RESTRICTED  WORLD TRADE  
ORGANIZATION  TN/AG/R/16 
4 February 2005 
 (05-0468) 
Committee on Agriculture 
Special Session  
 
 
 
SUMMARY REPORT ON THE TWENTY-SEVENTH MEETING  
OF THE COMMITTEE ON AGRICULTURE SPECIAL SESSION  
HELD ON 19 NOVEMBER 2004 
 
Note by the Secretariat1 
  
1. The Special Session of the Committee on Ag riculture, which was established by the 
General Council (WT/GC/M/53), is pursuing negotiations under paragr aphs 13, 14 and other relevant 
provisions of the Doha Ministerial Declaration.  The twenty-seventh formal meeting was held on 19 
November 2004 under the chairmanship of Ambassador Tim Groser of New Zealand.   
2. The agenda as contained in WTO/AIR/2434 was adopted. 
I
TEM A (i):  STATEMENT BY CHAIR  
3. A summary of the Chairman's statement is attached. 
ITEM A (ii):  STATEMENTS BY PARTICIPANTS  
4. Turkey took the opportunity to evaluate the em erging shape of the negotiations.  Firstly, it 
noted that participants were definitely in negotia ting mode; and secondly that there were issues readly 
for detailed technical examination but there were other issues that were still far away from any 
common understanding.  This confirmed the need to  proceed in line with the processs described by 
the Chairman, without limited participants’ rights to make adjustments as necessary.  Concerning the 
third step in the process, Turkey pointed out that there were some countries that were not members of 
any group or that might join a group only for a sp ecific issue.  Inclusiven ess and transparency were 
essential to the technical discussions and he hoped the open-ended informal phase would continue to 
be open-ended.  Bearing in mind that this phase of  the negotiations was about  forming building blocks 
that would make up detailed moda lities the concerns, expectations and needs of all Members would 
have to be taken into account in order that ther e would be common ownership of the final result.  
Turkey was ready to c ontribute to the process. 
5. On behalf of the African Group the representativ e of Nigeria noted the work that had been 
undertaken to set up the Sub-Committee on Cotton.  He also expressed some concern about the 
volume of work ahead and asked that the density of  the agenda be managed in order to assist the 
African Group in its preparations for meetings.  Th e Group had identified a number of issues which it 
was interested in having discussed at the next meeting.  These issues included: tropical products; 
Special Products; the special safeguard mech anism; least-developed and net food-importing 
developing countries under export co mpetition section of the Framework; preferences; and food aid.  
Nigeria asked the Secretariat to prepare a background note setting out the historical documents from 
                                                      
1 This document has been prepared under the Secret ariat's own responsibility and is without prejudice 
to the positions of Members or to their rights or obligations under the WTO. TN/AG/R/16 
Page 2  
 
 the Uruguay Round and development since it was concl uded and if it could arra nge to give a seminar 
on ad valorem  equivalents.  In order to help the Group to  prepare for the next Agriculture Week in 
December he asked for the Chairman's list of i ssues, including for second and third readings as soon 
as possible.  Concerning the issues listed in paragr aph 49 of the Agreed Framework he stated that 
these were sensitive political issues that should be d ealt with later in 2005.  On the other hand other 
issues of important to the African Group and deve loping countries generally should be discussed as 
soon as possible, such as food security issues, and these should be addressed in a holistic fashion.  
While he was not concerned with the venue of diff erent consultations he did state that discussions 
should be open-ended so that all could follow the discussions.  In any case where consultations were 
not open-ended participation should be based on membership.   
6. The delegation of Trinidad and Tobago, on beha lf of the ACP group of countries, supported 
that statement made by Nigeria and the procedur e outlined by the Chairman and noted the issues 
discussed during the course of this Agriculture W eek.  Concerning the issues for discussion during the 
December Agriculture Week, he stated that th e ACP group supported an agenda that included 
preferences and the tariff reduction formula with re lated topics like Special Products and the Special 
Safeguard Mechanism for developing countries.  He also pointed out that silence from the ACP did 
not imply lack of interest in any subject.  On the contrary, the group had listened carefully to the positions and arguments put forwar d and would take these into c onsideration during its on-going 
technical work and reserved the right to revisit any issue later in the process.  He noted that some 
Members had pointed out the links that exist between  different issues and stated that this should not 
diminish the importance of special and differential treatment and the emphasis that was needed on the 
development dimension of the negotiations. 
7. The representative of Bangladesh stated that, like other least-developed countries, Bangladesh 
was a net food importer.  He stated that he was concerned by the new disciplines that might be adopted for non-emergency food aid operations.  These disciplines could have the affect of restricting 
access to food by millions of people in his country .  The current non-emergency food aid operations 
enabled many people to meet their nutritional needs through multilateral and bila teral programmes.  In 
addition these programmes contributed to improving productivity through technical assistance, training and infrastructure which were needed to address the underlying causes of hunger and disease.  The negotiations, therefore, had to find the right  balance for food aid and Bangladesh was ready to 
engage in any technical discussions on this issue. 
8. Argentina stressed the importance of trade in tropical products and products that substituted 
for illegal narcotics for several developing countries .  This had been made clear by the situation 
described by Bolivia in the form al Special Session and Peru and Co lombia in the informal Special 
Session.  These Members required substantial impr ovements in maket access on an mfn basis.  
Argentina also welcomed the establishment of th e Sub-Committee on Cotton which was the result of 
the initiative by Benin, Burkina Faso, Chad and Mali.   
9. Nicaragua stated that, the starting point for the expansion of tariff quotas should not be less 
than 5 per cent of domestic consumption.  Th e purpose of expansion was to improve access, 
particularly for products of interest to deve loping countries.  Concerning the conversion of non- ad 
valorem  tariffs to their ad valorem  equivalent it stated that one result of this round of negotiations 
should be the binding of all tariffs in ad valorem  terms.  
10. Statements made in the informal Special Session by the following delegations were forwarded 
to the Secretariat and are attached to this summa ry at the request of the Members concerned:  
Argentina; Brazil; Jamaica; Bulg aria; Costa Rica; Honduras; Colombia; China; Peru; Turkey; El 
Salvador; Bolivia; Switzerland and Venezuela.  The Chairman asked that any delegation that wanted 
its statement from the informal Special Session incl uded in the report on the formal meeting it should  TN/AG/R/16 
 Page 3 
 
 
 sent it to the Secretariat as soon as possible and it w ould be included as an attachment to the summary 
report. 
ITEM A (iii):   ESTABLISHMENT OF THE SUB -COMMITTEE ON COTTON  
11. The Sub-Committee on Cotton was established with  the terms of reference contained in 
TN/AG/13. 
12. The representative of Benin supported the stat ements made under Agenda Item A(ii) by 
Nigeria, on behalf of the African Group, and by Trinidad and Tobago, for the ACP Group.  The objective of the negotiations was to find a solution to  the very difficult situation of cotton producers in 
west and central Africa.  In noting that the terms of reference of the Sub-Committee were based on the 
Agreed Framework he stated that the current situ ation had to be addressed quickly with coherence 
between the trade and development aspects.  The fragile economies of many least-developed cotton-
producing countries added to the urgent need to find a fair and equitable solution.  Right now a calendar of work was needed under a Chairp erson who was familiar with the issues. 
13. Paragruay, Djibouti, Burkina Faso, the Unite d States, Senegal, Pakistan and Mali also 
welcomed the establishment of the Sub-Committ ee.  Paraguay also emphasised the cause of 
distortions on cotton trade and prices and impact of these on developing countries that produced 
cotton.  Along with Pakistan, it also emphasi sed the need for concrete results quickly. 
I
TEM B(i): S TATEMENT BY THE CHAIRMAN ON DEVELOPMENT ISSUES  
14. The Chairman stated that he would be holding consultations on the development issues 
referred to the Special Session of the Co mmittee on Agriculture by the General Council. 
ITEM B(ii):    D ATES FOR FUTURE AGRICULTURE WEEKS  
15. The Special Session noted the following dates for Agriculture Weeks for the first seven 
months of 2005: 7-11 Febr uary; 14-18 March (the regular Committee on Agriculture to take place on 
16 March); 13-15 April and 18-19 April; 30 May-3 J une (the regular Committee on Agricutlure to 
take place on 2 June); and 11-15 July. 
ITEM B(iii):    C HAIRMAN 'S REPORT TO THE TRADE NEGOTIATIONS COMMITTEE  
16. The Chairman stated that, on his responsibility as Chairman, he would be reporting to the 
Trade Negotiations Committee on this meeting. 
ITEM  B(iv): D ATE OF THE NEXT SPECIAL SESSION  
17. The Chairman informed the Co mmittee that the next formal Special Session of the Committee 
on Agriculture would take place on 17 December 2004. 
 TN/AG/R/16 
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 Statement by Ambassador Tim Groser 
 
