WORLD TRADE  
ORGANIZATION  WT/L/609 
19 May 2005 
 (05-2037) 
 Original:   English 
  
G-10 MINISTERIAL COMMUNIQUÉ 
PARIS, 2 MAY 2005 
 
Communication from G-10
 
 
 
 The following communication, dated 12 May 2005, from the G-101, is being circulated to 
Members. 
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 Towards successful DDA Negotiations 
 
1. Ministers of G10, a group of major food importing WTO Members, accounting for 13% of 
world agricultural imports, reaffirmed their solidarity  and determination to make every effort with a 
view to reaching mutually acceptable modalities for further agricultural reform  at the Hong Kong 
Ministerial Conference. 
2. In this respect, Ministers reaffirmed their read iness to make significant contributions in all 
three pillars and their willingness to cooperate clos ely with all other WTO Members, especially with 
food-importing developing countries.  They also str essed that this endeavour should be seen as an 
integral part of the Doha Development Agenda ( DDA) and that work on agriculture should proceed 
hand in hand with negotiations on other subjects in  order to achieve a balanced overall result for all 
Members. 
3. On process, Ministers underscored the necessity to  ensure the inclusiv eness and transparency 
of the negotiations.  Political ownership of the process and outcome of the negotiations is prerequisite 
to the successful conclusion of the DDA.  In this  connection, they expressed their very serious 
concerns about ongoing consultations carried out by a few Members, where major stakeholders such 
as G10 Members are not represented.  Ministers noted that the latest developments have also clearly 
demonstrated that a one-size-fits-all soluti on cannot generate consensus across the whole 
membership.  Ministers underlined the central role of the Chairman in involving and integrating all 
interests and sensitivities in the negotiating process. 
4. Ministers stressed that, at any stage in the elaboration of modalities for agriculture (including 
in the first approximation expected in July), the most important components of the negotiations shall 
be treated with a similar level of specificity in all three pillars. 
5. Ministers recalled the vital importance of non- trade concerns (NTCs), for both developing 
and developed countries, which are an integral elem ent of the Doha mandate and of the Framework.  
They are relevant to many aspects of the negotiati ons on Agriculture, including market access, with a 
view to reaching a fair and equitable result.  In  this regard, Ministers endorsed G10 contribution 
entitled as "taking non-trade concerns into account in the market access pillar" (see Annex). 
                                                     
 
1 Iceland, Israel, Japan, Kor ea, Liechtenstein, Mauritius, Norw ay, Switzerland, Chinese Taipei. WT/L/609 
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 Domestic Support 
  
6. Ministers reaffirmed their strong commitments to  their domestic agricultural policy reform.  
They acknowledged that the biggest reform efforts will  result in the elimination of all forms of export 
subsidies and in significant reductions of trade-dist orting domestic support.  In this respect, they held 
that the overall reduction of trade-distorting domestic  support should be larger than the sum of cuts 
brought about by the separate commi tments taken with respect to de minimis  support as well as the 
Amber and Blue Boxes.  In partic ular, developed country Members with an extremely high level of 
trade-distorting domestic support in absolute term s, including one of G10 Members, should commit 
themselves to taking the lead in the reduction effort. 
7. While recalling the role of Blue Box measure s in fostering agricultural policy reforms, 
Ministers agreed that the criteria for the new Blue  Box should be equally strict as those for the 
existing Blue Box.  They also insisted on the necess ity to preserve the integrity of the Green Box as 
an essential tool to address non-trade concerns  and facilitate the ongoing reform process. 
8. Ministers recognised that de minimis  and the provision of Article 6.2 of the Agreement on 
Agriculture are important for developing country Members. 
Export Competition 
 
9. Ministers acknowledged that the decision to e liminate all forms of export subsidies was an 
epoch-making achievement.  The implementation of  the elimination of export subsidies and of 
disciplines on export credits, exporting state trading enterprises and food aid must ensure equivalent 
and parallel commitments by Members.   
10. Ministers stressed that effective special and differential treatment (S&D) should be provided 
to developing countries, especially least-dev eloped countries (LDCs) and net food-importing 
developing countries(NFIDCs), to ensure food security. 
Market Access 
 
