06-3154  JOB(06)/199/Corr.1  29 June 2006  
 
Committee on Agriculture 
Special Session 
 
DRAFT POSSIBLE MODALITIES ON AGRICULTURE 
Corrigendum  
 
 
 
Cover letter, second page, first paragraph is replaced by the following: 
 
 A Chair's responsibilities also involve the responsib ility, consistent with that duty of honesty 
and fairness, to call things as they are seen in an e ffort to move the process forward.  In my Reference 
Papers and, indeed, thr ough more informal processes, I provided some commentary of my own which 
was aimed at suggesting where I thought particular ef forts could and should be made.  I stand by those 
various comments, but I do not think it is appropria te now to elaborate further any such personal 
views.  They are on the record, and they served a purpose at the time – which was to try to promote 
convergence.  But we are beyond that point now.  Having made my own comments, positions of 
Members are what they are.  The task here and now is  above all to reflect that as fairly and honestly as 
possible.  At this crucial point in the negotiations it is more than ever important to confront the issues 
squarely as they are without distraction or intrusion. 
Subparagraphs 10(a) and (b) are replaced by the following: 
 
(a) Subject to the provisions set out in (b) below, expansion of the tariff quota for a 
Sensitive Product shall be on a most-favoured-nation basis.   
[Bound tariff quotas shall be increased based on a minimum of [6] per cent of 
domestic consumption or, for developing count ry Members, less than [4] per cent of 
domestic consumption.  For developing country Members, domestic consumption 
shall not include self-consumption of subs istence production.  Developing country 
Members with bound quotas es tablished as a result of Article XXVIII negotiations or 
accession commitments shall be able to u se as a base for tariff quota expansion the 
lesser of the bound tariff quota so established or less than [4] per cent of domestic consumption.  The formula for expansion shall be as follows:  [ ] ]  
 [Bound tariff quotas shall be increased by the following formula 
∆Q = 100*(0.45 – 0.5*(1-(r f  - rs)/ rf )) 
Where 
∆Q is the expansion in the tariff quota expr essed as a percentage of current bound 
tariff quota; 
rf  is the reduction in bound duty under the tiered formula; 
rs is the reduction in bound duty for the sensitive product; and  
the maximum deviation from the tiered formula as measured by (r f  - rs)/ rf shall be 
[80] per cent and the minimum deviation [20] per cent. 
 
 
] JOB(06)/199/Corr.1 
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  [Bound tariff quotas shall be increased by the following formula 
∆Q = [∆Qb] + (T 1s – T 1n)*[S] 
Where  
∆Q is the expansion in the tariff quota expressed as a percentage of domestic 
consumption; 
∆Qb is the base expansion of the tariff quota expressed as a percentage of 
domestic consumption; 
T1s is the bound duty to be applied to the sensitive product;  
T1n  is the bound duty as calculated under the tiered formula; 
S is the Slope. 
] 
[Bound tariff quotas shall be increased by the following formula 
∆Q = [0.8] *  (r f  - rs) * 100 / (1 + t 0) 
Where  
∆Q is the expansion in the tariff quota expressed as a percentage of current 
imports; 
rf  is the reduction in bound duty under the tiered formula; 
rs is the reduction in bound duty for the sensitive product; and  
t0 is the current bound duty or its ad valorem  equivalent. 
 
] 
(b) In cases where: 
(i) [the existing bound tariff quota represents: 
-  more than [30] per cent of domes tic consumption the expansion in 
the tariff quota under (a) above shall be adjusted by a factor of [0.2]]; 
- more than [10] per cent but less than or equal to [30] per cent of 
domestic consumption the tariff quota under (a) above shall be 
adjusted by a factor of [0.33];  
- more than [5] per cent but less than or equal to [10] per cent of 
domestic consumption the tariff quota under (a) above shall be 
adjusted by a factor of [1];  
- more than [2.5] per cent but less th an or equal to [5] per cent of 
domestic consumption the tariff quota under (a) above shall be 
adjusted by a factor of [2];  
- less than or equal to [2.5] per cent of domestic consumption the tariff 
quota under (a) above shall be adjusted by a factor of [3]; 
- an exceptionally high percentage of domestic consumption the 
additional tariff quota commitment will be adjusted further in Schedules negotiations in an equitable manner.]  JOB(06)/199/Corr.1 
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  (ii) [current imports] [the existing bound tariff quota] represent[s] less than [ ] 
per cent of domestic consumption, the expansion in the tariff quota under (a) 
above shall be adjusted by [ ]]; 
(iii) there is no existing final bound ta riff quota commitment for a Sensitive 
Product the Member concerned [may choo se to] [shall not] create a new tariff 
quota, [provided that the tariff cut for the Sensitive Product shall be achieved 
in a shorter implementation period.  Alternatively, a Member may opt for a longer implementation period for the full tariff cut required by the tiered 
formula.]  [Developing country Members shall have the right to apply a lower reduction in bound duties than would ot herwise have been required under the 
tiered formula over the implementation period, or a reduction in bound duties 
of up to [55] per cent of that require d by the tiered formula over a shorter 
implementation period, or the reduction required by the tiered formula over a 
longer implementation period or [ ]]. 
Paragraph 11 is replaced by the following: 
 11. [Should, after application of the tiered formula for tariff reductions, the bound duty on a 
processed agricultural product be greater than the bound duty on the primary product, the bound duty 
for the processed agriculture product shall be reduced by applying a factor of [1.3] compared to the 
reduction which would otherwise have been required under the tiered formula or by reducing to the 
rate applicable to the unprocessed  product, whichever is the lesser. 
Paragraph 29 is replaced by the following: 
 