Chairman, Special Session, Committee on Agriculture 
 
 
1. You will recall that in my statements prior to the agreement of the Framework, I focused on 
the process of the negotiations.  Once again, I am going to comment on the process and not on the 
substance.  The substance relates to the detailed tech nical elaboration of issues but, at this stage, I do 
not think the negotiations on individual issues ha ve reached the stage where I can draw coherent 
conclustions.  On the other hand, the process is very important because you only get to good 
substance through good process.   
 2. Prior to the adoption of the Framework I spoke  about the delicate balance that has to be 
achieved between two competing realities: the reality of the need for transparency; and the reality of 
the need for effectiveness.  Finding  the right balance is more of an art than a science, but if the right 
balance is not found then the real negotiations will take place outside the WTO, which nobody wants.  
Thus, there is a practical discipline on those who would argue for complete transparency and are not concerned about effectiveness.  When the Framework was agreed and we started work again after the 
summer break I did not have any brilliant ideas about how best to carry it forward.  So we set up the beginning of a new type of process.  This process was intended to be experimental and, as I have said 
repeatedly, adjustments can be made and I do thin k we need to make some adjustments based, not 
only of my own personal observations, but also on the basis of strong views that you have expressed. 
 
Formal Special Session 
 
3. The formal Special Session is an indispensable part of the process.  It is needed to take 
decisions, such as the decision I hope we will take  shortly to establish the Cotton Sub-Committee.  
But the formal Special Session is not a negotia ting tool.  When we are talking about actual 
negotiations what is evolving is a structure that de pends upon three different levels each of which is 
part of the whole and which are mutually reinforcing.    
Outline of the negotiating process 
 
4. The first level that we seem to have devel oped is the idea of using the informal Special 
Session as a mechanism for having what we called a first reading of the issues that emerge from a plain reading of the Framework.    
5. Secondly, after that first reading, there is the open-ended informal, or Room D, process.  This 
process is intended to be the centrepiece of the info rmal negotiations.  It allows all delegations, even 
those delegations that may not be equipped to take pa rt in all the technical discussions, to at least hear 
what the technical matters are and make their own independent judgement about the implications for 
their country.    
6. The third level process is not very active at the moment.  To deal with the most complex 
technical issues I will need to gather together a gr oup of colleagues, on a representative basis, to try 
and develop issues that have already been clearly discussed at the first two levels.  To give an 
example.  This week we had a good discussion in R oom D on export credits.  One of the issues that 
was discussed was minimum interest rates.  Eventually we will need a precise rule on this subject but 
I cannot imagine that in an open-ended informal procuess in Room D we will get precision on the 
question on CIRR (Commercial Interest  Reference Rates) plus the co mplex matter of the appropriate 
risk base.  We need something beyond that.     TN/AG/R/16 
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 7. We need these three layers but they are all part of a mutually reinforcing whole.  There is a 
visual metaphor that may, or may may not, be help ful for you.  Canals have locks for moving barges 
from one level to another.  The water system for the three levels of locks is the Framework itself.  As 
the chief engineer I am responsible for mana ging the passage of water through the system.   
 
8. If we consider the informal Special Session to be the first lock then I have put too much water 
in there and enough water has already been fed th rough into the second lock (the Room D process).  
In saying that, there is a risk of being misinterpreted.  I am very conscious of the enormous amount of technical work that needs to be done and the need  to move forward as quickly as possible.  But, from 
the points you have made, it is clear that I have  slightly overloaded your agenda and, because 
delegations do not have the opportu nity to develop negotiating positions, we get a series of political 
speeches on these items.  Therefore, fo r the December meeting I will have fewer issues for the first 
lock, the informal Special Session, and probably abou t the same time for the second lock, the Room D 
process.  In addition, more time is needed to a llow for multilateral meetings, for group coordination 
and for group-to-group meetings.  Clearly, I will take this process one meeting at a time and make 
adjustements as necessary. 
 9. Because of your requests for more time to prepare for the negotiations you should expect to 
receive a fax from me next week.  Expect to see a small list of issues but please do not misinterpret this.  It is not an attempt to slow the negotiation dow n, but if we try and move too fast it just won't 
work. 
 
Issues for discussion 
 
10. Concerning the selection of issues for discussion, you need to be confident about two things:  
one is that I will consult you closely; and secondly, th at every single issue will have to be addressed at 
some stage, including paragraph 49 issues.   
 11. At this stage I have not yet decided what s hould be in the fax for a first reading at the 
December meeting, but I want to make it clear that I would like to include the first issues in my fax of 
3 November – "tariff reduction form ula and related topics".  Now you shou ld note here that the related 
topics, Special Products and the Special Safeguard  Mechanism, are almost a set of issues in 
themselves so this subject will take some time to discuss.  How much more could be addressed at the 
informal Special Session is something I would like to reflect on.  Now, that is where my thinking is 
heading on the first of the locks, in my water system, as it were.    12. On the second lock, the Room D process.  My assessment of this week was mixed.  P 
personally, I thought that the discussion in Room D on export credits went well but the discussion on 
Green Box criteria was less than excellent.  I thi nk there are some interesting reasons for this 
difference and I will reflect on the lessons to be drawn from this week's discussions. 
 13. On the venue for the informal open-ended cons ultations, Room D, I was very grateful for 
your co-operation when I made the request for delegati ons to limit themselves to  a maximum of three.  
I am deeply reluctant to move from there back into here, because the ambience in a much larger room  
is not as conducive for serious discussion.  I will a dopt the technique of limiting numbers again and I 
would be grateful for your continued support for that approach rather than a request for a larger room.   
 14. Concerning the issues issues to be discussed in th e second lock at the next Agriculture Week.  
These informal open-ended consultations are for tec hnical contributions and not political statements.  
From the issues discussed in the first lock I do n't think the question of the base for tariff quota 
expansion is ready yet for this detailed technical discussion.  A second reading of TRQ administration 
could be useful.  But of the issues that were the s ubject of first readings this week the two internal TN/AG/R/16 
Page 6  
 
 support issues (the methodology for product-specifi c AMS caps and the base reference periods in the 
context of domestic support commitments) seemed be st candidates for further technical discussion. 
 15. Now, with respect to my third lock, the sma ller but representative group of experts meeting 
under my Chairmanship.  I am sure most of you will  have already received some type of report from 
your group leaders on the utility or otherwise of the one meeting that we had on this. It certainly took 
on the question of ad valorm  equivalents a step further, but it did run into the political problems.  I 
think that a third more intense, and more technical, level of discussion is an essential part of this overall process.  This is s supplement to, not a substitute for, the open-ended informal process. 
 Texts 
 
16. Now, on the question of texts.  You all know  my position is that we should get down to 
developing texts as quickly as possible.  The absolu te enemy of transparency has always been a  
meaningless political exchanges in large open meetings.  Then at the last minute a text appears that 
very few people have been involved in de veloping and that most do not understand.   
 17. In moving to texts there are, of course, many political problems that have to be evaluated and 
we can only move forward as "quickly as possible".  The word "possible" has to take account of the 
capacity of delegations to develop technically coherent positions on issues, and, even more 
importantly, ensuring you are not pushing beyond what the political traffic will bear.  
 
