WORLD TRADE  
ORGANIZATION  TN/MA/W/103 
8 February 2008 
 (08-0609) 
Negotiating Group on Market Access  
  
 
 
  
 
     
 
  
DRAFT MODALITIES FOR NON-AGRICULTURAL MARKET ACCESS 
 
8 February 2008  
 
   
  
   TN/MA/W/103
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Draft Modalities Chairman’s Comments 
Preamble  
1. In paragraph 16 of the Doha Ministerial Declaration, we agreed "to 
negotiations which shall aim, by modalities to be agreed, to reduce or 
as appropriate eliminate tariffs, including the reduction or elimination 
of tariff peaks, high tariffs, and tariff escalation, as well as non-tariff 
barriers, in particular on products of export interest to developing 
countries.  Product coverage shall be comprehensive and without a 
priori  exclusions.  The negotiations shall take fully into account the 
special needs and interests of developing and least-developed 
Members, including through less than full reciprocity in reduction 
commitments, in accord ance with the relevant provisions of 
Article XXVIII bis of GATT 1994 and the provisions cited in 
paragraph 50 of the Doha Ministerial Declaration. To this end, the 
modalities to be agreed will include appropriate studies and 
capacity-building measures to assi st least-developed countries to 
participate effectively in the negotiations."     
 
2. Further to the Doha Development Agenda (DDA) mandate, and 
building on the results reached in Annex B of the General Council 
Decision of 1 August 2004 (the "NAMA Framework") and paragraphs 
13 to 24 of the Hong Kong Ministerial Declaration, we hereby 
establish the  following modalities for the non-agricultural market 
access (NAMA) negotiations which shall  be applicable to all non-
agricultural tariff  lines as defined in Annex 1.    Product coverage remains unresolved.  As a possible solution to a long impasse 
on this issue, I have proposed that Annex 1 should be the agreed list of product 
coverage and that longstanding deviations from this list should be noted, without 
affecting the rights of Members. 
 
3. The results of the application of these modalities shall be reflected in 
schedules of concessions which shall be submitted and finalized in the Harmonized System 2002 nomenclatu re and prepared in accordance 
with document JOB(06)/99/Rev.1.  Initial, comprehensive, draft 
schedules shall be submitted no later than three months after the 
establishment of modalities.   
4. These modalities do not create a new category or sub-category of 
WTO Members, nor do they create a precedent for future  negotiations.  
In applying these modalities, existing bindings shall not be raised 
except as provided by Article XXVIII of GATT 1994.   
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Draft Modalities Chairman’s Comments 
Formula   
 
5. The following formula shall apply on a line-by-line basis: 
00
1 b)or (a  b)or (a 
ttt+×=  
where , 
t1= Final bound rate of duty 
t0= Base rate of duty  
a = [8-9] = Coefficient for developed Members 
b = [19-23]  = Coefficient for developing Members  
  
There is no consensus on the coefficients  in the formula.  While most Members 
who will apply the formula have accepted th e ranges proposed in the July text  
(8-9 for developed country Members and 19-23 for developing country 
Members) as a basis for negotiation, there has been no convergence on this issue.  
Members remain divided into three groups: 
• a group of Members seeking higher tariff reductions for developing countries 
and smaller differential between developed and developing country 
coefficients (a coefficient of 10 fo r developed country Members and 15 for 
developing country Members, a differential of 5 points), who have indicated 
a willingness to accept the ranges proposed in the July text as a basis for 
negotiation, provided other Members also agree to negotiate on these terms; 
 • a group of Members who proposed ranges very close to those in the July text 
(originally proposing “lower than 10” for developed countries and “the high 
teens to low twenties” for developing countries, but more recently pressing 
for “a little less” than the 8-9 for developed country Members proposed in 
the July text), but who have accepted the ranges as a basis of negotiation; 
and 
 
 • a group of Members seeking smaller tariff reductions for developing 
countries and a greater differential in coefficients between developed and 
developing countries (a coefficient of 30 to 35 for developing countries and 
a differential of at least 25 point s), who have not accepted the ranges 
proposed in the July text as a basis for further negotiations.  For some of 
these Members, the extent to which a coefficient within, or “approaching”, 
the range proposed in the July text could be considered is conditional upon 
an increase in flexibilities from formula reductions. 
  
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Elements regarding the formula   
6.  
(a) Product coverage shall be comprehensive without a priori exclusions.   
(b) Tariff reductions or elimination shall commence from the bound rates 
after full implementation of current concessions; however, for 
unbound tariff lines, a constant, non-linear mark-up of [20]  or [30] 
shall be applied to establish base rates for commencing tariff 
reductions.  
 
(c) The base year for MFN applied tariff rates shall be 2001 (applicable 
rates on 14 November). 
(d) All non- ad valorem  duties shall be converted to ad valorem  
equivalents on the basis of  the methodology outlin ed in document 
TN/MA/20 and bound in ad valorem  terms. 
(e) The reference period for import data shall be 1999-2001. 
(f) The tariff reductions for developed Members shall be implemented in 
[5] equal rate reductions and for developing Members in [9] equal rate 
reductions.  The first reduction shall be implemented on 1 January of 
the year following the entry into force of the DDA results and each 
successive reduction shall be made effective on 1 January of each of 
the following years.  
 Members remain divided on the mark-up, but flexibility has been signalled.  
Based on my consultations with Members, it is my sense that the proposal 
submitted by the Philippines might provide the basis for a compromise on this 
issue: that is, a constant, non-linear mark-up of 20 percentage points to the MFN 
applied rate in the base year where the u nbound rate is greater than (b x 0.5) and 
30 percentage points where the unbound rate is equal to or less than (b x 0.5). 
   
 
    Some Members have proposed a longer implementation period – that is, 5 and 10 
years (6 and 11 equal rate reductions) for developed and developing country 
Members respectively.  However, most se em comfortable leaving this decision 
until the coefficients in the tariff reduction formula are agreed. 
   
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Draft Modalities Chairman’s Comments 
Flexibilities for developing M embers subject to the formula   
7.  
(a) Developing Members subject to the formula shall be given the  following flexibility:  
 
(i)    applying less than formula cuts for up to [   ] percent of  non-
agricultural national tariff lines provided that the cuts are no 
less than half the formula cuts and that these tariff lines do 
not exceed [   ] percent of the total value of a Member's non-
agricultural imports;  
  o r  
 In view of the wide support of Members for the flexibilities proposed in the July 
2004 Framework, the July text proposed flexibilities of 10 percent for 7(a) (i) and 
5 percent for 7(a) (ii).  However, as no ted above, some Members seek increased 
flexibilities as a precondition to cons idering a coefficient within, or 
“approaching”, the range prop osed in the July text.  In this regard, there are 
several proposals, none of which enjoys a consensus: 
• The proposal by a group of Members that: the percentage of tariff lines 
should be expanded in line with the needs of developing countries; the 
related trade volume limitations should be removed or substantially relaxed; 
and developing countries should be provided the flexibility to use some 
combination of paragraphs 7(a) (i) and 7(a) (ii) (not specified in the 
proposal). 
(ii)    keeping, as an  exception, tariff lines unbound, or not applying 
formula cuts for up to [   ] percent of non-agricultural national 
tariff lines provided they do not exceed [   ] percent of the 
total value of a Member's non-agricultural imports1.    • The proposal by SACU that, in view of the impact of tariff reductions on 
SVE and LDC Members of this customs union, South Africa be granted a 
higher coefficient and increased flexibilities (not specified in the SACU 
proposal or in discussions of the Negotiating Group), in addition to an 
implementation period of not less than 10 years. 
• The proposal by Mercosur that, in view of their common external tariffs and 
consequent loss of the full benefit of formula flexibilities for individual 
countries, members of customs unions be granted the flexibility to apply half 
the formula cut to 16% of tariff lines, without trade volume restrictions, 
provided they submit a common list of flexibilities.   
 
 
  • The proposal by the Philippines to: increase the maximum value of 
developing country Members’ non-agricultural imports under paragraph 7(a) 
(i) to 30% and under paragraph (a) (ii)  to 20%;  increase the flexibilities of 
paragraph 7(a) (i) and (ii) by 50% wher e the resulting average bound tariff is 
equal to or less than (b x 0.66);  grant developing country Members subject 
to the formula that do not use the flexibility in paragraph 7 either a 
coefficient of (b + 3) for a maximum of 30% of tariff lines or (b + 6) for a  
maximum of 15% of tariff lines. 
                                                      
1 It is understood that the options in sub-paragraph 7(a) (ii) (keeping tariff lines unbound or not applying formula cuts) may b e combined but cannot together 
exceed the [  ] percent of tariff lines and th e [  ] percent of non-agricultural imports.    
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 This flexibility shall not be used to exclude entire HS Chapters.  
   
 
 
  (b) [Developing Members subject to the formula who do not use the 
flexibility in paragraph 7 (a) above shall apply a coefficient of (b+ 
[3-5]) in the formula.] 
 
 
  Members are divided on whether any additional flexibilities agreed should be 
available to all developing country Members equally, or whether exceptions could be extended to individual Members, based on their individual 
circumstances.   
Many Members have expressed a willingness to consider additional flexibilities 
for South Africa.  While these Members tend to reject, for “systemic” reasons, 
the argument that flexibilities should be granted to customs unions per se , they 
are prepared to give consideration to th e special circumstances  of South Africa, 
including their relatively large contribution in the Uruguay Round.  
The Bolivarian Republic of Venezuela has also proposed that, in view of their 
exceptional economic circumstances, they sh ould be granted treatment similar to 
Small, Vulnerable Economies, including  a target average tariff and minimum 
line-by-line tariff reduction (not specifi ed in the Venezuelan proposal or in 
discussions of the Negotiating Group).  This proposal does not enjoy wider 
support than those listed above. 
 Another issue on which there is no convergence is the proposal from the 
European Communities and the United States to give more specific effect to the 
“anti-concentration” clause agreed in th e July 2004 Framework.  Specifically, 
these Members have proposed that: these flexibilities should not be used to 
exclude from full formula cut entire HS Ch apters, or to exclude from any four 
digit heading in a Member’s tariff schedule  (1) more that [half] of the six-digit 
sub-headings in that heading or (2) any combination of six-digit sub-headings or 
national tariff lines in that heading representing more that [50] percent of the 
total value of the Member’s imports of goods classifiable within that heading.   
 
There is no consensus on the proposal in 7(b), but my judgement is that it enjoys 
sufficiently wide support to include, in brackets, in the draft modalities.  The proposal also serves to open a critically important discussion in the NAMA 
negotiation.  There is an obvious relationship between the coefficient for 
developing country Members and the flexibilities in paragraph 7: many Members 
can accept a higher coefficient for elig ible Members that do not use the 
flexibilities; other Members have indicated  that they could accept, or approach, 
the range of coefficients proposed in the July text if the flexibilities were 
increased; and some Members have indicated  that they could consider increased  
  TN/MA/W/103 
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Draft Modalities Chairman’s Comments 
 
     
 flexibilities if the agreed coefficient was at the lower end of the proposed range.  
This strongly suggests a “sliding scal e” approach to achieve consensus, 
especially as it might provide a basis upon which to agree different outcomes for 
different developing countries – a persistent demand of some developing 
countries.  I urge Members to engage in the discussion of the formula and 
flexibilities and to explore the possible relationship between them, in concrete 
terms – not with a view to resolving them before the horizontal process, but to 
rehearse and give structure to the negotia tion in that process and to increase the 
likelihood of a successful outcome by clarifying the options before Ministers 
when they are required to arbitrate the outcome.   
 
Flexibilities for developing Memb ers with low binding coverage2  
8.  
(a)  As an exception, developing Members with a binding coverage of 
non-agricultural tariff lines of less than 35 percent will be exempt from making tariff reductions through the formula.  Instead, they shall 
bind [70-90]  percent of non-agricultural tariff lines at an average level 
that does not exceed  28.5 percent. 
(b) These tariff lines shall be bound on 1 January of the year following the 
entry into force of the DDA results at initial bound rates.  
(c) The initial bound rates shall be established as follows: for bound tariff 
lines the existing bindings shall be used, and for unbound tariff lines 
the Member subject to this modality will determine the level of the 
initial binding of those tariff lines.   
(d) The overall binding target average shall be made effective at the end 
of the implementation period as follows:  the tariff reductions shall be 
implemented in [9] equal rate reductions. The first reduction shall be 
implemented on 1 January of the second year following the entry into 
force of the DDA results and each successive reduction shall be made 
effective on 1 January of each of the following years.    
  
 
      
                                                      
2 Developing Members concerned are: Cameroon; Congo, Côte d'Ivoire; Cuba; Ghana; Kenya; Macao, China; Mauritius; Nigeria; Sri Lan ka; Suriname; and 
Zimbabwe.   
   TN/MA/W/103
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(e) All duties shall be bound on an ad valorem basis.  Existing bindings on 
a non ad valorem basis shall be converted to ad valorem equivalents on the basis of the methodology outlined in document TN/MA/20. 
  
Sectoral negotiations  
  
9. The sectoral tariff reduction component is another key element to 
achieving the objectives of Paragraph 16 of the DDA.  Participation in 
sectoral initiatives is on a non-mandatory basis.  Such initiatives shall 
aim to reduce, harmonize or as appr opriate eliminate tariffs, including 
the reduction or elimination of tariff peaks, high tariffs and tariff 
escalation, over and above that which would be achieved by the 
formula modality, in particular on products of export interest to 
developing Members.  
 
10. Progress has been made in a variety of sectoral initiatives, where 
discussions among participants have focused on: defining the critical 
mass which may include the share of world trade and level of 
participation of competitive producer s; the scope of product coverage; 
the implementation period for tariff reduction or elimination; and 
special and differential treatment fo r developing-country participants. 
 
11. At the Hong Kong Ministerial Conference, Ministers instructed 
Members to identify sectoral initiatives which could garner sufficient participation.  Sectoral initiatives currently proposed are: automotive 
and related parts; bicycles a nd related parts; chemicals; 
electronics/electrical products; fish and fish products; forest products; 
gems and jewellery; hand tools; open access to enhanced health care; 
raw materials; sports equipment; toys; and textiles, clothing and 
footwear. 
 
 
   
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Draft Modalities Chairman’s Comments 
12. Members participating in sectoral initiatives are instructed to intensify 
their work in accordance with the following timetable and with a view to incorporating any outcomes of such negotiations on an 
unconditional basis in their final comprehensive draft schedules: 
(a) by the establishment of modalities (EOM), the proponents of 
each sectoral initiative shall pro pose the specific modalities to 
be applied to the products covered in each initiative; 
(b) by the EOM plus 2  months, Members intending to participate 
in a sectoral initiative shall so indicate to the proponents of 
the relevant sectoral initiative as well as to the Secretariat;  
and 
(c)        by the EOM plus 3 months, the participants in the sectoral 
initiatives shall incorporate any outcomes of such 
negotiations on a conditional basis in their comprehensive 
draft schedules. 
  
Small, Vulnerable Economies   
 
13. With the exception of developed Members, those Members having a 
share of less than 0.1 percent of world NAMA trade for the reference 
period of 1999 to 2001 or best available data as contained in document 
TN/MA/S/18 may apply the following modality of tariff reduction 
instead of the formula modality which is contained in paragraphs 5, 6 
and 7 above.  
 
 
     
There is agreement on the basic architect ure and flexibility has been expressed by 
Members on the target tariff averages propos ed in the July text.  Issues to resolve 
include: 
• Capping:  in an effort to find consensus, SVE proponents have proposed 
higher target averages in exchange for withdrawing their proposal for caps in 
the average percentage reduction from  bound rates – specifically, a 40% cap 
(a) (i) and 30% cap in (a) (ii).  There is not wide support for the idea of caps, 
but some Members have expressed a willingness to consider additional 
“bands” in (a) to address the concerns of SVE Members most 
disproportionately affected by the current architecture. 
 
