WORLD TRADE  
ORGANIZATION  TN/AG/GEN/29 
10 February 2009 
 
 (09-643) 
Committee on Agriculture 
Special Session Original:   English 
 
 
 
G-33 PROPOSAL ON THE TREATMENT OF SSM PROVIDED TO THE SVES  
 
  The following communication, dated 6 February 20 09, is being circulated at the request of the 
G-33.  
 
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  TN/AG/GEN/29 
Page 2  
 
  No.  213/WTO/II/09 
 Geneva, 6 February 2009 
 Dear Ambassador Falconer,  
Let me begin by reiterating that the G-33 acknowledges and appreciates your persistent 
efforts in steering the process of Agriculture negot iations which, as it should be, continues to be 
driven by substance.  We reassure you that th e G-33, as in the past, will remain constructive and 
cooperate with you in finding a balanced and fair solution to the outstanding issues in the modalities. 
 
 This communication from the G-33 seeks to respond to the question raised by you in 
paragraph 5(b) of the document TN /AG/W/7 regarding the status of the SVEs and whether a general 
solution for all developing countries will be applicable to the SVEs as well. 
  It may be recalled that the discussion so fa r has focused on finding a general solution for 
developing countries on the understanding that any sp ecific treatment for SVEs would emanate from 
the general solution for the developing countries.  Ho wever, with the general solution for developing 
countries not yet in sight and in view of the question raised by you regarding SVEs, the Group had an in-depth discussion on the matter and has reached th e conclusion that the SSM for SVEs must be 
suitable to their particular circumstances.  The Group concluded that gene ralizing the SSM treatment 
in any manner would be disadvantageous to th e SVEs and incompatible with their level of 
development. 
 
In pursuance of the mandate in Paragraph 35 of the Doha Ministerial Declaration and in order 
to address paragraph 5(b) of the document TN/AG/ W/7, the G-33, without prejudice to its positions 
on the general solution for other developing count ries, submits the attached proposal for your 
consideration. 
  As you would notice, there are just (3) three el ements which are specific to the SVEs.  First, 
the triggers in paragraph 133 bis in the document are lower than what you have proposed for 
developing countries in your draft modalities;  second, the maximum incr ease over the pre-Doha 
bound tariffs for SVEs could be 75 per cent of  the current bound tariff or 75 percentage points 
whichever is higher;  and third, the maximum numb er of tariff lines that could go beyond the pre-
Doha bound levels is 30 per cent.  
All other elements in this proposal viz those pertaining to price-based SSM, data availability 
or mandatory cross check, among others, are exis ting G-33 positions for all developing countries 
including SVEs and have previously been reflect ed in the 2 December 2008 G-33 letter to you as well 
as in the 27 July 2008 Joint Statement by the G-33, African Group, ACP and SVEs. 
 I thank you for your kind atte ntion and continued cooperation.  Please accept the assurances 
of my highest consideration. 
 
 
 Sincerely yours,   
 Erwidodo
 
 Ambassador  
 H.E. Ambassador Crawford Falconer 
Chairman, Committee on Agriculture in Special Session  TN/AG/GEN/29 
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  1. The G-33 takes note of documents TN/AG/ W/4/Rev.4 and TN/AG/W/7 prepared by 
Chairman Falconer.  The G-33 acknowledges the efforts of the Chairman to find balanced solutions in 
the Agriculture negotiations and would like to express concern, particularly with regard to the issues 
raised in paragraph 5(b) of the document TN/AG/W/7 on SSM. 
2. The G-33 reiterates that the SSM must be a mechanism which is suitable for the particular 
circumstances of their Members and each Members a nd that limiting the SSM, a priori, as is the intent 
of some of the proposed modalities, is disadvant ageous for its small vulnerable economies (SVEs) 
members and incompatible with our level of development. 
3. The G-33 recalls that since July 2008, there have not been any discussions regarding the 
specific treatment for SVEs on SSM. It was the unde rstanding of the G-33 and its SVEs members that 
emphasis would first be on finding a solution for de veloping countries before proceeding to look at 
the specific treatment for the SVEs.  The G-33 presen ts this document to emphasize the position of its 
SVEs members on various elements of the SSM.  This submission is made in pursuance of the mandate in paragraph 35 of the Doha Ministerial D eclaration to frame responses to the trade related 
issues identified for the fuller integration of the SV Es into the multilateral trading system and in order 
to address paragraph 5(b) and (c) of document TN /AG/W/7 and is without prejudice to its positions 
on the general solution for other developing countries. 
4. The basis and the structure for the SSM to be  agreed should be the one in the document 
TN/AG/W/4/Rev.4. 
5. In that regard, it should include a paragraph 133 bis for the SVEs, as follows: 
133 bis 
As regards the volume-based SSM, it shall be applied on the basis of a rolling average of 
imports in the preceding three-year period for which data are available (hereafter "base imports").  On this basis, the applicable tr iggers and remedies shall be set as follows: 
 
(a) where the volume of imports during any year exceeds 110 per cent but does not 
exceed 115 per cent of base imports, the maximum additional duty that may be 
imposed shall not exceed 25 per cent of the current bound tariff or 25 percentage points, whichever is higher; 
(b) where the volume of imports during any year exceeds 115 per cent but does not 
exceed 120 per cent of base imports, the maximum additional duty that may be imposed shall not exceed 40 per cent of the current bound tariff or 40 percentage 
points, whichever is higher; 
(c) where the volume of imports during any year exceeds 120 per cent of base imports, 
the maximum additional duty that may be imposed shall not exceed 50 per cent of the current bound tariff or 50 percentage  points, whichever is higher. 
6. In paragraph 144, the maximum increase over the pre-Doha bound tariff should be 75 ad 
valorem  percentage points or 75 per cent of the curre nt bound tariff whichever is higher.  Also, a 
maximum of 30 per cent of tariff lines in any give n period should be allowed to go beyond the pre-
Doha bound levels.
1 
                                                      
1 Bolivia is not in a position to support these numbers at this stage and remains with the pre-July 
position of the Group. TN/AG/GEN/29 
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  7. Further, as a matter of abundant caution for the SV Es, the SVEs reiterates some of its existing 
positions which hold good for SVEs as we ll as for other developing countries. 
• The provisions in the proposed paragraph 133 bis (a) to (c) are without prejudice to Members’ 
rights to raise their applied tariffs up to  the level of their current bound tariffs. 
• The triggers and remedies in paragraph 133 will apply for both within and over the pre-Doha 
bound rates. 
• No mandatory cross check mechan ism of any kind is acceptable. 
 8. For all developing countries’ markets including SVEs and LDCs, depressed prices 
attributable to high subsidies and market imperf ections/failures can have a deleterious effect on 
domestic production and markets.  As such, the price-based mechanism is of crucial importance and a focused discussion on the modalities for the price- based mechanism, including the flexibilities for 
SVEs, is called for as soon as possible. 
9. Finally, the G-33 emphasizes that both the volum e-based SSM and price-based SSM have to 
be designed in order to address their needs in a simple  and effective manner, and that this will only be 
achievable by extending additional and substantive sp ecial and differential treatment to the group. 
 
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