Conclusion 
 
18. I want to end by expressing my deep appreci ation to many delegations, for your strong 
expressions of support.  I have been aksed to try to  provide some structure for the negotiations and I 
have responded.  Of course, I have not got it alwa ys right and some adjustments in the process will 
need to be made.  For the most part, this we ek's negotiations were c onducted in a remarkably 
constructive atmosphere.  We have made some good progress in getting this process moving towards 
a technical examination of the Framework issues, although I do think the adjustments, which I have 
just foreshadowed, are required to make it work a little bit better.  TN/AG/R/16 
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 Statement by Argentina  
 
 1. The representative of Argentina  expressed that, although Argen tina maintains its cooperation 
to make progress in all "agreed" issues, the issues of paragraph 49 of the Framework did not have that 
status and he did not believe it would be appropriate to reopen the Framework TN/AG/R/16 
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 Statement by Brazil on behalf of the G-20
 
  
Mr. Chairman, 
1. Maybe I should begin this intervention by c ongratulating you, Mr. Chairman, for all your 
efforts to put our negotiations on track. Exactly 40 da ys ago we met here for the first time after the 
July package. And less than a month from today we will be meeting again to continue our discussions 
on many of the several issues we will have to tack le in order to successfully negotiate modalities in 
agriculture.  
2. As expected, the amount and complexity of issues to cover in this phase of the negotiations is 
considerable. Working procedures, th erefore, acquire particular importance.  Let me briefly touch on 
these, before going to substance. 
3. As soon as your proposal for the agenda was received, on November 3, the G-20 started to 
prepare its participation in these November discuss ions to the best extent possible. Whilst we 
recognize and praise your efforts in organizing this week´s work, let me tell you it has not been easy 
for delegations - except perhaps for a few - to thor oughly scrutinize all the items presented in order to 
be prepared to participate in the discussions.   
4. From the issuing of the agenda to the beginning  of the meetings yesterday, we had 8 working 
days to prepare ourselves - 7 to some delegations due to the holiday on Friday. It is not much, 
especially for Groups that, as you know, have to coordina te not only here in Gene va but  with capitals. 
Besides such a rich agenda of items, there has be en the issuing of a couple of background papers 
prepared by the Secretariat. Of course we welcom e these papers, we thank the Secretariat for them 
and we encourage the Secretariat to prepare furt her papers. But, of course, these background papers 
demand careful examination.  
5. Unfortunately, the majority of delegations, especially Groups and developing countries in 
general, are not prepared to work at lightning speed, as they possibly would have wished. These 
delegations are not able to adequately follow a stru cture of work in which meetings may coincide and 
a proliferation of issues may arise at short notice. Attention ends up sort of pulverized, with a loss of 
focus in the debate, giving way to the risk of  developing a fragmented discussion non-conducive to 
results. Moreover, some doubts arise regarding th e expected results of the current negotiating 
dynamics. 
6. The G-20 has tried to keep up with your propo sed agenda - and I personally have seen the 
long hours our experts worked preparing interventi ons on the agenda issues - and it was not an easy 
task. I hear from my other colleagues that they share the same feeling. Differently from other 
delegations, developing countries have, many times , to start their work from scratch and cannot 
always count on preparatory technical work from capitals. With that spirit, the G-20 asked the Secretariat for information regarding AVEs as well as the preparation of a seminar. 
7. We ought to be fully aware that discussions now, despite their so-called “technical” character, 
do matter and should provide the necessary grounds for our political decisions in the months to come. 
The debate we just held on AVEs  -  and the data provided indicating that of the total number of non-
ad valorem agricultural duties, 53% are bound in specific terms, 16 per cent in compound terms, 27 per cent are mixed tariffs and 4 per cent fall in the “other” residual category -  prove how fundamental 
a tool the AVE conversion is for the tariff reductio n formula and how intricate and, perhaps, how little 
transparent trade in agriculture actually is.  These are good enough reasons not to draw early 
conclusions from a debate in which more informati on is still needed and in which many Members still 
have to deepen their knowledge.   TN/AG/R/16 
 Page 9 
 
 
 Mr. Chairman, 
8. In the statement made by Ambassador Sun on be half of G-20, in October, we clearly noted 
there can be no hands-off technical list, since any su ch list would in fact reflect certain preferences 
and impose a biased approach towards the negotiations . But if any order is required for the practical 
organization of our work, we stressed that it should proceed from the general to the specific, from the 
rule to possible exceptions, and not the other way around. Our work should concentrate on issues that 
relate to the most trade distorting policies and which are central in all three pillars of the negotiations.  
9. In that respect, Mr. Chairman, the inclusion of paragraph 49 in the December Session 
discussions causes great concern for the G-20. To put issues that are characterized in the Framework 
as “of interest but not agreed” on the same level as the negotiating pillars coul d  be understood as an 
implicit reinterpretation of the framework. This is something we should not attempt to do now or at 
any time.   
10. I feel compelled to remember that the 3 pilla rs have central issues, from which we cannot 
deviate. Their treatment will allow the adequate trea tment of the others. Take for instance the debate 
on domestic support. It should center around three crucial points: cuts, disciplines and monitoring.  
Regarding the items to be discussed this week, the re view and clarification of Green Box criteria is as 
important for the results in domestic support as are the other domestic support elements. We have to 
ensure that the value of domestic support commitme nts will not be undermined by policies that are 
not really green and that, in fact, are used as a way of circumventing reduction commitments. The G-
20 has attentively worked on that issue and praises your choice of Green Box criteria as one of the 
items to be discussed this week. 
11. Last but not least, it goes without saying – but it is always best to remember – that Special 
and Differential treatment is an inte gral part of the negotiations. That  applies not only to the substance 
of commitments, but also in what refers to he lping developing countries enhance their capacity to 
participate in the negotiations and, as a con sequence, increasing inclus iveness in the process. TN/AG/R/16 
Page 10  
 
 Statement by Jamaica
 
  
Mr. Chairman, 
1. In July we gave our support to the Framew ork Package, although we had some concerns 
which we expressed at the time.  We have joined w ith other members in seeking since then to move 
the Doha Round forward, including in this important Negotiating Group. 
2. Before I make reference to pa ragraph 43 relating to tropical pr oducts, which you have listed 
as one of the issues for a first reading today, I would like to recall that in adopting the July Framework 
Package, the General Council called, in paragra ph 3 of the July Decision, for members “to redouble 
their efforts towards conclusion of a balanced ove rall outcome of the Doha Development Agenda….” 
3. We certainly hope this will be borne fully in mind when considering the approach to take to 
paragraph 43.  A balanced outcome cannot mean that  in any area of the negotiations the concerns of 
some members are ignored. 
4. The paragraph that immediately follows para graph 43 - Paragraph 44 - is not one of the 
paragraphs listed for discussion in today’s reading.  It deals with longstanding preferences.  Some 
products on which there are longstanding prefer ences are tropical products.  Paragraph 44 draws 
attention to the importance of longstanding preferen ces and states that the issue of preference erosion 
will be addressed.  Some members may see no linkage  between paragraphs 43 and 44.  Jamaica does 
for the simple reason that these paragraphs are not mere  abstractions.  They speak to real interests, and 
some of the interests and the issues to which the two paragraphs relate are interlinked. 
5. Mr. Chairman, I would wish to be clear.  We do not oppose liberalization of trade in tropical 
products.  We agreed in Punta del Este, almost exactly eighteen (18) years ago, that the Uruguay 
Round Negotiating Group on Tropical Products should “aim at the fullest liberalization of trade in tropical products, including in their processed and semi processed forms….” 
6. Jamaica was aware then and is fully aware now th at trade in tropical products is important to 
a large number of developing countries.  We rec ognize also the importance of issues such as tariff 
escalation.  We reiterate that we do not oppose libera lization of trade in tropical products within the 
context of a negotiated outcome on agriculture. 
7. We do not believe that either the Doha Ministerial Declaration or the July Framework 
Package provides, or could possibly provide, a mandate for ignoring the interests of some countries in these negotiations – those which benef it from long standing preferences.   
8. We will pursue actively these interests in regard to tropical products in the negotiations on 
modalities, for we believe that that is essential to a balanced outcome. 
9. Let me indicate that Jamaica would therefore have severe difficulty with some aspects of the 
proposed modalities outlined by Ambassador Saborio of Costa Rica. 
10. We would also ask that the background Note on tropical products requested by Bolivia, on 
behalf of the G 20, include data on the shares of exports in major markets, and on relevant growth 
trends relating to exports and imports of tropical products in these major markets. 
11. Mr. Chairman, Jamaica fully supports the elem ents of paragraph 43 which speak to the 
importance of diversification of production from the growing of illicit narcotic  crops.  We underscore 
this support.  However, we also want to emphasi ze that this should be achieved without creating  TN/AG/R/16 
 Page 11 
 
 
 circumstances whereb y some members with existing small shar es of trade in a few tropical products, 
lose the ability to trade in these products, and ar e themselves forced into the production of illicit 
crops. 
Thank you. TN/AG/R/16 
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 Statement by Bulgaria
 
