WORLD TRADE  
ORGANIZATION  TN/MA/W/75/Add.1 
27 March 2008 
 (08-1365) 
Negotiating Group on Market Access Original:   English 
  
 
MARKET ACCESS FOR NON-AGRICULTURAL PRODUCTS 
 
Negotiating Proposal on 
 
Tariff Liberalisation in the Forest Products Sector1 
 
Communication from Canada; Hong Kong, China; New Zealand;  
Singapore; Thailand and the United States  
 
Addendum  
 
 
 The following communication, dated 26 March 200 8 is being circulated at the request of the 
Delegations of Canada;  Hong Kong, China;  Ne w Zealand;  Thailand and the United States. 
 
_______________ 
 
 
 Sectoral tariff elimination will play an important and essential role in achieving improvements in market access in the NAMA negotia tions, including the reduction or elimination of 
tariff peaks, high tariffs and tariff escalation.  In response to the NAMA Chairman's request in 
Paragraph 12(a) of his Draft Modalities for Non- Agricultural Market Access (TN/MA/W/103) that 
Members participating in each sectoral initiative develop specific modalities by the time the overall 
modalities are established, the co-sponsors of the Forest Products Sectoral Initiative have drafted 
the attached modality (see Annex 1) to elaborate how  Members participating in this sectoral initiative 
would be expected to reflect that participation in  their national tariff schedules at the relevant stages 
of the negotiations. 
 The elements of the draft modality are based on the results of analyses of Members’ tariff 
schedules, including final bound rates resulting from a ra nge of different Swiss coefficients and their 
relationship to current applied rates for forest pr oducts, as well as conver sations with Members on 
their interests and sensitivities in the forest sector. 
 The draft modality has been separated into three parts. 
1. Procedures/Process 
 Proponents envision the sectoral will progress in line with the overall NAMA timetable set 
forth in Draft Modalities. Proponents wish to achieve  a participation rate of Members accounting for 
90 percent of world trade in forest products (A nnex 2 shows the import and export figures for WTO 
Members and their share of world forest product trade; current total participation is almost 
42 per cent). Members wishing to participate in the sectoral should reflect, on a conditional basis, the 
forest sectoral modality in their draft schedules (to be drawn up after the general modalities in NAMA are agreed upon).  Members that have indicated thei r participation in their draft schedules should meet 
                                                     
 
1 This document was circulat ed earlier as a JOB(06)/128. TN/MA/W/75/Add.1 
Page 2  
 
  to review how they wish to proceed if the 90 pe rcent trade coverage level has not been achieved 
focusing on whether there is sufficient participat ion to continue, whethe r additional outreach is 
required to raise the participation rate, or whether the participation rate is too low for a successful 
outcome. 
2. Principal Sectoral Modality 
 Developed Members will reduce their tariffs to duty free on all forest products as of 1 January 
in the year immediately following the conclusion of  the round, while developing Members will reduce 
their tariffs to duty free in four equal steps (three years). 
3. Special and Differential Treatment 
 Proponents have suggested developing Members with sensitive tariff lines within the product 
coverage may choose a limited number of tariff lines (covering a limited proportion of their forest 
product imports)  where, instead of eliminating the ta riffs, they reduce them to a rate of [4%] over the 
same time period as in the principal sectoral modality.  Developing Members may also choose a limited number of lines on which to eliminate tariffs ov er seven equal steps (six years).  In both cases, 
co-sponsors believe [4%] of a Member's national tari ff lines would be appropriate for S&D treatment.   
 This means that a developing Member could c hoose up to [8%] of its forest product tariff 
lines for a different treatment than the principal sectoral modality.  Proponents have also suggested 
that a Member may choose to combine these two diffe rent options such that a tariff line could be 
reduced to [4%] over seven equal steps, but that doi ng so would count twice towards the total eligible 
lines. 
 Lastly, the proponents of the Forest Products  Sectoral initiative have been encouraging 
developing Members to inform us if there are othe r types of special and differential treatment that 
they would be interested in so that they could beco me a participant in the sectoral.  Some have come 
forward with suggestions that forest products propone nts are currently considering.  We will continue 
to welcome further suggestions or comments on how the draft modality may be improved to meet the 
needs of all Members who will become par ticipants in this sectoral initiative.   
Recent Support from Forest Product Industries in Various WTO Members
 