29. Each developing [and least-developed] country  Member [shall have access to a Special 
Safeguard Mechanism for all agricultu ral products] [shall have the right to  designate up to [ ] [per cent 
of] tariff lines [at the HS 6-digit level] as "SSM" in column [ ] in Part I, Section I of its Schedule] 
[may designate as "SSM" in its Schedule those products which have unde rtaken tariff reductions 
greater than [ ] per cent [which result in a reducti on in the bound duty to less than then current applied 
duty] ].  [Products designated as "Special Products" may not be designated as "SSM".]  
Paragraph 39 is replaced by the following: 
39. [Recently acceded Members may reduce bound duties by [ ] per cent of the reduction that 
would otherwise have been required by tiered fo rmula] [and bound duties below [10] per cent in a 
[developing] recently acceded Member shall be exempt from reduction].  
Paragraph 42 is replaced by the following: 
42. Least-developed country Members shall ha ve full access to all special and differential 
treatment provision and shall not be requ ired to undertake reduction commitments. 
As an alternative to paragraph 43 the following should be inserted: 
[By the time Members submit their comprehens ive draft schedules of concessions, developed-
country Members shall, and developing-country  Members declaring themselves in a position 
to do so should: 
- inform the WTO of the products that are currently covered under duty free and quota 
free market access for LDCs;  
- notify the internal procedures by which they will implement the Decision; and JOB(06)/199/Corr.1 
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  - provide an indication of the possible time frame within which they intend to fully 
implement the Decision as agreed.] 
Paragraph 46 is replaced by the following: 
46. [Developed country Members [shall] [should]  grant duty- and quota-free access for cotton 
exports from [least-developed] [developing] c ountry Members from the commencement of the 
implementation period.] 
Paragraph 47 is replaced with the following: 
47. Members with economies that, in the period [1999] to [2004], had an average share of 
[(a) world merchandise trade of no more than [0.16]  per cent,] [(b) world trade in non-agricultural 
products of no more than [0.10] per cent] [and] [( c) world trade in agricultural products of no more 
than [0.40] per cent] shall have the right to re duce bound duties by [ ] less than those that would 
otherwise have been required under paragraph 4 above.   
Paragraph 59 is replaced by the following: 
59. [In cases where a product-specific AMS during the base period was below the de minimis  
level the Current AMS for such products shall not exceed [the de minimis  level] [[ ] per cent of the 
value of production of that product] and the limit fo r such products shall be denoted accordingly in the 
Schedule.] [In cases where product specific AMS exceeded de minimis  after the base period the 
product specific limit shall not exceed [ ].] 
Paragraph 67 is replaced by the following: 
67. The maximum permitted value of  support under Article 6.5 shall not exceed [2.5] per cent of 
the average total value of agricu ltural production during the base period.  This limit will [apply from 
the commencement of the implementation period] [be reduced to [ ] per cent in accordance with the 
following schedule [ ]] [be phased in, starting from 5 per cent of the value of  production in the first year of implementation, according to the following schedule [ ] ]. 
Paragraph 105 is replaced by the following: 
105. [The disciplines set out in Annex I, shall apply from the first day of the implementation 
period of the Doha Round for developed country Members [and from [ ] for developing country 
Members] [.] [and the maximum repayment term of  180 days shall be phased in according to the 
following schedule [ ].] 
Paragraph 111 is replaced by the following: 
111. [In-kind food aid [provided in situations other than those defined in paragraphs 2.4 and 2.6 of 
Annex K] shall be [phased out by the end of 2013  for developed country Members and by end [ ] for 
developing country Members] [in accordance with the following timetable [ ]] [in parallel with the 
elimination of export subsidies].] 
Paragraph 112 is replaced by the following: 
112. [The monetisation of in-kind food aid shall be phased out by the end of 2013 for developed 
country Members and by end [ ] for developing country Members [in accordance with the following 
timetable [ ]] [in parallel with the elimination of ex port subsidies] [.] [except where it is necessary to  JOB(06)/199/Corr.1 
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  fund activities that are directly related to the de livery of food aid to the recipient or for the 
procurement of agricultural inputs.] 
Paragraph 1 of Annex L is replaced by the following:  
1. [In order to strengthen the existing discip lines on export prohibitions and restrictions of 
Article XI of GATT 1994, Article 12 of the Agreemen t on Agriculture shall be modified to include 
the following elements: 
The addition of a new paragraph to Annex M which would read as follows: 
[4. Technical and financial assistance shall be provided to commodity dependant exporting 
countries to assist them in the diversification a nd periodic review of developments in the world 
commodity markets and their impact on their economies.] 
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