  
1. The Representative of Bulgaria underlined the importance, which his delegation attached to 
the issues in paragraph 49 of the July framework.  He pointed out that his delegation was ready to 
participate in technical discussions on all the issues of the framework, provided that there would be 
meaningful discussions also on those issues in the ne gotiations, in which his country had a particular 
interest. 
2. He also took note of the Chairman’s statement on his intentions regard ing the organization of 
further work and said that his delegation could cons ider accepting only such substantive results, in the 
negotiation of which it would have been  directly involved at all stages and in all forms of the informal 
process.  TN/AG/R/16 
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 Statement by Costa Rica  
  
1. We would like to express our appreciation of the way in which you have conducted the 
agricultural negotiations and organized the work.  The choice of topics you have made seems to us 
appropriate.  With respect to the question of tropi cal agricultural products and products of particular 
importance to the diversification of production from the growing of illicit narcotic crops, we consider 
it necessary to initiate discussions promptly, and it th erefore seems to us appropriate that you should 
have included the item on the agenda for this and coming meetings.   
2. We have noted with much satisfaction the comm itment made by the Membership of the WTO 
in paragraph 43 of Annex A to the July package, which reads: 
"Full implementation of the long-standing commitment to achieve the fullest 
liberalization of trade in tropical agricultu ral products and for pr oducts of particular 
importance to the diversification of pr oduction from the growing of illicit narcotic 
crops is overdue and will be addressed eff ectively in the market access negotiations." 
3. This was proposed by a group of delegations whic h have joined forces and which, I am sure, 
share our satisfaction with having secured this commitment which will finally make it possible to achieve maximum liberalization for these products in the present Round.  Mr Chairman, as we have 
informed you directly, this group of delegations w ill be contributing to the work of this Committee 
aimed at ensuring that the modalities provide for the commitment to be made operationally effective, as indicated in paragraph 43. 
4. The delegations that are joining forces with this  end in view are those of Bolivia, Colombia, 
Costa Rica, Ecuador, El Salvador, Guatemala, H onduras, Nicaragua, Panama, Peru and Venezuela. 
1. Debt to the developing countries 
5. Mr Chairman, the commitment made in July concerning tropical and alternative development 
products is a commitment to pay a debt owed to  the developing countries by the multilateral trading 
system.   
6. Integration into the world economy is an objective of fundamental importance for our 
countries since it constitutes a useful tool for ac hieving higher levels of economic growth and 
development, which will make a d ecisive contribution to our goal of reducing poverty.  From the 
creation of the GATT to the establishment of the WT O, the world trading system has had the benefit 
of eight rounds of multilateral liberalization, to the great advantage of the sectors involved and the 
participating countries.  However, agriculture has b een the last merchandise sector to be incorporated 
in the system and within that sector trade in tr opical products continues to  be impeded by various 
barriers and distortions.  Its full liberalization is a commitment which, in July, Members decided should not be further postponed. 
7. In fact, the full liberalization of the trade in tropical and alternative de velopment products is a 
long-standing commitment within the multilateral trad ing system which has still to find concrete 
expression.  The subject has been under discussion since the 1950s having been dealt with in the 
Dillon, Kennedy, Tokyo and Uruguay Rounds.  As  a result of the latter Round, the developing 
countries won certain concessions regarding market  access for tropical products and a commitment to 
full liberalization was incorporated in the Agreem ent on Agriculture, a commitment which last July 
we agreed should be effectively addressed in this  Round’s agricultural market access negotiations. TN/AG/R/16 
Page 14  
 
 2. Consistency with the objectives of the WTO, the Agreement on Agriculture and the 
Doha Development Programme 
8. This commitment is a belated but direct out come of the objectives and principles of the 
multilateral trading system.  It is a consequen ce of the Agreement on Agriculture and the Doha 
mandate. 
9. In setting the long-term objective of establishi ng a fair and market-oriented agricultural 
trading system, the Agreement on Agriculture sti pulates that in implementing their market access 
commitments the developed countries would take fully into account the particular needs and 
conditions of the developing countries by providi ng for a greater improvement of opportunities and 
terms of access of products of spec ial interest to those Members and specifically refers to the fullest 
liberalization of trade in tropical and alternative development  products. 
10. In Doha, it was recognized that in ternational trade can play a major role in the promotion of 
economic development and the allevi ation of poverty stress was laid on the need for all our peoples to 
benefit from the increased opportunities and welfar e gains that the multilateral trading system 
generates.  In this connection, it was agreed to  place the needs and interests of the developing 
countries at the heart of the work programme.  
11. The paragraph 43 commitment, which will undoubted ly contribute to the greater integration 
of our countries into the world economy and strengthe n our participation in world markets, is the 
response to a pressing need felt by all the developing countries.   
3. Benefits of liberalization of the trade in  tropical and alternative development products 
12. Recent investigations have clearly shown the be nefits of liberalizing trade in agricultural 
products in general and tropical pr oducts in particular.  Most analysts attribute the increase in 
agricultural trade and income to the elimination of tariffs, tariff escalation and tariff quotas which 
restrict market access. 
13. It has been estimated that trad e restrictions in the develope d countries reduce potential exports 
from the developing world by US$ 37 billion every year.  Each year, the gross domestic product of 
the developing countries is reduced by US$ 14 billion.  We have seen that for some countries and 
specific products these effects can be devastating. 
14. The arguments in favour of liberalizing the trad e in tropical products within the framework of 
the multilateral system are clear and precise.  It would expand the markets for suppliers and their 
opportunities for selling their goods in all the member  countries of the WTO, while providing greater 
certainty and predictability for na tional operators.  The disappearance of tariff and non-tariff barriers, 
including tariff peaks, quotas and tariff escalation, would level out the terms of competition, enable 
niche markets for higher value added products to  be discovered and won, and encourage the 
manufacture of new products.  This would generate  gains for the developing countries, not only in 
terms of new multilaterally created market opportun ities but also in terms of the trade-related 
investment and technological advances that these opportunities would promote. 
15. Workers would have new opportunities for secure an d stable employment.  Greater exports of 
higher value added products would generate better-paid jobs.  Then, on this basis, in many of our 
developing countries it would be possible to develop more efficient processes for the eradication of 
poverty, for the protection of the environment, and for demilitarization, as well as alternatives for 
illicit narcotics crops.  TN/AG/R/16 
 Page 15 
 