  
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(a)   Members with a bound tariff av erage of non-agricultural tariff lines:3  
 
(i) at or above 50 percent shall bind  all of their non-agricultural 
tariff lines at an average level that does not exceed an overall 
average of [22 -32]  percent; 
(ii) at or above 30 percent but below 50 percent shall bind all 
their non-agricultural tariff lines at an average level that does 
not exceed an overall average of [18-28] percent; and 
(iii) below 30 percent shall bind all their non-agricultural tariff 
lines at an average level th at does not exceed an overall 
average [14-20]  percent and shall apply a minimum line-by-
line reduction of [5-10]  percent on [90-95]  percent of all non-
agricultural tariff lines.    
  
 
• Minimum line-by-line cut:  SVE proponents proposed a minimum line-by-
line tariff cut, but I have detected little real interest in this additional 
modality, except in respect of (a) (iii) since this may be the only contribution 
of some Members in that band. 
• Bolivia:  an informal proposal was submitted by Bolivia arguing that, in view 
of their exceptional economic circumst ances, they should be granted the 
flexibility to substantially preserve (not specified) their current bound tariff 
rates.  Members have had little opportunity to consider this proposal and I am 
unable to assess their support.  
     
Fiji shall be deemed to fall under (a) (i). 
  
(b)        All tariff lines shall be bound on 1 January of the year following the 
entry into force of the DDA results at initial bound rates.  Fiji shall 
have the flexibility to maintain 10 percent of non-agricultural tariff 
lines unbound.  
 
(c) The initial bound rates shall be established as follows: for bound tariff 
lines the existing bindings shall be used, and for unbound tariff lines 
the Member subject to this modality will determine the level of the 
initial binding of those tariff lines.   
  
                                                      
3 See document TN/MA/S/4 and Corr.1 for the bound tariff averages of Members.    
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Draft Modalities Chairman’s Comments 
(d) The overall binding target average shall be made effective at the end 
of the implementation period as follows:  the tariff reductions shall be implemented in [9] equal rate reductions. The first reduction shall be 
implemented on 1 January of the year  following the entry into force of 
the DDA results and each successive reduction shall be made effective 
on 1 January of each of the followi ng years, except for lines covered 
under 13(e) where the first reduction shall be implemented on 
1 January of the year following completion of the grace period.  
 (e) For those Recently Acceded Members applying this modality, a grace 
period of 3 years shall be applie d on those lines on which accession 
commitments are still being implem ented.  This grace period shall 
begin as of the date of full implementation of the accession 
commitment on that tariff line.  
 
(f) All duties shall be bound on an ad valorem  basis.  Existing bindings 
on a non ad valorem basis shall be converted to ad valorem  
equivalents on the basis of  the methodology outlin ed in document 
TN/MA/20.  
Least Developed Countries (LDCs)   
 
14. LDCs shall be exempt from tariff re ductions. However, as part of their 
contribution to the DDA, LDCs are expected to substantially increase their level of tariff binding commitments.   Individual LDCs shall 
determine the extent and level of tariff binding commitments in 
accordance with their individual deve lopment objectives.   All new 
tariff binding commitments shall be on an ad valorem  basis. For 
existing bindings which are not on an  ad valorem  basis, LDCs are 
encouraged to co nvert them to ad valorem  equivalents on the basis of  
the methodology outlined in document TN/MA/20 and bind them in 
ad valorem  terms. 
   
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Market Access for LDCs  
  
15. We reaffirm the need to help LD Cs secure beneficial and meaningful 
integration into the multilateral trading system.  In this regard, we 
recall the Decision on Measures in Favour of Least-Developed 
Countries  contained in decision 36 of Annex F of the Hong Kong 
Ministerial Declaration (the  "Decision"), and recommit: 
 
(a) to fully implement the Decision as agreed; 
(b) to ensure that preferential rule s of origin applicable to imports 
from LDCs will be transparent, simple and contribute to 
facilitating market access in re spect of non-agricultural 
products.  In this connection, we urge Members to use the 
model provided in document TN/MA/W/74, as appropriate, 
in the design of the rules of origin for their autonomous 
preference programs;  
(c)  to progressively achieve compliance with the Decision 
referred to above, taking into account the impact on other developing countries at similar levels of development; and 
(d) to permit developing country Members to phase in their 
commitments and enjoy appropriate flexibility in coverage. 
 
16. Accordingly, developed-country Members shall and developing-
country Members declarin g themselves in a position to do so should: 
 
(a) inform WTO Members of the products that will be covered 
under the commitment to provide duty-free and quota-free 
market access for at least 97 per cent of products originating 
from LDCs, defined at the tariff line level by 2008, or no later 
than the start of the implementation period; and  
 
(b) notify the steps and possible time frames within which they 
will progressively achieve full compliance with the Decision.   
 
 
     
 
     
 
     
 
      
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Draft Modalities Chairman’s Comments 
 
17.  As part of the review foreseen in the Decision, the Committee on 
Trade and Development shall monitor progress made in its 
implementation, including in respect of preferential rules of origin. 
  
 The monitoring procedure should be defined and agreed by the time of final 
 schedules.  
Recently Acceded Members (RAMs)4 
 
18. The RAMs shall apply the modality provided for in either paragraphs 
5, 6 and 7 or paragraph 13, as applicable.    
19. In addition, the RAMs applying the formula shall be given:  
(a)  a grace period of [2-3] year s which shall apply on a line-by-
line basis and which shall begin as of the date of full 
implementation of the accession commitment on that tariff 
line;  and 
(b) an extended implementation period of [2-5] equal rate 
reductions to that provided in paragraph 6(f) to implement their Doha commitments.  The first reduction shall be 
implemented on 1 January of the year following the entry into 
force of the DDA results with the exception of those tariff 
lines covered by (a)  above where the first reduction shall be 
implemented on 1 January of the year following completion 
of the grace period.  In both these cases, each successive 
reduction shall be made effec tive on 1 January of each of the 
following years.  
 
20. Albania, Armenia, Former Yugoslav Republic of Macedonia, Kyrgyz 
Republic, Moldova, Saudi Arabia, Tonga and Viet Nam shall not be 
required to undertake tariff re ductions beyond their accession 
commitments.   
   Other flexibilities requested by RAMs applying the formula remain 
unresolved, including granting access to  some or all of the following: a 
coefficient in the formula 1.5 times higher than the developing country 
coefficient; expanded paragraph 7(a) (i) and (ii) flexibilities; exemption from 
tariff reductions for low tariffs (unspecified).  My consultations suggest that 
consensus could not likely be reached on these additional flexibilities.   
However, some proponents have expressed the view that a final decision on 
this issue should not be taken until the coefficients in the formula and 
paragraph 7 flexibilities are agreed, since this would determine the extent to 
which there is a need for further flexibilities for these Members.  
                                                      
4 Albania, Armenia, China, Chinese Taipei, Croatia, Ecuador, Former Yugoslav Republic of Macedonia, Georgia, Jordan; Kyrgyz Repu blic, Moldova, 
Mongolia, Oman, Panama,  Saudi Arabia, Tonga and Viet Nam.   LDC RAMs as well as othe r RAMs who have since their date of access ion become Members of the EC 
are not included in this list.    
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Supplementary Modalities   
 
21. Members may use the request & offer approach as a supplementary 
modality.  Members engaging in such negotiations shall incorporate 
any outcomes in their final comprehensive draft schedules.   
Elimination of low duties  
 
22.         Members are asked to consider the elimination of low duties. 
  
Non-tariff barriers (NTBs)  
  
23.       The reduction or elimination of NTBs is an integral and equally 
important part of the objectives of paragraph 16 of the DDA.  More 
specifically, initiatives in this area shall aim to reduce or eliminate, as 
appropriate, NTBs, in particular on products of export interest to 
developing Members and to enhance market access opportunities 
achieved through these modalities.  
24.       Members agree that work should continue on the following proposals, 
with a view to finalizing them as early as possible before the 
submission of final comprehensive draft schedules: [      ].  
Negotiations on bilateral requests should also proceed in tandem.  
This will allow for sufficient time to multilateralize the outcomes 
through inter alia  incorporating them where appropriate into Part III 
of the schedules. 
25.       These negotiations shall take fu lly into account the pr inciple of special 
and differential treatment for developing and least-developed 
Members. 
 Progress has been made in the identifi cation, examination and categorization 
of NTBs. Discussions have focused on defining the nature of the barriers, the 
scope of products affected and potential solutions. Negotiating proposals, 
including some legal texts (see Annex 5) and bilateral requests, have been 
submitted on a number of measures. 
It is agreed that a decision will be taken, at the time modalities are 
established, on which of these horizontal and vertical proposals will proceed 
to final, text-based negotiation.  This decision will establish a presumption of 
an outcome in respect of each proposal, without prejudging the exact nature 
of that outcome.  This decision does not prevent any Member from 
submitting new proposals for consideration by the Negotiating Group at any 
time before final comprehensive draft schedules are submitted. 
By way of guidance to Members in assessing the support for specific 
proposals, I would offer the following comments: 
• The proposed Ministerial Decision on Procedures for the Facilitation of 
Solutions to Non-Tariff Barriers  enjoys very wide support.  However, 
important issues remain unresolved, the most significant being the scope 
of the procedure. 
• A number of proposals to recognize international standards and 
conformity assessment procedures (Understanding on the Interpretation 
of the Agreement on Technical Barrier s to Trade as Applied to Trade in  
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Draft Modalities Chairman’s Comments 
Electronics ; Decision on Non Tariff Barrier s Affecting Forestry Products  
used in Building Construction ; Harmonization of Fireworks Standards 
and Conformity Assessment Procedures ; Harmonization of Lighter 
Standards and Conformity Assessment Procedures ; and the 
Understanding on the Interpretation of the Agreement on Technical 
Barriers to Trade with respect to Labelling of Textiles, Clothing,  
Footwear and Travel Goods)  enjoy some support.  Some Members have 
expressed concern that such proposal s might limit their existing rights 
under the Agreement on Technical Barri ers to Trade, wh ich may need to 
be further clarified in consultation with TBT experts.  This having been 
said, in my view nothing prevents  Members from agreeing on further 
clarifying the implementation of the TBT Agreement, particularly in the 
area of recognizing relevant international standards.  
• The proposed Ministerial Decision on Trade in Remanufactured Goods  
enjoys some support.  However, many Members have expressed concern 
that the scope of remanufactured goods is not well defined or understood 
and that this lack of cl arity prevents them from agreeing a work program 
in the Council for Trade in Goods.  In my view, an agreement on the 
definition of such goods must be resolved – either through negotiation of 
the present proposal or by building the issue into the proposed work 
program - in order for this proposal to attract a consensus. 
• The proposed WTO Agreement on Export Taxes  enjoys limited support.  
Often framed as a sterile debate ov er whether a tax is a tariff and, 
therefore, not a non-tariff barrier s ubject to this negotiation, the real 
obstacle is many Members’ view that the issue of export taxes was not in 
the balance of concessions agreed in Doha and that there are insufficient 
incentives to alter that balance. 
• The proposal for Increased Tran sparency on Export Restrictions  also 
enjoys limited support.  While the proposal has been amended several 
times to address the concerns of Members that it would impose a heavy 
administrative burden, Members have displayed little interest in such 
transparency requirements. 
   
   TN/MA/W/103
 Page 17Draft Modalities Chairman’s Comments 
• Members have been unwilling to engage in a discussion of the proposed 
Agreement on Eliminating Non-Tari ff Barriers relate d to Non Trade 
Issues   in the Negotiating Group, and my consultations suggest that this 
is a signal of very limited support.  
 
Capacity-Building Measures  
  
26. Members are committed to e nhancing trade capacity-building 
measures to assist Members in the ear ly stages of development, and in 
particular Least Developed Coun try Members, to address their 
inherent supply side capacity constraints and the challenges that may 
arise from increased competition as a result of MFN tariff reductions.  
These measures, including the Enha nced Integrated Framework for 
Least Developed Countries and othe r Aid-for-Trade initiatives, shall 
be designed to enable such Members to take advantage of increased 
market access opportunitie s, including through diversification of 
export products and markets,  and to meet technical 
standards/requirements and address other non-tariff measures. 
  
Non-reciprocal preferences  
  
27. MFN liberalization resulting from the DDA will erode non-reciprocal 
preferences in respect of a limited number of tariff lines which are of 
vital export importance for developing Members beneficiaries of such 
preferences.  As a result, and in or der to provide these Members with 
additional time for adjustment, the reduction of MFN tariffs on those 
tariff lines shall be implemented in [7] equal rate reductions by the 
preference-granting developed Members concerned. The first 
reduction shall be implemented on 1 January of the [second] year 
following the entry into force of the DDA results and each successive 
reduction shall be made effectiv e on 1 January of each of the 
following years.  The relevant tariff lines shall be those contained in 
Annex 2 for the European Communities and in Annex 3 for the United 
States.    
  TN/MA/W/103 
Page 18 
Draft Modalities Chairman’s Comments 
28. To further assist preference recei ving countries to meet the challenges 
that will arise from increased competition as a result of MFN tariff reductions, preference granting Memb ers are urged to increase their 
assistance to these Members thr ough  mechanisms such as the 
Enhanced Integrated Framework for Least Developed Countries and 
other Aid-for-Trade initiatives.  They are also urged to simplify the 
rules of origin in their prefer ence programs so that preference 
receiving Members can make more e ffective use of such preferences. 
 29. As a result of action taken under paragraph 27, some developing 
Members who do not benefit from these preferences and who export 
under some of those same tariff lines to those preference granting 
markets, may be disproportionate ly affected.  For these Members
5, the 
reduction agreed in paragraph 5 on the relevant tariff lines shall be 
implemented in [5] equal rate reduc tions in the relevant preference 
granting markets.  The first reduction shall be implemented on 
1 January of the year following the entry into force of the DDA results 
and each successive reduction shall be made effective on 1 January of 
each of the following year s.  The relevant tariff lines on which such 
staging in the relevant prefer ence granting markets shall be 
implemented are listed in Annex 4.  
  
                                                      
5[Pakistan and Sri Lanka].  
   TN/MA/W/103
 Page 19Draft Modalities Chairman’s Comments 
Non-agricultural environmental goods  
 
30. The Committee on Trade and En vironment in Special Session 
(CTESS) is working with a view to reaching an understanding on 
environmental goods.  Members are instructed to take guidance from 
this work and initiate negotiations, without prejudging their outcome, 
on the reduction or, as appropriate, elimination of tariffs and NTBs on 
non-agricultural environmental goods.  
  
