WORLD TRADE  
ORGANIZATION  TN/AG/25 
22 March 2010 
 (10-1534) 
Committee on Agriculture 
Special Session  
 
 
 
NEGOTIATING GROUP ON AGRICULTURE 
 
Report by the Chairman, H.E. Mr. David Walker,  
to the Trade Negotiations Committee for the Purpose of the TNC stocktaking exercise  
 
22 March 2010 
  
1. This report is presented entirely on my own responsibility. 
2. In the period since I assumed the role of Chai r in April 2009, the Committee on Agriculture in 
Special Session (hereinafter referred to as the Negot iating Group) has undertaken two broad streams 
of work: 
(a) I have undertaken consultations on the i ssues that are bracketed or otherwise 
annotated in the documentation before the Negotiating Group – TN/AG/W/4/Rev.4 
together with TN/AG/W/5, TN/AG/W/6 and TN/AG/W/7;  and 
(b) The Negotiating Group has worked on the technical development of "Templates" for 
the presentation of data, both that requir ed for the establishment of Modalities and 
that required for the eventual scheduling of commitments, based on draft modalities as contained in TN/AG/W/4/Rev.4. 
3. This work was intensified from September 2009 c onsistent with the programme of work for 
DDA negotiations overall then drawn up with the participation of Senior Officials. 
4. The Negotiating Group has also separately undert aken some substantive discussion of data 
requirements associated with TN/AG/W/4/Rev.4. 
5. This report covers each of these activities in turn. 
6. I have also advised Members that I am available to hear from them individually or 
collectively regarding any technical ambiguity they consider exists, or technical clarification they 
consider is needed, in the text of TN/AG/W/4/Rev.4. 
I. CHAIR'S CONSULTATIONS ON ISSUES BRACKETED OR OTHERWISE 
ANNOTATED IN DOCUMENTATION BEFORE THE NEGOTIATING GROUP 
7. I undertook consultations on ten categories of issues that are bracketed or otherwise annotated 
in the documentation as identified in (i) above.  These are presented below in the order they appear in 
TN/AG/W/4/Rev.4, which is also the order in which I undertook initial consultations. 
8. The objective of this work was to help Me mbers build consensus towards concluding 
Modalities in Agriculture. TN/AG/25 
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  9. It was recognised at the outset that the issues identified potentially differed in nature and in 
the state of their preparation in the documentation before the Negotiating Group.  It was nevertheless 
considered useful to, where necessary and as far as possible, advance technical understanding and 
framing of issues in preparation for when decisions could be taken. 
10. In my assessment this judgement has been borne out in practice albeit, to this point, Members 
have not been in a position to substantively resolve matters. 
A. B
LUE BOX – PRODUCT -SPECIFIC LIMITS (PARAGRAPH 42, TN/AG/W/4/R EV.4) 
11. Consultations indicate that no further technical  preparation is required for the eventual 
decision to be taken with respect to th e bracketed numbers in this paragraph. 
B. COTTON (PARAGRAPHS 54/55  AND CHAIR 'S INTRODUCTION , TN/AG/W/4/R EV.4) 
12. Consultations confirm that not all Members are in a position to agree to the text as drafted but 
no new contributions, technical or substantive, ha ve been forthcoming in consultations to date. 
13. All Members involved, however,  have emphasised that they remain committed to finding a 
solution that addresses the issue of cotton "ambiti ously, expeditiously and specifically" consistent 
with the commitments made at the Hong K ong Ministerial Conference in December 2005. 
14. It has also been suggested that Ministeria l-level contacts that have taken place between 
particular Members in recent months have been  useful in enhancing understanding of respective 
perspectives. 
C. SENSITIVE PRODUCTS – DESIGNATION (PARAGRAPH 71, TN/AG/W/4/R EV.4 AND 
TN/AG/W/5) 
15. The annotation to paragraph 71 reads "Japan a nd Canada have declared themselves not to be 
in a position to agree to this [the right of devel oped country Members to designate up to 4 percent of 
tariff lines as "Sensitive Products"] limitation". 
16. Consultations confirm that Japan and Cana da are still seeking flexibility to designate 
additional tariff lines under the "Sensitive Products" category. 
17. It remains to be seen whether Members are pr epared to agree any further flexibility in 
designation of "Sensitive Products" beyond that alread y provided in paragraph 71 and, if so, what 
payment would be required for such designation. 
18. I understand consultations will continue amongst interested Members on a "without 
prejudice" basis, including on how any differentia l tariff quota expansion requirements might be 
allocated across different tariff lines. 
D. TARIFF CAP (PARAGRAPH 76, TN/AG/W/4/R EV.4 AND TN/AG/W/5) 
19. Views remain sharply divided on whether there should be an exception allowing the 
maintenance of tariffs in excess of 100 percent ad  valorem on products outsi de a Member's overall 
"Sensitive Product" entitlement. 
20. Differing views have also been expressed on th e appropriateness of the payment options in 
the bracketed text in paragraph 76, we re any such exception to be granted.  TN/AG/25 
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  E. TARIFF QUOTA CREATION (PARAGRAPH 83, TN/AG/W/4/R EV.4 AND TN/AG/W/6) 
21. While views remain divided on whether such fl exibility should be a fforded, consultations 
