of their tariffs in the top tiers and subjected to deeper cuts.  Therefore there should be special 
consideration for developing countries w ith ceiling bindings in the negotiations. 
 
5. Overlaps 
 We have taken note of the need to resolve the overlap issue and we would look into the 
implications of the various proposals thereon for our group. 
 
6. Tariff capping 
 The ACP have noted that tariff capping w ould be detrimental to both their domestic 
interests, in particular the ceiling bindings, and th eir export interests i.e. their preferential margins.  
Accordingly this concept is not acceptable to the ACP. 
 
7. LDCs 
 LDCs shall be exempted from tariff reduc tion commitments and we invite developed 
countries and developing countries, in a position to do so, to provide bound duty and quota free 
market access to products originating in LDCs.  TN/C/W/32 
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 8. Recently acceded members 
 Due flexibility be granted to recently acceded Members. 
 
9. Sensitive products (paragraphs 31-34 of the Agreed Framework) 
 The ACP has time and again drawn attenti on to the importance of this issue for its 
constituency.  Accordingly, it is critical that produc ts relating to longstanding preferences be deemed 
to be sensitive products.  In this regard, the AC P would wish to be closely associated with all 
discussions on the selection and treatment of sens itive products so as to ensure transparency, 
inclusiveness and political ownership and acceptability  of the outcome of negotiations.  Once again 
we wish to reiterate that we do , not want to see a repeat of the AVE process here. 
 
10. Tariff escalation 
 We do agree that work has to be done in r espect of tariff escalation and in this regard 
however, the ACP would like to point out that th is exercise may result in an erosion of tariff 
preferences.  Accordingly the ACP considers that th e issue of preference erosion should be viewed in 
a holistic.  manner. 
 
11. Special Products and SSM 
 The ACP cornprises the majority of the G33, and it is therefore only natural that the group 
fully supports the statement made by the G33 on special products and SSM.  12. Longstanding preferences 
 The issue of preferences is vital for the ACP countries, many of which are small and 
vulnerable developing countries.  Indeed, some 50 per cent of the ACP constituency are LDCs, the 
rest are mainly Small Island Developing Stat es, landlocked countries, and Net-Food Importing 
Developing Countries (NFII)Cs) whose inherent vulnerab ility and lack of resilien ce to external shocks 
expose them to a high risk of marginalization from the multilateral trading system. 
 
 The incorporation, in paragraph 44 of the Fr amework Agreement, of provisions for the full 
recognition of the importance of longstanding prefer ences, was undoubtedly one of the critical factors 
contributing to the acceptance by the G90 and its cons tituent elements, of the delicate balance struck 
in the Framework Agreement. 
 
 The terms of paragraph 44 and its positioning in the part devoted to S&D measures in respect 
of the market access pillar in th e Framework Agreement should be gi ven equal weight in the work 
leading to the establishment of modalities.  Ind eed, we should always bear in mind the basic 
philosophy of the Doha Development Agenda as we ll as of the provisions of paragraph 13 of the 
Doha Declaration on the treatment to be afforded to S&D. 
  The adequate treatment of paragraph 44 will play  a key role in shaping the ACP's view on the 
consensus that has to be  secured in the meeting. 
 
 We must remind ourselves that we have been able throughout the fifty years of existence of 
the GATT/WTO system to reconcile significant progress in multilateralism with preferences. TN/C/W/32 
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 B. E
XPORT COMPETITION  
13. Paragraphs 20 and 21 of the Framewor k Agreement (Implementation of Export 
Competition Measures) 
 (i) implementation issues can be viewed with greater clarity once the other elements of 
the modalities on the various forms of export competition have been finalized; 
 
 (ii) The phasing out of export competition measures should take into account the 
importance of long-standing preferences; 
 
 (iii) Paragraphs 20 and 21 have  to be considered along with the S&D dimension spelt out 
in paragraphs 22 to 25. 
 
14. Food Aid (paragraph 18, fifth bullet of the Framework) 
Food security is a key component of the food security cluster which includes food aid, 
export credits, STEs, SP/SSM, food procurement capacity and domestic food production.  The issue 
of food aid is an important one and has to be viewed both from the pr ovider and the receiver 
perspectives.  The objectives for rules and disci plines on food aid would have to refer to: 
 (i) Non-emergency food aid;  (ii) emergency food aid; 
 
(iii) exceptional circumstances as referred to in paragraph 26 of the Framework 
Agreement 
 
15 Exporting State Trading Enterprises (paragraphs 18, fourth bullet, 19-22 and 25 of the 
Framework) 
First and foremost the general and S&D provisions on this issue should be developed in 
tandem.  The export STEs in ACP countries are and cannot be trade dist orting, accordingly, these 
STEs be exempt from the additional disciplines to be developed. 
 
 Import STEs of DCs will not be subject to any additional disciplines. 
 
C. D
OMESTIC SUPPORT  
16. Blue Box (paragraphs 6 and 13-15) 
The criteria to be negotiated should ensure that the purpose and objectives of the Blue Box 
are appropriately fulfilled. 
 
17 Green Box (paragraph 16 of the Agreed Framework) 
The ACP would focus on the S&D part of the checklist and in this regard considers that 
attachment 9 of Rev.1 provides a useful background for future work.  D. P
ARAGRAPH 48 OF THE FRAMEWORK AGREEMENT (MONITORING AND SURVEILLANCE ) 
 The ACP welcome the principle of reinfor ced rules on monitoring and surveillance, but 
would nonetheless point out that the difficulties of  the ACP to comply with the new set up for  TN/C/W/32 
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 notifications has to be reckoned.  Technical assi stance and capacity building should be provided in 
this regard.  E. C
OTTON  
 On Cotton, the following objectives are central to a successful outcome in the negotiations.  
This relates to the need to; elim inate all forms of cotton export subsidies and improve market access 
for international trade in cotton.  In this context it is essential that there is a clear delivery on bound, 
duty-free and quota-free access for cotton and its by -products for the LDCs that are net cotton 
producers and exporters; eliminate the domestic su pport measures and the creation of an emergency 
support fund for cotton production. 
 
 
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