WORLD TRADE  
ORGANIZATION  TN/MA/S/13 
24 January 2005 
 (05-0294) 
Negotiating Group on Market Access  
  
 
SECTOR SPECIFIC DISCUSSIONS AND NEGOTIATIONS ON GOODS 
IN THE GATT AND WTO  
 
Note by the Secretariat
1 
 
 
 
I. INTRODUCTION ................................................................................................................... .2 
II. SECTOR SPECIFIC DISCUSSIONS.....................................................................................3  
III. SECTORAL NEGOTIATIONS ..............................................................................................4  
A. KENNEDY ROUND (1964-1967).............................................................................................5  
B. TOKYO ROUND (1973-1979) ..................................................................................................6  
C. URUGUAY ROUND (1986-1994) ............................................................................................8  
D. POST URUGUAY ROUND SECTORAL NEGOTIATIONS (1995 – TO DATE) ................10  
E. ACCESSIONS TO THE WTO.................................................................................................11  
IV. ELEMENTS IN A SECTORAL NEGOTIATION..............................................................12  
ANNEX 1 - SECTORAL NEGOTIATIONS DURING THE KENNEDY ROUND         
(1964-1967).................................................................................................................... ........................14  
ANNEX 2 - SECTORAL NEGOTIATIONS DURING THE TOKYO ROUND         
(1973-1979).................................................................................................................... ........................16  
ANNEX 3 - SECTORAL NEGOTIATIONS DURING THE URUGUAY ROUND   
(1986-1994).................................................................................................................... ........................19  
ANNEX 4 - POST URUGUAY ROUND DEVELOPMENTS ON SECTORAL 
NEGOTIATIONS (1995 – TO DATE)...............................................................................................24  
ANNEX 5 - PRODUCT COVERAGE OF SUCCESSFUL PLURILATERAL 
SECTORAL NEGOTIATIONS DURI NG THE URUGUAY ROUND..........................................26  
 
                                                      
1 This document has been prepared  under the Secretariat's own respon sibility and is without prejudice 
to the positions of Members and to their rights and obligations under the WTO. TN/MA/S/13 
Page 2  
 
   
I. INTRODUCTION 
1. Following a request at the Negotiating Group's m eeting of 6-8 December 2004, the Secretariat 
has prepared this background note describing the e volution of sectoral discussions and negotiations of 
goods in the GATT/WTO.  It does not address the speci fics of the various proposals that have been 
submitted in the context of the Doha Development Agenda and is presented without prejudice to the 
positions of Members in this regard.
2  It also does not address in detail well known agreements, like 
the Agreement on Agriculture3, the Agreement on Textiles and Clothing4, nor the plurilateral 
agreements annexed to the Marrakesh Agreem ent Establishing the World Trade Organization.5  
However, general references to these Agreements ha ve been included to give a complete picture.  
Non-tariff barriers addressed through sectoral ne gotiations have also been summarized when 
information was available.     2. As to the sources of information, it should be recalled that the Secretariat played a relatively 
modest role during the initial tariff conferences.  In those days, tariffs and trade statistics – as well as 
requests and offers for binding and tariff reduction – were prepared, handled and exchanged by the 
participating governments themselves.
6  In many cases, only the final bilateral or plurilateral 
agreements were forwarded to the Secretariat for the record.  There are, theref ore, few official records 
available which the Secretariat could use to describ e many of these bilateral or plurilateral sectoral 
negotiations.  This background note attempts to ove rcome the lack of official documentation by 
partially relying on non-papers, official reports by the participating governments and publications 
describing the negotiating history of the different mu ltilateral rounds of negotia tions.  The information 
contained herein should therefore be considered as i ndicative in nature, particularly in respect of the 
description of the bilateral and plurilateral agreements. 
 3. This note is organized in three sections.  The first section presents a general description of the 
sector specific discussions that have taken place over the years.  The second section provides 
information on the sectoral negotiations that have taken place in the context of Negotiating Rounds as 
well as outside of such Rounds. The third section provides an overview of the main elements of sectoral negotiations.  Finally, the annexes summarize the main elements identified in some sectoral 
negotiations, as well as a list of the product coverage of the plurilateral sectoral initiatives that were 
concluded during the Uruguay Round.   
                                                     
 
2 See TN/MA/6/Rev.1 for more information on such proposals. 
3 This background note does not describe at full length the discussions on natural resource products, 
bovine meat, dairy products, tropical products and agricultural products. 
4 During the GATT, trade in textiles was subject to special arrangements that were tantamount to 
sectoral safeguard clauses including, inter alia : 
1. The Short-Term International Arrangement on Cotton Textiles, see GATT BISD 10S/18.   
2. The Long-Term International Arrangement on Cotton Textiles, see GATT BISD 11S/25.   
3. The Arrangement Regarding International Trade In Textiles, see GATT BISD 21S/3. 
5 The Agreement on Trade in Civil Aircraft, International Dairy Agreement and the International 
Bovine Meat Agreement.  The latter two agreem ents were terminated at the end of 1997. 
6 See Hoda, A., Tariff Negotiations and Renegotiations under the GATT and the WTO: Procedures and 
Practices , Cambridge, 2001, p. 69.  TN/MA/S/13 
 Page 3 
 
 
 II. SECTOR SPECIFIC DISCUSSIONS 
4. The GATT of 1947 had the goal of establishing rules of general application for the trade of all 
goods and, therefore, contained very few re ferences to particular products or sectors.7  In spite of this 
initial goal, the records suggest that GATT Contr acting Parties sought to address the particular 
problems of individual products and sectors relatively early in time, including through general 
discussions that in some cases led to negotiation a nd formal agreement.  For example, Contracting 
Parties decided in 1956 to review at every session the trends and developm ents in international 
commodity trade based on reports prepared by the Chairman of the Interim Co-ordinating Committee 
for International Commodity.  It was envisaged that  these consultations could lead to "international 
joint action" that could include arrangements for an  intergovernmental meeting, "the composition of 
which should not be limited only to the countries which are Contracting Parties to the General 
Agreement but should be determined according to  the nature and importance of the interests 
concerned both of producers and consumers."8   
5. In 1959, one delegation proposed to discuss the pa rticular issues affecting trade in agricultural 
products9, and the Contracting Parties agreed two years later to include it as a negotiating issue in the 
1960/61 Tariff Conference (also known as the Dill on Round).  It is worth noting that GATT 
Contracting Parties examined, even before launchi ng that round, the obstacles to the expansion of 
trade of eleven products considered of export inter est to developing countries: cocoa, coffee, copper, 
cotton, cotton manufactures, jute manufactures, t ea, timber, tobacco, and vegetable oils and seeds.10  
In implementing the actions mandated by Ministers to launch the Dillon Round, Contracting Parties 
decided to give careful consideration to the questi on of duty-free entry for tropical products as part of 
the obstacles to trade of developing countries.11  Several commodities were examined by the so-called 
Committee III, which later gave rise to the creation of a Special Group on Trade in Tropical Products 
in 196212.   
6. Contracting Parties established in 1967 a Committe e on Trade in Industrial Products as part of 
the coordinated programme of work of the Progra mme for Expansion of International Trade, which 
laid down the preparatory work for the Tokyo Round.  The terms of reference of this Committee were 
to "explore the opportunities for making progress toward  further liberalization of trade taking into 
account the discussion on the subject at the twenty-fourth session".13  This Committee discussed 
different techniques and modalities for the negotia tion of tariff reductions, including the duty-free, 
item-by-item, linear reduction, elimination of low duties, and harmonization techniques.  One of the 
suggested ways to achieve harmonization was thr ough "harmonization rules which provide for the 
reduction of the average of duties in a given sector".14  Contracting Parties also discussed a more 
ambitious modality called the "sector  approach" in which all factors affecting trade in a specific 
                                                      