(Tiered Formula) 
11. Ministers pointed out that the Framework objec tives to take into account the different tariff 
structures of Members and to achieve progressivity in tariff reductions can onl y be met by applying 
average linear cuts in each band  of the tiered formula with deeper cuts in higher bands.  This 
approach combines the appropriate level of am bition (substantial improvements in market access) 
with the necessary flexibility required by NTCs.   Applying a harmonizing non-linear reduction 
formula to any band of the tiered formula means a twofold  and consequently excessive progressivity.  
Such an approach would alter the balance of th e Framework, and therefore cannot be accepted.  
Sensitive products should be put  in one separate box, regardless of their tariff level. 
(Sensitive Products) 
12. Ministers stressed that the treatment of sensitive products is an integral part of the market 
access pillar and must be ne gotiated and decided upon in tandem  with the reduction formula for other 
products.  
13. The number  of sensitive products cannot be arbitrarily set, but must reflect the situations of 
each Member.  Within this number, a Member must be given full discretion to select its own sensitive 
products.  WT/L/609 
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 14. The magnitude  of market access improvement for sen sitive products shoul d be substantial 
while, by definition, less than that for other pr oducts.  Market access improvement for these products 
will be achieved through combinati ons of tariff reductions and tariff quota commitments such as tariff 
quota expansion, improvement of tariff quota administ ration and reduction of in-quota tariff rates, etc.  
This treatment will be designed in such a way to reflect various elements of sensitivities, including 
present situation together with perspective of supply and demand, including consumption patterns, 
and consideration of NTCs. 
(Special SafeGuard Clause) 
15. The Special Safeguard Clause (SSG) shall be ma intained to facilitate a smooth agricultural 
reform process.  Building on their experience, G10 is ready to discuss proposals  to improve the 
existing SSG, and to design the Special Safegua rd Mechanism (SSM) for developing countries. 
(Special & Differential Treatment) 
16. Ministers confirmed that the S&D for developing Members is an integral part of the 
negotiation.  In this regards, G10 is ready to discuss specific proposals on special and differential 
treatment for developing countries in, among others , special products (SPs) in addition to sensitive 
products, SSM, reduction rates and implementation periods. 
(Preference Erosion) 
17. Ministers confirmed that the importance of longstanding preferences is fully recognised in the 
Framework and it is essential that para 16 and other relevant parts of TN/AG/W/1/Rev.1 be used as 
reference in the establishment of modalities for addressing the issue of preference erosion. WT/L/609 
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 THE DOHA WORK PROGRAMME ON AGRICULTURE 
 