 
 In the last few months, forest products indus try associations in various WTO Members have 
expressed their support for the Forest Products Sector al Initiative as part of the overall NAMA results.  
At its founding meeting in Shanghai, China in Se ptember 2007, the first resolution of the World 
Furniture Confederation (WFC) expressed support for the elimination of all import tariffs on furniture 
and the materials used in the construction of furn iture.  The Members of the WFC include furniture 
industry associations in China, Turkey, Brazil, Jap an, Malaysia, Tunisia, Korea, Croatia, Norway, 
Indonesia, the Philippines, Singapore, Thailand, Au stralia, the United States and seventeen Member 
States of the European Communities.  In addition, the Confederation of European Paper Industries 
provided its support for the forest products sectoral  initiative in a position paper in January 2008.  
Finally, Canada, as the lead propone nt of this sectoral initiative, has recently had the opportunity to 
meet and describe the forest products sectoral initia tive to a number of forest and paper industry 
associations from developing and developed Member s, many of whom have communicated their 
support or interest. 
 
    TN/MA/W/75/Add.1 
 Page 3 
 
 
  ANNEX 1 
 
DRAFT Modalities for the Liberalisation of Tariffs 
in the Forest Products Sector  
 
 In accordance with paragraph [12(a)] of th e NAMA modalities, this document sets out 
modalities for the reduction or elimina tion of tariffs on forest products id entified in Section (4) as part of 
a non-mandatory forest produc ts sectoral initiative. 
 
1. Procedures/Process 
 Participants in the forest products sectoral in itiative are expected to  fulfil the commitments 
described in these modalities if ‘critical mass’ is reached, that is if WTO Members representing at least [90] per cent of world trade in forest products  have indicated their intent to participate. 
  Members are encouraged to notify proponents a nd the WTO Secretariat of their participation 
no later than two months after the establishment of NAMA modalities. When submitting their initial 
draft tariff schedule each participant shall record its commitments on a conditional basis relating to 
forest products in conformity with the modalities herein.
2 
  Participants should meet no later than one month after the submission of draft schedules to 
review the state of participati on and decide how to proceed.   
 
2. Principal Sectoral Modality 
(i) Developed country participants will elimin ate tariffs on the products identified in 
Section (4) on 1 January of the year follo wing the entry into force of the DDA result. 
 
(ii) Developing country participants will elimin ate tariffs on the products identified in 
Section (4) in four equal rate reductions. Th e first reduction will be implemented on 1 
January of the year following entry into  force of the DDA results and each successive 
reduction shall be made effective on 1 Ja nuary of each of the following years. 
 
3. Special and Differential Treatment 
 Developing country participants may apply the following flexibilities with respect to 
Section (2) (ii):  
(i) choose up to [4] percent of their national fo rest product tariff lines to bind at not more 
than [4] percent provided they do not exceed  [4] percent of the total value of a 
Member’s forest product imports; and 
(ii) choose up to [4] percent of their national fo rest product tariff lines to implement their 
tariff reductions in seven equal rate reductions. The first reduction will be 
implemented on 1 January of the year follo wing entry into force of the DDA results 
and each successive reduction shall be made effective on 1 January of each of the following years. 
(iii) [Other S&D proposals may be considered.] 
                                                     
 
2 Those Members having their schedule prepared by th e Secretariat will notify their participation to the 
Secretariat.  TN/MA/W/75/Add.1 
Page 4  
 
   
 In any year in which an affected tariff w ould be reduced further by commitments resulting 
from the agreed NAMA modalities than  by these sectoral modalities, the lower of the resulting tariffs 
will be applied to the affected tariff line.   4. Product Coverage 
 
HS Code Description 
HS 44 Wood and articles of wood; wood charcoal 
HS 47 Pulp of wood or of other fibrous cellulosic material; 
recovered (waste and scrap) paper or paperboard 
HS 48 Paper and paperboard; articles of  paper pulp, of paper or of 
paperboard 
HS 49 Printed books, newspapers, pict ures and other products of 
the printing industry; manuscripts, typescripts and plans 
HS 9401.61 Upholstered seats with wooden frames  
HS 9401.69 Other seats with wooden frames 
HS 9403.30 
 Wooden furniture of a kind used in offices 
HS 9403.40 Wooden furniture of a kind used in the kitchen 
HS 9403.50 Wooden furniture of a kind used in the bedroom 
HS 9403.60 Other wooden furniture 
HS 9403.80 Furniture of other materials including cane, osier, bamboo 
or similar materials 
HS 9406 Prefabricated buildings 
  
