WORLD TRADE  
ORGANIZATION  TN/AG/GEN/19 
8 June 2006 
 
 (06-2759) 
Committee on Agriculture 
Special Session Original:   Spanish 
 
 
 
PROPOSALS ON MODALITIES AND IMPLEMENTATION FOR 
THE FULLEST LIBERALIZATION OF TROPICAL AND 
ALTERNATIVE PRODUCTS 
 
Communication from Colombia, Costa Rica, Guatemala and Panama  
   The following communication, dated 7 June 2006, is being circulated at the request of the 
delegations of Colombia, Costa Rica, Guatemala and Panama. 
 
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 1. This document develops the various points raised in document JOB(06)/129, which is a 
response to the questions of the Chairman of th e Special Session of the Committee on Agriculture. 
2. With a view to the adoption and implementa tion of modalities, we are submitting operational 
proposals aimed at fulfilling the long-standing commitm ent to achieve the fullest liberalization of 
trade in tropical agricultural products and for produc ts of particular importance to the diversification 
of production from the growing of illicit narcotic crops (alternative products) as set forth in 
paragraph 43 of the 2004 Framework. 
3. According to the 2004 Framework, the modalitie s adopted by the developed countries should 
achieve "the fullest liberalization of tr ade" in tropical and alternative products. 
Operationalization of "the fullest liberalization" in the formula 
 
4. What, concretely, does " the fullest liberalization of trade " in the modalities and 
implementation involve if we are to fulfil the mand ate set forth in paragraph 43 of the Framework?  
The modalities must bring about tariff reductions that  are substantially more ambitious than those 
adopted in each one of the bands of the general formula as a result of the agriculture negotiations. 
Tariff escalation 
 
5. According to the July Framework, " progressivity in tariff reducti ons will be achieved through 
deeper cuts in higher tariffs ".  Tropical products probably represent one of the areas in which tariff 
escalation is most obvious, and acts as a constraint fo r the developing countries, which have to focus 
their efforts and their exports on unpr ocessed goods, which are less profitable. 
6. The modalities for tropical and alternative produc ts subject to tariff escalation should provide 
for deeper tariff cuts for pro cessed and semi-processed products th an for primary tropical and 
alternative products. TN/AG/GEN/19 
Page 2  
 
  Treatment 
 
7. Taking as a basis the structure of the formula adopted in the Hong Kong Declaration, a four-
band tiered formula, the treatment for the " fullest liberalization " of tropical and alternative products 
would be as follows: 
 - Taking the example of the G-20 tariff reduction formula as an indicator: 
 
Developed Countries 
Band Thresholds Linear cuts 
1 0 ≤  20 45% 
2 > 20 ≤  50 55% 
3 > 50 ≤  75 65% 
4 > 75 75% 
 
 - Tropical and alternative products must have the maximum cut possible under the 
formula.  The maximum cut corresponds to the percentage reduction in the fourth 
band of the tiered formula.  Thus, if we were to agree on the formula proposed by the 
G-20, tropical and alternative products w ith band 1 tariff levels would be cut by 
75 per cent. 
  - The same tariff cut of 75 per cent would apply to tropical and alternative products 
with band 2, 3 and 4 tariff levels. 
 
 - For tropical and alternative products subject to tariff escalation, the cut would 
correspond to the band 4, plus an additional cut of 10 per cent, bringing the total cut to 85 per cent (75 per cent plus 10 per cent). 
 8. According to the proposed treatment, the structur e of the tariff reduction formula for tropical 
and alternative products would be as follows: 
Developed Countries 
Band Thresholds Linear cuts for 
tropical and 
alternative 
products 
1 0 ≤  20 75% 
2 > 20 ≤  50 75% 
3 > 50 ≤  75 75% 
4 > 75 75% 
  TN/AG/GEN/19 
 Page 3 
 
 
  9. The formula would be applied to tropical and alternative products subject to tariff escalation 
according to the following structure: 
Developed Countries 
Band Thresholds Linear cuts for 
tropical and 
alternative 
products 
1 0 ≤  20 85% 
2 > 20 ≤  50 85% 
3 > 50 ≤  75 85% 
4 >  75 85% 
 
10. Implementation of the modalities providing for the fullest liberalization of tropical and 
alternative products must be achieved over a shorte r period, amounting to half of the implementation 
period granted to the developed countries. 
Tropical and alternative products cannot be in cluded in the lists of sensitive products of 
developed countries 
 
11. Fullest liberalization of tropical and alterna tive products implies, by definition, greater 
liberalization than provided for as a general ru le under the formula for export products from 
developing countries.  Consequently, the " fullest liberalization " is clearly incompatible with the 
flexibilities granted to developed countries in order to spare certain products  the treatment provided 
for under the formula. 
12. The modalities for the selection and treatment of sensitive products must explicitly state that 
tropical and alternative products cannot  be included in the list of sensitiv e products.  This must also be 
mentioned in the modalities for tr opical and alternative products. 
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