 
 16. Thus, the relationship between the liberaliza tion of trade in tropical and alternative 
development products and the devel opment of our countries is undeniable.  In recent years, more than 
two thirds of Latin American countries have deri ved over 50 percent of their export earnings from 
trade in basic products, of which tropical and alternative development products are the most 
important.  In several of our countries, tropical pr oducts alone account for more than 50 percent of 
total exports.   In general, Latin America acc ounts for 60 percent of world tropical fruit exports. 
17. I would like to point out that in order effe ctively to achieve the desired results the 
implementation of the process of liberalization of tropical and alternative development products will 
have to be: 
• Complete, covering all goods, whether or not processed;  
• permanent and unconditional;  
• based on the most-favoured-nation principle.  
18. The developing countries will then have the conf idence to proceed with difficult reforms and 
make commitments in other areas of the current negot iations, as well as to give a decisive push to our 
process of complementary domestic investment and formulation of improved domestic policies for adjusting to international competition. 
4. The other dimension of special and differential treatment 
19. In Doha, it was agreed that special and differentia l treatment should be an integral part of all 
elements of the negotiations and should be embodied in the Schedules of concessions and 
commitments, so as to be operationally effective and to enable developing countries to effectively 
take account of their development needs.    
20. Nevertheless, we consider that so far there has been no serious and structured discussion of 
both dimensions of special and differential treatment.  Until recently, the discussion has been 
restricted to the defensive side of SDT.  This is  also necessary and should also have an operationally 
effective outcome.  Today, however, I would like to refer to the other aspect of SDT, which is so 
important for development and whose implementation is therefore equally necessary.  I refer to the 
offensive or export dimension of SDT.   
21. This is the dimension that enables the export interests of the developing  countries to 
command special attention and receive special satisfacti on or special treatment.  That is to say,  the 
offensive interests dimension of SDT is that  which requires the agricultural market access 
commitments made by the developed countries to be  more extensive and impl emented more rapidly, 
in respect of the products of interest to the deve loping countries.  Paragraph 43 calls for the fullest 
liberalization of trade in tropical and alte rnative development products in this Round. 
22. In view of the above, we consider that para graph 43 goes beyond the traditional and classical 
notion of special and differential treatment, since it promotes the greater integration of our countries 
into the world economy and envisages fair and e quitable opportunities for competing on equal terms 
on international markets.  In short, it is an appr opriate response to the multilateral trading system’s 
long-standing debt to our countries. 
23. Thus, greater and easier access to markets for th e products of interest to us, combined with 
the elimination of all export subsidies and a substa ntial reduction in trade-distorting domestic support, 
will provide the trade benefits we expect from this Round. TN/AG/R/16 
Page 16  
 
 5. Conclusion 
24. In order effectively to address this commitment,  as established in para graph 43, the definition 
of modalities will have to include, at least, the following elements: 
• The market access commitments made in this Round must include the elimination of all 
customs duties and quantitative restrictions on tropical and alternative development products, 
whether or not processed. 
• Tropical and alternative development products should not be classified as sensitive products 
on developed Members' lists.  The modalities fo r the recognition, selection and treatment of 
sensitive products should make  this commitment explicit. 
• Tropical and alternative development products must  have the benefit of shorter time limits 
and faster tariff reduction in developed countries' market access commitments. 
• A "standstill" commitment must be implemente d for tropical and alternative development 
products, so as to prevent Members from increa sing tariffs or other protection specified in 
their schedules of commitments at the outset of  the negotiations, with a view to placing 
themselves in a more advantageous negotiating position.  TN/AG/R/16 
 Page 17 
 
 
 Statement by Honduras  
  
Thank you Mr Chairman, 
1. Like other delegations, the Gove rnment of Honduras would like to thank you for your efforts 
to have the subject of tropical products taken up again in these negotiations.  In this context, we 
consider that paragraph 43 of A nnex A will enable us to continue with the negotiation of modalities, 
which should include a commitment aimed at achi eving full liberalization of trade in tropical 
products, without exceptions of any kind, and whos e implementation should be based on the most-
favoured-nation principle. 
2. For a small economy such as the Honduran economy, which depends largely on its 
agricultural sector the defensive and offensive side s of SDT (special and differential treatment) are 
equally important:  on one hand, our producers need to be protected from both subsidized imports and 
from imports receiving distorting domestic support and, on the other hand, the most important 
Members of this Organization need to grant access  that is tariff-free and free from non-tariff barriers 
for those products for which we have certain compara tive advantages.  Accordingly, we consider that 
the commitment that has existed in this Organi zation for many years with various developing 
countries that have a strong interest in obtaining real access for tropical products in the international 
market must be made operational in the forthcom ing modalities for negotiations in the agricultural 
sector. 
3. Consequently, we share the ideas put forward by  the delegation of Costa Rica that in the 
course of working out the modalities under paragra ph 43 commitments should be clearly established 
on: 
- The total elimination of tariffs and non-tar iff barriers for tropical products of all kinds; 
- such products should not be included in the sensitivities of the developed Member 
countries. 
4. There should be a commitment to respect the stat us quo, so as not to raise tariffs on tropical 
products of interest to the developing countries in  the course of these negotiations.  We are ready to 
work positively for such an end and we believe th at balance in these negotiations is the way to 
achieve the success that we all desire in this development round. 
Thank you very much.  TN/AG/R/16 
Page 18  
 
 Statement by Colombia
 
  
Thank you, Mr Chairman, 
1. I should like, if I may, to thank you for includi ng the subject of paragraph 43 of last July's 
Framework Document in the agenda of this week's session, a subject on which we expressed our 
interest during the October session.  At that session we referred to some documents which Colombia 
had previously submitted on the issue of the produc tion of crops from which illicit drugs are made, as 
well as the documents which it sponsored with othe r Andean countries on such products and on the 
tropical products, and which were presented at previous stages of these negotiations and which 
provide us with background material on this subject. 
2. We understand that this is the first meeti ng providing an opportunity for a wide-ranging 
discussion of the subject of tropical products and th e alternative products involving the eradication of 
illicit crops, as referred to in the preamble to the Ag reement on Agriculture, and which we shall later 
have the opportunity to discuss in greater depth. 
3. As Costa Rica, Bolivia and other delegations ha ve already observed, this is a subject which 
began to be discussed in this Organization a l ong time ago and is still awaiting a comprehensive 
solution.  Document MTN.GNG/NG6/W/1 of 20 Februa ry 1987, which is a Note by the Secretariat on 
Tropical Products, outlines the background to thei r examination in the mu ltilateral negotiations going 
back over forty years, and which, ever since, has had a similar objective to that which we are pursuing 
today, i.e. the full liberalization of trade in such products, that being understood to mean the 
elimination of tariffs and of non-tariff barriers. 
4. Our objective in the negotiations launched in Doha  continues to be the same, given that it is 
consonant with the Doha Development Agenda which seeks to further trade liberalization in 
agricultural products and to promote developmen t, taking into account special and differential 
treatment. 
5. As regards furthering trade liberalization in such products, whether they be unprocessed or 
processed products, what we are seeking to achieve on this occasion is to give concrete effect to the 
elimination of tariffs and tariff quot as, which have become new kinds of  barriers to trade, as well as 
the elimination of any other measure that restricts their access, such as the application of safeguards.  
We also hope that this programme of tariff elimin ation will be achieved in a short period of time.  
Consequently, such products should not be include d by the developed countries in the category of 
sensitivities. 
6. As regards development and special and diffe rential treatment, we understand it on the basis 
of the preamble to the Agreement on Agriculture and in the terms expressed by Costa Rica and others.  
This forms part of the offensive interest of th e developing countries in these negotiations, since we 
believe that, with regard to market access, obtaini ng free access for our main export products, such as 
tropical products and alternative development products, is one of the key elements of special and 
differential treatment.  Effective international co-responsibility with the countries that strive for the 
elimination of the production and marketing of illi cit substances must also find expression in the 
WTO through concrete and effective disciplines re garding market access and modalities to follow up 
and achieve the objectives that we seek. 
7. With regard to the study requested by the G-20 we consider that account should also be taken 
of other studies relating to tropical products, such as those by UNCTAD, the IMF and the World 
Bank.  TN/AG/R/16 
 Page 19 
 
 
 8. We shall be attentive, Mr Chairman, to yo ur guidance on how to pursue our discussions in 
depth on the subject specified in paragraph 43 and sh all be making more specific contributions when 
the opportunity arises. 
Thank you very much. TN/AG/R/16 
Page 20  
 
