WORLD TRADE  
ORGANIZATION  TN/MA/W/11/Add.6 
27 April 2006 
 (06-1982) 
Negotiating Group on Market Access Original:   English 
  
 
MARKET ACCESS FOR NON-AGRICULTURAL PRODUCTS  
 
Negotiating Proposal on Export Taxes
 
 
Communication from the European Communities 
 
Addendum  
  The following communication, dated 20 April 2006,  is being circulated at the request of the 
delegation of the European Communities. 
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I. GENERAL REMARKS 
In line with paragraph 16 of the Work Pr ogramme adopted at the WTO Ministerial 
Conference in Doha in November 2001, and paragr aph 22 of the decision at the WTO Ministerial 
Conference in Hong Kong in December 2005, the Eu ropean Communities (hereafter “the EC”) hereby 
submits its specific negotiating proposal on export taxes.   
Since its initial submission on 1 April 2003 (TN/MA/W/11/Add.3), the EC has raised, 
notified and provided revised notifications on e xport taxes to the Negotiating Group on Market 
Access (NGMA) with the view to prepare for the non-tariff barriers’ negotiations on market access for 
non-agricultural products in line with the mandate  agreed among WTO Members in Doha. Moreover, 
during the course of 2005, the EC hosted three inform al meetings on export taxes, allowing for an 
open and more detailed exchange  of views both among WTO Member s at different levels of 
development, and between current groups of users of  export taxes and the majority of Members that 
do not impose taxes on the exportation of goods. A su mmary of these informal meetings is contained 
in JOB(05)/321.     
 The specific EC negotiating proposal aims to addr ess distortions to international trade caused 
by those export taxes used for the purpose of (or otherwise having the effect of):   
• artificially transferring gains from trade between WTO Members (beggar thy neighbour); 
• creating unfair advantages to domestic industr ies involved in international trade at the 
expense of other WTO Members’ producers, including infant industries in developing 
countries; or 
• evading existing WTO disciplines on export restric tions by shifting to more or less prohibitive 
taxes on the exportation of goods.  The EC proposal has been carefully drafted so as to discipline the use of export taxes to the 
detriment of other WTO Members while not affecting the right to introduce export taxes for legitimate 
purposes in line with the current WTO rules (notab ly GATT Article XX). In addition, in relation to 
present WTO rules applicable to export restrictions , the EC proposal confirms that WTO Members, 
and in particular developi ng countries, may resort to export tax es by reference to GATT Article XVIII TN/MA/W/11/Add.6 
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  on governmental assistance to economic devel opment and GATT Article XII on safeguarding the 
balance of payment. Moreover, the proposal provi des additional flexibility for developing countries, 
and especially least-developed countries, by allowi ng the possibility for these countries to maintain 
export taxes on a permanent basis for a limited number of products, and at generally low levels, where 
complete elimination may not be feasible and the measures are not used for any of the purposes listed 
above.   
 
Thereby, the EC proposal on export taxes is in accordance with the mandate agreed among 
WTO Members to reduce or as appropriate eliminate non-tariff barriers in the negotiations on market 
access for non-agricultural products (NAMA), taking fu lly into account the special needs and interests 
of developing and least-dev eloped country participants. 
 
II. PARAMETERS FOR MULTILATERAL DISCIPLINES ON EXPORT TAXES  
 The EC proposal establishes disci plines in the form of a new WTO Agreement on Export 
Taxes . It thus follows the horizontal approach re cognized in paragraph 22 of the Hong Kong 
Ministerial Decision. The coverage under the Agreement is all non-agricultural products in 
accordance with paragraph 16 of the Work Programme of the Doha Ministerial Decision.  
The specific disciplines in the EC proposal on export taxes cover:  
(1) Commitment to e liminate export taxes by all WTO Me mbers, with the possibility for 
developing and least-developed countries to main tain certain export taxes, based on positive 
listing, to be included in these Members’ lists of Schedules; 
(2) Commitment to provide most-favoured nation tr eatment in case of any remaining export taxes 
and bind the maximum levels of taxes levi ed on exports in the lists of Schedules;  
(3) Clarification of the possibility of all WTO Me mbers to impose fees and charges on exports in 
accordance with GATT Article VIII; 
(4) Confirmation of the possibility for all WTO Members to use of export taxes under specific 
circumstances (in addition to possible exceptions from the commitment to eliminate export 
taxes provided exclusively for developing count ries) in accordance with GATT Article XII, 
XVIII, XX and XXI;  
(5) Clarification of applicable rules with respect  to customs valuation of products in connection 
with exportation;  
(6) Transparency requirements; (7) Clarification of applicable rules with respect to any future modification of Members’ lists of 
schedules;  
(8) Review clause; and 
(9) Dispute settlement according to th e provisions of the GATT and the DSU. 
 