7 Exceptions include, inter alia , specific references in GATT Artic les IV (cinematograph films), XI:2 
(foodstuffs, agricultural products and fisheries), XVI:4 (primary products), XX (gold and silver) and XXI 
(fissionable materials, arms, ammunition and implements of war).  
8 GATT BISD 05S/26. 
9 Proposal by Australia.  See GATT BISD 08S/10 3, Second report of Committee I adopted on 
19 November 1959. 
10 Second report of Committee III adopted on 19 November 1959, GATT doc.  L/1063 (GATT BISD 
08S/135-139). 
11 Decision of 7 December 1961 , GATT BISD S10/32-34.   
12 Report of Committee III on Programme of Work, GATT doc. L/1732, GATT BISD 11S/174-175 and 
the Annex to the Report submitted by the Chairman of the Committee of the Contracting Parties in March 1964, 
GATT BISD 12S/109. 
13 GATT BISD 15S/74. 
14 GATT BISD 20S/102. TN/MA/S/13 
Page 4  
 
  sector, including non-tariff measures, would be dealt together.
15  It would appear that this was the 
meaning that the term had for some y ears (negotiations encompassing both tariff and non tariff 
measures)16, but it later evolved to describ e negotiations on either tariff or NTBs on a particular sector 
(i.e. the "zero for zero" initiatives of the Uruguay Round).   
7. Ministers agreed in 1982 to establish a Group on Quantitative Restrictions and other Non-
Tariff Measures, with the mandate to review exis ting quantitative restricti ons and other non-tariff 
measures, as well as to eliminate those that were not in conformity with the rules of the GATT.  This 
Group reviewed the quantitative restrictions affecti ng products of particular interest to developing 
countries based on a sectoral analysis prepared by the Secretariat.17  The 1986 report of this Group 
noted that negotiations to redu ce or eliminate non-tariff measures could be organized bilaterally, 
plurilaterally or multilaterally.  At the request of th e Contracting Parties, the Secretariat prepared a 
note describing how these negotiations could be unde rtaken based on the experience of previous 
negotiations. 18 
8. In 1984 Contracting Parties established a Work ing Party on Problems of Trade in Certain 
Natural Resource Products19.  This group had the mandate to examine, with a view to recommending 
possible solutions, the problems affecting trade in three particular sectors: (a) non-ferrous metals and 
minerals, (b) forestry products, and (c) fish and fisheries products.20  Discussions were held based on 
GATT Secretariat studies on the different problems affecting trade in those sectors, including tariffs, non-tariff measures and other measures.
21  Some Contracting Parties noted that these products 
continued to face high nominal tariffs and tariff escala tion in the major importing markets.  Tariff rate 
quotas and other NTBs were also identified as sourc es of concern, including problems related to: the 
use of reference prices for valuation, labelling and packaging requirement s, production and export 
subsidies, import licensing, as well as non-coverage or coverage limitations in certain preferential 
schemes for GSP suppliers.  Some Contracting Parti es were of the view that any future negotiating 
modalities should be elaborated taking in to account the trade measures identified.22  These sectoral 
discussions were eventually superseded by the Uruguay Round negotiations.   
III. SECTORAL NEGOTIATIONS 
9. GATT Article XXVIII bis sets the broad guidelines under whic h tariff negotiations should be 
undertaken.  In this regard, it notes that negotia tions may be carried out on a selective product-by-
product basis or "by the application of such multilateral procedures as may be accepted by the 
Contracting Parties concerned." 23  The rules and procedures for the Tariff Conference of 1960 
illustrate how the "product by product" negotiations took place, by indicating that Contracting Parties 
                                                      
15 GATT BISD 20S/110-112. 
16 See GATT doc. L/3886, paras. 63-69; and COM.IND/W/109. 
17 NTM/W/17, Annex 16. 
18 Report (1986) of the Group on Quantitative Restrictions and other Non Tariff Measures adopted on 
26 November 1986, GATT BISD 33S/171, paragraph 47 and Annex 2. 
19 C/M/176. 
20 Decision on Problems of Trade in Certain Natu ral Resource Products adopted at the Ministerial 
Meeting of the Contracting Parties in 1982 (GATT BISD  29S/20).  A Working Party was established in 1984, 
whose report was adopted on 17 June 1986, GATT BISD 33S/179. 
21 GATT BISD 30S/15-16.  The studies can be found in the following GATT documents:  (i) Fish and 
fisheries products: MDF/W/5, MDF/W/33 and Corr.1 and MDF/W/55;  (ii) Forestry products: Spec(84)13 and 
Add.1 and Corr.1, and Corr.1/Suppl.1.; (iii) Non-ferr ous metals and minerals: MDF/3, MDF/W/20, MDF/W/21, 
MDF/W/37. 
22 GATT BISD 32S/126-143. 
23 GATT Article XXVIII bis was introduced during the Review Session of 1954-55 and entered into 
force on 7 October 1957.  TN/MA/S/13 
 Page 5 
 
 
 participating could request concessions in products in which they indivi dually, or collectively, were or 
were likely to be the principal suppliers to the Contracting Party from which the concession was being 
asked.  This rule did not prevent any other par ticipant from making any request, but the Contracting 
Party concerned had the right to invoke the "principal supplier rule" if the principal supplier of the product was not participating in the negotiations  or was not a Contracting Party to the GATT.
24   
10. The Contracting Parties decided at the Ke nnedy Round that the "product-by-product" 
approach was no longer adequate for pursuing multilateral liberalization and explored other 
modalities for tariff reduction, such as the formula a pproach.  As this section illustrates, sectoral 
negotiations were also explored by GATT Contracti ng Parties as a negotiating modality at bilateral, 
plurilateral and even at multilateral levels.25 
11. Given the lack of information on the early Tari ff Conferences, and the fact that most of them 
were held on a product-by-product basis, this section limits itself to describing the sectoral 
negotiations that have taken place since the Kennedy Round.   
A. KENNEDY ROUND (1964-1967) 
12. Ministers noted during a meeting that took pl ace in 1961 that the usefulness of the product-
by-product and country by country negotiations was no longer adequate to meet the changing 
conditions of world trade and that  new negotiating techniques were re quired.  They considered that 
particular attention should be given to the adoption of new techniques, in particular to "some form of 
linear tariff reduction".26  Thus, Contracting Parties began discussions on the possibility of applying 
tariff cuts across the board on all tariff lines.27  Ministers decided later in 1963 to launch a new tariff 
conference and stressed that such tariff negotiations  "shall be based upon a plan  of substantial linear 
tariff reductions with a bare minimum of exceptions  which shall be subject to confrontation and 
justifications."28  It was also envisaged that tariff reductions would be based upon special rules of 
general and automatic application for those cases in  which there were significant disparities in the 
tariff levels, and that the negotiations should provide for acceptable conditions of access to world 
markets of agricultural products.29  The Trade Negotiations Committee ag reed in 1964 to use a rate of 
50 per cent as a "working hypothesis" for the determina tion of the general rate of linear reduction.  It 
also noted that the ultimate agreement on tariff reduc tions was linked to the resolution of other issues, 
such as tariff disparities, agricultural problems,  exceptions, non-tariff probl ems and the achievement 
of reciprocity in the negotiations.30   
13. Besides the Trade Negotiations Committee, Cont racting Parties also established multilateral 
bodies to deal with sector specific problems, such  as the Committee on Agriculture, the Groups on 
Cereals, Meat, and Tropical Products, and the Pilot Group on Dairy Products.   
                                                      
24 Annex A of the Second Report of Committee I adopted on 19 November 1959, GATT BISD 
S08/114. 
25 See Hoda, A., op. cit. pp. 37-38; 44-52. 
26 Meeting of Ministers, Conclusions adopted on 30 November 1961, GATT BISD 10S/26. 
27 This was not, however, the first time that a linear cut was proposed by a Contracting Party to the 
GATT.  France proposed in 1953 to reduce duties by a 30% "in a more or less automatic manner, in order to 
avoid extensive negotiations between participating countr ies" where exceptions to the application of formula 
were also considered.  See GATT Doc.  L/103, BISD 02S.  In addition, two Contracting Parties (EC-6 and UK) 
applied a 20% cut, with certain exceptions, duri ng the Dillon Round (1960-1961). See Hoda, A, op. cit ., p. 30. 
28 GATT BISD 12S/47. 
29 Ibídem. 
30 GATT BISD 13S/109. TN/MA/S/13 
Page 6  
 
  14. In spite of the initial intention to apply an  across-the-board reduction of tariffs, it would 
appear that the negotiations eventually evolved in to a bilateral and plurila teral product-by-product 
negotiation that included discussions on particular secto rs, once the initial offers were actually tabled.  
It appears further that some Contracting Parties did table offers consistent with the 50% working 
hypothesis, but later reduced the cuts offered in some products and sectors as they felt that no 
reciprocity had been offered by other major players.
31  A Secretariat background note of 1975 
indicates that it became clear at one point that a determined effort was required to deal with the 
problems in the main sectors affected, since the withdrawal of the conditional offers could have 
triggered a chain reaction that would have undermin ed the whole negotiation in a manner that could 
not be dealt in the course of bilateral negotiations.  Informal groups were therefore established in five 
sectors:  chemicals, cotton textiles, pulp and paper, iron and steel, and non-ferrous metals.  
Contracting Parties with a major interest took part  in these groups.  In other sectors (e.g. watches) 
negotiations were conducted at the bila teral level.  It is worth noting that in some of these sectors a 
smaller reduction was agreed than the one applied in the average reduction.32  The agreement on 
particular sectors, or the lack of it, was later re flected in the final Schedules of concessions approved 
by consensus by the Contracting Parties.  One of  the relatively new features of this round was that 
formal plurilateral "agreements" with multilateral effects were reached on two sectors:  cereals and 
chemicals.33 
15. The Secretariat's background note of 1975 also indicates that Section 211(a) of the United 
States Trade Expansion Act gave the President of the United States authority to negotiate sectoral 
agreements where the USA and th e European Communities accounted fo r 80 per cent of world trade.  
This possibility was, however, not fully realized  because the United Kingdom had not become an EC 
member by the time of the Kennedy Round negotiati ons, and the USA and the EC-6 accounted for 80 
per cent of world trade in very few sectors.34  It was estimated that, had the UK joined the EC by then, 
some 25 sectors would have been eligible for free trade.35 
B. TOKYO ROUND (1973-1979) 
16. The Ministerial Declaration launching the To kyo Round indicated that negotiations should 
aim to conduct negotiations for tariff reduction by "emp loyment of appropriate fo rmulae of as general 
application as possible."36  It also stressed that negotiations should aim, inter alia , to "include an 
examination of the possibilities for the coordinated re duction or elimination of all barriers to trade in 
selected sectors as a complementary technique" and to "treat tropical products as a special and priority sector".   
17. Besides the Trade Negotiations Committee that had the mandate to oversee the negotiations, 
six negotiating groups and several subgroups were established as part  of the negotiating structure, 
including: (i) the Group on Tropical Products; (ii) the Group on Agriculture, which included 
                                                     