  TN/MA/W/75/Add.1 
 Page 5 
 
 
  ANNEX 2 
 
World Trade in Forest Products 
 
Reporter Forestry + 
Furniture 
Imports Forestry + 
Furniture 
Exports Total Trade Share of 
Total 
Trade Cumulative 
Shares 
WTO Members 
Total $233,897,800,89
0 $208,806,362,545 $442,704,163,435 100.00% 100.00% 
USA $69,276,923,381 $30,385,312,474 $99,662,235,855 22.51% 22.51% 
Canada $12,817,061,904 $39,276,217,504 $52,093,279,408 11.77% 34.28% 
Switzerland $6,793,572,450 $3,637,039,635 $10,430,612,085 2.36% 36.64% 
Hong Kong, China $4,588,070,314 $4,612,295,798 $9,200,366,112 2.08% 38.71% 
Thailand $2,196,368,524 $2,999,690,922 $5,196,059,446 1.17% 39.89% 
Singapore $2,015,791,751 $1,952,708,573 $3,968,500,324 0.90% 40.78% 
New Zealand $1,221,653,323 $2,078,284,169 $3,299,937,492 0.75% 41.53% 
EU-27 $36,463,710,849 $47,840,200,727 $84,303,911,576 19.04% 60.57% 
China $16,832,256,568 $19,049,965,973 $35,882,222,541 8.11% 68.68% 
Japan $17,752,687,768 $3,736,336,301 $21,489,024,069 4.85% 73.53% 
Mexico $7,336,990,386 $2,912,719,252 $10,249,709,638 2.32% 75.85% 
Indonesia $1,523,989,561 $7,705,424,725 $9,229,414,286 2.08% 77.93% 
Malaysia $2,131,381,608 $6,402,080,243 $8,533,461,851 1.93% 79.86% 
Brazil $1,148,210,212 $7,344,360,772 $8,492,570,984 1.92% 81.78% 
Rep. of Korea $5,218,751,108 $2,607,642,426 $7,826,393,534 1.77% 83.55% 
Australia $4,497,269,612 $1,882,295,748 $6,379,565,360 1.44% 84.99% 
Norway $3,722,693,301 $1,945,683,425 $5,668,376,726 1.28% 86.27% 
Chinese Taipei $3,628,023,000 $1,845,556,600 $5,473,579,600 1.24% 87.50% 
Turkey $3,122,054,008 $1,233,602,359 $4,355,656,367 0.98% 88.49% 
Chile $827,661,354 $3,469,969,177 $4,297,630,531 0.97% 89.46% 
India $3,040,287,629 $860,884,121 $3,901,171,750 0.88% 90.34% 
South Africa $1,342,177,257 $1,784,312,723 $3,126,489,980 0.71% 91.05% 
Vietnam $1,388,996,989 $1,553,201,587 $2,942,198,576 0.66% 91.71% 
Saudi Arabia $1,962,244,172 $600,378,348 $2,562,622,520 0.58% 92.29% 
Ukraine $1,275,150,235 $1,050,402,160 $2,325,552,395 0.53% 92.81% 
United Arab 
Emirates $1,616,684,243 $656,189,337 $2,272,873,580 0.51% 93.33% 
Argentina $914,763,301 $803,808,962 $1,718,572,263 0.39% 93.72% 
Croatia $997,897,990 $691,867,400 $1,689,765,390 0.38% 94.10% 
Israel $1,252,464,000 $232,193,000 $1,484,657,000 0.34% 94.43% 
Philippines $882,937,189 $537,602,696 $1,420,539,885 0.32% 94.75% 
Ghana $612,600,401 $734,557,300 $1,347,157,701 0.30% 95.06% 
Colombia $672,006,237 $620,406,948 $1,292,413,185 0.29% 95.35% 
Egypt $1,102,262,989 $94,596,357 $1,196,859,346 0.27% 95.62% 
Venezuela $1,007,933,246 $82,411,105 $1,090,344,351 0.25% 95.87% 
Morocco $816,043,680 $137,038,134 $953,081,814 0.22% 96.08% 
Peru $494,906,437 $260,608,509 $755,514,946 0.17% 96.25% 
Guatemala $527,169,176 $158,745,259 $685,914,435 0.15% 96.41% 
Cambodia $48,640,028 $622,559,522 $671,199,550 0.15% 96.56% 
Costa Rica $443,387,248 $193,318,263 $636,705,511 0.14% 96.70% 
Tunisia $442,369,249 $159,593,908 $601,963,157 0.14% 96.84% 
Nigeria $534,945,708 $1,542,069 $536,487,777 0.12% 96.96% 
Cameroon $95,225,943 $437,559,649 $532,785,592 0.12% 97.08% 
Gabon $49,819,171 $481,784,387 $531,603,558 0.12% 97.20% TN/MA/W/75/Add.1 
Page 6  
 