 Statement by China
 
  
Thank you Mr. Chairman, 
1. First of all, I would like to extend our great  appreciation to you and the Secretariat for 
starting, as you called, the Room D process to conduc t intensive technical discussions on those topics 
which had been taken up during the October mee ting. And thank you for sending out a useful 
background paper on the complicated issue of ad valorem equivalents conve rsion to facilitate the 
relevant discussions.  
2. Secondly, I would like to reiterate my comment s made on behalf of the G20 during the last 
special session on our working procedure that it shoul d proceed from the general to the specific, from 
rules to possible exceptions, but not the other way r ound. The fundamental point here is that a list of 
tasks cannot be drafted without reference to central  issues in the negotiations. It seemed that you came 
to realize this point when we discussed the base  level of possible TRQ expansions. Both Brazil, on 
behalf of G20, and European Communities, asked to put this issue in a more general context of tariff 
reduction formula or the treatment for sensitive produc ts, and you promised to adjust your working 
procedure. 
3. Thirdly, please allow me to take this opportunity  to repeat once again our basic concerns in 
TRQ expansion. We think that the base level fo r possible future expansion for developing members 
should be a percentage of the domestic commercia l consumption. According to the WTO statistics, 
there are 38 members applying tariff quotas to grai n products, namely wheat, rice and corn, and the 
total volume of tariff quota in grain products am ounts to 60 million tons. However, now China’s TRQ 
commitment in grain products now reaches more than 22 million tons, which accounts for 37% of the 
total global TRQ volume in grain products. China’ s TRQ commitments have now gone far beyond the 
5% minimum market access requirement. Being a Recently Acceded Member, China has made extraordinary commitments. Take wool, for example, our quota is more than 72% of our domestic 
consumption. Mr. Chairman, it is well known that China has a rural population of 900 million, which 
is 70% of our total population. And most of our farmers are producing grains  only for subsistence. 
That is to say, they themselves consume a large prop ortion of grains they produce. Therefore, I think 
it is much more equitable to exclude this part from the total consumption and the tariff quota should 
be calculated on the basis of the commercial domestic consumption. 
4. Mr. Chair, we reconfirm our commitments to work closely with you and all members to the 
steady progress of the DDA negotiations. 
Thank you.  TN/AG/R/16 
 Page 21 
 
 
 Statement by Peru  
  
Tropical Products and Products of Particular Importance to the Diversification of  Production from the 
Growing of Illicit Narcotic Crops (Paragraph 43 of Annex A to the Framework Document) 
1. Mr Chairman, I should like to thank you for your communication of 3 November and for the 
organization of the work.  My delegation is in  agreement with the approach proposed for the 
consideration of the items.  
2. With regard to the item that we are now discussing, we are grateful to you for the opportunity 
given to us to carry out an introductory survey and a general examination of th e subject and its extent, 
which we consider will serve as a basis for a subse quent in-depth examination on the basis of the 
technical studies.  
3. My delegation fully supports the whole of th e statement made by Costa Rica and the G-20 
proposal that the Secretariat should undertake a study on the subject.  
4. As the Marrakesh Agreement i ndicated, the creation of the WTO responds to the necessity 
and the interest of achieving a multilateral trading sy stem that is more just and more open, balanced 
and market orientated, through trade liberalization, the strengthening of its rules and the elimination 
of protectionist pressures of all kinds.   
5. Reform of the Agreement on Agriculture should be  directed towards the attainment of such 
objectives and, in this context, paragraph 43 of Annex A to the Framework Document has particular importance for my country.  This commitment is also  recognized in the preamble to the Agreement on 
Agriculture, and for this reason it is  of fundamental importance that its  full application be achieved in 
this Doha Round.  
6. As has been pointed out, the liberalization of tropical products has been an important element 
in negotiations since the 1950s and was part of the Dillon Round, the Kennedy Round, the Tokyo 
Round and the Uruguay Round.  That is to say, we  have been discussing this subject for over 50 
years.  
7. Accordingly, Peru considers it to be essentia l that in this development round modalities are 
agreed so as to make this commitment operationa l and applicable through effective market access 
involving the elimination of tariffs on tropical and alternative products , including added-value 
products which are produced and exported by the developing countries.  
8. The fulfilment of such long-standing commitmen ts should be reflected in obligations based 
on the MFN principle and bound under Article II of the GATT 1994.   
9. The fullest liberalization of trade in tropical  agricultural products and for products of 
particular importance to the diversification of pr oduction from the growing of illicit narcotic crops is, 
as the delegation of Costa Rica has indicated, an offens ive aspect of special and differential treatment.   
10. Special and differential treatment cannot be seen  solely from the defensive angle or from the 
point of view of imports; it is essential that account also be taken of the importance of exports and, 
consequently, of market access for the products of the developing countries.   
11. As you indicated in your communication to the TNC on 30 June 2003, the development 
dimension also requires that such offensive inte rests of the developing countries be dealt with 
expeditiously and thoroughly in the nego tiations for the adoption of modalities.  TN/AG/R/16 
Page 22  
 
 12. I should like to point out, in this context, that  in 2003 exports of tropical products represented 
over 40 per cent of the total of agricultural exports  for my country and represented 60 per cent of the 
agricultural exports of Latin America as a whole. 
13. I should particularly like to stress the importance of alternative development, a theme to 
which the Ambassador of Bolivia referred at length.  Peru has been making a serious and costly effort 
to bolster the programmes of alternative devel opment.  Such programmes are directed towards 
promoting lawful economic activities which can in crease competitiveness and contribute to rural 
development.  In this context, access to the ma rkets of the developed countries will provide an 
extremely important incentive in raising the profita bility of the products wh ich crop substitution will 
permit.  
14. Finally, Mr Chairman, I should like to state that my country will only consider there to be a 
balance between the pillars of th e agreement which is necessary fo r final agreement on the modalities 
to the extent that there are operational and signifi cant measures on special and differential treatment 
with regard to market access. 
Thank you very much.   TN/AG/R/16 
 Page 23 
 
 
 Statement by Turkey  
  
Thank You Mr. Chair, 
1. Allow me to begin by extending our appreciation   of  my delegation  for your efforts in 
chairing special sessions of the AoA and the technical discussions during this week. 
2. Following your path Mr. Chair, I would like to take this opportunity to briefly evaluate the 
emerging shape of negotiations   and how we see the process in general. 
3. First of all, Mr. Chair, what we have witnessed   in light of the discussions taken place during 
this week  is that we are again in the mood of  negotiations which is of course encouraging for 
completing the rest of  our task. 
4. Secondly, on the basis of the discussions of the whole week,  we again noted that there are 
issues  relatively ready to detailed  technical examin ations whereas there are others still far away from 
reflecting  common understanding. Th is is of course considered as a confirmation of the need to 
proceed   in line with the “two-stage process” without limiting our rights   to make necessary 
adjustments  in further steps. 
5. Regarding the third layer which we have just l earned, we would like to draw your attention to 
the fact that there are some countries which are not  a member of a group at present  or the group that they take part might be only for  specific issues.   
6. In the margin of these general observations Mr. Chai r,  I would like to draw your attention to 
the followings which are considered crucial  in order to secure  more fruitful and constructive 
discussions  to take place in the upcoming steps. 
• Participation, inclusiveness and transparency  of all technical discussions  including open-
ended nature of  so called  Room D process should continue. 
• Bearing in mind that, we are at the stage of negotiating  building blocs of detailed modalities 
agreement, concerns, expectations and needs of each and every member worth addressing in order to avoid any “fait accompli” . This is al so crucial   to have the common ownership of 
the outcome at the end of the day.  
• In order to find an opportunity to further di scuss issues in details   and make use of 
possibilities   to narrow existing gaps, informal consultations   between different groups and 
countries should be carried out on a regular basis.    
7. We would also like to endorse what have been  said by the distinguished Ambassadors of 
Indonesia and Philippines in regard to the third layer. 
8. Concluding my words Mr. Chair,  I would lik e to express our readiness to make necessary 
contribution in the future process on the basis of the above mentioned topics. 
9. Regarding paragraph 43 of July Package, Anne x A which calls upon fullest liberalization of 
trade in tropical products, we see a slight difficult y to take some solid steps and contribute more, 
stemming from lack of any agreed definition or  a list of tropical products. 
10. From a broader   perspective, any product that is mainly produced in the tropical regions 
could be classified as tropical products or we may refer to previous discussions. TN/AG/R/16 
Page 24  
 