 TN/MA/W/103 
Page 20  
 
  Annex 1
 
 
Product Coverage of Non-Agricultural  Products at the tariff line level  
in the Harmonized System 2002 Nomenclature 
 
The modalities for non-agricultural products  shall cover the following products:6 
(a)  Fish and fish products defined as: 
 Code/ 
Heading  Product Description7 
 Chapter 3 Fish and crustaceans, mollu scs and other aquatic invertebrates 
 05.08 Coral and similar materials, unworked or simply prepared but not otherwise worked; 
shells of molluscs, crustaceans or echinoder ms and cuttle-bone, un worked or simply 
prepared but not cut to shape, powder and waste thereof 
 05.09 Natural sponges of animal origin  0511.91 -- Products of fish or crustaceans, mollu scs or other aquatic invertebrates; dead animals 
of Chapter 3 
 1504.10 - Fish-liver oils and their fractions  1504.20 - Fats and oils and their fractions, of fish, other than liver oils  ex 1603.00  - Extracts and juices fish or crustaceans, mollu scs or other aquatic invertebrates 
 16.04 Prepared or preserved fish; caviar an d caviar substitutes prepared from fish eggs 
 16.05 Crustaceans, molluscs and other aquatic  invertebrates, prepared or preserved 
 2301.20 - Flours, meals and pellets, of fish or of crustaceans, molluscs or other aquatic 
invertebrates 
 
(b)  Chapters 25 to 97, except the following agricultural products: 
 
 Code/ 
Heading  Product Description7 
   
 2905.43 -- Mannitol 
 2905.44 -- D-glucitol (sorbitol)  2905.45 -- Glycerol  33.01 Essential oils (terpeneless or not), including concretes and absolutes; resinoids; 
extracted oleoresins; concentrates of essential oils in fats, in fixed oils, in waxes or the 
like, obtained by enfleurage or maceration; terpenic by-pro ducts of the deterpenation of 
essential oils; aqueous distillates and aqueous solutions of essential oils 
 ex 3302.10  --Of a kind used in the manufacture of beverages  35.01 Casein, caseinates and other casein derivatives; casein glues  
                                                      
6 [The following deviations are noted without prejudice to the rights and obligations of Members and 
without creating a precedent for futu re negotiations.  Firstly, Japan  will schedule as non-agricultural products 
the following HS2002 Codes: 1212.20 (Seaweeds and other algae), 1302.31 (Agar-agar) and ex 2106.90 (Other 
food preparations not elsewhere specified or included, with the largest single ingredient consisting of products specified in sub-heading 1212.20 by weight; Hijikia fusi-formisu; and seaweed products).  Secondly, the 
following Members will schedule some of the HS2002 Codes and Headings covered by paragraphs (i) and (ii) as 
agricultural products: the European Communities
 (ex1603.00 and 3302.10), Mexico  (ex1603.00), Turkey  
(ex1603.00, 1604 and 1605) and Switzerland  (05.08, 0511.91, 1504.10, 1504.20 and 2301.20)."] 
7 The product descriptions for HS Codes with ex-outs are specific and do not cover the entire 6-digit 
HS Code.  TN/MA/W/103 
 Page 21 
 
 
   Code/ 
Heading  Product Description7 
   
 35.02 Albumins (including concentrates of two or more whey proteins, containing by weight 
more than 80% whey proteins, calculated on the dry matter), albuminates and other 
albumin derivatives 
 35.03 Gelatin (including gelatine in rectangular (including square) sheets, whether or not 
surface-worked or colo ured) and gelatin derivatives; isinglass; other glues of animal 
origin, excluding casein glues of heading 35.01 
 35.04 Peptones and their derivatives; other protein substances and their derivatives, not 
elsewhere specified or included; hide powder, whether or not chromed 
 35.05 Dextrins and other modified starches (for example, pregelatinised or esterified 
starches); glues based on starches, or on dextrins or other modified starches  
 3809.10 - With a basis of amylaceous substances 
 38.23 Industrial monocarboxylic fatty acids; acid oils from refining; industrial fatty alcohols 
 3824.60 - Sorbitol other than that of subheading 2905.44 
 41.01 Raw hides and skins of bovine (including buffalo) or equine animals (fresh, or salted, 
dried, limed, pickled or otherwise preserved, but not tanned, parchment-dressed or 
further prepared), whether or not dehaired or split  
 41.02 Raw skins of sheep or lambs (fresh, or salted, dried, limed, pickled or otherwise 
preserved, but not tanned, parchment-dressed or further prepared), whether or not with 
wool on or split, other than those excluded by Note 1 (c) to this Chapter . 
 41.03 Other raw hides and skins (fresh, or salted, dried, limed, pickled or otherwise 
preserved, but not tanned, parchment-dressed or further prepared), whether or not 
dehaired or split, other than those excluded by Note 1 (b) or 1 (c) to this Chapter 
 43.01 Raw furskins (including heads, tails, paws and other pieces or cuttings suitable for 
furriers' use), other than raw hides and skins of heading 41.01, 41.02 or 41.03 
 50.01 Silk-worm cocoons suitable for reeling  50.02 Raw silk (non-thrown)  50.03 Silk waste (including cocoons unsuitable for reeling, yarn waste and garnetted stock) 
 51.01 Wool, not carded or combed 
 51.02 Fine or coarse animal hair, not carded or combed   51.03 Waste of wool or of fine or coarse animal hair, including yarn waste but excluding 
garnetted stock 
 52.01 Cotton, not carded or combed 
 52.02 Cotton waste (including yarn waste and garnetted stock)  52.03 Cotton, carded or combed  53.01 Flax, raw or processed but not spun; flax tow and waste (including yarn waste and 
garnetted stock) 
 53.02 True hemp (Cannabis sativa L.) , raw or processed but not spun; tow and waste of true 
hemp (including yarn waste and garnetted stock) 
 TN/MA/W/103 
Page 22  
 
  Annex 2
 
 
European Communities 
 
Tariff  line 
 Indicative product description 
0302.32.90  Yellowfin tunas ( Thunnus albacares ), fresh or chilled, other than for the industrial 
manufacture of products of heading 16.04 
ex 0302.69.99  The following fish, fresh or chilled,  excluding livers and roes: Lesser African threadfin, 
Sompat grunt, Sea Catfish, Yellow croaker, Largehead hairtail, Cassava croaker, White 
grouper, Red Pandora, Flagfin mojarra 
0303.79.19 Other fish, frozen, excluding livers and roes ex 0303.79.98 The following frozen fish: Lesser Afri can threadfin, Sompat grunt, Sea Catfish, Yellow 
croaker, Largehead hairtail, Cassava croaker, White grouper, Red Pandora, Flagfin 
mojarra 
0304.10.19 Fish fillets and other fish meat (whether or not minced), fresh or chilled, of other 
freshwater fish 
0304.10.38 Other fish fillets and other fish meat, fresh or chilled 0304.20.19 Frozen fillets, of other freshwater fish 
0304.20.45 Frozen fillets, of tuna (of the genus  Thunnus ) and of fish of the genus Euthynnus  
ex 0304.20.94 Frozen fillets of the following fish: Lesser African threadfin, Sompat grunt, Sea Catfish, 
Yellow croaker, Largehead hairtail, Cassava croaker, White grouper, Red Pandora, 
Flagfin mojarra 
0306.13.50 Shrimps of the genus Penaeus  
0306.13.80 Other shrimps and prawns 
0307.49.18 Other cuttle fish ( Sepia officinalis, Rossia macrosoma, Sepiola spp .), frozen 
0307.59.10 Other octopus ( Octopus spp. ), frozen 
1604.14.11 Tunas and skipjack, in vegetable oil 
1604.14.16 Tunas and skipjack, fillets known as ‘loins’ 1604.14.18 Other preserved or prepared tunas and skipjack 
1604.19.31 Other fish fillets known as ‘loins’ 
5208.12.96 Plain weave of cotton, weighing  more than 100 g/m², not exceeding 165 cm 
5208.12.99 Plain weave of cotton, weighing more than 100 g/m², exceeding 165 cm 
5701.10.10 Carpets, of wool or fine animal hair, containing a total of more than 10 % by weight of 
silk or of waste silk other than noil 
5701.10.90 Other carpets and other textile floor covering, knotted, whether or not made up, of wool 
or fine animal hair 
6105.10.00 Men's or boys' shirts , knitted or crocheted, of cotton 
6105.20.10 Men's or boys' shirts, knitte d or crocheted, of synthetic fibers 
6109.10.00 T-shirts, singlets and other vests, knitted or crocheted, of cotton 
6110.11.30 Men's or boys' jerseys, pullovers, card igans, waistcoats and similar articles, knitted or 
crocheted, of wool 
6110.12.10 Men's or boys' jerseys, pullovers, card igans, waistcoats and similar articles, knitted or 
crocheted; of Kashmir (cashmere) goats  TN/MA/W/103 
 Page 23 
 
 
  Tariff  line 
 Indicative product description 
6110.12.90 Women's' or girls'  Jerseys, pullovers, cardigans, wais tcoats and similar articles, knitted 
or crocheted, of Kashmir (cashmere) goats 
6110.20.91 Men's or boys' jerseys, pullovers, card igans, waistcoats and similar articles, knitted or 
crocheted, of cotton 
6110.20.99 Women's' or girls' jerseys, pullovers, ca rdigans, waistcoats and similar articles, knitted or 
crocheted, of cotton 
6110.30.91 Men's or boys' jerseys, pullovers, card igans, waistcoats and similar articles, knitted or 
crocheted, of man-made fibers 
6110.30.99 Women's' or girls' Jerseys, pullovers, cardigans, waistcoats and similar articles, knitted 
or crocheted, of man-made fibres 
6203.42.35 Men's or boys'  trousers, bib and brace overalls, breeches and shorts, of cotton 
6204.52.00 Women's' or girls' skirts and divided skirts, of cotton 
6204.63.18 Women's' or girls' trousers, bib an d brace overalls, breeches and shorts, of synthetic 
fibres (excluding industrial and occupational) 
6205.20.00 Men's or boys' shirts, of cotton 
6206.30.00 Women's or girls' blouses, shirts and shirt-blouses, of cotton 
6214.20.00 Shawls, scarves, mufflers, mantillas, ve ils and the like, of wool or fine animal hair 
7601.10.00 Unwrought aluminium, not alloyed 
7601.20.10 Aluminium alloys, primary 
7601.20.91 Aluminium alloys, secondary, in ingots or in liquid state 
 
Note:   The [40] tariff lines listed correspond to the tariff structure notified by the 
European Communities to the Integr ated Database (IDB) for the year 2005, which is in the HS2002 
nomenclature.  The product descriptions are indicative only.   TN/MA/W/103 
Page 24  
 
  Annex 3
 
 
United States 
 
 
Tariff  line 
 Indicative product description 
6102.20.00 Women's or girls' overcoats, carcoats, capes, cloaks, anoraks, windbreakers and 
similar articles, knitted or crocheted, of cotton 
6103.42.10 Men's or boys' trousers, breeches and shorts, knitted or crocheted, of cotton 
6103.43.15 Men's or boys' trousers, breeches an d shorts, knitted or crocheted, of synthetic 
fibers, nesoi 
6104.62.20 Women's or girls' trousers, breeches and shorts, kn itted  or crocheted, of cotton 
6104.63.20 Women's or girls' tr ousers, breeches and shorts, knitted or crocheted, of synthetic 
fibers, nesoi 
6105.10.00 Men's or boys' shirts , knitted or crocheted, of cotton 
6106.10.00 Women's or girls' blouses and shirts, knitted or crocheted, of cotton 
6107.11.00 Men's or boys' underpants an d briefs, knitted or crocheted, of cotton 
6108.21.00 Women's or girls' briefs and panties, knitted or crocheted, of cotton 
6109.10.00 T-shirts, singlets, tank tops and si milar garments, knitted or crocheted, of cotton 
6109.90.10 T-shirts, singlets, tank tops and similar garments, knitted or crocheted, of man-
made fibers 
6110.20.20 Sweaters, pullovers and similar artic les, knitted or crochete d, of cotton, nesoi 
6110.30.30 Sweaters, pullovers and similar artic les, knitted or crocheted, of manmade fibers, 
nesoi 
6201.92.20 Men's or boys' an oraks, windbreakers & similar ar ticles  nesoi, not knitted or 
crocheted, of cotton, not cont. 15% or more by wt of down, etc 
6203.42.20 Men's or boys' bib and brace overalls, not knitted or crocheted, of cotton, not 
containing 10 to 15% or more by weight of down, etc 
6203.42.40 Men's or boys' trousers and shorts, no t bibs, not knitted  or crocheted, of cotton, not 
containing 15% or more by weight of down, etc 
6203.43.40 Men's or boys' trousers, breeches & shorts, of synthetic fibers, con under 15% wt 
down etc, cont under 36% wt wool, n/water resist, not k/c 
6204.62.40 Women's or girls' tr ousers, breeches and shorts, not kn itted or crocheted, of cotton, 
nesoi 
6204.63.35 Women's or girls' trousers, breeches and shorts, not knitted or crocheted, of 
synthetic fibers, nesoi 
6205.20.20 Men's or boys' shirts, not kn itted or crocheted, of cotton,  nesoi 
6205.30.20 Men's or boys' shirts, not knitte d or crocheted, of manmade fibers, nesoi 
6206.40.30 Women's or girls' blouses and shirts , not knitted or crocheted, of manmade fibers, 
nesoi 
6211.32.00 Men's or boys' track suits or other garments nesoi, not knitted or crocheted, of 
cotton 
6211.33.00 Men's or boys' track suits or other ga rments nesoi, not knitted or crocheted, of man-
made fibers 
6212.10.90 Brassieres, not containing lace, net or embroidery, containing under 70% by wt of 
silk or silk waste, whether or not knitted or crocheted 
 
Note:  The [25] tariff lines correspond to the tariff structure notified by the United States to the 
Integrated Database (IDB) for the year 2005, wh ich is in the HS2002 nomenclature.  The product 
descriptions are indicative only.   
   TN/MA/W/103 
 Page 25 
 
 
  Annex 4  
 
 
 1. Pakistan, for the following tariff lines in Annex 3: 
 
Tariff line Indicative product description 
6105.10.00 Men's or boys' shirts , knitted or crocheted, of cotton 
6109.10.00 T-shirts, singlets, tank tops and si milar garments, knitted or crocheted, of cotton 
6110.20.20 Sweaters, pullovers and similar artic les, knitted or crochete d, of cotton, nesoi 
6203.42.40 Men's or boys' trousers and shorts, not bibs , not knitted  or crocheted, of cotton, not containing 
15% or more by weight of down, etc 
6204.62.40 Women's or girls' trous ers, breeches and shorts, not knitted or crocheted, of cotton, nesoi 
  
2. Sri Lanka, for the following tariff lines in Annex 3: 
  
Tariff line Indicative product description 
6110.20.20 Sweaters, pullovers and similar artic les, knitted or crochete d, of cotton, nesoi 
6203.42.40 Men's or boys' trousers and shorts, not bibs , not knitted  or crocheted, of cotton, not containing 
15% or more by weight of down, etc 
6204.62.40 Women's or girls' trous ers, breeches and shorts, not knitted or crocheted, of cotton, nesoi 
6205.20.20 Men's or boys' shirts, not kn itted or crocheted, of cotton,  nesoi 
6212.10.90 Brassieres, not containing lace, net or embroidery, containing under 70% by wt of silk or silk 
waste, whether or not knitted or crocheted 
 
Note:   These  tariff lines correspond to the tariff st ructure notified by the United States to the 
Integrated Database (IDB) for the year 2005, wh ich is in the HS2002 nomenclature.  The product 
descriptions are indicative only.   TN/MA/W/103 
Page 26  
 
  ANNEX 5
 
 
NTB TEXTUAL PROPOSALS8 
 
 This compilation is without prejudice to the positions of Members and to their rights and 
obligations under the WTO Agreement.   The inclus ion of a text in this Annex does not presume a 
consensus around it.  
 