  Reporter Forestry + 
Furniture 
Imports Forestry + 
Furniture 
Exports Total Trade Share of 
Total 
Trade Cumulative 
Shares 
Jordan $401,648,217 $113,897,920 $515,546,137 0.12% 97.32% 
Pakistan $466,190,701 $42,349,253 $508,539,954 0.11% 97.43% 
Côte d'Ivoire $106,799,067 $388,122,484 $494,921,551 0.11% 97.54% 
Ecuador $330,868,361 $140,630,131 $471,498,492 0.11% 97.65% 
El Salvador $285,615,204 $150,807,261 $436,422,465 0.10% 97.75% 
Kuwait $373,214,790 $39,677,689 $412,892,479 0.09% 97.84% 
Honduras $264,914,113 $132,745,254 $397,659,367 0.09% 97.93% 
Namibia $151,468,287 $243,232,079 $394,700,366 0.09% 98.02% 
Sri Lanka $302,885,637 $75,543,028 $378,428,665 0.09% 98.11% 
Zambia $317,525,120 $35,949,264 $353,474,384 0.08% 98.19% 
Dominican Rep. $337,054,008 $14,415,000 $351,469,008 0.08% 98.27% 
Iceland $344,221,407 $5,761,208 $349,982,615 0.08% 98.34% 
Uruguay $138,059,236 $206,816,652 $344,875,888 0.08% 98.42% 
Kenya $275,476,491 $61,065,621 $336,542,112 0.08% 98.50% 
Qatar $316,092,074 $9,407,106 $325,499,180 0.07% 98.57% 
Jamaica $315,721,393 $3,188,207 $318,909,600 0.07% 98.64% 
Trinidad & Tobago $225,354,313 $90,389,534 $315,743,847 0.07% 98.72% 
Bangladesh $301,321,081 $13,605,976 $314,927,057 0.07% 98.79% 
Oman $257,481,908 $38,917,280 $296,399,188 0.07% 98.85% 
Cuba $167,530,129 $88,324,306 $255,854,435 0.06% 98.91% 
Swaziland $101,601,926 $138,575,948 $240,177,874 0.05% 98.97% 
Panama $208,930,421 $28,196,866 $237,127,287 0.05% 99.02% 
Papua New Guinea $48,626,788 $183,169,701 $231,796,489 0.05% 99.07% 
Paraguay $131,526,681 $84,300,584 $215,827,265 0.05% 99.12% 
Zimbabwe $70,543,278 $125,856,636 $196,399,914 0.04% 99.16% 
Madagascar $130,978,236 $58,709,614 $189,687,850 0.04% 99.21% 
Bahrain $132,307,970 $54,859,887 $187,167,857 0.04% 99.25% 
Bolivia $100,741,380 $80,911,750 $181,653,130 0.04% 99.29% 
Botswana $167,875,230 $10,261,754 $178,136,984 0.04% 99.33% 
FYR of Macedonia $147,960,320 $23,351,644 $171,311,964 0.04% 99.37% 
Suriname $162,883,147 $0 $162,883,147 0.04% 99.41% 
Rep. of Moldova $135,069,885 $22,938,752 $158,008,637 0.04% 99.44% 
Mozambique $106,592,390 $50,080,375 $156,672,765 0.04% 99.48% 
Senegal $139,393,656 $16,388,973 $155,782,629 0.04% 99.51% 
Albania $112,244,042 $24,784,262 $137,028,304 0.03% 99.54% 
Barbados $119,624,948 $13,322,587 $132,947,535 0.03% 99.57% 
Mauritius $107,227,424 $25,285,479 $132,512,903 0.03% 99.60% 
Nicaragua $104,872,059 $21,475,333 $126,347,392 0.03% 99.63% 
Tanzania, United 
Rep. of  $106,886,632 $16,154,871 $123,041,503 0.03% 99.66% 
Macao, China $100,622,184 $9,028,430 $109,650,614 0.02% 99.68% 
Georgia $89,545,259 $17,449,718 $106,994,977 0.02% 99.71% 
Uganda $99,993,725 $5,584,991 $105,578,716 0.02% 99.73% 
Fiji $63,510,812 $38,632,052 $102,142,864 0.02% 99.76% 
Central African Rep. $50,837,440 $47,662,826 $98,500,266 0.02% 99.78% 
Guyana $31,816,018 $56,152,817 $87,968,835 0.02% 99.80% 
Malawi $71,394,276 $8,564,178 $79,958,454 0.02% 99.82% 
Maldives $68,231,953 $6,309,222 $74,541,175 0.02% 99.83% 
Brunei Darussalam $62,084,353 $1,203,394 $63,287,747 0.01% 99.85% 
Nepal $43,549,657 $16,923,168 $60,472,825 0.01% 99.86%  TN/MA/W/75/Add.1 
 Page 7 
 