 
31 See Report by the President of the Board of Trade to the Par liament of the United Kingdom, The 
Kennedy Round of Trade Negotiations 1964-67,  London, 1967. 
32 MTN/3C/1, p. 15-16. 
33 It should however be recalled that  a formal "agreement" was previo usly reached to deal with the 
trade on cotton textiles.  See footnote 4. 
34 MTN/3C/1, paragraph 13. 
35 See COM.IND/W/119, Submission by Canada – The sector approach as a technique for Multilateral 
Trade Liberalization. 
36 GATT BISD 20S/20.  TN/MA/S/13 
 Page 7 
 
 
 subgroups for cereals, meat a nd dairy products; and most notably the (iii) Group "Sectoral 
Approach".37   
18. The Negotiating Group "Sectoral Approach" based  its work on a background note prepared by 
the Secretariat in 1975, which dealt on past experi ences with multilateral sectoral approaches, as well 
as on a number of sector specific studies.38  These studies contained factual information on many 
sectors including, inter alia,  aluminium, chemicals, electronics, fish and fish products, heavy 
electrical equipment, leather and leather goods, st eel and on several non-ferrous metals, to name a 
few.39  The discussions of this group aimed at clarif ying issues such as: (i) the role that sectoral 
approaches would play in the negotiations, (ii) the criteria for selecting sectors for negotiation, (iii) the 
definition of the product coverage, including whethe r all the stages of processing should be included 
to deal with tariff escalation, (iv) how to appl y measures of special and differential treatment for 
developing countries40, (v) the identification of sectors of possible interest to developing countries, 
and (vi) the possibility of addressing non-tariff barriers for the particular sector.41  Proposals were 
received to fully liberalize trade in some of th ese sectors, including the non-tariff barriers affecting 
them42, but some Contracting Parties preferred to con centrate efforts on the general approach (i.e. the 
formula) as they noted that this complementary approach should go beyond those results.43  T h e  
formal work of this Group ended without any concre te result and the Chairman noted in his report to 
the TNC that he considered that the work of  the Group was carried "as far as it could".44   
19. As to the issue of participation, the Secretariat background note of 1975 indicated that the 
sectoral negotiation could be open to all Contracting Pa rties expressing an interest  in participation, or 
it could be determined on the basis of a Contracting Party's economic interest in such sector such as 
trade, production or consumption data.45 
20. Several tariff reduction formulae were di scussed at the Negotiating Group "Tariffs"46, one of 
which is remembered as the "Swiss formula".47  After failing to reach an agreement on the specific 
formula that would be used as the tariff reducti on modality, a number of delegations indicated in a 
statement dated 14 July 1978 that they have reach ed a framework of understanding on the necessary 
elements of a comprehensive package for the T okyo Round.  This framework indicated that 
delegations were still working on a comprehensive tariff package for industrial tariffs and clarified 
that "[w]hile generally following the Swiss formula d esigned to achieve a substantive harmonized 
reduction of tariffs, the delegations are proceeding to  reciprocal adjustments in their initial offers 
involving both improvements as well as exceptions".48  It also noted that: (i) an agreement had been 
                                                      
37 INF/190. 
38 The 1975 Background Note of the Secretariat circulated in GA TT doc. MTN/3C/1.  A summary of 
the preparatory work  can be found in: 
 -The 1973 Report of the Committee on Trade in Industrial Products, GATT doc. L/3886, para. 10-13 on "duty 
free" trade and para. 63-69 on the "sector approach". 
 -The 1974 Report of the Group 3(c), The Sector  Approach, to the Trade Negotiations Committee. 
39 See MTN/SEC/W series. 
40 On this particular issue, see GATT doc. MTN/W/2, Submission by Brazil – Special procedures for 
developing countries, p.4 . 
41 MTN/SEC/1-6.  The studies on products that could be of export interest to developing countries were 
circulated in MTN/SEC/W/2 and Add.1, Add.2. 
42 See for example MTN/SEC/W/7 - Note by Canada proposing the liberalization of trade in copper 
products. 
43 MTN/SEC/1. 
44 MTN/SEC/6. 
45 MTN/3C/1, p. 43. 
46 See MTN/TAR/2 and MTN/TAR/W series. 
47 MTN/TAR/W/34 and Add.1. 
48 MTN/INF/33, p. 4-5. TN/MA/S/13 
Page 8  
 
  reached on trade in civil aircraft, (ii) discussions  on the preparation of a multilateral resolution on 
steel would be held at the OECD, and (iii) ne gotiations were continuing to establish commodity 
agreements on wheat, coarse grains, dairy products and meat.   
21. In spite of the above-mentioned agreement, at  least one other Contracting Party applied a 
different formula and others carried out negotiations on a product-by-product basis.
49  L i k e  i n  t h e  
previous rounds, Contracting Par ties engaged in bilateral and plur ilateral negotiations to make the 
reciprocal adjustments that were considered necessar y to achieve balance.  There is also evidence 
suggesting that a number of bilateral agreements were reached on non-tariff measures, particularly in 
the agricultural sector.50 
C. URUGUAY ROUND (1986-1994) 
22. Unlike the two previous rounds, the Ministeria l Declaration launching the Uruguay Round did 
not make any reference to the modality that woul d be used for tariff reduction of non-agricultural 
products.  The Decision simply indicated that, in the tariff area, " [n]egotiations shall aim, by 
appropriate methods, to reduce or , as appropriate, eliminate ta riffs including the reduction or 
elimination of high tariffs and tariff escalation".51  Multilateral negotiations were also launched in 
some specific sectors such as: tropical products, na tural resource-based products, textiles and clothing, 
and agriculture. 
23. Contracting Parties established a negotiating structure that included a Trade Negotiations 
Committee (TNC) as the overseeing body, as well as a Group of Negotiations on Goods (GNG) and a Group of Negotiations on Services (GNS).  In additi on, 14 Negotiating Groups were established in the 
area of trade in goods, including those dealing with natural resource-based products, textiles and 
clothing, agriculture and tropical products.
52  These Groups were eventually subsumed into the 
Negotiating Group on Market Access.   
24. The Negotiating Group on Tariffs initiated its work  in 1987.  Several proposals were tabled 
indicating the modality that could be used for tariff reduction.53  While some Contracting Parties 
proposed to use a tariff reduction formula like in the previous rounds, others considered it was better 
to revert to the item-by-item modality which would permit inter alia  to have a sectoral focus in the 
negotiations.54  Item-by-item negotiations were, however, oppo sed by others who considered that they 
would allow for maintaining protection in individual sectors.   
25. In 1988 Contracting Parties agreed at the Mid Term Review of Montreal on a package of 
subjects that would provide further guidance to  the negotiations.  This package reiterated, inter alia,  
the importance of reducing and elimin ating tariffs "with a target amount  for overall reductions at least 
as ambitious as that achieved by the form ula participants in the Tokyo Round"55, a phrase that was 
interpreted as a 33.3% overall reduction target.56  Participants eventually ga ve up attempts to agree on 
a common modality for tariff reduction at the beginning of 1990 and agreed that, in order to comply with the target set out at the Mid Term Review, "each participant will provide the secretariat by 
                                                     
 
49 Hoda, A., op. cit ., p. 32. 
50 Glick, L.A., Multilateral Trade Negotiations: World Trade After the Tokyo Round , USA, 1984, p. 27 
51 GATT BISD 33S/23. 
52 The negotiating structure was agreed in Annex 2 of the Decision of 28 January 1987, GATT BISD 
33S/34. 
53 MTN.GNG/NG1/W series.   
54 See for example MTN.GNG/NG1/W/5 – Submission by the United States. 
55 MTN.TNC/7(MIN), p. 4. 
56 Hoda, A., op. cit. , p. 35.  TN/MA/S/13 
 Page 9 
 