 Table of contents
 Page  
 
I. MINISTERIAL DECISION ON PROCEDURES FOR THE FACILITATION 
OF SOLUTIONS TO NON-TARIFF BARRIERS ..............................................................27  
II. UNDERSTANDING ON THE INTERPRETATION OF THE AGREEMENT ON TECHNICAL BARRIERS TO TRADE AS APPLIED TO TRADE IN 
FIREWORKS...................................................................................................................... ....31
 
III. HARMONIZATION OF LIGHTER STANDARDS AND CONFORMITY 
ASSESSMENT PROCEDURES............................................................................................34  
IV. AGREEMENT ON ELIMINATING NON-TARIFF BARRIERS RELATED TO NON TRADE ISSUES............................................................................................................37
 
V. UNDERSTANDING ON THE INTERPRETATION OF THE AGREEMENT 
ON TECHNICAL BARRIERS TO TRADE AS APPLIED TO TRADE IN 
ELECTRONICS .................................................................................................................... .39 
VI. REVISED  SUBMISSION  ON EXPORT TAXES ................................................................48  
VII. UNDERSTANDING ON THE INTERPRETATION OF  THE AGREEMENT 
ON TECHNICAL BARRIERS TO TRADE WITH RESPECT TO THE 
LABELLING OF TEXTILES, CLOTHING, FOOTWEAR, AND TRAVEL 
GOODS .......................................................................................................................... ..........51  
VIII.  AGREEMENT ON INCREASED TRANSPARENCY ON EXPORT 
RESTRICTIONS ................................................................................................................... .56 
IX. DECISION ON NON TARIFF BARRIERS AFFECTING FORESTRY 
PRODUCTS USED IN BUILDI NG CONSTRUCTION ....................................................59  
X. MINISTERIAL DECISION ON TRADE  IN REMANUFACTURED GOODS...............61  
 
                                                      
8 The proposals have been compiled in alphabetical order of the submitting Member(s).   TN/MA/W/103 
 Page 27 
 
 
   
I. MINISTERIAL DECISION ON PROCED URES FOR THE FACILITATION OF 
SOLUTIONS TO NON-TARIFF BARRIERS9 
Ministers , 
 
 Recalling that in paragraph 16 of the Doha Mini sterial Declaration, Annex B of the 
Framework Agreement and paragra ph 22 of the Hong Kong Ministerial Declaration, Members agreed 
to negotiations on, inter alia , reduction or as appropriate elimin ation of non-tariff barriers, in 
particular on products of export in terest to developing countries, 
  
Conscious of the fact that non-tariff barriers aff ect market access opportunities for all WTO 
Members and may negate benefits sought to be ach ieved from the reduction or elimination of tariffs, 
  
Recognizing that flexible and expeditious procedures of  a conciliatory and non-adjudicatory 
nature, involving a facilitator, may promote mutu ally acceptable solutions to Members' concerns 
regarding non-tariff barriers that aid exporters a nd importers, while respecting legitimate objectives of 
the Members maintaining the measures,  
 Recognizing  that these procedures neither alter nor  address the rights and obligations of 
Members under the WTO Agreement, 
 
Recognizing  that these procedures build upon and further the objectives of existing 
procedures in WTO bodies,  
Emphasizing that the procedures under this Decision are not intended to replace or otherwise 
affect the Understanding on Rules and Procedur es Governing the Settlement of Disputes, and 
Members’ rights and obligations thereunder, 
 
Decide  as follows: 
 
G
ENERAL PROVISIONS  
 1. Pursuant to this Decision, any Member may seek to address through recourse to the 
procedures set out below its concerns re garding any non-tariff barrier (‘NTB’) [ scope to be 
determined ], which it believes adversely affects its trade. 
  2. These procedures shall neither enforce any right s or obligations under the WTO Agreement 
nor add to or diminish the rights and obligations  of Members, and shall be without prejudice to 
Members’ rights and obligations under the Unde rstanding on Rules and Procedures concerning the 
Settlement of Disputes ("DSU").  3. These procedures shall be applied in th e context of relevant WTO Committees
10.  
 
4. Any time limit referred to in this Decision may be modified by mutual agreement between the 
Members involved in these procedures.   
                                                     
 
9 Submitted by the African Group, Canada, Europ ean Communities, LDC Group, NAMA-11 Group of 
Developing Countries, New Zealand, Norway, Pakistan and Switzerland (document JOB(07)/194). 
10 The relevant WTO Committee is the one overseei ng the operation of the WTO agreement most 
closely related to the measure at issue. If there is no such Committee for a particular measure, the request shall 
be notified to the Council for Trade in Goods. TN/MA/W/103 
Page 28  
 
  5. At all stages of these procedures, the special situation of least-developed country Members 
involved in these procedures shall be given particular  consideration. In this regard, Members shall 
exercise due restraint in raising matters under these procedures involving a least-developed country 
Member and solutions explored shall take into consideration the specific situation of the least 
developed country Member involved, if any.  
 
P
ROCEDURES FOR ADDRESSING CONCERNS REGARDING NTB S 
 
Stage I: Request and Response on a Specific NTB  
 
6. Any Member (the ‘requesting Member’) may, in dividually or jointly with other Members, 
initiate Stage I of these procedures by submitting in writing to another Member (the ‘responding 
Member’) a request for information regarding a non-tariff barrier. The request shall identify and 
describe the specific measure at i ssue and provide a detailed description of the requesting Member's 
concerns regarding the measure's impact on trade. 
  
7. The responding Member shall provide, within [20]  days, to the extent practicable, a written 
response containing its comments on the information contained in the request.  Where the responding 
Member considers that a response within [20] days  is not practicable, it shall inform the requesting 
Member of the reasons for the delay, together with  an estimate of the period within which it will 
provide its response.   
 
8. Upon submission, the requesting Member sha ll notify its request to the relevant WTO 
Committee,11 which shall circulate it to all Members.  The responding Member shall equally notify its 
response to the relevant WTO Committee,S11 which shall circulate it to all Members. Following the 
receipt of these notifications, upon the request of either the requesting or the responding Member 
(hereinafter referred to as “the parties”), the Ch airperson or one of the Vice Chairpersons of the 
relevant WTO Committee shall convene  a meeting with the parties to inter alia  address any 
outstanding issues and explore possible next steps.  
Stage II: Resolution Procedures 
 
9. Following this initial information exchange under Stage I, the parties shall decide on whether 
to proceed to Stage II of these procedures. Stag e II of these procedures ma y only be initiated by 
mutual agreement of the parties. However, if one of the parties requests to proceed to Stage II of these 
procedures, the other party shall accord symp athetic consideration to that request.  
 
10. The parties shall notify 
any decision to proceed to Stage II to  the relevant WTO Committee.     
 11. Any other Member may submit a written request to the parties, within [10] days of 
notification under paragraph 10, that  it be permitted to participate in these procedures as a third party.  
Such other Member may participate in these proce dures if both parties so agree and on the terms 
agreed to by the parties. 
 
11 bis.  Once initiated, Stage II shall be term inated upon request of either party. 
 
                                                     
 
11 If the Committee to which these communications were notified considers itself not to be the relevant 
Committee, it shall forward the notifications to the Co mmittee overseeing the opera tion of the WTO agreement 
most closely related to the measure at issu e, or if it is unclear which WTO agreement  is most closely related, to 
the Council for Trade in Goods.   TN/MA/W/103 
 Page 29 
 
 
  Appointment of a Facilitator 
 
12. Upon their agreement to initiate Stage II of th ese procedures, the parties may request that the 
Chairperson of the relevant WTO Committee, (or if  it is unclear which agreement is most closely 
related, the Chairperson of the Council for Trade in Goods), or one of the Vice Chairpersons, serve as 
facilitator. Alternatively, the par ties may request that a Friend of th e Chair agreed upon by the parties 
serve as facilitator. If the parties cannot agree on th e appointment of a facilitator within [15] days of 
the initiation of Stage II of these procedures, and if on e of the parties so requests, the [Chairperson of 
the Council for Trade in Goods] shall appoint the fac ilitator within an additional [10] days and after 
consulting the parties. Citizens of Members whos e governments are parties shall not serve as the 
facilitator, unless the parties agree otherwise. 
 
Seeking Mutually Agreed Solutions 
 
13. The facilitator, in consultation with the parti es, shall have full flexibility in organizing and 
conducting the deliberations under these procedures, which normally should take place at the WTO 
headquarters, unless the parties agree on any other place of mutual convenience, taking into account 
possible capacity constraints of developing country pa rties. The facilitator and the parties may rely on 
existing working procedures of any WTO Committee con cerned, to the extent they are relevant for the 
prompt resolution of the NTB in question. Vide o conferencing and other telecommunication facilities 
may be utilized, if considered suitable and agreed to between the parties.  
 
14. Either party may present to the facilitator and the other party any info rmation that it deems 
relevant.   15. In assisting the parties, in an impartial and tran sparent manner, in bringing clarity to the NTB 
concerned and its possible trade-related impact, the facilitator may:  
 
(a) offer advice and propose possible solutions for the parties’ consideration, taking into 
account the information presented by the parties; provided  any such opinion shall not 
pertain to the WTO consistency of the NTB,  the parties' rights and obligations under 
the WTO Agreement, or to any possible leg itimate objectives for the maintenance of 
the measure;  
 (b) organize meetings between, and meet individuall y or jointly with, the parties, in order 
to facilitate discussions on the NTB and to assist in reaching mutually agreed solutions;  
(c) seek assistance of the WTO Secretariat and, after consulting with the parties, consult 
with relevant experts and stakeholders; and 
 (d) provide any additional support requested by the parties.   
16. All meetings and information (whether provided in oral or written form) acquired pursuant to 
paragraphs 14, 15 and 16 of these procedures shall be  confidential and without prejudice to the rights 
of any party or other WTO Member in any dispute settlement proceeding under the DSU. 
  17. The parties shall endeavour to reach a mutually  agreed solution within [60] days from the 
appointment of the facilitator. Pending final resoluti on of the NTB, the parties may consider possible 
interim solutions, especially if th e NTB relates to perishable goods. 
 
Outcome and Implementation 
 
18. Upon termination of Stage II of these procedures by a party or in the event that the parties 
reach a mutually agreed solution, the facilitator shall issue to the pa rties, in writing, a draft factual TN/MA/W/103 
Page 30  
 
  report, providing a brief summary of (1) the NTB at  issue in these procedures; (2) the procedures 
followed; and (3) any mutually agreed solution re ached as the final outcome of these procedures, 
including possible interim solutions. The facilitator shall provide the parties [15] days to comment on the draft report. After considering the comments of th e parties, the facilitator shall submit, in writing, 
a final factual report to the relevant WTO Committee.  
 
19. If the parties reach a mutually  agreed solution, such solu tion shall be implemented in 
conformity with the WTO Agreement.   
Final Provisions 
 
Transparency 
 
20. Notifications pursuant to this Decision and the facilitators’ final factual reports shall 
constitute regular items on the agenda of the re levant WTO Committees. Adequate opportunity shall 
be provided for an exchange of views amongst Members in the relevant WTO Committee. 
 21. For the purpose of transparency, the Chairpersons  of the relevant WTO Committees [or, when 
applicable, the Council for Trade in Goods] shall pr ovide to Members, on an annual basis, a status 
report of notified requests and r esponses and of ongoing and recently completed procedures, together 
with a list of any reports from facilitators.  
 
Technical Assistance 
 
22. Developing country Members and in partic ular least-developed country Members may 
request assistance from the WTO Secretariat to promote their understanding of the use and 
functioning of these procedures. Technical assist ance required by least-developed country Members 
will be made available through the Technical Assistance Programmes of the WTO. Developed 
country Members are encouraged to provide technical assistance , inter alia , to share with developing 
country Members their experience for effective participation in these procedures.  
Review 
 
23. In light of experience gained from the operati on of these procedures, the [Council for Trade in 
Goods] will undertake a review of the effectivene ss of the procedures under this Decision no later 
than [5] years after the adoption of this Decisi on. Based on this review, Members may decide on 
whether to extend these procedures to other matte rs falling under the WTO Agreement or otherwise 
modify these procedures.   
  TN/MA/W/103 
 Page 31 
 
 
   
II. UNDERSTANDING ON THE INTERPRETATION OF THE AGREEMENT ON 
TECHNICAL BARRIERS TO TRADE AS APPLIED TO TRADE IN FIREWORKS12   
 
Members, 
 
Recalling  Paragraph 16 of the Doha Ministeria l Declaration and Paragraph 22 of the 
Hong Kong Ministerial Declaration, where Members agr eed to negotiate with a view to reducing or as 
appropriate eliminating tariffs  and non-tariff barriers to trade in non-agricultural products; 
 
Considering the significant impact of fireworks on human safety, property and the 
environment and the lack of applicable  international standards on fireworks;  
 
Noting  that unreasonable and duplicative technica l regulations, standards and conformity 
assessment procedures on fireworks greatly impede  the international trade in fireworks;  
 
Desiring  to facilitate international trade in firewo rks through the establishment of universally 
accepted technical regulations, standards a nd conformity assessment procedures;   
 
Hereby agree  as follows: 
 
Article 1 - General Provisions 
 
1.1  The Understanding applies to fireworks under HS 360410.   1.2  The Understanding applies to technical re gulations, standards, and conformity assessment 
procedures related to the production and trade of fireworks that impede international trade. 
 1.3  The provisions specified in the Understa nding shall constitute an interpretation of the 
Agreement on Technical Barriers to Trade set out  in Annex 1A to the Marrakesh Agreement 
Establishing the World Trade Organization. 
 
Article 2 - Terms and Definitions 
 
2.1  Firework  refers to any article cont aining explosive substances or  an explosive mixture of 
substances designed to produce heat, light, sound, gas,  or smoke, or a combination of such effects, 
through self-sustained exothermic chemical reactions intended for entertainment purposes. 
 
2.2  The terms and definitions referred to in the WTO Agreement on Technical Barriers to Trade 
and those in relevant ISO/IEC standard s shall apply to this Understanding. 
 
Article 3 - International Standards 
 3.1  The WTO shall draw the attention of relevant  international standard- setting organizations to 
the absence of international standards of firewo rks and encourage them to prioritize fireworks 
standards development.   3.2  WTO Members are encouraged to participat e actively in the development of international 
standards for fireworks. 
 
                                                     
 
12 Submitted by the People's Republic of China (document TN/MA/W/102). TN/MA/W/103 
Page 32  
 
  Article 4 - Conformity Assessment Procedures 
 
4.1  Given the risks and costs inherent in long- distance transportation of hazardous fireworks test 
samples, a Member shall give positive considerati on to recognize an assurance of conformity issued 
by a conformity assessment body approved for that purpose by the authorities of another Member in 
accordance with relevant international standard s (e.g. ISO/IEC17025). A Member may, however, 
require as a condition for accepting such a declaratio n of conformity that the conformity assessment 
body that issued it participates in or being a memb er of relevant international accreditation systems 
(e.g., systems linked to the International Laboratory Accreditation Cooperation, ILAC). 
 
4.2  A Member shall accept fireworks hazard classification certificates issued by competent 
laboratories of another Member in accordance with UN Series 6 Test of the United Nations Recommendations on the Transport of Dangerous Goods.  4.3  In case that there is a registration requirem ent on fireworks, a Member should finish its 
registration process and release the registration c ode within 60 days upon the acceptance of relevant 
documents.  4.4  A Member shall avoid re-testing fireworks on which another Member are competent to carry out compliance testing according to the technical requirements of that Member and has already undertaken the relevant testing accordingly. 
 
Article 5 - Labelling  
 
5.1  Considering the difficulty of manufacturers  and exporters to meet Members’ divergent 
labelling requirements with respect to the inform ation, format, colour difference and position of 
labelling, Members shall take positive measures to harmonize their labelling requirements. 
 
5.2  Before the imposition of interna tional labelling standards on fireworks, a Member shall make 
best effort to ensure the consistency of its dom estic labelling requirements. If a Member proposes to 
adopt or amend a technical regulation or conformity  assessment procedures with respect to labelling, 
it shall notify other Members through the Secretaria t or through its WTO Enquiry Point no less than 
60 days before the formal adoption of the requirements.  
 
Article 6 -Transparency 
 
6.1  Before amending an existing or adopting a ne w technical regulation, standards or conformity 
assessment procedure, Members shall allow reasonabl e time for consultations with and interested 
party and take other Members’ comments into cons ideration. A Member shall notify the WTO of the 
technical regulations, standards and conformity  assessment procedures on fireworks adopted or 
amended thereafter.  6.2  Upon request of other Members, a Member shall provide in a timely manner copies of:  
 
- its latest versions of its technical regulations , standards and test manuals on fireworks, and 
- the deadline for conducting each conformity assessment procedure. 
 
Article 7 - Technical Cooperation 
 
7.1  A Member shall conduct necessary consultati ons with interested Members in developing 
domestic technical regulations, standards and conformity assessment procedures on fireworks. 
 
7.2  As provided for in Article 11 of the TB T Agreement, developed country Members shall 
provide, on request and on mutually agreed terms and conditions with devel oping and least-developed  TN/MA/W/103 
 Page 33 
 
 
  country Members, technical cooperation in the prep aration of the plans as well as the implementation 
of the commitments under this Understanding.  
 7.3  WTO Members should strengthen exchange of  technology, experience and information with 
respect to technical regulations, standards a nd conformity assessment procedures on fireworks. 
 
