WORLD TRADE  
ORGANIZATION  TN/MA/W/85 
5 April 2007 
 
 (07-1423) 
Negotiating Group on Market Access Original:   English 
  
 
MARKET ACCESS FOR NON-AGRICULTURAL PRODUCTS 
 
Tariff Elimination in the Sports Equipment Sector
 
 
Communication from Japan, Norway  and Singapore, Switzerland, the 
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, and the United States 
 
 
 The following communication, dated 5 April 2007, is being circulated at the request of the delegations of Japan, Norway and Singapore, Switzer land, the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu, and the United States. 
 
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I. INTRODUCTION 
1. The sports equipment sector is characterized by extensive and interdependent global supply 
networks in both developing and de veloped countries.  The supply chain in the sports equipment 
sector (from the R&D stage through to production and marketing) involves countries at different 
levels of economic development.  The added-value created is also  shared between developed and 
developing countries through a division of labour th at is global in scope, thus prompting a clear 
necessity for the elimination of tariffs in this sect or.  As proposed in the previous communication of 
21 September 2005 (ref. JOB(05)/201), tariff elimination in the sports equipment sector would help to 
create greater economic value and lower production costs, would present consumers with a wider, more affordable choice of products, and bring about  considerable benefits for developing countries 
and for WTO Members in general.  
 
2.     According to IDB , developing country Members of the WTO accounted for US$ 11,355 million 
worth of trade in sports equipment in 2003, representi ng 36.5 % of the total sports equipment trade of 
all WTO Members combined.  Given that their share of total world trade in the same year was 29.9%, 
it is evident that for developing countries the spor ts equipment sector enjoys a position of special 
trade interest.  This is further supported by the f act that developing countries account for 62.8% of all 
WTO Members’ sports equipment exports and 13.2  % of all their sports equipment imports.  A 
sectoral initiative for sports equipment is therefore a meaningful response to the Doha mandate that 
the negotiations should aim to ‘reduce or as appropria te eliminate tariffs … in  particular on products 
of export interest to developing countries’.  
3.     Since circulation of the paper JOB (05) /201, many developed and developing Members have 
been exploring the possibility of market access for this sector beyond what the tariff-reduction 
formula will achieve.  They have discussed a rang e of issues, including product coverage, tariff 
treatment, flexibilities for developing Members and the concept of ‘critical mass’.   In light of the Ministerial Declaration adopted in Hong Kong in December 2005 (WT/MIN(05)/W3/Rev.2), which 
instructed the NAMA negotiating group to review pr oposals with a view to identifying those that 
could garner sufficient participation, the following proposal is made for Members’ consideration. TN/MA/W/85 
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II. MODALITIES  
A. P
ARTICIPATION  
4. As agreed in paragraph 16 of  the Hong Kong Ministerial Declaration, participation in sectoral 
initiatives should be on a non-mandatory basis.  A leve l of participation representing a majority of the 
world trade in a particular sector should be requir ed in order to reap sufficient benefit from the 
initiative.  The agreement will take effect when a ‘c ritical mass’ of the trade of participating Members 
reaches a specified threshold.  To date, inter ested Members have proposed a ‘critical mass’ of 
Members representing no less than [90] percent of the world trade in sports equipment. 
 
B. PRODUCT COVERAGE  
5. A sports equipment sectoral initiative shoul d be as comprehensive as possible and easy for 
participating Members to implement.  Therefore, the subject of product coverage, including technical 
distinctions, has been discussed in informal meetings of this sectoral initiative, and it should be further 
discussed to find optimal outcome on the basis of varying interests and concerns of interested 
members.  A tentative suggestion for product coverage  on sports equipment is shown in Table 1.  The 
ultimate decision on product coverage rests fina lly with the participants in the agreement. 
 C. 
TARGET RATE AND IMPLEMENTATION  
6. This sectoral initiative will aim at the elimina tion of tariffs on the c overed products, and will 
be implemented in accordance with the implementati on of the Round itself.  Therefore, the standard 
target rate and its implementation shall be as follows.  
-  Target Rate : zero.   
-  Staging : the participant shall implement the tariff elimination over [five] years in equal 
instalments, or the final implementation peri od for general tariff reductions by formula, 
whichever is shorter.   
 D. 
SPECIAL AND DIFFERENTIAL TREATM ENT FOR DEVELOPING COUNTRY MEMBERS  
7. A variety of flexibility options exists, any one  of which could be employed to account for the 
special needs and interests of developing Members.   In particular, developing Members may employ 
one of the following options: 
 
(i) Longer Implementation Period :  Developing Members would be  permitted to implement their 
commitments for longer than the implementation sc hedule to be applied to this agreement for a 
specific number of tariff lines up to [Y 11 %] of the total trade value of a Member’s imports 
within the agreed product coverage; or 
 
(ii)  Zero for X : As a limited exception, a tariff rate of  [X] % or the post-formula tariff value, 
whichever is the lower, may be main tained for specific tariff lines up to [Y 2 %] of the total trade 
value of a Member’s imports with in the agreed product coverage. 
 8. Additional proposals for special and differentia l treatment are welcomed.  Specific conditions 
and limits for flexibility option will be further discuss ed while all elements of special and differential 
treatment will be ultimately decided by the par ticipants in the agreement.   Notwithstanding the 
above, reduction and staging commitm ents under this sectoral initiative should be no less ambitious 
than those brought about by the formula modality under the Doha Round.   
                                                     
 
1 The value of ‘Y 2’ should be less than that of ‘Y 1’.  TN/MA/W/85 
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  E. NEXT STEPS  
9. The sectoral modalities and  product coverage set out above sh all be finalized by [X X, 2007] 
or as otherwise agreed by Members.  10. This initiative should be incorporated in th e final outcome of the DDA, and the obligation 
under this initiative shall be implemented as a part of it.  TN/MA/W/85 
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  Table 1:   Suggested Product Coverage of Sectoral Initiative on Sports Equipment  
 
HS Code –  
6 Digits 
 Description 
 
ex 6307.20 Life vests 
ex 6506.10 Safety headgear 
8903.10 Other inflatable rowing boats and canoes 
8903.91 Sailboats, assembled or unassemble d, with or without auxiliary motor 
8903.92 Motor boats, assembled or unassemb led, other than outboard motorboats 
8903.99 Other articles of heading No. 8903 
9504.20 Articles and accessories for billiards 
9504.90 Other 
950611 Skis 
 950612 Ski-fastenings (ski-bindings) 
950619 Other 
 950621 Sailboards 
 950629 Other 
 950631 Clubs, complete 
 950632 Balls 
 950639 Other 
 950640 Articles and equipment for table-tennis 
 950651 Lawn-tennis rackets, whether or not strung 
 950659 Other 
 950661 Lawn-tennis balls 
 950670 Ice skates and roller skates, includi ng skating boots with skates attached 
 950691 Articles and equipment for general physical exercise, gymnastics, or athletics 
 950699 Other 
 950710 Fishing rods 
 950720 Fish-hooks, whether or not snelled 
 950730 Fishing reels 
 950790 Other 
950800 Roundabouts, swings, shooting galleri es and other fairground amusements; 
travelling circuses, travelling menageries, and travelling theatres 
 
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