 
 15 March 1990 with a proposal for the reduction, e limination and bindings of its respective tariffs on 
a line-by-line basis".57  It was also decided that offers w ould be multilaterally reviewed and assessed 
on a periodic basis.  Contracting Parties were theref ore free to make the cuts in the products they 
wished and to the level they considered appropr iate, as long as the overall reduction target of 33.3% 
was met.  While some Contracting Parties applie d a formula to produce their initial offers, others 
engaged in item-by-item negotiations.58   
26. On 13 July 1993, four Contracting Parties a nnounced an agreement on a number of elements 
they considered necessary to reach a final agreement on a global and ba lanced package.  In the area of 
"industrial goods", they considered it was essentia l to build upon existing market access offers 
through a comprehensive and integrated appro ach.  Amongst the minimum elements considered 
necessary to achieve an overall bala nced package were: (i) to pursue tariff and non-tariff elimination 
in a common list of sectors (pharmaceuticals, constr uction equipment, medical equipment, steel, beer, 
and subject to certain agreed exceptions, furniture, farm equipment, and spir its);  which should be 
undertaken with a view to add as many sectors as possible; and (ii) harmonization in the chemical sector of tariffs at low rates, including in some cases harmonizing at zero.
 59   
27. Although the Chairman of the TNC declared at the end of 1993 that the evaluation exercise 
had been carried out, the negotiations on tariffs continued.60  The verification of draft final Schedules 
of goods took place between February and March 1 994, after which they were annexed to the GATT 
1994 by the Marrakesh Protocol.61  Some of the final Schedules of the Uruguay Round embody the 
results of this bargaining process, including eleven  successful plurilateral sectoral negotiations on 
agricultural equipment, beer, chemicals, constructio n equipment, distilled spirits (brown), furniture, 
medical equipment, paper, pharmaceuticals, steel and toys.62  Most of these sectoral negotiations are 
known as "zero for zero" agreements, because participan ts bound duty free levels for those products in 
their Schedules.  The agreement on chemicals, on  the other hand, is usually referred to as a 
"harmonization" agreement, because participants included in their Schedules the same levels for 
different groups of products.  It would appear that many other sectoral initiatives were proposed 
during the Uruguay Round, but no consensus was reached on them.63  It is finally worth noting that 
the Marrakesh Agreement Establishing the Worl d Trade Organization annexed 5 sector specific 
agreements:  two multilateral64 and three of a plurilateral nature.65 
                                                      
57 MTN.GNG/NG1/17. 
58 Hoda, A., op. cit.,  p. 49. 
59 MTN.TNC/W/113. 
60 MTN.TNC/39. 
61 Paragraph 1 of the Marrakesh Protocol to the General Agreement on Tariffs and Trade 1994. 
62 See Annex 3 for a sector by sector description and Annex 4 for a detailed description of the product 
coverage. 
63 It would appear that additional sectoral negotiations were proposed for ceramics, cigars, footwear and 
leather goods, glassware, musical instruments, oilseeds, phot ographic film, rubber, scientific instruments, textiles 
and clothing, and white spirits.  However, the Secretariat has no specific information about them. 
64 The Agreement on Agriculture and the Agreement on Textiles and Clothing. 
65 The Agreement on Trade in Civil Aircraft, Intern ational Dairy Agreement and International Bovine 
Meat Agreement.  TN/MA/S/13 
Page 10  
 
  D. P
OST URUGUAY ROUND SECTORAL NEGOTIATIONS (1995  – TO DATE)66 
28. The Ministerial Declaration on Trade in Information Technology Products (ITA) was 
concluded at the Singapore Ministerial Conference in December 1996.67  At that time, 29 participants 
signed the declaration accounting for 83 per cent of world trade in information technology (IT) products.  However, it was still unclear at that time whether or not the provisions of the Declaration 
would come into effect, as Paragraph 4 of the Annex stipulated that participants representing 
approximately 90 per cent of world trade would ha ve to notify their acceptance by 1 April 1997 for 
the agreement to enter into effect.  A number of  other countries and separ ate customs territories 
expressed an interest in becoming participants to the agreement in the ensuing months and notified 
their acceptance before the deadline.
  The 90 per cent threshold was surpassed and the ITA entered 
into force with the first staged reduction of the tariffs occurring on 1 July 1997.68  The three basic 
principles that ITA participants had to follow were: (1) all products listed in the Declaration must be 
covered, (2) bindings on these products must be reduced  to a zero tariff level in a three year period, 
and (3) all other duties and charges (ODCs) must be  bound at zero.  Although the agreement does not 
provide for the possibility of exceptions to the pr oduct coverage, some participants (particularly 
developing countries) had an extended implementa tion period for some products.  The commitments 
assumed under the ITA were bound in each Participan t's Schedule on an MFN basis, and benefits 
therefore accrue to the entire WTO Membership.   
29. Paragraph 3 of the Annex to the Declaration states that ITA Participants shall meet 
periodically under the auspices of the Council for Trad e in Goods to review th e product coverage with 
a view to agreeing, by consensus,  whether in the light of technological developments, experience in 
applying the tariff concessions, or changes to the HS nomenclature, the product coverage should be 
expanded.  It also indicates that Participants shall consult periodically on non-tariff barriers to trade in information technology products.  Negotiations for the expansion of the product coverage of the ITA began in 1998.
69  Although no common understanding has been  reached to date in this regard, 
Participants continue to consult on the matter.  The NTM Work Programme (G/IT/19), which was 
launched in 2000, has progressed to draft guidelines for EMC/EMI c onformity assessment procedures 
(G/IT/W/12/Rev.2).  
30. The sectoral on Pharmaceutical products (Pharma) that was negotiated during the Uruguay 
Round indicated that Participants should review the product coverage every three years under the 
auspices of the Council for Trade in Goods, with a view to including by consensus additional 
pharmaceutical products for tariff elimination.  Two triennial reviews have taken place since then, one 
in 199670 and another one in 199871.  These reviews resulted in an increased number of 
pharmaceutical substances subject to a bound duty free tr eatment in the Schedules of the participants.  
A third review began in 2004.  
                                                      
66 In the context of the 1999 preparations for the Seattle Ministerial Conference, APEC put forward its 
"Accelerated Tariff Liberalization" (A TL) initiative on eight sectors, namely  chemicals, ener gy, environmental 
goods, toys, fish and fish products, medical equipment and instruments, gems and jewellery and forest products. 
(WT/GC/W/138/Add.1).  Chile and Mexico announced at the Vancouver 1997 meeting of APEC Leaders that they would not participate in the Early Voluntary Sect oral Liberalization (EVSL) initiative (WT/GC/W/138).  
67 WT/MIN(96)/16. 
68 When the assessment was made on 26 March 1997, it was determined that the 39 participants 
accounted for 92.5% of World trade in these products.  
69 See G/IT/SPEC/1-14.  The Secret ariat prepared a compilation of the proposals in G/IT/SPEC/15. 
70 G/MA/W/10. 
71 G/MA/W/18.  TN/MA/S/13 
 Page 11 
 
 
 31. In 1997 two Members bound at zero their tari ffs on "white" distilled spirits through the 
rectification-modification procedures, a tariff elimination that was presumably aimed at deepening and accelerating the Uruguay Round sectoral on "brown" distilled spirits.
72 
E. ACCESSIONS TO THE WTO73 
32. Most of the customs territories that have join ed the WTO under Article XII of the Marrakesh 
Agreement undertook, as a result of their accessi on negotiations, commitments commensurate with 
the so-called "zero-for-zero" and "harmonization" sectoral tariff initiatives of the Uruguay Round.  
Almost all of them formally joined the ITA.  The commitments of these Members, could be 
summarized as follows: 
a. Albania :  agricultural equipment, beer, chemicals,  construction equipment, distilled spirits, 
furniture, most medical equipment, paper, pharmaceuticals, most steel, toys and ITA;  
b. Armenia :  agricultural equipment, chemicals, most construction equipment, medical 
equipment, most paper, pharmaceuticals, steel and ITA; 
c. Bulgaria :  ITA (became participant after accession);  
d. China :  beer, furniture, some paper and toys, as well as the ITA; 
e. Croatia :  most agricultural equipment, beer, chemicals, most construction equipment, 
distilled spirits, most medical equipment,  most paper, some steel, toys and ITA; 
f. Estonia :  agricultural equipment, beer, chemicals,  aircraft, construction equipment, distilled 
spirits furniture, medical equipment, chemicals, paper, pharmaceuticals, steel, toys and ITA (became participant before accession);  
g. Former Yugoslav Republic of Macedonia (FYROM)
:  agricultural equipment, beer, most 
chemicals, construction equipment, distilled sp irits, medical equipment, most paper, toys 
and ITA. 
h. Georgia :  agricultural equipment, most chemicals, most construction equipment, ITA, 
furniture, most medical equipment, paper, steel and toys; 
i. Jordan :  agricultural equipment, most chemicals, most medical equipment, ITA, most steel 
and toys; 
j. Kyrgyz Republic :  agricultural equipment, chemicals, most construction equipment, ITA, 
most medical equipment, pharmaceuticals, paper, steel, toys and most furniture;  
k. Latvia :  beer, chemicals, distilled spirits, furnitu re, ITA, paper, toys, most agricultural 
equipment, construction equipment, most medical equipment, and steel; 
l. Lithuania :  agricultural equipment, beer, most ch emicals, construction equipment, distilled 
spirits, medical equipment, most paper, steel, toys and ITA;  
m. Moldova :  chemicals, most medical equipment, pharmaceuticals, toys and ITA; 
n. Mongolia :  chemicals; 
o. Oman:  chemicals, construction equipment, pharmaceuticals and ITA;  
p. Panama :  ITA; 
                                                      
