WORLD TRADE  
ORGANIZATION  TN/MA/W/7/Add.1 
11 March 2005 
 (05-1031) 
Negotiating Group on Market Access Original:   English 
  
 
MARKET ACCESS FOR NON-AGRICULTURAL PRODUCTS 
 
A Proposal for a Simple Non-Linear Formula with Credits
 
 
Communication from Norway 
 
Addendum  
  
 The following communication, dated 10 March 2005, is being circulated at the request of the 
Delegation of Norway. 
 
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I Introduction:
 
 
1. The objective of this paper is to propose a simple, non-linear formula that can easily be 
understood and explained, while at the same time  fulfilling the mandate from Doha and the guidance 
in the July 2004 Framework for Establishing Mo dalities in Market Access for Non-Agricultural 
Products.  
 
2. Norway proposes a non-linear formula with tw o coefficients that includes a simple and 
transparent element of credits. This would provide Members with a certain degree of flexibility  in 
how they fulfil the Doha mandate in the context of the NAMA negotiations.  
  3. The level of ambition provided by the formul a, - as expressed by the two coefficients, - will 
be subject to further negotiations with the obj ective of fulfilling the ambitious mandate for the 
NAMA- negotiations established by Ministers in Doha.   II What the formula is intended to achieve:
 
 
♦ Ensure substantial reduction of peaks, high tariffs  and tariff escalation by using a  Swiss formula 
where the coefficient establishes a maximum level of tariffs after the formula is applied.   
♦ Incorporate the concept of less than full recipr ocity of the Doha mandate by using a modified 
Swiss formula with two coefficients, one for deve loped and one for developing country Members. 
♦ Give Members flexibility in deciding how to shap e their contribution to the overall result through 
a concept of credits.  
♦ Reward those Members who contribute to a more  liberal trading regime for Non-Agricultural 
products through a system of credits incorporated into the formula, which includes:  
- credits for participation in sectoral components that reduce or eliminate tariffs on products of 
particular export interest to developing countries;  
- credits for applying the formula to all tariff lines; 
- credits for improving predicta bility through full tariff bindings. TN/MA/W/7/Add.1 
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 III The formula:
 
 4. This idea could be made operational in the following manner:  
(1) T1 = (A  * T0) 
             (T 0 + C)  
 
where 
T 1 = new bound tariff after formula cut 
T 0 = old bound tariff 
A = coefficient indicating the level of ambition. A will have one value for developed, and 
another for developing country Members. 
C = credit a country gets for: 
• binding 100 per cent of NAMA tariff lines. 
• participating in sectoral tariff components that elimin ates, or lowers to an agreed level, tariffs on 
products of export interest to developing countries. 
• foregoing the use of the flexibilities in paragraph 8 of the July 2004 Framework for Establishing 
Modalities in Market Access for Non-Agricultural Products 
  IV Operationalising the system of credits:
 
 
5. The formula has two parameters to be determ ined in negotiations, A and C. The coefficients 
A sets the level of ambition in the formula. The parameter C determines how much more ambitious 
the formula will be for those Members who choo se not to contribute through the credit system. 
Members also have to agree on how much credit is to be given for different contributions. The fact 
that there are limited numbers of parameters to be negotiated should make the process transparent and 
sufficiently easy to manage.  
 
6. The system does not require Members to do anything other than apply the formula, but it rewards those who choose to do more than the formula requires in certain areas. 
 7. The credit parameter C is set at a level hi gher than the coefficient A. When a  Member 
receives credits because of contributions it makes in  the areas indicated above, C is reduced. When C 
is reduced, the cuts resulting from the formula are also reduced. The more a Member contributes, the 
smaller C becomes, and the higher the new bound tariffs become. If a Member chooses to meet all requirements as indicated above and thereby qualifies for maximum credit, C is reduced to the point 
where it equals the coefficient A. That Member will  then cut its tariffs in accordance  with a Swiss 
formula with the relevant coefficient, either th e developed country coefficient or the developing 
country coefficient.   
  V How credits will be given:
 
 
8. Whether a Member receives credits, and if  so, how much, will depend on the level of 
commitments the Member undertakes in its schedule. A Member will receive credit if the schedule includes:   100 per cent of NAMA tariff lines bound.  TN/MA/W/7/Add.1 
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  The formula cuts applied to all tariff lines. Th is means not using the flexibilities contained in 
paragraph 8 of the July 2004 Framework for Establishing Modalities in Market Access for Non-
Agricultural Products .  
 Participating in sectoral tariff components that elimin ates, or lowers to an agreed level, tariffs on 
products of export interest to developing countries. 
  
9. Developed country Members will only receive cr edits for participation in all sectoral tariff 
components of export interest to developing countries.  10. Participation in a sectoral tariff component that eliminates, or lowers to an agreed level, tariffs 
on products of export interest to developing countries, is important in order to fulfil the goal of the 
Doha declaration of further integrating the developi ng countries into the global trading system. It is 
particularly important that improved access to pot ential or current export markets is granted to 
products of export interest to the least developed countries. Norway proposes that the Members agree 
on a list of products of export inte rest to developing country Member s, especially the LDCs, and grant 
credits to Members that liberalise trade in these sectors.   
 
VI Who the formula will apply to:  
 
11. The formula will apply to all Members, with the following exceptions  outlined in Annex B of 
the Framework for Establishing Modalities in Market Access for Non-Agricultural Products: 
 
• The Least Developed Countries (Angola, Bangladesh , Benin, Burkina Faso, Burundi, Cambodia, 
Central African Republic, Chad, De mocratic Republic of the Cong o, Djibouti, Gambia, Guinea, 
Guinea Bissau, Haiti, Lesotho, Madagascar, Mala wi, Maldives, Mali, Mauritania, Mozambique, 
Myanmar, Nepal, Niger, Rwanda, Senegal,  Sierra Leone, Solomon Islands, Tanzania, Togo, 
Uganda and Zambia) 
• Members covered by Paragraph 6  of  the Framework, namely Members with a binding coverage of 
less than [35] percent  (Cameroon, Congo, Côte d’Ivoire, Cuba, Ghana, Kenya, Macao China,  
Mauritius, Nigeria, Sri Lanka,  Suriname and Zimbabwe) 
 
 
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