WORLD TRADE  
ORGANIZATION  TN/AG/W/7 
6 December 2008 
 (08-6014) 
Committee on Agriculture 
Special Session  
 
 
 
REVISED DRAFT MODALITIES FOR AGRICULTURE 
SPECIAL SAFEGUARD MECHANISM 
 
1. Based on constructive consultati ons to this point, we have made genuine progress on the SSM 
as relates to what happens in cases where it w ould mean going above the bound rate.  And the 
progress that we have made, while even reaching something that I could describe as tantamount to 
convergence on some elements, has still been uneven.  In other words, we have made real progress, 
but the unavoidable reality is that we are still shor t of a clean text, let alone actual agreement on key 
matters.  That being so I could hardly pretend th at there was something cooked and ready to go that 
could be inserted in the revised draft text. 
2. But I could not leave things just like that, because we have manifestly moved on.  The 
constructive engagement we have had did at least quarry out certain lines of direction and, one of 
these days, a solution is actually going to have to  be found that works for everyone.  We need 
something to work on in a spirit of getting to a conclusion.  In that spirit, and based on what I have heard, the best I can suggest is the following as an effort to represent the elements of convergence that 
are emerging.  It is not in final legal drafting form but could, hopefu lly, operate as a structure to get us 
to closure.  Adjustments could obviously be made to  the drafting below, but if this issue ever going to 
be resolved, my sense is that it something not a m illion miles from what is outlined below could be a 
way to create a springboard to closure. 
3. The following shall be the basis upon which the SSM may be triggered for “above the bound 
rate”: 
The volume-based SSM shall, subject to th e conditions in sub-paragraph x below, be 
applicable within a twelve month reporting period.  This twelve month period may be a marketing year, calendar year, fiscal year etc at the discretion of the Member concerned.  
But, once chosen, it is the binding basis for application.  
The SSM shall become applicable when, within t hat twelve month period, the trigger levels, 
calculated in respect of the average of the p receding three years’ imports, have been met.  If, 
however, an SSM was in force during that three year period, the monthly average of the 
imports net of that period of SSM applicati on shall be calculated and applied as the proxy 
imports for the months during which the SSM wa s in force, unless actual imports during its 
application were higher.  
Where the volume of imports during any peri od exceeds 120 per cent but does not exceed 140 
per cent, the maximum additional duty that may be imposed shall not exceed one-third of the 
current bound tariff or eight percentage  points, whichever is the higher. 
Where the volume of imports during any period exceeds 140 per cent, the maximum 
additional duty that may be imposed shall not exceed one-half of the current bound tariff or 
12 percentage points, whichever is higher. TN/AG/W/7 
Page 2  
 
  These remedies shall not normally be applicab le unless the domestic price is actually 
declining.  There may however be exceptional  circumstances where the authorities have good 
reason to believe that there would be at least an imminent foreseeable decline but may lack sufficiently reliable data to be in a position to verify that robustly at the time.  If so, action 
may be taken in such excep tional circumstances, subject to an expedited review by a standing 
panel of experts in the event that this is requested .  In any case, in the event that reliable data 
is subsequently available it shall be used and,  if it does not verify decline, the measure shall 
be rescinded.  
Once the SSM has been triggered, it may be app lied for a maximum of [4/8] months and shall 
not be re-applicable thereafter until an equiva lent period of months has elapsed. 
If the SSM is not triggered until within [2/4] months of the end of any given twelve month 
period it may, however, be applicable into the next  12 month period provided that this is for 
no more than [2/4] months and that the maximum period of application and conditionality for reapplication is also respected. 
The SSM shall not be applied to more than 2.5% of tariff lines in any 12 month period. 
4. I feel that the above indicates elements wh ere there has been more manifest convergence 
emerging and I am relatively more optimistic that th e above could be used as a robust enough working 
structure for getting to an agreement.  The area be low is less well advanced because the concept of 
any kind of pause is still more sensitive than other matte rs.  At this point at least, there is still not as 
much emergent consensus as on some other elements and it may prove to be the case that it is intractable.  There are some Members who would s ee no need to even go here.  On the other hand I 
cannot ignore that this area has, for other Members,  proved to be an important one which is perhaps 
all the more so because it is perceived to be the only possible way of allaying even to a small degree 
anxieties about seasonality effects.  I think it’s useful to at least lay out some options to help to foster 
convergence, if the will is there.  Some would like th ere to be no pause.  Others would like to ensure 
that there can be no consecutive application at all.  If there is to be a compromise the following are the 
best I can offer.  They need not be mutually exclusive: 
[In the event that the SSM for seasonal peris hable product tariff lines is  triggered and applied 
in two consecutive twelve month periods such t hat its total period of application is 12 months 
or more, it may not be applied in (or spill-over into) the subsequent twelve month period.]   
[There shall be a review after 2 years of the op eration of the SSM as it applies to seasonal 
perishable product lines, with particular em phasis on the impact on developing country 
Members exports. The purpose of such a review will be to determine whether there is any   
disproportionate effect on seasonally trade d products and, if so, to recommend ways and 
means to redress any such impact in a manner whic h is compatible with effective functioning 
of the SSM.] 
[In the event that an SSM should be applied fo r three consecutive twelve month periods, the 
standing group of experts shall, on request by an affected Member, evaluate whether or not 
the measure is effectively functioning as a measu re to deal with import surges of an inherently 
temporary nature that is not disrupting normal  trade or whether it is a response to an 
underlying more structural problem. They shall render their views and opinions including non-binding recommendations as appropriate.]   TN/AG/W/7 
 Page 3 
 
 
  5. I should also note the fact that there are other matters still requiring subsequent decision.  It 
has not been feasible to turn to such matters in any detail since Ju ly because the working priority has 
been to sort out the “above the bound rate” approach first. 
(a) Status of LDCs:  Irrespective of a “gen eral” solution, it has been the working 
hypothesis (no-one has objected) that LDCs will have a more flexible arrangement as 
was originally conceived in Rev.3, alt hough the triggers and remedies were never 
settled and LDCs had sought greater flexibilities than in the Rev.3 text. 
(b) Status of SVEs:  If there is a “general” solu tion found, is it to be assumed that this is 
applicable to all developing countries including SVEs? 
(c) Status of “Under the bound rate”:  Consultati ons subsequent to July indicated that a 
number of Members had areas in Rev 3 that they disagreed with as regards “under the 
bound rate” paragraphs.  But it was recognised  that this could not be progressed one 
way or another until “above the bound rate” wa s resolved.   It is not clear how far 
reaching any changes might prove to be here. 
 
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