TAKING NON-TRADE CONCERNS INTO ACCOUNT 
IN THE MARKET ACCESS PILLAR 
 
Contribution by the G10 
 
 
INTRODUCTION 
1. This contribution aims at clarifying certain c oncepts and providing a basis for how non-trade 
concerns (NTCs) should be taken into account in  the negotiations, focusing on the market access 
pillar.  The paper starts by briefly reviewing certain key issues relating to NTCs.  On the basis of this 
review, the paper suggests some implications fo r the modalities negotiations in the market access 
pillar, explaining why market access is crucial and how the market access modalities should reflect 
NTCs.  The intention is not to table a proposal fo r fully-fledged modalities in the market access pillar, 
but to focus on the linkage between NTCs and market access provisions and flag a certain number of 
issues that should be addressed in the negotiations.  This contribution will then be followed by more 
specific and detailed inputs at later stages. 
NON-TRADE CONCERNS: THE KEY ISSUES 
2. We are mandated to take no n-trade concerns into account:  G10 is fully committed to all 
the elements of the Doha Declaration and the D ecision adopted by the General Council on 1 August 
2004 (hereinafter referred to as the Framework Agreement ).  We are prepared to continue the reform 
process as a result of the Doha negotiations. At the same time, a balance is needed between trade and 
non-trade concerns.  The Framework makes clear in its Paragraph 2 of Annex A that " Non-trade 
concerns, as referred to in Paragraph 13 of the Doha Declaration, will be taken into account ."  The 
Doha Declaration reads that " We take note of the non-trade con cerns reflected in the negotiating 
proposals submitted by Members and con firm that non-trade concerns w ill be taken into account in 
the negotiations as provided fo r in the Agreement on Agriculture. "
2  NTCs are of vital importance to 
many Members, and the emphasis on NTCs is crucia l to the overall balance of the mandate and to a 
successful conclusion of the negotiations.  
3. Most non-trade concerns depend on domestic agriculture:   During the negotiations, many 
Members have referred to a number of non-trade concerns  of relevance to their reform process.  These 
include food security, rural development and the viability of rural areas, various environmental 
concerns such as biological diversity, agricultura l landscapes and land conservation (which includes 
flood control, landslide prevention and combating soil erosion and desertification), and cultural 
heritage and identity.  An essentia l commonality of these NTCs is that their safeguarding to a large 
extent is dependent on domestic production. 
4. Food security is a typical example.  The relationship between domestic agriculture and 
national food security is well established.  It is a fundamental objective of every country to ensure 
stable supplies of food, and most governments have opted for a certain degree of domestic agricultural 
                                                      