72 G/MA/TAR/RS/18, Corr.1, Corr.2 and Corr.3 and G/MA/TAR/RS/30. 
73 This section is based on document WT/ACC/10/Rev.2. TN/MA/S/13 
Page 12  
 
  q. Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu
:  most agricultural 
equipment, beer, most chemicals, construction equipment,  distilled spirits, furniture, most 
medical equipment, paper, most steel, toys and ITA (became participant before accession); 
33. Nepal and Cambodia, the first two LDCs to  accede to the WTO, did not undertake any 
commitment matching the "zero for zero" or "harmonization" initiatives. 
IV. ELEMENTS IN A SECTORAL NEGOTIATION 
34. As the preceding sections demonstrate, sectoral  negotiations have take n many different forms 
throughout the rounds of trade negotiations.  This bi g diversity is probably explained by the varied 
nature of the problems addressed in each of these negotiations, as well as by the evolution of the 
bargaining process itself.    
35. The following paragraphs provide an overview of the main elements of past sectoral 
negotiations:  
a. Participation :  Although the majority of sectoral negotia tions that have taken place were of a 
voluntary nature, and resulted in bilateral/plurila teral agreements, it is worth noting that at 
least two of them were mandatory and taken up on a multilateral basis; namely the 
Agreement on Agriculture and the Agreement on Textiles and Clothing.  Sectoral 
negotiations have sometimes been  implemented in isolation (i.e. the ITA), while in other 
cases they have been part of "packages" in the context of rounds (i.e. during the Kennedy 
Round).  As to the level of development of the participants in the plurilateral negotiations, it 
would appear that least-developed countries have never being participants to them.  As to 
the rest, both developed and developing countri es have participated in plurilateral sectoral 
negotiations, but it would appear that the former have been more active than the latter.  Two 
of the early examples of developing countries pa rticipating in these types of negotiations are 
the 1967 agreement on Cereals as well as the ag reement on Civil Aircraft.  The ITA is 
currently the plurilateral sectoral with the hi ghest level of participation by developing 
countries.   
b. Product coverage :  The description of the product coverage has evolved since the first 
sectorals where only a general reference to the products was made without any specific indication as to the tariff codes in a particular nomenclature (i.e. Cereals).  It is however interesting to note that this "generic" appro ach to defining the product coverage was also 
used by ITA Participants in "Attachment B", products in which they had divergent opinions 
as to their classification.  The reference to specific codes appeared later in time and was 
facilitated by the generalized adoption of th e Harmonized System, which allowed for the 
first time to define product coverage in a common nomenclature for all participants.  
Besides the references to specific HS codes, par ticipants have also adopted other methods to 
describe the scope of the product coverage ra nging from the inclusion of "ex outs" (that 
identify partial coverage beyond the 6 digit sub- heading), to the allusion to non-trade related 
nomenclatures, such as the CAS and INN in the Uruguay Round sectoral on 
Pharmaceuticals.
74  As to the number of tariff lines in cluded in the sectoral initiatives, the 
scope has varied considerably ranging from a sectoral negotiation of one single product 
classified in one HS subheading (i.e. Beer), to sectoral negotiations dealing with several HS 
chapters (i.e. chemicals, paper).  It is finally  worth noting that participants have also aimed 
                                                      
74 See Annex 3.  TN/MA/S/13 
 Page 13 
 
 
 in some sectorals to include all stages of processing, as well as substitute and similar 
products, probably in order to avoid trade diversion and worsening tariff escalation.   
c. Target of tariff reduction :  Some of the early sectoral negotiations led to a lesser degree of 
liberalization than that obtained under the genera l rules, mainly because they were used to 
deal with sectors considered sensitive (i.e. agri culture and textiles).  While the first sectoral 
negotiations were used to ensure a balanced outcome of the tariff negotiations, the concept 
of "harmonization" soon followed.  Participan ts agreed under this modality to reduce their 
bound duties to a common level in a particular sector in order to ensure similar market 
access conditions.  This concept evolved furthe r during the Uruguay Round into the "zero 
for zero" sectoral negotiations where a dut y free harmonization was sought.  During the 
Tokyo Round suggestions were made that sectoral  initiatives could also be used to deal with 
tariff escalation, effective protection and tariff disparities. 
d. Implementation of results (staging) :  While the early sectorals simply adopted the general 
staging framework for the overall results of th e round (i.e. Kennedy Round), differentiated 
time frames soon followed.  Some of the most recent ones have even included the immediate 
implementation of the new commitments (i.e. Civi l Aircraft and Pharmaceuticals).  Finally, 
it is interesting to note that some form of special and differential treatment has also taken 
place in at least one sectoral negotiation (i.e. the ITA) where additional implementation periods were granted to some deve loping countries in some products.   
e. Non-tariff measures
:  While some sectorals dealt exclusively with tariff reductions (i.e. most 
of the UR "zero for zero" sectorals) others focused almost entirely on the non-tariff barriers 
affecting a sector (i.e. Cereals, Bovine Meat, Dairy Products).  Some sectorals even made 
explicit references to sector specific barriers that  would have to be eliminated by specific 
participants (i.e. Agreement Relating Principa lly to Chemicals of 1967).  Other sectorals 
dealt with both tariff and non-tariff barriers or established mechanisms to consult on the 
latter, such as the Agreement on Civil Aircraft and the ITA. 
f. Institutional arrangements :  Some sectoral agreements established formal bodies under the 
auspices of the GATT and the WTO (i.e. the Ag reement on Civil Aircraft, the Agreements 
on Bovine Meat, Dairy Products and the ITA) , while others lacked this institutional 
framework.  In the latter, the sectoral ag reement was usually superseded by the 
"multilateralization" of the new commitments th rough its inclusion in the final Schedules of 
the Participants.   
g. Conditions of entry into force :  In some cases, the entry into  force of a sectoral initiative was 
conditional upon one or more future steps by th e Participants.  For example, the Agreement 
Relating Principally to Chemicals of 1967 cont ained several measures that were conditional 
upon the elimination of a given measure by one of  the Participants.  Si milarly, the ITA used 
the "critical mass" concept to condition its entry into force upon the participation of 
countries and separate customs territories representing at least 90% of trade in IT products. 
h. Future actions :  Many of the sectorals were used in the past to negotiate tariff concessions in 
a given round.  That is, simply as an instru ment for modifying the Schedules of concessions 
or for eliminating a specific non-tariff barrier.  They did not specify any future action beyond the implementation of the tariff concessions.  Other sectorals, however, established long-term objectives or "work programmes" that included, inter alia , the expansion of the 
product coverage (i.e. the ITA and the Pharma) or the permanent assessment or consultation 
on non-tariff barriers affecting the sector (i.e. Dairy, Civil Aircraft, ITA).   
  TN/MA/S/13 
Page 14 
ANNEX 1 - SECTORAL NEGOTIATIONS D URING THE KENNEDY ROUND (1964-1967) 
 
Sector Product coverage Number of 
participants Target of tariff 
reduction Staging Non-tariff Meas ures Other / Result 
1. 
Aluminium No specific information is 
available No specific 
information is 
available Partial 
harmonization  The results were embodied in 
the Schedules of concessions 
of Participants. 
2. Chemicals 12 Chapters of the Brussels 
Tariff Nomenclature 8 GATT 
Contracting 
Parties A degree of 
harmonization to 
be achieved 
through a 50% 
cut, plus a cap of 
20% (some exceptions 
applied) Some parts of the Agreement were 
conditional upon the elimination of 
the American Selling Price (ASP) by 
the United States. 
 
The UK, EC-6, and Switzerland offered the elimination of some non-
tariff measures in exchange of the 
elimination of the ASP.  - The results were embodied 
in the Agreement relating 
principally to Chemicals 
(See BISD, 15S/8) 
 
- Required conversion of duties to ad valorem  
equivalents in order to apply 
the 20% cap. 
3. Cereals No specific information is 
available 12 GATT 
Contracting 
Parties None.    Discussed methods of support and 
other methods of protection.    
 Set contributions to a food aid 
program. 
 Set minimum and maximum prices 
in international trade for some of the 
grains. The results were embodied in 
the Memorandum of 
Agreement on Basic Elements for the 
Negotiations of a World 
Grains Arrangement (See BISD 15S/18) 
4. Cotton Textiles No specific information is 
available No specific 
information is 
available   The results were embodied in 
the Schedules of concessions 
of Participants. 
5. Dairy 
products 
(*) No specific information is 
available 
 
   Discussed government support and 
other methods of protection.    
 No common understanding 
was reached on this sectoral 
during the Kennedy Round. 
 
6. Fish (*) No specific information is 
available   Participants 
could chose 
between two options for 
overall staging 
of the 
commitments 
(including sectorals) as 
follows: 
 - If cuts were 
beginning  on 1 
January 1968, five equal 
annual cuts, or 
 - If cuts were 
beginning on 1 
July 1968, front loading of 2/5 of 
the cut the first 
year, no reduction in the 
second year and 
equal annual 
reductions from 
the third to the fifth year. 
 
 A proposal to negotiate non-tariff 
measures affecting this sector did 
not get consensus. 
 No common understanding 
was reached on this sectoral 
during the Kennedy Round. 
  