Article 8 - Final Provisions 
 
8.1  The Committee on Technical Barriers to Trade shall review the operation and implementation of this Understanding on an annual basis. 
 TN/MA/W/103 
Page 34  
 
  III. HARMONIZATION OF LIGHTER STANDARDS AND CONFORMITY 
ASSESSMENT PROCEDURES
13 
I. INTRODUCTION 
 
1. In line with paragraph 16 of the Doha Ministerial Declaration in November 2001 and 
paragraph 22 of the Hong Kong Ministerial Declarati on in December 2005, tariff as well as non-tariff 
barriers (“NTBs”) should be reduced or as appropria te eliminated, in particular with respect to 
products of export interest to developing Members,  and the special needs and interests of developing 
and least-developed Members should be taken fully  into account.  Some Members create and apply 
NTBs in the form of standards, inspection, testing,  certification and accreditation, which fail to take 
due account of the national condition of developing Members, and which pose de facto or disguised 
restrictions on exports of interests to developing  Members and constitute unnecessary obstacles to the 
market access of products from developing Members.  2. In regard to the international trade of  lighters (HS codes 961310 and 961320), some Members 
have established their domestic technical regulations , beyond those specified in existing international 
standards.  The following proposal is made with a vi ew to possible solutions to NTBs affecting trade 
in lighters.  
II. BACKGROUND 
 
3. The annual consumption of lighters in the wo rld is about 18 billion units.  China, France, 
Thailand, Viet Nam, Indonesia, the Philippines a nd Brazil are the major producers and exporters.  
 4. Some Members have established technical regula tions that restrict the international trade in 
lighters.  Some Members impose child-resistant (“CR”) standards, requiring the installation of CR 
devices on lighters below a certain unit price.  However, such safety restrictions serve to discriminate 
against lower-priced lighters and thereby fo rm an obstacle to the trade in lighters. 
 5. In some cases, Members require, with respect  to imported lighters, a test report issued by 
specific laboratories that the importing Members rec ognized, and refuse to accept test reports issued 
by other laboratories that are in complete compliance with the ISO/IEC17025 and ISO 9994:2005 
standards.  Thus, lighter companies must first obtain certification for their lighters from specific 
laboratories recognized by the importing Members, which greatly increase th e companies’ costs. 
 6. In addition, some Members require a test re port for each and every type of lighter. While the 
report is valid for only six months, the testing lasts for a period of from three to six months and costs 
more than 1,000 U.S. dollars.  
 7. All of these NTBs have greatly affected the international trade of lighters and, specifically, 
the production and marketing of lighters by companies in developing Members.  For example, according to one study, 75 percent of China’s li ghter manufacturers have encountered NTBs in the 
process of exporting their lighter products, repr esenting a total annual value of 100 million U.S. 
dollars.  The technical requirements, testing and a lteration of packing and labelling, increase the cost 
of exports by approximately 10 percent.   
III. MODALITIES 
 8. All WTO Members shall take relevant existing international standards (such as 
ISO 9994:2005), guides and recommendations as the basis for domestic technical regulations, 
standards and conformity assessment procedures. 
                                                     
 
13 Submitted by the People's Republic of China (document TN/MA/W/90).  TN/MA/W/103 
 Page 35 
 
 
  9. Members, when developing or revising their domestic technical measures concerning lighter 
products, shall ensure that the installation of  CR devices must be on the basis of appropriate safety 
standards, rather than the unit price of the lighters.  The ISO 9994:2005 standard specifies the general requirements for lighters so as to ensure that li ghters are safe when handled properly or even 
improperly in certain predictable ways. Therefore,  Members must recognize lighters as safe if they 
meet the requirements stipulated under the ISO 9994:2005 standard. 
 10. For the purpose of child protection, patent s for safety devices, such as the CR devices, should 
be shared or subject to a shorter duration, and so me mature CR technologies that can be widely used 
should be promoted gradually as generic safety standards. 
 
11. Members shall take effectiv e measures to recognize technical  regulations and conformity 
assessment procedures of other Members as equivale nt to their own, if these procedures fulfill the 
same regulatory objectives, and accept the confor mity assessment results of other Members.  
Developed Members shall accept testing reports issued  by laboratories in developing countries as in 
complete compliance with the ISO/IEC17025 and ISO 9994:2005 standards. 
 12. Before enforcing new technical measures against lighters, Developed Members should 
provide developing Members with a grace period of at least 6 mont hs and should provide technical 
assistance to facilitate the conformity with these measures.   
  TN/MA/W/103 
Page 36 
NON-TARIFF BARRIER NOTIFICATIONS CONCERNING LIGHTERS 
 
No. Tariff item 
 (HS2002) Description of product Non-tariff measure on which ac tion is requested Specific action requested Remarks 
1 2 3 4 5 6 
[1] 961310 
 
961320 pocket lighters, gas fuel led, non refillable 
pocket lighters, gas fuelled, refillable 1. Novelty lighters are forbidden by some Members to enter their 
markets. But the term “novelty lighters” is too vague in definition 
and scope, and may cause disc repancies in application. Adopt positive measures, with a 
view to form a more open 
international market of lighters  
   2. Certain Members require each  consignment of import lighters 
to be tested against the ISO 9994 standard, and liquid-fuelled 
lighters are subject to some restrictive mandatory procedures.   
   3. Some Members make a li nkage between the safety 
requirements and the price of light ers. Lighters below a certain 
price are required to include a child-resistant (CR) device, or obtain 
a certificate of CR device before they are allowed to be produced, 
sold or imported. And this certifi cate must be kept for 3 years from 
the date of production or importation.   
[2] 961310 
 
961320 pocket lighters, gas fuel led, non refillable 
pocket lighters, gas fuelled, refillable 1. Some Members transform their formerly voluntary standards 
into mandatory ones. These standa rds are substantially different 
from the international standard ISO9994. For instance, the CR 
requirements in these standards exceed the requirement of ISO9994 
standard. 1. Adopt the international 
standards where appropriate 
  
   2. Some Members apply two te chnical standards for lighters. One 
is the international standard  ISO9994 covering the quality, 
reliability and safety of lighters,  and containing some appropriate 
safety test procedures but no CR requirements. The other is 
Members’ domestic standard , which establishes the CR 
requirements. Lighters placed on the markets must comply with 
Members’ domestic standard as well as the international standard 
ISO9994. 2. Adopt the international 
standards where appropriate 
  
[3] 961310 
 
961320 pocket lighters, gas fuel led, non refillable 
pocket lighters, gas fuelled, refillable Certain Members maintain regul ations requiring mandatory 
certification of lighters, which sti pulate that lighters can be placed 
on their markets only if they comply with the relevant standards 
and obtain a certificate of confor mity issued by a certification 
body. The test results provided by export members are not 
accepted. 1. Conduct MRAs between 
certification bodies. Accept the 
relevant foreign conformity 
assessment results 
2. Encourage cooperation and 
mutual recognition   TN/MA/W/103 
 Page 37 
 
 
 IV. AGREEMENT ON ELIMINATING NON-TARIFF BARRIERS RELATED TO NON 
TRADE ISSUES14 
Members, 
  Recalling  the Marrakech Agreement desires  of contributing to WTO objectives by entering 
into reciprocal and mutually advantageous arrangeme nts directed to the substantial reduction of tariffs 
and other barriers to Cuba asks that this proposal th at we have presented today in this small group be 
circulated to the rest of the Members. trade and to the elimination of discriminatory treatment in 
international trade relations;  
 Also recalling that pursuant to paragraph 16 of the D oha Ministerial Declaration, Members 
agreed to negotiations aimed at reducing or as appr opriate eliminating tariffs and non-tariff barriers on 
non-agricultural products, in particular on produc ts of interests to developing countries; 
 
Considering  that the international community has firmly and widely rejected the imposition 
of laws and regulations and all other forms of coercive economic measures, including unilateral 
sanctions and has reiterated the urgent need to eliminate them immediately;   
Emphasizing  that such actions not only undermine the principle of Most Favoured Nation of 
the WTO Agreements and  the principles enshri ned in the charter of the United Nations and 
international law, but also severely threaten the freedom of trade and transit;  
 
 Stressing that the international community has rep eatedly called for urgent and effective 
measures to ensure that its members refrain from adopting and applying and to eliminate unilateral 
coercive economic measures; 
  Recognizing  that the WTO Agreement does not establish any distinction between WTO 
Members;   Underlining  that there are several provisions in the WTO Agreements which impede these 
types of measures; 
  Agree as follows:  1.  Members shall refrain from adopting or implementing any unilateral economic or trade 
restrictive measures against any other member for re asons of non commercial natu re inconsistent with 
the WTO Agreements;    2.  Members shall ensure that any restrictiv e measures do not affect commercial interests and 
rights and obligations of third parties;   
3.  Urges all Members to remove any existing discriminatory unilateral commercial measures 
and to enhance market access opportunities for all Members, especially for developing countries;  
 4.  Members shall review regularly their non-tariff measures with a view to ensure that they do not constitute disguised restrictions on international trade,  
 
5.  Members shall also refrain from to using Article XXI of GATT 1994 arbitrarily unless there 
is a common international understanding about the causes of any relevant issue;  
                                                     
 
14 Submitted by Cuba (document TN/MA/W/94). TN/MA/W/103 
Page 38  
 
  6.  Members are obliged to report in advance to  the General Council - to take into account its 
considerations - of their intentions to apply any unilateral coercive commercial measures;   
 7.  The General Council trough the Council on Trad e in Goods, shall review yearly Members’ 
progress in enhancing market access opportunities by eliminating non tariff barriers. 
  TN/MA/W/103 
 Page 39 
 
 
 V. UNDERSTANDING ON THE INTERPRETATION OF THE AGREEMENT ON 
TECHNICAL BARRIERS TO TRADE AS APPLIED TO TRADE IN ELECTRONICS
15 
Members , 
 
 Recalling  that pursuant to paragraph 16 of the Doha  Ministerial Declaration, Members agreed 
to negotiations aimed at reducing or as appropria te eliminating tariffs and non-tariff barriers on 
non agricultural products;   Desiring  to further the expansion of production and trade in the area of electrical and 
electronics equipment, electrical household appliances and consumer electronics (hereinafter 
electronics), so as to promote growth and employment and bridge global digital divides;   Convinced  that reduction and, as appropriate, elimin ation of obstacles to trade in electronics 
caused by divergent, duplicative and burdensome na tional standards, technical regulations and 
conformity assessment procedures will be to the be nefit of all Members, taking into account the 
importance of trade in electronics for developing countries and of the global nature of the industry;   Recalling  the current obligations in the Agreem ent on Technical Barriers to Trade that 
standards, technical regulations and conformity assessment procedures be based, where appropriate, 
on relevant international standards and be perfo rmance-based rather than prescriptive, and not 
prepared, adopted or applied with a view to or with the effect of creating unnecessary obstacles to 
international trade;   Recalling  the work by the ITA Committee on conformity assessment procedures and the 
guidelines on electromagnetic compatibility agreed among ITA Members;  
 
 Recognizing  the important role of the TBT Committee in providing Members an opportunity 
to consult on matters related to the operation of  the TBT Agreement and the furtherance of its 
objectives, as well as the Committee’s ability to establish working parties or other bodies as may be 
appropriate;  
 Noting  that the reduction and, as appropriate, elim ination of non-tariff barriers in electronics 
does not prevent Members from taking measures consis tent with the Agreement on Technical Barriers 
to Trade that are necessary to, inter alia , protect human, animal, or plant life or health or the 
environment; or to prevent deceptive practices; or to protect essential security interests; 
 
 Desiring  to interpret the provisions of the Agreem ent on Technical Barriers to Trade as they 
apply to standards, technical regulations and conformity assessment procedures for trade in 
electronics products;   Hereby agree  as follows: 
 
1. This Understanding ap plies to standards, technical re gulations, and conformity assessment 
procedures related to the safety of electrical equipment and their electromagnetic compatibility 
(EMC) and covers the electrical and electronics equipment, electrical household appliances and consumer electronics specified in Annex 1 of this Understanding.  
 
2.  The terms used in this Understanding sha ll have the same meaning as in the Agreement on 
Technical Barriers to Trade, unless otherwise specified in Annex 2 of this Understanding. 
                                                     
 
15 Submitted by the European Communities (document JOB(07)/42/Rev.1). TN/MA/W/103 
Page 40  
 
   
Relevant International Standard s and Standard-Setting Bodies 
 
3. For the purpose of applying Articles 2.4, 5. 4 and point F of Annex 3 of the TBT Agreement 
regarding safety of electrical equipment and their electromagnetic compatibility for the products 
under this Understanding, the International Or ganization for Standards (ISO), International 
Electrotechnical Commission (IEC) and the Intern ational Telecommunication Union (ITU) shall be 
considered relevant interna tional standard-setting bodies.
16  
 
Conformity Assessment Procedures 
 4.  In respect to all products covere d under this Understanding, where a Member
17 requires 
positive assurance of conformity with its applicable  technical regulations or standards relating to 
safety of electrical equipment and electromagnetic compatibility (EMC) for accepting the product on its market, that Member shall for the purpose of applying Article 5.1.2 of the TBT Agreement accept 
any one or more of the following options as a means for providing such positive assurance of 
conformity:   
(a) a supplier's declaration of conformity as assurance of conformity with such standards or 
technical regulations;  
 
and/or  
 (b) an assurance of conformity
18 with such standards and technical regulations issued by a 
conformity assessment body approved for that purpose by the authorities of another WTO Member. 
 
5.  Where a supplier’s declaration is accepted in accordance with paragraph 4(a), the Member 
shall accept that the supplier in that country ha s sole responsibility for issuing, changing or 
withdrawing the declaration of conformity. The Member may require that the declaration of 
conformity shall identify the supplier, or the suppl ier’s authorised representative, the goods covered 
by the declaration, and the technical regulations with which conformity is declared.
19 Registration of 
the product with the authorities of the Member sh all not be required. Testing of the product by 
recognized testing laboratories on the territory of th e Member shall not be mandatory; if testing is 
undertaken, the choice of the test laboratory shall rest with the supplier.  6.  Where a declaration of conformity is required in accordance with paragraph 4(b), the Member 
shall accept that the supp lier declares that the product meets the technical regulations on the basis of 
an assurance of conformity issued by a conform ity assessment body approved for that purpose by the 
authorities of another Member. A Member may, however, require as a condition for accepting such a declaration of conformity that the conformity assess ment body that issued it participates in relevant 
international accreditation systems (e.g., systems li nked to the Internationa l Laboratory Accreditation 
Cooperation, ILAC, and the Interna tional Accreditation Forum, IAF) or is signatory of international 
accreditation schemes (such as multilateral agreements  (MLA) of regional accreditation associations, 
or the IECEE Certification Body (“CB”) scheme for the conformity testing and certification of 
                                                     
 
16 This does not preclude that Member s, individually or collectively, may also recognize other relevant 
international standard-setting bodies.  
17 These paragraphs only apply in so far and wh en a Member has adopted standards, technical 
regulations or conformity assessment procedures on  any product falling under this Understanding.  
18 This may be in the form of certificate or other forms of statements of conformity. 
19 When a suppliers' declaration of conformity is for a batch of products, it shall cover each article of 
the batch.  TN/MA/W/103 
 Page 41 
 
 
 electrical equipment or the IEC Ex Scheme for certification to standa rds relating to equipment for use 
in explosive atmospheres).20 Testing of the product by recognised testing laboratories on the territory 
of the Member shall in no case be mandatory. Regi stration of the product with the authorities of the 
Member shall not be required.   7. When practicable, especially taking into ac count possible capacity constraints of developing 
countries, Members requiring positive assurance of  conformity for produc ts covered by this 
Understanding should endeavour to accept supplier’s declaration of conformity in accordance with 
paragraphs 4(a) and 5 of this Understanding. 
 
Transparency 
 
8.  Notwithstanding Articles 2.9 and 5.6 of the TBT Agreement, before amending an existing or 
adopting a new standard, technical regulation or c onformity assessment procedure that may have a 
significant effect on trade, Members shall allow reas onable time for consultations with any interested 
party and, whenever possible, conduct an assessment of their expected impact.  
 
