. /.   WORLD TRADE  
ORGANIZATION  TN/MA/W/37/Add.3 
16 May 2006 
 (06-2391) 
Negotiating Group on Market Access Original:   English 
  
 
MARKET ACCESS FOR NON-AGRICULTURAL PRODUCTS 
 
Communication from the United Arab Emirates
 
 
Addendum  
 
  The following communication, dated 15 May 2006, is being circulated at the request of the delegation of the United Arab Emirates.  
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 UAE is pleased to see that momentum is cat ching now towards more concrete discussions, 
and we welcome as a promising sign the amount of  communications and sessions on sectorals in the 
last NAMA week’s agenda.  
 As previously underlined by UAE, the sectoral proposal for the liberalisation of raw materials 
has the advantages of simplicity, clarity and flexib ility and offers equal potential of benefits for 
developing and industrialised countries.   It is our hope that participating into the di scussions on the raw materials sectoral proposal will 
not only mobilise most interested parties, but will also serve for all as an exercise showcasing the 
merits of the sectoral approach itself.    For this purpose we would like here to stress the economic gains that could derive, in our 
view, from the sectoral liberalisation of raw materials, not only as an incentive for Members to engage proactively into the negotiation of this proposal, but also because we believe that the same vision 
could be used to illustrate the positive effects of sectoral liberalisation in other sectors: 
  Raw materials are the fuel of the world economy.  Their liberalisation would contribute in many key sectors to achieving a fair level playing field and to widening the range of competitively 
priced products.  This would encourage competiti on, innovation, capital flows, investment, price 
stability and predictability (or at least reduction in  speculative price volatility), all this promoting 
healthier and more transparent markets, and jobs growth.   Liberalised raw materials would also bette r respond to offer/demand cycles and regional 
economic dynamics.  Logistics could be also better managed in an open market.  Consumption would 
be stimulated.  Liberalised raw materials would also support the competitiven ess of semi-fabricating 
industries (raw materials can represent up to 50% of the cost of semi-finished products). They would 
promote the growth of downstream and processi ng businesses in developing countries, thus 
decreasing their vulnerability to the price volatility and cycles of raw materials.  
 
 Raw materials, especially minerals and ores, re present also more than 50% of the revenues of 
many developing countries.  The consensus amo ng economists and industrialists is that trade TN/MA/W/37/Add.3 
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  liberalisation promotes worldwide economic growth , poverty alleviation, job creation, rising living 
standards, wider consumer choice and efficiency of the industries.   Liberalised raw materials and primary pro ducts can powerfully contribute to economic 
growth through: 
 
• Increased exploration; development; netw orking and pooling of geological data and 
exploitation technologies; allowing for a better management of mineral wealth. 
 
• Increased imports of capital goods, Foreign Direct Investment (FDI). 
 
• Development of export-oriented industri es, especially in the downstream sector 
(minerals and 
metals processing industries for example).  
 
• Stimulation of the growth of the private sector. 
 
• Jobs creation, especially for nationals. 
 
• Development of inter-regional trade. 
  What we need now is to be able to start d esigning a matrix for the raw materials initiative and 
for that purpose your input is very much needed : trade related data, sensitivities, modalities, S & D 
proposals, critical mass definitions, etc… May we s uggest again the use of the questionnaire that we 
have circulated last year on any format you may wi sh to use to communicate your views. We all must 
keep in mind the need to intensify work and to be  able to draft a substantial negotiation proposal as 
soon as possible. 
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