  TN/MA/S/13
 Page 15ANNEX 1 - SECTORAL NEGOTIATIONS D URING THE KENNEDY ROUND (1964-1967) 
 
Sector Product coverage Number of 
participants Target of tariff 
reduction Staging Non-tariff Meas ures Other / Result 
7. Meat (*) No specific information is 
available   Discussed government support and 
other methods of protection.    No common understanding 
was reached on this sectoral 
during the Kennedy Round.  
8. Motor 
vehicles Automobiles No specific 
information is 
available 50% cut  The results were embodied in 
the Schedules of concessions 
of Participants.. 
9. Non 
Ferrous 
Metals No specific information is 
available No specific 
information is 
available Some degree of 
harmonization 
  The results were embodied in 
the Schedules of concessions 
of Participants. 
10. Pulp and paper No specific information is 
available No specific 
information is 
available Some degree of 
harmonization 
  The results were embodied in 
the Schedules of concessions 
of Participants. 
11. Iron 
and steel 1 Chapter of the Brussels 
Tariff Nomenclature No specific 
information is available Some degree of 
harmonization to be achieved 
through 
differentiated percentage cuts for 
the Participants  
 The results were embodied in 
the Schedules of concessions of Participants. 
 
 Note : It is possible that other s ectoral negotiations took place but consensus was not reached on  them.  Since the negotiations for  the establishment of the HS 
Convention were concluded in 1988, it is not possible to obtain a common product coverage indicator for all participants.   
 
(*) Sectors where no common understanding was reached by Participants.     
 TN/MA/S/13 
Page 16 
  
ANNEX 2 - SECTORAL NEGOTIATIONS D URING THE TOKYO ROUND (1973-1979) 
 
Sector Product coverage Number of 
participants Target of tariff 
reduction Staging Non-tariff Meas ures Other / Result 
1. 
Automobiles No specific information is 
available No specific 
information is available    The results were embodied in 
the Schedules of concessions of Participants. 
2. Aluminium No specific information is 
available No specific 
information is 
available    The results were embodied in 
the Schedules of concessions 
of Participants. 
3. Bovine meat  1 four digit CCCN heading 
and 3 ex items. 
 
 27 Participants 
during the 
Tokyo Round General provision 
for the promotion 
of a greater 
liberalization and stability of the 
international meat 
and livestock market.   
No specific 
commitments for 
tariff reduction 
were included in the agreement. Not applicable. Ongoing mandate: In case the 
International Meat Council found 
that a serious market disequilibrium 
may affect international trade, it would proceed to identify possible 
solutions for consideration by 
participating governments. - The results of these 
negotiations were embodied 
in the Arrangement 
Regarding Bovine Meat  (See BISD 26S/84) 
 
- Established an International Meat Council that may 
expand product coverage. 
 
- The product coverage was 
later transposed to the Harmonized System (See 
BISD 36S) 
 - The agreement expired on
 
31 December 1994 and was replaced by a revised Agreement of 21 March 
1994.  The latter was 
included as a Plurilateral Agreement of the WTO, but 
was terminated at the end of 
1997 (See IMA/8).  
  
  TN/MA/S/13
 Page 17ANNEX 2 - SECTORAL NEGOTIATIONS D URING THE TOKYO ROUND (1973-1979) 
 
Sector Product coverage Number of 
participants Target of tariff 
reduction Staging Non-tariff Meas ures Other / Result 
4. Chemicals No specific information is 
available No specific 
information is 
available     The results were embodied in 
the Schedules of concessions 
of Participants. 
5. Civil 
Aircraft Product coverage defined 
in terms of products as: 
(a) all civil aircraft, 
(b) all civil aircraft 
engines and their parts and components, 
(c) all other parts, 
components, and sub-assemblies of civil aircraft, 
(d) all ground flight 
simulators and their parts and components, whether 
used as original or 
replacement equipment in the manufacture, repair, 
maintenance, rebuilding, 
modification or conversion of civil aircraft. 
 18 Participants 
during the 
Tokyo Round 
4 additional 
Participants since the 
Tokyo Round Tariff elimination Immediate 
implementation The provisions of the new 
Agreement on Technical Barriers to 
Trade would apply to trade in civil 
aircraft.  Also included 
commitments relating to: government procurement; 
eliminated all quantitative 
restrictions and import licensing requirements to restrict imports of 
civil aircraft in a manner 
inconsistent with applicable provisions of the GATT; and 
included provisions on government 
support, export credits and aircraft marketing. - The results of these sectoral 
were embodied in the 
Agreement on Trade in Civil 
Aircraft  
(See BISD, 26S/162). 
- Eliminated all other duties 
and charges. 
- A Committee on Trade In 
Civil Aircraft was 
established. 
-The product coverage was 
later expanded in 1984  
(See BISD, 31S/281) 
- The product coverage was 
transposed to the HS through 
the Protocol (1986) 
Amending the Annex to the Agreement on Trade in Civil 
Aircraft  
(See BISD, 34S/22) 
6. Coarse grains No specific information is 
available No specific 
information is 
available 
 
 
    The results were embodied in 
the Schedules of concessions 
of Participants.  
 TN/MA/S/13 
Page 18 
 ANNEX 2 - SECTORAL NEGOTIATIONS D URING THE TOKYO ROUND (1973-1979) 
 
Sector Product coverage Number of 
participants Target of tariff 
reduction Staging Non-tariff Meas ures Other / Result 
7. Dairy 
Products 4 four digit CCCN heading 
and 1 ex item 16 Participants 
during the 
Tokyo Round General provision 
for the promotion 
of a greater liberalization and 
stability of dairy 
products.   
No specific 
commitments for tariff reduction 
were included in 
the agreement. Not applicable. In case the International Dairy 
Council found that a serious market 
disequilibrium may affect international trade, it would proceed 
to identify possible solutions for 
consideration by participating 
governments. 
Minimum prices were set in special "protocols" for particular dairy 
products. 
 The results of these 
negotiations were embodied 
in the International Dairy Arrangement (See BISD 
26S/89.) 
 
- Established an International 
Dairy Products Council that may expand product 
coverage.   
 - The agreement expired on
 
31 December 1994 and was replaced by a new International Dairy 
Arrangement of 15 April 
1994 (See BISD/41).  The latter was included as a 
Plurilateral Agreement of the 
WTO, but was terminated at the end of 1997 (See IDA/8). 
8. Steel Not defined. OECD 
members None Not applicable The Committee objectives would 
include, inter alia , to encourage the 
reduction of barriers to trade, facilitate structural  adjustment in the 
sector, and to avoid encouraging 
economically unjustified 
investments on the sector. Some Contracting Parties 
decided to set up a Steel 
Committee under the auspices of the OECD.  The 
mandate of this Committee 
was included as an annex to 
MTN/INF/33. 
 
 Note : It is possible that other sectoral ne gotiations took place, but  consensus was not reached on them.  Since the negotiations fo r the establishment of the 
HS Convention concluded in 1988, it is not possible to obtain a common product coverage indicator for an earlier period.    
  
  TN/MA/S/13
 Page 19 
ANNEX 3 - SECTORAL NEGOTIATIONS D URING THE URUGUAY ROUND (1986-1994) 
 
Sector Tariff items in product 
coverage /1 Number of 
participants Target of tariff 
reduction Staging Non-tariff Measures Other / Result  
1. Agricultural 
Equipment 3 HS headings and 1 ex 
item 10 Participants 
during the 
UR/2;  
11 additional Participants 
since the end 
of the UR. 
 Tariff 
elimination 5 years None The results were embodied in the 
Schedules of concessions of 
Participants. 
2. Beer 1 HS subheading 6 Participants 
during the UR
/2;  
8 additional 
Participants since the end 
of the UR. Tariff 
elimination 8 years 
 None The results were embodied in the 
Schedules of concessions of Participants. 
3. Chemicals Chapters 28 to 39 of the 
HS, except those tariff lines contained in Annex 
1 of the Agreement on 
Agriculture 10 Participants 
during the UR
/2; 
14 additional 
Participants since the end 
of the UR. Harmonization 
as follows: 
-1 HS Chapter and 
3 HS heading at 
0% 
-1 HS Chapter and 
13 HS headings at 
5.5% 
-9 HS Chapters 
and 27 HS 
headings at 6.5%  Different staging 
according to base level as follows: 
 
10% or less:  5 years 
>10% - 25%: 10 
years 
>25%: 15 years  None - Reduction to begin from applied 
MFN rates  
- Applied rates currently below 
harmonization levels to remain the same or be reduced further. 
4. Civil aircraft 26 HS subheadings, if 
products are for use in a civil aircraft and 
incorporation therein.  Tariff 
elimination Immediate See Annex 2 on Tokyo 
Round. -Expanded the product coverage of 
the Agreement on Trade in Civil Aircraft that was negotiated during 
the Tokyo Round.   
 - All other duties and charges were 
eliminated.  
 TN/MA/S/13 
Page 20 
 ANNEX 3 - SECTORAL NEGOTIATIONS D URING THE URUGUAY ROUND (1986-1994) 
 
Sector Tariff items in product 
coverage /1 Number of 
participants Target of tariff 
reduction Staging Non-tariff Measures Other / Result  
 