9.  For the purpose of enabling interested par ties to become acquainted with all technical 
regulations, in accordance with Article 2.11 of th e TBT Agreement, Members shall ensure that any 
standard, technical regulation or conformity assessment procedure in force is publicly available and 
easily accessible to interested parties.  
 
Transitional Arrangements and Technical Cooperation 
 
10.  No Member shall be obliged to apply the pr ovisions of this Understanding before the expiry 
of a period of one year following its entry into force.   
11.  Developing country Members are entitled to extend the transition period provided for in 
paragraph 10 by one additional year for the applica tion of paragraphs 3 of this Understanding and two 
years for the application of paragra phs 4 to 7 of this Understanding.  
 12.  Developing country Members shall, no later than the expiry of the period provided for in 
paragraph 10, notify a plan for the implementation of  the commitments undertaken in paragraphs 4 to 
7 of this Understanding. As provided for by Artic le 11 of the TBT Agreement, developed country 
Members shall provide, on request and on mutually agreed terms and conditio ns with developing and 
least-developed country Members, technical cooperation in the preparation of the plans as well as the implementation of the commitmen ts under this Understanding.  
 
Working Party on Electrical and Electronics Goods   
 
13.  Pursuant to Article 13.2 of the TBT Agre ement, the TBT Committee, in coordination with 
the ITA Committee, shall establish a Working Party on Electrical and Electronics Goods. The Working Party shall oversee the operation and implem entation of this Unders tanding and the list of 
products contained in Annex 1, a nd to address any developments in global trade in electronics of 
importance to this Understanding, with particular  emphasis on issues of interest and concern to 
developing Members.  14. On a triennial basis following the expiry of  the general period provided in paragraph 10 of 
this Understanding, the Working Party shall ex amine Members’ regimes with respect to the 
                                                     
 
20 Members shall encourage their competent bodies to participate in international accreditation systems 
and to become signatories of international accreditation schemes. TN/MA/W/103 
Page 42  
 
  paragraphs contained here in and the listed products contained in  Annex 1 of this Understanding with 
the aim of gradually expanding the product list.    15.  The Annexes to this Understanding constitute an integral part thereof.  TN/MA/W/103 
 Page 43 
 
 
 ANNEX 1 
 
ELECTRICAL AND ELECTRONIC EQUIPMENT , ELECTRICAL HOUSEHOLD APPLIANCES  
AND CONSUMER ELECTRONICS COVERED UNDER THIS AGREEMENT  
 [Scope to be determined :  
 This Agreement covers the produc ts contained in the WTO Information Technology Agreement and 
the products listed below, except for those with a voltage range of higher than 1000 voltage for 
alternating current and 1500 voltage for direct cu rrent, parts and components for motor vehicles, and 
products for specific uses when duly justified and appropriate to the potential level of risk.]  
 
HS2002 
No. PRODUCT DESCRIPTION 
841451 Table, floor, wall, window, ceiling or roof fans,  
841459 Fans (excl. Table, floor, wall, window, ceiling or roof fans) 
841460 Hoods incorporating a fan 
841510 Window or wall air conditioning machines, self-contained 
841581 Air conditioning machines incorporating a refrigerating unit and valve for reversal of the 
cooling/heat cycle, nes. 
841582 Air conditioning machines incorporating a refrigerating unit, nes. 
841583 Air conditioning machines comprising a motor-drive 
841810 Combined refrige rator-freezers, with separate external doors 
841821 Household refrigerators, compression-type 
841822 Household electrical re frigerators, absorption-type 
841829 Household refrigerators, non-electrical, absorption type 
841830 Freezers of the chest type, of a capacity <= 800 l 
841840 Freezers of the upright type, of a capacity <= 900l 
841850 Refrigerated or freezing chests, cabinets, display 
842211 Dish-washing machin es of the household type 
842219 Dish-washing machines (excl. Those of the household) 
842430 Water cleaning appliances with built-in motor 
845011 Fully-automatic household or laundry-type washing machines 
845012 Household or laundry-type washing machines, with built-in centrifugal dryer 
845019 Household or laundry-type washing machines, of a dry linen capacity <=10kg, nes. 
845020 Laundry-type washing machines, of a dry linen capacity >10kg 
845121 Drying machines, of a dry linen capacity <= 10 kg  
845129 Drying machines for textile yarns, fabrics or made up textiles articles 
846912 Typewriters, automatic (excl. Word-processing machines) 
846920 Typewriters, electric (excl. Automatic typewriters 
850110 Motors of an output <= 37,5 w 
850120 Universal ac/dc motors of an output > 37,5 w 
850131 Dc motors of an output > 37,5 w but <= 750 w  
850132 Dc motors and dc generators of an output > 750 w b 
850133 Dc motors and dc generators of an output > 75 kw b 
850134 Dc motors and dc generators of an output > 375 kw 
850140 Ac motors, single-phase, of an output > 37,5 w 
850151 Ac motors, multi-phase, of an output > 37,5 w but  
850152 Ac motors, multi-phase, of an output > 750 w but <75kw 
850153 Ac motors, multi-phase, of an output > 75 kw 
850161 Ac generators "alternators", of an output <= 75 kva 
850162 Ac generators 'alternators', of an output > 75 kva 
850163 Ac generators 'alternators', of an output > 375 kva 
850164 Ac generators 'alternators', of an output > 750 kva 
850231 Generating sets, wind-powered TN/MA/W/103 
Page 44  
 
  HS2002 
No. PRODUCT DESCRIPTION 
850239 Generating sets (excl. Wind-powered and powered by spark-ignition internal combustion piston 
engines) 
850240 Electric rotary converters 
850421 Liquid dielectric transformers, having a power handling capacity <=650kva 
850422 Liquid dielectric transformers, having a power handling capacity>650kva to 1600kva 
850423 Liquid dielectric transformers, having a power handling capacity>1600kva to 10,000kva 
850431 Transformers having a power handling capacity <= 1kva  
850432 Transformers, having a power handling capacity > 1kva to 16kva 
850433 Transformers having a power handling capacity > 16kva 
850434 Transformers having a power handling capacity > 500kva,nes. 
850440* Static converters 
850450* Inductors (excl. Inductors for discharge lamps or tubes) 
850490 Parts of electrical tran sformers and inductors, nes. 
850530 Electro-magnetic lifting heads 
850590 Electromagnets and their parts (excl. Magnets for medical use) 
850610 Manganese dioxide cells and batteries (excl. Spent) 
850630 Mercuric oxide cells and batteries (excl. Spent) 
850640 Silver oxide cells and batteries (excl. Spent) 
850650 Lithium cells and batteries (excl. Spent) 
850660 Air-zinc cells and batteries (excl. Spent) 
850680 Primary cells and primary batteries, electric (excl. Spent) 
850690 Parts of primary cells and primary batteries, n.e. 
850710 Lead-acid accumulators of a kind used for starting piston engines 
850720 Lead acid accumulators (excl. Spent and starter batteries) 
850730 Nickel-cadmium accumulators (excl. Spent) 
850740 Nickel-iron accumu lators (excl. Spent) 
850780 Electric accumulators (excl. Spent and lead-acid, nickel-cadmi um, nickel-iron, nickel-hydride, 
lithium-ion accumulators) 
850910 Domestic vacuum cleaners,  incl. Dry cleaners and wet vacuum  cleaners, with self-contained 
electric motor 
850920 Domestic floor polishers, with self-contained electric motor 
850930 Domestic kitchen waste disposers, with self-contained electric motor 
850940 Domestic food grinders and mixers and fruit or  vegetables juice extractors, with self-contained 
electric motor 
850980 Electro-mechanical ho usehold appliances, with self-contained electric motor 
851010 Electric shavers 
851020 Hair clippers with self-contained electric motor 
851030 Hair-removing appliances w ith self-contained electric motor 
851090 Parts of electric shavers, hair clippers and hair-removing appliances 
851310 Portable electrical lamps, battery or magneto powered, nes. 
851410 Resistance heated industrial  or laboratory furnaces and ovens 
851420 Furnaces and ovens functioning  by induction or dielectric loss 
851430 Electric industrial or laboratory furnaces and ovens 
851440 Industrial or laboratory induction or dielection heating equipment, nes. 
851511 Soldering irons and guns, electric 
851519 Brazing or soldering mach ines (excl. Soldering irons) 
851521 Fully or partly automatic machines for resi stance welding of metal, fully or partly automatic 
851529 Machines for resistance welding of metals, neither fully nor partly automatic 
851531 Fully or partly automatic machines for arc welding of metals 
851539 Machines for arc welding of  metals, incl. Plasma arc welding 
851580 Electric machines and apparatus for laser or other 
851610 Electric instantaneous or storag e water heaters and immersion heaters 
851621 Electric storage heating radiators,  TN/MA/W/103 
 Page 45 
 
 
 HS2002 
No. PRODUCT DESCRIPTION 
851629 Electric space -heating and soil-heating apparatus  
851631 Electric hairdryers 
851632 Electro-thermic hair dressi ng apparatus (excl. Hairdryers) 
851633 Electric hand-drying apparatus 
851640 Electric smoothing irons 
851650 Microwave ovens 
851660 Electric ovens, cookers, cooking plates and boiling rings and hobs 
851671 Electro-thermic coffee or tea makers, for domestic use 
851672 Electric toaste rs, for domestic use 
851679 Electro-thermic app liances, for domestic use  
851680 Electric heating resistors (excl. Th ose of agglomerated carbon or graphite) 
851810* Microphones and stands therefore (excl.  Cordless microphones with built-in transmitter) 
851821 Single loudspeakers, mounted in their enclosures 
851822 Multiple loudspeakers, mounted in the same enclosures 
851829 Loudspeakers, without enclosure 
851830* Headphones and earphones, whether or not combined  
851840 Audio-frequency electric amplifiers 
851850 Electric sound amplifier sets 
851910 Coin-operated or disc-operated record-players 
851921 Record player s without loudspeaker 
851929 Record players with loudspeaker (excl. Coin-operated) 
851931 Turntables 'r ecord-decks', with automatic record-changer 
851939 Turntables 'record-decks', without automatic record-changer 
851940 Transcribing machines 
851992 Pocket-size cassette players 'dimensions <= 170 mm 
851993 Cassette players "play only" (exc l. Pocket-size and dictating machines) 
851999 Sound-reproducing apparatus, not incorporating a sound recording device) 
852010 Dictating machines not capable of operating without external power source 
852032 Magnetic tape recorders incorporating sound-reproducing 
852033 Cassette recorders incorporating sound-reproducing 
852039 Magnetic tape recorders incorporating sound-reproducing 
852090 Magnetic sound recording or reproducing equipment, nes. 
852110 Magnetic tape-type video recording or reproducing apparatus for magnetic tape 
852190 Video recording or reproducing apparatus, whether or not incorporating a video turning 
852510* Transmission apparatus for radio-telephony, radio-broadcasting or television 
852530 Television cameras (e xcl. Video camera recorders) 
852540* Still image video cameras and other video camera recorders 
852610 Radar apparatus 
852691 Radio navigational aid apparatus 
852692 Radio remote control apparatus 
852712 Pocket-size radiocassette players  
852713 Radio-broadcast receivers capable of ope rating without external source of power, nes 
852719 Radio-broadcast receivers capable of operating with batteries 
852731 Radio-broadcast receivers, for mains opera tion only, with analogue/digital reading system 
852732 Radio-broadcast receivers, fo r mains operation only, with clock 
852739 Radio-broadcast receivers, fo r mains operation only, without clock 
852790 Receivers for radio-te lephony, radio-telegraphy  
852812 Television receivers, colour, whether or not incorporating a video recorder or reproducer 
852813 Television receivers, black and white or other monochrome  
852821 Video monitors, colour 
852822 Video monitors, black and white or other monochrome 
852830 Video projectors 
852910* Aerials and aerial reflectors of all kinds; parts  TN/MA/W/103 
Page 46  
 
  HS2002 
No. PRODUCT DESCRIPTION 
852990* Parts suitable for use solely or principally with the apparatus of headings 8525 to 8528, others 
853110 Burglar or fire alarms and similar apparatus 
853180 Electric sound or visual signalling apparatus (excl. Flat/indicator LEC/LED panels) 
853510 Fuses for a voltage > 1.000 v 
853521 Automatic circuit breakers for a voltage > 1.000 v 
853529 Automatic circuit breakers for a voltage >= 72,5 k 
853530 Isolating switches and make-and-break switches, for a voltage >1000v 
853540 Lightning arresters, voltage limiters and surge suppressors for a voltage>1000v 
853590 Electrical apparatus for switching, protecting or making connections to or in electrical circuits, for a 
voltage >1000v 
853610 Fuses for a voltage <= 1.000 v 
853620 Automatic circuit breakers for a voltage <= 1000 v 
853630 Apparatus for protecting electri cal circuits for a voltage <1000v 
853641 Relays for a voltage <= 60 v 
853649 Relays for a voltage > 60 v but <= 1.000 v 
853650* Switches for a voltage <= 1.000 v (exc l. Relays and automatic circuit breakers) 
853669* Plugs and sockets for a voltage <= 1.000 v (excl. Those for coaxial cables and printed circuits) 
853690* Electrical apparatus for switching electrical circuits 
853710 Boards, cabinets and similar combinations of apparatus (excl. Numerical control panels) 
853720 Boards, cabinets and similar combinations of apparatus for electric control or the distribution of 
electricity 
853810 Boards, panels, consoles, desks, cabinets and other bases for electric control 
853910 Sealed b eam lamp units 
853921 Tungsten halogen filament lamps (excl. Sealed beam lamps units) 
853922 Filament lamps of a power <= 200 w and for a voltage >100v 
853929 Filament lamps, electric (excl. Tungsten halogen lamps) 
853931 Discharge lamps, fluorescent, hot cathode 
853932 Mercury or sodium vapour lamps; metal halide lamps 
853939 Discharge lamps (excl. Fluorescent, hot cathode lamps 
853941 Arc-lamps 
853949 Ultraviolet or infra-red lamps 
854011 Cathode ray television picture tubes, incl. Video, colour 
854012 Cathode-ray television picture tubes, incl. Video, black and white or other monochrome 
854020 Television camera tubes; image converters and intensifiers and other photo cathode tubes 
854040 Data/graphic display tubes, colour , with a phosphor dot screen pitch<0.4mm 
854050 Data/graphic display tubes, black and white or other monochrome 
854060 Cathode-ray tubes (excl. Television and video-monitors) 
854071 Magnetrons 
854072 Klystrons 
854079 Microwave tubes 
854081 Receiver or amplifier tubes 
854089 Electronic valves and tubes (e xcl. Receiver or amplifier tubes) 
854320 Signal generators, electrical 
854330 Machines and apparatus for electroplating 
854340 Electric fence energisers 
854381 Proximity cards and tags, generally consisting of an integrated circuit 
854389* Electrical machines and apparatus, having individual functions 
854420 Coaxial cabl es, antenna feeders 
854441* Telecommunications cabl es, optical cables (other elect ric conductors, voltage <80v) 
900912 Laser multifunction printers 
* These are, in part, covered by ITA. 
 
  TN/MA/W/103 
 Page 47 
 
 
 ANNEX 2 
 
TERMS AND THEIR DEFINITIONS FOR THE PURPOSE OF THIS UNDERSTANDING  
 
 For the purpose of this Understanding, the following definitions21 shall apply: 
 
 "Safety of electrical equipment" means that equipment, having been constructed in accordance with good engineering practice in safety  matters, does not endanger the safety of persons, 
domestic animals or property when properly installe d and maintained and used in applications for 
which it was made. 
 
 "Electromagnetic compatibility" means the ability of a device, unit of equipment or system to function satisfactorily in its electromagnetic environment without introducing intolerable 
electromagnetic disturbances to anything in that environment.  
 "Supplier" means any party that supplies the product and may be a manufacturer, distributor, 
importer, assembler, etc., as defined in ISO/IEC Guide 22:1996   "Conformity assessment" means the demonstration that specified requirements relating to a product, process, system, person or body are fulfille d. Conformity assessment can be performed as a 
first-party, second-party or third-party activity a nd covers activities such as testing, inspection and 
certification. [Why is the definition different from Annex 1, para 3 of the TBT?] 
  "Test laboratory" means a conformity assessment body that performs testing services and which has received attestation conveying formal de monstration of its competence to carry out these 
specific tasks.  
 