 
  Reporter Forestry + 
Furniture 
Imports Forestry + 
Furniture 
Exports Total Trade Share of 
Total 
Trade Cumulative 
Shares 
Kyrgyz Republic $52,370,040 $3,660,406 $56,030,446 0.01% 99.87% 
Grenada $52,461,773 $2,577,617 $55,039,390 0.01% 99.89% 
Armenia $49,926,724 $4,844,349 $54,771,073 0.01% 99.90% 
Mongolia $42,297,590 $5,751,247 $48,048,837 0.01% 99.91% 
Saint Lucia $41,706,374 $4,041,435 $45,747,809 0.01% 99.92% 
Lesotho $42,278,525 $2,223,490 $44,502,015 0.01% 99.93% 
Burkina Faso $36,299,558 $2,617,789 $38,917,347 0.01% 99.94% 
Antigua and 
Barbuda $33,941,563 $2,432,733 $36,374,296 0.01% 99.95% 
Benin $24,922,806 $5,709,155 $30,631,961 0.01% 99.95% 
Mali $26,536,248 $701,038 $27,237,286 0.01% 99.96% 
Belize $23,226,015 $3,653,494 $26,879,509 0.01% 99.97% 
Saint Vincent & the 
Grenadines $24,537,538 $1,129,754 $25,667,292 0.01% 99.97% 
Guinea $10,386,425 $8,821,343 $19,207,768 0.00% 99.98% 
Saint Kitts & Nevis $16,636,357 $868,735 $17,505,092 0.00% 99.98% 
Burundi $16,037,013 $53,871 $16,090,884 0.00% 99.98% 
Togo $13,225,188 $2,791,436 $16,016,624 0.00% 99.99% 
Niger $15,753,965 $140,430 $15,894,395 0.00% 99.99% 
Rwanda $14,518,879 $42,135 $14,561,014 0.00% 99.99% 
Dominica $13,672,317 $59,838 $13,732,155 0.00% 100.00% 
Sierra Leone $7,061,482 $235,395 $7,296,877 0.00% 100.00% 
Gambia $7,057,383 $77,243 $7,134,626 0.00% 100.00% 
Sources :  UN Commodity Trade Statistics Database; trade data  for EU-27 (2005) from Wo rld Trade Atlas; trade 
data for Chinese Taipei (2005) provided by Chinese Taipei. 
Forest products defined as HS 44, 47, 48, 49, and 9406; Furniture products defined as HS 9401.61, 9401.69, 
9403.30, 9403.40, 9403.50, 9403.60, 9403.80 
2005 data for all WTO Members with the following exceptions: 
2006: Brunei Darussalam, Macao. 2004: Bangladesh, Burkina Faso, Cambodia, Cuba, Kenya, Mali, Papua New Guinea. 2003: Nepal, Nigeria, Rwanda. 
2002: Guinea, Lesotho, Sierra Leone. 
2001: Dominican Republic, Kuwait. Pre-2001 data was excluded. EU-27 includes exte rnal trade only. 
All figures in US dollars. 
Contact information: selch.kevin@ic.gc.ca 
 
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