. /.  WORLD TRADE  
ORGANIZATION  TN/MA/W/55 
20 April 2005 
 (05-1632) 
Negotiating Group on Market Access Original:   English 
  
 
MARKET ACCESS FOR NON-AGRICULTURAL PRODUCTS 
 
How to create a Critical Mass Sectoral Initiative
 
 
Communication from Canada and the United States1 
 
1. A sectoral negotiation based on the concept of achieving critical mass is a simple approach to 
reducing trade barriers.  Critical mass provides negotia tors with a great deal of flexibility while setting 
the goal of requiring participation based on trade patterns.  Specifically, critical mass represents a 
negotiated level of participation based on the share of world trade that interested  Members determine 
should be covered in order for those  Members to be willing to reduce rates in a given sector.  If the 
sectoral succeeds, all participants implement reductions on an MFN basis so all WTO members’ benefit.    The process involves the following steps: 
 
• Develop a general definition of the sector and its HS coverage. 
 
• Review trade patterns by sector: share of world trade by Member as an initial tool to get 
started.   Also consider whether there are other releva nt data (e.g., global production 
figures) that could help in assessing key players. 
 
• Consider which participants you would like to begin discussions with to determine where 
there may be interest ultimately in participa tion (based on trade interests and/or public 
expressions of interest.) Potential particip ants don’t necessarily have to be important 
traders in the sector today; they could include countries with potential for trade in the future.  
 
• With interested parties, consider who woul d be the key countries that would need to 
participate in order for potential  participants to be willing to go to the sectoral 
harmonization rate (zero or other) without con cerns about major free riders receiving the 
MFN benefits. 
 
• Determine, given the sectoral trade patterns what would be a reasonable level of critical 
mass (80 percent, 90 percent, etc.).  Review  the data and show how the cumulative share 
information can help dete rmine this figure.   
 
• Consider what the target tariff rate should be:  e.g., zero, harmonization? 
 
• Consider what the product coverage should be (e .g., all of the sector?  Sub-parts of the 
sector?). 
• Discuss possible approaches to deal with sensitivities and/or less than full reciprocity as 
means to attract more participation  (staging and product/sub-chapter x-outs). 
                                                      
1   This document was circulated earlier as a JOB(05)/37. TN/MA/W/55 
Page 2  
 
  
• Encourage Member participation so that in the event that some key traders don’t 
participate critical mass can still be achieved. 
 
• If critical mass level is not achieved or a key tr ader does not participate, consider whether 
and under what conditions core pa rticipants may wish to proceed  with the initiative (e.g., 
set target and keep working to gain particip ants as was the case with the ITA or let the 
sectoral fail?). 
 
• If the sectoral succeeds, all participants  implement on an MFN basis so all WTO 
members benefit.  
 
__________