2 The Agreement on Agriculture refers to non-trade concerns in its Article 20 and the Preamble to the 
Agreement, which reads that " ...commitments under the reform programm e should be made in an equitable way 
among all Members, having regard to non-trade concerns, including food security and the need to protect the 
environment, ... ". Annex  WT/L/609 
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 production, in conjunction with imports  and stockholding, to ensure such supplies.  In order to reduce 
the risks that are often associated  with an excessive reliance on world markets, many countries with a 
low self-sufficiency in agricultural products ju dge as essential a certain degree of domestic 
agricultural food production. 
5. Domestic production conditions matter:   Sustaining domestic production is particularly 
challenging in countries with disadvantaged pr oduction conditions.  Disadvantaged production 
conditions, such as small-scale farming, difficult climate or topography, often limit the scope for diversification and call for government inte rventions to sustain the production.  The diversity  of 
production conditions in diffe rent countries therefore needs to be recognised. 
6. The NTCs referred to above is a non-e xhaustive list.  Other important NTCs not dealt with in 
this paper include various consumer concerns, such  as food safety or information relating to different 
product and production characteristics, or animal welfare concerns. 
SOME IMPLICATIONS FOR MODALITIES ON MARKET ACCESS 
7. How can the DDA modalities in ag riculture ensure sufficient room for manoeuvre to sustain 
sufficient domestic production necessary to safe guard NTCs, including in countries with 
disadvantaged production conditions?  This contribution focuses on the market access pillar , it being 
understood that domestic support instruments are also relevant to the safeguarding of NTCs. 
Moreover, we note that for some Members geographical indications are a matter of NTCs.  
8. The focus of this paper on market access is due to the following reasons:  During the GATT 
history, tariffs have always been a legitimate t ool to safeguard domestic agricultural production in 
countries with less competitive production conditions.  Since the Framework Agreement will result in 
substantial reductions in trade-di storting domestic support and the elim ination of all forms of export 
subsidies, tariffs will become all the more important  in the future.  The n eed for using market access 
instruments is even more acute for Members with budgetary constraints. 
9. Also, agricultural export earnings secured through long-standing preferences contribute to 
address NTCs in many vulnerable developing countries. 
10. How  should the market access modalities take account of NTCs?  Properly addressing NTCs 
is both a matter of flexibility and an appropriate level of ambitions.  Without prejudging the outcome 
of the negotiations, the following is a non-exhaustive  list of issues that are directly linked to the 
safeguarding of non-trade concerns, focusing on th e tariff reduction formula and the selection and 
treatment of sensitive products: 
The design of the tariff reduction formula 
11. In order to meet all the objectives of the Doha mandate the Framework calls for a single 
approach for developed and developing countries through a tiered formula that takes into account 
Members' different tariff structures .  On this basis, in order to ensu re that also non-trade objectives of 
the Doha mandate are being met, ta riffs should be subject to average linear cuts, with deeper average 
cuts in higher bands.  An average linear approach would allow for a certain degree of flexibility and 
may enable each Member to sustain sufficien t agricultural production to address its NTCs. 
The formula for sensitive products  
12. To take account of NTCs, Paragraph 29 of the Framework states that there will be 
"flexibilities for sensitive products ".  Sensitive products will not be subject to a tiered formula, but 
should be put in one separate box for sensitive products, regardless of their tariff level.  On the issue 
of selection  of sensitive products, Para 31 of the Framework reads as follows: WT/L/609 
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 Without undermining the overall objective of the tiered approach, Members may 
designate an appropriate number, to be negotiated, of tariff lines to be treated as sensitive, taking account of existing commitments for these products. 
13. Given that sensitivities and NTCs vary acro ss countries, it goes without saying that each 
Member must be given full discretion to select its  specific sensitive products.  According to Para 31, 
the number should be appropriate , not necessarily limited.  Moreover, the Framework clearly foresees 
that the number should vary from one Member to a nother, since Para 31 stipulates that the sensitive 
products will be designated by the Members, and that the number should be  appropriate and take 
account of existing commitments for these products.  
14. As to the treatment of sensitive products, the Framework envisages some TRQ expansion for 
sensitive products.  However, Paragra ph 33 of the Framework reads that " balance in this negotiation 
will be found only if the final negotiated result also  reflects the sensitivity of the product concerned. "  
G10 recognises that improved tariff quota commitments will be required for all sensitive products.  G10 believes a multidimensional approach will need to be designed to ensure a flexible treatment of 
sensitive products in which substantial market acce ss improvement is achie ved without undermining 
the sensitivity of the product concerned.  Various  dimensions of such an approach could be:  
15. First, in accordance with the first sentence of Para 33, different combinations of TRQ 
commitments and tariff reductions will be allowed. 
16. Second, Paragraphs 33 and 35 list several elements that will give the flexibility required to 
reach a final balanced result.  These elements  include TRQ expansion, improvements in TRQ 
administration and reduction or elimination of in-quota  tariff rates.  Additional options could also be 
envisaged. 
17. Third, to properly take account of NTCs, add itional criteria should be considered to allow 
Members to better reflect individual sensitivities, as foreseen in Paragraph 33.  Several options could 
be foreseen.  For instance, TRQ commitments c ould be differentiated according to the overall 
agricultural import performance of the Member concerned.  
18. Fourth, the TRQ expansion, as well as the tariff cut applying to sensitive products, could be 
expressed in terms of an average commitment. 
19. Incorporating special and differential treatmen t (S&D) for developing countries is an essential 
element.  In this regard, Paragraph 35 of th e Framework and Paragraph 6 of Attachment 1 of 
TN/AG/W/1.Rev 1 provide effective S&D and enable  developing country Members to fully benefit 
from the existing market access opportunities under TRQs. 
20. The specific design of the approach to be take n to the treatment of sensitive products will be 
subject to negotiations.  In the discussion above, a lternative options to improved TRQ commitments 
are explored.  These options are not mutually exclus ive.  To G10, flexible treatment of sensitive 
products is essential, and G10 therefore invites th e Membership to reflect on the approaches presented 
above to ensure that NTCs are being properly taken into account.  G10 reserves its right to table more 
specific proposals in this area at later stages. 
21. Agreeing to modalities will involve a series of di fficult trade-offs.  A successful outcome of 
the negotiations will only be reached when the legiti mate interests of all Me mbers are duly taken into 
account.  The challenge lies in designing compromises that are sufficiently balanced to attract the 
support of all. 
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