- The product coverage was 
transposed to the HS 2002 through 
the Protocol (2001) Amending the Annex to the Agreement on Trade 
in Civil Aircraft  
(See TCA/4) 
5. Construction 
equipment 5 HS headings, 3 
subheadings and one ex 
item. 9 Participants 
during the 
UR/2; 
11 additional Participants 
since the end 
of the UR. Tariff 
elimination 5 years None The results were embodied in the 
Schedules of concessions of 
Participants. 
6. Distilled 
spirits (brown) 3 HS subheadings 7 Participants 
during the 
UR/2; 
7 additional 
Participants 
since the end of the UR. Tariff 
elimination 
 10 years None The results were embodied in the 
Schedules of concessions of 
Participants. 
7. Electronics 
(*) 
 No specific information is 
available  Tariff 
elimination was 
proposed  Some participants 
conditioned their 
participation to the results of the Agreement on 
Government Procurement No common understanding was 
reached on this sectoral during the 
Uruguay Round. 
8. Fisheries (*) 1 HS Chapter, 4 HS 
headings (with some exceptions) and 1 HS 
Subheading 
  
  Tariff 
elimination was 
proposed  Discussed commitments on 
NTBs and government support programs, including 
its reduction.  No common understanding was 
reached on this sectoral during the Uruguay Round.  
  TN/MA/S/13
 Page 21ANNEX 3 - SECTORAL NEGOTIATIONS D URING THE URUGUAY ROUND (1986-1994) 
 
Sector Tariff items in product 
coverage /1 Number of 
participants Target of tariff 
reduction Staging Non-tariff Measures Other / Result  
9. Furniture 17 HS subheadings and 1 
ex item. 9 Participants 
during the 
UR/2; 
7 additional Participants 
since the end 
of the UR. Tariff 
elimination 5 years None The results were embodied in the 
Schedules of concessions of 
Participants. 
10. Medical 
equipment 6 HS headings, 6 HS 
subheadings and 3 ex 
items 9 Participants 
during the 
UR/2; 
12 additional Participants 
since the end 
of the UR. Tariff 
elimination 5 years None The results were embodied in the 
Schedules of concessions of 
Participants. 
11. Non ferrous 
metals (*) 8 HS Chapters  Tariff 
elimination was 
proposed  Some sector specific NTBs 
were discussed No common understanding was 
reached on this sectoral during the 
Uruguay Round. 
12. Paper 3 HS Chapters 7 Participants 
during the 
UR/2; 
10 additional Participants 
since the end 
of the UR. Tariff 
elimination 10 years Some sector specific NTBs 
were discussed bilaterally The results were embodied in the 
Schedules of concessions of 
Participants. 
13. Pharmaceuti
cals75 Product coverage is 
defined as one HS 
Chapter; 4 HS headings; 
all active ingredients which have an 
international non-10 Participants 
during the 
UR
/2; 
1 additional Participant 
since the end Tariff 
elimination First day of 
implementation There is a general provision 
on NTBs - Participants agreed to review the 
product coverage every three years 
under the auspices of the Council for Trade in Goods with a view to 
including by consensus additional 
products for tariff elimination. 
 
- All other duties and charges (ODCs)  
                                                      
75 Communication by the EC, GATT doc. L/7430  
 TN/MA/S/13 
Page 22 
 ANNEX 3 - SECTORAL NEGOTIATIONS D URING THE URUGUAY ROUND (1986-1994) 
 
Sector Tariff items in product 
coverage /1 Number of 
participants Target of tariff 
reduction Staging Non-tariff Measures Other / Result  
proprietary name (INN) 
from the World Health 
Organization; plus other 
products described in 4 annexes, including 
products used for the 
production and manufacture of finished 
pharmaceuticals 
 of the UR
. 
 
 to be eliminated 
 
- Each government's national customs 
authority  may require importers to 
provide one or more of the following:  
(i) HS 6 digit classification  
(ii) Chemical description,  
(iii) INN,  (iv) Chemical Abstracts Service (CAS) 
Registry Number (RN);  
(v) Prefix or suffix of the 
salt/ester/hydrate (if applicable). 
 
- Two revisions have taken place to date.
76  (See Annex 4). 
14. Steel 33 HS headings and 3 ex 
items 8 Participants 
during the 
UR/2; 
9 additional 
Participants 
since the end of the UR. Tariff 
elimination 
 5 years Subsidies and other NTBs 
were discussed. The results were embodied in the 
Schedules of concessions of 
Participants. 
15. Wood 
products (*) 1 HS Chapter, with some 
exceptions  Tariff 
elimination was 
proposed  Some sector specific NTBs 
were discussed bilaterally. No common understanding was 
reached on this sectoral during the 
Uruguay Round. 
16. Toys 5 HS headings 5 Participants 
during the 
UR/2; 
11 additional 
Participants 
since the end of the UR. Tariff 
elimination 10 years  The results were embodied in the 
Schedules of concessions of 
Participants. 
 
                                                                                                                                                                                                                                             
76 See G/MA/W/10 and G/MA/W/18.  
  TN/MA/S/13
 Page 23 Note : It would appear that additional sectoral negotiations were proposed on ceramics, cigars, footwear and leather goods, glasswar e, musical instruments, 
oilseeds, photographic film, rubber, scientific  instruments, textiles and clothing, and white spirits.  However, the Secretaria t has no specific information about them.  
The following definitions are used in the table:  "heading" refers  to a HS tariff item at the 4 digit level; "subheading" refer s to a HS tariff items at the 6 digit level; "ex 
item" refers to a subset of products beyond the HS 6 digit level.  It should finally be noted that the number of Participants t o some of these sectorals could increase due 
to the enlargement of the European Union to 25 member States a nd the establishment of a new Schedule as proposed by theEC in G/ SECRET/20. 
 
 (*) Sectors where no common understanding was reached by Participants.    
 
 /1 The WTO Secretariat cannot en sure that the summarized product coverage is en tirely accurate or complete.  See Annex 5 for a  listing of the product 
coverage. 
 /2 Counting the EC-15 as one 
  
 TN/MA/S/13 
Page 24 
  
ANNEX 4 - POST URUGUAY ROUND DEVELOPMENTS ON  SECTORAL NEGOTIATION S (1995 – TO DATE) 
 
Sector Tariff items in 
product coverage  Number of 
participants Target of 
tariff 
reduction Staging Non-Tariff 
Measures Other / Result 
1. Information 
Technology 
Agreement 
(ITA) The ITA has two parts: 
 
-Attachment A is divided 
in two sections that include, overall, 10 HS 
headings, 98 HS 
subheadings and 95 ex items.   
-Attachment B lists 15 
specific products to be covered by an ITA 
Schedule for tariff 
elimination, wherever they are classified in the 
HS.  Thus, product 
coverage measured in 
terms of tariff lines could 
differ between Participants. 41 Participants, 
counting 
Switzerland and 
Liechtenstein individually, and 
the EC-25 as one. Tariff 
elimination 3 years.  
Additional 
time was 
granted to developing 
country 
participants in some 
products.   The agreement 
notes that 
participants shall 
meet periodically under the auspices 
of the Council for 
Trade in Goods to consult on non-tariff 
barriers to trade in 
information technology 
products. - The ITA agreement is embodied in 
WT/MIN(96)/16. 
- Entering into force was conditioned to the 
acceptance of participants representing approximately 90 per cent of world trade. 
- Participants undertook to eliminate all other 
duties and charges (ODCs). 
- Participants shall meet periodically under the 
auspices of the Council for Trade in Goods to 
review the product coverage, with a view to agreeing, by consensus, whether in the light of 
technological developments, experience in 
applying the tariff concessions, or changes to the HS nomenclature, product coverage should 
be expanded.   
2. ITA II (*) N.A. N.A. Tariff 
elimination N.A. See above. Negotiations for the expansion of the product 
coverage of the ITA began in 1997.77 
 Currently, no common understanding has been 
reached by Participants to increase the product 
coverage.  However, Part icipants continue to 
consult on the matter. 
 
 
                                                      
77 See G/IT/SPEC/1-14.  The Secret ariat prepared a compilation of the proposals in G/IT/SPEC/15.  
  TN/MA/S/13
 Page 25ANNEX 4 - POST URUGUAY ROUND DEVELOPMENTS ON  SECTORAL NEGOTIATION S (1995 – TO DATE) 
 
Sector Tariff items in 
product coverage  Number of 
participants Target of 
tariff 
reduction Staging Non-Tariff 
Measures Other / Result 
3. Pharmaceuti
cals – First review The annexes from the UR 
were replaced by a revised version.  
 
Participants added new 
products to the different 
annexes.     See above
/1 Tariff 
elimination Immediate See above. Participants met to negotiate the expansion of 
the product coverage between 30 November 1995 – 11 July 1996.  The outcome was 
informed to WTO members in G/MA/W/10. 
4. Pharmaceuti
cals – Second 
review Added approximately 639 
products to the annexes 
(not tariff lines).    See above/1 Tariff 
elimination Immediate See above. Participants met to negotiate the expansion of 
the product coverage between 3 April 1998 to 
October 1998.  The outcome was informed to WTO Members in G/MA/W/18. 
 
