./.  WORLD TRADE  
ORGANIZATION  TN/MA/W/65 
8 November 2005 
 (05-5233) 
Negotiating Group on Market Access Original:   English 
  
 
MARKET ACCESS FOR NON-AGRICULTURAL PRODUCTS 
 
Flexibilities for Developing Countries 
 
 
Communication from Argentina, Bolivarian Repub lic of Venezuela, Brazil, China, Egypt,  
India, Indonesia, Namibia, Pakistan, Philippines and South Africa 
 
 The following communication, dated 3 November  2005 is being circulated at the request of 
the Delegations of Argentina, Bolivarian Republic of Venezuela, Brazil, China, Egypt, India, 
Indonesia, Namibia, Pakistan, Philippines and South Africa.  
 
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 In the run up to the Hong Kong Ministerial conference, Members have been discussing three 
elements of the NAMA package together due to th e perceived inter-linkage between them;  these are 
the formula, flexibilities and the treatment of unboun d tariff lines.  Resolution of these three issues is 
essential for ending the current stalemate.   
 With regard to flexibilities, we recall the pr ovisions contained in paragraph 8 of the July 
Framework Agreement:   
“8.We agree that developing-country participants shall  have longer implementation 
periods for tariff reductions.  In addition, they shall  be given the following flexibility: 
applying less than formula cuts to up to [10] percent of the tariff lines provided that 
the cuts are no less than half the formula cu ts and that these tariff lines do not exceed 
[10] percent of the total value of a Member’s imports; or 
keeping, as an exception, tariff lines unbound, or not applying formula cuts for up to 
[5] percent of tariff lines provided they do no t exceed [5] percent of the total value of 
Member’s imports. 
We furthermore agree that this flexibility could not be used to exclude entire HS 
Chapters.”   (emphasis added) 
 This Paragraph was agreed to in the July 2004 Framework to operationalize the special and 
differential treatment in the NAMA negotiations by  taking fully into account the special needs and 
interests of developing country participants in accordance with Article XXVIII bis and Part IV of 
GATT 1994.  The Doha Mandate reiterates the prin ciple of less than full reciprocity and makes a 
specific reference to these provisions so as to provide policy space to the developing country 
Members to address their developmental concerns.  
 
 We regard the provision of paragraph 8 fl exibilities for developing countries as an essential 
element of the flexibilities required by developing countries to manage their adjustment processes. TN/MA/W/65 
Page 2  
 
 We therefore oppose attempts bei ng made to reinterpret this ag reement by establishing further 
conditionalities on the use of paragraph 8 and thus change the balance of the agreement that was 
reached by all WTO members in the July 2004 Framework Agreement. We view the numbers currently contained within the brackets of para graph 8 as constituting the minimum percentages 
required by developing countries. We retain the right to adjust these numbers upwards to enable some 
of our economies to manage the adjustment of sensitive sectors and prevent the social disruption 
caused by job losses and closure of enterprises that would result from further liberalization.  
  In addition, we emphasize that paragraph 8 is a ‘stand-alone’ provision in the agreed NAMA 
framework and its position as such must be recognized  if negotiations are to move ahead.  Any move 
to link it, or use it as a trade-off with the tari ff reduction formula will create unnecessary difficulties in 
the negotiations. The two issues are separ ate and should be treated as such.  
 
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