III. NEGOTIATIONS OF POSSIBLE EXCEPTIONS 
Regarding the possible lists of exceptions fro m the commitment to eliminate export taxes 
(other than the ones referred to  in GATT Article XII, XVIII, XX and XXI), the EC considers that 
these should be negotiated according to the following parameters: 
 
• Developed countries
: no exceptions for the use of export taxes; 
• Developing countries : export taxes of maximum [X] percent for a limited set of products to be 
determined through request and offer and ta king into account the potential trade-distortive 
effects of these export taxes on other Members; and 
• Least developed countries : binding of existing export taxes and listing of export taxes of 
maximum [Y] percent on a set of products for which countries currently apply no taxes but  TN/MA/W/11/Add.6 
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  may want to retain flexibility of introducing e xport taxes in the future, to be determined on 
the basis of these countries’ expressed devel opment needs and possible fiscal constraints.1  
 
                                                      
1 Where Y>X and the level of X, for negotiating purposes, takes into account the effective rate of 
protection caused by any remaining tariff escalation or  high tariffs in key importing countries following the 
application of the formula. TN/MA/W/11/Add.6 
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  ANNEX 
 
WTO Agreement on Export Taxes – Core Disciplines 
 
 
Article 1  
 
No duties, taxes and other charges imposed on or in connection with the exportation of non-
agricultural goods
2 (hereinafter referred to as “export taxes”)  destined for the territory of any other 
Member, as well as internal taxes and other charg es on products exported to any other Member that 
are in excess of those imposed on like products des tined for internal sale, shall be instituted or 
maintained by any WTO Member.   
Article 2 
 Notwithstanding Article 1 of this Agreement, developing country Members and especially least-
developed country Members may ma intain export taxes under the conditions set out in Article 3, 
provided that such export taxes and their maximu m levels are listed in Members’ schedules of 
commitments.   
Article 3 
 
1. Export taxes may be maintained and listed in Members’ schedules fo r a limited number of 
products, at low levels and only in so far as:  
a) they are necessary, in conjunction with domestic measures, to maintain financial stability, to 
satisfy fiscal needs, or to facilitate economic  diversification and a void excessive dependence 
on the export of primary products; and    
b) they do not adversely affect international trad e by limiting the availability of goods to WTO 
Members in general or by raising world market prices of any goods beyond the prices that would prevail in the absence of such measures,  or otherwise cause serious prejudice to the 
interests of developing country Members. 
2. Members confirm the applicability of Article  I of the GATT 1994 to the measures covered in 
Article 2 of this Agreement.   
 
Article 4 
 
1. The prohibition and, where relevant, reduction of export taxes shall take effect upon the entry 
into force of this Agreement for developed Members, no later than 3 years after its entry into force for 
developing Members and no later than 5 years after its entry into force for least-developed Members.  
2. Commitments to eliminate and reduce existing export taxes shall be implemented through 
equal annual reductions for all relevant non-agricultural goods.  
3. No new export taxes may be introduced  during the transition periods.   
 
Article 5  
 
Nothing in this Agreement shall prevent: 
a) any Member from imposing fees and charges on or in connection with the exportation of 
goods in accordance with GATT Article VIII;  
                                                     
 
2 Same product coverage as for NAMA in DDA.  TN/MA/W/11/Add.6 
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  b) any Member from applying export taxes in acco rdance with the rules applicable under GATT 
Article XX (General Exceptions) and Article XXI (Security Exceptions); and  
c) any Member, and especially developing Memb ers and least-developed Members, from 
temporarily and under specific circumstances adopting measures including export taxes in accordance with the conditions, rules and pr ocedures of the following Articles, where 
applicable:  
- GATT Article XII on Restrictions to Safeguard the Balance of Payments; 
- GATT Article XV:9 on Exchange Arrangements; and   
- GATT Article XVIII on Governmental Assi stance to Economic Development.  
 
Article 6 
 
Export taxes instituted or maintained by Members in accordance with Articles 2, 3, 5(b) and 5(c) of 
this Agreement shall be applied in  accordance with GATT Article VII. 
 
Article 7 
 
Members reaffirm, with respect to export taxes, their commitment to obliga tions on transparency and 
notification in Article X of GATT 1994 and in the Ministerial Decision on Notification Procedures 
adopted on 15 April 1994. Any new export taxes an d any increase in existing export taxes must be 
notified to the WTO Secretariat 60 days before their entry into force. The notification shall contain a 
detailed description of the export taxes in question, their product and trade coverage, and their applied 
levels. Upon request, the Member seeking to institute  new or raise existing export taxes shall afford 
adequate and prompt opportunity fo r consultations and provide info rmation on the reasons for the 
export taxes, on their potential effects and on other matters of interest or concern to any other 
Member. The Member shall also allow a reasonable interval between the adoption of the measure 
instituting new or raising existing export taxes and its entry into force. 
 
Article 8 
 
The provisions of Articles XXII and XXIII of GATT 1994, as elaborated and applied by the Dispute 
Settlement Understanding, shall a pply to consultations and the se ttlement of disputes under this 
Agreement.   
 
Article 9 
 
GATT Article XXVIII and the Understanding on th e Implementation of Article XXVIII of GATT 
1994 shall apply mutatis mutandis  to the modification of a schedule within the meaning of Article 2. 
 
Article 10 
 
No later than 5 years after the entry into force of  this Agreement, Members shall begin negotiations 
with the aim of gradually phasing out all remain ing export taxes listed in Members’ schedules. 
Priority should be given to those export taxes of c oncern to developing countries and particularly least 
developed countries.        
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