. /.   WORLD TRADE  
ORGANIZATION  WT/COMTD/62/Add.4 
14 October 2008 
 (08-4865) 
Committee on Trade and Development Original:   English 
  
 
AMENDMENT TO THE FIRST AGREEMEN T ON TRADE NEGOTIATIONS AMONG 
DEVELOPING MEMBER COUNTRIES OF THE ECONOMIC AND SOCIAL  
COMMISSION FOR ASIA AND THE PACIFIC (BANGKOK AGREEMENT) 
 
ASIA-PACIFIC TRADE AGREEMENT
 
 
Communication from China  
 
Addendum  
 
 
 The following communication, dated 5 September 2008, is being circulated at the request of the delegation of China.  
_______________ 
  
REPLIES TO THE FOLLOW-UP QUESTION S POSED BY THE UNITED STATES  
ON THE ASIA-PACIFIC TRADE AGREEMENT (APTA) 
 
 
We note that paragraph 3(a) of the Enabling Clause states that "Any differential and 
more favourable treatment provided under this cl ause:  shall be designed to facilitate and 
promote the trade of developing countries".  However, as the percentage of trade covered by import level and by tariff line level is very low fo r most Parties to the agreement, it is not clear 
how the agreement satisfies this requirement.  
1. Please provide further clarification on ho w the agreement facilitates and promotes the 
trade of developing countries, when three of th e Parties cover less than 15 per cent of total 
import value and no Party covers more th an 38.1 per cent of total imports.   
Although the trade coverage figures evaluated in terms of import data in 2004 are at a modest 
level, there are a few other general indicators show ing dynamic expansion of APTA trade flows.  The 
share of trade among APTA members as a percen tage of their total trade has increased from 
9.83 per cent in 2000 to 14.46 per cent in 2006, representing an increase of almost 50 per cent (see 
Asia-Pacific Trade and Investment Agreements Database, http://www.unescap.org/tid/aptiad/
).  Trade 
between China and India reached grew at an annual average of 35 per cent over the past decade; and 
the numbers are 21 per cent for trade between the Republic of Korea and China and 17 per cent for 
trade between the Republic of Korea and India during the period.  
In addition, according to a secretariat pilot study (available at www.unescap.org ), on the 
utilization rate of APTA preferences given by China and the Republic of Korea, respectively, for the 
period of September 2006-June 2007, Bangladesh and Sri Lanka showed much higher utilization rates 
than other APTA member states in both import markets.  This implies that traders in those developing 
countries are getting more effective benefits from AP TA.  For Bangladesh 87.7 per cent of imports to WT/COMTD/62/Add.4 
Page 2  
 
  the Republic of Korea and 58.2 per cent of imports to China enter under APTA preferences, while, for 
Sri Lanka 44.7 per cent of imports to the Republic of  Korea enter under APTA preferences.  (This is 
in contrast to the average APTA utilization rat es of 13.4 per cent for the Republic of Korea and 
24.8 per cent for China.) 
 
Furthermore, since APTA launched the Fourth Round of tariff negotiations at its Second 
Session of Ministerial Council in 2007, accrued bene fits from APTA on trade promotion is expected 
to be more substantial by the end of 2009, when  the Fourth Round is expected to conclude.   
 
2. Please clarify that this coverage reflects concessions , but not necessarily elimination of 
duties . 
 We confirm that the coverage reflects current  concessions, which are exchanged on margin of 
preference basis.  Through the Fourth Round of tari ff negotiations, tariff levels  will be reduced further 
in order to effectively promote intra-APTA trade.    
__________