indicate a general willingness to continue technical discussion, on a "without prejudice" basis, based 
on TN/AG/W/6. 
22. There is a sense that the operability of criteria contained in TN/AG/W/6 is difficult to 
conceive in the abstract and that discussion may benefit from further factual clarification – for 
example in respect of which products amongst thos e for which consumption data has been submitted 
pursuant to Annex C of TN/AG/W/4/Rev.4 are not currently subject to tariff quotas. 
23. Transparency more generally remains a key element in Members' consideration of this issue. 
F. TARIFF SIMPLIFICATION (PARAGRAPH 104,  TN/AG/W/4/R EV.4) 
24. Consultations have involved an initial tec hnical discussion on how the "or" option in 
paragraph 104 of TN/AG/W/4/Rev. 4 would be operationalised th rough the other provisions of 
paragraphs 103 – 108 of TN/ AG/W/4/Rev.4 together with the associated Annex N. 
25. Questions were raised, in this context, con cerning some apparent differences in terminology 
between the text of paragraphs 104 – 108 and Annex N and about th e interrelationship of envisaged 
procedures between the text and the Annex.  Th ese issues will need to be further clarified. 
26. Members were also interested in how proposed simplification would work in practice.  The 
European Union provided an overview presentati on, in an open-ended setting, on its proposed 
simplifications to the Meursing table. 
27. More broadly, Members expressed interest to  continue discussions amongst themselves to 
better understand how proposed simplificati ons would work in concrete terms. 
G. SPECIAL PRODUCTS (PARAGRAPH 129,  TN/AG/W/4/R EV.4) 
28. The annotation to paragraph 129 reads "A number of developing country Members have 
expressed reservations concerning the numbers specified  in this paragraph, noting also that this may 
be affected by what is decided in other areas of the text". 
29. Consultations indicate that this annotation remains factually correct. 
30. Some Members expressed concerns about the potential export impacts of the treatment 
provided in paragraph 129.  Othe r Members considered that the pa ragraph should be regarded as 
"stabilised". 
H. SPECIAL SAFEGUARD MECHANISM – SSM  (PARAGRAPHS 144/145,  TN/AG/W/4/R EV.4 AND 
TN/AG/W/7) 
31. Consultations to date have benefitted from anal ytical contributions on various elements of a 
possible SSM architecture from a range of Members, including a number of contributions that have 
been circulated to all Members as JOB documents. 
32. These contributions have covered issues such  as price and volume cross-check, seasonality, 
price-based SSM, flexibilities for Small, Vu lnerable Economies (SVEs), and pro-rating. TN/AG/25 
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  33. Initial technical exchanges have been undert aken on the issues of seasonality, price and 
volume cross-check, and price-based SSM.  A number of questions were raised on the existing analytical papers and there are indications that ther e may be further analytical contributions to come 
from others on these issues. 
34. Papers recently circulated on flexibilities for SVEs and pro-rating were introduced but 
Members indicated they would need some time to st udy the papers before be ing in a position to enter 
into technical discussion on these issues. 
35. The SSM is clearly one of the more politically charged issues under discussion.  
Consultations suggest it is arguably also the most complex. 
36. The importance of further focussed analysis and discussion has been highlighted to contribute 
to the development of shared understanding to  underpin the compromises necessary for the 
establishment of a "fit for purpose" mechanism. 
I. T
ROPICAL AND DIVERSIFICATION PRODUCTS (PARAGRAPH 148 AND ANNEX G, 
TN/AG/W/4/R EV.4); LONG-STANDING PREFERENCES AND PREFERENCE EROSION 
(PARAGRAPH 149 AND ANNEX H, TN/AG/W/4/R EV.4) 
37. There have been significant developments in these areas. 
38. In December, WTO Director General Pascal Lamy and I received the following 
communications: 
(a) A letter, dated 15 December 2009, from the European Union, the ACP countries, 
Brazil, Colombia, Costa Rica, Ecuador, Guatemala, Honduras, Mexico, Nicaragua, 
Panama, Peru, and Venezuela conveying the text of a proposed DDA modality 
applicable to tariff reductions by the EU on bananas;  and 
(b) A letter, dated 15 December 2009, from the European Union, the ACP countries, 
Bolivia, Colombia, Costa Rica, Ecuador, Guatemala, Nicaragua, Panama, and Peru conveying the text of a proposed DDA modality for the treatment of Tropical Products and for Preference Erosion. 
39. I conveyed these communications to the Members of the Negotiating Group on 
18 December 2009 and subsequently held further consultations on these two issues identified in 
TN/AG/W/4/Rev.4. 
40. Consultations afforded an opportunity fo r initial discussion of the proposed modalities 
contained in the communications.  Clarification was provided in the course of consultations that the 
treatment contained in sub-paragraph (ii) of  the proposed replacement for paragraph 149 of 
TN/AG/W/4/Rev.4 is intended to relate only to the tariff lines for sugar contained in the attached 
Annex H. 
41. Some Members who are not party to the above  referenced communications have expressed 
concern to understand how the proposals may affect  their interests.  I understand consultations 