 11. However, we know that   some other products of export interest to the developing countries 
could well be treated within the concept although they might not be solely produced in the tropical regions of the world. 
12. We believe that it would make our work more targeted if we build a common   ground and 
clarify this concept. By that we can also pr oceed in a most effective and predictable way. 
Thank you.  TN/AG/R/16 
 Page 25 
 
 
 Statement by El Salvador  
  
Thank you Mr Chairman, 
1. We should like to thank you for the way in whic h you have conducted the work this week and 
for including the tropical products item on the agenda, for it is of great importance to my delegation. 
2. El Salvador welcomed the commitment made in the context of negotiations last July on "the 
fullest liberalization of trade in tropical products  and for products of par ticular importance to the 
diversification of production from the growing of illicit narcotic crops".  In this regard, I should like 
to highlight some of the considerations set out by the distinguished Ambassador of Costa Rica. 
3. As stated in paragraph 34 of Annex A, full lib eralization of trade in tropical products is a 
long-standing commitment within the multilateral trad ing system, and we consider that meeting this 
commitment is essential in order to attain higher levels of economic growth  and development in our 
countries. 
4. Furthermore, I should like to lay emphasis on the importance of special and differential 
treatment as integral to all elements of the current  negotiations, and it must be operationally effective 
and lead developing countries to effectivel y take account of their development needs. 
5. El Salvador attaches the greatest importance to the defensive side of the special and 
differential treatment and also to the offensive dimension, so that the export interests of developing 
countries will command special attention.  In this re gard, the fullest liberalization of tropical products 
is regarded as essential in order to comply with th e offensive dimension of special and differential 
treatment, thus helping to promot e greater integration of our countries into the world economy and 
strengthening the share of our exports on world markets. 
Thank you Mr Chairman. TN/AG/R/16 
Page 26  
 
 Statement by Bolivia
 
  
Mr Chairman, 
1. I should like, if I may, to begin my statement by drawing attention to the criterion of balance 
which can be clearly seen in the thematic age nda for this special session of the Committee on 
Agriculture, since we are examining subjects of inte rest to all WTO Members, in a useful sequence, 
by having adopted, in our practice, a phased process of revision and discussion. 
2. On this occasion, the inclusion of the exam ination of paragraph 43 of Annex A of the 
framework document, approved by a decision of the Ge neral Council on 1 August this year, is one of 
the key aspects which Bolivia, as a developing count ry, is concerned to see implemented within the 
market-access pillar. 
3. My colleague, the Ambassador of Costa Rica, h as clearly explained the past history and the 
outcome of the discussions in the agricultural negot iations on both tropical products and the substitute 
products for illicit crops – to call them by a simplified term. 
4. However, apart from the longstanding commitments in these areas the introduction of 
concrete measures constitutes – as the G-20 have also emphasized – a key element of special and differential treatment for the developing countries,  under the most-favoured-nation principle, with a 
view to the substantial improvement in market access that our Ministers agreed in Doha.  Consequently, any progress made would, at any time, enable the balan ce of the agricultural 
negotiations to be assessed. 
5. Mr Chairman, since these subject s are at their initial stage of examination, which gives us 
room to make a few points, I should like to take th is opportunity to draw attention to the commitment 
set out in the preamble to the Agreement on Agricultur e, namely, to grant "the fullest liberalization of 
trade ... for products of particular importance to th e diversification of production from the growing of 
illicit narcotic crops". 
6. Bolivia, which has played a leading role in asser ting the principle of shared responsibility and 
in the initiative for multilateral certification, has regr ettably had to face a threefold reality:  being a 
producer country, a transit country and gra dually becoming a country consuming illicit drugs. 
7. In the 1970s crops of coca leaves covered an area of 3,500 hectares;  at the beginning of the 
1980s the consumption of cocaine in major world c ities led to an increase in production covering 
12,600 hectares, while in the 1990s production had extended to 50,300 hectares, showing an increase 
of 1,337 per cent in three decades. 
8. The work of eradication carried out between 1986 and 2004, which affected 90 per cent of the 
production of illicit coca leaf, covered a total of 119,334 hectares, thereby preventing the production 
of 898 metric tonnes of cocaine paste.  Mr Chai rman, the efforts by Bolivia during the period in 
question, including the destruction of coca seed-bed s, prevented the production of 1,418 metric tonnes 
of cocaine paste, which is equivalent to th e world production of this drug for two years. 
9. The eradication to which I have referred has gone  hand in hand with the work of "alternative 
development" as the main plank of the Bolivian comprehensive strategy to combat illicit drug 
trafficking.  Alternative development is a means of reducing poverty and the marginality of the coca 
producers and seeks to contribute to the reconversi on of a sector of the illegal economy into a legal 
economy.  Accordingly, efforts have been direct ed towards the development of projects involving 
alternative products, which hardly generate inco me similar to that achieved through cocaine  TN/AG/R/16 
 Page 27 
 
 
 trafficking, especially on account of the deficiencies in physical infrastructure which create obstacles 
in the marketing chain for our limited supply of agricultural products. 
10. I am sure, Mr Chairman, that the situation I have  just described is not peculiar to Bolivia and 
thus we hope that the offensive interest which we con tinue to take in this area of the negotiations will 
have a positive response, in particular because, apart from there being a commitment outstanding in 
the trade negotiations, this also represents a joint task reflecting the shared responsibility of all the 
Members. 
Thank you very much. TN/AG/R/16 
Page 28  
 
 Statement by Switzerland
 
This is a statement on behalf of Chinese Taipei , Iceland, Israel, Japan, Korea, Liechtenstein, 
Mauritius, Norway and Switzerland 
TRQ Administration 
1. The issue of TRQ Administration should be placed in its proper context as an element of the 
Framework, which should give the flexibility required to reach a final balanced results (paragraph 35 
of the Framework). Revisions of present rules may be necessary in order to ensure effective and full access to TRQs in accordance with th e existing scheduled commitments. Efforts in this area should be 
credited to importing countries as part of thei r contribution to the negotiations' outcome.  
2. We would like to offer some preliminary co mments on the issue of TRQ administration. 
3. Many TRQs were introduced under the Urugua y Round commitments to give exporters 
assurance of continued market access opportunities.  
4. The Agreement on Agriculture does neither prescrib e particular modes nor specify clear rules 
for the TRQ allocation and administration proce dures - but other WTO agreements  (GATT 1994, 
Agreement on Import Licenses etc.) do contain a number of such rules. Members have therefore 
applied a wide range of allocation methods.  
5. On the basis of the experience made over the firs t ten WTO years, it appears that, to a certain 
extent, greater discipline and transparency in TRQ administration could be necessary. In our view, the 
main challenge for the ongoing negotiations with regard to TRQ allocation methods is to define 
transparent and non-discriminatory procedures, in the light of existing WTO rules and disciplines.  
6. These disciplines should also be defined to incr ease the reliability and the security of the 
management of TRQs such that the concessions  granted result in real trade opportunities. 
7. In addition, Members should retain the discr etion to apply allocation methods aimed at 
counteracting anti-competitive or rent-seeking beha viours by importers’ coalitions. Such practices 
ought to be curtailed because they result in in efficient allocation and higher consumer prices.  
8. In conclusion, we submit that the issue of TR Q Administration needs to be approached in a 
pragmatic manner. The main objective should be to allow - irrespective of the allocation methods – 
for the highest possible quota fill under competitive market conditions and the prevailing terms of 
trade. This should be understood as a contribution to the objective of substantial improvements in 
market access. 
9. Meaningful S&D should be provided to developing countries. 
Base for possible TQ expansion 
10. We de not consider that this issue can be envisag ed in clinical isolation of the other elements 
of the Market Access pillar. We wish to revert to  the base for possible TQ expansion when we have 
reached more clarity on market access commitments on the whole. 
Tropical Products 
11. The discussion on Tropical Products should be viewed in the light of the flexibility provided 
for under paragraphs 31 and 39-41 of the Framework.  TN/AG/R/16 
 Page 29 
 
