WORLD TRADE  
ORGANIZATION  TN/MA/W/84 
5 April 2007 
 
 (07-1424) 
Negotiating Group on Market Access Original:   English 
  
 
MARKET ACCESS FOR NON-AGRICULTURAL PRODUCTS 
 
Tariff Elimination in the Bicycle and Related Parts Sector
 
 
Communication from Japan, Sin gapore, Switzerland, Thailand  
and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu 
    
 The following communication, dated 5 April 2007, is being circulated at the request of the delegations of Japan, Singapore, Switzerland, Th ailand and the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu. 
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I. INTRODUCTION  
1.    The bicycle is a ‘multi-functional’ product, in that it provides a less-polluting, lightweight,    
energy-saving and traffic-friendly fo rm of transportation.   A more affordable consumer price for 
bicycles will also enhance personal mobility, especially  in the least-developed countries, and that will 
allow improved access to education, facilitate the tran sportation of products to market, and thus be 
expected to make a substantial c ontribution to higher incomes.  Tari ffs on bicycles and related parts in 
some major markets, however, remain as high as 40% .  These tariffs represent a significant loss of 
trade opportunities and a substantial incr ease in production costs in the sector.  As proposed in the 
previous communication of 21 September, 2005 (ref. JOB(05)/202), the elimination of tariffs in the 
bicycle and related parts sector would facilitate trade expansion in both de veloped and developing 
country Members alike.  
 2.     According to IDB , developing country Members of the WTO accounted for US$ 4,004 
million worth of trade in bicycles and related parts in 2003, representing 47.6 % of the total trade in 
the sector of all WTO Members combined.  Given that  their share of total world trade in the same 
year was 29.9%, it is evident that for developing countries the bicycle sector enjoys a position of 
special trade interest.  This is further supporte d by the fact that developing countries account for 
84.2% of all WTO Members’ exports of bicycle a nd related parts, and 11% of imports.  A sectoral 
initiative for bicycle and related parts is therefore a meaningful response to the Doha mandate that the 
negotiations should aim to ‘reduce or as appropriate eliminate tariffs … in particular on products of 
export interest to developing countries’. 
 
3.    Since circulation of the paper JOB (05)/202 , many developed and developing Members have been 
exploring the possibility of market  access for this sector beyond wh at the tariff-reduction formula will 
achieve.  They have discussed a range of issues,  including product coverage, tariff treatment, 
flexibilities for developing Members and the concept of  ‘critical mass’.  In light of the Ministerial 
Declaration adopted in Hong Kong in December 2005 (WT/MIN(05)/W3/Rev.2), which instructed the 
NAMA negotiating group to review proposals with a view to identifying those that could garner 
sufficient participation, the following propo sal is made for Members’ consideration. 
 TN/MA/W/84 
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  II. MODALITIES  
A. P ARTICIPATION  
4. As agreed in paragraph 16 of  the Hong Kong Ministerial Declaration, participation in sectoral 
initiatives should be on a non-mandatory basis.  A leve l of participation representing a majority of the 
world trade in a particular sector should be requir ed in order to reap sufficient benefit from the 
initiative.  The agreement will take effect when a ‘c ritical mass’ of the trade of participating Members 
reaches a specified threshold.  To date, inter ested Members have proposed a ‘critical mass’ of 
Members representing no less than [90] percent of the world trade in bicycles and related parts. 
 
B. P RODUCT COVERAGE  
5. A bicycle and related parts sectoral initiative s hould be as comprehensive as possible and easy 
for participating Members to implement.  Theref ore, the subject of product coverage, including 
technical distinctions, has been discussed in informal  meetings of this sectoral initiative, and it should 
be further discussed to find optimal outcome on th e basis of varying interests and concerns of 
interested members.  A tentative suggestion for product coverage on bicycl e and related parts is 
shown in Table 1.  The ultimate decision on product c overage rests finally with the participants in the 
agreement.  
C. TARGET RATE AND IMPLEMENTATION  
6. This sectoral initiative will aim at the elimina tion of tariffs on the c overed products, and will 
be implemented in accordance with the implementati on of the Round itself.  Therefore, the standard 
target rate and its implementation shall be as follows.  
-  Target Rate : zero.   
-  Staging : the participant shall implement the tariff elimination over [five] years in equal 
instalments, or the final implementation peri od for general tariff reductions by formula, 
whichever is shorter.   
 
D. S PECIAL AND DIFFERENTIAL TREATM ENT FOR DEVELOPING COUNTRY MEMBERS  
7. A variety of flexibility options exists, any one  of which could be employed to account for the 
special needs and interests of developing Members.   In particular, developing Members may employ 
one of the following options: 
 
(i) Longer Implementation Period :  Developing Members would be  permitted to implement their 
commitments for longer than the implementation sc hedule to be applied to this agreement for a 
specific number of tariff lines up to [Y 11 %] of the total trade value of a Member’s imports 
within the agreed product coverage; or 
 
(ii)   Zero for X : As a limited exception, a tariff rate of [X]% or the post-formula tariff value, 
whichever is the lower, may be main tained for specific tariff lines up to [Y 2 %] of the total trade 
value of a Member’s imports with in the agreed product coverage. 
 8. Additional proposals for special and differentia l treatment are welcomed.  Specific conditions 
and limits for flexibility option will be further discussed  while all elements of special and differential 
treatment will be ultimately decided by the participan ts in the agreement.   Notwithstanding the above, 
reduction and staging commitments under this sec toral initiative should be no less ambitious than 
those brought about by the formula modality under the Doha Round.   
                                                     
 
1 The value of ‘Y 2’ should be less than that of ‘Y 1’.  TN/MA/W/84 
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  E. N EXT STEPS  
9. The sectoral modalities and  product coverage set out above sh all be finalized by [X X, 2007] 
or as otherwise agreed by Members.  10. This initiative should be incorporated in th e final outcome of the DDA, and the obligation 
under this initiative shall be implemented as a part of it.  
 TN/MA/W/84 
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Table 1:   Suggested Product Coverage of Sector al Initiative on Bicycles and Related Parts   
 
HS Code – 6 Digits 
 Description 
401150  New pneumatic tyres, of rubber, of a kind used on bicycles  
401320  Inner tubes, of rubber, of a kind used on bicycles  
ex 6506.10  Bicycle helmets  
ex 8716  Trailers and semi-trailers  
ex 8716.90.40  Parts of other trailers and semi-trailers  
ex 731511  Roller chain of a kind used on bicycles  
ex 732020  Stainless steel spring for bicycle valve inside core use  
ex 8306.10  Bells for bicycles  
ex 848180  Valves of inner-tubes, for bicycles  
851210  Lighting or visual signalling equipment of a kind used on bicycles  
ex 8512.90  Lighting or visual signalling equipment of a kind used on bicycles, parts  
871200  Bicycles and other cycles (including delivery tricycles), not motorized  
871491  Frames and forks, and parts thereof  
871492  Wheel rims and spokes  
871493  Hubs, other than coaster braking hubs and hub brakes, and free-wheel 
sprocket-wheels  
871494  Brakes, including coaster braking hubs and hub brakes, and parts thereof  
871495  Saddles of cycles  
871496  Pedals and crank-gear, and parts thereof  
ex 871499  Other parts and accessories of bicycles and other cycles, not motorized  
 
 
 
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