continue amongst relevant Members in this regard.  TN/AG/25 
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  II. TEMPLATE DEVELOPMENT 
42. The work the Negotiating Group has been unde rtaking on development of templates is 
understood by all Members to be of an exclusively t echnical nature.  It has been a very deliberate and 
deliberative process undertaken in the open-ended format. 
43. Work has proceeded across each of the three "pillars" (Domestic Support, Market Access and 
Export Competition) in two "steps" as follows: 
Step 1 concerns the identification and de velopment of templates (including possible 
supporting tables) for the presentation of base data;  and 
Step 2 concerns the identification and de velopment of templates (including possible 
supporting tables) for the presentation of DDA commitments. 
44. It is recognised by all Members that this wo rk is not a substitute for work towards the 
conclusion of Modalities.  Indeed, given that wo rk on draft formats of scheduling templates and 
supporting tables is based on draft modalities provisions in TN/AG/W/4/Rev.4, it is not possible to 
complete all work on templates until Modalities have been agreed. 
45. It should also be noted that the template devel opment work is just that – the development of 
templates for the formatting of the presentation of necessary information, to  be used when such 
presentation is required or otherwise agreed. 
46. Issues involving the timing of the actual provision of information have been and will continue 
to be dealt with in a distinct process.  Activity of this nature is covered in the "Data" section of this 
report. 
47. It has also been recognised that work on templates may raise questions on substantive 
interpretation of draft modalities provisions.  Where such situations have arisen, such as the case of 
some of the issues covered below in the "Data" sect ion of this report, these questions too have been 
and will continue to be dealt with in a distinct process. 
48. Significant effort has been devoted to work on St ep 1 across each of the three pillars and work 
is well advanced.  A considerable number of documents  have been produced to contribute to this work 
with many having been amended or superseded through the course of discussion in the Negotiating 
Group.  Those documents that remain under discussion will need to be finalised and consolidated as 
part of the conclusion of base data template work. 
49. Work on Step 2 has commenced with some initial contributions to aid discussion having been 
made.  A number of Members have indicated they are working on developing some "summary table" 
overview documentation to help gui de more detailed work on devel opment of scheduling templates 
and supporting tables for specific elements in respective pillars. 
III. DATA-RELATED ACTIVITIES 
50. The way commitments resulting fro m Modalities can be readily unde rstood and verified is a 
data-intensive exercise.  The Negotiating Group h as therefore continued to engage separately on a 
number of data-related activities. 
51. These activities have been focussed, as a prio rity, around those areas where the draft 
modalities provisions in TN/AG/W/4/Rev.4 require data  to be available and capable of having been TN/AG/25 
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  verified by Members in advance of the establishm ent of Modalities – including that data which is 
required by those provisions to be annexed to the Modalities themselves. 
52. An opportunity was provided, until 4 December 2009, for additional Members who wished to 
submit Domestic Consumption data for the purposes of Sensitive Product declaration consistent with 
Annex C of TN/AG/W/4/Rev.4 and for Members to ma ke technical amendments to data previously 
submitted.  The data which has been submitted by 10  Members (counting the EU as one) is subject to 
an ongoing process of verification. 
53. Data provision and verification activity has also  continued in respect of Value of Production 
(VoP) data to be annexed to the Modalities (in terms of Members and base years) as required by 
paragraph 12 of TN/AG/W/4/Rev.4.  As part of th is process it has been clarified that the operating 
definition of Value of Production remains that which flows from the Agreement on Agriculture. 
54. It is understood that VoP data which has b een submitted for years and by Members beyond 
that required by paragraph 12 of TN/AG/W/4/Rev.4 currently serves for transparency purposes only. 
55. Data has also been sought for the product-specific AMS and product-specific Blue Box to be 
annexed to the Modalities as required by paragraphs  22 and 40 of TN/AG/W/4/Rev.4.  It has been 
clarified that this data needs to be pr ovided by developed country Members only. 
56. With it being understood that commitments will be expressed in HS 2002 nomenclature, work 
is also underway to confirm AVE (ad-valorem e quivalent) transposition for the purpose of the AVEs 
to be annexed to the Modalities as required by paragraph 60 of TN/AG/W/4/Rev.4. 
57. A number of other questions that have been raised  relating to the provision of data remain to 
be addressed. 
IV. FUTURE WORK 
58. It is my intention to consult with Members on the organisation of future work in the 
Negotiating Group following, and consistent with , the outcome of this Stocktaking process. 
 
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