. /.   WORLD TRADE  
ORGANIZATION  TN/MA/W/98 
14 December 2007 
 (07-5587) 
Negotiating Group on Market Access Original:   English 
  
 
MARKET ACCESS FOR NON-AGRICULTURAL PRODUCTS 
 
Formula and Flexibilities
 
 
Communication from Chile; Colombia; Costa Rica; Hong Kong, China; Israel;  
Mexico; Pakistan; Peru; Singapore and Thailand 
 
 The following communication, dated 13 December 2007, is being circulated at the request of 
the delegations of Chile; Colombia; Costa Rica; H ong Kong, China; Israel; Mexico; Pakistan; Peru; 
Singapore and Thailand.  
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1. The Chair's draft modalities text (JOB(07)/126)  reflects the mandate for the Non-Agricultural 
Market Access (NAMA) negotiations as articulated in the Doha Ministerial Declaration1, Annex B of 
the Decision Adopted by the General Council on  August 1, 20042 and the Hong Kong Ministerial 
Declaration3. The Chair´s text is also in line with the Singapore Declaration in 1996 where Members 
"reaffirm the primacy of the multilateral trading system….. ”  
 2. The Chair´s text presents the appropriate ar chitecture for finalizing the modalities in NAMA, 
as a fundamental requirement for an ambitious, bala nced and successful outcome across all areas of 
the DDA, in line with Paragraph 24 of the Hong K ong Ministerial Declaration and in the context of 
the single undertaking.    3. We note that under the Chair’s draft modalities, there would be about 40 members, of which about 30 are developing Members, required to appl y the Swiss formula modality.  In this context,  
 
(a) For developed Members
, a coefficient lower than the range of 8 to 9 proposed by the Chair 
would be appropriate to ensure a high level of ambition.  
 (b) For developing Members
, we support the formula coefficient range of 19 to 23 and the 
numbers and architecture of the flexibilities as cont ained in paragraph 7(a) of the Chair's draft 
modalities text.  Paragraph 7(b) is currently  under consideration by the co-sponsors.  
 (c) For the purpose of applying the formula to unbound tariff lines, we support a constant 
non-linear mark-up of 20 percentage points in the Chair’s draft modalities.   
 
4. We are therefore not prepared to consider an y additional flexibility beyond what is currently 
envisaged by the Chair in his text (JOB(07)/126).    
                                                     
 
1 WT/MIN(01)/DEC/1. 
2 WT/L/579. 
3 WT/MIN(05)/DEC. TN/MA/W/98 
Page 2  
 
  5. On the treatment of Small, Vulnerable Economies (SVEs)
, we note that, in the Chair’s draft 
modalities, these members would not be required to apply the Swiss formula modality.   We support the proposal in the Chair’s draft text; however, we w ould be prepared to negotiate the numbers within 
the architecture presented in the Chair’s draft m odalities as long as the hierarchy of contributions 
amongst the members not applying the formula modality is maintained. 
 
6. For developing members with low binding coverage
, we support the Chair’s proposal but note 
the latest proposal by the proponents.  We expr ess our willingness to work wi th members to resolve 
this issue expeditiously.    
7. For LDCs
, we support them to be exempted from pa rticipating in the formula for tariff 
reduction. Members should carry out their commi tments relating to LD Cs expeditiously, in 
accordance with the Decision on Measures in Favour of Least-Developed Countries  contained in 
Annex F of the Hong Kong Ministerial Declaration.  We also recognise the great importance that the 
LDCs attach to the simplification of rules of or igin for duty-free and quota-free market access and 
Members should address their interests and concerns.   
 8. On the erosion of non-reciprocal preferences
, we appreciate the Chair’s proposal for defining 
the scope of the problem.  However, we note with  concern the Chair’s proposal for treatment being 
incomplete as it would negatively affect the expor t interests of other developing members.  Any 
acceptable solution would require adequate adjustment  for members being negatively affected by the 
proposed solution. 
 
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