5. Distilled 
spirits (White) Approximately 35 ex 
items in one participant and  50 ex items in the 
other participant
./2 Two Tariff 
elimination   The results were embodied in the Schedules of 
concessions of Participants through a rectification-modification procedure.   
 
Tariff elimination of brown spirits was accelerated. 
 
 Note :  The following definitions are used in th is table:  "heading" refers to HS tari ff items at the 4 digit level; "subheading" re fers to HS tariff items at the 6 
digit level; "ex item" refers to a subset of products beyond the HS 6 digit level. 
 
 (*) Sectors where no common understanding was reached by Participants.    
 
 /1 The number of Participants of this sector has been modified  due to the enlargement of the European Union.  Current particip ation is of 30, counting the 
EC-25 member States of the individually. 
 /2 The difference in number of tariff lines is due to the di fferent breakouts implemented by participants at the national leve l beyond 6 digits. 
 TN/MA/S/13 
Page 26  
 
  
ANNEX 5 - PRODUCT COVERAGE OF SUCCESSFUL PLURILATERAL SECTORAL 
NEGOTIATIONS DURING THE URUGUAY ROUND 
 
HS92 item 
 Product description 
1. Agricultural Equipment (Tariff elimination) 
8432 Agricultural, horticultural, or forestry machinery for soil preparation or cultivation; lawn 
or sports-ground rollers; parts thereof 
8433 Harvesting or threshing machinery, including straw or fodder balers; grass or hay 
mowers; machines for cleaning, sorting or grading eggs, fruit or other agricultural 
produce, other than machinery of heading 8437, parts thereof 
8434 Machinery for sorting, screening, separati ng, washing, crushing, grinding, mixing, or 
kneading earth, stone, ores or other mineral substances, in solid (including powder or 
paste) form; machinery for agglomerating, shaping or molding solid mineral fuels, 
ceramic paste, unhardened cements, plastering materials or other mineral products in powder or paste form; machines for forming foundry molds of sand; parts thereof 
ex8701.90 Agricultural tractors 
2. Beer (Tariff elimination) 
2203 Beer 
3. Chemicals (Harmonization) 
Chapters 28-39 
of the 
Harmonized System Product coverage does not in clude HS items contained in Annex 1 of the Agreement on 
Agriculture. 
5. Construction Equipment (Tariff elimination)  
8425 Pulley tackle and hoists other than skip hoists; winches and capstans 
8426 Derricks; cranes, including cable cranes, m obile lifting frames, straddle carriers and works 
trucks fitted with a crane 
8428 Other lifting, handling, loading or unloading machinery (For example, elevators, escalators, 
conveyors, teleferics) 
8429 Self-propelled bulldozers, angledozers, grad ers, levelers, scrapers, mechanical shovels, 
excavators, shovel loaders, tamping machines and rollers 
8430 Other moving, grading, leveling, scraping, excavating, tamping, compacting, extracting or 
boring machinery, for earth, minerals or ores; pile-drivers and pile-excavators; snow-
ploughs and snow-blowers 
Ex 8431 Parts suitable for the use solely or principally with the machinery of headings 8425 to 8430, 
except 8431.2.0 (parts for 8427 fork lift trucks) 
8479.10 Machinery for public works, building or the like 
8701.30 Track-laying tractors 
8704.10 Dumpers designed for off-highway use 
6. Distilled Spirits (Brown) (Tariff elimination)  
2208.20  Brandy 
2208.30  Whiskey  TN/MA/S/13 
 Page 27 
 
 
 HS92 item 
 Product description 
2208.90 Fruit brandy 
7. Furniture (Tariff elimination)  
ex9401.10  Seats for aircraft, not alread y covered by the civil aircraft code 
9401.30 Swivel seats with variable height adjustment 
9401.40 Seats other than garden seats or camping equipment, convertible into beds 
9401.50 Seats of cane, osier bamboo or similar materials 
9401.61 Other seats with wooden frames, upholstered 
9401.69 Other seats with wooden frames, not upholstered 
9401.71 Other seats with metal frames, upholstered 
9401.79 Other seats with metal frames, not upholstered  
9401.80 Other seats 
9401.90  Parts 
9403.10 Metal furniture for offices 
9403.20 Other metal furniture 
9403.30 Wooden furniture for offices 
9403.50 Wooden furniture for kitchens 
9403.60 Other wooden furniture 
9403.70 Furniture of plastics 
9403.80 Furniture of other materials including cane, osier bamboo and similar materials 
9403.90  Parts 
8. Medical equipment (Tariff elimination)  
2844.40 Radioactive elements and isotopes and compounds 
3822 Composite diagnostic or laboratory reagents other than those of heading 3002 or 3006 
8419.20 Medical, surgical or laboratory sterilizers 
ex8419.90 (Parts for 8419.20) 
ex8543.80 (Electrical nerve stimulation -- t.e.n.s.) 
8713 Invalid carriages, whether or not moto rized or otherwise mechanically propelled 
8714.20 Parts and accessories of vehicles of h eadings 8711 to 8713: of invalid carriages 
9018 Instruments and appliances used in medical, surgical, dental or veterinary sciences, 
including scintigraphic apparatus, other electro-medical apparatus and sight-testing 
instruments; parts an d accessories thereof 
9019 Mechano-therapy appliances; massage apparatus; psychological aptitude-testing apparatus; 
ozone therapy, oxygen therapy, aerosol therapy,  artificial respiration or other therapeutic 
respiration apparatus; parts and accessories thereof 
9021 Orthopedic appliances; splints; artificia l parts of the body; hearing aids; parts and 
accessories thereof 
9022.11 X-ray machines for medical, surgical, dental or veterinary uses 
9022.19 X-ray machines for other uses 
9022.21 Alpha, beta or- gamma ray machines for medical, dental, surgical or veterinary uses 
Ex9025.11 Clinical or veterinary thermometers 
9402 Medical, surgical, dental or veterinary furniture; parts thereof 
 TN/MA/S/13 
Page 28  
 
 HS92 item 
 Product description 
 
 
9. Paper (Tariff elimination)  
Chapters 47, 48, 
and 49 Note: No further description was provided  
10. Steel  (Tariff elimination)  
7206.10 Note: No further description was provided  
7207  
7208  
7209  
7210  
7211  
7212  
7213  
7214  
7215  
7216  
7217  
7218  
7219  
7220  
7221  
7222  
7223  
7224  
7225  
7226  
7227  
7228  
7229  
7301  
7302  Excluding 7302.30.00 
7303  
7304  
7305  
7306  
ex7307.22 Couplings 
ex7307.92 Couplings 
7308  
7312   TN/MA/S/13 
 Page 29 
 
 
 HS92 item 
 Product description 
7313  
7314  
7317  
11. Toys (Tariff elimination)  
9501 Note: No further description was provided  
9502  
9503  
9504  
9505  
12. Pharmaceuticals (Note: Partial description of the coverage) 78 
Chapter 30  
2936 Except dihydrostreptomycin and salts, esters, and hydrates thereof 
2937 Except dihydrostreptomycin and salts, esters, and hydrates thereof 
2949 Except dihydrostreptomycin and salts, esters, and hydrates thereof 
2941 Except dihydrostreptomycin and salts, esters, and hydrates thereof 
 
Note :  Based on non-official documents.  The WTO Secretariat did not prov ide assistance to the 
Participants in negotiating these plurilateral sectoral initiatives and it cannot, ther efore, guarantee that the 
product coverage described herein is entirely accurate.  Th is Annex should be considered of an indicative nature 
only. 
                                                      
78 The complete product coverage of the Sectoral  on Pharmaceuticals can be found in GATT doc. 
L/7430 and in WTO doc. G/MA/W/10.  It includes all active ingredients which bear an international non-
proprietary name (INN) from the World Health Organization;  plus other products described in 4 Annexes, which 
includes products used for the production and manufacture of finished pharmaceuticals. TN/MA/S/13 
Page 30  
 
 List of non-official sources
 
 Alting Von Geusau, F., Economic Relations After the Kennedy Round , John F. Kennedy 
Institute, Centre for Atlantic  Studies, Netherlands, 1969. 
 Casodio, G. P., Transatlantic Trade: USA – EEC Conf rontation in the GATT Negotiations , 
Saxon House ed., England, 1973 
 European News Agency, The Tokyo-Round: Trade Issues at Stake , 2 volumes, Belgium, 1975 
 Glick, L.A ., Multilateral Trade Negotiations: World Trade After the Tokyo Round , USA, 
1984. 
 Hoda, A., Tariff Negotiations and Renegotiations und er the GATT and the WTO: Procedures 
and Practices , Cambridge, 2001 
 Preeg, E., Traders and Diplomats: An analysis of th e Kennedy Round of negotiations under 
the General Agreement on Tariffs and Trade , The Brooking Institution, Washington DC, 1970. 
 Report by the President of the Board of Trade to the Parliament of the United Kingdom, The 
Kennedy Round of Trade Negotiations 1964-67,  London, 1967 
 Secretaría del GATT, Las Negociaciones Comerciales Multila terales de la Ronda de Tokio , 
Ginebra, 1979 
__________