 
 Methodology for Product Specific AMS Cap 
12. The Framework states that product-specific AMSs  will be capped at their respective average 
levels according to a methodology to be agreed. The G10 submits that the base for such capping 
should be the data notified by Members in accordan ce with Table DS:4 annexed to document G/AG/2 
entitled "Notification Requirements and Formats". Th is table contains the requisite data on product-
specific AMS.  
13. It remains to define a reference base period in  order to establish the values that will be 
capped. Since the capping of product-specific AMS has been decided on 1st August 2004, it is only natural that only values over the years preceding that date should be considered. 
14. It also appears that the most recent year for which a sizeable number of Members have 
provided their notification is 2001. So, the number of  data available to design a multi-year reference 
period after the UR implementation period is limited.  
15. For developed countries, one way of dealing with this problem would be to use the arithmetic 
means of the product-specific AMSs (monetary values) notified to WTO over the Uruguay Round 
Implementation Period (the six-year period commencing in the year 1995), excluding the highest and 
lowest entry. 
16. Developing countries should be able to use th e longer implementation period they are entitled 
to according to Article 15 of the URAA.  
17. In case product-specific AMSs are not availa ble during the base period, including where 
product-specific AMS values are below the current permitted de minimis level, product-specific AMS 
could be capped at a certain level of the production value of each product. It goes without saying that 
any disciplines to be negotiated in this area should not serve to undermine legitimate reform measures 
taken by Members during or afte r the UR implementation period. 
Base/reference periods in the context of domestic support commitments 
18. This issue arises in connection with a number of commitments, including the determination of 
the overall base level of all trade-distorting domes tic support. In addition to the Final Bound total 
AMS, this aggregate comprises permitted de minimis and Blue Box levels. 
19. As for de minimis levels, a reference period needs to be agreed to determine (i) the total value 
of production of a basic agricultural product (for product-specific support) and (ii) the value of a Member's total agricultural production (for non-pr oduct-specific support). For both values it seems 
sensible to use the same base period as the "histori cal period" referred to in paragraph 15 of the 
Framework for the purpose of the Blue Box capping. 
20. On the Blue Box, the Framework states that "the base for measuring the Blue Box component 
will be the higher of existing Blue  Box payments during a recent representative period to be agreed 
and the cap established in paragraph 15". 
21. With regard to the recent representative period to  be agreed, it appears that this should not 
include data that have not been provided to WTO before 1st August 2004. So, the level of existing 
Blue Box payments should be the arithmetic mean of  the three most recent va lues in Table DS:3 that 
have been notified before 1 August 2004. 
22. As for the determination of the Bluebox valu e resulting from the cap, the Framework states 
that "Blue Box support will not exceed 5% of a Member’s average total value of agricultural TN/AG/R/16 
Page 30  
 
 production during a historical period. The historical  period will be established in the negotiations." 
Our construction of the notion "historical period" is  that such a period should be representative of 
economic realities observed in a segment of the past  marked out by Members in the WTO history of 
agricultural reform. That is obviously the UR Implementation period.  
23. So, for the average total value of  agricultural production we consider that it is appropriate to 
use the arithmetic mean of the yearly values dur ing the UR implementation period, excluding the 
highest and the lowest entry.   
Possible topics for the December agricultural week 
24. In the current phase of the negotiations on agri culture, Members agreed to concentrate their 
work on technical issues. It is true that the fron tier between technical and so-called political issues is 
somewhat blurred. Discussions have shown that views are sometime diverging on that score. We 
consider that the Chairman should enjoy some discr etion in selecting technical issues we should dwell 
on after having heard the Members.  
25. Among the possible topics listed in the note circulated by the Chairman on 3 November, the 
we think that the following issues would lend themselv es to useful technical work : certain aspects of 
the formula, SSG, preferences, differential export tax es and export restrictions. We also believe that 
the political dimension of the other issues is such  that they do not lend themselves to a technical 
discussion in the current phase of negotiations.  TN/AG/R/16 
 Page 31 
 
 
 Statement by Venezuela  
  Tariff quota administration 
1. Support the ideas raised in the statement of the G-20 read out by the delegation of Thailand. 
2. Any tariff quota commitment made during these negotiations must be accompanied by an 
effective system of administration that which will effectively produce the impr ovements that are being 
sought, on both the offensive and defensive side, so as to respond positively to the Doha Mandate 
regarding the market access pillar. 
3. Our experience as Members in applying the r esults of the Uruguay Round is a necessary 
element to take into account in dealing with this matter. 
4. Extensive and quite interesting technical/subs tantive work was done during the pre-Cancún 
phase and it could be taken up again now.  Even th e Harbinson text is a good point of departure for 
the discussions, over and above the shortcomings, some of which have been mentioned by the 
delegation of Colombia, and with whom we agree in this regard. 
5. However, in the pre-July phase, owing to di fferent circumstances, items such as quotas did 
not play a key role in the negotiating process.  Acco rdingly, at this stage all the proposals are still on 
the negotiating table at a time when the framework Agreement does not impose restrictions in this 
connection and merely emphasizes the importance of effectively enhancing th e operationality of tariff 
quota administration, without giving further guidelines to prejudge our basic positions.  It is now that 
we should take up the technical debate that wa s pushed aside and lay the foundations to find a 
solution to this matter. 
6. During this phase of technical work, the discu ssions on the different methods of allocation 
need to be resumed.  While it is difficult to find a universal method that will satisfy us, we need to be 
sure that there are rules that discipline the existing methods, so as to avoid problems such as 
discrimination. 
7. There are other items of great importance that need to be tackled, more especially those 
relating to unfilled or totally f illed quotas, import requirements, conditions, formalities and charges 
and more particularly special and differential treatment in offensive and defensive terms. 
8. Special and differential treatment has to be cons idered with particular attention and provisions 
have to be worked out to correct the problems a number of Members have faced in implementing the 
present Agreement.  For Venezuela in particular, a nd simply to cite an example, special attention 
needs to be paid at this stage to national harv est requirements before the opening of quotas, as our 
experience with the existing discip lines has not been very favourable  and our domestic production has 
often been displaced by imports, which in many  instances are subsidized, and do not compete under 
the same conditions. 
Tropical Products 
1. We endorse the Costa Rican delegation's stat ement, as it sets out very succinctly the 
GATT/WTO history of tropical products and our exp ectations in this Round of Negotiations, bearing 
in mind more particularly the central role of such products and of free international marketing for our 
economies, and above all for rural development and poverty reduction. TN/AG/R/16 
Page 32  
 
 2. Secondly, we also endorse the statement made by  the delegation of Bolivia on behalf of the 
G-20. 
3. As emphasized in both statements, the topic of tropical products is an outstanding debt to the 
developing countries, a debt that efforts have been  made to solve in several rounds of negotiations, 
without any success whatsoever.  
4. With the Uruguay Round, however, a step was taken in the right direction and now in this 
Round, and more particularly with the decision of last July (Annex A, paragraph 43), we have great 
expectations that at last results will be achieved that can provide an appropriate response to this 
matter. 
5. We would emphasize that in the developing countries we have pushed for special and 
differential treatment within the Doha Round and of ten we have tended to do this simply from a 
defensive rather than offensive side.  Neverthele ss, we are sure that the opening up of developed 
country markets for our tropical products, among othe rs, is one way of granting effective special and 
differential treatment for developing countries.  This  is the offensive stance that my country, with 
many other Members, takes in these negotiations. 
6. We hope that when this item is taken up at future  meetings in this technical phase, particular 
attention will be paid to the role played by pro cessed tropical products, which are of great importance 
to Venezuela and must be taken into account when  speaking of liberalization of this category of 
products. 
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