 "Designation" means governmental authorisation of a conformity assessment body or test laboratory to perform specified conformity assessment activities.   "International accreditation system": IL AC, International Laboratory Accreditation 
Cooperation, and IAF, Intern ational Accreditation Forum. 
 
 "International accreditation scheme": ILAC In ternational Mutual Recognition Agreements 
and IAF Multilateral Rec ognition Arrangement (MLA) 
   "Interested party" means any legal or natural person affected by the policy, those who will be 
involved in implementation of the policy, and bodies that have stated objectives giving them a direct 
interest in the policy. 
                                                     
 
21 Based on ISO/IEC 17000:2004 TN/MA/W/103 
Page 48  
 
  VI. REVISED SUBMISSION ON EXPORT TAXES
22 
A. INTRODUCTION  
 1. All import-dependent WTO Members are sensitive to the measures imposed by a few countries that restrict exports. In the extreme case, export taxes may be set at prohibitive levels and, 
hence, be tantamount to export restrictions or ev en export prohibitions. Expor t taxes can thus have 
serious distortive effects on global commodity trad e when applied by major suppliers. In addition, 
when used for industrial or trade policy purposes, e xport taxes can serve as indirect subsidization of 
processing industries and influence international trad ing conditions of these goods. As in the case of 
import tariffs, export taxes have similar effect to ta riff escalation. Thereby, the measures may obstruct 
the aspirations of WTO Members, in particular deve loping countries, to build new (infant) processing 
industries in specific sectors where export taxes by  other countries are prevalent on the raw materials 
or other inputs (as illustrated by the Joint Statement by the leather associations of West Africa and the 
EU previously submitted by the EC to the NGMA). Furthermore, export taxes can serve to displace 
imports on the market of the country imposing th e taxes, both for imported goods in direct 
competition with the taxed products and for impor ted processing products. In such cases, export taxes 
are similar other forms of NTBs on imports.  2. These various negative effects of export tax es are not new. But among the reasons for the 
growing importance of export taxes today are inter alia : 
 
• the recent proliferation in the use of these inst ruments, which is possible under the weaker 
WTO rules on export taxes compared to those on import restrictions or other forms of NTBs; and  
 
• the short global supply of some specific commodities, despite their abundance in a few 
countries – a situation that is aggravated by export taxes in key supplying countries. 
 
3. Finally, it should be underscored that the current proliferation of export taxes and their 
increased distortions to global trade are in contra diction to the developments on import barriers. 
Serious efforts are underway in DDA to reduce duti es, eliminate tariff escalation and minimise NTBs 
on import. In contrast, very little progress has so far been made on export taxes.   
A. EC
 POSITION ON EXPORT TAXES  
4. The EC proposal on export taxes in the NAMA  negotiations tabled in April 2006, and the 
subsequent legal draft tabled in March 2007, aims to fully reflect the importance of establishing balanced and proportionate WTO rules for Members’ use of export taxes. The main elements of the 
EC proposal on export taxes are threefold:  
(1) Confirmation and operationalisation of basic GATT disciplines to apply to those 
situations where WTO Members use export taxes for industrial or trade policy 
purposes with negative effects on other WTO Members and especially on developing countries. In line with core objectives of the WTO and GATT, this would prevent “beggar thy neighbour” practices. In partic ular, the approach proposed builds upon 
existing GATT rules on export duties and charges, inter alia  GATT Articles I, VII, 
VIII and XVII, as well as incorporates othe r key elements of the GATT acquis. Under 
the EC proposal, this also includes a number of legitimate situations under existing GATT rules where export taxes could be main tained or introduced, such as financial 
crises, infant industry, environment (preserva tion of natural resources) and local short 
supply.  
                                                     
 
22 Submitted by the European Communities (document TN/MA/W/101).  TN/MA/W/103 
 Page 49 
 
 
 (2) Incorporation of additional flexibility for small developing country Members and 
least-developed country Members to mainta in or introduce export taxes in other 
situations, i.e. over and beyond what would be allowed through the strict application 
of GATT rules to export taxes.  
(3) Limitation of the GATT disciplines for e xport taxes to non-agricultural products in 
recognition of the mandate for NAMA (hen ce, agricultural products are excluded 
where export taxes are currently in force in many developing countries).  
5. Thereby, the EC proposal seeks to establis h a workable compromise in the area of export 
taxes between those many countries affected by th e “beggar thy neighbour” measures adopted by a 
few major suppliers and other large economies, a nd the use of export taxes by small economies, 
which includes the majority of developing countries. Nothing in the EC proposal prejudges the use of 
export taxes for legitimate policy reasons under re levant GATT provisions. As such, it should be 
recalled that the current proposal represents a major refinement of the initial EC submission on export 
taxes in NAMA in 2003, in reflection of the cons tructive engagement by and discussions with many 
Members, not least small and vulnerable developing countries.   
 
B. POSSIBLE FURTHER REVISIONS OF THE EC PROPOSAL  
6. The EC remains ready to explore with Memb ers other approaches, whether alternative or 
complementary, for addressing the global trade problems caused by export taxes. Of course, in doing so, the EC considers that any revised proposal woul d still have to provide appropriate remedies to the 
specific problem related to the use of export tax es as “beggar thy neighbour” instruments. As for 
possible horizontal approaches to NTBs in line with paragraph 14 of the July Framework, the EC also 
believes that any negotiated solution for expor t taxes would have to build upon existing GATT 
concepts and rules. Therefore, any revised a pproach should ensure, as a minimum, increased 
transparency and predictability.  
7. Concerning transparency, it is a core objectiv e of the WTO to ensure that Members are fully 
informed of measures taken by any other Member that may influence trade. In this context, it is also 
worth recalling that all WTO Members have already agreed to notify export taxes, as well as other export measures. The Ministerial Decision on No tification Procedures adopted on 15 December 1993 
establishes that the introduction or modification of  such measures is subj ect to the notification 
undertakings of the Understanding Regarding the No tification, Consultation, Dispute Settlement and 
Surveillance adopted on 28 November 1979 (BISD 26S /210). On the other hand, the Ministerial 
Decision of 1993 has had little, if any, practical eff ect on Members’ level of transparency. Hence, the 
EC believes that future transparency provisions on  export taxes would need to ensure that existing 
obligations are made operational and enforced  in a satisfactory manner. The Uruguay Round 
Understanding on the Interpretation of Article XVII of GATT 1994, whic h pertains to the notification 
requirements of Members’ state trading enterprises that influence the level or direction of imports and 
exports, could serve as a point of reference in this  respect. Finally, the EC considers that all WTO 
Members would be able to comply with such basi c transparency commitments, in line with what 
already applies for other trade policy instrument s, although appropriate special and differential 
treatment should be envisaged for developing c ountry and least-developed country Members.    
 
8. Regarding predictability, it is a core obj ective of the WTO to en sure that Members can 
reasonably expect what measures any other Member may impose that influence trade. Therefore, EC 
considers that scheduling and binding of Members’ export taxes could offer an appropriate route of 
ensuring adequate predictability. Under such a nego tiated solution, similar to import duties, the EC 
deems that export taxes would have to be bound at a level that “reduce or eliminate tariff peaks, high 
tariffs, and tariff escalation” in line with paragra ph 16 of the DDA mandate. Moreover, in accordance 
with the spirit of the July Framework and in reco gnition that export taxes have to date only been TN/MA/W/103 
Page 50  
 
  scheduled or bound by a few Members, the EC wo uld be ready to support specific flexibilities for 
small and vulnerable economies.  9. Thereby, this revised approach would repr esent a shift from a general prohibition of export 
taxes, albeit with exceptions based on GATT rules, to the establishment of rules on transparency and 
predictability based on WTO objectives, concepts and principles. In practical terms, besides 
maintaining the right of WTO Members to apply export taxes when exceptional circumstances under 
GATT rules are invoked, the approach would imply that:  
(1) WTO Members should notify the introduction or modification of export taxes; 
(2) WTO Members should undertake to sch edule export taxes on non-agricultural 
products in their Schedules of Concessions a nd bind the export taxes at a level to be 
negotiated, except that: 
(a) Least-developed countries would undertake to schedule export taxes but may 
maintain these export taxes unbound; and 
(b) Paragraph 6 countries would schedule e xport taxes but may maintain these 
export taxes unbound for a certain number of tariff lines (the number is to be negotiated), in reflection of their specific developmental interests and 
concerns.     
C. 
CONCLUDING REMARKS  
10. Finally, the EC would like to underline that , in line with paragraph 16 of the DDA mandate, 
Members have agreed to “to reduce or as appropriate eliminate tariffs, including the reduction or 
elimination of tariff peaks, high ta riffs, and tariff escalation, as well as non-tariff barriers, in particular 
on products of export interest to developing countries”. Hence, no matter how Members may want to 
define export taxes, tariffs and non-tariff barri ers are included in the DDA mandate, which has no 
reference as to whether such measures are imposed on imports or exports. As clearly demonstrated in 
the introduction, apart from other effects including dist ortions to global trade, export taxes also often 
displace exports of other WTO members through the artificial price advantage provided to domestic 
industries. Therefore, the EC considers claims  that export taxes are a priori excluded from 
negotiations to be in contradiction with the manda te. Such claims could set a dangerous precedent for 
other mandated parts of the nego tiations on non-agricultural market access. However, the EC fully 
recognizes that Members’ positions may differ on the appropriate level of ambition and approach to 
export taxes. To respond to Members’ different inte rests and concerns, the EC is thus prepared to 
thoroughly revise its proposal following the general pa rameters set out above a nd to consult with all 
interested Members on specific legal drafting.  TN/MA/W/103 
 Page 51 
 
 
 VII. UNDERSTANDING ON THE INTERPRETATION OF  THE AGREEMENT ON 
TECHNICAL BARRIERS TO TRADE WITH RESPECT TO THE LABELLING OF TEXTILES, CLOTHING, FOOTWEAR, AND TRAVEL GOODS
23 
Members, 
 
 Recalling  that pursuant to paragraph 16 of the Doha  Ministerial Declaration, Members agreed 
to negotiations aimed at reducing or, as appropria te, eliminating tariffs and non-tariff barriers on 
non-agricultural products;   Recognizing  the important contribution of the textile, clothing, footwear, and travel goods 
sectors to global economic growth and development; 
 
Desiring  to promote cooperative and effective a pproaches to address unnecessary obstacles to 
international trade and enhance trade in tex tiles, clothing, footwear, and travel goods; 
 
Taking into account  that labelling has an important f unction of informing consumers of 
certain characteristics of textiles, clothing, footwear, and travel goods; 
 
Reaffirming  their existing obligation under the Agre ement on Technical Barriers to Trade 
(TBT Agreement) to ensure that technical regula tions and conformity assessment procedures are not 
prepared, adopted, or applied with a view to or  with the effect of creating unnecessary obstacles to 
international trade;   
 Desiring  to interpret the provisions of the TB T Agreement as they apply to labelling 
requirements for textiles, clothing, footwear, and travel goods; 
 
 Hereby agree  as follows: 
 
Scope 
 
1. This Understanding applies to  the labelling of products specified in the Annex to this 
Understanding.  
 
Labelling 
 
2. If a Member requires information on a label, a Member’s requirement to include any of the 
following information shall be rebuttably presumed to  be not more trade-restrictive than necessary 
under Articles 2.2 and 2.5 of the TBT Agreement: 
 
2.1 with respect to textiles and clothing, fiber content, country of origin, and care 
instructions24;  
2.2 with respect to footwear, predominant materials of core parts25 and country of origin;  
and 
 
2.3 with respect to travel goods, fiber content and country of origin. 
 
                                                      
23 Submitted by the European Communities and the United States (document TN/MA/W/93). 
  24 This presumption covers requirements using relevant international standards, or the relevant parts of 
such standards, as a basis for the Me mber’s technical regulations regarding care instructions on labels.    
25  There are three “core parts” of footwear: (1 ) upper, (2) lining and sock, and (3) outer sole. TN/MA/W/103 
Page 52  
 
  A Member may only require additional information on a label when it is not inconsistent with 
Article 2.2 of the TBT Agreement. 
 
3. Members shall give positive consideration to permitting any require d information to be 
included on a non-permanent
26 label rather than a permanent label.27   
 
4. A technical regulation of a Member that:  
 
4.1 prohibits the information included on a la bel from being in more than one language, 
for example by prohibiting such information from being in a language other than the 
Member’s official language(s);  
 
4.2 requires a label to be pre-approved, registered or certified;  
 
4.3 prohibits a label from including information that is not required by the Member, such 
as brand names;28 or 
 
4.4 specifies requirements that a label be of one or more materials;  
  
shall be rebuttably presumed to be more trade-rest rictive than necessary to fu lfil a legitimate objective 
within the meaning of Article 2.2 of the TBT Agreement.   
 
5. Notwithstanding Articles 2.9 and 5.6 of the TBT Agreement, if a Member proposes to adopt 
or amend a technical regulation or conformity asse ssment procedure with respect to labelling, in 
whole or in part, it shall:  
 
 5.1 publish the proposed technical regulati on or conformity assessment procedure in a 
publication at the earliest appropriate stage, in such a manner as to enable interested 
persons in other Members to become ac quainted with it and to submit comments 
before the Member finalizes the technical regulation or conformity assessment procedure; 
 
 5.2 notify other Members through the Secretar iat of the products to be covered by the 
proposed technical regulation or conformity  assessment procedure, together with a 
brief indication of the measure’s objective a nd rationale and an identification of the 
parts of the regulation or procedure wh ich in substance deviate from relevant 
international standards and, in the case of a permanent label, the reason for requiring 
information other than that covered by pa ragraphs 2.1-2.3 of this Understanding.  
Such notifications shall take place at an early appropriate stage, when amendments 
can still be introduced and comments taken into account;  
 
                                                     
 
 26 "Non-permanent label" means any label on a product attached or affixed through stickers, hangtags, 
or through other similar means that can be removed or on the package of the product. 
 27 "Permanent label" means any label on a product that is securely attached or affixed through gluing, 
printing, sewing, embossing, silk screening, or other similar means.  
28 “Information” for purposes of subparagraph 4.3 means information related to the product or the 
marketing of the product and does not include information that is false, deceptive or misleading.   TN/MA/W/103 
 Page 53 
 
 
 5.3 allow no less than 60 days for Members to submit comments in writing.  The Member 
shall give favourable consideration to reasonable requests to extend the comment period; and 
 5.4 discuss these comments upon request with the Member or interested person providing 
them, and take these written comments and the results of these discussions into 
account in finalizing the measure, and publis h or otherwise make available to the 
public, either in print or electronically , its responses to significant comments it 
receives no later than the date it publishes th e final technical regulation or conformity 
assessment procedure.   
 
6. Notwithstanding Articles 2.10 and 5.7 of the TBT Agreement, where urgent problems of safety, health, environmental protection or national security arise or threaten to arise for a Member, 
that Member may omit such of the steps enumerated in paragraph 5 as it finds necessary, provided that the Member upon adoption of a technical re gulation or conformity assessment procedure shall: 
 
6.1  publish the final technical regulation or conformity assessment procedure in a 
publication at the earliest appropriate time, in  such a manner as to enable interested 
persons in other Members to become acquainted with it; 
 6.2  notify other Members through the Secretar iat of the products to be covered by the 
final technical regulation or conformity assessment procedure, together with a brief 
indication of the measure’s objective and rati onale, including the nature of the urgent 
problems, and an identification of the part s of the regulation or procedure which in 
substance deviate from relevant international standards. 
 
6.3  allow interested persons and other Members to submit comments in writing and 
discuss these comments upon request with the Member or interested person providing them, and take these written comments and the results of these discussions into account in deciding whether to modify the regulation or procedure, and publish or otherwise make available to the public, either  in print or electronically, its responses 
to significant comments it receives at the earliest appropriate date after it publishes 
the final technical regulation or conformity assessment procedure. 
 
Final Provisions 
 
7. The Committee on Technical Barriers to Trade shall review the operation and implementation 
of this Understanding, including the list of products contained in the Annex, on an annual basis.  The 
Committee shall also review other developments in  technical regulations and conformity assessment 
procedures involving international trade in textiles, clothing, footwear, and tr avel goods of importance 
to this Understanding in accordance with the Committee’s procedures.
29   
 
8. The Annex to this Understanding c onstitutes an integral part thereof. 
                                                      
 29 It is understood that, for this purpose and to facilitate transparency, exchanges of information, and 
discussions among Members, the WTO Secretariat will prepar e an annual report of the notifications received by 
the WTO Secretariat with respect to the labelling of textiles, clothing, footwear, and travel goods.  TN/MA/W/103 
Page 54  
 
  ANNEX 
 
TEXTILES, CLOTHING, FOOTWEAR AND  
TRAVEL GOODS SUBJECT TO THE UNDERSTANDING   
 
1.  With respect to textiles and clothing, this Understanding shall cover a ll products contained in 
the Annex to the former WTO Agreement on Textiles and Clothing. 
 
2.  With respect to footwear, this Understandi ng shall cover all products contained in Chapter 64 
of Harmonized Commodity Description and Coding System (HS) Nomenclature, except for HS6406 
(Footwear Parts).  
 
3.   With respect to travel goods, this Unders tanding shall cover all prod ucts listed below:   
 HS Number
 Product Description  
 
ex 3926.90 Handbags made of beads, bugles and spangles, of plastics  42.02    Trunks, suit-cases, vanity-cases, ex ecutive-cases, brief-cases, school satchels, 
spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, 
holsters and similar containers; travelling- bags, insulated food or beverage bags, 
toilet bags, rucksacks, handbags, shoppi ng bags, wallets, purses, map-cases, 
cigarette-cases, tobacco-pouches, tool ba gs, sports bags, bottle-cases, jewellery 
boxes, powder-boxes, cutlery cases and similar containers, of leather or of composition leather, of sheeting of plastics, of textile materials, of vulcanized fiber or of paperboard, or wholly or mainly cove red with such materials or with paper. 
 
- Trunks, suit-cases, vanity-cases, executiv e-cases, brief-cases, school satchels and 
similar containers: 
 4202.11  With outer surface of leather, of composition leather, or of patent leather 4202.12  With outer surface of plastics or of textile materials 
4202.19  Other  
- Handbags, whether or not with shoulder strap, including those without handle: 
4202.21  With outer surface of leather, of composition leather or of patent leather 4202.22  With outer surface of sheeting of plastic or of textile materials 4202.29  Other 
- Articles of a kind normally carried in the pocket or in the handbag: 
4202.31  With outer surface of leather, of composition leather or of patent leather 4202.32  With outer surface of sheeting of plastic or of textile materials 4202.39  Other 
- Other: 
4202.91  With outer surface of leather, of composition leather or of patent leather 
4202.92  With outer surface of sheeting of plastic or of textile materials 
4202.99  Other ex 4602.11 Luggage, handbags and flat goo ds, whether or not lined, of bamboo  
ex 4602.12 Articles of a kind normally carried in  the pocket or in the handbag, of rattan  
ex 4602.12 Luggage, handbags and flat goods, whether or not lined, of rattan, nesoi  
ex 4602.19 Luggage, handbags and flat goods, whether or not lined, of willow   
ex 4602.19 Articles of a kind normally carried in the pocket or in the handbag, of palm leaf 
ex 4602.19 Luggage, handbags and flat goods, wh ether or not lined, of palm leaf, nesoi  
  TN/MA/W/103 
 Page 55 
 
 
 ex 4602.19 Luggage, handba gs and flat goods, whether or not lined, made from plaiting materials 
nesoi  
9605.0              Travel sets for personal toilet, sewing or shoe or clothes cleaning 
 TN/MA/W/103 
Page 56  
 
  VIII.  AGREEMENT ON INCREASED TRANSPARENCY ON EXPORT RESTRICTIONS
30 
 
Members,   
Taking into account the ongoing activities perform ed at the Trade Facilitation groups 
relating to areas covered under this Agreement; 
 
Recognizing the usefulness of export restrictions for certain purposes, including, but not 
limited to, the conservation of natural resources and the protection of the environment, and that such 
restrictions should not be used to restrict trade or used in any manner contrary to the principles and 
obligations of GATT 1994; 
 Taking into account the particular trade, deve lopment and financial needs of developing 
country Members in the context of such export restrictions; 
 
Desiring to bring transparency to the administrative procedures and practices used in 
international trade, where they relate to export r estrictions, and to ensure the fair and equitable 
application and administration of such procedures and practices, while taking into account the special 
concerns of Members in operating this Agreement arising from their particular systems of government. 
 
Hereby agree as follows:  
Article 1:  Definition of Export Restrictions
 
 
 For the purpose of this Agreement, export restrictions are defined as administrative 
procedures used for the operation of export rest riction regimes requiring the submission of an 
application or other documentation (other than th at required for customs purposes) to the relevant 
administrative body as a prior condition for exportation from the customs territory of the exporting Member.   
Article 2:  General Provisions
 
 
1. Members shall ensure that th e administrative procedures used to implement export restriction 
regimes are in conformity with the relevant provisions of GATT 1994 including its annexes and 
protocols, with a view to preventing trade distorti ons that may arise from an inappropriate operation 
of those procedures, taking into account the econo mic development purposes and financial and trade 
needs of developing country Members.31 
 2. With regard to general and security excepti ons, the provisions of Articles XX and XXI of 
GATT 1994 apply.   3. The provisions of this Agreement shall not  require any Member to disclose confidential 
information which would impede law enforcement or ot herwise be contrary to the public interest or 
would prejudice the legitimate commercial interests of particular enterprises, public or private.  
 
  
                                                     
 
30 Submitted by Japan (document JOB(07)/141/Rev.1) 
31 Nothing in this Agreement shall be taken as implying that the basis, scope or duration of a measure 
being implemented by a licensing procedure is subject to question under this Agreement.  TN/MA/W/103 
 Page 57 
 
 
 Article 3:  Notification  
 
1. Members which institute export restriction procedures or changes in these procedures shall 
notify the [Council for Trade in Goods] (referred to  in this Agreement as "the Council") of such 
within 60 days of after the entry into force of this Agreement or introduction of such export 
restriction, whichever is later.  
 2. Notifications of the institution of export r estriction procedures or changes therein shall 
include the following information:   
(a) list of products subject to restriction procedures; 
(b) procedures for the submission of applicati ons, including the eligibility of persons, firms 
and institutions to make such applications;  
(c) contact point for information on eligibility; (d) administrative body(ies) for submission of applications; 
(e) date and name of publication where restriction procedures are published; 
(f) indication of the measure being implem ented through the restriction procedure; 
(g) expected duration of the restriction pro cedure if this can be estimated with some 
probability, and if not, reason why th is information cannot be provided; 
(h) when Members administer export restricti ons by means of quotas, the overall amount 
of quotas to be applied by quantity and/or value and the opening and closing dates of 
quotas; and 
(i) when Members provide the possibility for persons, firms or institutions to request 
exceptions or derogations from an export rest riction requirement, information regarding 
this possibility, as well as information on how to  make such a request and, to the extent 
possible, an indication of the circumstances under which requests would be considered.  
 
 For the avoidance of doubt, the foregoing notification itself shall be without prejudice to views on the consistency of measures with or th eir relevance to rights and obligations under GATT 
1994.  3. Any interested Member which considers that  another Member has not notified the institution 
of an export restriction procedure or changes therein in accordance with the provisions of 
paragraphs 1 and 2 may bring the matter to the atte ntion of such another Member.  If notification is 
not made promptly thereafter, such Member may itself notify the export restriction procedure or 
changes therein, including all relevant and available information.  
Article 4:  Requests for Information
 
 
 Members shall provide, upon the request of any Me mber having an interest in the trade in the 
product concerned, all releva nt information concerning: 
 (i) the administration of the restrictions, including, at a minimum, the information listed in 
Paragraph 2 of Article 3; 
(ii) the export licences granted over a recent period; 
(iii) the distribution of such licences among importing  countries, including the shares in the 
quota currently allocated; 
(iv) where practicable, recently available stat istics (i.e. value and/or volume) on the amount 
expected to be produced, actually produced, a nd actually exported with respect to the 
products subject to export restrictions.  Developing country Members would not be 
expected to take additional administrative or financial burdens on this account such as 
to set up new statistics only for this purpose; and TN/MA/W/103 
Page 58  
 
  (v)   if any, measures taken in conjunction with  export restrictions, such as restrictions on 
domestic production or consumption, or  governmental stabilization plans.  
Article 5:  Facilitation of Solutions to Problems
 
  Any interested Member which experiences any difficulty in relation to export restriction 
procedures taken by another Member in connection w ith any of the provisions of this Agreement may 
bring the matter to the attention of such other Member.  The Council shall undertake consideration 
expeditiously of this case and search for a creativ e and pragmatic solution to such case with the 
cooperation of the Members concerned.  
Article 6:  Review
 
 
1. The Council shall review as necessary, but at least once every two years, the implementation 
and operation of this Agreement, taking into account the objectives thereof, and the rights and 
obligations contained therein.  
2. The Council shall establish and maintain a regi stry of notifications for export restriction 
measures. The registry shall record and make availa ble to public through the internet the information 
notified by Members under this Agreement.
32 
                                                      
32 The URL (Uniform Resource Locater) of the official internet site where relevant information of such 
measure is sufficiently available may be recorded alterna tively, but this is without prejudice to the notification 
obligation under the Article 3.  TN/MA/W/103 
 Page 59 
 
 
 IX. DECISION ON NON TARIFF BARRIERS AFFECTING FORESTRY PRODUCTS 
USED IN BUILDING CONSTRUCTION 33 
 
 Recalling  the requirements in the Agreement on Tec hnical Barriers to Trade that standards 
and technical regulations should, where appropriate, be based on international standards and be 
performance-based rather than prescriptive, facilitate international harmonisation and improve 
transparency of standards;    Recognising  that voluntary prescriptive standards can ha ve a facilitative role in building codes 
when they are cited as one method of conf ormance with overarching performance-based 
requirements. 
  Desiring  to contribute towards the development of  safe and affordable dwellings in WTO 
Member economies;  
 Recognising Members’ rights and obligations under the TBT Agreement; 
  Recognising  the important, sustainable, environmentally beneficial, and low cost role that 
timber building construction does play and could pl ay in Member economies and the importance to 
such economies of free and open trade in component materials;  
 Recognising  that differences in, and proliferation of, domestic standards and technical 
regulations, can lead to market segmentation and unintentional barriers to trade;   Recognising  the leading role that International St andardisation Organisation (ISO) technical 
committees play in the development of performance -based international timber, timber product, and 
timber building construction standards; 
  Recognising  mutual recognition arrangements alread y in place, and wishing to strengthen 
their status;   Recognising  the trade benefits that wider Intern ational Laboratory Accreditation Cooperation 
(ILAC) and International Accreditation Fo rum (IAF) membership would provide; 
  Members decide:  
• To recognise, among the appropriate intern ational standard setting bodies developing 
performance-based standards in respect of the forest products sector,, ISO Technical 
Committees [TC 89, 165, 218] as [leading] bodi es developing international performance-
based standards for timber, timber products and timber building construction as they relate to 
building codes. 
• To give primary consideration to adoption of  standards developed by these committees when 
upgrading or replacing existing regulations that make use of domestic timber, timber product 
and timber building construction standards and related tests; 
• To increase the resources available to tho se committees through participation pursuant to 
Article 2.6 of the Agreement on Technical Barrier s to Trade in order to accelerate work on the 
development of new standards and the enhancement of existing ones; 
• The Committee on Technical Barriers to Tr ade (TBT) will invite the aforementioned 
technical committees to consult with it on at least an annual basis.  The purpose of those 
                                                     
 
33 Submitted by New Zealand (document JOB(07)/158). TN/MA/W/103 
Page 60  
 
  consultations will be to identify and progress wa ys to work together towards accelerating the 
adoption of performance-based timber, timber product and timber building construction 
standards in Member economies.   
• Timber products tested and certified by an y facility accredited by a signatory to an 
International Laboratory Accreditation Coopera tion (ILAC) mutual recognition arrangement, 
or certified by a signatory to an Intern ational Accreditation Forum (IAF) multilateral 
arrangement shall be accorded no less favourable  treatment than products tested or certified 
by facilities accredited by the domestic a ccreditation agency of any WTO Member.  
• To promote acceleration of wider ILAC and IAF membership as a way of ensuring universal 
mutual recognition of accreditation agencies. 
• To establish a list of internationally accepte d test and certification methods for timber 
products where these are used in relation to build ing codes. This list will be developed by an 
internationally recognised group of timber expert s.  Members will nominate experts including 
members of the aforementioned technical committees, for participation in this group. The list 
of internationally accepted test and certificati on methods will be available via Members’ TBT 
enquiry points.  The list shall be updated by  the designated expert group based on biannual 
notifications from WTO Members of additional internationally accepted test and certification 
methods for timber products proposed for inclusion in the list.  The timber products tested 
using the methods identified on the list will be accepted for use in building construction 
without the need for further testing by the importing country.  TN/MA/W/103 
 Page 61 
 
 
 X. MINISTERIAL DECISION ON TRADE IN REMANUFACTURED GOODS34 
Members ,  
  Recalling  that pursuant to paragraph 16 of the Doha  Ministerial Declaration, Members agreed 
to negotiations aimed at reducing or as appropriate eliminating ta riffs and non-tariff barriers on non-
agricultural products;   
 
Recognizing  the objectives of protecting and preserving the environment, promoting 
sustainable development by preventing unnecessary w aste and conserving energy and raw materials, 
raising standards of living, and expanding  the production of and trade in goods; 
 
Noting  the development of remanufacturing as an important new field in manufacturing; 
 
Considering  the benefits to the environment and to consumers of the production of and trade 
in remanufactured goods; 
 
Recognizing  that remanufacturing takes place in deve loped and developing countries alike, 
creating jobs and facilitating economic growth;   Desiring  to enhance opportunities for trade in remanufactured products by reducing or, as 
appropriate, eliminating non-tariff barriers in respect of those goods;   
 
 Mindful  of Members’ right to adopt measures for the protection of human, animal or plant life 
or health, or of the environment, consistent with the WTO Agreement; 
  Decide as follows: 
 
24. Each Member’s trade regime should evolve in a manner that enhances market access 
opportunities for remanufactured goods.
35 
25. Members should review their non-tariff measures with a view to ensuring that they do not 
impose prohibitions or restrictions on the importati on of remanufactured goods that are proscribed by 
the Multilateral Agreements on Trade in Goods. 
26. Members shall meet every six months  under the auspices of the Council on Trade in Goods to 
discuss  Members’ progress in reducing or, as appropriate, eliminating non-tariff barriers in respect of 
remanufactured goods.  The discussions shall be c onducted using procedures that take fully into 
account the special needs and interests of developi ng and least-developed country participants.   
27. Members shall afford sympathetic considerati on to any request for consultation from other 
Members concerning their non-tariff measures aff ecting remanufactured goods.  Such consultations 
shall be without prejudice to a Member’s rights and obligations under the WTO Agreement.  
28. For purposes of this Decision, remanufactured good  means  [a non-agricultural good that (1) 
is entirely or partially comprised of parts (i) th at have been obtained from the disassembly of used 
goods; and (ii) that have been processed, cleaned, inspect ed, or tested to the ex tent necessary to ensure 
they are in original working c ondition; and (2) has a warranty.] 
[NB:  Definition subject to further discussion.]   
__________  
                                                      
34 Submitted by the United States (document TN/MA/W/18/Add.16/Rev.1) 
35 This paragraph does not require a Member to reduce or eliminate tariffs on remanufactured goods.